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HomeMy WebLinkAboutAgenda - Agenda Packets - Regular Meeting 10/2/2012AGENDA JOINT REGULAR MEETING OF THE SAN JACINTO CITY COUNCIL AND THE SUCCESSOR AGENCY TO THE CITY OF SAN JACINTO REDEVELOPMENT AGENCY October 2, 2012, 7:00 p.m. 625 South Pico Avenue San Jacinto Community Center, San Jacinto, CA 92583 1. ORGANIZATION 1.1 Call to Order 1.2 Roll Call 1.3 Invocation 1.4 Pledge of Allegiance 1.5 Special Presentations 1.5.1 Introduction of new Fire Chief 1.6 Late Items 2. PUBLIC COMMENTS Now is the time for the public to address the Council on any subject within the jurisdicfion of the City Council not fisted on the agenda. A limitation of three (3) minutes shall be set for each person desiring to address the City Council. 3. JOINT CONSENT CALENDARS (SECTIONS 3A AND 3B) The matters listed under Consent Calendars are considered routine and will be enacted by one motion by City Council Members in the form listed. There will be no separate discussion on these items prior to the motion unless members ofthe City Council, staff or the public requests a specified item be removed and/or d,SCussed If an Item is pulled. it will be heard after (he balance of the Consent Calendar has been voted on. 3A CONSENT CALENDAR - CITY COUNCIL 3A.1 Waiver of Full Reading of Ordinance(s), and Reading by Title Only / Approve / City Clerk, City Attorney 3A.2 Continuance of the Proclamation of the Local State of Emergency due to the Severe Winter Storms that began on December 17, 2010 / Approve / City Manager Citr Council Agenda October 2 2012 Page 2or 4 3A.3 Treasurer's Report at August 31, 2012 / Approve / City Treasurer 3A.4 Minutes of the Joint Meeting with City of Hemet - August 21, 2012 / Approve / City Clerk 3A.5 Minutes of September 18, 2012 - Regular Meeting / Approve / City Clerk 3A.6 Appropriation of $7,000 from the Capital Reserve Fund to convert the existtng cubicle used by the Development Director into a private office / Approve / City Manager 3A.7 Award of Contract for Ramona Expressway and San Jacinto Ave Interim Sidewalk Project (CIP 11-007) / Approve / City Engineer 3A.8 Second reading of Ordnance No. 12-09 (Zoning Ordinance Amendment 1-12); Ordnance temporarily suspending Urban Corridor Overlay District Site Development Principles and Standards relating to front building setback and off-street parking requirements. / Approve / Planning Director, Planning Technician 3A.9 Supplemental Agreement for the Use of Community Development Block Grant Funds for Program Year 2012-2013 / Approve / Development Director 3A.10 Resolution No. 3443 / A resolution to Deny Conditional Use Permit 3- 12, to establish a Banquet Hall in an existing commercial suite. The site is located on the west side of State Street, approximately 250 feet south of Seventh Street with an address of 790 S. State Street, Suite G. (APN 435-330-016) / Approve / Planning Director, Planning Technician 3A.11 Approve Second Amendment to Subdivision Improvement Agreement with Puente Holdings, LLC (Tract 31886) / Approve / City Manager, C'ty Attorney 3B CONSENT CALENDAR - REDEVELOPMENT AGENCY 4. PUBLIC HEARING 4.1 Interim Urgency Extension Ordnance Prohibiting Smoke Shops and Hookah Lounges / Approve / City Attorney STAFF REPORTS City Council Agenda October 2 2012 Page 3 of 4 At the end of the scheduled City Department items. anyone wishing to discuss a consent calendar item should come forward upon invitation of the Mayor state their name. address. and the consent calendar Item number pulled Speakers should limit comments to three (3) minutes 5.1 Senior Emergency Home Repair Program Update / Approve / Management Analyst 6. MAYOR/COUNCIL MEMBER REPORTS/DISCUSSIONS 7. CLOSED SESSION 7A CLOSED SESSION - CITY COUNCIL 7A.1 CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: One (1) potential case- Claim filed by Ernest H. Wright, II, on behalf of Gamal Badawy and J&H Tobacco Plus, dated August 27, 2012, and supplemented by letter dated September 4, 2012 7A.2 CONFERENCE WITH REAL PROPERTY NEGOTIATOR 975 East Esplanade Ave, San Jacinto, CA 92583 Negotiation Parties: Tim Hults, City Manager and/or Mike Emberton, Assistant City Manager and Craig Bloomingdale, Unison (for property owner(s)) Under negotiation: Price and terms of payment 7A.3 CONFERENCE WITH REAL PROPERTY NEGOTIATOR 180 ldyllwild Drive, San Jacinto, CA 92583 Negotiation Parties: Tim Hults, City Manager and/or Mike Emberton, Assistant City Manager and Craig Bloomingdale, Unison (for property owner(s)) Under negotiation: Price and terms of payment 7B CLOSED SESSION - REDEVELOPMENT AGENCY 8. ADJOURNMENT If you challenge any action of the City Council In court, you may be limited to raising only those Issues you or someone else raised at the public hearing described in this notice. or in wntten correspondence delivered to the City Council (c/o the City Cleric) at. or prior to, the public hearing. CHALLENGE TO LAND USE DECISIONS: Any person seeking to challenge a decision regarding and use made by the City Council as a result of a proceeding in which by law a heating is required to be given, shall be required to commence that action 90 days following the date on which the decision of the City Council Cie• Council Agenda October 2 2012 Page 4 of 4 becomes final as provided in Code of Civil Procedure Section 1094 6. Please refer to Code of Civil Procedure Section 1094.6 to determine how to calculate when a decision becomes final. It is the Intention of the City of San Jacinto to comply with the Americans with Disabilities Act (ADA) in all respects. I/ as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner Please contact City Hall at (951) 537-6358, at least 48 hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible. Any writing related to an agenda item for an open session of a regular meeting of the City Council that is distributed less than 72 hours prior to the meeting will be made available for public inspection at the City Clerk's office, located at 595 South San Jacinto Avenue, San Jacinto, California, and at the regular meeting location - City of San Jacinto Community Center, 625 South Pico Avenue, San Jacinto, California - at the time the writing is distributed to a majority of the City Council DOCUMENTS RELATED TO OPEN SESSION AGENDAS (SB 343) -- Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection at the public counter located in the Administration Building of City Hail, 595 S San Jacinto Avenue, San Jacinto, CA 92583 4 Richardtuli&r, Oty Cfarkoflhe City of San Jacinto, Co hereby certify that 1 caused to he postef the foregoing agenda this 27 h Day of September 2012, as requiredby law. Ruharf' 4ilfer, (Sty Cork AGENDA ITEM 3A.1 October 2, 2012 TO: The Honorable Mayor and Members of the City Council FROM: Rick Miller, City Clerk Jeff Ballinger, City Attorney SUBJECT: Waiver of Full Reading of Ordinance(s), and Reading by Title Only RECOMMENDATION: Staff recommends that the City Council, by motion, waive the full reading of any and all ordinances on this meeting's agenda, and authorize their reading by title only. BACKGROUND: Government Code Section 36934 requires that all ordinances shall be read in full either at the time of their introduction or their passage, However, Government Code Section 36934 allows the waiver of this requirement by regular motion adopted by majority vote if the title of the ordinance is read, This waiver can be accomplished at the time of each ordinance action, or as a standing waiver, accomplished as a consent calendar motion. In order to stream -line the process for the passage of ordinances, the City Attorney and staff propose the second option, which is the waiver of any and all ordinances on this agenda. ALTERNATIVES: Approval: Approve the addition of the attached language to all future agendas of the City Council, thus waiving the MI reading of all future ordinances. Denial: Do not approve the agenda language and, instead, before the passage of any ordinance and after the reading of its title, make a motion that must be adopted by majority vote that allows a waiver of the full reading. FISCAL IMPACT: None PACKET PAGE: 1 AGENDA ITEM 3A.2 October 2, 2012 TO: The Honorable Mayor and Members of the City Council FROM: Tim Huffs, City Manager SUBJECT: Continuance of the Proclamation of the Local State of Emergency due to the Severe Winter Storms that began on December 17, 2010 RECOMMENDATION: Staff recommends that the City Council, by motion, approve to the continuance of the Proclamation of the Local State of Emergency due to the Severe Winter Storms that began on December 17, 2010. DISCUSSION: On December 22, 2010, the Director of Emergency Services/City Manager proclaimed the existence of a local emergency resulting from the severe and damaging winter storms that began on or about 12:00 a.m. (midnight) on December 17, 2010. Government Code section 8630 requires the City Council to ratify any local emergency proclaimed by a local official such as the Director of Emergency Services/City Manager within seven days. Thereafter, the City Council shall at least once every 30 review the need for continuing the local emergency. ALTERNATIVES: 1) Consent to the continuance of the Proclamation of the Local State of Emergency (Staff Recommendation). 2) Do Not Consent to the continuance. FISCAL IMPACT: The City's ability to obtain or continue to receive federal, state or regional disaster/emergency relief funding may be impacted if the City Council does not Consent to continue the proclamation of the local state of emergency. Substantial budgetary impacts are apparent for recovery efforts to include substantial employee overtime salaries; purchases of materials, supplies and equipment; use of private contractors/force labor; and other repairs to city right-of-way facilities (Preliminary estimates range from thirty five to fifty thousand dollars). Budgetary assistance and PACKET PAGE: 3 AGENDA ITEM 3A.2 reimbursement is available from Federal Emergency Management Agency (F.E.M.A.) for related costs for limited recovery efforts to critical infrastructure including: electrical, power, telecommunications, water supply, public safety, and transportation. ATTACHMENTS: • Copy of Resolution Number 3352 PACKET PAGE: 4 AGENDA ITEM 3A.2 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss CITY OF SAN JACINTO RESOLUTION NO. 3352 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO CONFIRMING THE CITY MANAGER/DIRECTOR OF EMERGENCY SERVICES, PROCLAMATION OF THE EXISTENCE OF A LOCAL EMERGENCY WHEREAS, section 2.36.060(A)(1) of the San Jacinto Municipal Code empowers the Director of Emergency Services/City Manager to proclaim a local emergency if the City Council is not in session and requires that the City Council shall take action to ratify the proclamation within seven days thereafter; and WHEREAS, on December 17, 2010, a series of winter storms began in Southern California, bringing high winds and significant amounts of precipitation statewide, and continued for several days; and WHEREAS, these storms have caused injuries, flooding, and heavy rain throughout Southern California; and WHEREAS, these storms have caused power outages for several thousand customers throughout Southern California; and WHEREAS, homes and other property have been damaged by the severe weather; and WHEREAS, flooding has interfered with transportation throughout Southern California; and WHEREAS, conditions of extreme peril to the safety of persons and property have arisen within the City of San Jacinto, as a result of severe and long lasting rains, which began on or about 12:00 a.m. (midnight) on the 17th day of December, 2010, at which time the City Council of the City of San Jacinto was not in session; and WHEREAS, these conditions are or are likely to be beyond the control of the services, personnel, equipment, and facilities of the City of San Jacinto; and WHEREAS, on December 21, 2010, the County of Riverside declared a local emergency; and WHEREAS, the City does hereby find that the above described conditions of extreme peril did warrant and necessitate the proclamation of the existing of a local emergency within the City of San Jacinto; and PACKET PAGE: 5 AGENDA ITEM 3A.2 WHEREAS, the City Council of the City of San Jacinto was not in session on December 22, 2010, and could not immediately be called into session; and WHEREAS, the City Manager acting as the Director of Emergency Services did proclaim the existence of a local emergency within the City of San Jacinto on the 22nd of December 2010. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Jacinto that the Proclamation of Existence of a Local Emergency, as issued by the Director of Emergency Services/City Manager on December 22, 2010, is hereby ratified and confirmed. BE IT FURTHER RESOLVED that the local emergency shall be deemed to continue to exist until its termination is proclaimed by the City Council of the City of San Jacinto, and that until such time, the City Council shall review, at each of its regularly scheduled meetings until the local emergency is terminated, the need for continuing the local emergency. BE IT FURTHER RESOLVED that City staff is hereby authorized and directed to take any action that may be necessary or convenient to assist in obtaining federal, state or regional disaster/ emergency relief funding. BE IT FURTHER RESOLVED that the City Manager or his designee is hereby designated as the authorized representative of the City of San Jacinto for the purpose of receipt, processing and coordination of all inquiries and requirements necessary to obtain county, state and federal relief assistance, and; BE IT FURTHER RESOLVED that the City Clerk shall forward a copy of this resolution to the Governor, to the State Office of Emergency Services, to the Riverside County Emergency Services Division, and to all other appropriate county, state and federal agencies with an interest therein; and ADOPTED by the City Council of the City of San Jacinto at a special / emergency meeting of said Council held on the 28th day of December 2010, by the following vote: Ayes: Bartel, Di Memmo, Ledezma, Miller Nays: None Absent: Kotyuk Abstain: None City of San Jacinto Scott Miller, Mayor PACKET PAGE: 6 AGENDA ITEM 3A.2 ATTEST: Rick Miller, City Clerk APPROVED AS TO FORM: BEST, BEST & KRIEGER LLP Jeffrey S. Ballinger, City Attorney 1 PACKET PAGE: 7 AGENDA ITEM 3A.3 October 2, 2012 TO: The Honorable Mayor and Members of the City Council FROM: Bernard Simon, City Treasurer SUBJECT: Treasurer's Report at August 31, 2012 RECOMMENDATION: Receive and File Treasurer's Report for August 31, 2012. BACKGROUND: The Treasurer's Report is required to be presented to the governing body at least quarterly in accordance with California Government Code Section 53600 et. seq. DISCUSSION: Total Cash and City Investments decreased 1.43% during the month. This includes cash, cash in bank and cash with trustee. The attached Treasurer's report is a "snapshot" report of our cash position on the last day of the month in all of our accounts. A section demonstrating compliance with the adopted Investment Policy, a schedule of CDs, and a chart depicting historical interest rates for certain positions is also included. A detailed listing of investments from Chandler Asset Management has also been included, FISCAL IMPACT: None. ATTACHMENTS: Treasurer's Report for the month ending August 31, 2012. PACKET PAGE: 9 Page 1 TREASURER'S REPORT IN VESTNIENT INSTITUTION INTEREST AUGOST PURCHASE MATURITY PREY MONTH CURRENT nein prior MARKET ACCRUED ANERACE TYPE SERIAL II ItATE YIELD INTEREST DATE DATE BALANCE BALANCE mmil7 VALUE INTEREST DURATION b0001 Varmus open19,a)a006 19.F6.12a 16121 CAMP Tani Powers Nan MONEY MARKET Hank a Hemet 0 280% 0 260% Parma ne^ DEMAND ATM - old Bank al Hemet 0 000% 0 G00% Various Open S $430884 a $332691 30 GE MAND ATV • nevi inank of Hemel 0 C00% 0 950% Varian Open 595445 30 PAYROLL Account Hank of Hemet 0 1100% 0 C00% Varian Open SO 51 000 50 MONEY MARKET Open ID21a01,aa 115.054 a15220.5e5 a5223632 $3057 Fund $14.056 Varmus Vanua$6192605 a6 8ap33) 118.55741 39 a 1399.745 O 3399 745 $399903 $158 MANAGED aM-CAM T,� n 6710) 142 CASH Cash rn 50C Vance 0 CPO% 0 G00% Various na 30 CASH xenon Nam 0 m0% 0 m0% N.e Various na ss� M eSS1550 0.00% ww 10 L Corr INVESTMENTS 3 FlINOS 0 % 04,520 S54 585 1 S611462252 u,921 D Annual Rearm neasea en Previous month �aAEST?FTEP CASH V IRFISCAL AGENT SONO FVN2 I m 3 nal Fupd Garen Bank Etaleock Prey Traund XXXXXX520 I 0 010% 0 OTO% Vannes Open SO 5)7247 la OVA 50 v SB195 30 925 4<15� 50> a - a0o$ 51: - 125m $251415 av=6 m o 1250$W 3250000 $254515535;5 49s� a'i26e 10 $224 $229 Mutual Furs] Goon Pank Vecanck Pra Taund 5XXXXIC540 I 0 11110% 0 010% Varian Open 5459 5515 Mutual Pad Union sank Badman< Proy naiad )000(XX5405 0 010% 0 010% Various Open m18iim $1eii% 5992Muted Fund 9nron Para Pialerock Free T-Fund 5XXXXX5405 0 WO% 0 OTO% Vermun Oran Mutual Fund Union Ban% Blaalock Pray T-F ad XXXXXX5407 0 010% 0 010% Vaal% Open 32595 z95 an Mutual .um Wenn Para laaainek a80.. irw8 N00(445505 0010% 0010% Various open mavr 12e,1m TOTAL CEO NO2 31 694343 a2naas,e wax% 327198H SO CINTO TAX ALLOCATPN BONDS Muam Fad Irian Bam Buwock Aron i-Ewa )0W75730X OW3% 0W3% Vamua Open $400413 H 36 -100 W% 18 a0 1SS7 WATER IMPROVEMENT REVENUE BONDS Mural Fund un83n sank Bnumox iron. Lawn XX1459800X 0010% 0010% Various Open $118$88 N 3178507 0.00% $118.501 30 M WV Fund Goon Pank fixdmaM pmv nEuna x%NX6S190x Oo.O% 0010% Varian Open 52 T16O „ TOTALL CASH WANK FISCAL AGENT 42,E98g2 2715% 43p0,IW N>U TOTAL ALL PONO3 46>369,I55 45F.tl3,>29 -LtlN i38N9,3p 412112 PER INVESTMENT POLICY - Papered Py Aare) Finance Vadat 075(2012 Maximum% Damn % n ampaanM £'VE W311 VQN39t a m Page 2 Z TREASURER'S REPORT v FOR THE MONTH ENDING AUGUST 31, 2012 7/31/2012 8/31/2012 % change 8/31/2012 COMPUTED INVESTMENT INSTITUTION INTEREST AUGUST PURCHASE MATURITY PREV. MONTH CURRENT from prior MARKET ACCRUED AVERAGE 7. TYPE SERIAL# RATE YIELD INTEREST DATE DATE BALANCE BALANCE month VALUE INTEREST DURATIOI Negotiable CDs 10% 1% Yes B $750,000 Obligations issued by U.S. Govemment Agencies 100% 11 % Yes C $6,192,605 5 Commercial Paper 15% 1% Yes D $399,745 Medium Term Notes 20% 3% Yes E $1,777,924 W Repurchase Agreements 10% 0% Yes F $0)01 Time Deposits 30% 19% Yes G $10,941,643 Mutual Funds (Limited to U.S. Treasuries) 18% 4% Yes H $2,143,432 W Mutual Funds (Limited to U.S. Govt. Sec.) 18% 0% Yes I $10,769 Level 2 - Investments Money Market Funds (non -brokered) 20% 0% Yes J $0 LAIF 90% 18% Yes K $9,910,003 CAMP (pool account) 50% 0% Yes L $252,714 Cash & Demand Accounts n/a n/a n/a M $22,454,904 I CERTIFY THAT THESE INVESTMENTS COMPLY WITH ALL STATE LAWS PERTAINING TO THE INVESTMENT OF LOCAL AGENCY FUNDS AND CITY OF SAN JACINTO'S INVESTMENT POLICIES. CITY OF SAN JACINTO MEETS OR EXCEEDS THE SIX MONTH CASH FLOW REQUIREMENTS DPER GOVERNMENT CODE 53646(b)(3). 0 111 2NARD SIMON, TREASURER of San Jacinto 0 m N $56,438,724 Prepared By: Acting Finance Director 9/25/2012 £L l3OHd 13Nadd City of San Jacinto schedule of Certificates of Deposits BU112012 Interest Lest Interest Principal Wth*awal Term Rate Yieltl Open Dale Maturity Pad Date Amount Interest al Maturity Rank 4f M5®44 161658725 36 Months 224% 2263% 161659525 36 Months 213% 2151% 161663325 36 Months 2.17% 2192% 161673025 36 Months 204% 2059% 161683825 36 Months 201% 2029% 0921010825 36 Months 193% 1947% 4921015925 24 Months 1 46% 1 410% 4921020525 36 Months 17716 178416 161718425 36 Months 15016 1510% 161726525 36 Months 14516 1460% 0921048525 36 Months 13516 1. 358% 182% 184% 9/2812012 8/2712012 50000000 3373850 10/15/2012 8/14/2012 50000000 31 101 51 11/27/2012 8/26/2012 50000000 30,72500 922/2013 8/21/2012 50000000 26,123.97 4 0/2113 8/19/2012 50000000 2402644 9/2)/2)13 8/19/2012 50000000 2,54051 8/16/2012 8/15/2012 500 000 00 1482665 8116/2013 8/15/2112 50000000 1802858 11/1]/2013 8/16/2012 50000000 1329562 12/20/2013 8/19/2012 500000 00 1223660 11202014 8/19/2112 500 000 00 10797 99 (514.82665) Balanu 53373850 531 10151 53072500 526,12397 52402644 520 5410 51 51802858 513 9562 512 3660 51019799 Crimpled Accrued Interest 132 84 530 20 159 95 298.14 351.10 330 88 407 52 320 81 247 58 229 86 5500 000 00 235 441 37 RaMLank 5368512979 No 1 36 Months 19016 191716 9/9/2009 9/9/2012 8/8/2012 50000000 2888543 5368512979 No 2 36 Months 20016 2018% RPi/2C09 12/21/2012 8/20/2012 50000000 2777665 5368512979 No 4 36 Months 20016 2018% 112512010 1/25.2093 8/24/2012 50000000 2,86937 5368512979 No 5 36 Months 20016 2018% 3/22/2010 3/292013 8/21/2112 50000000 2514657 5368512979 No 6 36 Months 20016 2018% 520.2010 5/20/2013 8/17/2012 50000000 23,37135 5368512979 No 7 36 Months 20016 2018% 6111/2010 6/11/2113 8/16/2012 50000000 2247211 5368512979 No 8 36 Months 19026 1917% 920/2010 9202013 8/1 ✓,2012 50000000 1880231 5368512979 No 9 36 Months 16326 164216 f0/19/2010 10/192013 8/17/2012 50000000 1538970 5368512979 No 10 36 Months 16526 160316 2/11/2099 211/ID94 8/16/2112 50000000 1268492 5368512979 No 11 36 Months 14016 1409% 39I2011 3/11/2014 8/16/2012 50000000 1018809 5368512979 No 12 36 Months 14016 1409% 421/2099 421/2014 8/2012012 50000000 944147 181% 182% (51482665) 522061472 301688 52888543 527.77665 52686937 525.14657 523 W 135 52247211 51880231 515 8910 512 8492 51018809 50944147 642 01 322 53 20089 291 75 407 07 435 39 383 34 326 TO 352 47 29761 21793 5500 000 00 221 02797 5721 02797 388169 TOTAL 11 000 000 00 456 46934 (51482665) 10 941 64269 689856 £ro£11311VON3Ot AGENDA ITEM 3A.3 Interest Rates - 09/09 to 08/12 N a a <0 -2 o U �m are 0 I I I I N 0 Z6/8 Z6/L Z6/9 Z/ Z 6/b Z6/£ Z6/Z Z6/6 6 6/Z 66/66 66/06 66/6 I I /8 66/L 66/9 66/S 66/b 66/£ 6 I /Z II/6 0 6/Z 06/66 06/06 06/6 06/8 06/L 06/9 06/S 06/b 06/£ 06/Z 06/6 60/Z 6 60/ I I 60/0 6 60/6 PACKET PAGE: 14 EVE IN31I V N3DV cm 1 CHANDLER ASSET MANAGEMENT Monthly Account Statement City of San Jacinto, Californi August 1, 2012 through August 31, 2012 Chandler Team For questions about your account, please call (800) 317-4747 or Email operations@chandlerasset.com Custodian US Bank Linda Brimm +()314-418-3441 Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Prices are provided by IDC, an independent pricing source. us ou ever. an`Iego, •one ' .,..+. • ax www.c an.'eresse .com •a0b'd I 1 Vd 01 City of San Jacinto, Californi Account#10167 Portfolio Summary As of 8/31/2012 PORTFOLIO CHARACTERISTICS Mow_ ACCOUNT SUMMARY TOP ISSUERS Average Duration Average Coupon Average Purchase YTM Average Market YTM Average S&P/Moody Rating Average Final Maturity Average Life 1.68 2.11 % 0.45 % 0.35 % AA+/Aa1 1.73 yrs 1.72 yrs Market Value Accrued Interest Total Market Value Income Earned Co nt/W D Par Book Value Cost Value Beg. Values End Values as of 7/31/12 as of 8/31/12 9,965,517 9,979,429 58,672 52,565 10, 024,189 10,031,994 3,373 3,404 -938 9,674,548 9,695,769 9,945,284 9,953,856 9,965,361 9,986,029 Issuer Federal Home Loan Mortgage Corp Government of United States Federal Home Loan Bank Federal National Mortgage Assoc Federal Farm Credit Bank US Bancorp Toyota Motor Corp General Electric Co % Portfolio 18.1 % 16.0 % 16.0 % 15.9 % 11.9 % 2.0 % 2.0 % 2.0 84.1 0/0 SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY (S&P) Money Market Fund FI (0.1 %) Commercial Paper (4.0 %) 1' r Agency! (62.0 %) US Corporate (17.9 %) US Treasury (16.0 %) 50% 40% 30% 20% 10% % 12.2 % 8.1 % 8.0 % ■ 40.4 % 10.4 % 18.6 % 2.2 % 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+ Maturity (Yrs) AA (82.5 %) A (12.1 %) PERFORMANCE REVIEW Total Rate of Return As of 8/31/2012 City of San Jacinto, Californi Current Month 0.09 % Latest 3 Months NIA Year To Date 1 Yr N/A N/A Annualized 3 Yrs N:A 5 Yrs 10 Yrs 0 AAA (5.49c I" 0 m Sinc O) 6/30/2012 6/30/20 t z NA NA N/A 0.34 % 1 1-3 yr Treasury 0.01 NIA N/A N/A N/A N A N/A N:'A 0.25 ndler Asset Management - CONFIDENTIAL Page 1 Execution Time: 9/5/2012 11:48:32 AM City of San Jacinto, Californi Account#10167 Holdings Report As of 8131/12 CUSIP Security Description Par Value Units Purchase Date I Cost Value Mkt Price Market Value % of Port. Moody Maturity Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss S&P Duration iu 3133MTZL5 FHLB Note 4.5% Due 11/15/2012 200,000.00 06/25/2012 0.18 % 203,334.00 100.84 201,760.92 0.39 9/0 201,686.40 2,650.00 2.04 % Aaa (74.52) AA+ 0.21 0.21 3137EACG2 FHLMC Note 1.375% Due 1/9/2013 200,000.00 06/20/2012 201,275.20 100.43 200,857.00 2.01 % Aaa 0.36 0.21 % 200,820.67 0.17 9/0 397.22 36.33 AA+ 0.36 3133XW7L7 FHLB Note 1.5% Due 1/16/2013 200,000.00 06/18/2012 201,500.00 100.49 200,981.80 2.01 % Aaa 0.38 0.19 % 200,973.93 0.19 9/0 375.00 7.87 AA+ 0.37 D- IJBV4 FFCB Note 200,000.00 06/06/2012 202,176.00 100.69 201,376.60 2.01 % Aaa 0.48 0 1.75% Due 2/21/2013 0.21 % 201,453.47 0.29 % 97.22 (76.87) AA+ 0.47 m 3AJ94 FNMA Note 295,000.00 06/13/2012 298,994.30 101.00 297,962.09 2.99 % Aaa 0.68 Z 1.75% Due 5/7/2013 0.24 % 298,029.32 0.28 % 1,634.79 (67.23) AA+ 0.68 0 KXYX9 FHLB Note 200,000.00 06/06/2012 203,374.00 101.33 202,667.00 2.03 % Aaa 0.81 1.875% Due 6/21/2013 0.25 % 202,608.40 0.22 9/0 729.17 58.60 AA+ 0.80 1 JPK3 FFCB Note 200,000.00 06/13/2012 202,308.00 101.01 202,011.00 2.02 % Aaa 0.82 1.375% Due 6/25/2013 0.25 % 201,823.07 0.14 % 504.17 187.93 AA+ 0.81 m =ABS7 FHLMC Note 190,000.00 06/25/2012 199,059.20 104.17 197,930.03 2.01 % Aaa 1.07 3 4.125%Due 9/27/2013 0.31 % 197,733.95 01.0243. .23 % 3,352.71 196.08 AA+ 1.04 W KSAE8 FHLB Note 190,000.00 06/22/2012 198,202.11 103.79 197,202.14 1.99 % Aaa 1.13 P 3.625% Due 10/18/2013 0.33 % 197,040.14 0.26 % 2,544.55 162.00 AA+ 1.10 CAk4UK8 FHLMC Note 190,000.00 06/06/2012 202,469.51 105.63 200,694.72 2.03 % Aaa 1.21 4.875% Due 11/15/2013 0.30 % 200,430.77 0.20 % 2,727.29 263.95 AA+ 1.17 313371UC8 FHLB Note 0.875% Due 12/27/2013 200,000.00 06/20/2012 201,638.60 100.84 201,676.00 2.01 % Aaa 1.32 0.33 % 201,425.64 0.24 % 311.11 250.36 AA+ 1.31 3137EABX6 FHLMC Note 2.5% Due 1/7/2014 31398AVD1 FNMA Note 2.75% Due 2/5/2014 31331KAH3 FFCB Note 1.125% Due 2/27/2014 31398AVZ2 FNMA Note 2.75% Due 3/13/2014 3137EACB3 FHLMC Note 2.5% Due 4/23/2014 190,000.00 06/22/2012 196,365.00 103.08 195,856.75 1.96 % Aaa 1.35 0.31 % 195,593.48 0.21 % 712.50 263.27 AA+ 1 no 285,000.00 06/07/2012 296,521.98 103.65 295,401.08 2.95 % Aaa 1 > 0.30 % 294,908.52 0.19 % 566.04 492.56 AA+ 1 0 200,000.00 06/20/2012 202,658.00 101.28 202,556.60 2.02 % Aaa 1 m 0.33 % 202,347.32 0.26 % 25.00 209.28 AA+ 1 285,000.00 06/22/2012 296,744.28 103.80 295,827.15 2.99 % Aaa 1 -0 0.34 % 295,468.54 0.27 % 3,657.50 358.61 AA+ 1 D 190,000.00 06/18/2012 197,628.50 103.69 197,016.32 1.98 % Aaa 1 0 0.32 % 196,789.71 0.25 % 1,688.89 226.61 AA+ 1 m 31398AXJ6 FNMA Note 2.5% Due 5/15/2014 290,000.00 06/14/2012 301,881.30 103.78 300,961.71 3.02 % Aaa 1 0.35 % 300,555.49 0.28 % 2,134.72 406.22 AA+ 1 313373JR4 FHLB Note 1.375% Due 5/28/2014 290,000.00 06/06/2012 295,834.80 102.05 295,948.48 2.96 % Aaa 1.74 0.35 % 295,137.87 0.19 % 1,030.10 810.61 AA+ 1.72 3135G0BJ1 FNMA Note 195,000.00 06/06/2012 198,011.97 101.57 198,065.79 1.98 % Aaa 1.82 1.125% Due 6/27/2014 0.37 % 197,666.60 0.26 % 390.00 399.19 AA+ 1.80 3137EACD9 FHLMC Note 3% Due 7/28/2014 190,000.00 06/22/2012 200,286.03 105.02 199,530.97 1.99 % Aaa 1.91 0.40 % 199,369.32 0.36 % 522.50 161.65 AA+ 1.86 Chandler Asset Management - CONFIDENTIAL Page 2 Execution Time:9/5/2012 It:48:32 AM CA% City of San Jacinto, Californi Account#10167 Holdings Report As of 8/31/12 Purchase Date Cost Value Mkt Price Market Value % of Port. Moody Maturity CUSIP Security Description Par Value/Units Book Yield Book Value Mkt YTM Accrued Int. Gain/Loss S&P Duration AGENCY 3135G0KM4 FNMA Note 0.5% Due 5/27/2015 200,000.00 06/12/2012 0.53 % 199,828.00 100.34 199,840.76 0.37 0/0 200,683.20 261.11 2.00 Aaa 842.44 AA+ 2.74 2.72 31331J2S1 FFCB Note 1.5%Due 11/16/2015 290,000.00 06/25/2012 299,065.40 103.49 300,131.44 3.00 % Aaa 3.21 0.57 % 298,574.78 0.40 0/0 1,268.75 1,556.66 AA+ 3.13 31331VGU4 FFCB Note 4.875% Due 12/16/2015 250,000.00 06/12/2012 286,602.00 114.37 285,926.50 2.88 % Aaa 3.29 0.65 % 284,316.16 0.47 0/. 2,539.06 1,610.34 AA+ 3.06 3133XXP43 FHLB Note 3.125% Due 3/11/2016 270,000.00 06/14/2012 293,180.04 109.13 294,653.43 2.98 % Aaa 3.53 0.79 0/0 291,855.47 0.51 % 3,984.38 2,797.96 AA+ 3.32 3137EACT4 FHLMC Note 2.5% Due 5/27/2016 180,000.00 07/12/2012 193,012.20 107.20 192,956.58 1.94 % Aaa 3.74 0.61 % 192, 552.08 0.55 0/0 1,175.00 404.50 AA+ 3.57 3137EACW7 FHLMC Note 2% Due 8/25/2016 190,000.00 06/14/2012 199,262.31 105.62 200,683.70 2.00 % Aaa 3.99 0.82 % 198,790.73 0.57 0/0 63.33 1,892.97 AA+ 3.84 3137EADCO FHLMC Note 1% Due 3/8/2017 220,000.00 08/20/2012 221,392.60 101.27 222,786.30 2.23 % Aaa 4.52 0.86 % 221,383.37 0.71 % 1,057.22 1,402.93 AA+ 4.39 Total Agency 5,980,000.00 6,192,605.33 0.40 % 6,169,250.48 0.32 % 6,184,030.78 62.01 % Aaa 1.83 36,399.33 14,780.30 AA+ 1.78 COMMERCIAL PAPER 89233GJR8 Toyota Motor Credit Discount CP 0.19% Due 9/25/2012 200,000.00 06/27/2012 199,905.00 99.99 199,974.67 1.99 % P-1 0.07 0.19 % 199,974.67 0.19 % 0.00 0.00 A-1+ 0.07 36959HKR7 General Electric Capitial Corp Discount 200,000.00 06/27/2012 199,840.00 99.96 199,928.00 1.99 % P-1 0.15 CP 0.24 % 199.928.00 0.24 % 0.00 0.00 A-1+ 0.15 0.24% Due 10/25/2012 Total Commercial Paper 400,000.00 399,745.00 399,902.67 3.99 % P1 0 -0 0.22 % 399,902.67 0.22 % 0.00 0.00 A-1+ 0 D C) m Various 10.769.28 1.00 10,769.28 0.11 % Aaa 0 0.02 % 10,769.28 0.02 % 0.00 0.00 MA 0 10,769.28 10,769.28 0.11 % Aaa 0 D 0.02 % 10,769.28 0.02 % 0.00 0.00 AAA 0 G) m MONEY MARKET FUND FI 31846V203 First American Govt Obligation Fund 10, 769.28 Total Money Market Fund FI 10,769.28 US CORPORATE 46625HHB9 JP Morgan Chase Note 4.75% Due 5/1/2013 CO 120,000.00 06/25/2012 123,728.40 102.69 123,230.76 1.25 % A2 0.,.. 1.03 % 122,939.00 0.69 % 1,900.00 291.76 A 0.65 084664BG5 Berkshire Hathaway Note 5% Due 8/15/2013 185,000.00 06/25/2012 194,348.05 104.35 193,048.24 1.93 0/. Aa2 0.96 0.51 % 192,876.81 0.43 % 411.11 171.43 AA+ 0.94 91159HGY0 US Bancorp Callable Note Cont 8/13/13 200,000.00 06/25/2012 201,920.00 101.03 202,053.60 2.03 % Aa3 1.04 1.375% Due 9/13/2013 0.52 % 201,616.35 0.29 % 1,283.33 437.25 A+ 0.94 983024AE0 Wyeth Note 5.5% Due 2/1/2014 115,000.00 06/06/2012 124,132.15 107.16 123,232.74 1.23 % Al 1.42 0.62 % 122,884.09 0.43 % 527.08 348.65 AA 1.38 ndler Asset Management - CONFIDENTIAL Page 3 Execution Time: 9/5/2012 11:48:32 AM iA CUSIP City of San Jacinto, Californi Account#10167 Securit Descri.tion Par Value Units Holdings Report As of 8?31/12 Purchase Date I Cost Value Mkt Price Book Yield Book Value Mkt YTM Market Value % of Port. Accrued Int. Gain/Loss Moody Maturity S&P Duration US CORPORATE A 24422ERA9 94974BET3 John Deere Capital Corp Note 1.6% Due 3/3/2014 Wells Fargo Corp Note 3.75% Due 10/1/2014 120,000.00 120,000.00 06/06/2012 0.57 % 06/26/2012 1.27 % 122,121.60 121,845.46 126,600.00 126,087.38 101.62 0.52 9/0 105.77 0.95 % 121,944.84 949.33 126,924.60 1,875.00 1.23 94 99.38 1.28 % 837.22 A2 A A2 A+ 1.50 1.48 2.08 1.99 74005PAQ7 ' 3HPG1 c.) Praxair Note 5.25% Due 11/15/2014 HSBC USA Inc Note 2.375% Due 2/13/2015 115,000.00 125,000.00 06/26/2012 0.71 % 06/26/2012 1.90% 127,295.80 126,390.24 126,497.50 126,397.56 109.81 0.75 % 102.46 1.35 126,285.18 1,777.71 128,081.00 148.44 1.28 % (105.06) 1.28 % 1,683.44 A2 A A2 A+ 2.21 2.08 2.45 2.38 m 18BX5 Z I6AX8 m Pepsico Inc. Note 0.75% Due 3/5/2015 125,000.00 06/05/2012 0.83% 124,732.50 124,755.24 100.51 0.54 9/0 125,640.88 458.33 1.26 % 885.64 Coca Cola Company Note 0.75% Due 3/13/2015 125,000.00 06/18/2012 0.63 % 125,421.25 125,390.77 100.79 0.43 4/0 125,991.88 434.90 1.26% 601.11 Aa3 A- Aa3 A+ 2.51 2.48 2.53 2.50 I8AG9 Microsoft Note 1.625%4 Due 9/25/2015 125,000.00 06/27/2012 0.65%4 128,893.75 128,683.10 103.73 0.40 % 129,668.50 880.21 1.30%4 985.40 Aaa 3.07 AAA 2.98 I2AB9 Ebay Inc Note 1.625% Due 10/15/2015 125,000.00 06/12/2012 0.91 %4 127,943.75 127,755.08 103.27 0.57 4/0 129,084.50 767.36 1.29 % 1,329.42 A2 A 3.12 3.03 )0GU9 IBM Corp Note 2% Due 1/5/2016 120,000.00 06/05/2012 0.98 % 124,288.80 124,009.67 104.39 0.67 4/0 125,263.80 373.33 1.25 % 1,254.13 Aa3 AA - 3.35 3.23 US Corporate 1,720,000.00 0.83 % 1,777,923.55 1,771,630.75 0.60 % 1,780,450.52 11,786.13 17.87 % 8,819.77 Al A+ 1.99 1.93 US TREASURY 912828LR9 912828MB3 US Treasury Note 1.375% Due 10/15/2012 US Treasury Note 1.1259/0 Due 12/15/2012 200,000.00 200,000.00 06/14/2012 0.12 % 06/22/2012 0.15 % 200,836.61 200,301.73 200,922.55 200,559.93 100.14 0.26 % 100.27 0.18 4/0 200,273.40 1,044.40 200,546.80 479.51 2.01 % (28.33) 2.00 4/0 (13.13) 912828NN6 US Treasury Note 1%4 Due 7/15/2013 200,000.00 06/22/2012 0.25% 201,594.42 201,302.66 100.71 0.19 % 201,414.00 260.87 2.01 4/0 111.34 Aaa 0.12 AA 1 0 '"ti Aaa 0 > AA, 0 n T Aaa 0 m AA. 0 -I 912828PB0 US Treasury Note 0.5% Due 10/15/2013 200,000.00 06/20/2012 0.27%4 200,617.136 200,524.28 100.33 0.21 % 200,656.20 379.78 2.00 4/0 131.92 912828PQ7 US Treasury Note 1% Due 1/15/2014 200,000.00 06/25/2012 0.31 %4 202,133.48 201,881.82 101.08 0.21 4/0 202,156.20 260.87 2.02 4/0 274.38 Aaa 1 J AAt 1 > Aaa 1 m AA 1 1 _ _ 912828PZ7 US Treasury Note 1.25% Due 3/15/2014 195,000.00 06/14/2012 0.30 % 198,222.72 197,828.72 101.57 0.23 4/0 198,062.09 1,126.02 1.99 4/0 233.37 Aaa AA, 1 CO 912828NV8 US Treasury Note 1.25% Due 8/31 /2015 195,000.00 06/06/2012 0.38% 200,454.56 200,057.02 102.82 0.30 % 200,499.59 6.73 2.00 % 442.57 Aaa 3.00 AA t 2.95 912828PE4 US Treasury Note 1.25%4 Due 10/31/2015 195,000.00 06/07/2012 0.46 % 200,203.19 199.846.52 102.91 0.33 4/0 200,667.09 821.33 2.01 % 820.57 Aaa AA. 3.17 3.10 Total US Treasury 1,585,000.00 0.28% 1,604,985.39 1,602,302.68 0.24 4/0 1,604,275.37 4,379.51 16.04 % 1,972.69 Aaa AA+ 1.44 1.42 Chandler Asset Management - CONFIDENTIAL Page 4 Execution Time: 9/5/201211:48:32 AM TOTAL PORTFOLIO 9,695,769.28 0.45 9,986,028.55 9,953,855.86 9,979,428.62 100.00 % Aa1 1.73 0.35 % 52,564.97 25,572.76 AA+ 1.68 TOTAL MARKET VALUE PLUS ACCRUED 10,031,993.59 OZ :30`dd 13N3Vd *iiandler Asset Management - CONFIDENTIAL Page 5 Execution Time: 9/5/2012 11:48:32 AM City of San Jacinto, Californi Jail Account #10167 Transaction Ledger 7/31/12 Thru 8/31/12 Transaction Settlement AcglDisp Interest Type Date CUSIP Quantity Security Description Price Yield Amount Pur/Sold Total Amount Galn/Loss ACQUISITIONS Purchase Purchase Purchase Purchase Filirichase • lase m lase 0 lase 08/01/2012 31846V203 08/01/2012 31846V203 08/05/2012 31846V203 08/13/2012 31 846V203 08/15/2012 31846V203 08/20/2012 31846V203 08/20/2012 31846V203 08/21/2012 3137EADCO - lase 08/21/2012 31846V203 rnlase 08/25/2012 31846V203 3 lase 08/27/2012 31846V203 lase 08/31/2012 31846V203 Subtotal Ca) 3,162.50 First American Govt Obligation Fund 1.15 First American Govt Obligation Fund 3,918.75 First American Govt Obligation Fund 1,484.38 First American Govt Obligation Fund 4,625.00 First American Govt Obligation Fund 5,362.50 First American Govt Obligation Fund 195,000.00 First American Govt Obligation Fund 220,000.00 FHLMC Note 1% Due 3/8/2017 1.000 3,162.50 0.00 3,162.50 0.00 1.000 1.15 0.00 1.15 0.00 1.000 3,918.75 0.00 3,918.75 0.00 1.000 1,484.38 0.00 1,484.38 0.00 1.000 4,625.00 0.00 4,625.00 0.00 1.000 5,362.50 0.00 5,362.50 0.00 1.000 195,000.00 0.00 195,000.00 0.00 100.633 0.86% 221,392.60 996.11 222,388.71 0.00 1,750.00 First American Govl Obligation Fund 1.000 1,750.00 0.00 1,750.00 0.00 1,900.00 First American Govt Obligation Fund 1.000 1,900.00 0.00 1,900.00 0.00 1,125.00 First American Govt Obligation Fund 1.000 1,125.00 0.00 1,125.00 0.00 1,218.75 First American Govt Obligation Fund 1.000 0.02 % 1,218.75 0.00 1,218.75 0.00 439,548.03 440,940.63 996.11 441,936.74 0.00 TOTAL ACQUISITIONS 439,548.03 440,940.63 996.11 441,936.74 0.00 DISPOSITIONS Sale 08/21/2012 31846V203 222,388.71 First American Govt Obligation Fund 1.000 222,388.71 0.00 222,388.71 Crii Subtotal 222,388.71 222,388.71 0.00 222,388.71 C n Maturity 08/20/2012 3137EAAV1 195,000.00 FHLMC Note 100.000 195,000.00 0.00 195,000.00 ( Ill 5.5% Due 8/20/2012 -I Subtotal 195,000.00 195,000.00 0.00 195,000.00 C D 0 Security 08/06/2012 31846V203 834.00 First American Govt Obligation Fund 1.000 834.00 0.00 834.00 C Ill Withdrawal IV Security 08/28/2012 31846V203 104.17 First American Govt Obligation Fund 1.000 104.17 0.00 104.17 ( -1 Withdrawal Subtotal 938.17 938.17 0.00 938.17 0.00 TOTAL DISPOSITIONS 418,326.88 418,326.88 0.00 418,326.88 0.00 Chandler Asset Management - CONFIDENTIAL Page 6 Execution Time: 9/5/2012 11:48:32 AM City of San Jacinto, Californi Account#10167 Transaction Ledger 7/31/12 Thru 8/31/12 Transaction Settlement AcglDisp Interest Type Date CUSIP Quantity Security Description Price Yield Amount Pur/Sold Total Amount Galn/Loss OTHER TRANSACTIONS Interest 08/01/2012 983024AE0 115,000.00 Wyeth Note 5.5% Due 2/1/2014 Interest 08/05/2012 31398AVD1 285,000.00 FNMA Note 2.75% Due 2/5/2014 Interest 08/13/2012 40428HPG1 125,000.00 HSBC USA Inc Note 2.375% Due 2/13/2015 Interest 08/15/2012 084664BG5 185,000.00 Berkshire Hathaway Note 5% Due 8/15/2013 Interest 08/20/2012 3137EAAV1 195,000.00 FHLMC Note 5.5% Due 8/20/2012 Interest 08/21/2012 31331JBV4 200,000.00 FFCB Note 1.75% Due 2/21 /2013 Interest 08/25/2012 3137EACW7 190,000.00 FHLMC Note 2% Due 8/25/2016 Interest 08/27/2012 31331 KAH3 200,000.00 FFCB Note 1.125% Due 2/27/2014 Interest 08/31/2012 912828NV8 195,000.00 US Treasury Note 1.25% Due 8/31/2015 Subtotal 1,690,000.00 Dividend 08/01/2012 31846V203 17,710.63 First American Gov! Obligation Fund Subtotal 17,710.63 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 3,162.50 3,918.75 1,484.38 4,625.00 5,362.50 1,750.00 1,900.00 1,125.00 1,218.75 0.00 3,162.50 0.00 3,918.75 0.00 0.00 1,484.38 0.00 0.00 4,625.00 0.00 0.00 5,362.50 0.00 0.00 1,750.00 0.00 0.00 1,900.00 0.00 0.00 1,125.00 0.00 0.00 1,218.75 0.00 0.00 24,546.88 0.00 24,546.88 0.00 0.000 1.15 0.00 1.15 0.00 TOTAL OTHER TRANSACTIONS 1,707,710.63 1.15 0.00 1.15 0.00 24,548.03 0.00 24,548.03 0 m N iligandler Asset Management - CONFIDENTIAL Page 7 Execution Time: 9/5/2012 11:48:32 AM `' City of San Jacinto, Californi all Account #10167 Income Earned 7/31/12 Thru 8/31/12 CUSIP Securit Descri.tion Trade Date Book Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned Unreal G/L Total Income Fixed Income 084664BG5 Berkshire Hathaway Note 5% Due 08/15/2013 06/25/2012 06/28/2012 185,000.0 193,578.48 0.00 0.00 192,876.81 4,265.28 4,625.00 411.11 770.83 0.00 701.67 (701.67) 69.16 0.00 69.16 >2 1216AX8 Coca Cola Company i Note 0.75% Due 03/13/2015 m Z 'ERA9 John Deere Capital Corp 125,403.89 356.77 0.00 06/18/2012 0.00 0.00 13.12 06/21/2012 0.00 434.90 (13.12) 125,000.0 125,390.77 78.13 65.01 0.00 65.01 CP Note 0.00 0.00 104.39 121,949.85 789.33 0.00 06/06/2012 Due 03/03/2014 06/102012 0.00 949.33 (104.39) 120,000.00 121,845.46 160.00 55.61 12AB9 Ebay Inc 127,830.06 598.09 0.00 0.0 0.0074.98 0.00 767.36 (74.98) 127,755.08 169.27 94.29 Note 06/12/2012 1.625% Due 10/15/2015 06/15/2012 125,000.0 IJ2S1 FFCB Note 1.5% Due 11/16/2015 298,801.79 906.25 0.00 06/25/2012 0.00 0.00 227.01 06/26/2012 0.00 1,268.75 (227.01) 290,000.00 298,574.78 362.50 135.49 0.00 55.61 0.00 94.29 0.00 135.49 31331JBV4 31331JPK3 FFCB Note 1.75% Due 02/21/2013 FFCB Note 1.375% Due 06/25/2013 31331KAH3 FFCB Note 1.125% Due 02/27/2014 201,713.92 1,555.56 0.00 06/06/2012 0.00 1.750.00 260.45 06/07/2012 0.00 97.22 (260.45) 0.00 200,000.00 201,453.47 291.66 31.21 31 'Arj 202,013.36 275.00 0.00 > 06/13/2012 0.00 0.00 190.29 C) 06/14/2012 0.00 504.17 (190.29) 0 200,000.00 201,823.07 229.17 38.88 38 m 202,481.09 962.50 0.00 06/20/2012 0.00 1,125.00 133.77 06/21/2012 0.00 25.00 (133.77) 0 200,000.00 202,347.32 187.50 53.73 53 I." 31331VGU4 FFCB Note 4.875% Due 12/16/2015 06/12/2012 06/13/2012 250,000.00 285,201.92 0.0 0.00 284,316.16 1,523.44 0.00 2,539.06 1,015.62 0.00 885.76 (885.76) 129.86 N 0 W 129.86 313371UC8 FHLB Note 0.875% Due 12/27/2013 201,517.33 165.28 0.00 06/20/2012 0.00 0.00 91.69 06/21/2012 0.00 311.11 (91.69) 200,000.00 201,425.64 145.83 54.14 0.00 54.14 Chandler Asset Management - CONFIDENTIAL Page 8 Execution Time: 9/5/2012 11:48:32 AM CA% City of San Jacinto, Californi Account#10167 Income Earned 7/31/12 Thru 8/31/12 CUSIP Security Description Trade Date Book Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned Unreal G/L Total Income 313373JR4 FHLB Note 1.375% Due 05/28/2014 06/06/2012 06/07/2012 290,000.00 295,389.09 0.00 0.00 295,137.87 697.81 0.00 1,030.10 332.29 0.00 251.22 (251.22) 81.07 0.00 81.07 3133MTZL5 FHLB Note 4.5% Due 11/15/2012 202,488.76 06/25/2012 0.00 06/26/2012 0.00 200,000.00 201,760.92 1,900.00 0.00 2,650.00 750.00 0.00 727.84 (727.84) 22.16 0.00 22.16 3133XSAE8 FHLB Note 3.625% Due 10/18/2013 197,569.86 1,970.59 0.00 06/22/2012 0.00 0.00 529.72 06/25/2012 0.00 2,544.55 (529.72) 190,000.00 197,040.14 573.96 44.24 0.00 44.24 3133XW7L7 FHLB Note 1.5% Due 01/16/2013 06/18/2012 06/19/2012 200,000.00 201,194.31 0.00 0.00 200,973.93 125.00 0.00 375.00 250.00 0.00 220.38 (220.38) 29.62 0.00 29.62 3133XXP43 FHLB Note 3.125% Due nil 1 /2016 06/14/2012 06/15/2012 270,000.00 292,381.90 0.00 0.00 291,855.47 3,281.25 0.00 3,984.38 703.13 0.00 526.43 (526.43) 176.70 0.00 176.70 3133XXYX9 FHLB Note 1.875% Due 06/21/2013 202,884.37 416.67 0.00 06/06/2012 0.00 0.00 275.97 06/07/2012 0.00 729.17 (275.97) 200,000.00 202,608.40 312.50 36.53 0.00 36.53 3134A4UK8 FHLMC Note 4.875% Due 11/15/2013 201,165.66 1,955.42 0.00 06/06/2012 0.00 0.00 734.89 06/07/2012 0.00 2,727.29 (734.89) 190,000.00 200,430.77 771.87 36.98 0 36 3135G0BJ1 FNMA Note 1.125% Due 06/27/2014 197,791.09 207.19 0.00 06/06/2012 0.00 0.00 124.49 06/07/2012 0.00 390.00 (124.49) 195,000.00 197,666.60 182.81 58.32 0 58 3135G0KM4 FNMA Note 0.5% Due 05/27/2015 06/12/2012 06/13/2012 200,000.00 199,835.82 0.00 0.00 199,840.76 177.78 0.00 261.11 83.33 4.94 0.00 4.94 88.27 0 88 3137EAAV1 FHLMC Note Due 08/20/2012 06/12/2012 06/13/2012 0.00 195,543.76 0.00 195,000.00 0.00 4,796.46 5,362.50 0.00 566.04 0.00 543.76 (543.76) 22.28 17Z :30Vd 13>I0Vid 0.00 22.28 3137EABS7 FHLMC Note 4.125% Due 09/27/2013 198,347.12 2,699.58 0.00 06/25/2012 0.00 0.00 613.17 06/26/2012 0.00 3,352.71 (613.17) 190,000.00 197,733.95 653.13 39.96 0.00 39.96 anther Asset Management - CONFIDENTIAL Page 9 Execution Time: 9/5/2012 11:48:32 AM City of San Jacinto, Californi Account#10167 Income Earned 7/31/12 Thru 8/31/12 CUSIP Security Description Trade Date Book Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned Unreal G/L Total Income 3137EABX6 FHLMC Note 2.5% Due 01/07/2014 06/22/2012 06/25/2012 190,000.00 195,945.20 0.00 0.00 195,593.48 316.67 0.00 712.50 395.83 0.00 351.72 (351.72) 44.11 0.00 44.11 3137EACB3 FHLMC Note 2.5% Due 04/23/2014 rn • EACD9 FHLMC Z Note ✓ 3% Due 07/28/2014 06/18/2012 06/19/2012 190,000.00 197,141.09 0.00 0.00 196,789.71 1,293.06 0.00 1,688.89 395.83 0.00 351.38 (351.38) 44.45 0.00 44.45 ri rn ai 199, 787.23 47.50 0.00 06/22/2012 0.00 0.00 417.91 06/25/2012 0.00 522.50 (417.91) 190,000.00 199,369.32 475.00 57.09 0.00 57.09 EACG2 FHLMC Note 1.375% Due 01/09/2013 201,016.37 168.06 0.00 06/20/2012 0.00 0.00 195.70 06/21/2012 0.00 397.22 (195.70) 200,000.00 200,820.67 229.16 33.46 0.00 33.46 EACT4 FHLMC Note 2.5% Due 05/27/2016 07/12/2012 07/13/2012 180,000.00 192.837.35 0.00 0.00 192, 552.08 800.00 0.00 1,175.00 375.00 0.00 285.27 (285.27) 89.73 0.00 89.73 aiorcACW7 FHLMC Note 2% Due 08/25/2016 06/14/2012 06/15/2012 190,000.00 198,978.15 0.00 0.00 198,790.73 1,646.67 1,900.00 63.33 316.66 0.00 187.42 (187.42) 129.24 0.00 129.24 3137EADC0 FHLMC Note 1% Due 03/08/2017 0.00 0.00 0.00 08/20/2012 221,392.60 (996.11) 9.23 08/21/2012 0.00 1,057.22 (9.23) 220,000.00 221,383.37 61.11 51.88 0 51 31398AJ94 FNMA Note 1.75% Due 05/07/2013 06/13/2012 06/14/2012 295,000.00 298,407.98 0.00 0.00 298,029.32 1,204.58 0.00 1,634.79 430.21 0.00 378.66 (378.66) 51.55 0 51 31398AVD1 FNMA Note 2.75% Due 02/05/2014 295,496.96 3,831.67 0.00 06/07/2012 0.00 3,918.75 588.44 06/08/2012 0.00 566.04 (588.44) 285,000.00 294,908.52 653.12 64.68 0 64 31398AVZ2 FNMA Note 2.75% Due 03/13/2014 296,050.13 3,004.38 0.00 06/22/2012 0.00 0.00 581.59 06/25/2012 0.00 3,657.50 (581.59) 285,000.00 295,468.54 653.12 71.53 9Z :30b'd 13>I0Vid 0.00 71.53 31398AXJ6 FNMA Note 2.5% Due 05/15/2014 06/14/2012 06/15/2012 290,000.00 301,082.41 0.00 0.00 300,555.49 1,530.56 0.00 2,134.72 604.16 0.00 526.92 (526.92) 77.24 0.00 77.24 Chandler Asset Management - CONFIDENTIAL Page 10 Execution Time: 9/5/2012 11:48:32 AM `' City of San Jacinto, Californi all Account #10167 Income Earned 7/31/12 Thru 8/31/12 CUSIP Security Description Trade Date Book Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned Unreal G/L Total Income 40428HPG 1 HSBC USA Inc Note 2.375% Due 02/13/2015 06/26/2012 06/29/2012 125,000.00 126,445.97 0.00 0.00 126,397.56 1,385.42 1,484.38 148.44 247.40 0.00 48.41 (48.41) 198.99 0.00 198.99 459200GU9 IBM Corp Note 2% Due 01/05/2016 124,111.47 06/05/2012 0.00 06/08/2012 0.00 120,000.00 124,009.67 173.33 0.00 373.33 200.00 0.00 101.80 (101.80) 98.20 0.00 98.20 46625HHB9 JP Morgan Chase Note 4.75% Due 05/01/2013 123,315.48 1,425.00 0.00 06/25/2012 0.00 0.00 376.48 06/28/2012 0.00 1,900.00 (376.48) 120,000.00 122.939.00 475.00 98.52 0.00 98.52 594918AG9 Microsoft Note 1.625% Due 09/25/2015 128, 785.13 710.94 0.00 06/27/2012 0.00 0.00 102.03 06/29/2012 0.00 880.21 (102.03) 125,000.00 128,683.10 169.27 67.24 0.00 67.24 713448BX5 Pepsico Inc. Note 0.75% Due 03/05/2015 124,746.95 380.21 8.29 06/05/2012 0.00 0.00 0.00 06/08/2012 0.00 458.33 8.29 125,000.00 124,755.24 78.12 86.41 0.00 86.41 74005PAQ7 Praxair Note 5.25% Due 11/15/2014 126,828.87 1,274.58 0.00 06/26/2012 0.00 0.00 438.63 06/29/2012 0.00 1,777.71 (438.63) 115,000.00 126,390.24 503.13 64.50 0.00 64.50 91159HGY0 US Bancorp Callable Note Cont 8/13/13 1.375% Due 09/13/2013 201,761.17 1,054.17 0.00 06/25/2012 0.00 0.00 144.82 06/28/2012 0.00 1,283.33 (144.82) 200,000.00 201,616.35 229.16 84.34 0 84 912828LR9 US Treasury Note 1.375% Due 10/15/2012 06/14/2012 06/15/2012 200,000.00 200,514.31 0.00 0.00 200,301.73 811.48 0.00 1,044.40 232.92 0.00 212.58 (212.58) 20.34 0 20 912828MB3 US Treasury Note 1.125% Due 12/15/2012 200,725.24 288.93 0.00 06/22/2012 0.00 0.00 165.31 06/25/2012 0.00 479.51 (165.31) 200,000.00 200,559.93 190.58 25.27 0 25 912828NN6 US Treasury Note 1% Due 07/15/2013 201,430.05 92.39 0.00 06/22/2012 0.00 0.00 127.39 06/22/2012 0.00 260.87 (127.39) 200,000.00 201,302.66 168.48 41.09 9Z :30b'd 13>I0Vid 0.00 41.09 912828NV8 US Treasury Note 1.25% Due 08/31/2015 200,200.32 1,020.04 0.00 06/06/2012 0.00 1,218.75 143.30 06/07/2012 0.00 6.73 (143.30) 195,000.00 200,057.02 205.44 62.14 0.00 62.14 anther Asset Management - CONFIDENTIAL iA Page 11 Execution Time: 9/5/2012 11:48:32 AM `' City of San Jacinto, Californi all Account#10167 Income Earned 7/31/12 Thru 8/31/12 CUSIP Security Description Trade Date Book Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned Unreal G/L Total Income 912828PB0 US Treasury Note 0.5% Due 10/15/2013 06/20/2012 06/20/2012 200,000.00 200,564.02 0.00 0.00 200,524.28 295.08 0.00 379.78 84.70 0.00 39.74 (39.74) 44.96 0.00 44.96 912828PE4 US Treasury Note 1.25% Due 10/31/2015 199,976.60 06/07/2012 0.00 06/08/2012 0.00 195,000.00 199,846.52 616.00 0.00 821.33 205.33 0.00 130.08 (130.08) 75.25 0.00 75.25 rn 28P07 Z ri rn US Treasury Note 1% Due 01/15/2014 201,998.26 92.39 0.00 06/25/2012 0.00 0.00 116.44 06/26/2012 0.00 260.87 (116.44) 200,000.00 201,881.82 168.48 52.04 0.00 52.04 28PZ7 US Treasury Note 1.25% Due 03/15/2014 06/14/2012 06/15/2012 195,000.00 197,985.31 0.00 0.00 197,828.72 920.69 0.00 1,126.02 205.33 0.00 156.59 (156.59) 48.74 0.00 48.74 1BET3 Wells Fargo Corp Note 3.75% Due 10/01/2014 126,335.68 1,500.00 0.00 06/26/2012 0.00 0.00 248.30 06/29/2012 0.00 1,875.00 (248.30) 120,000.00 126,087.38 375.00 126.70 0.00 126.70 w00.24AE0 Wyeth Note 5.5% Due 02/01/2014 123,355.92 3,162.50 0.00 06/06/2012 0.00 3,162.50 471.83 06/11/2012 0.00 527.08 (471.83) 115,000.00 122.884.09 527.08 55.25 0.00 55.25 9,530,907.05 221,392.60 195,000.00 TOTAL Fixed Income 9,285,000.00 9,543,183.91 58,671.55 23,550.77 52,564.97 17,444.19 13.23 14,128.97 (14,115.74) 3,328.45 0 3,328 Cash & Equivalent 31846V203 First American Govt Obligation Fund 14,548.13 0.00 0.00 Various 219,548.03 1.15 0.00 Various 223,326.88 0.00 0.00 10, 769.28 10, 769.28 1.15 1.15 0 36959HKR7 General Electric Capitial Corp Discount CP 0.24% Due 10/25/2012 199,886.67 0.00 41.33 06/27/2012 0.00 0.00 0.00 06/27/2012 0.00 0.00 41.33 200,000.00 199,928.00 0.00 41.33 LZ :30b'd 13>I0Vid 0.00 41.33 89233GJR8 Toyota Motor Credit Discount CP 0.19% Due 09/25/2012 199,941.94 0.00 32.73 06/27/2012 0.00 0.00 0.00 06/27/2012 0.00 0.00 32.73 200,000.00 199,974.67 0.00 32.73 0.00 32.73 Chandler Asset Management - CONFIDENTIAL Page 12 Execution Time: 9/5/2012 11:48:32 AM City of San Jacinto, Californi Account #10167 Income Earned 7/31/12 Thru 8/31/12 CUSIP Security Description Trade Date Book Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned Unreal G/L Total Income TOTAL Cash & Equivalent 410,769.28 414,376.74 219,548.03 223,326.88 410,671.95 0.00 1.15 0.00 1.15 74.06 0.00 74.06 75.21 0.00 75.21 TOTAL PORTFOLIO 9,695,769.28 9,945,283.79 440,940.63 418,326.88 9,953,855.86 58,671.55 23,551.92 52,564.97 17,445.34 87.29 14,128.97 (14,041.68) 3,403.66 0.00 3,403.66 8Z 3J`dd 13NOVd *ndler Asset Management - CONFIDENTIAL A Page 13 Execution Time: 9/5/2012 11:48:32 AM City of San Jacinto, Californi Account#10167 Cash Flow Report From 08/31/2012 Transaction Payment Date Type CUSIP Quantity Security Description Principal Amount Income Total Amount £.Vt W31I VdN39V 09/03/2012 Interest 09/05/2012 Interest 09/08/2012 Interest 09/11/2012 Interest 09/13/2012 Interest 09/13/2012 Interest 09/13/2012 Interest 09/15/2012 Interest 09/25/2012 Interest 09/25/2012 Maturity 09/27/2012 Interest 24422ERA9 713448BX5 3137EADCO 3133XXP43 31398AVZ2 191216AX8 91159HGY0 912828PZ7 594918AG9 89233GJR8 3137EABS7 120,000.00 John Deere Capital Corp Note 1.6% Due 3/312014 125,000.00 Pepsico Inc. Note 0.75% Due 3/5/2015 220,000.00 FHLMC Note 1 % Due 3/8/2017 270,000.00 FHLB Note 3.125% Due 3/11/2016 285,000.00 FNMA Note 2.75% Due 3/13/2014 125,000.00 Coca Cola Company Note 0.75% Due 3/13/2015 200,000.00 US Bancorp Callable Note Cont 8/13/13 1.375% Due 9/13/2013 195,000.00 US Treasury Note 1.25% Due 3/15/2014 125,000.00 Microsoft Note 1.625% Due 9/25/2015 200,000.00 Toyota Motor Credit Discount CP 0.19% Due 9/25/2012 190,000.00 FHLMC Note 4.125% Due 9/27/2013 0.00 960.00 0.00 468.75 0.00 1,100.00 0.00 4,218.75 0.00 3.918.75 0.00 466.15 0.00 1,375.00 0.00 1,218.75 0.00 1,015.63 200,000.00 0.00 0.00 3,918.75 960.00 468.75 1,100.00 4,218.75 3,918.75 466.15 1,375.00 1,218.75 1,015.63 200,000.00 3,918.75 Sep 2012 10/01/2012 Interest 94974BET3 120,000.00 Wells Fargo Corp Note 0.00 2,250.00 2,250.00 3.75% Due 10/1/2014 10/15/2012 Interest 278642AB9 125,000.00 Ebay Inc Note 0.00 1,015.63 1,015.63 1.625% Due 10/15/2015 10/15/2012 Interest 912828PB0 200,000.00 US Treasury Note 0.00 500.00 500.00 0.5% Due 10/15/2013 10/15/2012 Maturity 912828LR9 200,000.00 US Treasury Note 200,000.00 1,375.00 201,375.00 1.375% Due 10/15/2012 10/18/2012 Interest 3133XSAE8 190,000.00 FHLB Note 0.00 3,443.75 3,443.75 3.625% Due 10/18/2013 10/23/2012 Interest 3137EACB3 190,000.00 FHLMC Note 0.00 2,375.00 2,375.00 2.5% Due 4/23/2014 10/25/2012 Maturity 36959HKR7 200,000.00 General Electric Capitial Corp Discount CP 200,000.00 0.00 200,000.00 0.24% Due 10/25/2012 10/31/2012 Interest 912828PE4 195,000.00 US Treasury Note 0.00 1,218.75 1,218.75 1.25% Due 10/31/2015 200,000.00 18,660.53 218,660.53 Oct 2012 400,000.00 12,178.13 412,178.13 6Z :30b'd 13)IOVd Chandler Asset Management - CONFIDENTIAL Page 14 Execution Time: 9/5/2012 11:48:32 AM ik City of San Jacinto, Californi Account#10167 Cash Flow Report From 08/31/2012 Transaction Payment Date Type CUSIP Quantity Security Description Principal Amount Income Total Amount 11 /01 /2012 Interest 11/07/2012 Interest 11/15/2012 Interest 11/15/2012 Interest 11/15/2012 Interest 11/15/2012 Maturity 11/16/2012 Interest 11/27/2012 Interest 11/27/2012 Interest 11/28/2012 Interest 46625HHB9 31398AJ94 3134A4UK8 74005PAQ7 31398AXJ6 3133MTZL5 31331J2S1 3135G0KM4 3137EACT4 313373JR4 120,000.00 JP Morgan Chase Note 4.75% Due 5/1/2013 295,000.00 FNMA Note 1.75% Due 5/7/2013 190,000.00 FHLMC Note 4.875% Due 11/15/2013 115,000.00 Praxair Note 5.25% Due 11/15/2014 290,000.00 FNMA Note 2.5% Due 5/15/2014 200,000.00 FHLB Note 4.5% Due 11/15/2012 290,000.00 FFCB Note 1.5%Due 11/16/2015 200,000.00 FNMA Note 0.5% Due 5/27/2015 180,000.00 FHLMC Note 2.5% Due 5/27/2016 290,000.00 FHLB Note 1.375% Due 5/28/2014 0.00 2,850.00 0.00 2,581.25 0.00 4,631.25 0.00 3,018.75 0.00 3.625.00 200,000.00 4,500.00 0.00 2,175.00 0.00 500.00 0.00 2,250.00 0.00 1,993.75 2,850.00 2,581.25 4,631.25 3,018.75 3,625.00 204,500.00 2,175.00 500.00 2,250.00 1,993.75 Nov 2012 200,000.00 28,125.00 228,125.00 12/15/2012 Maturity 912828MB3 200,000.00 US Treasury Note 200,000.00 1,125.00 201,125.00 1.125% Due 12/15/2012 12/16/2012 Interest 31331VGU4 250,000.00 FFCB Note 0.00 6,093.75 6,093.75 4.875% Due 12/16/2015 12/21/2012 Interest 3133XXYX9 200,000.00 FHLB Note 0.00 1,875.00 1,875.00 1.875% Due 6/21/2013 12/25/2012 Interest 31331JPK3 200,000.00 FFCB Note 0.00 1,375.00 1,375.00 1.375% Due 6/25/2013 12/27/2012 Interest 3135G0BJ1 195,000.00 FNMA Note 0.00 1,096.88 1,096.88 1.125% Due 6/27/2014 12/27/2012 Interest 313371UC8 200,000.00 FHLB Note 0.00 875.00 875.00 0.875% Due 12/27/2013 Dec 2012 200,000.00 12,440.63 212,440.63 01/05/2013 Interest 01/07/2013 Interest 459200GU9 120,000.00 IBM Corp Note 2% Due 1/5/2016 3137EABX6 190,000.00 FHLMC Note 2.5% Due 1/7/2014 0.00 1,200.00 1,200.00 0.00 2,375.00 2,375.00 Jan 2013 400,000.00 11,300.00 411,300.00 OE :30b'd 13>I0Vd anther Asset Management - CONFIDENTIAL i1f_1 Page 15 Execution Time: 9/5/2012 11:48:32 AM p City of San Jacinto, Californi Account#10167 Cash Flow Report From 08/31/2012 Transaction Payment Date Type CUSIP Quantity Security Description Principal Amount Income Total Amount £.Vt W31I VdN39V 01/09/2013 Maturity 01/15/2013 Interest 01/15/2013 Interest 01/16/2013 Maturity 01/28/2013 Interest 3137EACG2 912828PQ7 912828NN6 3133XW7L7 3137EACD9 200,000.00 FHLMC Note 1.375% Due 1/9/2013 200,000.00 US Treasury Note 1%Due 1/15/2014 200,000.00 US Treasury Note 1% Due 7/15/2013 200,000.00 FHLB Note 1.5%Due 1/16/2013 190,000.00 FHLMC Note 3% Due 7/28/2014 200,000.00 0.00 0.00 200,000.00 0.00 1,375.00 1,000.00 1,000.00 1,500.00 2,850.00 201,375.00 1,000.00 1,000.00 201,500.00 2,850.00 Jan 2013 02/01/2013 Interest 983024AE0 115,000.00 Wyeth Note 5.5% Due 2/1/2014 400,000.00 11,300.00 411,300.00 0.00 3.162.50 3,162.50 02/05/2013 Interest 31398AVD1 285,000.00 FNMA Note 0.00 3,918.75 3,918.75 2.75% Due 2/5/2014 02/13/2013 Interest 40428HPG1 125,000.00 HSBC USA Inc Note 0.00 1,484.38 1,484.38 2.375% Due 2/13/2015 02/15/2013 Interest 084664BG5 185,000.00 Berkshire Hathaway Note 0.00 4,625.00 4,625.00 5% Due 8/15/2013 02/21/2013 Maturity 31331JBV4 200,000.00 FFCB Note 200,000.00 1,750.00 201,750.00 1.75% Due 2/21 /2013 02/25/2013 Interest 3137EACW7 190,000.00 FHLMC Note 0.00 1,900.00 1,900.00 2% Due 8/25/2016 02/27/2013 Interest 31331KAH3 200,000.00 FFCBNote 0.00 1,125.00 1,125.00 1.125% Due 2/27/2014 02/28/2013 Interest 912828NV8 195,000.00 US Treasury Note 0.00 1,218.75 1,218.75 1.25% Due 8/31/2015 Feb 2013 03/03/2013 Interest 24422ERA9 120,000.00 John Deere Capital Corp Note 1.6% Due 3/3/2014 03/05/2013 Interest 713448BX5 125,000.00 Pepsico Inc. Note 0.75% Due 3/5/2015 03/08/2013 Interest 3137EADCO 220,000.00 FHLMC Note 1% Due 3/8/2017 03/11/2013 Interest 3133XXP43 270,000.00 FHLB Note 3.125% Due 3/11/2016 03/13/2013 Interest 31398AVZ2 285,000.00 FNMA Note 2.75% Due 3/13/2014 200,000.00 19,184.38 219,184.38 0.00 960.00 960.00 0.00 468.75 468.75 0.00 1,100.00 1,100.00 0.00 4,218.75 4,218.75 0.00 3,918.75 3,918.75 Mar2013 0.00 18,663.13 18,663.13 1.£ :30b'd 13)IO`dd Chandler Asset Management - CONFIDENTIAL Page 16 Execution Time: 9/5/2012 11:48:32 AM City of San Jacinto, Californi Account#10167 Cash Flow Report From 08/31/2012 Transaction Payment Date Type CUSIP Quantity Security Description Principal Amount Income Total Amount 03/13/2013 Interest 03/13/2013 Interest 03/15/2013 Interest 03/25/2013 Interest 03/27/2013 Interest 91159HGY0 191216AX8 912828PZ7 594918AG9 3137EABS7 200,000.00 US Bancorp Callable Note Cont 8/13/13 1.375% Due 9/13/2013 125,000.00 Coca Cola Company Note 0.75% Due 3/13/2015 195,000.00 US Treasury Note 1.25% Due 3/15/2014 125,000.00 Microsoft Note 1.625% Due 9/25/2015 190,000.00 FHLMC Note 4.125% Due 9/27/2013 0.00 0.00 0.00 0.00 0.00 1,375.00 468.75 1,218.75 1,015.63 3.918.75 1,375.00 468.75 1,218.75 1,015.63 3,918.75 Mar 2013 0.00 18,663.13 18,663.13 04/01/2013 Interest 94974BET3 120,000.00 Wells Fargo Corp Note 0.00 2,250.00 2,250.00 3.75% Due 10/1/2014 04/15/2013 Interest 278642AB9 125,000.00 Ebay Inc Note 0.00 1,015.63 1,015.63 1.625% Due 10/15/2015 04/15/2013 Interest 912828PB0 200,000.00 US Treasury Note 0.00 500.00 500.00 0.5% Due 10/15/2013 04/18/2013 Interest 3133XSAE8 190,000.00 FHLB Note 0.00 3,443.75 3,443.75 3.625% Due 10/18/2013 04/23/2013 Interest 3137EACB3 190,000.00 FHLMC Note 0.00 2,375.00 2,375.00 2.5% Due 4/23/2014 04/30/2013 Interest 912828PE4 195,000.00 US Treasury Note 0.00 1,218.75 1,218.75 1.25% Due 10/31/2015 Apr 2013 05/01/2013 Maturity 46625HHB9 120,000.00 JP Morgan Chase Note 120,000.00 2,850.00 122,850.00 4.75% Due 5/1/2013 05/07/2013 Maturity 31398AJ94 295,000.00 FNMA Note 295,000.00 2,581.25 297,581.25 1.75% Due 5/7/2013 05/15/2013 Interest 31398AXJ6 290,000.00 FNMA Note 0.00 3,625.00 3,625.00 2.5% Due 5/15/2014 05/15/2013 Interest 74005PAQ7 115,000.00 Praxair Note 0.00 3,018.75 3,018.75 5.25% Due 11/15/2014 05/15/2013 Interest 3134A4UK8 190,000.00 FHLMC Note 0.00 4,631.25 4,631.25 4.875% Due 11/15/2013 05/16/2013 Interest 31331J2S1 290,000.00 FFCBNote 0.00 2,175.00 2,175.00 1.5% Due 11/16/2015 05/27/2013 Interest 3135G0KM4 200,000.00 FNMA Note 0.00 500.00 500.00 0.5% Due 5/27/2015 0.00 10,803.13 10,803.13 May 2013 415,000.00 23,625.00 438,625.00 ZE :30b'd 13)IOVd anther Asset Management - CONFIDENTIAL i1f_1 Page 17 Execution Time: 9/5/2012 11:48:32 AM City of San Jacinto, Californi Account#10167 Cash Flow Report From 08/31/2012 Transaction Payment Date Type CUSIP Quantity Security Description Principal Amount Income Total Amount 05/27/2013 Interest 05/28/2013 Interest 3137EACT4 313373JR4 180,000.00 FHLMC Note 2.5% Due 5/27/2016 290,000.00 FHLB Note 1.375% Due 5/28/2014 0.00 0.00 2,250.00 1,993.75 2,250.00 1,993.75 £.Vt IN31I V N39V May 2013 06/16/2013 Interest 06/21/2013 Maturity 06/25/2013 Maturity 06/27/2013 Interest 06/27/2013 Interest 31331VGU4 3133XXYX9 31331JPK3 3135G0BJ1 313371UC8 250,000.00 FFCB Note 4.875% Due 12/16/2015 200,000.00 FHLB Note 1.875% Due 6/21/2013 200,000.00 FFCB Note 1.375% Due 6/25/2013 195,000.00 FNMA Note 1.125% Due 6/27/2014 200,000.00 FHLB Note 0.875% Due 12/27/2013 415,000.00 0.00 200,000.00 200,000.00 0.00 0.00 23,625.00 6,093.75 1,875.00 1,375.00 1,096.88 875.00 438,625.00 6,093.75 201,875.00 201,375.00 1,096.88 875.00 Jun 2013 07/05/2013 Interest 07/07/2013 Interest 07/15/2013 Interest 07/15/2013 Maturity 07/28/2013 Interest 459200GU9 3137EABX6 912828PQ7 912828NN6 3137EACD9 120,000.00 IBM Corp Note 2% Due 1/5/2016 190,000.00 FHLMC Note 2.5% Due 1/7/2014 200,000.00 US Treasury Note 1% Due 1/15/2014 200,000.00 US Treasury Note 1% Due 7/15/2013 190,000.00 FHLMC Note 3% Due 7/28/2014 400,000.00 0.00 0.00 0.00 200,000.00 0.00 11,315.63 1,200.00 2,375.00 1,000.00 1,000.00 2,850.00 411,315.63 1,200.00 2,375.00 1,000.00 201,000.00 2,850.00 Jul 2013 08/01/2013 Interest 08/05/2013 Interest 08/13/2013 Call 08/13/2013 Interest 08/15/2013 Maturity 08/25/2013 Interest 983024AE0 31398AVD1 91159HGY0 40428HPG1 084664BG5 3137EACW7 115,000.00 Wyeth Note 5.5% Due 2/1/2014 285,000.00 FNMA Note 2.75% Due 2/5/2014 200,000.00 US Bancorp Callable Note Cont 8/13/13 1.375% Due 9/13/2013 125,000.00 HSBC USA Inc Note 2.375% Due 2/13/2015 185,000.00 Berkshire Hathaway Note 5% Due 8/15/2013 190,000.00 FHLMC Note 2% Due 8/25/2016 200,000.00 0.00 0.00 0.00 0.00 185,000.00 0.00 8,425.00 3,162.50 3,918.75 1,145.83 1,484.38 4,625.00 1,900.00 208,425.00 3,162.50 3,918.75 1,145.83 1,484.38 189,625.00 1,900.00 Aug 2013 185,000.00 18,580.21 203,580.21 ££ :30b'd 13)IO`dd Chandler Asset Management - CONFIDENTIAL Page 18 Execution Time: 9/5/2012 11:48:32 AM CA% City of San Jacinto, Californi Account #10167 Cash Flow Report From 08/31/2012 Transaction Payment Date Type CUSIP Quantity Security Description Principal Amount Income Total Amount 08/27/2013 Interest 08/31/2013 Interest 31331KAH3 912828NV8 200,000.00 FFCB Note 1.125% Due 2/27/2014 195,000.00 US Treasury Note 1.25% Due 8/31/2015 0.00 0.00 1,125.00 1,218.75 1,125.00 1,218.75 Aug 2013 185,000.00 18,580.21 203,580.21 Total 2,800,000.00 193,300.77 2,993,300.77 17C 3Jbd 13)IJbd andler Asset Management - CONFIDENTIAL Page 19 Execution Time: 9/5/2012 11:48:32 AM 5C ]Jb'd 1]>10dd City of San Jacinto August 31, 2012 Assets managed by Chandler Asset Management are in full compliance with State law and with the City's investment policy. Category Standard Comment Treasury Issues No Limitation Complies Agency Issues No Limitation Complies Commercial Paper 15% maximum; <270 days maturity; A-1 rated equivalent by at least two NRSROs Complies Negotiable Certificates of Deposit 30% maximum; A rated equivalent by at least two NRSROs Complies Medium Term Notes 20% maximum; A rated equivalent by at least two NRSROs Complies Money Market Mutual Funds 18% maximum; rated equivalent by at least two NRSROs Complies Local Agency Investment Fund - L.A.I.F. Currently not used by investment adviser Complies Prohibited Securities Inverse floaters: Ranges notes, Interest- only strips from mortgaged backed securities; Zero interest accrual securities Complies Maximum maturity 5 years Complies £'H£ W31I VaN3JV AGENDA ITEM 3A.4 October 2, 2012 TO: The Honorable Mayor and Members of the City Council FROM: Rick Miller, City Clerk SUBJECT: Minutes of the Joint Meeting with City of Hemet - August 21, 2012 RECOMMENDATION: Staff recommends that the city council, by motion, approve the minutes of the joint meeting with the City of Hemet from August 21, 2012. ATTACHMENTS • Draft Minutes of the August 21, 2012 — Special Joint Meeting PACKET PAGE: 37 AGENDA ITEM 3A.4 MINUTES JOINT SPECIAL MEETING OF THE SAN JACINTO CITY COUNCIL AND THE HEMET CITY COUNCIL AUGUST 21, 2012 6:00 p.m. 300 W. First Street San Jacinto, California 92583 1. ORGANIZATION 1.1 Call to Order San Jacinto Mayor Andrew Kotyuk called the special meeting of the San Jacinto City Council and the Hemet City Council to order at 6:17 p.m. 1.2 Roll Call City of Hemet Present: Council Members Foreman, Krupa, Smith, Mayor Youssef Absent: Council Member Epps M/S/C (Smith/Krupa) moved to excuse the absence of Council Member Epps. Motion carried 5/0. Ayes: Foreman, Krupa, Smith, Youssef Nays: None Absent: Epps Abstain: None City of San Jacinto Present: Council Members Bartel, Di Memmo, Ledezma, Vice Mayor Kotyuk, Mayor Miller Absent: None 1.3 Invocation Nick Smith gave the invocation. 1.4 Pledge of Allegiance Cub Scout Pack 46 led the Pledge of Allegiance San Jacinto Mayor Kotyuk thanked everyone for attending the meeting regarding safety in San Jacinto Valley. It is amazing to see the energy and participation in the community come together, We are currently in a state of crisis in the community PACKET PAGE: 39 AGENDA ITEM 3A.4 Joint City of San Jacinto. City of Hemet Council Minutes August 21, 2012 Page 2 of 11 because of the issues. He spoke of growing up in the community and how safe and secure it was. There was a tourism industry that attracted the right kind of people to the community. America is under attack and California is faltering which results in record breaking foreclosures, unemployment, and a huge influx of criminals in our community. We are here tonight to talk about public safety, cleaning up neighborhoods, force out the bad elements and to plan for tomorrow and turn the valley around. You are all here to be heard and to make a difference. He thanked San Jacinto Assembly for hosting this event. A short video was shown. San Jacinto Mayor Kotyuk recessed for ten minutes at 6:36 p.m. for groups to choose speakers for their topics. The meeting was reconvened at 6:50 p.m. San Jacinto Assistant City Manager Mike Emberton gave a brief presentation and spoke about the City of San Jacinto. He attended the last meeting and was impressed with the enthusiasm and the will to change the valley. He introduced Captain Scott Collins of the Riverside County Sheriffs Department to speak about San Jacinto public safety. Captain Collins spoke on the Sheriffs Department and reported the 5 year crime statistics from 2007 through 2011. The City's population grew from 35,491 in 2007 to 44,803 in 2011. Violent Crime is down for the five years and Property Crime is up. It is difficult to say how many officers are needed and there is always a greater demand for services along with funding issues. He reviewed the San Jacinto Police Department Staffing and the Current and Proposed Programs: SJPD - Special Enforcement Team. Anti -Graffiti Programs. ABC Compliance Programs, Citizens Patrol, Safe Parks Programs, Traffic & DUI Programs, Bicycle Safety, and Bait Car Program. Regional — Gang Task Force. Sex Registrant Compliance (SAFE). Warrant Sweeps, Parole Sweeps, Probation Sweeps. and Narcotics Enforcement. He spoke of the volunteer program and asked anyone who wanted to get involved to speak with the volunteers at the table outside. The entire presentation is on file with the City Clerk's office. San Jacinto Assistant City Manager Emberton discussed the ROC's Program and addressed the many issues in conjunction with the City of Hemet. He spoke about Code Enforcement, Park Surveillance, Neighborhood Lighting Projects. Graffiti and Community Partnerships. Some of the Ordinances that the City of San Jacinto is teaming with the City of Hemet via the ROC's Program such as: Prohibition of Medical Marijuana Dispensaries, Regulation of Shopping Carts, Sex Offender Location Restrictions, Sex Offender Residency Restrictions, Interim Moratorium on Smoke Shops & Hookah Lounges. Drug and Gang related Crime on Residential Property. Abatement of Chronic Nuisance Properties, Boarding Houses and Group Homes With Reasonable Accommodation'. He spoke of a Receivership Program designed to address derelict, delinquent properties by out-of-town owners. In the near future, the city will be rolling out its plan "the Safe and Ready Commission" to unite neighborhoods (via people working together) for crime prevention and preparedness in case of disaster. The entire presentation is on file with the City Clerk's office. Hemet Interim City Manager Mark Orme spoke about the City of Hemet and thanked everyone for being in attendance. He called Hemet Police Chief Dave Brown to the podium. City of Hemet Police Chief Dave Brown spoke about crime in the City of Hemet. He thanked everyone for their commitment and the drive for their community. He said we can't police the PACKET PAGE: 40 Joint ayef sar' AGENDA ITEM MA August 21, 2012 Page 3 of 11 community without the community. Supervisor Jeff Stone asked the Mayors of both cities to join him with Captain Collins and Chief Brown to meet. He challenged them to find a project and he would commit public resources toward it. What impressed him was that the Supervisor and both Mayor's turned to their law enforcement professionals and said YOU tell me what needs to be done and we will help you". One of the things getting done in the valley is the joint Gang Task Force. He said the City Council of Hemet had the opportunity to get a Federal Grant that would increase the number of officers in the City of Hemet. He has ten police officer positions that he is authorized to fill, in part because of questions from the last meeting. He said he is looking forward to working with the community to move forward with some of the issues raised. Hemet Interim City Manager Orme spoke about Hemet ROC's. It is the hallmark of where the city needs to be. This type of program makes people come out and what to help. He said that half of the City Ordinances in Hemet are about done and more to go. He said if the community would like to have any Input there is a Hemet ROC's Committee meeting every month. The next one is this Thursday the 23'd at the library. Riverside County Supervisor Jeff Stone introduced officials several different county agencies. There are 18,000 county employees that work very hard to deliver services under very challenging circumstances. He listed the services that the county is mandated by the state to provide. The services are as follows: Cal Works, Adult and Child Protective Services, Drug and Alcohol Abuse Services, Cal Fresh (food stamps), Foster Care, In Home Supportive Services, Medical Care Services, Public Health (Women, Infants and Children) WIC, Social Services, Mental Health, Housing Authority, Work Force Development, Sheriff, Intervention Prevention and Transportation. He reviewed each topic. It is advantageous for the two cities to work together harmoniously. The Valley Congress has been formed and he said he is proud of the working relationship that he has with his 10 public official partners. Wth the recent incident of crime and as a result of the public comments from the meeting last week it is clear that the community is asking Its leaders for serious change and direction. There are several undesirable factors that hinder a city's ability to enhance the quality of life for its citizens. Serious changes will be addressed after hearing the questions tonight. Changes will need to be made such as stopping low land values that was created in the housing boom which caused real estate values to escalate to unrealistic levels. Resources need to be put together to have comprehensive Code Enforcement to get rid of boarded up homes and get the squatters out of the vacant homes. There are innovative programs at the county such as the Sexual Predator Internet Decoy Enforcement in Riverside County "SPIDER" Program which is a comprehensive online way to go after sexual predator's to insure they are not going after our kids. These are challenging times economically and the only way to do what needs to be done is to combine resources, both personnel and financially_ He said he has made an offer to provide substantial resources to work collectively with the mayors and the city council through this coming year. It is in partnership with the public and neighborhood watches need to be formed that will help take this valley back. 2.0 PUBLIC COMMENTS None PACKET PAGE: 41 AGENDA ITEM 3A.4 Joint City of San Jacinto. City of Hemet Council Minutes August 21, 2012 Page 4 of 11 3. WORK STUDY SESSION 3.1 San Jacinto Valley Public Safety Concems Interactive discussion with citizens and Cities of Hemet, San Jacinto and Supervisor Stone regarding public safety concerns within the San Jacinto Valley, with possible direction to staff. San Jacinto Mayor Kotyuk explained that each speaker would be given two minutes. If someone wished to give their two minutes to another speaker to please indicate that on the request to speak slips. Public Comments • Nicole Tamez, 125 Ibiza Ln, Hemet spoke about student safety in crossing streets. • Seth Weinger spoke about public safety issues and combining resources. • Bill Farley 1930 Calle Pasito Hemet likes this valley but does not feel safe, he spoke about violence. • David Christian, 890 Verona, Ave, San Jacinto commented that he is opposed additional taxes for more police and gun laws regarding concealed weapons permits. • Don Digby, 25080 California Ave., Hemet spoke about dividing the cities into sections, north, south, east and west and have representatives work with Council Members to discuss issues on specific areas. • Patti Drusky, 615 N_ San Jacinto Ave_, Hemet spoke about educating the community to prevent graffiti and pan handlers. • Don Pierce, 551, N. Santa Fe St., ii140, Hemet and Sean Weidman spoke about children's safety and sidewalks. • Brishen Kruse, 41299 Whittier, Hemet spoke about reducing the number of stop signs and signal lights on the major roads in and out of town to better get to work out of town. Asked about answers from the meeting last week. • Matthew Minor, 3291 W Florida Ave., Hemet asked for more officers and to stop frivolous spending. • Ray Strait, 40541 Mayberry Ave, Hemet spoke on public safety and graffiti. He asked for streetlights and sidewalks in his area. There is a need for a skate park. PACKET PAGE: 42 Joint aver say AGENDA ITEM MAAugust 21, 2012 Page 5 of 11 • Lakshman Koka, 1695 San Jacinto Ave. #A, San Jacinto spoke about last week's meeting and the need to step up and not back off the list. He also spoke about a business watch through the Hemet, San Jacinto Valley Chamber of Commerce. • Jerry McCarty, 1357 Basswood Way, Hemet spoke about addressing the jails system and keep criminals in jail. • James Pangrazzi, 408 S. Kirby St, San Jacinto spoke about monitoring Megans Law website and two pedophiles living across the street from San Jacinto High School. • Jack Lingo, 41682 Fulton, Hemet, spoke about Rudy Giuliannt's broken window policy. Resolving small crime and it would take care of the larger ones. The need for aggressive code Enforcement and Graffiti removal. • Patricia Yepremian, 27361 Stanford St., Hemet, CA urged everyone to work together to save the valley and have a great community. To bring it back to what she has heard it was some time ago. • Susan Watson, 2323 S. San Jacinto Ave., San Jacinto spoke about the San Jacinto Chamber of Commerce being part of the solution and that the councils can count on them for support. • Wigs Mendoza. 140 E Stetson, Hemet spoke about public safety and the need to San up the communities. • Howard Rosenthal, Hemet -San Jacinto Action Group spoke about the people who had spoken at the meeting tonight commenting that they needed help and asked council to lead them. • Paul Raver submitted a hand out to the council members. He asked the Hemet City Council to dip into the reserve funds to pay for additional personnel. • John Wuerth, 40185 Vista Rd., Hemet said he lives in Diamond Valley and asked Supervisor Stone about accountability regarding Code Enforcement. • Hank Schmitz, Annisa Ave., Hemet asked Supervisor Stone not to run for higher office as he knows the issues and is needed here. He spoke about median income, homeless shelters and public safety. • Betty Griggs, 328 S. Juanita, Hemet spoke about problems in her neighborhood was solved with a neighborhood watch program. PACKET PAGE: 43 AGENDA ITEM 3A.4 Joint City of San Jacinto. City of Hemet Council Minutes August 21, 2012 Page 6 of 11 • Joyce Newsom, 1437 Jackson Circle, San Jacinto spoke about Code Enforcement not doing their job and about Law Enforcement doing the best they can with what they have. • Jim Lineberger, Community Pantry spoke about the poor and the reality is that they are here and the need to understand their needs. • Lori Van Arsdale, 228 Jelly Way, Hemet said that one program that was successful in the past was to go the parolee agency so there weren't transfers into the valley. She thanked the volunteers who go to clean up houses and yards in their neighborhoods and urged them to continue. • George Kavakis spoke about blight on the streets and cars parked on lawns. • Margaret Panuay, 1260 Condor Way, San Jacinto spoke about absentee landlords and the need to implement licensing or institute some type of controls, • Tim Schultz spoke about public safety and the economy in the valley. • Robert Galletta spoke about rebuilding Hemet. He spoke of volunteers who have done more than those they are speaking to. People of the valley are tired of political agendas and broken promises. Stop talking and get to work. • David Harvey, 40320 Thornton Ave., Hemet spoke about what a wonderful place this valley was to grow up in. He asked that the City of Hemet use reserve money and hire more fire fighters and a fire chief, • Bobbie Christie, 320 Juel Lane, Hemet said she is proud to live in Hemet. Her husband is a fire captain in San Diego. She spoke about dispatchers and how they know how to respond and what is an emergency. • Howard Tounget spoke about poison in fields in San Jacinto that Agri - Empire is placing there. • Sheltie Milne, 1660 Elmbridge Ln., Hemet spoke about how the City of Hemet passed on Ron Bradley. He was willing to do the job and could start immediately. She asked why the vote went the way it did. • Rev. James Hall, 1250 N. Kirby, Hemet works for Valley Restart and spoke about the program. He spoke about giving bus ticket to people who have some place to go and get them on a bus. So far, none have come back that they know of. He asked that we do not take parolees and do not give people money when they ask for it. PACKET PAGE: 44 Joint ay or sar AGENDA ITEM 3A.4 August 21, 2012 Page 7 of 11 • Ray Fonseca, 207 S_ Harvard St, Hemet spoke about supporting teachers in the community and keeping the children safe. • Tom Garnella, 44625 Adobe Dr, Hemet spoke about Code Enforcement issues with recycling sites and trash being dumped wherever people want to leave it. Specifically a dumping area on Florida and 5th St. next door to a bicycle shop, San Jacinto Council Member Di Memmo left the dais at 9:45 p.m. and returned at 9:51 p.m. • Richard Avila. 4610 Ferngreen Dr. Hemet spoke about his deep concerns regarding a bankrupt country and the future. San Jacinto Mayor Kotyuk said that concludes the public comment period. This is a good showing for the community. He said there is a need to take action and asked the members of the Valley Congress to make comments on the questions. Supervisor Jeff Stone said one thing that is alive and well in the San Jacinto Valley is the pride of the citizens that want their home returned to them as safe as possible. He and the two mayors are meeting regularly and will embark on programs and take action. Some of the ideas that need to be addressed are as follows: Regional Police Force, Regional Fire, Code Enforcement, blight, more jail space, sex offenders and graffiti. He said there have been discussions regarding the cities taking over the Section 8 housing. He invited Susan Lowe, Department of Social Services to respond to question of the cities taking over the Section 8 housing. Susan Lowe, Department of Social Services said she would need to defer to Heidi Marshall with the Housing Authority. Heidi Marshall, Housing Authority said the law does not prevent the City of Hemet taking on this responsibility. She said she met with the city council several years ago and presented a plan that would have allowed for the transition of those vouchers. Staffing requirements at the time prohibited it from happening at that time, It is very costly to run the program. She said she would be happy to meet with the council again and present it so they have the ability to make their decision. Supervisor Stone said he is a strong advocate of local control and if there is a desire on behalf of the cities to take Section 8 housing under their local control, he will support that effort. He invited Mark Hake, Assistant Probation Chief to speak on Lori Van Arsdale comments regarding limiting probationers from residing in this valley. Mark Hake, Assistant Probation Chief spoke about the inmates that are currently being released back to the County of Riverside under AB109. Prior to their release from prison the probation department receives an intake packet from the state prison 120 PACKET PAGE: 45 AGENDA ITEM 3A.4 Joint City of San Jacinto. City of Hemet Council Minutes August 21, 2012 Page 8 of 11 days before they are released. The packet is reviewed, and every attempt possible is made to contact the person who they intend to live with. The terms of their release is reviewed. Past history is reviewed and look at any indications that they may come into contact with any previous victims or that there are other legal requirements that preclude them from living in a particular location. Everything possible is done to ensure that the inmate will be coming back in to an environment where they will receive some support. The last thing that is wanted is for them to end up homeless on the streets. He said there was a public comment with regard to a couple of sex offender homes. The person who spoke indicated that those were AB109 funded. The County of Riverside has not spent any money on funding any type of housing program for sex offenders. Supervisor Stone spoke about a County of Riverside program called Graffiti Busters. Graffiti should come down within 24 hours of it going up, there is a truck that is equipped to clean it up. The number that can be called for Hemet is 791-3490, if you live outside the area the number is 866-383-2203, business cards were available. The public should report any graffiti and he asked anyone who believes there is a sexual registrant living where they don't belong to notify Supervisor Stone's office. He said he would be sponsoring some community cleanups in San Jacinto and Hemet. The county will pay for the trash bins and hazardous materials can also be disposed of. Supervisor Stone said he heard tonight about 2o6 Amendment rights and he is a strong advocate for it and believes in the right to bear arms for personal safety, He said this valley and the councils are his top priority and we need to work collectively as three governmental bodies and go after as many grants as possible. We need to think out of the box and make bold, courageous decisions. Hemet Mayor Youssef said it is important to know that each person on the councils live in the city that they represent. One of the biggest issues brought up tonight was to find a way to share resources between Riverside County, San Jacinto and the City of Hemet. The quality of life is not acceptable and the Valley Congress has to discuss options and make bold decisions. He said he is committed to work with Supervisor Stone and the City of San Jacinto and start discussing some of the options, He thanked his staff for all their hard work with the ROCS program. He is encouraged that each member of the Valley Congress will take a bold stand and work with the members of the community through Valley ROCS to make a difference. He urged everyone to go to the City of Hemet's website and see what the ROCS program is about and sign up to help. San Jacinto Mayor Kotyuk said he concurs with Supervisor Stone and Mayor Youssef on this. We need to partner with the City of Hemet and Riverside County to find extra capacity. While we force the bad people out of the valley we also need to partner to find ways to bring jobs and new people into the valley. We have been partnering on the Foreign Trade Zone, we will be in that zone together. This is something that we are looking at to do is imports and exports for trade. Later this year we will be in that zone. There are two ends to the budget, the bottom end where you are cutting and the top end where you need to increase your revenues. The Government and the State are not going to increase our revenues so we have to find ways to do it ourselves, PACKET PAGE: 46 Joint ay or say AGENDA ITEM 3A.4 August 21, 2012 Page 9 of 11 San Jacinto Council Member Bartel said there has been some good conversation done tonight but we need to leave here with something that is tangible, that we can attack right away. Let's start with an issue that everyone in the building has had issues with, the panhandlers. Let's go out and say "not a dime more to these people. The cards from the Kiwanis Club are a good start. Let's start handing them out and its simple. Like Jim said we need to have compassion, but the organizations have the ability to help these people if we just say no. We need to let the leaders in Sacramento know that we are not happy with the early releases of the felons. We have no control over it but we as a community need to let them know we are not happy with it. Outside on the table are each San Jacinto City Council members business card. He encouraged everyone to contact them if they have problems or questions. We are here to serve. Hemet City Council Member Smith invited everyone to come to the Hemet library at 3:30 this Thursday, August 23`d so they could get an understanding of the Hemet ROCS program. This will be the opportunity to discuss one on one with himself and Council Member Krupa any questions or concerns about the Hemet ROCS program. Get involved because this could be one of the game changers in the valley. San Jacinto Vice Mayor Miller said he is encouraged that the people in attendance this evening want to be part of the solution of making a difference in the valley. Two years ago a meeting like this would not have happened. The two flags hanging side by side show a new beginning in the valley. He sad we did not come here tonight to pacify you, we came here to partner with you and move forward. Hemet Mayor Youssef said we are committed to finding a way to share resources in the valley. There will be many meetings to see if there is a way to combine public safety in the valley. San Jacinto Mayor Kotyuk said he agreed with Mayor Youssef, we need to give staff direction to come up with the numbers to see if there is a benefit to it. He said he would like to schedule a date for a meeting to share the outcome of those meetings with the public. He suggested October e. The general consensus was to give staff direction to look at JPA efficiencies and have numbers by the last Monday in September and a meeting to be held on October 1st at 6:00 p.m, at the Hemet Public Library, San Jacinto Council Member Ledezma thanked the San Jacinto Assembly of God Church for hosting this meeting. He also thanked everyone in attendance for coming to the meeting. It shows that they care about the valley, San Jacinto Council Member Di Memmo said there are a couple of issues he would like to advise Supervisor Stone about. The county received funding for 1000 jail beds and one of the problems is the AB109 offenders. He said the probation department has an extra $9M that they have not spent and he would like to see if some of the $9M in that account can be brought to this valley to help with the public safety issues, That money PACKET PAGE: 47 AGENDA ITEM 3A.4 Joint City of San Jacinto. City of Hemet Council Minutes August 21, 2012 Page l0 of 11 is available right now. He said he believes that the Board of Supervisors should take over the monetary issues of AB109 so they would have more perspective on the hard dollars that are going out. Council Member Di Memmo said that Hemet Police Chief Dave Brown wanted a task force in the valley for the AB109 offenders. A lot of Mayors and Police Chiefs in cites in the area have signed on to help with public safety issues. He said he would like to that happen and he will do everything within Ns power to make it happen. Supervisor Stone responded that he is not aware of the probation department having an extra $9M and asked Assistant Probation Chief Mark Hake to speak about that. Mark Hake, Assistant Probation Chief said he and Council Member Di Memmo have had conversations about the AB109 population in the past. He said he believes the $9M that Council Member Di Memmo is referring to is the carry-over funding from the state allocation that has gone unspent thus far. For the first year of funding for AB109 which was a nine month period because the realignment was implemented on October 1, 2011. The state allocated approximately $21M to the County of Riverside for services, programs and custody. The legislation also established a Community Correction Partnership Executive Committee of seven members. It is chaired by the Chief Probation Officer; the other members of the committee are the Court, the District Attorney, the Sheriff, the Public Defender, Hemet Police Chief Brown representing Police Chiefs and the Director of Mental Health. That committee is responsible in developing and recommending and implementation plan to the Board of Supervisors for the realignment for the entire county. They make budget recommendations to implement the plan. Because of the short time to implement the program last year there is still staff to be hired. This year the county is allocating approximately $43M and the $9M is in addition, The committee is in the process of making recommendations to modify the plan and will eventually come to Board of Supervisors with a recommendation, Supervisor Stone said that the state estimated that the $21M that the County of Riverside received for a nine month period of time represented 1/3 of the cost that the County Probation will have to undertake. Mark Hake, Assistant Probation Chief said the funds are required to be spent on the impact of the realignment. Last year's allocation was divided among all of the executive committee partners. The committee will be making recommendations on this years allocation. San Jacinto Mayor Kotyuk said he would like staff to look at a program that was recommended by San Jacinto City Attorney Jeff Ballinger to help communities, The program is a online website where community members can submit projects in the community that need to be fixed or repaired, Community service clubs can put programs such as graffiti and clean-up programs. The community can vote on these projects of which ones they want funded. As a community we can decide what projects are priorities, where the money will come from and we can volunteer and organize ourselves to do it. PACKET PAGE: 48 Joint City af sar AGENDA ITEM MAAugust 21, 2012 Page 11 of 11 Supervisor Stone said the common theme is that the community wants to help with the efforts to clean up the community. He said when he was a councilman there was something called the Citizens Volunteer Corps. Vehicles and radios were provided for people who wanted to volunteer their time around the dock and be the eyes and the ears of the valley. There are a lot of police cars that get retired but still have a few years of life ahead of them. Those cars could be donated to Volunteer Citizens Corps for the Hemet/San Jacinto Valley. I will have a dramatic effect on the community and is a way of augmenting the cost of public safety. 4. ADJOURNMENT With no further business before the Hemet City Council and San Jacinto City Council, the meeting was adjourned at 10:40 p.m. ATTEST: Richard Miller, City Clerk City of San Jacinto Andrew F. Kotyuk, Mayor Approved as read. Approved as amended. PACKET PAGE: 49 AGENDA ITEM 3A.5 October 2, 2012 TO: The Honorable Mayor and Members of the City Council FROM: Rick Miller, City Clerk SUBJECT: Minutes of September 18, 2012 - Regular Meeting RECOMMENDATION: Staff recommends that the city council, by motion, approve the minutes of the September 18, 2012, regular meeting. ATTACHMENTS • Draft Minutes of the September 18, 2012 — Regular Meeting PACKET PAGE: 51 AGENDA ITEM 3A.5 ACTION MINUTES JOINT REGULAR MEETING OF THE SAN JACINTO CITY COUNCIL AND THE SUCCESSOR AGENCY TO THE CITY OF SAN JACINTO REDEVELOPMENT AGENCY September 18, 2012 7:00 p.m. 625 S. Pico Ave San Jacinto Community Center, San Jacinto, California 92583 1. ORGANIZATION 1.1 Call to Order Mayor Andrew Kotyuk called the regular meeting of the San Jacinto City Council and the Successor Agency to the City of San Jacinto Redevelopment Agency to order at 7:01 p.m. 1.2 Roll Call Present: Bartel, Di Memmo, Ledezma, Miller, Kotyuk Absent: None 13 Invocation Pastor Peter Edwards gave the invocation. 1.4 Pledge of Allegiance Council Member Alonzo Ledezma led the Pledge of Allegiance. 1.5 Special Presentations 1.5.1 Introduction of New Fire Chief Chief David Fulcher commented that Charlie De Hart was not available, due to a death in the family. Chief Fulcher said that working here in San Jacinto has been an extreme pleasure. 1.5.2 Presentation by Coalition for Affordable Street Lights City Engineer Habib Motlagh spoke briefly about the Coalition for Affordable Street Lights and introduced Candace Cassel from City of Moreno Valley. PACKET PAGE: 53 AGENDA ITEM 3A.5 Ms Cassel gave a brief presentation on the Coalition for Affordable Street Lights. The presentation is on file with the City Clerk's office. 2. PUBLIC COMMENTS: Howard Tounget spoke about poison that a local farmer has been putting on fields in the city. There are seven locations that the farmer needs to register but has not done it. On the applications there is no APN number, owners name or signature of approval. These locations are next to parks and there are no restrictions, Patti Drusky Hemet/San Jacinto Valley Regional Chamber of Commerce spoke about the Chamber's interest in help to rebuild the valley. A business watch program has been started and has had their first meeting at Wal-Mart with 25 to 30 people in attendance, The next meeting will be September 25, 2012 at the San Jacinto Community Center at 2:00 p.m. The Hispanic division of the Chamber has been delivering flyers to businesses. Ms Drusky distributed flyers to the council. She added that she would like to see the concept grow throughout the valley. James Pangrazzi, 408 S. Kirby St., San Jacinto spoke about issues of traffic control and commented that this is the 2n0 anniversary of the situation at Cottonwood and Kirby. In 2000, the neighbors asked the Council to work on traffic issues including traffic enforcement, Speed bumps were installed but no traffic enforcement, In 2012 Lt. Tyler provided traffic enforcement, He asked Police Chief Sue Trevino to pass on this thanks to Lt. Tyler and added that he appreciates the work Chief Trevino has done as well. 3. CONSENT CALENDAR 3A CONSENT CALENDAR — CITY COUNCIL 3A.1 Waiver of Full Reading of Ordinance(s), and Reading by Title Only / Approve / City Clerk, City Attorney 3A.2 Continuance of the Proclamation of the Local State of Emergency due to the Severe Winter Storms that began on December 17, 2010 / Approve / City Manager 3A.3 Warrants and Disbursements - August 2012 / Approve / Acting Finance Director 3A.4 Subdivision Improvement Agreement re Improvement Security (KB Home Coastal Inc.- Tract 30035 & 30034) / Approve / City Manager City Council Action Minutes September 18, 2012 Page 2 oft 3 PACKET PAGE: 54 AGENDA ITEM 3A.5 3A.5 Minutes of August 10, 2012 - Special Meeting / Approve / City Clerk 3A.6 Minutes of August 20, 2012 - Special Meeting / Approve / City Clerk 3A.7 Minutes of September 7, 2012 -Special Meeting/Approve/City Clerk 3A.8 Authorization to Advertise for Bids, Kuhns Property Lead and Asbestos Abatement (CIP #11-013) / Approve / City Engineer 3A.9 Treasurer's Report at July 31, 2012 / Approve / City Treasurer 3A.10 August 21 Valley Congress follow-up - Regional Law Enforcement / Approve / City Manager 3A.11 Approval of Purchase and Sale Agreement for Northwest Corner of Commonwealth Avenue and San Jacinto Avenue (APNs 439-112- 032, 439-112-033, 439-112-004, 008, & -009) / Approve / City Attorney, Development Director 3A.12 Approval to place a 45 day notice of public hearing for the Contract Amendment with CR&R / Approve / Assistant City Manager 3A.13 Resolution Opposing San Diego County Water Authority's Cost Shift / Approve / City Manager, City Attorney 3A.14 Letter of Support -- Community Development Block Grant Funding Levels (H.R. 5972) / Approve / Development Director 3A.15 Letters of Support -- S. 2909, S. 3047 and S. 3085 / Approve / Development Director 3A.16 Letter of Support -- Senate Bill 214 (Wolk) / Approve / Development Director 38 CONSENT CALENDAR - SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO 38.1 Approval of Purchase and Sale Agreement for the Northwest Corner of Commonwealth Avenue and San Jacinto Avenue / Approve / City Attorney, Development Director Vice Mayor Miller requested clarification on Item 38.1in regards to the location of the property. The staff report indicates the property is on the northwest corner and it should be the northeast, Mayor Kotyuk abstained from warrant numbers 102457, 102482, 102528, City Council Action Minutes September 18, 2012 Page 3 oft 3 PACKET PAGE: 55 AGENDA ITEM 3A.5 102630, 102736, 102749, and 102765 on item 3A.3. Council Member Di Memmo requested Item 3A.4 be pulled. The public requested that Items 3A.10 and 3A.11 be pulled M/S/C (Di Memmo/Miller) moved to approve the balance of the Consent Calendar. Motion carried 5/0, Ayes: Bartel, Di Memmo, Ledezma, Miller, Kotyuk Nays: None Absent: None Abstain: Kotyuk from warrant numbers102457, 102482, 102528, 102630, 102736, 102749, and 102765 on item 3A.3 3A.4 Subdivision Improvement Agreement re Improvement Security (KB Home Coastal Inc. - Tract 30035 & 30034) / Approve / City Manager City Manager Tim Hults presented the staff report saying that this is a Subdivision Improvement Agreement related to bonding improvements at KB Development (The Cove). He said KB Home is asking for consideration that land be used as a form of security. The California Subdivision Act requires that, if a subdivision improvement agreement is approved by the City, the subdivider must post security, in a form approved by the City, to ensure the full performance of that obligation to install the public improvements. He said this is not typical however it has been done in the past. The most common security is a traditional surety bond, However, the Act also permits this type of security. KB Home has proposed a long form deed of trust and assignments of rents be posted in lieu of the bonds for the "in -tract" improvements. The City would be in first position, secondary only to liens for the payment of property taxes and/or assessments. The City could foreclose and use the proceeds to install improvements if needed. M/S/C (Miller/Bartel) moved to approve Item 3A.4 as presented. Motion carried 4/1. Ayes: Bartel, Ledezma, Miller, Kotyuk Nays: Di Memmo Absent: None Abstain: None City Council Action Minutes September 18, 2012 Page 4 oft 3 PACKET PAGE: 56 AGENDA ITEM 3A.5 3A.10 August 21 Valley Congress follow-up - Regional Law Enforcement / Approve / City Manager City Manager Hults reported that this item is a follow-up to the Valley Congress meeting on August 21, 2012. Mayor Kotyuk said he spoke with the Sheriff and a higher cost would be associated with a JPA. Jim Pangrazzi, 408 S. Kirby, San Jacinto spoke against a joint venture for public safety, Item 3A.10 was received and filed 3A.11 Approval of Purchase and Sale Agreement for Northwest Comer of Commonwealth Avenue and San Jacinto Avenue (APNs 439-112-032, 439-112-033, 439-112-004, 008, & -009) / Approve / City Attorney, Development Director Development Director Sharon Paisley presented the staff report. Jim Pangrazzi, 408 S. Kirby St., San Jacinto asked what the value of the land was and how much the City would gain by the sale of the property, Development Director Paisley responded that the properties were appraised at $330,000 and $70,000 and that is the total purchase price. She introduced Mark Sandoval of Mark Development, Inc. Mark Sandoval, President, Mark Development, Inc. said he liked this site and wished to develop there because of Wal-Mart and the other retailers in the area. He added that he would do his best to bring in a sit down restaurant, Vice Mayor Miller commented that that area is a prime piece of real estate. Mayor Kotyuk said he has admired Mr, Sandoval's work and is glad to have in involved with in San Jacinto, M/S/C (Di Memmo/Ledezma) moved to approve Item 3A.11 as presented. Motion carried 5/0. Ayes: Bartel, Di Memmo, Ledezma, Miller, Kotyuk Nays: None City Council Action Minutes September 18, 2012 Page 5 oft 3 PACKET PAGE: 57 AGENDA ITEM 3A.5 Absent: None Abstain: None 4. PUBLIC HEARING 4.1 Zoning Ordinance Amendment 1-12, Ordinance No. 12-09; Ordinance temporarily suspending Urban Corridor Overlay District Site Development Principles and Standards relating to front building setback and off-street parking requirements. Applicant: City of San Jacinto / Approve / City Manager, Planning Director City Manager Hults presented the staff report. Mayor Kotyuk opened the Public Hearing at 8:15 p.m. Howard Tounget asked if there were other projects that have come before the Council such as this. Mayor Kotyuk responded there is one other project on San Jacinto Avenue, Mayor Kotyuk closed the Public Hearing at 8:17 p.m. M/S/C (Di Memmo/Ledezma) moved to approve Item 4.1 as presented. Motion carried 5/0, Ayes: Bartel, Di Memmo, Ledezma, Miller, Kotyuk Nays: None Absent: None Abstain: None 4.2 Conditional Use Permit 3-12, to establish a Banquet Hall in an existing commercial suite. The site is located on the west side of State Street, approximately 250 feet south of Seventh Street with an address of 790 S. State Street, Suite G. (APN 435-330-016) / Approve / Planning Technician, Planning Director Mayor Kotyuk asked if there might be any conflict of interest due to Best Best & Krieger representing the owner of the property in a previous matter, City Attorney Jeff Ballinger said that it was another attorney from BB&K that previously represented the Rahman's, He said he sees no issue or conflict at this time. City Council Action Minutes September 18, 2012 Page 6 of 13 PACKET PAGE: 58 AGENDA ITEM 3A.5 Planning Technician Mike Hasapes presented the staff report, On August 9, 2012 the Planning commission, by a 3-1 vote, approved a Conditional Use Permit to establish a Banquet Hall in an existing commercial suite located on the west side of State Street (790 S. State St., Suite G), The Planning Commission added a Planning Department condition requiring replacement of missing trees and improvement of any landscaping deficiencies prior to occupancy, The Commission also revised the Police Department conditions regarding security. The revisions state that the applicant may be required to utilize private security or contract with the Police Department for extra duty and provide a safety & security plan, Parking is provided for the shopping center at a rate of one space per every 250 square feet of general retail space. A total of 49 parking spaces have been provided for the center. A banquet hall requires 1 space for every 40 square feet of assembly area, Two suites will be used with an assembly area of 3,750 square feet, therefore, 93 parking spaces are required. Joint use of off-street parking facilities is authorized in the Zoning Ordinance and has been approved by the Planning Commission. Additional parking to offset the shortage will be available around the adjacent building at 718 W. 7th St. because the applicant has easements on that property. In addition there will be parking available at the shopping center on the northwest corner of State and 7th St. because the it is owned by the applicant. He said the Planning Department recommends the City Council by motion approved Conditional Use Permit 3-12. Council Member Ledezma voiced concerns about emergency exits, in case of fire. He added that he has concerns about parking regarding safety and the easements, City Manager Huffs said the Fire Code determines how many people are allowed in the building based on the exits, Council Member Bartel also voiced concerns about safety issues and people crossing on 7th St, to go back and forth, Council Member Di Memmo concurred with Council Members Bartel and Ledezma, There needs to be security and there is a safety issue with the parking, Vice Mayor Miller voiced concerns with the parking as well, some of the parking spaces are hidden on the area to the north, He had concerns with people walking across 7th St, as well. City Council Action Minutes September 18, 2012 Page 7 ofl3 PACKET PAGE: 59 AGENDA ITEM 3A.5 Mayor Kotyuk said this building was not designed for this originally. There is no infrastructure in place at this location, the corner has no sidewalk and is poorly it, It would need street fight improvements. He commented that the driveway on State St, should have left turn only in ingress and egress. Mayor Kotyuk opened the Public Hearing at 8:39 p.m. Howard Tounget spoke about the conflict of interest issues with BB&K. He also voiced concerns regarding the project meeting standards with parking and 50% frontage. He felt it did not benefit the city and was a nuisance. Jim Pangrazzi, 408 S. Kirby St, San Jacinto agreed with Mr. Tounget and also voiced concerns regarding the property owners in close proximity, Raymond Woodruff 42545 Cactus Valley, Hemet said he is the property owner on the corner. He said he has been involved in a lawsuit with the property owners. He felt that the applicant was trying to turn his property into a parking lot. He is opposed to the approval of CUP 3-12. Mayor Kotyuk closed the Public Hearing at 8:50 p.m. City Attorney Ballinger informed council that the next step, if council chooses to deny the CUP, would be to have a Resolution brought back to the next council meeting, outlining the reasons for denial of the applicant's CUP request. M/S/C (Di Memmo/Ledezma) moved to not approve CUP 3-12 and bring a Resolution to the October 2, 2010 Council meeting to show findings of denial. Motion carried 5/0. Ayes: Bartel, Di Memmo, Ledezma, Miller, Kotyuk Nays: None Absent: None Abstain: None 5. STAFF REPORTS 5.1 Statement of Investment Policy Revision / Approve / Acting Finance Director Acting Finance Director Prill presented the staff report, City Council Action Minutes September 18, 2012 Page 8 ofl3 PACKET PAGE: 60 AGENDA ITEM 3A.5 M/S/C (Di Memmo/Miller) moved to approve Item 5.1 as presented. Motion carried 5/0. Ayes: Bartel, Di Memmo, Ledezma, Miller, Kotyuk Nays: None Absent: None Abstain: None 5.2 Amendment to the Joint Powers Agreement of the Western Riverside Council of Govemments to Permit the Provision of PACE Services statewide / Approve / City Manager City Manager Hults said in 2009 the City adopted a Resolution of Participation and an Implementation Agreement that allowed for WRCOG to develop and implement a Property Assessed Clean Energy (PACE) Program. It is called the HERO Program in Western Riverside County and allows for property owners to finance energy efficiency, water conservation, and renewable energy projects and to pay that financing back through a voluntary assessment on the property owner's tax bill. Since its launch in late 2011, WRCOG's HERO Program has been very successful. The Executive Committee of the WRCOG has directed staff to expand on the success of its HERO Program and implement a Statewide HERO Program by June 2013. Staff recommends that the City Council, by motion approve the Joint Powers Agreement with the Western Riverside council of Governments to Permit the Provision of PACE Services statewide, M/S/C (Miller/Ledezma) moved to approve Item 5.2 as presented. Motion carried 5/0. Ayes: Bartel, Di Memmo, Ledezma, Miller, Kotyuk Nays: None Absent: None Abstain: None 5.3 Marine Corps. Monument at Veterans Memorial, Dmding Park / Approve / Assistant City Manager, Streets Supervisor Assistant City Manager Mike Emberton presented the staff report. He commented that Street Supervisor Barry Mulcock has been dedicated to this project since 2001. For a long time the idea was to honor the Marine Corps with a Howitzer which was not able to be done. He said they have brought three options to the Council tonight. Option 1 is an Eagle/Anchor/Globe bronze casting with a project estimate of $25,000. City Council Action Minutes September 18, 2012 Page 9 of 13 PACKET PAGE: 61 AGENDA ITEM 3A.5 Option is a M109A5 Self -Propelled Howitzer Tank with a project estimate of $35,000, Option 3 is a Bronze Life -Size Sculpture of Iwo Jima/Mt. Suribachi Rag Raising with a project estimate of $150 000 to $200,000. After a brief discussion regarding funding, lighting and security there was a consensus that Option 1 would be the most fitting and the best design to honor the Marine Corps. M/S/C (Di Memmo/Ledezma) moved to approve Option 1. Motion carried 5/0, Ayes: Bartel, Di Memmo, Ledezma, Miller, Kotyuk Nays: None Absent: None Abstain: None 5.4 Ordinance Regarding Chronic Nuisance Properties (Valley ROCS) / Discuss and Provide Possible Direction / City Manager, City Attomey City Manager Huffs spoke briefly about the Ordinance. At the July 17, 2012 meeting, the Council considered the first reading of an ordinance concerning the abatement of chronic nuisances. Several issues arose at that meeting and City staff was directed look into them, Staff was directed to check on the status of Hemet's implementation of its chronic nuisance ordinance, in order to determine what sort of staffing needs such an ordinance would call for. Staff was also asked to research the ability to create different classifications of violations. A discussion also occurred regarding calls that are placed from one property regarding another property, and who would be responsible for such calls under the proposed ordinance, Following the July 17, 2012 Council meeting the City received letters from the California Apartment Association/Apartment Associations Greater Inland Empire (CAA) and from a coalition composed of the ACLU and others which raised a number of issues. He said the letters were included the staff report. City Attorney Ballinger said after review of Hemet's Organizational Chart for their ROCS Enforcement Team it was determined that it would take 1 to 2 full time positions as well as assistance from San Jacinto's various departments to implement the proposed ordinance, Hemet has the Ordnance in place, however nothing has been implemented. The Council needs to determine if they want to move forward now, or wait until Hemet has implemented their program. If the City of San Jacinto moves forward the classifications of different violations could be done like the DMV does, on a point system. Staff could go through the municipal violations and assign points. City Council Action Minutes September 18, 2012 Page 10 or13 PACKET PAGE: 62 AGENDA ITEM 3A.5 Mayor Kotyuk said he was glad to see the input for outside agencies. He added that he likes the point system, Council Member Bartel asked Pofice Chief Trevino if there were any negative issues. Police Chief Trevino said the lack of staff for the City and the Police Department and it would be time consuming, She added that the Pofice Department's job is to enforce the law, and many of the issues in the proposed ordinance are already in the penal code. Mayor Kotyuk asked Pofice Chief Trevino if some neighborhoods were a regular stop for the officers on duty. He also asked what the highest volume of calls was at any particular residence. Pofice Chief Trevino responded that she didn't know but it could be tracked, There are neighborhoods that they pay certain attention to, She added that she is curious to see how Hemet's program gets off the ground, they hired two officers from the COPS Grant to specifically deal this this. Mayor Kotyuk called for public comments. John Christner 147 N. Kirby St., San Jacinto said he is confused. He moved here from Texas and in Texas the police officers encourage citizens to call for any disturbance. He said this ordinance appears to give the perception not to call the police if you have issues and to solve them themselves, He suggested that the Council no support this ordinance, Vice Mayor Miller said there is a miscommunication somewhere, The emphasis is not on the person calling but the person who the caller is complaining about, It was never the City's intent to discourage people from calling the police when they need to. Council Member Ledezma said the citizens are confused with this ordinance, the intent is to call, but that is not the message that is going to the citizens, Mayor Kotyuk said with the AB109 occurring there have be a rash of sever incidents, He said the City should not be in a wait mode and we need to hold owners of the property responsible for renting to those people that are causing problems. Direction was given to staff to look at other alternatives to achieve the same goals and make changes to the Ordinance and bring this back to the Council at the October 16, 2012 Council Meeting. City Council Action Minutes September 18, 2012 Page 11 or 13 PACKET PAGE: 63 AGENDA ITEM 3A.5 6. MAYOR / COUNCIL MEMBER REPORTS / DISCUSSIONS Council Member Di Memmo said he saw the Marine Corps band play at the Ramona Bowl and it was wonderful. Vice Mayor Miller said the City received the remainder of the funding for the Ramona Expressway project. He thanked City Engineer Habib Motlagh for his hard work in getting this funding. Council Member Ledezma had no report, Council Member Bartel said he attended the CASA event and the event for Habitat for Humanity. He attended the San Jacinto Chamber of Commerce luncheon and they will be putting something together regarding panhandling. Mayor Kotyuk said there is a public comment regarding the Closed Session item. Ernest Wright, 801 Calle Lagasea, Chula Vista asked the Council to respectfully consider that Mr, Gamal Badawy did everything that the City required and followed city policies. His application was turned in as well as the C of 0 and this happened before the moratorium on Hookah and Smoke shops. He asked that they treat Mr. Badawy with respect and to be fair. He asked them to put themselves in his position. He has put a substantial amount of money in this and it is not fair that he is not grandfathered in, Gamal Badawy, 151 E. Main St. San Jacinto said he went to the City to find out what is needed for his tobacco shop, He paid the inspection fees and made corrections to the building as wanted. He acquired a lease and completed the things on the fist of requirements and returned to the City. He paid for his business license on August 14th and on August 20th a moratorium was placed, Jim Pangrazzi, 408 S. Kirby, San Jacinto said he agreed that Mr. Badawy should be grandfathered in after he had done all the work required. Mayor Kotyuk recessed the regular meeting at 10:45 p.m, and reconvened in closed session at 10:50 p.m, 7. CLOSED SESSION 7A CLOSED SESSION - CITY COUNCIL CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: One (1) potential case- Claim filed by Ernest H. Wright, II, on behalf of Gamal Badawy and J&H Tobacco Plus, dated City Council Action Minutes September 18, 2012 Page 12 or 13 PACKET PAGE: 64 AGENDA ITEM 3A.5 August 27, 2012, and supplemented by letter dated September 4, 2012 No Reportable Action 7B CLOSED SESSION - SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO 8. ADJOURNMENT With no further business before the City Council, the meeting was adjourned at 11:40 p.m. ATTEST: Richard Miller, City Clerk City of San Jacinto Andrew F. Kotyuk, Mayor Approved as read: Approved as amended: City Council Action Minutes September 18, 2012 Page 13 of 13 PACKET PAGE: 65 AGENDA ITEM 3A.6 October 2, 2012 TO: The Honorable Mayor and Members of the City Council FROM: Tim Huits, City Manager SUBJECT: Appropriation of $7,000 from the Capital Reserve Fund to convert the exisithg cubicle used by the Development Director into a private office RECOMMENDATION: Staff recommends that the City Council, by motion, appropriate $7,000 from the Capital Reserve Fund in order to convert an existing cubicle to private office space. DISCUSSION Presently, the Development Director is housed in an open cubicle that affords little to no privacy. Traditionally, department heads supervise personnel and have a need for private confidential space in which to counsel or even reprimand staff, While this is rare, the need does occasionally arise, In addition, especially 'n the case of the Development Director, work on projects that have an element of confidentiality is routine. For instance, the Development Director is the primary staff position that recruits and negotiates with new businesses that may wish to remain anonymous for any number of reasons, Operating out of a cubicle has proven to be inefficient as well, as the incumbent has had to leave her space to carry on such discussions. Most often, she uses the conference room which takes that space away from the rest of staff, With conference facilities in short supply at City Hall, this has proven somewhat burdensome for scheduling. The existing systems furniture, a small clerical cubicle and the Development Director's cubicle, will be stored for future use, Staff explored the market for such furniture, and the value is minimal, essentially pennies on the dollar, It would be more cost effective to retain the furniture and use it in the future should the need arise, ALTERNATIVES Do not allocate the funds and continue to operate in the same manner. FISCAL IMPACT The budget for the conversion is estimated at $8,831. Approximately $1,800 of the cost will be covered by Fund 103, the Administration DIF, and the rest by the Capital Reserve Fund, As such, the Capital Reserve will be reduced by approximately $7,000, However, the projected year end fund balance of the Capital Reserve is $6,271,064. PACKET PAGE: 67 AGENDA ITEM 3A.7 October 2,2012 TO: The Honorable Mayor and Members of the City Council FROM: Habib Motlagh, City Engineer SUBJECT: Award of Contract for Ramona Expressway and San Jacinto Ave Interim Sidewalk Project (CIP 11-007) RECOMMENDATION: Staff recommends that the City Council, by motion: • Award the contract for the Ramona Expressway and San Jacinto Ave Sidewalk Project (CIP 11-007) to Mamco, Inc. in the amount of $92,000; • Allocate funds for the construction as outlined in the staff report; • Authorize the City Manager to execute the public works contract; • Direct the City Clerk to reject all other bids. DISCUSSION: On September 24, the City Clerk opened bids for the Ramona Expressway and San Jacinto Ave Sidewalk Project (CIP 11-007). A total of nine bids were received, and they are summarized in an attachment to this report. The low bidder was Mamco, Inc. of Riverside, in the amount of $92,000, This bid was lower than the engineer's estimate of $130,000. The City Engineer's office has worked with Mamco in the past, and we have found them to be challenging but productive and capable to complete this project. This project will build sidewalk on Ramona Expressway from San Jacinto Avenue westerly to join into the existing path on the south side of the road near Eagle. It will also build new sidewalk on the west side of San Jacinto Avenue starting at Ramona Expressway to join into the existing sidewalk a few hundred feet to the south, The contract has a short duration, with a mandatory start of construction of October 15. Work will thus be complete prior to the Thanksgiving holiday. Per the project specifications, the Contractor will not be allowed to install any full Zane closures — atthough lanes may need to be shifted or narrowed to allow for work to occur. The project should have a minimal impact on local traffic, ALTERNATIVES' Approval: Award the contract to Mamco as presented. Denial: Do not approve the contract, and provide staff with further direction. PACKET PAGE: 69 AGENDA ITEM 3A.7 FISCAL IMPACT: The cost for the project is broken down as follows: • Bid Amount: $92,000 • 20% contingency: $20,000 • Soft costs: $18,000 Total construction cost: $130,000 The available funding for the sidewalk work is approximately $190,000 per the approved 2012-13 budget including $40,000 RCTC SB-821 Grant. The funding source is Measure A money. As such, the project is fully funded and no special budgetary action by the Council is necessary. ATTACHMENTS: ■ Summary of bids received on 9-24-12 PACKET PAGE: 70 AGENDA ITEM 3A.7 RAMONA EXPRESSWAY SIDEWALK (West of San Jacinto Ave) PROJECT BID OPENING Bid Results Bid Opening: September 24, 2012 @ 2:00 p.m. Bidder Name Bid Amount Bond TED ENTERPRISES, INC. Y%33,LS4---- SEAN MALEK ENG. & CONST. ✓ J/ 7 a , 7 so- = FRONTLINE ENG. = r 31l27.,S-3 MAMCO, INC. -' d 92., e. • JDC, INC Viz 4,3s __ ,_,i LANDMARK SITE CONTRACTORS v"l .0 z.ii ---- NEEK, LLC 1//4,z9? r= HILLCREST CONTRACTING 4 oz, 3/' / STI, INC -� 9%5-47' -" E. AGENDA ITEM 3A.8 TO: October 2, 2012 The Honorable Mayor and Members of the City Council FROM: Asher hartel, Planning Director Mike Hasapes, Assistant Planner SUBJECT: Adoption of Ordinance No, 12-09 (Zoning Ordinance Amendment 1-12); Ordinance temporarily suspending Urban Corridor Overlay District Site Development Principles and Standards relating to front building setback and off-street parking requirements. RECOMMENDATION: Staff recommends that the City Council, by motion, adopt Ordinance No. 12-09, approving Zoning Ordinance Amendment 01-12 in the form submitted by the Planning Commission, and by further motion read by title only. An Ordinance of the City Council of the City of San Jacinto temporarily suspending the operation of Section 14A.05, subsections 2 and 9 of the San Jacinto Urban Corridor Overlay Ordinance. DISCUSSION: On September 18, 2012, the City Council approved the introduction and the first reading, by a 5-0 vote, of Ordinance 12-09 for Zoning Ordinance Amendment 1-12. The action included a provision that within two (2) years of adoption, the Ordinance will be reviewed by the Planning Commission and City Council to determine whether the continued suspension of Subsections 2 and 9 of Section 14A.05 is appropriate. BUDGETARY IMPACT: The Zoning Ordinance Amendment could result in new retail development which would generate additional sales tax revenue. ATTACHMENTS: • Ordinance 12-09 • Urban Corridor Overlay Map PACKET PAGE: 73 AGENDA ITEM 3A.8 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) ORDINANCE NO. 12-09 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO TEMPORARILY SUSPENDING THE OPERATION OF SECTION 14A.05, SUBSECTIONS 2 AND 9 OF THE SAN JACINTO URBAN CORRIDOR OVERLAY ORDINANCE; FILE CASE NO. ZONING ORDINANCE AMENDMENT 1-12. WHEREAS, the City Council ("City Council") of the City of San Jacinto ("City") is authorized, pursuant to Article 11, Section 7 of the California Constitution, to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and WHEREAS, the City Council is authorized by the Government Code section 65850 to regulate the location, height, bulk, number of stories, and size of buildings and structures, the size and use of lots, yards, courts, and other open spaces, the percentage of a lot which may be occupied by a building or structure, establish requirements for off-street parking and loading, and establish and maintain building setback lines; and WHEREAS, the City Council finds that subsections 2 and 9 of Section 14A.05 of the San Jacinto Zoning Ordinance, relating to off-street parking, inhibits or may have the tendency to inhibit economic development and therefore should be temporarily suspended during this time of extreme economic distress; and WHEREAS, this ordinance is consistent with the City's adopted General Plan, as follows: • Land Use Goal 7: Capitalize on the City's many economic development opportunities to promote a strong and economically healthy community. This ordinance helps ensure a strong and economically healthy community by temporarily suspending a zoning provision that may tend to inhibit commercial development within the City. • Land Use Policy 7,1: Promote the economic stability of the San Jacinto Area by encouraging diversification of the City's commercial and industrial base by: Encouraging a variety of industries to locate in San Jacinto, including retail, high technology, manufacturing, and professional services in order to promote the development of a mixed economic base. This ordinance promotes economic stability by encouraging retail, high technology, manufacturing and professional services, by PACKET PAGE: 75 AGENDA ITEM 3A.8 temporarily suspending a zoning provision that may tend to inhibit such development within the City. • Land Use Policy LU-2: Attract Revenue and Employment Generating Uses— Use the City's website, regional Chambers of Commerce, trade publications, and other appropriate sources to promote San Jacinto's development opportunities. Make economic development and business surveys readily available to businesses and developers looking to locate their projects in Riverside County. This ordinance helps attract revenue and employment generating uses by temporarily suspending a zoning provision that may tend to inhibit commercial development within the City; and WHEREAS, the Planning Commission conducted a duly noticed public hearing, at which it considered this ordnance, and recommended adoption of this ordinance; and WHEREAS, the City Council thereafter conducted a duly noticed public hearing, at which time it considered this ordinance; and WHEREAS, all other prerequisites to the adoption of this ordinance have occurred, THE CITY COUNCIL OF THE CITY OF SAN JACINTO DOES HEREBY ORDAIN AS FOLLOWS: Section 1: The recitals set forth above are true and correct and are incorporated herein and made an operative part of this ordinance as though fully set forth herein. Section 2: Based on the above findings and recitals, the City Council temporarily suspends the application of Subsections 2 and 9 of Section 14A.05, which is attached hereto as Exhibit "A" and incorporated by reference herein. Subsections 2 and 9 of Section 14A.05 shall not be applicable to any development project for which a complete application for development was submitted to the City after July 17, 2012, The City Council may make Subsections 2 and 9 of Section 14A.05 applicable in the future by adopting an ordinance in the same manner as this ordnance was adopted. Section 3: Staff shall, within two (2) years of adoption of this Ordinance, bring forward for reconsideration by the Planning Commission and City Council the continued suspension of Subsections 2 and 9 of Section 14A.05. Section 4: The City Council finds that this ordinance is not subject to the California Environmental Quality Act ('CEQA') pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section PACKET PAGE: 76 AGENDA ITEM 3A.8 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 5: This ordinance shall take effect and be in full force on the 30th day from and after its second reading. Section 6: The City clerk shall certify the adoption of this ordinance. MOVED, PASSED, AND ADOPTED at a regular meeting of the City Council on day of 2012, by the following vote: Ayes: Nays: Absent: Abstain: ATTEST: Richard Miller, City Clerk City of San Jacinto Andrew Kotyuk, Mayor PACKET PAGE: 77 AGENDA ITEM 3A.8 EXHIBIT "A" Building Placement and Off-street Parking Language to be Suspended Zoning Ordinance, Section 14A.05(2): "Buildings should face the street. At least 50% of the front ground level facade of the building must be located at the front setback line required by the underlying zone". Zoning Ordinance, Section 14A.05(9): "Off-street parking should be located to the side or rear of the building(s); no parking shall be located between the front elevation of a building and a public street or in the required front or street side yard setback". PACKET PAGE: 78 AGENDA ITEM 3A.8 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO ) I, Richard Miller, hereby certify that the foregoing is a true copy of Ordinance No. , introduced at a regular meeting held , 2012 and duly adopted by the City Council of the City of San Jacinto, California on the same date. WITNESS my hand and official seal of the City of San Jacinto this day of , 2012. Richard Miller, City Clerk PACKET PAGE: 79 AGENDA ITEM 3A.8 Urban Corridor Overlay District City of San Jacinto Community Development Department 41 5 PACKET PAGE: 81 AGENDA ITEM 3A.9 October 2, 2012 TO: The Honorable Mayor and Members of the City Council FROM: Sharon Paisley, Development Director SUBJECT: Supplemental Agreement for the Use of Community Development Block Grant Funds for Program Year 2012-2013 RECOMMENDATION: That the City Council, by motion: 1) Approve and adopt Resolution No. 3442 approving the Supplemental Agreement with the County of Riverside for the Use of Community Development Block Grant Funds for Program year 2012-2013; and 2) Approve and authorize the Mayor to execute the Supplemental Agreement; and 3) Authorize and direct City staff to file a Notice of Exemption with the Clerk of the Board of Supervisors of the County of Riverside, California, within five (5) working days following the date of adoption of Resolution No, 3442. BACKGROUND: The CDBG Program brings federal dollars to local communities for the purpose of assisting low and moderate income residents through public services, infrastructure improvements, economic development programs, and the elimination of slums and blight. Funds are allocated through a complex formula based in part on total population and the total number of low and moderate income households within each participating city, To be eligible for CDBG funding, a program or project must meet at least one of the three national objectives: • Activities benefitting low and moderate income persons/households • Activities which aid in the prevention or elimination of slums or blight • Activities designated to meet community needs having a particular urgency Programs and/or projects must also meet the eligibility requirements of the Riverside County Economic Development Agency's CDBG program, through which the City of San Jacinto receives its annual funding allocation. While the CDBG program allows for funding of Public Services, the Program does not require that any specific amount of funds be utilized for Public Services Programs. However, it does not allow more than 15% of the total allocation to be utilized for Public Service Programs with the balance of funds being allocated to public facilities and economic development programs. On the PACKET PAGE: 83 AGENDA ITEM 3A.9 other hand, the CDBG program does allow local jurisdictions to utilize 100% of their allocation for public facilities projects at the discretion of the local governing board. In past years, the City has spfit its CDBG allocation between public service programs and public facilities projects and Code Enforcement. Over the years, the City's allocation of CDBG funds has been steadily reduced due to the decline in the total amount of funds available to the CDBG Program nationally. In 2007, the City Council requested that Riverside County Economic Development Agency allow the City to utilize its available funds over a two-year period for a single project. That project provided curbs, gutters and sidewalks throughout the downtown area. The two-year allocation, in the amount of $371,947 was utilized for a single project throughout the downtown area, and was matched by over $1 million in other federal and non-federal funds. Those funds provided curbs, gutters and sidewalks and new pavement to many streets within the target census tracts. Because the amount of funding was relatively small, the City submitted another multi- year application to the County for years 2009-10, 2010-11 and 2011-12 to concentrate funds for public facilities that would benefit the downtown census tracts. Because there were many streets in the older neighborhoods with inadequate curbs, gutters and sidewalks, the County approved another multi -year CDBG allocation of $500,000, that was matched by $1 million in non -housing Redevelopment funds. The City Engineer estimates that it would cost approximately $1 million to complete substantial rehabilitation and replacement of pavement rehabilitation/replacement and construction of minor sidewalk improvements in the CDBG eligible areas. DISCUSSION: On July 19, 2011, the City Council approved a Cooperation Agreement with the County of Riverside for the Use of Community Development Block Grant Funds for Program Years 2012-13, 2013-14 and 2014-15. Thereafter, on November 1, 2011, the City Council authorized staff to submit an application to the Riverside County Economic Development Agency (EDA) for a three- year Community Development Block Grant (CDBG) allocation for street improvements consisting of substantial pavement rehabilitation as well as minor curb, gutter and sidewalk improvements. As in prior years, matching funds are required. In light of the elimination of Redevelopment, it was recommended that the matching funds be provided through Measure A or other available sources. On December 15, 2011, the City submitted a request for a three-year funding allocation for the proposed 2012 Street Improvement Project consisting of the following: 1) Substantial Pavement Rehabilitation will include grinding, overlay, striping and minor curb/gutter and sidewalk improvements. It is anticipated that this component will require approximately 4,000 tons of asphalt. The project area is PACKET PAGE: 84 AGENDA ITEM 3A.9 generally bounded by Camino Los Banos on the east, San Jacinto Avenue on the west, Main Street to the north and Shaver Street to the south, and 180 residential units will benefit from the improvements. The estimated cost is $360,000. 2) Minor Sidewalk Curb and Driveway Improvements will upgrade 22 driveways and approaches and will complete the improvements on the recently resurfaced portion of Main Street between Pico Avenue and De Anza Drive. The estimated cost is $110,000. The total cost of the street improvements is estimated at $470 000 The City requested a three-year, $420,000 allocation of CDBG funds with a $50,000 match to be provided by the City through Measure A or other funds. Subsequently, on January 9, 2012, the City Council considered Public Safety Subcommittee recommendations and approved additional Code Enforcement, among other items. Because there are no other sources of funding available for Code Enforcement, a request was submitted on January 28, 2012 to the Riverside County Economic Development Agency requesting an amendment to the City's CDBG by replacing one of the street improvement projects (Item #2 above) with Targeted Code Enforcement Activity within targeted census tracts in the downtown area. The County EDA awarded a three-year allocation, including $189,358 more than requested, The Supplemental Agreement will cover three program years (i.e, 2012-13, 2013-14 and 2014-15). If approved and executed, the Supplemental Agreement will allow the City to utilize $609,358 in CDBG funding of which $203,179 will be applied to Targeted Code Enforcement and $406,358 will be applied to the San Jacinto Downtown Street Improvement Project. Approving the Supplemental Agreement would allow the City to utilize federal funds for targeting code enforcement efforts and to construct necessary street improvements within the CDBG target Census Tracts. The City will be able to apply again for CDBG funds in 2015-16. ALTERNATIVES: 1) Approve the Supplemental Agreement as presented. Staff recommends this alternative as it allows the City to utilize three years' allocation on specific street improvements and targeted code enforcement. 2) Not approve the Supplemental Agreement. Staff does not recommend this alternative as not approving the Supplemental Agreement will result in the loss of multi -year advanced funding. CDBG funds would then only be made available to the City on an annual basis. PACKET PAGE: 85 AGENDA ITEM 3A.9 FISCAL IMPACT: CDBG funding in the amount of $702,716 was adopted in the 2012-13 Budget, with $203,179 for Code Enforcement activity and $499,537 for CIP #13-002. As a result of the known funding and matching funds, the affected accounts will be: #029-8662-410.50-10 #199-0000-399.50-11 #199-9999-425.40-01 #13-002 $ (93,179) $ (93,179) $ (93,179) The Measure A matching funds are available in CIP #11-006 Downtown Street Improvements, currently budgeted at $1 million. ATTACHMENTS: • Resolution No. 3442 • Supplemental Agreement for the Use of Community Development Block Grant Funds PACKET PAGE: 86 AGENDA ITEM 3A.9 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss CITY OF SAN JACINTO ) RESOLUTION NO. 3442 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO APPROVING THE SUPPLEMENTAL AGREEMENT BETWEEN THE CITY OF SAN JACINTO AND THE COUNTY OF RIVERSIDE FOR THE USE OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR PROGRAM YEAR 2012-2013 WHEREAS, the County of Riverside ("County") has applied for and qualified as a Urban County for the Community Development Block Grant ("CDBG") program (the "Program") in accordance with 42 U.S.C. § 5302(a)(6) and 24 CFR 570.307 of the CDBG regulations; and WHEREAS, the purpose of the Program is to provide participating Urban Counties with federal CDBG program funding for use in the provision and expansion of decent, affordable housing and economic opportunities for persons of low and moderate income; and WHEREAS, the City of San Jacinto ("City") desires to participate in the Program and receive Program funds for Program year 2012-2013 for the purposes of assisting and undertaking essential community development and housing assistance activities, specifically for targeted code enforcement and street improvements; and WHEREAS, in order for the City to participate in the Program as a participating unit of general local government under the County's Urban County designation, the City must enter into a cooperation agreement with the County; and WHEREAS, the City and the County have executed a cooperation agreement, dated July 19, 2011 (the "Agreement"); and WHEREAS, the City and County now desire to amend the Agreement by entering into a supplemental agreement (the "Supplemental Agreement") for Program year 2012-2013 for the purpose of allowing the City's utilization of additional Program funds totaling up to two hundred three thousand one hundred seventy nine dollars ($203,179) for targeted code enforcement and up to four hundred six thousand three hundred fifty eight dollars ($406,358) for street improvements, for a total of up to six hundred nine thousand five hundred thirty seven dollars ($609,537), as specifically identified in the Supplemental Agreement; and WHEREAS, the City finds that the Supplemental Agreement with the County is in the best interest of the City and is consistent with the public health, safety and welfare. NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the City Council of the City of San Jacinto as follows: Paoe 1 of 4 PACKET PAGE: 87 AGENDA ITEM 3A.9 SECTION 1, SECTION 2, SECTION 3, SECTION 4, SECTION 5, Consent to City Participation in Urban County Designation. The City Council hereby consents to the City's participation in the Program, and elects to participate in the County's Urban County designation for the Program. Approval of Supplemental Agreement. The City Council hereby approves the Supplemental Agreement attached hereto as Exhibit "A" and authorizes and directs the Mayor to execute the Supplemental Agreement on behalf of the City. Further Acts. The City Council hereby authorizes and directs the City Manager to take such further actions and execute such other documents as may be necessary or appropriate in administering the actions authorized by this Resolution. CEQA Compliance. The City Council hereby finds that approval of the Supplemental Agreement is exempt from the requirements of the California Environmental Quality Act ("CEQA"), pursuant to State CEQA Guidelines Section 15378. The Supplemental Agreement is a government funding mechanism, and does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment. Notice of Exemption. The City hereby authorizes and directs that a Notice of Exemption shall be filed with the Clerk of the Board of Supervisors of the County of Riverside, California, within five (5) working days following the date of adoption of this Resolution. SECTION 6. Effective Date. This Resolution shall take effect immediately upon its adoption. [SIGNATURES ON FOLLOWING PAGE] Paae 2 of 4 PACKET PAGE: 88 AGENDA ITEM 3A.9 ADOPTED, SIGNED AND APPROVED this 2nd day of October, 2012, by the following vote: Ayes: Nays: Absent: Abstain: City of San Jacinto By: Andrew Kotyuk, Mayor ATTEST: Acting City Clerk APPROVED AS TO FORM: City Attorney, City of San Jacinto Best, Best & Krieger, LLP. Paae 3 of 4 PACKET PAGE: 89 AGENDA ITEM 3A.9 EXHIBIT "A" SUPPLEMENTAL AGREEMENT [Attached behind this page] Paae 4 of 4 PACKET PAGE: 90 AGENDA ITEM 3A.9 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 File No.: 3.SJ.01-12 and 3.SJ.02-12 SUPPLEMENTAL AGREEMENT FOR THE USE OF 2012-2013 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS The COUNTY OF RIVERSIDE of the State of California, herein called, "COUNTY," and the CITY OF SAN JACINTO, herein called "CITY," mutually agree as follows: 1. GENERAL. COUNTY and CITY have executed a Cooperation Agreement, dated July 2011, whereby CITY elected to participate with COUNTY, which has qualified as an "Urban County" for purposes of receiving Community Development Block Grant (CDBG) funds, and to assist and undertake essential community development and housing assistance activities pursuant to the Housing and Community Development Act of 1974, Title 1, as amended, Public Law 93-383 hereinafter referred to as "Act". Said Cooperation Agreement, dated July 201 1, is incorporated herein by reference and made a part of this Agreement as if each and every provision was set forth herein. 2. PURPOSE. CITY promises and agrees to undertake and assist with the community development activities, within its jurisdiction, by utilizing the sum of S609,537 CDBG Entitlement Funds, as specifically identified in Exhibits A and B are attached hereto and by this reference are incorporated herein, for the projects: A. 3.SJ.01-12 Targeted Code Enforcement, S203,179 B. 3.5102-12 San Jacinto Downtown Street Improvement Project $406,358 3. TERM OF AGREEMENT. The term of this Agreement for the projects shall be for a period of one (I) year from July 1, 2012 to June 30, 2013, and proceed consistent with the completion schedule set forth in Exhibits A and B. In the event that the projects are not substantially completed by the time set forth in the completion schedule due to unforeseen or uncontrollable causes, the COUNTY may consider extending the schedule for the completion of the project. Times of performance for other activities may also be extended in writing by COUNTY. If substantial progress toward completion in conformance with the completion PACKET PAGE: 91 AGENDA ITEM 3A.9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 schedule, as determined by COUNTY, of the projects are not made during the term of the Supplemental Agreement, COUNTY may suspend or terminate this agreement by the procedures set forth in the Section titled "Termination", of this agreement and the entitlement funds associated with the projects may be reprogrammed by COUNTY after appropriate notice is given. 4. DISPOSITION OF FUNDS. A. COUNTY's Board of Supervisors shall determine the final disposition and distribution of all funds received by COUNTY under the Act consistent with the provisions of Paragraphs 2 and 3 of this Agreement. COUNTY, through its Economic Development Agency, shall: (1) Make payment of the grant funds to CITY as designated in Exhibits A and B; and (2) It is the CITY's responsibility to monitor all project activities of Exhibits A and B to ensure compliance with applicable federal regulations and the terms of this Agreement. B. CITY shall comply with timely drawdown of CDBG funds by expeditiously implementing and completing County -approved, CDBG-funded projects. CITY acknowledges that CITY's drawdown performance directly impacts the COUNTY's overall program drawdown rate. If the CITY's unobligated CDBG fund balance, as of January 15, 2013, exceeds two-times (200%) the CITY's 2012-2013 CDBG allocation, the COUNTY may take the necessary administrative actions to reduce the CITY's CDBG fund balance. Necessary actions include reprogramming the excess CDBG fund balance to other eligible activities as selected by COUNTY. COUTY may authorize CITY in writing, prior to January 15, 2013, to exceed the CDBG fund balance requirement. C. CITY shall comply with timely drawdown of funds by submitting monthly requests for reimbursement or other County -approved reimbursement schedule. All disbursements of grant funds will be on a reimbursement basis and made within thirty (30) days after the CITY has submitted its letter identifying payments and documentation supporting expenditures. D. All authorized obligations incurred in the performance of the Agreement PACKET PAGE: 92 AGENDA ITEM 3A.9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 for projects eligible under the following regulations must be reported to COUNTY no later than by June 15, 2013: 1. Public Services [24 CFR 570.201 (e)] 2. Acquisition [24 CFR 570.201 (a)] 3. Clearance Activities [24 CFR 570.201 (d)] 4. interim Assistance [24 CFR 570.201 (f)] 5. Code Enforcement [24 CFR 570.202 (c)] All other eligible activities under this Agreement must be implemented, completed, and obligations reported by the CITY no later than the completion schedules set forth in the Exhibits to this Agreement. 5. COOPERATION WITH HOUSING ACTIVITIES. CITY shall cooperate with COUNTY in undertaking essential community development and housing assistance activities, specifically urban renewal and public assistance housing, and shall assist COUNTY in carrying out its Strategic Plan of the Consolidated Plan and other requirements of the Community Development Block Grant Program. 6 LEAD AGENCY FOR COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). Pursuant to Section 15051(d) of Title 14 of the California Administrative Code, COPY is designated as the lead agency for the projects that are the subject matter of this Agreement. 7. HOLD HARMLESS AND INDEMNIFICATION. In contemplation of the provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Section 895 of the Code, the Parties hereto, pursuant to the authorization contained in Section 895.4 and 895.6 of the Code, agree that each Party shall be liable for any damages including, but not limited to, claims, demands, losses, liabilities, costs and expenses including reasonable attorneys fees, resulting from the negligent or wrongful acts or omissions of their employees or agents in the performance of this Agreement, and each Party shall indemnify, PACKET PAGE: 93 AGENDA ITEM 3A.9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 defend and hold harmless the other Parties from such claims, demands, damages, losses or liabilities for their negligence 8. INSURANCE. Without limiting or diminishing the CITY'S obligation to indemnify or hold the COUNTY harmless, CITY shall procure and maintain or cause to be maintained, at its sole cost and expense, the following insurance coverage's during the term of this Agreement, A. Workers' Compensation: If the CITY has employees as defined by the State of Califomia, the CITY shall maintain statutory Workers' Compensation Insurance (Coverage A) as prescribed by the laws of the State of California. Policy shall include Employers' Liability (Coverage B) including Occupational Disease with limits not less than $1,000,000 per person per accident. The policy shall be endorsed to waive subrogation in favor of The County of Riverside, and, if applicable, to provide a Borrowed Servant/Altemate Employer Endorsement. B. Commercial General Liability: Commercial General Liability insurance coverage, including but not limited to, premises liability, contractual liability, products and completed operations liability, personal and advertising injury, and cross liability coverage, covering claims which may arise from or out of CITY 'S performance of its obligations hereunder. Policy shall name the County of Riverside, its Agencies, Districts, Special Districts, and Departments, their respective directors, officers, Board of Supervisors, employees, elected or appointed officials, agents or representatives as Additional Insureds. Policy's limit of liability shall not be less than $1,000,000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two (2) times the occurrence limit. C. Vehicle Liability: If vehicles or mobile equipment are used in the performance of the obligations under this Agreement, then CITY shall maintain liability insurance for all owned, non -owned or hired PACKET PAGE: 94 AGENDA ITEM 3A.9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 vehicles so used in an amount not less than $1,000,000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two (2) times the occurrence limit. Policy shall name the County of Riverside, its Agencies, Districts, Special Districts, and Departments, their respective directors, officers, Board of Supervisors, employees, elected or appointed officials, agents or representatives as Additional Insureds. D. General Insurance Provisions - All lines: 1) Any insurance easier providing insurance coverage hereunder shall be admitted to the State of California and have an A M BEST rating of not less than A: VIII (A:8) unless such requirements are waived, in writing, by the County Risk Manager. If the County's Risk Manager waives a requirement for a particular insurer such waiver is only valid for that specific insurer and only for one policy term. 2) The CITY'S insurance carrier(s) must declare its insurance self - insured retentions. If such self -insured retentions exceed $500,000 per occurrence such retentions shall have the prior written consent of the County Risk Manager before the commencement of operations under this Agreement. Upon notification of self insured retention unacceptable to the COUNTY, and at the election of the Country's Risk Manager, CITY 'S carriers shall either; 1) reduce or eliminate such self -insured retention as respects this Agreement with the COUNTY, or 2) procure a bond which guarantees payment of losses and related investigations, claims administration, and defense costs and expenses. 3) CITY shall cause CITY'S insurance carrier(s) to furnish the County of Riverside with either 1) a properly executed original Certificate(s) of Insurance and certified original copies of Endorsements effecting coverage as required herein, and 2) if requested to do so orally or in writing by the County Risk Manager, provide original Certified copies of policies including all Endorsements and all attachments thereto, showing such insurance is in full force and effect. Further, said Certificate(s) and policies of insurance shall contain [he covenant of the insurance carrier(s) that thirty (30) days written notice shall be given PACKET PAGE: 95 AGENDA ITEM 3A.9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 to the County of Riverside prior to any material modification, cancellation, expiration or reduction in coverage of such insurance. In the event of a material modification, cancellation, expiration, or reduction in coverage, this Agreement shall terminate forthwith, unless the County of Riverside receives, prior to such effective date, another properly executed original Certificate of Insurance and original copies of endorsements or certified original policies, including all endorsements and attachments thereto evidencing coverage s set forth herein and the insurance required herein is in full force and effect. CITY shall not commence operations until the COUNTY has been furnished original Certificate (s) of Insurance and certified original copies of endorsements and if requested, certified original policies of insurance including all endorsements and any and all other attachments as required in this Section. An individual authorized by the insurance carrier to do so on its behalf shall sign the original endorsements for each policy and the Certificate of Insurance. 4) It is understood and agreed to by the parties hereto that the CITY'S insurance shall he construed as primary insurance, and the COUNTY'S insurance and/or deductibles and/or self -insured retention's or self -insured programs shall not be construed as contributory. 5) If, during the term of this Agreement or any extension thereof, there is a material change in the scope of services; or, there is a material change in the equipment to be used in the performance of the scope of work which will add additional exposures (such as the use of aircraft, watercraft, cranes, etc.); or. the term of this Agreement, including any extensions thereof, exceeds five (5) years the COUNTY reserves the right to adjust the types of insurance required under this Agreement and the monetary limits of liability for the insurance coverage's currently required herein, it in the County Risk Manager's reasonable judgment, the amount or type of insurance carried by the CITY has become inadequate. 6) CITY shall pass down the insurance obligations contained herein to all tiers of subcontractors working under this Agreement. 7) The insurance requirements contained in this Agreement may be PACKET PAGE: 96 AGENDA ITEM 3A.9 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 met with a program(s) of self-insurance acceptable to the COUNTY. 8) CITY agrees to notify COUNTY of any claim by a third party or any incident or event that may give rise to a claim arising from the perfonnance of this Agreement. 9. RECORDS AND INSPECTIONS. A. CITY shall establish and maintain records in accordance with 24 CFR Part 570, Part 85, OMB Circular A-87, A-I33 and 24 CFR 91.105, as applicable, and as they relate to the acceptance and use of federal funds under this Agreement. B. CITY shall obtain an external audit in accordance with the U.S. Department of Housing and Urban Development single audit regulations (24 CFR Part 44.6). Audits shall usually be performed annually but not Less frequently than every two years. Nonprofit institutions and government agencies that expend less than 8500,000 a year in Federal awards are exempt from Federal audit requirements, but records must be available for review by appropriate officials of the Federal grantor agency or subgranting entity. The audit report shall he submitted to the COUNTY within 180 days after the end of the COUNTYS fiscal year. C. CITY shall maintain a separate account for CDBG Entitlement funds received as set forth in Exhibits (A and B). D. CITY shall, during the normal business hours, make available to COUNTY, the U.S. Department of Housing and Urban Development (TIUD), or other authorized representative, for the examination and copying, all of its records and other materials with respect to matters covered by this Agreement. E. CITY shall not retain any program income as defined in Section 570.500 of Title 24 of the Federal Code of Regulations. Said program income shall be used only for the activities that are the subject of this Agreement. Further, all provisions of this Agreement shall apply to such activities. F. The CITY shall ensure that at least fifty-one percent (51%) of the persons PACKET PAGE: 97 AGENDA ITEM 3A.9 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 benefiting from all CDBG-funded activities or projects designated as serving limited clientele [570208(a)(2)(i)] are of low and moderate -income and meet the program income guidelines attached as Exhibits (A and B). The CITY and City's Sub -recipients must provide the required income certification and direct benefit documentation 10. COMPLIANCE WITH LAWS. CITY shall comply with all applicable federal, state, and local laws, regulations, and ordinances and any amendments thereto and the federal regulations and guidelines now or hereafter enacted pursuant to the Act. More particularly, CITY is to comply with those regulations found in Part 85 and Part 570 of Title 24 of the Code of Federal Regulations. CITY is to comply with OMB Circular A-87, or any subsequent replacement. CITY is to abide by the provisions of the Community Development Block Grant Manual, prepared by COUNTY and cited in the above -mentioned Cooperation Agreement. CITY will comply with Section 3 of the Housing & Urban Development Act of 1968, as amended, attached hereto as Exhibit "S". CITY will comply with the provisions of 24 CFR Part 570.200 O, attached as Exhibit "R," pertaining to inherently religious activities. 11. INDEPENDENT CONTRACTOR. CITY and its agents, servants, and employees shall act at all times in an independent capacity during the term of this Agreement, and shall not act as, shall not be, nor shall they in any manner be construed to be agents, officers, or employees of the COUNTY. 12. TERMINATION. A. CITY. CITY may not terminate this Agreement except upon express written consent of COUNTY. B. COUNTY. Notwithstanding the provisions of Paragraph 12a, COUNTY may suspend or terminate this Agreement upon a thirty (30) day written notice to CITY of action being taken and the reason for such action: (I) In the event CITY fails to perform the covenants herein contained at such times and in such manner as provided in this Agreement; and (2) In the event there is a conflict with any federal, state or local law, PACKET PAGE: 98 AGENDA ITEM 3A.9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 I8 19 20 21 22 23 24 25 26 27 28 ordinance, re untenable; or on or rule rendering any of the provisions of this Agreement invalid or (3) In the event the funding from the Department of Housing and Urban Development referred to in Paragraphs 1 and 2 above is terminated or otherwise becomes unavailable. C. Upon suspension of this Agreement, CITY agrees to return any unencumbered funds which it has been provided by COUNTY. In accepting said funds, COUNTY does not waive any claim or cause of action it may have against CITY for breach of this Agreement. D. Reversion of Assets Upon expiration of this Agreement, the CITY shall transfer to the COUNTY any CDBG funds on hand at the time of expiration of the Agreement as well as any accounts receivable held by CITY which are attributable to the use of CDBG funds awarded pursuant to this Agreement. 2. Any real property under the CITY'S control that was acquired or improved in whole or in part with CDBG funds (including CDBG funds provided to the SPONSOR in the form of a loan) in excess of $25,000 is either: (i) Used to meet one of the National Objectives in Sec. 570.208 until five years after expiration of this agreement, or for such longer period of time as determined to be appropriate by the COUNTY; or (ii) Not used in accordance with Section (i) above, in which event the SPONSOR shall pay to the COUNTY an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of, or improvement to, the property. 13. NONDISCRIMINATION. CITY shall abide by Sections 570.601 and 570.602 of Title 24 of the Federal Code of Regulations which requires that no person in the United States shall on the grounds of race, color, national origin, or sex, be excluded from participation in, be PACKET PAGE: 99 AGENDA ITEM 3A.9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with Community Development funds. 14. PROHIBITION AGAINST CONFLICTS OF INTEREST A. CITY and its assigns, employees, agents, consultants, officers and elected and appointed officials shall become familiar with and shall comply with the CDBG regulations prohibiting conflicts of interest contained in 24 CFR 570.611, attached hereto as Exhibit "Cl" and by this reference incorporated herein. B. CITY and as assigns, employees, agents, consultants, officers, and elected and appointed officials shall become familiar with and shall comply with Section A-I1 of the County's CDBG Policy manual, attached hereto as Exhibit "Cl" and by this reference incorporated herein. C. CITY understands and agrees that no waiver of exception can be granted to the prohibition against conflict of interest except upon written approval of HUD pursuant to 24 CFR 570.611 (d). Any request by CITY for an exception shall first be reviewed by COUNTY to determine whether such request is appropriate for submission to HUD. In determining whether such request is appropriate for submission to FIUD, COUNTY will consider the factors listed in 24 CFR 570.611 (e). D. Prior to any funding under this Agreement, CITY shall provide COUNTY with a list of all employees, agents, consultants, officers and elected and appointed officials who are in a position to participate in a decision making process, exercise any functions or responsibilities, or gain inside information with respect to the CDBG activities funded under this Agreement. CITY shall also promptly disclose to COUNTY any potential conflict, including even the appearance of conflict that may arise with respect to the CDBG activities funded under this Agreement. E. Any violation of this section shall he deemed a material breach of this Agreement, and the Agreement shall be immediately terminated by the COUNTY. PACKET PAGE: 100 AGENDA ITEM 3A.9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 15. PROJECT ELIGIBII ITY As to CITY or its claimants, COUNTY shall bear no liability for any later determination by the United States Government, the Department of Housing and Urban Development or any other person or entity that CITY is or is not eligible under 24 CFR Part 570 to receive CDBG funds. 16. USE OF PROPERTY. Whenever federal CDBG funds or program income are used, in whole or in part, for the purchase of equipment or personal property, the property shall not be transferred from its originally funded use, by CITY or sub -recipient, for a period of five (5) years from the close-out date of the grant from which CDBG assistance was provided. The CITY shall maintain a current inventory for COUNTY monitoring and review. 17. EMPLOYMENT OPPORTUNITIES TO BE CAUSED BY PROJECT. CITY agrees to notify and to require any lessee or assignee to notify Riverside County Workforce Development Center of any and all job openings that are caused by this project. 18. PUBLICITY. Any publicity generated by CITY for the project funded pursuant to this Agreement, during the term of this Agreement, will make reference to the Contribution of the County of Riverside, the Economic Development Agency, and the Community Development Block Grant Program in making the project possible. 19. PROGRAM MONITORING AND EVALUATION. CITY and its sub -recipients shall be monitored and evaluated in terms of its effectiveness and timely compliance with the provisions of this Agreement and the effective and efficient achievement of the Program Objectives. Quarterly reports shall be due on the last day of the month immediately following the end of the quarter being reported. The quarterly written reports shall include, but shall not be limited to, the following data elements: A. Title of program, listing of components, description of activities/operations. B. The projected goals, indicated numerically, and also the goals achieved (for each report period). In addition, identify by percentage and description, the progress PACKET PAGE: 101 AGENDA ITEM 3A.9 1 2 3 4 5 6 7 8 9 10 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 achieved towards meeting the specified goals and identify any problems encountered in meeting goals. C. If the CDBG-funded Activity meets a National Objective under 24 CFR 570.208 (a)(2)(i), CITY will report the following: 1) Total number of direct beneficiaries (clientele served) with household incomes at • Above 80% MHI • Between 50% and 80% MHI (Low -Income) • Between 30% and 50% MHI (Very Low -Income) • Less than 30% MHI (Extremely Low -Income) 2) Total number and percent (%) of the clientele served that have household incomes at or below 80% MHI 3) Racial ethnicity of clientele 4) Number of Female -Headed Households D. CITY and its sub -recipients shall report beneficiary statistics monthly to EDA on the pre -approved Direct Benefit Form and Sell -Certification Form (certifying income, family size, and racial ethnicity) as required by HUD. Updated forms are to be provided to CITY by EDA should HUD implement changes during the term of this agreement. CITY and sub - recipients will collect and provide all necessary data required by HUD pertaining to the Specific Outcome Indicators as identified in the CPD Outcome Performance Measurement System. 20. SOURCE OF FUNDING. CITY acknowledges that the source of funding pursuant to this Agreement is Community Development Block Grant (CFDA 14.218). 21. ENTIRE AGREEMENT- It is expressly agreed that this Agreement together with the cooperation Agreement between the parties, embodies the entire agreement of the parties in relation to the subject matter thereof, and that no other Agreement or understanding, verbal or otherwise, relative to this subject matter, exists between the parties at the time of execution. PACKET PAGE: 102 AGENDA ITEM 3A.9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 22. MINISTERIAL ACTS. The Assistant County Executive Offcer/EDA or designee(s) are authorized to take such ministerial actions as may be necessary or appropriate to implement the terms, provisions, and conditions of this Agreement as it may be amended from time to time by COUNTY. 23. PRIOR AUTHORIZATION. CITY shall obtain COUNTY written approval from the Economic Development Agency prior to implementing the following "high risk" activities funded with CDBG assistance: A. Construction of public facilities (project plans and specifications); B. Acquisition of real property; C. Historic Preservation; D. Relocation; and F. Economic Development 23. MODIFICATION OF AGREEMENT. This Agreement may be modified or amended only by a writing signed by the duly authorized and empowered representative of COUNTY and CITY respectively. SIGNATURES ON NEXT PAGE PACKET PAGE: 103 AGENDA ITEM 3A.9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 IN WITNESS WHEREOF, the COUNTY and the CITY have executed this Agreement as of the date listed below. DATED: COUNTY OF RIVERSIDE By: By. Suzanne Holland Assistant Director of EDA CITY OF SAN JACINTO Mayor SH JT mmv PACKET PAGE: 104 AGENDA ITEM 3A.9 EXHIBIT A File No.: 3.SJ.01-12 SUPPLEMENTAL AGREEMENT SCOPE OF WORK (NON-PUBLIC SERVICE) GENERAL INFORMATION CITY NAME City of San Jacinto ADDRESS: 595 S San Jacinto Avenue San Jacinto, CA 92583 PROGRAM CONTACTS: Sharon Paisley PHONE: (951) 487-7330 FAX: (951)654-3728 E-MAIL: PROJECT NAME: Targeted Code Enforcement PROJECT LOCATION: San Jacinto, CA LEVEL OF ENVIRONMENTAL CLEARANCE: CDBG ELIGIBILITY CODE: PROJECT FUNDING SUMMARY: S203,179 Project to be administered by County (EDA) on behalf of City: YES E NO II. SCOPE OF SERVICE A. Activities City will be responsible for administering a 2012-2013 Community Development Block Grant for the Targeted Code Enforcement in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program: Activity #1 CDBG funds will be used by the City to conduct enhanced code enforcement activities in targeted areas. The purpose of code enforcement is to enhance public safely and the quality of life, through fair enforcement of laws and codes, in partnership with communities, as well as, private and publicaly-funded improvements, rehabilitation, and other services. The CDBG funded code enforcement will target dangerous and substandard structures, zoning violations, Page 1 of 6 PACKET PAGE: 105 AGENDA ITEM 3A.9 EXHIBIT A File No.: 3.SI.01-12 and other health and safety issues, Eligible costs include the salaries, overhead, and related expenses of code enforcement officers. B. National Objective All activities funded with CDBG funds must comply with one of more of the CDBG program's National Objective Criteria as required under 24 CFR 570.200(a)(2). City certifies that the activity(ies) carried out under this Agreement will meet the following National Objective: National Objective Criteria: 570.208 (a)(I)(i) CFR Reference: Low Mod Area C. Levels of Accomplishment — Goals and Performance Measures The City agrees to implement and complete the following activity(ies): Activity #1; Target dangerous and substandard structures, zoning violations, and other health and safety issues, and enhance public safety and the quality of life, through fair enforcement of laws and codes CPD OUTCOME PERFORMANCE MEASUREMENT Objectives (select one): ❑ Creating Suitable Living Environments ❑ Providing Decent Affordable Housing ❑ Creating Economic Opportunities Outcome (select one): E Availability/Accessibility • Affordability 0 Sustainability (promoting Livable or viable communities) D. City Capacity By executing this Supplemental Agreement, the City certifies that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds. City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact the City or subrecipient's performance under this Agreement. Any changes in the above items are subject to the prior approval of the County. E. Performance Monitoring The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the Page 2 of 6 PACKET PAGE: 106 AGENDA ITEM 3A.9 EXHIBIT A File No.: 3.S7.01-12 County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated. F. Program Budget It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed 3203,I79 Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in 24 CFR 84.21. The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and City. Line Item Design/Engineering Costs Li Project Administration Costs C Construction Costs J El Acquisition Costs Relocation Costs C—. Capital Equipment Costs F Code Enforcement Clearance ( i Interim Assistance --En Other: IT Page 3 of 6 PACKET PAGE: 107 AGENDA ITEM 3A.9 EXHIBIT A File No.: 3.SJ,01-12 G. Total Amount of Non- CDBG Leveraging TYPE SOURCE. AMOUNT SOURCE AMOUNT SOURCE FEDERAL STATE/LOCA'. PRIVATE OTHER I11. ADMINISTRATIVE REQUIREMENTS AMOUNT TOTAL $O SO SO $O TOTAL: SO A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. Cost Principles The City shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non -Profit Organizations," A-21, "Cost Principles for Educational Institutions,." or OMB Circular A-87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs inured whether charged on a direct or indirect basis. C. Documentation and Record Keeping 1. Records to be Maintained The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; v. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21-28; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. Page 4 of 6 PACKET PAGE: 108 AGENDA ITEM 3A.9 EXHIBIT A File No.: 3.SJ.01-12 2. Records Retention The City shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of five (5) years. The retention period begins on the date of the submission of the County's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the five-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five- year period, whichever occurs later. 3. Client Data The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request. 4. Disclosure The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or City's responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Close-outs The City's obligation to the County shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income. 6. Audits & Inspections All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must he fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits and OMB Circular A-133. Page 5 of 6 PACKET PAGE:109 AGENDA ITEM 3A.9 EXHIBIT A FileNo.: 3.SJ.01-12 IV. PROJECT IMPLEMENTATION AND SCIIEDUL Unless pre -approved by County, City will perform and complete the activities described in Section II in conformance with the schedule of tasks and milestones listed below: Tasks / Milestone Attend Mandatory Cooperating City Training Implement Project Activities Execute Supplemental Agreement & Notice to Incur Cost Tasks / Milestone Submit Quarterly Performance Reports to County County Monitoring of City Program/Performance Specific Project Activities City Submits Reimbursement Requests Monthly Submittal Other Schedule CDBG-funded Project Complete Start Date August 2012 Upon Notification from EDA August 2012 Start Date Completion Date August 2012 September 2012 Completion Date October 15, 2012 January 15, 2013 April 15,2013 July 31, 2013 To be determined by Program Manager To be determined by Program Manager June 6,2012 June 30, 2013 V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS Page 6 of 6 PACKET PAGE: 110 AGENDA ITEM 3A.9 EXHIBIT B File No.: 3.SJ.02-12 GENERAL INFORMATION CITY NAME: City of San Jacinto SUPPLEMENTAL AGREEMENT SCOPE OF WORK (NON-PUBLIC SERVICE) ADDRESS: 595 S. San Jacinto Avenue San Jacinto, CA 92583 PROGRAM CONTACTS: Sharon Paisley, Development Director PHONE: FAX: E-MAIL: PROJECT NAME: San Jacinto Downtown Street Improvement Project PROJECT LOCATION: Various low mod tracts in San Jacinto LEVEL OF ENVIRONMENTAL CLEARANCE: CDBG ELIGIBILITY CODE: PROJECT FUNDING SUMMARY: S406,358 Project to be administered by County (EDA) on behalf of City: YES ❑ NO IL SCOPE OF SERVICE Activities City will be responsible for administering a 2012-2013 Community Development Block Grant for the San Jacinto Downtown Street Improvement Project in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program: Activity # I CDBG funds will be used by the City of San Jacinto to construct street improvements that consist of pavement, grinding, overlay, and striping, as well as minor curb/gutter and sidewalk enhancements in (owanoderate income areas of the city, Page 1 of 6 PACKET PAGE: 111 AGENDA ITEM 3A.9 EXHIBIT B File No.: 3.57.02-12 National Objective All activities funded with CDBG funds must comply with one of mare of the CDBG program's National Objective Criteria as required under 24 CFR 570.200(a)(2). City certifies that the activity(ies) carried out under this Agreement will meet the following National Objective: National Objective Criteria: 570.208 (MO )(i) CFR Reference. Low Mod Area Levels of Accomplishment— coals and Performance Measures The City agrees to implement and complete the following activity(ies): Activity #1 Activity #2 CPI) OUTCOME PERFORMANCE MEASUREMENT Objectives (select one): Outcome (select one): ® Creating Suitable Living Environments Providing Decent Affordable Housing Creating Economic Opportunities Availability/Accessibility Affordability ® Sustainability (promoting livable or viable communities) City Capacity By executing this Supplemental Agreement, the City certifies that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds. City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact the City or subrecipient's performance under this Agreement. Any changes in the above items arc subject to the prior approval of the County. Performance Monitoring The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated. Page 2 of 6 PACKET PAGE: 112 AGENDA ITEM 3A.9 EXHIBIT B File No.: 3.SJ.02-12 F. Program Budget It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $406,358 Dmwdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient s financial management system in accordance with the standards specified in 24 CFR 84.21, The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and City. Line Item Design/Engineering Costs Project Ad m in (ration Costs ❑ Construction Costs Acquisition Costs ❑ Relocation Costs ❑ Capital Equipment Costs ❑ Code Enforcement ❑ Clearance ❑ Interim Assistance ❑ O her: ❑ r7si .:y.n, s k�ti k t Page 3 of 6 PACKET PAGE: 113 AGENDA ITEM 3A.9 Total Amount of Non- CDBG Leveraging TYPE SOURCE AMOUNT FEDERAL STATE/LOCAL PRIVATE OTHER SOURCE ADMINISTRATIVE REQUIREMENTS EXFIIBIT B File No.: 3.8102-12 AMOUNT SOURCE AMOUNT TOTAL $0 SO SO SO TOTAL: SO Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. Cost Principles The City shall administer its program in conformance with OMB Circulars A-I22, "Cost Principles for Non -Profit Organizations,' A-21, "Cost Principles for Educational Institutions," or OMB Circular A-87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. Documentation and Record Keeping Records to be Maintai ed The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21-28; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. Page 4 of 6 PACKET PAGE: 114 AGENDA ITEM 3A.9 EXHIBIT B File No.: 3.SI.02-12 Records Retention The City shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of five (5) years. The retention period begins on the date of the submission of the County's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the five-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five-year period, whichever occurs later. Client Data The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request. Disclosure The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or City's responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. Close-outs The City's obligation to the County shall not end until all close-out requirements arc completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income. Audits & Inspections All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of au relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits and OMB Circular A-I33. Page 5 of 6 PACKET PAGE: 115 AGENDA ITEM 3A.9 EXHIBIT B File No.: 3.SJ.02-12 IV. PROJECT IMPLEMENTATION AND SCHEDULE Unless pre -approved by County, City will perform and complete the activities described in Section It in conformance with the schedule of tasks and milestones listed below: Tasks / Milestone Attend Mandatory Cooperating City Training Start Date Completion Date August2012 August 2012 Implement Project Activities Upon Notification from EDA Execute Supplemental Agreement & Notice to Incur Cost Tasks / Milestone Submit Quarterly Performance Reports to County August 2012 September 2012 Start Date Completion Date October 15, 2012 January 15, 2013 April 15, 2013 July 31, 2013 County Monitoring of City To be determined by Program Manager Program/Performance Specific Project Activities 1. City executes Supplemental Agreement; receives authorization to incur cost letter 2. City prepares final construction bid documents for EDA review and approval 3. EDA authorizes City to advertise for bids 4. EDA reviews and approves bidding process 5. City awards construction contract(s) 6. City and EDA conduct "pre -construction meeting" 7. EDA authorizes City to issue "Notice to Proceed" City Submits Reimbursement Requests Monthly Submittal Other Schedule CDBG-funded Project Complete TBD Page 6 of 6 PACKET PAGE: 116 AGENDA ITEM 3A.9 EXHIBIT CI Prohibition Against Conflicts of Interest Page 1 of 4 S 570.611 Conflict of interes (a) Applicability. (1) In the procurement of supplies, equipment, construction, and services by recipients, and by subrecipients (1.ncluding those specified at § 570.204(c)), the conflict of interest provisions in 24 CFR 85.36 and OMB Circular A 110, respectively, shall. apply. 2) In all cases not governed by 24 CFR 85.36 and OMB Circular A-110, the provisions of this section shall apply. Such cases include the acquisition and disposition of real property and the provision of assistance by the recipient, by its subrecipients, or to individuals, businesses and other private entities under eligible activities which authorize such assistance (e.g., rehabilitation, preservation, and other improvements of private properties or facilities pursuant to 3 5I0.202, or grants, loans and other assistance to businesses, individuals and other private entities pursuant to 3 510-203, S 570.204 or 4 570.455). (b) Conflicts prohibited. Except for the use of CDBG funds to pay salaries and other related administrative or personnel costs, the general rule is that no persons described in paragraph (0) of this section who exercise or have exercised any functions or responsibilities with respect to CDBG activities assisted under this part or who are in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from a CDBG assisted activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. For the UDAG program, the above restrictions shall apply to all activities that are a part of the UDAG project, and shall cover any such interest or benefit during, or at any time after, such person's tenure. (c) Persons covered. The conflict of interest provisions of paragraph (b) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the recipient, or of any designated public agencies, or subrecipients which are receiving funds under this part. (d) Exceptions: threshold requirements. Upon the written request of the recipient, HUD may grant an exception to the provisions of paragraph (b) of this section on a case -by -case basis when it determines that such an exception will serve to further the purposes of the Act and the effective and efficient administration of the recipient's program or project. An exception may be considered only after the recipient has provided the following: PACKET PAGE: 117 AGENDA ITEM 3A.9 EXHIBIT CI Prohibition Against Conflicts of Interest Page 2 of 4 (1) A disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the conflict and a description of how the public disclosure was made; and (2) An opinion of the recipient's attorney that the interest for which the exception is sought would not Violate State or local law. (e) Factors to be considered for exceptions. In determining whether to grant a requested exception after the recipient has satisfactorily met the requirements of paragraph (d) of this section, HUD shall consider the cumulative effect of the following factors, where applicable- (1) Whether the exception would provide a significant cost benefit or an essential degree of expertise to the program or project which would otherwise not be available; (2) Whether an opportunity was provided for open competitive bidding or negotiation; ;3) Whether the person affected is a member of a group or class of low or moderate income persons intended to be the beneficiaries of the assisted activity, and the exception will permit such person to receive generally the same interests or benefits as are being made available or provided to the group or class; (4) Whether the affected person has withdrawn from his or her functions or responsibilities, or the decision making process with respect to the specific assisted activity in question; (5) Whether the interest or benefit was present before the affected person was in a position as described in paragraph (b) of this section; (6) Whether undue hardship will result either to the recipient or the person affected when weighed against the public interest served by avoiding the prohibited conflict; and (7) Any other relevant considerations. PACKET PAGE: 118 AGENDA ITEM 3A.9 EXHIBIT CI Prohibition Against Conflicts of Interest Page 3 of 4 Community Development Block Grant Policy Manual I.D. X A-11 (pg. 1 of 2) TOPIC: CONFLICT OF INTEREST CODED RIVERSIDE COUNTY ECONOMIC DEVELOPMENT AGENCY DATE: October 1989 This Conflict of Interest Code is written to comply with Federal Regulations (24 CFR Part 85). These Regulations. "Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments" require that grantees and sub -grantees will maintain a written code of standards of conduct governing the performance of their employees engaged in the award and administration of contracts. 1) No employee, officer or agent of the grantee shall participate in the selection, in the award or in the administration of a contract supported by Federal Funds if a conflict of interest, real or apparent, would be involved. 2) Such a conflict willarise when: i) The employee, officer or agent, ii) Any member of the immediate family; ill) His/Her partners, or; iv) An organization which employs, or is about to employ ..ny of the above has a financial or other interest in the firm's selection for award. 3) The grantee's or sub -grantee's officers, employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors or parties to sub -agreements except as noted in Section 4. 4) A grantee's or sub -grantee's officers, employees or agents will be presumed to have a financial interest in a business if their financial interest exceeds the following: i) Any business entity in which the official has a direct or indirect investment worth one thousand dollars ($1,000) or more. Any real property in which the official has a direct or indirect interest worth one thousand dollars ($1,000) or more. PACKET PAGE: 119 AGENDA ITEM 3A.9 EXHIBIT CI Prohibition Against Conflicts of Interest Page 4 of 4 Community Development Block Grant Policy Manual I.D. 0 A-11 (pg. 2 of 2) TOPIC: CONFLICT OF INTEREST CODE RIVERSIDE COUNTY ECONOMIC DEVELOPMENT AGENCY DATE: October 1989 ill; Any source of income, other than gifts and other than Loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating two hundred fifty dollars ( $250) or more in value provided to, received by or promised to the official within 12 months prior to the time when the decision is made. iv) Any business entity in which the official is a director, officer, partner, trustee, employee, or holds any position of management. v) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating two hundred fifty dollars ($250) or more in value provided to, received by, or promised to the official within 12 months prior to the time when the decision is made. 5) For purposes of Section 4, indirect investment or interest means any investment or interest owned by the spouse or dependent child of an official, by an agent on behalf of an official, or by a business entity or trust in which the official, the official's agents, spouse, and dependent children own directly, indirectly, or beneficially a 10-percent interest or more. PACKET PAGE: 120 AGENDA ITEM 3A.9 EXHIBIT "R" Constitutional Prohibition In accordance with First Amendment Church/State Principles, as a general rule, CDBG/ESG assistance may not be used for religious activities or provided to primarily religious entities for any activities, including secular activities. The following restrictions and limitations therefore apply to the use of CDBG/ESG funds. (1) CDBG/ESG funds may not be used for the acquisition of Property or the construction or rehabilitation (including historic preservation and removal of architectural barriers) of structures to be used for religious purposes or which will otherwise promote religious interests. This limitation includes the acquisition of property for ownership by primarily religious entities and the construction or rehabilitation (including historic preservation and removal of architectural barriers) of structures owned by such entities (except as permitted under paragraph (j)(2) of this section with respect to rehabilitation and under paragraph (j)(4) of this section with respect to repairs undertaken in connection with public services) regardless of the use to be made of the propertyor structure. Property owned by primarily religious entities may be acquired with CDBG/ESG funds at no more than fair market value for a non -religious use. (2) CDBG/ESG funds may be used to rehabilitate buildings owned by primarily religious entities to be used for a wholly secular purpose under the following conditions: (i) The building (or portion thereof) that is to be improved with the CDBG/ESG assistance has been leased to an existing or newly -established wholly secular entity (which may be an entity established by the religious entity); (ii) The CDBG/ESG assistance is provided to the lessee (and not the lessor) to make the improvements; (iii) The leased premises will be used exclusively for secular purposes available to persons regardless of religion; (iv) The lease payments do not exceed the fair market rent of the premises as they were before the improvements are made; (v) The portion of the cost of any improvements that also serve a non - leased part of the building will be allocated to and paid for by the lessor; (vi) The lessor enters into a binding agreement that unless the lessee, or a qualified successor lessee, retains the use of the leased premises for a wholly secular purpose for at least the useful life of the improvements, the lessor will pay to the lessee an amount equal to the residual value of the improvements; (vii) The lessee must remit the amount received from the lessor under subparagraph (2)(vi) of this section to the recipient or subrecipient from which the CDBG/ESG funds were derived. PACKET PAGE: 121 AGENDA ITEM 3A.9 EXHIBIT "R^ Constitutional Prohibition Page 2 The lessee can also enter into a management contract authorizing the lessor religious entity to use the building far its intended secular purpose, e.g., homeless shelter, provision of public services. In such case, the religious entity must agree in the management contract to carry out the secular purpose in a manner free form religious influences in accordance with the principles set forth in paragraph (j)(3) of this section. (3) As a general rule, CDBG/ESG funds may be used for eligible public services to be provided through a primarily religious entity, where the religious entity enters into an agreement with the recipient or subrecipient from which the CDBG/ESG funds are derived that, in connection with the provision of such services: (i) it will not discriminate against any employee or applicant for employment on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion. (ii) It will not discriminate against any person applying for such public services on the basis of religion and will not limit such services or give preference to persons on the basis of religion; (iii) It will provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence in the provision of such public services; (iv) The portion of a facility used to provide the public services shall contain no religious symbols or decorations, other than those permanently affixed to or part of the structure. (4) Where the public services provided under paragraph (j)(3) of this section are carried out on property owned by the primarily religious entity, CDBG/ESG funds may also be used for minor repairs to such property which are directly related to carrying out the public services where the cost constitutes in dollar terms only an incidental portion of the CDBG/ESG expenditure for the public services. PACKET PAGE: 122 AGENDA ITEM 3A.9 EXHIBIT "S" Page 1 of 2 Economic opportunities for Section 3 Residents and Section 3 Business Concerns Sec. 135.38 Section 3 clause. All Section 3 covered contracts shall include the following clause (referred to as the Section 3 Clause); A. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1960, as amended, 12 U.S.C. 1101u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD - assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. !3. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. PACKET PAGE: 123 AGENDA ITEM 3A.9 EXHIBIT "S" Page 2 of 2 The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135. F. The contractor will including training positions, selected but before the contra certify that any vacant employment positions, that are filled (1) after the contractor is ct is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. H. With respect to work performed in connection with Section 3 covered Indian housing assistance, Section 7(b) of the Indian Self -Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 1(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian -owned Economic Enterprises. Parties to this contract that are subject to the provisions of Section 3 and Section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with Section 0(b). PACKET PAGE: 124 AGENDA ITEM 3A.1O TO: October 2, 2012 The Honorable Mayor and Members of the City Council FROM: Asher Hartel, Planning Director Mike Hasapes, Assistant Planner SUBJECT: Resolution No, 3443 / A resolution to Deny Conditional Use Permit 3-12, to establish a Banquet Hall in an existing commercial suite. The site is located on the west side of State Street approximately 250 feet south of Seventh Street with an address of 790 S. State Street, Suite G. (APN 435-330-016) Applicant: Jeff Rahman 311 S. State St. Hemet, CA 92543 RECOMMENDATION: Staff recommends that City Council, by motion: Adopt Resolution No. denying Conditional Use Permit 3-12, based upon the Findings of Fact in the Resolution, BACKGROUND: On September 18, 2012 the City Council, by a 5-0 vote, denied the Planning Commission's recommendation to establish a Banquet Hall in an existing commercial suite located on the west side of State Street, approximately 250 feet south of Seventh Street (790 S. State Street, Suite G), Staff was instructed to prepare a resolution of denial identifying the reasons for the rejection of the application. DISCUSSION: The application is for a Conditional Use Permit to establish a 3,750 square foot Community Events Hall. The events hall was proposed to be located at the rear of an existing building located within the M-1 Zone (Industrial Zone), A banquet hall is not listed in Article 13 of the City Zoning Ordnance (M-1, Industrial Zone) as either a permitted or conditionally permitted use. However, the City Council and/or Planning Commission may determine that a use that is not listed is of the same general character as other conditionally permitted uses within the M-1 Zone, The City Council determined PACKET PAGE:125 AGENDA ITEM 3A.10 that the proposed site was not designed for this type of use and the proposed use does not meet the intent of the M-1 (Light Manufacturing) Zone. In addition, because the site didn't have adequate parking to serve the proposed use, a joint use of off-street parking facilities was requested. The proposed additional parking is located across Seventh Street at another shopping center. The City Council determined that the proposed joint use parking arrangement did not meet the objectives of the City's parking ordinance, and would place visitors to the proposed banquet hall in extreme danger and could force banquet hall patrons to trespass across an adjacent parcel. BUDGETARY IMPACT: None ATTACHMENTS: ■ City Council Resolution PACKET PAGE: 126 AGENDA ITEM 3A.1O STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA, DENYING A CONDITIONAL USE PERMIT TO ESTABLISH A COMMUNITY EVENTS (BANQUET ) HALL AT 790 S. STATE STREET, SUITE G (APN 435-330-016): CUP NO. 3-12. WHEREAS, Jeff Rahman filed an application, File No. CUP 3-12, for a conditional use permit to allow the establishment of a 3,750 square foot community events (banquet) hall ("Application") at an existing commercial building located at 790 S. State Street, Suite G, San Jacinto CA, APN 435-30-016 ('Subject Site"); and WHEREAS, the Subject Property is designated by the General Plan as "Industrial" and Is zoned Industrial (M-1); and WHEREAS, on August 20, 2012, the City Council set a public hearing for CUP 3-12, rather than ratifying the Planning Commission's approval of said Application; and WHEREAS, on September 18, 2012, the City Council conducted a duly noticed public hearing concerning CUP 3-12, at which all persons wishing to be heard were provided an opportunity to provide information to the City Council; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JACINTO RESOLVES AS FOLLOWS: SECTION 1. Based on the entire record before the City Council, all written and oral evidence presented to the City Council, and the findings set forth in this Resolution, the City Council denies the Application for Conditional Use Permit No. 3-12, a request to allow the establishment of a 3,750 square foot community events (banquet) hall at an existing commercial building located at the Subject Site, SECTION 2, Based on the entire record before the City Council and all written and oral evidence presented to the City Council, including the staff report, the City Council finds as follows: A. That the proposed location of the conditional use is not in accord with the objectives of the City of San Jacinto's Zoning Ordinance and the purposes of the zone in which the site is located, This is because: PACKET PAGE:127 AGENDA ITEM 3A.10 1. The purpose of the Industrial (M-1) zone is "to encourage sound industrial development in the city by providing and protecting an environment exclusively for such development". The City Council determines that a community events (banquet) hall would not encourage sound industrial development, such as use is not industrial in character. 8. That the proposed location of the conditional use and the conditions under which it would be operated or maintained would be detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity. This is because: 1. The Subject Site was not designed to accommodate assembly type uses, such as a community events (banquet) hall, and therefore on -site parking is inadequate. 2. The provision of parking by way of an off -site parking lot, across a busy City street (7th Street) would place visitors to the banquet hall in extreme danger when walking to and from their parked vehicles. The likelihood of such danger would be exacerbated by the potential for either permitted or unpermitted alcohol consumption during banquets. 3. The close proximity of the building proposed to be used as a banquet hall to the adjacent property (on the Southwest corner of 7th and State St.) would be materially injurious to that property, since visitors to the banquet hall would be inclined to trespass onto such property, including both as pedestrians as well as by driving and parking vehicles on such adjacent property. C. That the proposed conditional use would not comply with each of the applicable provisions of the City of San Jacinto's Ordinance. This is because: 1. A community events (banquet) hall is not listed as permitted or conditionally permitted use within the Industrial (M-1) Zone, and the City Council determines that a community events (banquet) hall is not of the same general character as those permitted or conditionally permitted uses listed in saki zone. SECTION 3. Effective Date. This Resolution shall become effective on the date on which it is adopted. PASSED APPROVED AND ADOPTED, this 2nd day of October, 2012, Ayes: Nays: Absent: Abstain: Andrew F. Kotyuk, Mayor PACKET PAGE:128 AGENDA ITEM 3A.10 ATTEST: Rick Miller, City Clerk APPROVED AS TO FORM: Best, Best, and Krieger, LLP Jeffrey S. Ballinger, City Attorney PACKET PAGE: 129 AGENDA ITEM 3A.11 October 2, 2012 TO: The Honorable Mayor and Members of the City Council FROM: Tim Huffs, City Manager Jeff Ballinger, City Attorney SUBJECT: Approve Second Amendment to Subdivision Improvement Agreement with Puente Holdings, LLC (Tract 31886) RECOMMENDATION: Staff recommends that the City Council approve the Second Amendment to Subdivision Improvement Agreement with Puente Holdings, LLC (Tract 31886). BACKGROUND On December 6, 2007, the City Council approved Tract 31886. At the time, the tract was owned by Shea Homes Limited Partnership. Among other public improvements, the subdivider was required under the subdivision improvement agreement to install the road widening of Ramona Expressway. Those improvements were estimated to cost approximately $1,529,956. Since 2007, the property has been transferred, and is now owned by Puente Holdings, LLC and PBJT935927 2008 Investments, LLC. In 2009, the City Council approved a substitution of deeds of trust in lieu of performance bonds for the in -tract improvements. However, the subdivider has continued to remain obligated to maintain bonds for out of tract improvements, including the Ramona Expressway work. Recently, the City was awarded funding for the City to complete the Ramona Expressway improvements. DISCUSSION Because the property is now owned by a new owner, City staff and the City Attorney recommend that the City memorialize the fact that this new owner is the successor in interest to the obligations under the original subdivision agreement. In addition, because the Ramona Expressway improvements are scheduled to be completed by the City, the subdivider has requested that its obligation under the original subdivision improvement agreement to install the road widening of Ramona PACKET PAGE: 13 AGENDA ITEM 3A.11 Expressway be removed. Along with that removal, the subdivider would be allowed to reduce the amount of bonds by the amount that secured the performance of that work. City staff and the City Attorney have drafted the accompanying agreement that does so. However, the agreement also provides that, if for any reason the City does not complete the Ramona Expressway improvements, that obligation will return to the subdivider. In addition, no permits would be issued for the project unless and until such security is replaced. ALTERNATIVES: Take no action FISCAL IMPACT: This Amendment is not likely to have any positive or negative fiscal impact to the City. ATTACHMENTS: • Second Amendment to Subdivision Improvement Agreement (Tract 31886) PACKET PAGE: 132 AGENDA ITEM 3A.11 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of San Jacinto 595 S. San Jacinto Avenue San Jacinto, CA 92583 ATTN: City Clerk APN(s): [ SPACE ABOVE THIS LINE FOR RECORDER'S USE EXEMPT FROM RECORDING FEES PURSUANT TO GOV. CODE § 27383 AMENDMENT NO. 2 TO AGREEMENT FOR COMPLETION OF PUBLIC IMPROVEMENTS FINAL TRACT NO. 31886 between THE CITY OF SAN JACINTO a California municipal corporation AND PUENTE HOLDINGS, LLC AND PBJT935927 2008 INVESTMENTS, LLC, both California limited liability companies 24438.00000V7594425.1 PACKET PAGE: 133 AGENDA ITEM 3A.11 AMENDMENT NO. 2 TO AGREEMENT FOR COMPLETION OF PUBLIC IMPROVEMENTS FINAL TRACT NO. 31886 Parties and Date. This Amendment No. 2 to Agreement for Completion of Public Improvements Final Tract No. 31886 ("Amendment No. 2') is made and entered is as of this 2nd day of October. 2012, by and between the City of San Jacinto, a municipal organization organized under the laws of the State of California, with its principal place of business at 595 S. San Jacinto Avenue, San Jacinto, CA 92583 on the one side ('City). and Puente Holdings, LLC a California limited liability company with its principal place of business at 6055 Abbottswood Row, La Jolla CA 92037 ("Puente") and P13iT935927 2008 Investments, LLC, a California limited liability company with its principal place of business at 21650 Oxnard St. #1960, Woodland Hills CA 91367 ("2008 Investments") on the other side. (Puente and 2008 Investments are sometimes collectively referred to as `Developer). City and Developer are sometimes individually referred to as "Party" and collectively as "Parties". Recitals. 2.1 Agreement. The City has conditioned the approval of the final map for Tract No. 31886, real property located within City, a legal description of which is attached hereto as Exhibit "A" and incorporated herein by reference, on the timely construction of completion of public improvements as set forth in the Agreement for Completion of Public Improvements Final Tract No. 31886 dated September 6, 2007, as amended by that certain Amendment to the Subdivision Agreement for Final Tract Map 31886, by and between the City and Developer's predecessor in interest to the Property, Shea Homes LP, a California limited partnership (collectively, the original agreement and amendment shall be referred to herein as the "Agreement'). 2.2 Amendment No. 2 Purpose. Since the execution of the Agreement, the Property has been transferred to Developer and the responsibility for the completion of certain public improvements required under the Agreement has been assumed by the City. Therefore, the City and Developer desire to amend the aforesaid Agreement to: (I) memorialize the assignment and assumption of the Agreement to Developer; and (2) provide for the removal of certain improvement obligations and corresponding reduction in security amounts required under the Agreement, as required by the Agreement and the California Subdivision Map Act (Gov. Code §§ 66410 et seq) )(the "Act'). 2.3 Amendment Authority. Section 205 of the Agreement authorizes, but does not require_ the Parties to amend the Agreement by written agreement. 2.4 Request and Approval of City Council. Developer has made a written request to the City of San Jacinto City Council ("City Council") for its approval of a reduction in the improvement obligation and corresponding reduction in security amounts. The City Council finds that it would not be in the public interest to reduce the improvement obligation and corresponding security amount, since the subject improvement yvi11 now be made by the City. za+aeco( PACKET PAGE:134 AGENDA ITEM 3A.11 Terms. 3.1 Assumption of Agreement. Developer hereby assumes the rights, responsibilities and obligations of Developer under the Agreement. 3.2 Amendment of Pshibit "B" — List of Public Improvements Exhibit'B"- List of Public Improvements is hereby amended as set forth in Exhibit "B" to this Amendment No. 2. 3 3 Amendment of Security Amount. The amount of Twelve Million, Five Hundred Eighty Two Thousand, Sixty Nine Dollars ($12,582,069 00), contained in Sections 13.1 and 13.2 of the Agreement are hereby amended to he Two Hundred and Fifty Thousand Dollars ($250,000). Developer may substitute for any existing surety bond(s) one or more replacement surety bond(s) in such new amount, issued by one or more sureties admitted to conduct surety business in the State of California, as set forth in Section 13 0 through 13.4 of the Agreement. City shall release the existing bond(s) upon replacement of any such surety bond(s) by Developer. To the extent the Ramona Expressway Street Improvements, as described in Exhibit B to the original Agreement are not completed by the City, Developer shall be responsible for completion of such improvements as though fully set forth herein. In such event, City shall be under no legal obligation to issue any entitlement, whether discretionary or ministerial, for the Property, unless and until security for the Ramona Expressway Street Improvements is provided. 3.4 Continuing Effect of Agreement Except as amended by this Amendment No. 2, all other provisions of the aforementioned Agreement remain in full force and effect. From and after the date of this Amendment No. 2, whenever the term "Agreement" appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 2. 35 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant this Amendment No. 2. 3 6 Invalidity of Amendment In the event that this Amendment No. 2, or any material portion thereof is found by a court of competent jurisdiction to be invalid or unenforceable, Developer shall be required to substitute traditional surety bond(s) in place of the Alternative Security otherwise authorized hereby. 3.7 Counterparts. This Amendment No. 2 may be executed in counterpart originals, which taken together, shall constitute one and the same instrument. [SIGNATURES ON FOLLOWING PAGE] 2447.CO( PACKET PAGE:135 AGENDA ITEM 3A.11 SIGNATURE PAGE TO AMENDMENT NO. 2 TO AGREEMENT FOR COMPLETION OF PUBLIC IMPROVEMENTS FINAL TRACTS NO. 31886 CITY OF SAN JACINTO, a California PUENTE HOLDINGS, LLC, a California municipal corporation Limited Liability Company By: _ By: Andrew F. Kotyuk, Mayor Dated: Name: Title: Dated: ATTEST: By: By: Name: Rick Miller, City Clerk Dated: Title: Dated: PBJT935927 2008 INVESTMENTS, LLC, a APPROVED AS TO LEGAL FORM: California limited Liability Company By: By: Best Best & Krieger LLP City Attorney Name: Dated: Title: Dated: By: Name: Title: Dated: 24438.00000V7594425.1 PACKET PAGE: 136 AGENDA ITEM 3A.11 EXHIBIT"A" TO AMENDMENT NO. 2 TO AGREEMENT FOR COMPLETION OF PUBLIC IMPROVEMENTS FINAL TRACTS NO. 31886 LEGAL DESCRIPTION OF PROPERTY Real Property in the City of San Jacinto, County of Riverside, State of California described as follows: RLS sir 1NROIIC i LY. INCLUSIVE AS W.CRRSD PUe LOT ANi1NENY NO RPS APPROVED By tiff CITY ese FAN CIMO, CAUWVORNp PLANIJZIG DEPARTMENT ON OCOBER M. MOO AND IUXOROt OEEEMSH'& IA. 201 AS MST&IINENT NUMBER t $-IO3Ul.. OPPIcIAI. rt4 eos OP 3NE44M COUNTY. CALU YN. DESCRIBED AS uENN NC AT slit MOST 901111@RI.Y CORNER OT PARCEL "D' PER SAID yr LINE ADJUUMENT; THENCE, ON'n01 5OC4HWRBTu, LINN OS SAN PAACSLR'O, 'C. AND A".NORAI 44'S5'15"+'ENT. AYW 11 MET i0 TEIEMosr YiEblERLY CORER OF SALO ENRCfVB`. THENCE, Ot. 111C NORrIO. LY LINE Or SAID PARCEL`S". NORPI 4197Fe UST, II? MET, Tlk h, CONTNLPNO ON SAID Note I'NEID.Y LIMP. Sotim ES-DEDV PAST. M99.11 FEET TO THE NO&1'F4'ASYENLY CORN OF SALO ANEL `W BYD4 ON net SODINVISTERLV &IONT OP WAY sox OP RAMONA EXPRESSWAY AS PESCR%ED tN °CPO IPCOIF IONS PSIOe m wetk a1w RECORDED ILLY S. ECR M . CAUPOLNT IAh®IX T 0.4RCIAL RELOOR0PPR20.RIOE@1LNTY. WCIPOIXNL\I THPNCEON SAID RIOHtor WAY LNE M10114ENOfTNFiSTERLV LNlL OF TW&.0 nR SoimNeMYr%N,Y CMS OF SAID OT "DC SOLni 4'S746-6 2HNRRCM PACKET PAGE:137 AGENDA ITEM 3A.11 EXHIBIT "B" TO AMENDMENT NO. 2 TO AGREEMENT FOR COMPLETION OF PUBLIC IMPROVEMENTS FINAL TRACTS NO. 31886 LIST OF PUBLIC IMPROVEMENTS Off -Site Storm Drainage Improvements $250,000 24438C0000V7594425.1 PACKET PAGE: 138 AGENDA ITEM 3A.11 ALL-PURPOSE ACKNOWLEDGMENT NOTARY FOR CALIFORNIA STATE OF CALIFORNIA ) COUNTY OF ) On .2012 before me, Date Not PuOlc ) personally appeared Na„ors wa who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. goa Wee of Notary Public OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ Individual ❑ Corporate Officer ❑ Partner(s) Title(s) 0 Linter/ ❑ General ❑ Attorney -In -Fact O Trustee(s) O Gua rdan/Conservator ❑ Other: Signer is representing: Name Of Person(s) or Entity(es) Title or Type of Document Number Of Pages Date Of Document Signer(s) Other Than Named Above PACKET PAGE:139 AGENDA ITEM 3A.11 ALL-PURPOSE ACKNOWLEDGMENT NOTARY FOR CALIFORNIA STATE OF CALIFORNIA ) COUNTY OF ) On , 2012 before me, Date personally appeared Name ofss4ry.a who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. gnature br Notary Yublic OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ Individual ❑ Corporate Officer ❑ Partner(s) Toes) ❑ Limited ❑ General ❑ Attorney -In -Fact ❑ Trustee(s) ❑ Guardian/Conservator ❑ Other Signer is representing: Name Of Person(s) Or EMlty(lee) Title or Type of Document Number Of Pages Date Of Document Signer(s) Other Than Named Above PACKET PAGE:140 AGENDA ITEM 3A.11 24438C0000V7594425.1 PACKET PAGE: 141 AGENDA ITEM 4.1 October 2, 2012 TO: The Honorable Mayor and Members of the City Council FROM: Jeff Ballinger, City Attorney SUBJECT: Interim Urgency Extension Ordnance Prohibiting Smoke Shops and Hookah Lounges RECOMMENDATION: Read title and, by motion adopt by four -fifths vote, Interim Urgency Extension Ordinance No. entitled, "AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO EXTENDING A MORATORIUM ON TOBACCO STORES (SMOKE SHOPS) AND HOOKAH LOUNGES IN THE CITY PENDING COMPLETION OF A COMPREHENSIVE UPDATE TO THE CITY'S ZONING ORDINANCES REGARDING THE SAME" BACKGROUND: As part of the City of San Jacinto and City of Hemet's ongoing efforts to improve the quality of life through the Valley ROCS program, the two cities have discussed regulating, or perhaps prohibiting, certain nuisance activities. One such sort of business that has been discussed is smoke shops and hookah lounges. As discussed below, the proposed ordinance before the City Council would extend a temporary moratorium on the establishment of any new smoke shops or hookah lounges within the City of San Jacinto, pending a review by the City staff of the merits of permanent regulations or prohibitions on such uses. The extension would last an additional ten months and fifteen days, DISCUSSION: California's Planning and Zoning Law authorizes the City Council to adopt an "interim" urgency ordinance, by a four -fifths vote, without following the procedures otherwise required for the adoption of an ordinance, to protect the public safety, health, and welfare. The ordinance may prohibit any uses that may be in conflict with a contemplated zoning proposal that the City is considering, or studying or intends to study within a reasonable time, The neighboring City of Hemet, as part of Hemet's ROCS program, recently adopted such an ordinance, effectively banning new smoke shops and new hookah lounges in PACKET PAGE:143 AGENDA ITEM 4.1 Hemet. As a result, at least one such proposed business has sought to locate in the City of San Jacinto. In order to prevent an influx of these sorts of uses, on August 20, 2012, the City Council adopted an urgency ordinance imposing a temporary (45 day) ban on smoke shops and hookah lounges. Since the August 20, 2012 ordnance, City staff and the City Attorney's office have researched possible regulations of such uses, including a review of Hemet's recently introduced ordinance. The August 20, 2012 moratorium is set to expire October 4, 2012, unless extended by City Council action. City staff (in consultation with the City Attorney) recommends that the City Council extend the temporary ban on these uses. The ban would be in place for an additional ten months and 15 days, in order to enable City staff to continue its research appropriate regulations or prohibitions, which would then be brought back to the City Council for consideration. Ten days before this public hearing, the City issued a written report describing what the City has done to alleviate the condition that led to the adoption of the interim ordinance. Also, notice of this public hearing was published in a newspaper, as required by state law. ALTERNATIVES: 1) Adopt the accompanying interim urgency extension ordinance, as proposed. 2) Do not adopt interim urgency ordinance, and direct staff to another ordinance. 3) Continue or take no action. BUDGETARY IMPACT: This ordinance is not likely to have any immediate budgetary impact, positive or negative. ATTACHMENTS: o Interim Urgency Extension Ordinance No. o Written Report PACKET PAGE:144 AGENDA ITEM 4.1 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) ORDINANCE NO. 12- AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO EXTENDING A MORATORIUM ON TOBACCO STORES (SMOKE SHOPS) AND HOOKAH LOUNGES IN THE CITY PENDING COMPLETION OF A COMPREHENSIVE UPDATE TO THE CITY'S ZONING ORDINANCES REGARDING THE SAME WHEREAS, the City Council ("City Council") of the City of San Jacinto ("City") is authorized, pursuant to Article 11, Section 7 of the California Constitution, to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and WHEREAS, California Government Code Section 65858 authorizes the City Council to adopt an interim urgency ordinance, by a four -fifths vote, without following the procedures otherwise required for the adoption of an ordinance, to protect the public safety, health, and welfare, prohibiting any uses that may be in conflict with a contemplated general plan specific plan, or zoning proposal that the City Council, Planning Commission or the planning department is considering or studying or intends to study within a reasonable time; and WHEREAS, on August 20, 2012, the City Council adopted an interim urgency ordinance, in accordance with Government Code Section 65858, establishing a moratorium on tobacco stores and hookah lounges, pending completion of a comprehensive update to the City's zoning ordinances regarding the same; and WHEREAS, pursuant to California Government Code Section 65858, said interim ordinance expires on October 4, 2012, unless extended; and WHEREAS, Government Code Section 65858 authorizes the City Council to extend said moratorium by an additional ten months and fifteen days, by adopting an ordinance; and WHEREAS, the City has, pursuant to Section 65090 of the Government Code, duly published notice of the public hearing at which this ordinance was considered; and WHEREAS, the City has issued a written report describing the measures taken to alleviate the condition which led to the adoption of the ordinance, which report is hereby adopted by the City Council as its own. PACKET PAGE:145 AGENDA ITEM 4.1 THE CITY COUNCIL OF THE CITY OF SAN JACINTO DOES HEREBY ORDAIN AS FOLLOWS: Section 1: This urgency ordinance is adopted pursuant to Section 65858 of the California Government Code. Section 2: Based on information contained in the record, the City Council makes the following findings: A. The unregulated development of Hookah Lounges and Tobacco Stores presents an immediate threat to the public health, safety and welfare. 1. The City does not have sufficient regulations in its Municipal Code governing the establishment of Tobacco Stores or Hookah Lounges. Specifically, there are no detailed regulations regarding the development, operation or location standards for these uses, 2. Significant concerns have been raised in the community regarding the lack of current regulations to address Tobacco Stores and Hookah Lounges. Specifically, residents of the City have expressed concerns regarding the impact these uses will have on the community including safety, affect on minors, noise, location near sensitive uses and other public health impacts, 3. Many state laws have been adopted, which acknowledge the public health impacts of tobacco and specifically its affect on minors, State law prohibits pubic school students from smoking or using tobacco products while on campus, while attending school sponsored activities, or while under the supervision or control of school district employees (Education code § 48901). State law also prohibits smoking in playgrounds and tot lots. It also prohibits smoking within 20 feet of the main entrances and exits of public buildings (Health and Safety Code § 104495). 4. Currently there are thirteen Tobacco Stores operating within the Hemet — San Jacinto area. There are seven operating within the neighboring City of Hemet, one operating within the County near the City of Hemet, five operating in the City of San Jacinto, and at least one that has proposed for the City of San Jacinto since the imposition of an interim moratorium in the City of Hemet. Residents and businesses within the City have expressed concern regarding the proliferation of such businesses located within the San Jacinto Valley. Specifically, many of these establishments are located in close proximity to sensitive uses such as residential areas, churches, schools, parks, arcades and other similar uses where minors tend to congregate. 5. Tobacco Stores are a target for theft and vandalism and require such establishments to install retractable security bars on all doors and windows. Additionally, Tobacco Stores may be affiliated with the sale of drug paraphernalia that encourage illegal activity, which then can negatively affect the neighborhoods and surrounding community. PACKET PAGE:146 AGENDA ITEM 4.1 6. The establishment of Hookah Lounges produces secondary smoke, far more concentrated than cigarette smoke, which can negatively affect workers, passers-by, neighbors, the elderly, sick and disabled and particularly minors. Recognizing the health risks, state laws have been adopted to prohibit unlawful smoking of tobacco in hookah pipes in an enclosed place of employment (Labor Code § 6404.4) as well as prohibiting smoking of tobacco in hookah pipes by those under 18 years of age (Penal Code § 308). 7. Due to the lack of development, operation and location standards for these uses, the City desires to study new zoning regulations in order to provide clear, consistent, and uniform guidance to businesses and individuals regarding the citing and operational characteristics while also addressing significant community concerns. B. It is necessary for the City of San Jacinto to study the appropriate type of local regulations required for Hookah Lounges and Tobacco Stores together with the potential impact that these establishments may have on the public's health, safety and welfare. 1. There exists a potential for inconsistent project review in the absence of clear policy direction based upon a thorough review of the City's land use goals and policies as well as information obtained from other cities and counties regarding the potentially positive and negative impacts that operation of Tobacco Stores and Hookah Lounges may have on the community. 2. The City of San Jacinto is currently undergoing a comprehensive update to the City's Development Code and related land use policies. 3. As part of the Development Code update, the City can study potential regulatory standards and location requirements for Hookah Lounges and Tobacco Stores, in order to determine whether and how such standards should be integrated into the Development Code. 4. The United States Supreme Court in Tahoe -Sierra Preservation Council, Inc. v. Tahoe Regional Planning Agency (2002) 535 U.S. 302 has upheld such interim planning processes and determined that they are an essential tool of successful development. C. The City finds that an interim prohibition on such uses and the issuance of any such applicable entitlements is necessary for an additional ten moths and fifteen days. 1. Based on the foregoing, permitting new ownership, and additional establishment or operation of Hookah Lounges or Tobacco Stores prior to completion of PACKET PAGE:147 AGENDA ITEM 4.1 the Development Code update would result in the current and immediate threat to the public health, safety, and welfare. 2. An additional period of ten months and fifteen days will permit City Staff to undertake an initial investigation of these mattes and recommend a course of action to the City Council. Section 3: Extension of Moratorium. Based on the above findings, the City Council orders as follows: A. In accordance with the authority granted the City of San Jacinto under Government Code § 65858(a), and pursuant to the findings stated herein, for a period of ten months and fifteen days following the date of adoption of this Ordinance: 1. No Hookah Lounge or Tobacco Store may be established or operate in any zone of the City. 2. No temporary or special use permit, site development permit, conditional use permit, tentative map, parcel map, variance, grading permit, building permit, building plans, zone change, use permit, business license, certificate of occupancy or other applicable approval will be approved or issued for the establishment or operation of a Hookah Lounge or Tobacco Store, B. As used in this Ordinance, the following definitions apply: 1. "Establish" or "operate" a Hookah Lounge or Tobacco Store (as defined in this Ordnance) means and includes any of the following: (a) The opening or commencement of the operation of a Hookah Lounge or Tobacco Store; (b) The conversion of an existing business, facility, use establishment, or location to a Hookah Lounge or Tobacco Store; (c) The addition of a Hookah Lounge or Tobacco Store to any other existing business, facility, use, establishment or location. 2. "Hookah" means a glass or metal water pipe usually decorated and shaped somewhat Eke a bottle or small tank, with a long, flexible cord pipe, also known as shisha, nargile, hubble bubble, nag and Turkish water Pipe. 3. "Hookah Lounge" means an area of a commercial establishment, whether enclosed, indoor or outdoor, designated specifically for the use of hookahs, but does not include private use of hookahs in personal residences if otherwise in compliance with applicable law. 4. "Tobacco Paraphernalia" means any device, product, equipment, or material of any kind that is intended or designed for use for smoking, inhaling, or ingesting tobacco, notwithstanding that the device, product, equipment, or material may also be used for smoking, inhaling, or ingesting PACKET PAGE:148 AGENDA ITEM 4.1 any controlled substance, "Tobacco paraphernalia" includes, but is not limited to, all of the following: Metal, ivory, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or without screens, permanent screens, hashish heads, or punctured bowls; ii. Water pipes; Bongs; iv. ChIIWms; v. Ice pipes or chillers; vi. Cigarette papers or wrappers; vii. Cigarette rolling machines; viii. Blunt wraps, as defined in Section 308 of the Penal Code; ix. Hookahs and similar devices constructed with a receptacle or container in which water or some other liquid may be placed into which smoke passes and is cooled in the process of being inhaled or ingested. 5. "Tobacco Product" means (1) any substance containing tobacco leaf, including but not limited to cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, bidis, or any other preparation of tobacco; and (2) any product or formulation of matter containing biologically active amounts of nicotine that is manufactured, sold, offered for sale, or otherwise distributed with the expectation that the product or matter will be introduced into the human body, but does not include any product specifically approved by the Federal Food and Drug Administration for use in treating nicotine or tobacco product dependence, 6, "Tobacco Store" means a retailer or wholesale business or any person that: (1) sells, offers for sale or offers to exchange for any form of consideration, tobacco, Tobacco Products or Tobacco Paraphernalia and (2) has fifteen percent (15%) or more of the square feet in the establishment used for the sale or display of tobacco, Tobacco Products or Tobacco Paraphernalia, Section 4: The City Council finds that this interim urgency ordinance is not subject to the California Environmental Quality Act ('CEQA') pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly, Section 5: Pursuant to Government Code § 65858(a) this ordinance shall take effect immediately but shall be of no further force and effect after ten months and fifteen days following its date of adoption. Section 6: The Mayor shall sign this interim urgency ordinance and the City Clerk shall attest thereto and shall within fifteen (15) days of its adoption cause it to PACKET PAGE:149 AGENDA ITEM 4.1 be published in the Press Enterprise, a newspaper published and circulated in the City of San Jacinto. Section 7: The City clerk shall certify the adoption of this ordinance. MOVED, PASSED, AND ADOPTED at a meeting of the City Council, by at least a 4/5ths vote, on the 2nd day of October, 2012, by the following vote: Ayes: Nays: Absent: Abstain: ATTEST: Richard Miller, City Clerk City of San Jacinto Andrew Kotyuk, Mayor PACKET PAGE: 150 AGENDA ITEM 4.1 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO ) I, Richard Miller, hereby certify that the foregoing is a true copy of Interim Urgency Ordinance No. , duly adopted at a meeting held October 2, 2012 by the City Council of the City of San Jacinto, California on the same date. WITNESS my hand and official seal of the City of San Jacinto this day of , 2012. Richard Miller, City Clerk PACKET PAGE: 151 AGENDA ITEM 4.1 REPORT OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO ON THE INTERIM URGENCY ORDINANCE ESTABLISHING A TEMPORARY MORATORIUM ON THE ESTABLISHMENT AND OPERATION OF SMOKE SHOPS AND HOOKAH LOUNGES Introduction On August 20, 2012, after conducting a noticed public meeting, the City Council of the City of San Jacinto enacted an interim urgency ordinance establishing a temporary moratorium on the establishment and operation of smoke shops and hookah lounges in the City. Pursuant to Government Code Section 65858, the interim urgency ordinance shall remain in effect for forty- five days, after which it may be extended by the City Council for an additional twenty-two months and fifteen days. II. Background to the Adoption of the Interim Urgency Ordinance In support of the interim urgency ordinance, the City Council made the following findings The unregulated development of Hookah Lounges and Tobacco Stores present immediate threat to the public health, safety and welfare. The City does not have sufficient regulations in its Municipal Code governing the establishment of Tobacco Stores or Hookah Lounges. Specifically, there are no detailed regulations regarding the development, operation or location standards for these uses. 2. Significant concerns have been raised in the community regarding the lack of current regulations to address Tobacco Stores and Hookah Lounges. Specifically, residents of the City have expressed concerns regarding the impact these uses will have on the community including safety, affect on minors, noise, location near sensitive uses and other public health impacts. 3. Many state laws have been adopted, which acknowledge the public health impacts of tobacco and specifically its affect on minors. State law prohibits public school students from smoking or using tobacco products while on campus, while attending school sponsored activities, or while under the supervision or control of school district employees (Education code § 48901). State law also prohibits smoking in playgrounds and tot lots. It also prohibits smoking within 20 feet of the main entrances and exits of public buildings (Health and Safety Code § 1(14495). b. Currently there are thirteen 'Tobacco Stores operating within the Hemet- San Jacinto area. There are seven operating within the neighboring City of Hemet. one operating within the County near the City of Hemet, five operating in the City of San Jacinto, and at least one that has proposed for the City of San Jacinto since the imposition of an interim moratorium m the City of Hemet. Residents and businesses within the City have expressed concern regarding the proliferation of such businesses located within the San Jacinto Valley. Specifically, many of ziaae 101)2%-0S9`)a11 PACKET PAGE:153 AGENDA ITEM 4.1 these establishments are located in close proximity to sensitive uses such as residential areas, churches, schools, parks, arcades and other similar uses where minors tend to congregate. 'tobacco Stores are a target for theft and vandalism and require such establishments to install retractable security bars on all doors and windows. Additionally,'fobacco Stores may be affiliated with the sale of drug paraphernalia that encourage illegal activity, which then can negatively affect the neighborhoods and surrounding community. 6. The establishment of Hookah Lounges produces secondary smoke, far more concentrated than cigarette smoke, which can negatively affect workers, passers-by, neighbors, the elderly, sick and disabled and particularly minors. Recognizing the health risks, state laws have been adopted to prohibit unlawful smoking of tobacco in hookah pipes in an enclosed place of employment (Labor Code § 6404.4) as well as prohibiting smoking of tobacco in hookah pipes by those under 18 years of age (Penal Code § 308). 7. Due to the lack of development, operation and location standards for these uses, the City desires to study new zoning regulations in order to provide clear, consistent, and uniform guidance to businesses and individuals regarding the citing and operational characteristics while also addressing significant community concerns. It is necessary for the City of San Jacinto to study the appropriate type of local regulations required for Hookah Lounges and Tobaaro Stores together with the potential impact that these establishments may have on the public's health, safety and welfare 'there exists a potential for inconsistent project review in the absence of clear direction based upon a thorough review of the City's land use goals and policies as information obtained from other cities and counties regarding the potentially positive and negative impacts that operation of Tobacco Stores and Hookah Lounges may have on the conununity. 2. The Ci tv—ot—San Jacinto is currently unde Development Code and related land use policies. g a comprehensive update to the City s 3. As part of the Development Code update, the City can study potential regulatory standards and location requirements for Hookah Lounges and Tobacco Stores, in order to determine whether and hour such standards should be integrated into the Development Code. b. The United States Supreme Court in Tahoe -Sierra Preservation Council. Inc. v. Tahoe Regional Planning Agency (2002) 535 U.S. 302 has upheld such interim planning processes and determined that they are an essential tool of successful development. The City finds that an interim prohibition on such uses and the issuance of any such applicable entitlements is necessary fora period of 45 days. 244Th 10112% 9JRI1 PACKET PAGE:154 AGENDA ITEM 4.1 Based on the foregoing, permitting new ownership, and additional establishment or operation of Hookah Lounges or'Fohacco Stores prior to completion of the Development Code update vyou'd result in the current and immediate threat to the public health, safety, and welfare. 2. An initial period of 45 days will permit City Staff to undertake an initial investigation of these mattes and recommend a course of action to the City Council. III. Measures Taken Since the Adoption of the Interim Urgency Ordinance As the City Council's findings demonstrate, the interim urgency ordinance was enacted in response to the likelihood that a smoke shop and/or hookah lounge would open before it could put into place satisfactory regulations to protect against the adverse impacts that typically accompany such establishments. "co alleviate the conditions that led to the adoption of the interim urgency ordinance, the City has taken the following steps: City staff and the City Attorney's office have conducted research into the possible and likely impacts of smoke shops and hookah lounges and into regulations for the City to adopt in order to mitigate such impacts. This includes research into the City of Hernet's recently introduced ordinance regulating such uses. City staff has not concluded its research and thus has not yet made any final recommendations to the City Council regarding the form of any permanent regulations to be imposed on smoke shops and/or hookah lounges. For this reason, the City Council has concluded that it is appropriate to extend the interim urgency ordinance for the additional statutory period of twenty-two months and fifteen days to permit City staff to complete their research, and to provide sufficient time for City staff to formulate appropriate recommendations in light of their research so that the City Council can adopt such regulation as it deems appropriate and necessary in light of those recommendations and that decision. ziaaa 1002% 9)(]1 PACKET PAGE:155 AGENDA ITEM 5.1 October 2, 2012 TO: The Honorable Mayor and Members of the City Council FROM: David Clayton, Management Analyst SUBJECT: Senior Emergency Home Repair Program Update RECOMMENDATION: Receive and File. DISCUSSION On June 19, 2012 the City Council adopted the Fiscal Year 2012/13 Budget. Twenty thousand dollars ($20,000) was allocated from the General Fund for an Emergency Senior Home Repair Program. Staff was informed that the program would be managed in-house and was directed to prepare a press release, application forms and update a list of contractors. After the press release was published in The Press Enterprise and the Valley Chronicle, and after an initial 8 applications were received. 6 contractors were contacted to bid on the various projects. Two local contractors were selected based on their knowledge about mobile homes and ability to perform the repairs in a timely fashion — Medina Mobile Horne Construction and Senior Home Repair, Inc. Medina Construction completed the handicapped ramps, and replaced a water heater and a sliding glass door. Senior Horne Repair, Inc. generally completed projects that included swamp cooler or air conditioning repair or replacement as well as water heater replacement. Moreover, Senior Home Repair, Inc. made arrangements to have an electrician diagnose and solve an electrical problem in one of the mobile homes. Both Medina Construction and Senior Home Repair, Inc. each performed 5 repair jobs in which Medina Construction will receive $12,971.33 and Senior Home Repair, Inc. has received $5,585.30. The remaining program fund balance is estimated to be $1,443.37. In all, city staff sent out 54 applications of which, 30 were completed and returned, 2 were disqualified, 10 received assistance and 18 remain on a waiting list City staff continues to receive inquiries on the status of the program from the senior community and other agencies. Emergency Senior Home Repair Program clients were very appreciative of the work performed, many of which submitted cards and letters, copies of which are attached herewith. ALTERNATIVES 1) Accept the Emergency Senior Home Repair Update. 2) Reject the Emergency Senior Home Repair Update. PACKET PAGE:157 AGENDA ITEM 5.1 FISCAL IMPACT There is approximately $1,400 remaining in the Senior Home Repair Program (CIP 04-093). Final invoices have been submitted; and staff is considering a single low cost roof leak repair which would use most of the remaining funds. ATTACHMENTS • Emergency Senior Home Repair Recipient Thank You Cards and Letters PACKET PAGE: 158 AGENDA ITEM 5.1 From: WIIIlam a er To: David riavron Subject: FW'. wheelcharc ramp Date: Wednesday, August 22, 2012 tl'.2l'56 AM Subject. wheelchair ramp Date: Wed, 22 Aug 2012 10158:42 -0700 To the city of San Jacinto We recently received a beautiful new wheelchair ramp through the Emergency Senior Home Repair Program. We would like to thank David Clayton/ Sergio Ortiz and all those involved with the application and approval process for making things easy and for completing everything quickly. Medina General Manufacturing and Housing built the ramp and did a beautiful job. They were very professional and courteous and we could not be happier. We are very grateful for this wonderful gift and want to thank all those who were responsible for making this possible. THANK YOU Bill & Judy Fetzer 1499 Old Mountain Ave. Sp 3 San Jacinto, Ca. 92583 PACKET PAGE:159 AGENDA ITEM 5.1 eN. :I - J aeknZ- L•IC 343 Jig44e1271442e Aelm.-e (azaij, y ,v -e , U dad PACKET PAGE: