HomeMy WebLinkAboutAgenda Packet - October 06, 2003 - CC r
V
AGENDA
CITY COUNCIL, THE
REDEVELOPMENT AGENCY AND
THE AZUSA PUBLIC FINANCING AUTHORITY
AZUSA AUDITORIUM MONDAY, OCTOBER 6, 2003
213 EAST FOOTHILL BOULEVARD 6:30 P.M.
AZUSA CITY COUNCIL
CRISTINA C. MADRID
MAYOR
DIANE CHAGNON IOSEPH R. ROCHA
COUNCILMEMBER MAYORPROJEMPORE
DICK STANFORD DAVE HARDISON
COUNCILMEMBER COUNCILMEMBER
I. CEREMONIAL
A. Presentation of proclamation to Maria A. Pacino in recognition of her services to the City of Azusa
as a Library Commissioner from September 2000 to September 2003.
B. Certificate of recognition to Mr. Art Vasquez of World Wide Environmental Products for his
contributions to the families of those serving our country in the military.
C. Certifications of recognition to the 2003 Summer Reading Program Contributors.
D. Presentation of proclamation to representative of the Los Angeles County Fire Department in
recognition of Fire Prevention.Month.
if. INFORMATION ITEM
A. SCHEDULE OF BUDGET AMENDMENTS FOR FY2003-04
This is an informational report. Recommendation: Receive and file.
sa
yAr
AZUSA
CONSENT CALENDAR
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: RANDY NORIEGA, DIRECTOR OF PARK PLANNING AND DEVELOPMENT
VIA: RICK COLE, CITY MANAGER ,' 'i"
DATE: SEPTEMBER 15, 2003
SUBJECT: APPROVE TWO SEPARATE RESOLUTIONS AUTHORIZING THE PARK PLANNING AND
DEVELOPMENT OFFICE TO APPLY FOR GRANT FUNDS FROM THE PER CAPITA GRANT PROGRAM
AND THE ROBERTI-Z'BERG-HARRIS BLOCK GRANT PROGRAM PROVIDED UNDER THE CALIFORNIA
CLEAN WATER, CLEAN AIR, SAFE NEIGHBORHOOD PARKS AND COASTAL PROTECTION ACT OF
2002 IN THE AMOUNT OF AND TO RECOGNIZE $344,832
RECOMMENDATION:
It is recommended that City Council authorize two separate resolutions authorizing staff to apply for grant funds
from the per capita grant program and the Roberti-Z'Berg-Harris block grant program as provided under the
California Clean Water, Clean Air, Safe Neighborhood Park and Coastal Protection Act of 2002. funds for the
grants will be recognized and appropriated in the fiscal year 2004 capital budget.
BACKGROUND:
The adoption of these two resolutions allow the City of Azusa to enter into a contract with the State Department
of Parks and Recreation and apply for guaranteed grant funds allocated to the City of Azusa from two separate
grant programs provided by the California Clean Water,Clean Air,Safe Neighborhood Park and Coastal Protection
Act of 2002 (Proposition 40).
The City of Azusa is allocated $124,832.00 in Proposition 40 Roberti-Z'Berg-Harris block grant and $220,000 in
Proposition 40 per capita program. The adopting of these two resolutions act as official notification to the State
Department of Parks and Recreation that the City of Azusa accepts the per capita and Roberti-Z'Berg-Harris grant
funds.
Upon City Council approval, the $344,832.00 grant total will be programmed into the FY 2003-04 capital
improvement program budget for park improvements as required by the proposition.
FISCAL IMPACT:
Upon approval of the two resolutions, the City of Azusa is eligible to receive $124,832.00 from the Roberti-
Z'Berg-Harris block grant and $220,000.00 from the per capita program for a total of$344,832.00. The funds
will be programmed into individual park improvement projects as part of the FY 2004 capital budget.
/dls (03-177 44 " GC /fr/9
RESOLUTION
2002 RESOURCES BOND ACT
ROBERTI-Z'BERG-HARRIS BLOCK GRANT PROGRAM
Resolution No:
RESOLUTION OF THE
CITY OF AZUSA
APPROVING THE APPLICANT TO APPLY FOR GRANT FUNDS FOR THE
ROBERTI-Z'BERG-HARRIS BLOCK GRANT PROGRAM UNDER THE CALIFORNIA
CLEAN WATER, CLEAN AIR, SAFE NEIGHBORHOOD PARKS, AND COASTAL
PROTECTION ACT OF 2002
WHEREAS, the people of the State of California have enacted the CALIFORNIA
CLEAN WATER, CLEAN AIR, SAFE NEIGHBORHOOD PARKS AND COASTAL
PROTECTION ACT OF 2002 which provides funds for the Roberti-Z'Berg-Harris Block
Grant Program for grants to eligible Applicants, and
WHEREAS, the California Department of Parks and Recreation has been
delegated the responsibility for the administration of the program within the State,
setting up necessary procedures, and
WHEREAS, said procedures established by the California Department of Parks
and Recreation require the Applicant's Governing Body to certify by resolution the
approval of the Applicant to apply for the Roberti-Z'Berg-Harris allocation; and
WHEREAS, the Applicant will enter into a Contract with the State of California
for the Project;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Azusa
hereby:
1. Approves the filing of an Application for local assistance funds from the
Roberti-Z'Berg-Harris Block Grant Program under the California Clean Water,
Clean Air, Safe Neighborhood Parks and Coastal Protection Act of 2002; and
2. Certifies that the Applicant has or will have sufficient funds to operate and
maintain the Project(s); and
3. Certifies that the Applicant has reviewed, understands, and agrees to the
General Provisions contained in the Contract shown in the Procedural
Guide; and
4. Certifies that the Grantee has or will have available, prior to commencement
of any work on the Project, the required Match; and
5. , Certifies that the Project conforms to the recreation element of any
applicable city or county general plan; and
6. Appoints the Director of Park Planning and Development as agent to
conduct all negotiations, execute and submit all documents including, but
not limited to, Applications, agreements, payment requests and so on,
which may be necessary for the completion of the Project.
Approved and Adopted on the 15th day of September, 2003.
I, the undersigned, hereby certify that the foregoing Resolution Number
was duly adopted by the Azusa City Council following a roll call vote:
Ayes:
Noes:
Absent:
Cristina Madrid, Mayor
Vera Mendoza, City Clerk
RESOLUTION
2002 RESOURCES BOND ACT
PER CAPITA GRANT PROGRAM
Resolution No:
RESOLUTION OF THE
CITY OF AZUSA
APPROVING THE APPLICANT TO APPLY FOR GRANT FUNDS FOR THE PER
CAPITA GRANT PROGRAM UNDER THE CALIFORNIA CLEAN WATER, CLEAN
AIR, SAFE NEIGHBORHOOD PARKS, AND COASTAL PROTECTION ACT OF 2002
WHEREAS, the people of the State of California have enacted the Per Capita
Grant Program which provides funds for the acquisition and development of
neighborhood, community, and regional parks and recreation lands and facilities; and
WHEREAS, the California Department of Parks and Recreation has been
delegated the responsibility for the administration of the grant program, setting up
necessary procedures; and
WHEREAS, said procedures established by the California Department of Parks
and Recreation require the Applicant's Governing Body to certify by resolution the
approval of the Applicant to apply for the Per Capita Allocation, and
WHEREAS, the Applicant will enter into a Contract with the State of California;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Azusa
hereby:
1. Approves the filing of an Application for local assistance funds from the Per
Capita Grant Program under the California Clean Water, Clean Air, Safe
Neighborhood Parks, and Coastal Protection Act of 2002; and
2. Certifies that the Applicant has or will have sufficient funds to operate and
maintain the Project(s); and
3. Certifies that the Applicant has reviewed, understands, and agrees to the
General Provisions contained in the Contract shown in the Procedural
Guide; and
4. Appoints the Director of Park Planning and Development as agent to
conduct all negotiations, execute and submit all documents including, but
not limited to Applications, agreements, payment requests and so on,
which may be necessary for the completion of Project(s).
Approved and Adopted on the 15th day of September, 2003.
I, the undersigned, hereby certify that the foregoing Resolution Number
was duly adopted by the Azusa City Council following a roll call vote:
Ayes:
Noes:
Absent:
Cristina Madrid, Mayor
Vera Mendoza, City Clerk
':30 p.m. - Convene to Regular Meeting of the City Council.
Call to Order t'
Pledge to the Flag
Invocation - Reverend Leroy of the First Assembly of God Church
Roll Call
IL PUBLIC PARTICIPATION
PersonlGroup shall be allowed to speak without Interruption up to five (5) minutes, subject to
compliance with applicable meeting rules. Quest/ons to the speaker or responses to the
speaker's questions or comments, shall be handled after the speaker has completed his/her
comments. Public Participation will be limited to sixty(60) minutes.
A. Mr.Art Ramirez, Chairman of the Azusa Golden Days Committee, to provide an update on Golden
Days events.
B. Mr. Art Morales to address Council regarding city business.
V. REPORTS, UPDATES, PENDING ITEMS AND ANNOUNCEMENTS FROM COUNCIL AND STAFF
A. Mayor Pro-Tem Rocha - Request of Dave Smith, Chairman of the Azusa Veteran's Flag
Committee, for contributions up to $1000 to maintain the Flags on Foothill Boulevard in Azusa.
/. SCHEDULED ITEMS
k. Fiscal Year 2004-2008 Capital Improvement Program Budget. Recommendation: 1) Adopt the
fiscal year 2004 - 2008 Capital Improvement Program (CIP) Budget. This will increase.
appropriations for projects in the amount of$3,597,21.2 as identified in Attachment A. This does
not include the Light and Water projects that were previously approved by the Azusa Utility Board
on September 22, 2003; and 2) Approve a budget amendment decreasing$87,500 in Proposition
12 funds and $32,500 in Mountain Cove CFD funds in;the Memorial Park Improvements project
(420038).
i
TY 2004 CIP.doc" "Attachment A.As"
10/06/03 PAGE TWO
VI. CONSENT CALENDAR
The Consent Calendar adopting the printed recommended actions will be enacted with one vote.
lfStaff or Councllmembers wish to address any item on the Consent Calendar individually, it w1A
be considered under SPECIAL CALL ITEMS
A. Approval jof Minutes. Recommendation: Approve minutes as written.
Min SeptlS.doc
B. Human Resources Action Items. Recommendation: Approve Personnel Action Requests in
accordance with Section 3.3 of the City of Azusa Civil Service Rules and applicable Memorandum
of Understanding(s).
"HR Action
Items.DOC.DOC"
C. AZUSA READS Off Campus Federal Work-Study Program Agreement with Azusa Pacific
University. Recommendation: Approve and authorize the City Manager to sign the Off-Campus
Federal Work-Study program agreement between Azusa Pacific University (APU) and the Azusa City
Library.
"Azusa Reads-APU
Agmt.DOC.rtr'
D. Updated Class Specification for Police Dispatcher and Police Dispatcher (Lateral).
Recommendation: Adopt the updated and revised class.specifications of Police Dispatcher and
Police Dispatcher (Lateral) in the Police Department pursuant to City of Azusa Civil Service Rules
Section 3.3.
"Police Dispatch "Police Dispatch tat
Reclass Rpt.DOC.doc Specs.DOC"
E. Award Contract for Police Emergency Vehicle Conversions For Seven New Ford Crown Victoria's
to Espino's Cop Shop Inc in the Amount of $21,611.24. Recommendation: Approve awarding
the contract for installing all of the emergency safety equipment on seven new police vehicles to
Espino's Cop Shop Inc., in the amount of $21,611 .24.
"Police Veh
Conversion.DOC.doC'
10/06/03 PAGE THREE
Approval of Final Map (TTM 52824-4) For Property Located at 2027 N. San Gabriel Canyon t
Road. Recommendation: Approve Final Map No. 52824-4 and authorize its recordation. ,
'Tract
Map.DOC.DOC'
;. City Investment Policy. Recommendation: Adopt Resolution No. 03-C77, re-adopting the
Investment Policy for the City of Azusa.
"Investment
Policy-City 2003-04.d
i. improve Two Separate Resolutions Authorizing the Park Planning and Development Office to
Apply for Grant Funds from the Per Capita Grant Program and the Roberti-Z'Berg-Harris Block
Grant Program Provided Under the California Clean Water, Clean Air, Safe Neighborhood Parks
and Coastal Protection Act of 2002 in the amount of and to recognize $344.832.
Recommendation: Adopt Resolution Nos. 03-C78, and 03-C79, authorizing staff to apply for
grant funds from the per capita grant program and the Roberti-Z'Berg-Harris block grant program
as provided under the California Clean Water, Clean Air, Safe Neighborhood Park and Coastal
Protection Act of 2002. Funds for the grants will be recognized and appropriated in the fiscal
year 2004 capital budget.
"Parks Grant "Park Z'BERG "Park Per Capita
Funding.doc" Reso.DOC.dOC" Reso.DOC.doc"
Request to Amend Professional Service Contract and Purchase Order with Crane Architectural
Group for Reprographic Charges and Plan Modifications to Memorial Park Restroom Project In
the Amount of$1.244.48. A Budget Transfer of$1.300.00 Is required. Approve an increase in
the amount of $1 ,245 to the professional services contract with Crane Architectural Group for
reprographic charges and plan modifications to Memorial Park Restroom Project, and approve a
budget transfer of $1 ,245 from Capital Project account 420031 (Park Planning and Development
to 41002G Memorial Park Restroom).
"Crane
ch
Parks.DOC"
1. Approval of the Azusa Health Clinic Facility located at 150 N. Azusa Avenue with El Proyecto
Del Barrio. Recommendation: Approve the lease between the City and EI Proyecto del Barrio for
the purpose of establishing a non-profit community health clinic within the City of Azusa.
"Azusa Clinic Report" "Clinic Lease
Agmt.DOC"
10/06/03 PAGE FOUR
K. Resolution Authorizing Payment of Warrants by the City. Recommendation: Adopt Resolution
No. 03-C80.
VII. REDEVELOPMENT AGENCY CONSENT CALENDAR \
The Consent Calendar adopting the printed recommended actions wil/be enacted with one vote.
if Staff or Directors wish to address any item on the Consent Calendar individually, it will be
considered under SPECIAL CALL ITEMS.
A. Approval of Minutes. Recommendation: Approve minutes as written.
"Redev Min
Sept15.doc"
B. Agency Investment Policy. Recommendation: Adopt Resolution No. 03-1136, re-adopting the
Investment Policy for the City of Azusa, Redevelopment Agency.
"Investment
Policy-RDA 2003-04.(
C. Budget Amendment Education Revenue Augmentation Fund (ERAF) Shift. Recommendation:
Approve 1) the additional appropriation of $98,210 from CBD and West End (the Merged Project)
from available debt service reserves; 2) the appropriation of$3,040 from Ranch Center; and 3) the
decrease of the Light and Water debt service payment appropriation in the Ranch Center Project by
$3,040, in order to fund the additional $101 ,250 required for the state-mandated ERAF shift.
�J
"ERAF
Payment.DOC.doc"
D. Selection of Financial Advisor For Refinancing the City of Azusa Redevelopment Agency 1994 Tax
Allocation Bonds. Recommendation: Authorize initiation of refunding the Agency's 1994 Tax
Allocation Bonds; waive the formal Request for Qualification process and approve the professional
services agreement with C.M. de Crinis &Co., Inc., to provide financial advisory services for the
bond refunding.
"CRA C.M. de Crinis "CRA C.M de Crinis&
Rpt.doc" Co••dce"
10/06/03 PAGE FIVE
Extension of Professional Services Agreement For -Economic Development/Redevelopment
Director Services Provided by Hennessey Group. Recommendation: Approve extending the
Professional Services/Contract Employee Agreement for Hennessey Group for Economic
Development/Redevelopment Director services through March 31, 2004, increase the existing
purchase order by $72,000, and authorize staff to execute the Amendment.
"Hennessey
AgmtDOC.doc"
Recognition of $348.020 of Property Tax Increment Revenues, Budget Amendment to
Appropriate $132,210 for LA County Pass Through Expenditures. $69.600 to the 20% Low/Mod
Housing Fund and Amend the Contract with HdL Coren &Cone/Property Tax Recovery in Order
to Pay for Additional Services. Recommendation: 1) Recognize $348,020 of property tax
increment revenues and to appropriate $132,210 for payment to LA County pass-through
expenditures and $69,600 to the 20% low/mod housing fund, and 2) Amend the contract with
HdL Coren &Cone Property Tax Recovery in order to pay for additional services in the amount of
$52.020.
"CRA Tax
IncrementDOC.doc"
Extension of Contract with Kosmont &Associates. Recommendation: Approve extending the
contract with Kosmont &Associates for redevelopment project management services to June 30,
2004, and authorize staff to execute the amendment.
Kosmont.DOC.doc
-1. Resolution Authorizing Payment of Warrants by the Agency. Recommendation: Adopt
Resolution No. 03-R37.
"Redev WR#05.pdP'
\J
✓III. AZUSA PUBLIC FINANCING AUTHORITY
The Consent Calendar adopting the printed recommended action wi/l be enacted with one vote.
if Staff or Directors wish to address any item on the Consent Calendar individuaOy, it will be
considered under SPECIAL CALL ITEMS.
A. Approval of Minutes. Recommendation: Approve minutes as written.
WEI
"Min APFA-July
21.doc"
10/06/03 PAGE SIX
r
B. Azusa Public Financing Authority Investment Policy. Recommendation: Adopt Resolution No.
03-P3, re-adopting the Investment Policy for the Authority.
"Investment
Policy-APFA 2003-04.
C. Selection of Financial Advisor for Refinancing the Azusa Public Financing Authority 1994 City
Certificates of Participation. Recommendation: Authorize initiation of refunding the Authority's
1994 City Certificates of Participation, waive the formal Request for Qualification process and
approve the professional services agreement with C.M. de Crinis &Co., Inc., to provide financial
advisory services for the certificate refunding.
19 59
"APFA 1994 Cert of "Professional Svs
Part.doc" Agree-APFA CM de• �,'
P
RDINANCES/SPECIAL RESOLUTIONS �Redevelo ment Plan
osed Ordinance a rovin and ado tin the Ei th
endment to the
for the Central Business District Redevelopment Plan Project Area and the Third Amendment to
the Redevelopment Plan for the West End Redevelopment Project Area. Recommendation:
- Waive further reading and adopt Ordinance No. 03-06.
"Amend Ord CRA"
X. ADJOURNMENT
A. Adjourn.
In compliance with the Americans with Disabilities Act, Ifyou need special assistance to participate in
a city meeting, please contact the City Clerk at 626-812-5229. Not/ficatlon three (3) working days
prior to the meeting when special services are needed MY assist staff in assuring that reasonable
arrangements can be made to provide access to the meeting.
10/06/03 PAGE SEVEN
*
'AZUSA!
INFORMATION ONLY
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVE KENOYER, ACTING FINANCE DIRECTOR
VIA: RICK COLE, CITY MANAGER
DATE: OCTOBER 6, 2003
SUBJECT: SCHEDULE OF BUDGET AMENDMENTS FOR FY2003/04
RECOMMENDATION
There is no recommendation. This is an informational report intended to provide the
City Council with a schedule of budget amendments for the current year to date.
BACKGROUND
The City Council requested to be informed quarterly on the cumulative effect of
budget amendments for the fiscal year.
FISCAL IMPACT
Budget amendments that are not funded by additional revenues dip into unreserved
fund balance or retained earnings as their source of funding. As of September 2003 a
total of $1,071,164 has been appropriated from various existing fund
balances/retained earnings and $413,500 from new revenues.
T
NIA
I �j
Fund Amount Description Funding Source Funding Source
General $10,000 City Council Telecommunications Fund Balance
General $3,000 LAFCO Dues Fund Balance
General $500,000 Vehicle License Fees Reduction Fund Balance
General $111,000 _Consultants for Results Based Budgeting Fund Balance
General Total $624,000
Prop C $72,000 Vechicle Acquisition-Natural Gas Para Transit Buses Fund Balance
Prop C Total $72,000
CDBG $5,000 Homework House Project Additional Revenue
CDBGTotal $5,000
Capital Projects $296,000 Transfer from Gas Tax Fund-Citywide Concrete Improvements Projects Transfers-In
Capital Projects $65,723 Transfer from Electric Fund-San Gabriel Canyon Rd.Beautification Project Transfers-In
Electric Total $361,723 _
Supplemental Law Enforcement $29,504 Additional Training,Equipment,&Supplies for Police Dept. Fund Balance
Equipment Replacement Total $29,504
Air Quality Improvement $17,000 Ride-Share Incentives Fund Balance
Air Quality Improvement Total _ $17,000
Grants/Seizures $34,868 Health Clinic Grant-Consultant Fees&Maintenance Fund Balance
Grants/Seizures $5,044 Asset Seizure Federal/Justice-Maintenance Support for CAD and RMS Systems Fund Balance
Grants/Seizures $3,400 Asset Seizure Federal/Justice-Travel Costs for CNOA Conference Fund Balance
Grants/Seizures $10,000 Asset Seizure County-Car Rental for HIDTA Task Force Fund Balance
Grants/Seizures $3,237 Miller Brewery Grant-Equipment for DUI Trailer Fund Balance
Grants/Seizures $23,897 Local Law Enforcement Block Grant-Additional Equipment for Police Dept. Add'I revenues
Grants/Seizures $22,880 Office of Traffice Safety Grant-Additional Training and OT for Police Dept. Add'I revenues
Grants/Seizures $869 Asset Seizure Federal/Treasury-Additional Equipment for Police Dept. Fund Balance
Grants/Seizures $45,042 CLEEP Grant-Additional Equipment and Computer Software for Police Dept. Fund Balance
Grants/Seizures $15,500 _Public Library Grant-Additional Materials and Supplies for Library Dept. Fund Balance
Grants/Seizures $8,000 Public Library Grant-Funding for Summer Reading Program _Fund Balance
Grants/Seizures _ $62,100 AB939 Fee-Payment to Athens Services for Recycling Service Costs Fund Balance
Grants/Seizures Total $234,837
Consumer Services $18,100 Temporary Agency Costs for Clerical Help Retained Eamings
Consumer Services Total $18,100
Water $67,500 _Orthophoto Project Retained Eamings
Water Total $67,500
Electric $45,000 Orthophoto Project Retained Earnings
Prop C Total $45,000
Equipment Replacement $5,000 Planning/Electric Vehicle Retained Eamings
Equipment Replacement $5,000 Admin/Electric Vehicle _ Retained Earnings
Equipment Replacement Total $10,000_
Grand Total $1,484,664 $1,071,164 $413,500
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1
INFORMATION ONLY
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CIN COUNCIL
FROM: STEVE KENOYER, ACTING FINANCE DIRECTOR
VIA: RICK COLE, CITY MANAGER rtl��
DATE: OCTOBER 6, 2003
SUBJECT: SCHEDULE OF BUDGET AMENDMENTS FOR FY2003/04
RECOMMENDATION
There is no recommendation. This is an informational report intended to provide the
City Council with a schedule of budget amendments for the current year to date.
BACKGROUND
The City Council requested to be informed quarterly on the cumulative effect of
budget amendments for the fiscal year.
FISCAL IMPACT
Budget amendments that are not funded by additional revenues dip into unreserved
fund balance or retained earnings as their source of funding. As of September 2003 a
total of $1,071 ,164 has been appropriated from various existing fund
balances/retained earnings and $413,550 from new revenues.
Fund Amount Descri tion Fundin Source
General $10,000 Cit Council Telecommunications Fund Balance
General $3,000 LAFCO Dues Fund Balance
General $500,000 Vehide License Fees Reduction Fund Balance
General $111,000 Consultants for Results Based BudgetingFund Balance
General Total $624,000
Pro C $72,000 Vechicle A uisition-Natural Gas Para Transit Buses Fund Balance
Prop C Total $72,000
CDBG $5,000 Homework House Project
CDBGTotal $5,000 Additional Revenue
Ca flat Pro'eds $296,000 Transfer from Gas Tax Fund-Citywide Concrete Improvements Pro'ects Transfers-In
Ca flat Pro'eds $65,723 Transfer from Electric Fund-San Gabriel Canyon Rd.Beautification Pro'ed Transfers-In
Electric Total $361,723
Supplemental Law Enforcement $29,504 Additional Trainin ,E ui ment,8 Supplies for Police Dept. Fund Balance
E ui ment Replacement Total $29,504
Air Qualit Im rovement $17,000 Ride-Share Incentives Fund Balance
Air Quality Improvement Total $17,000 -
Grants/Seizures $34,868 Health Clinic Grant,Consultant Fees&Maintenance Fund Balance
Grants/Seizures $5,044Asset Seizure FederaVJustice-Maintenance Sup ort for CAD and RMS S terns Fund Balance
Grants/Seizures $3,400 Asset Seizure Federal/Justice-Travel Costs for CNOA Conference Fund Balance
Grants/Seizures $10,000 Asset Seizure Count -Car Rental for HIDTA Task Force Fund Balance
Grants/Seizures $3,237 Miller Brewe Grant-Equipment for DUI Trailer Fund Balance
Grants/Seizures $23,897 Local Law Enforcement Block Grant-Additional Equipment for Police De I. Add'I revenues
Grants/Se $22,880 Office of I raf ice Safety Grant-Additional Trainin and OT for Police De I. Add'I revenues
Grants/Seizures $869 Asset Seizure Federalrrreasu -Additional Equipment for Police Dept. Fund Balance
Grants/Seizures $45,042 WEEP Grant-Additional Equipment and computer Software for Police De t. Fund Balance
Grants/Seizures $15,500Public Library Grant-Additional Materials and Sup lies for Libra De I. Fund Balance
Grants/Seizures $8,000 Public Library Grant-Funding for Summer Reading Program Fund Balance
Grants/Seizures $62,100 AB939 Fee-Payment to Athens Services for Mecycling Service Costs Fund Balance
Grants/Selzures Total $234,837
Consumer Services $18,100 Temporary Ageng Costs for Clerical Help Retained Earnin s
Consumer Services Total $18,100
Water $67,500 Ortho holo Pro'ed
Water Total Retained Earnings
$67,500
Electric $45,000 Ortho holo Project Retained Eamin s
Prop C Total $45,000
E ui ment Replacement $5,000 Plannin /Electric Vehicle Retained Earnings
E ui ment Replacement $5,000 Admin/Electric Vehicle Retained Earnin s
EJr ulpment Replacement Total $10,000
Grend Total $1 484,664
I
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AGENDA ITEM
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: JULIE A. GUTIERREZ, DEPUTY CITY MANAGER
VIA: RICK COLE, CITY MANAGER
DATE: OCTOBER 6, 2003
SUBJECT: FISCAL YEAR 2004-2008 CAPITAL IMPROVEMENT PROGRAM
BUDGET
RECOMMENDATION:
It is recommended that the City Council:
I. Adopt the fiscal year 2004 - 2008 Capital Improvement Program (CIP)
Budget. This will increase appropriations for projects in the amount of
$3,644,012 as identified in Attachment A. This does not include the Light
and Water projects that were previously approved by the Azusa Utility
Board on September 22,.2003; and
2. Approve a budget amendment decreasing $87,500 in Proposition 12
funds and $32,500 in Mountain Cove CFD funds in the Memorial
Park Improvements project (42003B)
BACKGROUND:
The CIP budget identifies funding for major capital improvement projects
throughout the city's infrastructure. As part of this report, staff is only
recommending funding for projects that fall within the categories of electric
projects and water projects. This year modifications have been made to
previously adopted projects and a total of three new projects have been added
to the various categories.
A
City Council -2- September 15, 2003 i
Annually, the staff goes through a process that reviews the current projects in
the CIP and determines if the project should be deleted due to completion;
modified due to a change in scope; or amended to include additional funding.
Staff also identifies new projects that need to be added to the list of capital
projects.
Attached to this report are the project pages which provide the following
information for each of the projects identified in this years CIP: fiscal
information that shows the total estimated cost of the project and fiscal year
funding appropriations; project description; justification for including this
project; scheduling of the project; the relationship of the project to the General
Plan; any special considerations regarding the project; and potential future cost
that will impact the annual operating budget. This information is intended to
provide a comprehensive overview of the capital projects.
Staff is also recommending a change to the prior year's appropriations. The
budgetary changes listed below must be recognized through the budget
amendment process so that they can be incorporated and reflected in the fiscal
year 2004 CIP budget. The Memorial Park Improvements (420036) project
includes appropriations that are also accounted for in the Memorial Park
Restroom (41002G). Therefore staff is recommending decreasing $87,500 in
Proposition 12 funds and $32,500 in Mountain Cove CFD funds. This will still
leave a total of $14,000 in Mountain Cove CFD funds, which are sufficient to
fund the tennis court resurfacing phase.
FISCAL IMPACT:
The appropriations recommended in the fiscal year 2004 Capital Improvement
Program budget total $3,64,012 from various funding sources.
2
Y
1
City Manager's Recommended Appropriation for Fiscal Year 2004
otal Est. Y 2004
Project# Project Title Project Cost Vkppropriaticin �undinq Source
Municipal Buildings& Facilities
1100A New Azusa City Library 27,640,557 384,700 eneral Fund
6101 B New Trucks for Public Works 125 000 50 000 ndowment Fund
Total Appropriations: 434,700
Streets Sidewalks &Sewers
6203A Wide— New Sidewalks 1,200,000 200,000 ndowment Fund
6103A �aitvement Management Plan 13,784,876 1,593,264 as Tax Fund
6503A ewer Master Plan 5 000 000 800 000 ewer Fund
Total Appropriations: 2,593,264
Parks& Landsca in
200#Memodal
ements 536,000 60,000 Mountain Cove CFD
55.000 eneral Fund
115 o00 otal
100room 220,000 48,000 uimby
12,500 ountain Cove CFD69.700 eneral Fund
130 200 ota100Turf 40,000 18,000 ountain Cove CFD
7 000 rop 40 RZH
25,000 otal
c
otal Est. 2004
foject# Project Title Project Cost nnronriation u ndinn So, .�
2003C Northside Park Improvements 380,848 54,848Prop 12
220,000 rop 40 Per Capita
50.000 Prop 40 RZH
324,848 otal
2003A Veteran's Freedom Park Improvements 26.000 21 000 ro 40 Per Capita
Total Appropriations: 616,048
TOTAL APPROPRIATIONS FOR FISCAL YEAR 2004 3,644,012
J•.
i
1
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Y: R
i
CITY OF AZUSA
MINUTES OF THE CITY COUNCIL
REGULAR MEETING
MONDAY, SEPTEMBER 15, 2003 - 6:30 P.M.
The City Council of the City of Azusa met in regular session at the above date and time in the
Azusa Auditorium.
It was consensus of Council to recess to Closed Session to discuss the following:
CLOSED SESSION Closed Sess
REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) - Real Prop
Address: Block 36(Foothill Blvd.,Azusa Ave.,6'St.,Alameda Ave.) Block 36
Agency Negotiators: City Manager Cole,Assistant City Manager Person and Foothill
Economic/Redevelopment Director Hennessey 6�a
Under Negotiation: Price and Terms of Payment Alameda
CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION fGov.Code Sec.54956.9(a)) Litigation
Name of Case: Frances Loera v. City of Azusa Loera vs
Court Name: Los Angeles County Superior City
Court Case No.: KC040470.
The City Council recessed to Closed Session at: 6:30 p.m. Recess
The City Council reconvened at: 7:30 p.m. Reconvened
City Attomey Carvalho of BBK advised that there was no reportable action taken in Closed
Session.
Mayor Madrid called the meeting to order and led in the Salute to the Flag. Call to Order
INVOATION was given by Samuel Martinez of the Christian Faith Center of the Valley. Invocation
Roll Call
ROLL CALL
PRESENT: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON,
MADRID
ABSENT: COUNCILMEMBERS: NONE
Also Present
ALSO PRESENT:
City Attorney Carvalho, City Manager Cole, Assistant City Manager Person, Deputy City
Manager Gutierrez,Chief of Police Davis,Community Development Director Bruckner,Utilities
Director Hsu, Director of Public Works Nakasone, Planning Secretary Rocha, Project Manager
Amador, Economic/Redevelopment Director Hennessey, Downtown Project Manager Ruiz,
Redevelopment Senior Office Specialist Hernandez,Human Relations Director Parker,City Clerk
Mendoza,City Clerk Senior Office Specialist Hernandez.
Pub Part
PUBLIC PARTICIPATION
Mr.Michael Tyner addressed Council,on behalf of Azu5an's for Responsible Growth Committee M.Tyner
(ARG), expressing concerns and Issues regarding the Monrovia Nursery referendum. Mon Nursery
Ms.Lana Grizzell addressed Council on behalf of Azusan's for Responsible Growth Committee, L. Grizzell
(ARG)expressing concerns on developments within the City. Developmen
Mr. Seamus McKeever address council on behalf of Azusan's for Responsible Growth S.McKeever
Committee(ARG),expressing concerns on issues regarding the Mello Roos Tax and Monrovia ARG
Nursery Project.
c
Mr. Craig Moyer Attorney of Manatt, Phelps &Phillips, representing Thermal Remediation Craign Moye
Services (rRS), addressed Council stating previously false allegations of toxic waste releases Toxic Waste
made by TRS. He further stated that a review by the Regional Water Quality Board was sought,
and their findings coincided with TRS findings,which proved the allegations to be false.
Discussion was held among Council,Mr.Moyer,and City Manager,regarding these allegations Discussion re
made by Mr. Inocentes at previous meetings. City Manager Cole, explained that proper TRC Toxic Wa
authorities were notified and a review was conducted. The review made by Regional Water
Quality board showed this allegations to be false.
Mr.Burke Hamilton,addressed Council thanking all involved in the City of Azusa Historical Walk B. Hamilton
Tour that took place on September 14. He also expressed his opinion regarding the Monrovia Congrats for
Nursery Project. Tour
Mr.Paul Naccachian address Council on behalf of the Downtown Azusa Business Association to P. Naccachla
give an update of their last meeting held with Councilmember Chagnon,Mayor pro-tem Rocha Down Twn B
and the d.b.a. members. The meeting was about the special event fees and other general Assoc
codes regarding the Down Town Business District. The Association is requesting from council
to support a yearly event fee that would help business do events as a common business
practice.
Chagnon
Councilmember Chagnon requested that for the meeting of October 20,a draft staff report be comments
prepared with a comprehensive event calendar that covers issues such as police use traffic and
fees for these events.
REPORTS.UPDATES,PENDING ITEMS AND ANNOUNCEMENTS FROM COUNCIL AND STAFF
Councilmember Chagnon commended the Police Department,Public Works Department and Chagnon
West Coast Arborist for their quick response and professional work on clearing up the from oak reports
tree that fell in her neighborhood. Made an announce that she will be going to Soledad next
September 18'", to attend a High Wind Dedication Project, this is where the City of Azusa
Utility Department will be purchasing 10%of the utility power,several members of the Utilities
Department will be attending with her.
Mayor Pro-tem Rocha, thanked the Friends of City of Azusa Library for the City of Azusa Rocha
Historical Walk Tour held on September 14. Commended the community for their support to reports
the service people in Iraq,and Informed that all the supplies that were donated are ready to be
shipped out on September 18. Extended an invitation to all who wished to attend bingo night
on September 18,sponsored by the Azusa Golden Days Committee. Made an announcement
of the City Links and the treasures and white elephant sales that will be taking place on
September 20. Extended his congratulations to Ms.Laura Botunda,who has made a difference
for the children of Foothill Middle School,Ms. Botunda was named Azusa's Hero by the Los
Angeles County Fair in Pomona,where she will be recognized with a plaque on September 22,
and requested that he be permitted to attend on behalf of Council to this presentation. The
residents who live in Pasadena, Hollyvale and Third,are thankful for the clean up of the alley.
Councilmember Stanford announced that the San Gabriel Valley Mosquito Vect Control found a Stanford
dead crow in the City of Arcadia, and was sent out to the lab where it was found to be reports
contaminated with the West Nile Virus. This virus can be deadly and is very hard on people
with respiratory problems, everyone should to take it seriously, be aware, and remove any
standing water to help prevent it from spreading. The Gold Line 2 turned to possible legislation
to establish the construction similar to Gold Line 1,difficulties are being faced on the efforts to
ensure Its construction, however,this project will move forward overcoming all obstacles.
Mayor Madrid reminded everyone of Golden Days that will begin on October 4,and thanked all Madrid
the volunteers Involved in the Golden Days Parade who have made it successful. Announced reports
that applications are still being accepted for Boards and Commissions,as well as for the meter
reader position. Made a brief comment on her visit to Tempe Town Lake.
City Manager Cole gave a report on proposed Neighborhood Partnerships Implementation. Cole Neighbo
Currently much communication has been done with the citizens,which has helped improve Partnership
.certain areas. The goal Is to do one neighborhood at a time. He further requested support Implementat
from Council to move this project forward by approving his recommendation.
09/15/03 PAGE TWO
r'g Mayor Pro-tem Rocha addressed the Issue, reinforcing Manager Cole's Information and Rocha
l a commended on the success of Neighborhood Improvement Zone (NIZ)#I and#2. comments
r Councllmember Chagnon expressed her concerns regarding this project. She did not oppose Chagnon
to it being implemented,however due to budgetary issues she requested that this project be expreses
postponed until February of next year in order to focus on how the money is being spent. concerns
Discussion was held among Councilmembers that it would be to the benefit of the City to First Dicussion re
focus on public strategies now in place,adopt the general plan,and also to see the possibility Project
to of merging this program with the NIZ programs to better strategize and they do not overlap
with each other;how to build on resources that are currently in place and merge them Into tax
discussion.
City Manager Cole addressed Council suggesting to pick all best ideas and put efforts on R. Cole
neighborhood based budget strategy, postpone integration, implement this philosophy in comments
February after working on it through the budgeting process.
Moved by Councilmember Stanford,seconded by Councilmember Hardison and unanimously Postpone
carried,to postpone implementation of items: 1.Inventory of assets,leaders,Issues and plans Implementat
in the neighborhood; 2. Informal outreach to already active community leaders (citizens Neighborhoo
Congress members, City Commissioners,School Site Council members, business,church and Partnership
other civic activists); 3.An informal kick-off"City Hall in the Neighborhood"event(these to be to Feb 2004
staggered over the year.One per quarter);and 4.Follow-up formal meeting to Introduce effort,
select interim leadership and work on creating Neighborhood Partnership effort,until February,
2004, and work with the public strategies group results based budgeting efforts to help lay
down the ground work for this program,
Azusa City Clerk Vera Mendoza addressed Council to give an update on the upcoming V.Mendoza
governmental recall election of October 7. Even though the courts blocked the election,it was Info on
instructed Connie McCormick of the Registrar Recorder's office,to continue business as usual Election of
at least for the next 7 days, which is the time allowed to appeal this decision. She further October 7
announced the last day to register to vote is Nov. 22 and the last day to request an absentee
ballot is September 30. Any registered voter in the county can vote at any location in the
county where they have touchscreen voting available. Additional Information may be obtained
in your sample ballot.
CONTIContinued ite
NUED ITEMS
THE CITY COUNCIL CONVENED JOINTLY WITH THE REDEVELOPMENT AGENCY AT 8:45
P.M.TO CONDUCT THE FOLLOWING JOINT PUBLIC HEARING:
Councllmember Chagnon recluse herself due to a conflict of interest, she stepped down from Chagnon ste
down dais
the dais.
Attorney Carvalho stated that Councilmember Stanford was able to participate due to issues
resolved in regards to Azusa Pacific University.
CONTINUED IOINT PUBLIC HEARING-on the amendment to the Central Business District and Joint Hearing
West End Redevelopment Projects and the proposed amendment to the Implementation Plan West End CR
Plan
for the Projects.
Mayor/Chairwoman Madrid Introduced the hearing giving a summary of events that took place
at previous meetings regarding this public hearing.
Economic/Redevelopment Director Hennessey addressed the hearing providing a power point M Hennesey
presentation that showed a map of the Redevelopment Area,and pointed out the addressees addressed
that are within the Plan Project. He further stated that since the last meeting, much hearing
communication has been received from Azusa Pacific University (APU) in response to the
language,having to do with the potential use of their property. It was recommended to make a
change in the plan amendment to state: if APU were in effect,the specific plan would rule for
their future use of properties within the project area,APU and others,APU would be subject to
the executive director's approval for arry future plans and would have to abide to the specific
plan being approved today. APU requested additional language, which upon reviewed by
Redevelopment Legal Council has been sufficient,it revises the last sentence of section 405 of
the plan amendment, and reads as follows:
"Except to the extent governed by a Specific Plan, the Agency may Impose such other
reasonable restrictions as are necessary to protect the development and uses in the Merged
Project area."
09/15/03 PAGE THREE
City Manager/Executive Director Cole, discussed the issue on the City Attorneys language R Cole F
change to The Foothill Center Eminent Domain Use. He introduced Mr. Larry Arsenal who comments
explained that regarding the change on the bonding indebtedness of the redevelopment plans, d
were two plans for the two separate areas and each had their own separate limits. With this
change, they now have been merged, and money can flow between the two projects and
support each other.
Mayor/Chairwoman Madrid read a change that was made to the staff report under the Madrid
acquisition of real property that read as follows: comments
"Furthermore,prior to the 4'anniversary of the effective date of the ordinances that adopt this
amendment and restated redevelopment plan the agency my not acquire by condemnation any
property located within that portion of the project area identified as area 10 and the project's
areas with legal description unless such condemnation is requested in writing by the property -
owner." Project Area 10 is the Foothill Center.
The hearing was re-opened to hear testimony from the public regarding the described change Hrg re-open
on the acquisition of eminent domain on real property for the Foothill Center.No testimony was closed
received and the Mayor/Chairwoman closed the hearing.
Councilmember/Director Stanford asked if eminent domain could be extended to other R Cole
properties. Manager Cole/Executive Director,explained that in order to extend eminent domain comments
to other properties, a new process would have to take place such as the one being finalized.
This project approved is only affecting the properties presented on this hearing.
Mayor Pro-tem/Co-Chairman Rocha stated that the only properties he will approve for eminent Rocha
domain are:the Foothill Center,area#10;comer of Newburgh,empty gas station,and parcel comments
adjacent, area#14;and North East corner of Arrow Highway and Azusa,area#12,and South
West Corner of Foothill and Pasadena. Al other property owners in the Downtown Area,have
made concentrated efforts to improve themselves,and this should be taken into consideration
before exercising eminent domain.
Motion to I
Motion was made by Mayor/Chairwoman Madrid to limit eminent domain power to only those eminent dour
properties described by Mayor Pro-tem/Co-Chairman Rocha, motion died for lack of second. (died)
Light discussion was held among council/directors in which staff explained that this is a long Light discuss
process and more work needs to be done through other procedures before eminent domain is
enforced.
Chairwoman Madrid offered a Resolution entitled:
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITYOF AZUS FINDING THAT THE Res 03-R31
USE OF TAXES ALLOCATED FROM THE MERGED PROJECT AREA, FOR THE PURPOSE OF Taxes allocat
IMPROVING, INCREASING, AND PRESERVING THE COMMUNITY'S SUPPLY Of LOW AND from merged
MODERATE INCOME HOUSING OUTSIDE THE MERGED PROJECT AREA WILL BE OF BENEFIT project
OT THE MERGED PROJECT AREA-
Moved
REAMoved by Director Hardison, seconded by Director Stanford to waive further reading and
adopt. Resolution passed and adopted by the following vote of the Agency:
AYES: DIRECTORS: - HARDISON, STNAFORD, ROCHA,MADIRD
NOES: DIRECTORS: NONE
ABSTAIN: DIRECTORS: CHAGNON
Chairwoman Madrid offered a Resolution entitled:
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING THE Res 03-R32
EIGHTH AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE CENTRAL BUSINESS a amend to
DISTRICT REDEVELOPMENT PROJECT AND THIRD AMENDMENT TO THE REDEVELOPMENT CRA Plan Cen
PLAN FOR THE WEST END REDEVELOPMENT PROJECT. Buss Dist
Moved by Director Stanford, seconded by Director Hardison to waive further reading and
adopt. Resolution passed and adopted by the following vote of the Agency:
AYES: DIRECTORS: HARDISON,STNAFORD,MADIRD
NOES: DIRECTORS: ROCHA
ABSTAIN: DIRECTORS: CHAGNON
Chairwoman Madrid offered a Resolution entitled:
09/15/03 PAGE FOUR
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSAAPPROVING AND Res 03-R33
R� ADOPTING AN AMENDMENT OT THE FIVE-YEAR IMPLEMENTATION PLAN FOR THE MERGED 5 year
PROJECT AREA. Implementat
plan
Moved by Director Hardison,seconded by Chairman Rocha to waive further reading and adopt.
Resolution passed and adopted by the following vote of the Agency:
AYES: DIRECTORS: HARDISON, STNAFORD, ROCHA,MADIRD
NOES: DIRECTORS: NONE
ABSTAIN: DIRECTORS: CHAGNON
Mayor Madrid offered a resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA FINDING THAT THE USE OF Res 03-C71
TAXES ALLOCATED FORM THE MERGED PROJECT AREA,FOR THE PURPOSE OF IMPROVING, Taxes allocat
INCREAING AND PRESERVING THE COMMUNITY'S SUPPLY OF LOW AND MODERATE INCOME from Merged
HOUSING OUTSIDE THE MERGED PROJECT AREA WILL BE OF BENEFIT TO THE MERGED Project
PROJECT ATEA.
Moved by Mayor Pro-tem Rocha, seconded by Councilmember Stanford to waive further
reading and adopt. Resolution passed and adopted by the following vote of the Council:
AYES: COUNCILMEMBERS: HARDISON,STNAFORD, ROCHA,MADIRD
NOES: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: CHAGNON
Mayor Madrid offered a resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,CALIFORNIA CERTIFYING Res 03-C72
THE FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE PROPOSED certify
AMENDMENTS TO THE REDEVELOPMENT PLANS FOR MERGED CENTRAL BUSINESS environment
DISTRICT AND WEST END REDEVELOPMENT PROJECTS AND ADOPTING ENVIRONMENTAL report
FINDINGS PURSUANT TO THE CALIFORNIA ENVIRIOMENTAL QUALITY ACT, AND A
STATEMENT OF OVERRIDING CONSIDERATIONS, AND MITIGATION MONITORING
PROGRAM.
Moved by Councilmember Hardison, seconded by Councilmember Stanford to waive further
reading and adopt. Resolution passed and adopted by the following vote of the Council:
AYES: COUNCILMEMBERS: HARDISON,STNAFORD, ROCHA,MADIRD .
NOES: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: CHAGNON
Mayor Madrid offered a resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA OVERRULING WRITTEN Res 03-C73
AND ORAL OBJECTIONS AND ADOPTING WRITTEN FINDINGS IN RESPONSE TO WRITTEN overruling
OBJECTIONS RECEIVED FROM AFFECTED PROPERTY OWNERS AND TAXING ENTITIES AND objections
OVERRULING SUCH WRITTEN OBJECTIONS TO THE EIGHTH AMENDMENT TO THE
REDEVELOPMENT PIAN FOR THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT
PROJECT AND THE THIRD AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE WEST
END REDEVELOPMENT PROJECT AREA.
Moved by Councilmember Hardison, seconded by Mayor Pro-tem Rocha to waive further
reading and adopt. Resolution passed and adopted by the following vote of the Council:
AYES: COUNCILMEMBERS: HARDISON.STNAFORD, ROCHA. MADIRD
NOES: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: CHAGNON
Mayor Madrid offered an Ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING AND Ord introduc
ADOPTING THE EIGHTH AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE ga amend pi
ECENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT AREA AND THE THIRD Central Buss
AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE WEST END REDEVELOPMENT District
PROJECT AREA.
Moved by Councilmember Hardison,seconded by Councilmember Stanfrod and carried by roll
call vote to waive further reading and Introduce the Ordinance. Mayor Pro-tem Rocha voting no
and Councllmember Chagnon abstained.
09/15/03 PAGE FIVE
THE REDEVELOPMENT AGENCY RECESSED AND THE CITY COUNCIL CONTINUED AT 9:27 CRA recess
P.M.
40
Councilmember Chagnon, returned to the dais.
SCHEDULED ITEMS
Sched Items
PUBLIC HEARING-to consider valid requests with regard to the Expenditure plan for State and
Federal Awarded Grant Fund: Local Law Enforcement Block Grant(LLEBG)and Citizens Option Pub Hrg
for PUBLIC safety Grants (COPS) for fiscal year 2003-04. LLEBG A CO
Funds
The Mayor declared the Hearing open. The City Clerk read the affidavit of proof of publication
of notice of said Hearing published in the Azusa Herald on September 4, 2003. Hrg open
Chief of Police Davis addressed the Issue stating that this Is a standard request for Federal and
Local grants, Local Law Enforcement Block Grant(LLEBG)and Citizens Option for Public Safety Chief Davis
Grant(COPS). He explained that some grants are from this year and some from last year. He addressed
is requesting that he may be allowed to make use of these funds as indicated on his staff hearing
report. He proceeded to respond to questions posed by Council, which consisted of the
following: the Laser Measuring System,the Sights G36 and the Helicopter Flight Suit.
No public participation or comments were received.
Moved by Councilmember Chagnon, seconded by Mayo Pro-tem Rocha and unanimously
carried to close the Public Hearing. Close Hrg
Moved by Councilmember Stanford,seconded by Councilmember Chagnon,and unanimously
carried to include appropriations of funds to be received from the State Citizens' Option for Apv COPS&
Public Safety(COPS) Program and Local Law Enforcement Block Grant(LLEBG). LLEGB Funds
The CONSENT CALENDAR consisting of Items VI-A through VI-H was approved by motion of
Mayor Pro-tem Rocha,seconded by Councilmember Chagnon and unanimously carried,with Cons Cal
the exception of items VI-D S,VI-E,which were considered under the Special Call portion of the VI-A&E
Agenda. Spec Call
A Minutes of the regular meeting of September 2; adjourned regular meeting of April 29,
June 9,June 30, and July 14;Special Meeting of May 12,were approved as written. Minutes
B. Human Resources Action Items were approved as follows:
Merit Increase and/or Regular Appointments: S.Seffer, R.Tortes. H.R.Action
New Appointments: Q. Burgett,J.Anderson. Items
C. The City's Treasurer's Report as of August 31, 2003,was approved as written.
D. SPECIAL CALL ITEM. Treas Rprt
E. SPECIAL CALL ITEM. Spec Call
Spec Call
F. The Utility Agreement between the City of Azusa and the State of California Department of
Transportation,regarding relocation of existing electric utility facilities located within limits Util Agmnt
of State's Route LA-210 Freeway crossing First Street Bridge in City of Azusa, was CalTrans
approved. Authorization was given to the City Manager or his designee to execute the relocate util
same. facilities
LA-210 FW
G. The following resolution was approved and adopted:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA,
AMENDING RESOLUTION NO. 02-C68 TO AUTHORIZE AN ASSIGNMENT OF RIGHTS, Res 03-C74
OBLIGATIONS AND DUTIES FOR THE COMMUNITY-BASED TRANSPORTATION Joint Agmnt
PLANNING GRANT. CalTrans
H. The following Resolution was approved and adopted:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ALLOWING CERTAIN
CLAIMS AND DEMANDS AND SPECIFYING THE FUNDS OUT OF WHICH THE SAME ARE Res CO3-C75
TO BE PAID. Warrant
SPECIAL CALL ITEMS
Sepc Call
09/15/03 PAGE SIX
City Manager Cole addressed the item regarding the contract with Public Strategies Mngr Cole
Group, and requested a correction be made on the recommendation. He stated that comments
staff negotiated a cap on this contract for no more than$11,100. He further explained Strategies
' that Public Strategies will help do a comprehensive,one time effort to rebuild the city Group
government.
Marianne Miasnik, member of the task force,addressed the issue stating that there is a
need to take an approach by looking internally as well as externally. The original
objective was defined also tax fairness and equity, not suspending current efforts and M.Miasnik
look at other sources of revenue to make it more equitable for all tax payers. comments
Discussion and question and answer session was conducted among councilmembers
and City Manager Cole regarding Public Strategies Groups.
Moved by Councilmember Stanford, seconded by Mayor Pro-tem Rocha and Discussion
unanimously carried, to authorize the City Manager to approve a contract with Public
Strategies Group in the amount of$100,000 for consultant services on results based pppvd Public
budgeting; authorize the attached budget amendment to appropriate$100,000 from Strategies Gr
the General Fund to cover the cost for the contract; and the amendment of$11,100 &addtl $11.
cap. gap
Councilmember Hardison addressed the item regarding the award of Year #2 of the
Pavement Management Improvement Project. He expressed his concerns to Public
Works Director Nakasone that he wants to make sure that R&W will do a proper job, Hardison
which will benefit the city. concerns
Pavement
Moved by Mayor Pro-tem Rocha, seconded by Councilmember Chagnon and Mngmnt Pro
unanimously carried, to authorize Public Works staff to award bid for inspection
services for both the slurry seal application and cape seal application portions of the
Year #2/FY 2003-2004 Pavement Management Improvement Project to the second Appvd Pavem
lowest bidder, R&W Highway Inspection in an amount not to exceed $18,000. Mangmnt Im
Pro].
THE CITY COUNCIL RECESSED AND REDEVELOPMENT AGENCY CONVENED AT 9:43 P.M. R&W
THE CITY COUNCIL RECONVENED AT 9:45 P.M.
Mayor Madrid congratulated those employees who received a step Increase and the new Cncl Recess
appointments. CRA Recess
It was consensus of Councilmember to adjourn the meeting.
Mayor Madri
congrats to
TIME OF ADJOURNMENT:9:50 P.M. employees
Adjourn
CITY CLERK
NEXT RESOLUTION NO. 2003-C76.
NEXT ORDINANCE NO. 2003-06.
09/15/03 PAGE SEVEN
�y oma,
CITY OF AZUSA
MINUTES OF THE CITY COUNCIL
SPECIAL MEETING
MONDAY,JUNE 30, 2003 - 7:00 P.M.
The City Council of the City of Azusa met in Adjourned Regular session, at the above date and
time in the Azusa Lit and Water Department located at 729 North Azusa Avenue, Azusa,
California.
Mayor Madrid called the meeting to order. Call to Order
ROLL CALL
Roll Call
PRESENT: COUNCILMEMBERS: HARDISON,STANFORD, CHAGNON, MADRID
ABSENT: COUNCILMEMBERS: ROCHA
ALSO PRESENT: Also Present
City Manage Cole, Community Development Director Bruckner, Economk/Redevelopment
Director Hennessey,City Clerk Mendoza, Deputy City Clerk Toscano.
PUBLIC PARTICIPATION Pub Part
None. None
Workshop regarding the Foothill Sh000ing Center. Workshop
Foothill Ctr
City Manager Cole provided an overview of the issue,and Introduced Mr.J.Allen Radford,owner City Mgr
of the property. Comments
Mr. Radford addressed Council and Introduced his team consisting of his Architects, Land Use J.Allen Radford
Attorney and partners. He provided a brief history regarding the shopping center and presented Comments
four options for the property. The first option was a"big box"which would consist of a big store,
and retail use on the property. The second option consisted of town homes, retail,apartments
and motor homes. The third option consisted of more retail, less apartments, less motor cove
homes. All options included the possibility of a market. He presented a partial fourth option with
230 condos and commercial area, but requested direction from Council. He also stated that
another option would be to paint and re-tenant the center. The architects addressed the issue and
presented additional detail on each option and how they arrived at those particular layouts.
Discussion was held regarding the options presented; each Councllmember asked questions Discussion
regarding the options presented. Mayor Madrid and Councilmembers Chagnon and Hardison Cncl
expressed concern regarding too many apartments and reiterated that they could not support Comments
them.
Moved by Councllmember Chagnon, seconded by Councilmember Hardison and unanimously Adjourn
carried to adjourn.
TIME OF ADJOURNMENT:8:20 P.M.
CITY CLERK
NEXT RESOLUTION NO. 03-C68.
CITY OF AZUSA
MINUTES OF THE CITY COUNCIL
SPECIAL REGULAR MEETING
TUESDAY, SEPTEMBER 23, 2003 - 6:30 P.M.
The City Council of the City of Azusa met in Special session, at the above date and time in the
Azusa Light and Water Department located at 729 North Azusa Avenue,Azusa,California.
Mayor Madrid called the meeting to order. Call to Order
ROLL CALL Roll Call
PRESENT:. COUNCILMEMBERS: HARDISON,STANFORD,ROCHA.CHAGNON,MADRID
ABSENT: COUNCILMEMBERS: NONE
ALSO PRESENT: Also Present
Assistant City Manager Person, Community Development Director Bruckner, Director of Park
Planning and Development Noriega, Urban Forester Montes,Park Supervisor Chavez,Director of
Recreation and Family Services Jacobs,Azusa Unified School District Board Members: Monin
Cruz Gonzalez,Ilene Ochoa,Jose Torres,Park and Recreation Commissioners: David Santellan,
Pam Mercado and Tiffany Hamilton Adamson,Architectural Barriers Commissioner Barcelo,City
Clerk Mendoza, Deputy City Clerk Toscano.
PUBLIC PARTICIPATION Pub Part
None. None
Director of Park Planning and Development Noriega addressed Council Introducing the Park Master Presentation
Plan and also introducing RJM Design members Bob Meeding Pam Wooldridge and Cheryl Parks Master
Gonzales who formally presented the Azusa Park Master Plan. The plan consisted of the following. Plan
Community Analysis,Needs Assessment,and Framework for Future Decisions.
After the presentation,a question and answer session was held among all present. Mayor Madrid Question a
requested additional background Informationlexplanation on the terms: psycho-graphic profile, Answer Session
West Coast Immigrants,Thriving Immigrants,and South Western Families Populations. Director
of Park Planning and Development Noriega stated that he will provide Coundlmembers with a
detailed version on the Azusa Park Master Plan.
Additional discussion was held between Councllmembers regarding prioritizing projects, the Discussion
possibility of Architectural Barriers Commission and Park and Recreation Commission to meet
regarding Items of mutual interest regarding the Plan,and the vital need for parenting programs,
etc.
Councilmember Chagnon expressed her appreciation to Director of Park Planning and Chagnon
Development Noriega for gathering members of AUSD Board,Park and Recreation Commission, Comments
ABC and other members of the public to attend the presentation which was an excellent
Innovative vision of'Parks and programs for youth to develop and families to prosper'in Azusa.
It was consensus of Coundlmembers adjourn in memory of Jeannie Cole. Adjourn
TIME OF ADJOURNMENT: 8: 14 P.M.
CITY CLERK
NEXT RESOLUTION NO. 03-C77
c'tur-bar`s
CONSENT CALENDAR
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MERLE WYNN, ACTING HUMAN RESOURCES MANAGER
VIA: RICK COLE, CITY MANAGER
DATE: OCTOBER 6, 2003
SUBJECT: HUMAN RESOURCES ACTION ITEMS
RECOMMENDATION
It is recommended that the City Council approve the following Personnel Action Requests in accordance with Section
3.3 of the City of Azusa Civil Service Rules and applicable Memorandum of Understanding(s).
BACKGROUND
On September 23, 2003,the Personnel Board confirmed the following Department Head recommendation(s)regarding the
following Personnel Action request(s).
1. MERIT INCREASE AND/OR REGULAR APPOINTMENT:
u — �� QTY-PE OT WAC N F 'RANG E/5 E1'AMM
DEPT,. NAME: x '_CLASSIFICATION (EFFECTIVE DATE BASEMO.'SALARY;UM .
CD Fabiola Wong Associate Planner Reg Appt 4201/3
8-14-03 $4,499.75
PD Ericka Ceccia Police Administrative Technician Merit Inc 4174/3
9-18-03 $3,478.68
PW Steve Sandoval Street Maintenance Crew Supervisor Reg Appt 4184/5
9-4-03 $4,200.29
UTL Sallie Acero Customer Care Operations Merit Inc 5203/5
Supervisor 9-24-03 $5,268390
UTL Santiago Cabral Meter Reader Merit Inc 5179/3
9-18-03 $3,841.42
UTL Warren Mandigo Meter Reader Merit Inc 5179/3
9-25-03 $3,841.42
2. NEW APPOINTMENT: The following appointments have been requested by department heads pursuant to
the Rules of The Civil Service S stem.
DEI'T� =NAME i'CIASSIFICA'F]ON 3Ell` VIE r ¢RANGE/STEP
[1ATE BASE MO. SALARY.
PD JoAnn Hernandez Police Dispatcher To be determined 9164/1
$2,989.69
3. RECLASSIFICATION—The following reclassification has been requested by the department head and is being
made in accordance with the Ci of Azusa Rules of the Civil Service S stem, Section 3.8. Reclassification.
DE[7 rcNAME 'C1ASSIFICATIONIFROM/To EEFEECTIVE RANGE/SiEP
_ DATE. iBASE1410YSAlARY
IT Cristina Gomez-Morales Computer Operator to Information 10-7-03 1418813
Technoloev Ana st $4,155.95
4. SEPARATIONS: The followin se aration s are submitted for informationalur oses
}DEPARTMENT: NAME{ ° '' � 'CEASSIFICATION $� , �EFFEC7IUE DATE_
Human Resources Victoria Cross I Director of Human Resources 9-11-03
FISCAL IMPACT
Sufficient funds exist in the approved departmental budgets to cover the salary changes. Salary savings realized from vacant
positions are utilized to underfill positions with temporary hires and/or to offset overtime costs.
. c�F.-
U
CONSENT ITEM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ALBERT TOVAR, LIBRARY DIRECTOR
VIA: RICK COLE, CITY MANAGER
DATE: OCTOBER 6, 2003
SUBJECT: AZUSA READS, OFF-CAMPUS FEDERAL WORK-STUDY PROGRAM AGREEMENT
WITH AZUSA PACIFIC UNIVERSITY
RECOMMENDATION
It is recommended that the City Council approve and authorize the City Manager to sign the
attached Off-Campus Federal Work-Study program agreement between Azusa Pacific
University (APU) and the Azusa City Library.
BACKGROUND
The mission of the Azusa Reads program is to equip and encourage the elementary school
children of Azusa in developing literacy skills through a free after-school tutoring program.
Effective July 1, 2000, new Federal Work Study (FWS) requirements stated that higher
education institutions would be required to use at least 7% of their total FWS allocation to
employ students in community services jobs. Additionally, these institutions must employ
one FWS student as a reading tutor for preschool, elementary school or a family literacy
project.
In order for APU to meet the Federal requirements and receive their funding, it has chosen to
continue its participation in the America Reads Program. As a result, the Office of Community
Service Learning and Student Employment Services have again contacted the Azusa City
Library for continuance of the Azusa Reads Program (local name) at the Azusa City Library.
Description of the Azusa Reads Program
Azusa Reads operates from the Azusa City Library. This program provides 20 after-school
1
tutors at the Azusa City Library to assist preschool and elementary students in reading. The
program is coordinated through the Office of Community Service Learning. An assigned
coordinator works with City Library staff, and tutors to facilitate the implementation of this '
program. All recruitments, training, placements and supervision of the tutors are the
responsibilities of the APU coordinators. City Library staff provides some training, especially
local logistics and a basic orientation and welcome for the program's tutors.
FISCAL IMPACT
There is no fiscal impact on the Library's budget. All funds to support this program are
provided by APU through the Federal Work-Study Program.
2
2003-2004
OFF-CAMPUS FEDERAL WORK-STUDY PROGRAM
AGREEMENT
This agreement is entered into between Azusa Pacific University, hereinafter known as the "Institution,"
and City of Azusa Library, hereinafter known as the "Organization" for the purpose of providing work to
students eligible for the Federal Work-Study Program (FWS).
The Institution shall attach schedules to this Agreement from time to time which set forth brief
descriptions of the work each student will perform, the total number of participating students, the hourly
rate of pay, the average number of hours per week each student will work, and the maximum amount of
wages each student may receive. Each schedule shall bear the signature of a duly authorized official of
the Institution.
I.
to the Organization students for the performance of specific work
The Institution will make available g
Assignments. Students may be removed from work on a particular assignment or from the Organization
or Institution, either on their own initiative or at the request of the Organization or Institution. The
Organization agrees that no student will be denied work or subject to different treatment under this
Agreement on the grounds of race, color, national origin, religion, sex, marital status, age, disability, or
veteran status.
The work described in any Schedule attached to the Agreement shall satisfy the following requirements:
1. The work will be in the public interest.
2. Students working under the Agreement will not displace or replace permanent employees
or impair existing service contracts. If the Organization has an employment agreement
with an organization in the private sector, the Organization's employees must not be
replaced with FWS students.
3. The work will not involve political activity associated with a candidate or with a
contending faction or group in an election for public or party office, and will not involve
lobbying on the federal, state, or local level.
4. The work will not involve construction, operation, or maintenance of any facility used,
or to be used, for sectarian instruction or as a place of religious worship.
5. No student will work more than 19.5 hours weekly during periods of enrollment. No
student will work during periods of non-enrollment. The Fair Labor Standards Act of
1938, as amended, prohibits employers (including schools) from accepting voluntary
services from any paid employee.
6. A student can only be paid for hours worked and may not be paid for lunch, vacation,
holiday, sick days, or other hours not actually worked.
T
a
The Institution agrees to pay 100 percent of the total wages earned by a student under this agreement up
to the assigned maximum earnings. The Organization will pay 100 percent of wages earned in excess of
the total assigned maximum earnings. The Institution will pay 100 percent of the total wages during a
student's training period (training to be provided by the Organization).
lII.
Neither the Institution nor the Organization shall provide or pay for a student's transportation expenses to
and from the place where he or she regularly performs services for the Organization.
IV.
Azusa Pacific University students working under the Federal Work-Study Program are eligible for
workers' compensation benefits provided that they adhere to Azusa Pacific University published
guidelines regarding such benefits. The Institution agrees to pay for workers' compensation benefits that
an Azusa Pacific student may be eligible for while working at the Organization.
V.
This agreement supersedes all previously dated cooperative agreements for the Federal Work-Study
Program and terminates on June 30, 2004. Either party may terminate this agreement by providing a
thirty(30)day written notice to the other party.
In Witness Thereof, The Institution and Organization have executed this Agreement this day
of 2003.
Institution: Organization:
Azusa Pacific University City of Azusa Library
901 E. Alosta Avenue
Azusa, CA 91702
By: Joan Singleton By: Rick Cole
CFO University Services City Manager
Signature Date Signature Date
FEDERAL WORK-STUDY PROGRAM SCHEDULE
2003-2004
Description of work to be performed by Azusa Pacific University students:
Reading Mentors for children in elementary grades
Number of students to be employed: 12-17 (depending on
availability of students)
Hourly orate f pay: $7.15-7.35
P
Weekly amount of hours allowed per student: 10 - 19 1/2 hours per week
Institution: AZUSA PACIFIC UNIVERSITY
By Date:
Organization: AZUSA PUBLIC LIBRARY
By Date:
y' 4"V1
4 Va:
6 U�� ; *
a
CONSENT ITEM
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
w4vp,
FROM: LACTING HUMAN RESOURCES MANAGER
VIA: RICK COLE, CITY MANAGER AL
DATE: October 6, 2003
SUBJECT: UPDATED CLASS SPECIFICATION FOR POLICE DISPATCHER AND POLICE
DISPATCHER (LATERAL)
RECOMMENDATION
It is recommended that City Council, upon recommendation of the Personnel Board,
adopt the updated and revised class specification of Police Dispatcher and Police
Dispatcher (Lateral) in the Police Department pursuant to City of Azusa Civil Service
Rules Section 3.3.
BACKGROUND
The class specifications for the positions of Police Dispatcher and Police Dispatcher
(Lateral) were last updated in 1992. A recent review of the existing class specification
for the above listed positions revealed the need for an update to increase the typing
speed to 40 net words per minute.
We surveyed other cities and also consulted with subject matter experts and
concluded the typing speed is too low. An increase in the speed requirement from
the current 25 wpm to 40 wpm will remedy the slow input experienced by new
trainees when working with the AZPD Computer Aided Dispatch System.
FISCAL IMPACT
There is no fiscal impact as the salary and benefits remain unchanged.
Attachments: Police Dispatcher Class Specification
Police Dispatcher (Lateral) Class Specification
i
Y
Date Adopted: 11-2-92
Class Code: 7330
CITY OF AZUSA
POLICE DISPATCHER
DEFINITION
Under general supervision, receives requests for law enforcement services and dispatches units via radio;
maintains contact with department personnel in the field; performs related duties as required.
CLASS CHARACTERISTICS
This is the journey level class and incumbents are required to perform the full range of dispatching duties.
In addition, Police Dispatchers may assist with the training of less experienced personnel.
ESSENTIAL FUNCTIONS
These functions may not be present in all positions in this class. When a position is to be filled, the
essential functions will be noted in the announcement of position availability.
Receives requests for police or other emergency services over the phone; answers 911 calls; screens
incoming calls to determine necessity, priority, and type of response required; monitors other radio
frequencies to be aware of incidents elsewhere that may affect City police operations; monitors cameras
throughout the building.
Dispatches, as necessary, police units in response to calls for service or requests from officers in the field;
uses law enforcement terminology and cites Code sections by number; calls public and private agencies,
such as allied law enforcement, hospitals, towing services, and utilities and requests mutual assistance
when necessary.
Keeps track of police unit locations and status; maintains constant radio communication with personnel in
the field; runs warrant checks on subjects, registration checks on vehicles, and property checks; relays
information and instructions to personnel in the field.
Maintains accurate log of incoming service requests and actions taken; prepares other reports and records
as directed; maintains files necessary for dispatch as assigned; enters, updates, and retrieves information
from the computer and teletype networks.
Provides general information to the public; as necessary, refers callers to appropriate agencies; calms
angered or distraught callers; maintains calm in radio transmissions during hectic, tense, and dangerous
situations; may assist citizens and police officers with translation related needs.
Provides temporary and vacation relief for other staff as necessary; may search prisoners on an as needed
basis and supervise and care for infants and children awaiting transportation.
MARGINAL FUNCTIONS
These are position functions which may be changed, deleted or reassigned to accommodate an individual
with a disability.
Page 1 of 2
i
C
Police Dispatcher
Class Specification
QUALIFICATIONS GUIDELINES
Education and/or Experience
Any combination of education and/or experience that has provided the knowledge, skills, and
abilities necessary for satisfactory job performance. Example combinations include graduation from
high school or equivalent,and two years of experience in typing and general clerical work including
one year of experience which required considerable public contact.
Knowledge and Skill Levels
Considerable knowledge of office procedures, record keeping system, forms, correspondence,
reports and other materials common to operation of a police department; police dispatching
procedures and the laws and regulations governing the use of dispatching equipment in a law
enforcement agency; agencies involved with police activities; Penal Code,Vehicle Code, and local
municipal code; 911 system and TDD Deaf Translation System; computerized systems used in
municipal law enforcement agencies. Ability to communicate clearly and concisely,both orally and
in writing; type accurately at a speed of not less than 40 net woids,per,minute; understand and
follow oral and written instructions; learn and follow standard broadcasting procedures and rules;
learn and utilize a wide variety of codes and computer commands; spell accurately; work various
shifts; operate computer terminal and other office equipment quickly, accurately, and at times,
concurrently; respond to emergency and problem situations in an effective manner; understand,
explain and apply policies and procedures; dispatch police units quickly and effectively; speak
clearly and precisely; work under pressure and exercise good judgment; effectively communicate
and elicit information from upset and irate citizens; work with minimum supervision.
Page 2 of 2
Y
10
Date Adopted: 01/22/02
Class Code: 9164 J
CITY OF AZUSA
POLICE DISPATCHER-LATERAL
DEFINITION
Under general supervision, receives requests for law enforcement services and dispatches units via
radio; maintains contact with department personnel in the field; performs related duties as
required.
CLASS CHARACTERISTICS
This is the journey level class and incumbents are required to perform the full range of dispatching
duties. In addition, Police Dispatchers may assist with the training of less experienced personnel.
ESSENTIAL FUNCTIONS
Duties may include, but are not limited to the following:
Receives requests for police or other emergency services over the phone; answers 911 calls;
screens incoming calls to determine necessity, priority, and type of response required; monitors
other radio frequencies to be aware of incidents elsewhere that may affect City police operations;
monitors cameras throughout the building.
Dispatches, as necessary, police units in response to calls for service or requests from officers in
the field; uses law enforcement terminology and cites Code sections by number; calls public and
private agencies, such as allied law enforcement, hospitals, towing services, and utilities and
requests mutual assistance when necessary.
Keeps track of police unit locations and status; maintains constant radio communication with
personnel in the field; runs warrant checks on subjects, registration checks on vehicles, and
property checks; relays information and instructions to personnel in the field.
Maintains accurate log of incoming service requests and actions taken; prepares other reports and
records as directed; maintains files necessary for dispatch as assigned; enters, updates, and
retrieves information from the computer and teletype networks.
Provides general information to the public; as necessary, refers callers to appropriate agencies;
calms angered or distraught callers; maintains calm in radio transmissions during hectic, tense,
and dangerous situations; may assist citizens and police officers with translation related needs.
Provides temporary and vacation relief for other staff as necessary; may search prisoners on an as
needed basis and supervise and care for infants and children awaiting transportation.
MARGINAL FUNCTIONS
These are position functions which may be changed, deleted or reassigned to accommodate an
individual with a disability.
QUALIFICATIONS GUIDELINES
Education and/or Experience
Any combination of education and/or experience,that has provided the knowledge, skills,
and abilities necessary for satisfactory job performance. The ideal combination includes
graduation from high school or equivalent, currently employed for one year as a full-time
law enforcement dispatcher with a California POST approved agency and possession of
Page 1 of 2
i
r�
the certificate of completion from a California POST approved law enforcement dispatcher
academy.
POLICE DISPATCHER-LATERAL
CLASS SPECIFICATION
Page 2 of 2
Knowledge, Skills and Abilities
Considerable knowledge of office procedures, record keeping system, forms,
correspondence, reports and other materials common to operation of a police
department; police dispatching procedures and the laws and regulations governing the use
of dispatching equipment in a law enforcement agency; agencies involved with police
activities; Penal Code,Vehicle Code, and local municipal code; 911 system and TDD Deaf
Translation System; computerized systems used in municipal law enforcement agencies.
Ability to, communicate clearly and concisely, both orally and in writing; type accurately at
a speed of not less than 40 net woods per nainufe; understand and follow oral and written
instructions; learn and follow standard broadcasting procedures and rules; learn and utilize
a wide variety of codes and computer commands; spell accurately; work various shifts;
operate computer terminal and other office equipment quickly, accurately, and at times,
concurrently; respond to emergency and problem situations in an effective manner;
understand, explain and apply policies and procedures; dispatch police units quickly and
effectively; speak clearly and precisely; work under pressure and exercise good judgment;
effectively communicate and elicit information from upset and irate citizens; work with a
minimum of supervision; and perform other related duties as required.
SPECIAL REQUIREMENTS
Possession of the certificate of completion from a California POST approved law enforcement
dispatcher academy.
Page 2 of 2
U �
-
�'irr�vs`1r
CONSENT CALENDAR
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: KING DAVIS, CHIEF OF POLICE
VIA: RICK COLE, CITY MANAGER 11
DATE: OCTOBER 6, 2003
SUBJECT: AWARD CONTRACT FOR POLICE EMERGENCY VEHICLE CONVERSIONS FOR
SEVEN NEW FORD CROWN VICTORIA'S TO ESPINO'S COP SHOP INC. IN THE
AMOUNT OF $21,611.24
RECOMMENDATION
It is recommended that City Council approve awarding the contract for installing all of the
emergency safety equipment on seven new police vehicles to Espino's Cop Shop Inc., 9851
Eighth Street #M, Rancho Cucamonga, CA 91730 in the amount of $21 ,611.24.
BACKGROUND
New police vehicles are delivered from Ford without the emergency equipment installed.
AZPD has a practice of recycling emergency equipment in good working order from an
existing police vehicle to a new one. The selection of a qualified vendor is vitally important
due to the extreme demands placed upon emergency vehicles to perform reliably under high
stress conditions.
The Police Department's Fleet Manager, Cpl. Mike Jerome, visited all of the responsive
bidders and determined that Espino's Cop Shop Inc. met the standards required by Azusa
P.D. for the professional installation of emergency equipment on the seven new police
vehicles.
Three written bids were obtained as follows:
• Espino's Cop Shop Inc., 9851 Eight St. #M, Rancho Cucamonga CA 91730
$21 ,611 .24.
• Leader Industries, 10941 Weaver Ave., EI Monte 91733
$25,000.85
• Communications Center, 134 S. Valencia Ave., Glendora CA 91741 $25,679.85.
FISCAL IMPACT
Funds are budgeted in the Police Equipment Replacement Account #46-20-310-000-7135.
Prepared By,
Captain Bob Garcia
Corporal Mike Jerome
U �
g
CONSENT CALENDAR
TO: HONORABLE MAYOR AND CIN COUNCIL MEMBERS
FROM: NASSER ABBASZADEH, CITY ENGINEER
VIA: RICK COLE, CITY MANAGER
DATE: OCTOBER 6, 2003
SUBJECT: APPROVAL OF FINAL MAP (TTM 52824-4), FOR PROPERTY LOCATED AT 2027 N.
SAN GABRIEL CANYON RD.
RECOMMENDATION
It is recommended that the City Council approve Final Map No. 52824-4 and authorize its
recordation.
BACKGROUND
Tentative Tract Map 52824 pertains to the Mountain Cove development, phases 1, 2, and 3 of
which have been under construction for about 2 years. This Tract Map was originally approved by
the City Council on January 18, 2000, subject to conditions of approval. The entire Tentative Map
creates 327 lots to accommodate new, higher-end single-family units, which are currently under
construction. Final Map 52824-4 represents un-developable open space, and involves the
southerly portion of the site, specifically the San Gabriel River course. Map 4 encompasses
approximately 15.209 acres and creates 9 lots for the purposes of open space and easement
entitlement.
The Engineering Division has completed final checking procedures for the final map and has found
that it is in substantial conformance with the State Subdivision Map Act and the City of Azusa
requirements. The sub-divider's engineer has submitted and had approved plans of the final
subdivision, the subdivision agreement, and paid applicable fees.With the technical review having
been completed, and the map meeting State and City requirements,the Council's approval would
be a ministerial action.
FISCAL IMPACT
There is no fiscal impact as a result of this item. The Developer is responsible for payment of all
costs associated with processing of this map.
�VFw
U
CONSENT ITEM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ORIEL MACIAS, CITY TREASURER
DATE: OCTOBER 6, 2003
SUBJECT: INVESTMENT POLICY FOR THE CITY OF AZUSA
RECOMMENDATION
The City Treasurer recommends that the City Council approve the attached resolution re-adopting
the Investment Policy for the City of Azusa.
BACKGROUND
State law requires that the Investment Policy for each city be re-adopted every year with changes
that may be necessary or desirable. The Council Members last adopted the policy on September
16, 2002.
FISCAL IMPACT
None
9
City of Azusa, CA.
Investment ]Policy
1. POLICY STATEMENT
All funds of the City of Azusa shall be invested in accordance with principles of sound
treasury management and in accordance with 'the provisions of the California
Government Code Sections 53600 et seq., (the Municipal Code), and guidelines
established by the California Municipal Treasurer's Association,the California Society of
Municipal Finance Officers, and this Investment Policy ("Policy"). These funds are
defined and detailed in the City's Comprehensive Annual Financial Report (CAFR) and
includes any new funds created unless specifically excluded by the City Council.
Specifically excluded funds are:
Funds deposited with the State Public Employees' Retirement System and;
Bond proceeds that are subject to covenants and restrictions as defined in the
Bond's indenture or are administered under the direct control of the Bond Trustee.
2. INVESTMENT POLICY OBJECTIVES
A. Overall Risk Profile
The objectives of the City of Azusa's Investment Program are, in order of priority:
1. Safety of principal of invested funds;
2. Maintenance of sufficient liquidity to meet cash flow needs; and
3. Attainment of the maximum yield possible consistent with the first two
objectives.
To achieve these objectives, The City shall consider the following when making an
investment:
1. Safety Principal of Invested FundsPrincipal of Invested Funds
The City shall mitigate the risk to the principal of invested funds by limiting
credit and interest rate risks. Credit Risk is the risk of loss due to the failure of
a security's issuer or backer. Interest Rate Risk is the risk that the market
value of the City's portfolio will fall due to an increase in general interest
rates.
a) Credit risk will be mitigated by:
(i) Limiting investments to the safest types of securities;
Investment Poli -Con't
2
(ii) By pre-qualifying the financial institutions with which it will do
business; and
(iii) By diversifying the investment portfolio so that the potential
failure of any one issue or backer will not place an undue financial
burden on the City.
b) Interest rate risk will be mitigated by:
(i) Structuring the City's portfolio so that securities mature to meet
the City's cash requirements for ongoing obligations, thereby
avoiding the possible need to sell securities on the open market at a
loss prior to their maturity to meet those requirements; and
(ii) Investing primarily in shorter term securities.
2. Liquidity
The City's investment portfolio shall be structured in a manner which
emphasizes that securities mature at the same time the cash is needed to
meet anticipated demands (Static Liquidity). Additionally, since all
possible cash demands cannot be anticipated, the portfolio should consist
of securities with active secondary markets (Dynamic Liquidity). The
maximum percentage of different investment instruments and maturities is
described in Section II of this Policy.
3. Yield
Yield on the City's investment portfolio is of secondary importance
compared to the safety and liquidity objectives described above.
Investments are limited to relatively low risk securities in anticipation of
earning a fair return relative to the risk being assumed. While it may
occasionally be necessary or strategically prudent for the City to sell a
security prior to maturity to either meet unanticipated cash needs or to
restructure the portfolio,this policy specifically prohibits trading securities
for the sole purpose of speculating on the future direction of interest rates.
B. Basic Investment Strategy
The City's investment portfolio shall be structured to provide that sufficient funds from
investments are available each month to meet the City's anticipated cash needs. Subject
to the objectives stated above, the choice in investment instruments and maturities shall
be based upon an analysis of future anticipated cash needs, existing and anticipated
revenues, interest rate trends and specific market opportunities. No investment may have
a maturity of more than five (5) years from its date of purchase without receiving prior
City Council approval. After approval by City Council, reserve funds associated with
2
p
Investment Policy—Con't
9
bond issues may have a maturity of more than five (5) years, up to the earliest date the
bonds may be redeemed or mature.
3. INVESTMENTS
This section of the Investment Policy identifies the types of investments in which the City
will invest its idle or surplus funds.
A. Standard of Prudence
The City operates its investment portfolio under the Prudent Investor Standard
(California Government Code Section 53600.3) which states, in essence, that
"when investing, reinvesting, purchasing, acquiring, exchanging, selling or
managing public funds, a trustee shall act with care, skill, prudence and diligence
under the circumstances then prevailing, including, but not limited to, the general
economic conditions and the anticipated need of the City, that a prudent person in
a like capacity and familiarity with those matters would use in the conduct of
funds of a like character and with like aims, to safeguard the principal and
maintain the liquidity needs of the City".
This standard shall be applied in the context of managing the overall portfolio.
Investment officers, acting in accordance with written procedures and this
investment policy and exercising the above standard of diligence shall be relieved
of personal responsibility for an individual security's credit risk or market price
changes, provided deviations from expectations are reported in a timely fashion
and appropriate action is taken to control adverse developments.
B. Elieible Securities
The City is provided a broad spectrum of eligible investments under California
Government Code Section 53600 et seq. The City may choose to restrict its
permitted investments to a smaller list of securities that more closely fits the
City's cash flow needs and requirements for liquidity. If a type of investment is
added to California State Code 53600, it. will not be added to the City's
Authorized Investment List until this policy is amended and approved by the City
Council. If a type of investment permitted by the City should be removed from
California State Code 53600, it will be deemed concurrently removed from the
City's Authorized Investment List.
The City's Authorized Investment List
• Insured Certificates of Deposit (CD's) of California banks
and/or savings and loan associations, and/or savings banks
which mature in five years or less, provided that the City's
investments shall not exceed One Hundred Thousand
($100,000) per institution. If the investment exceeds the
3
Investment Policy—Con't
insured $100,000, the funds are to be collateralized at 110% of
the deposit in government securities or 150%in mortgages.
• Local Agency Investment Fund (State Pool) Demand Deposits.
• Securities of the U.S. Government, and securities of which the
principal and interest is guaranteed by the full faith and credit
of the U.S. Government.
• Securities issued by agencies and instrumentalities of the U.S.
Government or issued by a government sponsored enterprise.
• Commercial Paper (limited to 30% of the portfolio) rated
Al/P1 or the equivalent by 2 nationally recognized rating
agencies with maturities not to exceed 181 days.
• Medium —Term Corporate Notes (limited to 20% of the
portfolio) that are rated "AA" or better by two nationally
recognized rating agencies.
• Passbook Savings or Money Market Demand Deposits, subject
to the restrictions and limitations set forth in Government Code
Section 53638.
• Repurchase Agreements (limited to 30% of the portfolio) with
approved banks and broker-dealers who have completed and
signed a Master Repurchase Agreement with the City.
• Money Market Mutual Funds (with a stated objective of
maintaining a$1 net asset value) that has been rated AAAm by
Moody's or any two nationally recognized rating agencies.
Please see Exhibit A for a more detailed description of the
authorized investments listed above.
A thorough investigation of any pool or fund is required prior to investing and on
a continual basis. The investigation will, at a minimum, obtain the following
information:
A description of eligible investment securities, and a written
statement of investment policies and objectives.
A description of interest calculations and how it is distributed, and
how gains and losses are distributed.
A description of how securities are safeguarded (including the
settlement process) and how often the securities are marked to
market and how often an audit is conducted.
4
Investment Policy—Con't
A description of who may invest in the program, how often, what
size deposits and withdrawals'are permitted.
A schedule for receiving statements and portfolio listings.
Does the pool/fund maintain a reserve or retain earnings or is all
income after expenses distributed to participants?
A fee schedule which also discloses when and how fees are
assessed.
Is the pool or fund eligible for bond proceeds and/or will it accept
such proceeds?
The purpose of this investigation is to determine the suitability of a pool or fund
and evaluate the risk of placing funds with that pool or fund.
One of the purposes of this Investment Policy is to define what investments
are permitted. If a type of security is not specifically authorized by this
policy, it is not a permitted investment.
C. Qualification of Brokers. Dealers and Financial Institutions
The City Treasurer or their designees will establish and maintain a list of`the
financial institutions and broker/dealers authorized to provide investment and
depository services to the City, will perform an annual review of the financial
condition and registrations of the qualified bidders, and require annual audited
financial statements to be on file for each approved company. The City shall
annually send a copy of the their current Investment Policy to all financial
institutions and broker/dealers approved to do business with the City. Receipt of
the Policy and Enabling Resolution, including confirmation that it has been
received and reviewed by the person(s) handling the City's account, shall be
acknowledged in writing within thirty(30) days.
All broker-dealers and financial institutions that desire to become qualified
bidders for investment transactions must submit a "Broker-Dealer Application"
and related documents relative to eligibility. This includes a current audited
financial statement, proof of state registration, proof of NASD registration and a
certification they have received and reviewed the City's Investment Policy and
agree to comply with the provisions outlined in the Investment Policy. The City
Treasurer or their designees may establish, any additional criteria they deem
appropriate to evaluate and approve any financial services provider. The selection
process for broker-dealers shall be operi to both "primary dealers" and
"secondary/regional dealers" that qualify under Securities and Exchange
Commission Rule 15c3-1 (Uniform Net Capital Rule). The provider must have an
office in California and the provider's representative must be experienced in
institutional trading practices and familiar with the California Government Code
as it relates to investments by a City.
5
Investment Poli —Con't
v
D. Collateralization Requirements
Uninsured Time Deposits with banks and savings and loans shall be collateralized
in the manner prescribed by state law for depositories accepting municipal
investment funds.
Repurchase Agreements shall be collateralized in accordance with terms specified
in the Master Repurchase Agreement. The valuation of collateral securing a
Repurchase Agreement will be verified weekly to ensure a minimum of 102% of
the value of the transaction is held by the City's depository agent.
E. Diversification
The City will diversify its investments by security type and investment. With the
exception of bond reserve funds, bond escrow funds, and any other specific funds
approved by the Treasury Committee or the Board of Directors, the City
Treasurer or their designee and the City's Investment Committee will adopt a
strategy that combines current market conditions with the City's cash needs to
maintain the maximum degree of safety of principal and liquidity throughout
market and budgetary cycles. This strategy will include diversification by
investment type and maturity allocations and will be included in the regular
quarterly reports to Council. This strategy will be reviewed quarterly and can be
changed accordingly.
F. Confirmations
Receipts for confirmation of purchases or sales of authorized securities shall
include at a minimum the following information: trade date, settlement date,
description of the security, par value, interest rate, price, yield to maturity, City's
name, net amount due and third party custodial information.
G. GASB 3
The Governmental Accounting Standards Board (GASB) issued GASB #3 in
April 1986, and the local entity's investments must be categorized into one of
three levels of credit risk as follows:
a) Securities that are insured or registered, or for which the securities are
held by public units or its agent in the units;
b) Securities that are uninsured and unregistered and are held by the broker
or dealer or by its trust department or agent in the unit's name;
c) Securities that are uninsured and unregistered and are held by the broker
or dealer or by its trust department or agent,but not in the unit's name.
The carrying amount and market value of all types of investments must be
disclosed in total and for each type of investment. Government Accounting
6
Investment Policy-Con't
Standards Board #3 exempts mutual funds and LAIF investments from the
mandatory risk categorization.
4. SAFEKEEPING OF SECURITIES
A. Safekeeping Agreement
The City shall contract with a bank or banks for the safekeeping of securities that
are owned by the City as a part of its investment portfolio or transferred to the
City under the terms of a Repurchase Agreement.
All securities owned by the City shall be held in safekeeping by a third party bank
trust department acting as agent for the City under the terms of a custody
agreement executed by the bank and the City. All securities will be received and
delivered using standard delivery versus payment (DVP) procedures. The
third party bank trustee agreement must comply with Section 53608 of the
California Government Code. No outside broker/dealer or advisor may have
access to City funds, accounts or investments and any transfer of funds must be
approved by the City Treasurer.
B. Security Transfers
The authorization to release the City's securities or funds will be telephoned to
the appropriate bank representative by a finance department member other than
the person who initiated the transaction. A written confirmation outlining details
for the transaction and confirming the telephoned instructions will be sent to the
bank within five (5) working days.
C. Verification of Securities
Securities transferred to the City as collateral securing time deposits or repurchase
agreements which are being held in safekeeping on behalf of the City will be
verified in writing and examined on a surprise basis during the year by the City's
independent auditors as a part of the City's annual independent audit process.
5. STRUCTURE AND RESPONSIBILITIES
This section of the policy defines the overall structure and areas of responsibility within
the investment management program.
A. Responsibilities of the City Treasurer
The City Treasurer is charged with responsibility for maintaining custody of all
public funds and securities belonging to or under the control of the City, and for
the deposit and investment of those funds in accordance with principles of sound
treasury management applicable laws, ordinances and this Investment Policy.
This includes establishing written procedures.for the operation of the investment
7
in
Investment Policy-Con't
ra
program consistent with this policy. The procedures should include reference to
safekeeping, master repurchase agreements, wire transfer agreements, banking
services contracts and depository agreements. Such procedures shall also include
explicit delegation of authority to persons responsible for investment transactions.
No person may engage in an investment transaction except as provided under the
terms of this policy and the procedures established by the Treasurer and approved
by the Investment Committee. Investment decisions that involve borrowing in the
amount of $100,000 or more must be included as a separate discussion item on
the City Council's agenda. Such items can no longer be included on the City
Council's consent calendar. (California Government Code 53635.7)
B. Responsibilities of the Director of Finance
The Director of Finance is responsible for keeping the City Council fully advised
as to the financial condition of the City.
C. Responsibilities of the City Council
The City Council shall consider and adopt a written Investment Policy. As
provided in that policy, the Council shall receive, review and accept monthly
investment reports.
D. Responsibilities of the Investment Committee
There shall be an Investment Committee consisting of the Director of Finance, the
City Manager, the City Treasurer and their designees. The Committee shall meet
quarterly to discuss cash flow requirements, the monthly investment reports,
investment strategies, investment and banking procedures and significant
investment related work projects being undertaken in each department that will
affect the cash flow management of the City Treasurer. This will require timely
reports from the department heads to the City Treasurer concerning significant
future cash flow requirements. The Committee's meetings will be summarized in
minutes that are distributed to the City Council. The Investment Committee, with
the approval of the City Council, may retain an external investment manager on
behalf of the City. The investment manager will be required to act in accordance
with this investment policy.
E. Ethics and Conflicts of Interest
All City officers and employees involved in the investment process shall refrain
from personal business activity that could conflict with the proper execution of
the investment program, or that could impair their ability to make impartial
investment decisions. Those employees and investment officials shall disclose to
the appropriate City executive (City Manager, City Attorney, or the Director of
Finance) any material financial interests in financial institutions that conduct
business within the City, and they shall further disclose any large personal
8
Investment Policy—Con't
financial/investment positions that could be related to the performance of the ,
City's investments.
6. REPORTING
The City Treasurer shall prepare a monthly investment report, including a succinct
management summary that provides a clear picture of the status of the current investment
portfolio and transactions made over the past month. This management summary shall be
prepared in a manner that will allow the Director of Finance and the City Council to
ascertain whether investment activities during the reporting period have deviated from
the City's Investment Policy.
The monthly report shall include the following:
A. A list of individual securities held at the end of the reporting month.
B. Unrealized gains or losses resulting from amortization or accretion of
principal versus market value changes by listing the cost and market value
of securities owned by the City.
C. A description of the current investment strategy and the assumptions upon
which it is based.
D. Dollar weighted yield to maturity of the City's investments.
E. Maturity schedule by type, of each of the City's investments.
F. Statement of compliance of the City's Investment Policy with California
Government Code Section 53601 et seq.
G. Statement as to ability to meet all scheduled expenditure requirements for
the next six months.
H. Market value,book value,par value and cost basis of all investments.
I. Investments "under the management of contracted parties, including
lending programs" (i.e. investments held by deferred compensation
administrators).
7. PERFORMANCE STANDARDS
The investment portfolio will be managed in accordance with the standards established
within this Investment Policy and should obtain a market rate of return throughout
budgetary and economic cycles. The Investment Committee will establish and
periodically review the City's portfolio benchmarks and performance. A benchmark will
be selected that compares with the portfolio composition, structure and investment
strategy at that time.
9
I nvestment Policy—Con't
8. REVIEW OF INVESTMENT POLICY
A. Policy Review
This Investment Policy shall be reviewed annually by the City Council in
accordance with State law to ensure its consistency with respect to the overall
objectives of safety, liquidity and yield. Proposed amendments to the policy shall
be prepared by the Treasurer and reviewed by the Investment Committee and City
Attorney and then be forwarded to the City Council for consideration. The
Investment Committee shall annually review the Investment Policy and any
proposed amendments and forward to the City Council for its consideration and
adoption at a public meeting.
B. Internal Control and Review
The external auditors shall annually review the investments and general activities
associated with the investment program to ensure compliance with this
Investment Policy. This review will provide internal control by assuring
compliance with policies and procedures for the activities that are selected for
testing.
9. ADOPTION OF POLICY
This Policy was duly adopted by the City Council of the City of Azusa on
October 6, 2003.
10
Investment Policy—Con't
EXHIBIT A: ,
DESCRIPTION OF INVESTMENTS
The City of Azusa's investments may be placed in those securities as outlined below; the
allocation between the various investment instruments may change in order to give the
City the best combination of safety, liquidity and higher yield. Surplus funds of local
agencies may only be invested in certain eligible securities. The City limits its
investments to allowable securities under the State' of California statutes (Government
Code Section 53601, et seq., Section 53356, et seq:, and Section 53595, et seq.) and is
further limited to those listed below.
Certificates of Deposit
Certificates of deposit allow the City to select the exact amount and day of maturity as
well as the exact depository. Certificates of deposit are issued in any amount for periods
of time as short as fourteen days and as long as several years. At any given time, the City
may have certificates of deposit in numerous financial institutions in the future.
The Treasurer may at his discretion waive security for that portion of a deposit, which is
insured pursuant to federal law. Currently, the first $100,000 of a deposit is federally
insured by FSLIC or FDIC. It may be to the City's advantage to waive this collateral
requirement for the first $100,000 because the City may receive a higher interest rate. If
funds are to be collateralized, the collateral will be.110% of the deposit in government
securities or mortgages of 150%. At purchase, institutions must not show an operating
loss. Banks must have an equity to asset ratio of at least 6%. Savings and loan
associations and savings banks must have an equity to asset ratio of at least 3%.
Local Agency Investment Fund
The Local Agency Investment Fund (LAIF) of the State of California offers high
liquidity because deposits can be wired to the City checking account within twenty-four
hours. Interest is computed on a daily basis.
This is a special fund in the State Treasury, which local agencies may use to deposit
funds for investment. There is no minimum investment period and the minimum
transaction is $5,000 in multiples of$1,000 above that, with a maximum of$40,000,000
for any City. It offers high liquidity because deposits can be converted to cash within
twenty-four hours and no interest is lost. All interest is distributed to those agencies
participating on a proportionate share determined by the amounts deposited and the
length of time they are deposited. Interest is paid quarterly by adding it to the principal.
The State charges participants a small fee to cover reasonable costs associated with
operating the investment pool, not to exceed one-quarter of one percent of the earnings.
The interest rates received are fairly stable because of the pooling of the State's surplus
cash with the surplus cash deposited by local governments. This creates a well-
diversified multi-billion dollar money pool.
tt
Investment Policy—Con't
'r
U.S. Treasury Securities
U.S. Treasury securities are highly liquid and considered the safest of all investments
because they are back by the full faith and credit of the United States Government.
U.S. Treasury Bills are direct obligations of the United States Government.
They are issued weekly with maturity dates up to six months. They are issued and
traded on a discount basis and the interest is figured on a 360-day basis using the
actual number of days to maturity. They are issued in the minimum amount of
$10,000 and in multiples of$5,000 thereafter.
U.S. Treasury Notes are direct obligations of the United States Government.
They are issued throughout the year with maturities from 2 up to 30 years. Notes
are coupon securities paying a fixed amount every six months. The City will not
invest in notes having maturities longer then five years.
Federal Agency Securities
Federal Agency securities are highly liquid and considered to be virtually without credit
risk. Federal Agency issues are guaranteed indirectly by the United States Government.
All Agency obligations that are fixed-rate and meet the maturity restrictions of the State
Code and this policy qualify as legal mi vestments and are acceptable as security for public
deposits. They usually provide higher yields than regular Treasury issues with all of the
same advantages. Examples are:
FNMA's (Federal National Mortgage Association) are used to assist the home
mortgage market by purchasing mortgages insured by the Federal Housing
Administration and the Farmers Home Administration, as well as those
guaranteed by the Veterans Administration.
FHLB's (Federal Home Loan Bank Notes and Bonds) are issued by the Federal
Home Loan Bank System to help finance the housing industry. The notes and
bonds provide liquidity and home mortgage credit to savings and loan
associations, mutual savings banks, cooperative banks, insurance companies and
mortgage-lending institutions.
Other Federal Agency issues are Federal Home Loan Mortgage Corporation
(FHLMC), Federal Farm Credit Bank (FFCB), Small Business
Administration Notes (SBA's), Government National Mortgage Association
(GNMA's), Tennessee Valley Authority (TVA's) and the Student Loan
Marketing Association (SLMA's).
Negotiable Certificate of Deposit
Negotiable certificates of deposit are high-grade instruments,paying a higher interest rate
than regular certificates of deposit. They are liquid because they can be traded in the
secondary market.
12
Inves"ent Policy—Con't
a
Negotiable Certificates of Deposit (NCD's) are unsecured obligations of the issuing
financial institution, bank or savings and loan, bought at face value with a promise to pay
face value plus accrued interest at maturity. The primary market issuance is in multiples
of $1 million. The secondary market usually trades in denominations of $500,000,
although smaller denominations are occasionally available. Local agencies may not
invest more than 30% of their surplus money in negotiable certificates of deposit. NCD's
will only be placed with the largest and most financially sound institutions.
Commercial Paper
Commercial paper allows the investment of large amounts of money on a short-term
basis at rates higher than passbook savings accounts. Commercial paper is a short-term
unsecured promissory note issued by a corporation to raise working capital. These
negotiable instruments are purchased at a discount to par value. As an example,
corporations such as American Express, International Business Machines (IBM) and
General Electric issue commercial paper.
Local agencies are permitted by state law to invest in commercial paper of "prime"
quality of the highest ranking or of the highest letter and numerical rating as provided by
Moody's Investor's Service, Inc. or Standard and Poor's Corporation (Allpl or A1+/p1).
Purchases of eligible commercial paper may not exceed 180 days maturity nor exceed
30% of the City's surplus funds.
Medium-Term Corporate Notes
A City may invest in medium term corporate notes with a maximum maturity of five
years issued by a corporation organized and operating within the United States, a
depository institution licensed by the United States government or any state government
and operating within the United States. The California State Code (53601 et seq.)permits
cities to invest in corporations with a rating category of"A" or better, but the City will
limit its investments in corporate medium term notes.to those issued by corporations that
have been rated"AA" or its equivalent by two nationally recognized ratings agencies.
Passbook Savings or Money Market Account
Passbook savings account allows us to transfer money from checking to savings and earn
interest on smaller amounts of money, which are not available for a longer-term
investment
The passbook savings account is similar to a CD,;except not for a fixed term. The
interest rate is much lower than CD's, but the savings.account provides daily liquidity and
funds can be deposited and withdrawn according to our daily needs.
13
Investment Policy—Con't
Mutual Funds
Mutual funds allow the City to maintain liquidity and receive money market rates.
Mutual Funds are referred to in the Government Code, Section 5360LL, as "shares of
beneficial interests issued by diversified management companies". The Mutual Fund
must be restricted by its prospectus to be a "Money market" mutual fund and be limited
to the same approved investments as LAIF. These investments include U.S. Treasury and
Agency issues, Bankers Acceptances, Commercial Paper, Repurchase Agreements,
Certificates of Deposit, and Negotiable Certificates of Deposit. The quality rating and
percentage restrictions in each investment category applicable to LAIF also apply to any
Mutual Fund.
One of the stated objectives of the Mutual Fund must be to attempt to maintain a $1.00
Net Asset Value (NAV). A further restriction is that the purchase price of shares of any
mutual fund shall not include any sales commission. Investments in mutual funds shall
not exceed 15%of the City's surplus money.
Repurchase Agreements
Repurchase agreements are purchases of securities by the City under an agreement with a
term of one (1) year or less whereby the seller will "repurchase" the same securities on or
before a specified date or on demand of either party and for a specified amount. The
underlying securities must be delivered to the City's custodial account by book entry,
physical delivery or a third-party custodial agreement.
14
RESOLUTION NO
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA
ADOPTING THE INVESTMENT POLICY
WHEREAS the City of Azusa receives 'taxes and other revenues from a
variety of sources and uses the funds to pay its bills on a regular basis; and
WHEREAS the City Treasurer is charged with the duties of handling and
maintaining the cash that is taken in or otherwise received by the City; and
WHEREAS the balance of these funds Fluctuates between $3,000,000 and
$20,000,000 or more; and .
WHEREAS the City Treasurer is charged with the responsibility of investing
idle public funds, doing so on the basis of protecting the safety of the funds, ensuring
the liquidity of the investments, and maximizing earnings in that order of importance
and based on the "Prudent Investor Standards"; and
WHEREAS the State of California requires each City to adopt an
investment policy for its jurisdiction.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of
Azusa does hereby adopt its Investment Policy attached hereto marked Exhibit A and
instructs the City Treasurer to be guided by it in carrying out the duties of his office for
the benefit of the City of Azusa.
ADOPTED AND APPROVED this 6' day of October, 2003
Mayor
HEREBY CERTIFY that the foregoing resolution was duly adopted by the
City Council of the City of Azusa at a regular meeting thereof on the 6" day of
October, 2003 by the following vote of Council:
AYES: BOARD DIRECTORS: !
I
NOES: BOARD DIRECTORS:
ABSENT: BOARD DIRECTORS:
f Vr
�'9£FDaCa'!
CONSENT CALENDAR
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CIN COUNCIL
FROM: RANDY NORIEGA, DIRECTOR OF PARK PLANNING AND DEVELOPMENT
VIA: RICK COLE, CITY MANAGER
DATE: SEPTEMBER 15, 2003
SUBJECT: APPROVE TWO SEPARATE RESOLUTIONS AUTHORIZING THE PARK PLANNING AND
DEVELOPMENT OFFICE TO APPLY FOR GRANT FUNDS FROM THE PER CAPITA GRANT PROGRAM
AND THE ROBERT]-Z'BERG-HARRIS BLOCK GRANT PROGRAM PROVIDED UNDER THE CALIFORNIA
CLEAN WATER, CLEAN AIR, SAFE NEIGHBORHOOD PARKS AND COASTAL PROTECTION ACT OF
2002 IN THE AMOUNT OF AND TO RECOGNIZE $344,832
RECOMMENDATION:
It is recommended that City Council authorize two separate resolutions authorizing staff to apply for grant funds
from the per capita grant program and the Roberti-Z'Berg-Harris block grant program as provided under the
California Clean Water, Clean Air, Safe Neighborhood Park and Coastal Protection Act of 2002. funds for the
grants will be recognized and appropriated in the fiscal year 2004 capital budget.
BACKGROUND:
The adoption of these two resolutions allow the City of Azusa to enter into a contract with the State Department
of Parks and Recreation and apply for guaranteed grant funds allocated to the City of Azusa from two separate
grant programs provided by the California Clean Water,Clean Air, Safe Neighborhood Park and Coastal Protection
Act of 2002 (Proposition 40).
The City of Azusa is allocated $124,832.00 in Proposition 40 Roberti-Z'Berg-Harris block grant and $220,000 in
Proposition 40 per capita program. The adopting of these two resolutions act as official notification to the State
Department of Parks and Recreation that the City of Azusa accepts the per capita and Roberti-Z'Berg-Harris grant
funds.
Upon City Council approval, the $344,832.00 grant total will be programmed into the FY 2003-04 capital
improvement program budget for park improvements as required by the proposition.
FISCAL IMPACT:
Upon approval of the two resolutions, the City of Azusa is eligible to receive $124,832.00 from the Roberti-
Z'Berg-Harris block grant and $220,000.00 from the per capita program for a total of$344,832.00. The funds
will be programmed into individual park improvement projects as part of the FY 2004 capital budget.
/dls (03-177
RESOLUTION
2002 RESOURCES BOND ACT
ROBERTI-Z'BERG-HARRIS BLOCK GRANT PROGRAM
Resolution No:
RESOLUTION OF THE
CITY OF AZUSA
APPROVING THE APPLICANT TO APPLY FOR GRANT FUNDS FOR THE
ROBERTI-Z'BERG-HARRIS BLOCK GRANT PROGRAM UNDER THE CALIFORNIA
CLEAN WATER, CLEAN AIR, SAFE NEIGHBORHOOD PARKS, AND COASTAL
PROTECTION ACT OF 2002
WHEREAS, the people of the State of California have enacted the CALIFORNIA
CLEAN WATER, CLEAN AIR, SAFE NEIGHBORHOOD PARKS AND COASTAL
PROTECTION ACT OF 2002 which provides funds.for the Roberti-Z'Berg-Harris Block
Grant Program for grants to eligible Applicants, and
WHEREAS, the California Department of Parks and Recreation has been
delegated the responsibility for the administration of the program within the State,
setting up necessary procedures, and
WHEREAS, said procedures established by the California Department of Parks
and Recreation require the Applicant's Governing Body to certify by resolution the
approval of the Applicant to apply for the Roberti-Z'Berg-Harris allocation; and
WHEREAS, the Applicant will enter into a Contract with the State of California
for the Project;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Azusa
hereby:
1 . Approves the filing of an Application for local assistance funds from the
Roberti-Z'Berg-Harris Block Grant Program under the California Clean Water,
Clean Air, Safe Neighborhood Parks and 'Coastal Protection Act of 2002; and
2. Certifies that the Applicant has or will have sufficient funds to operate and
maintain the Project(s); and
3. Certifies that the Applicant has reviewed, understands, and agrees to the
General Provisions contained in the Contract shown in the Procedural
Guide; and
4. Certifies that the Grantee has or will have available, prior to commencement
of any work on the Project, the required 'Match; and
5. . Certifies that the Project conforms to the recreation element of any
applicable city or county general plan; and
G. Appoints the Director of Park Planning and Development as agent to
conduct all negotiations, execute and submit all documents including, but
not limited to, Applications, agreements, payment requests and so on,
which may be necessary for the completion of the Project.
Approved and Adopted on the 15'h day of September, 2003.
I, the undersigned, hereby certify that the foregoing Resolution Number
was duly adopted by the Azusa City Council following a roll call vote:
Ayes:
Noes:
Absent:
Cristina Madrid, Mayor
Vera Mendoza, City Clerk
s
RESOLUTION
2002 RESOURCES BOND ACT
PER CAPITA GRANT PROGRAM
Resolution No:
RESOLUTION OF THE
CITY OF AZUSA
APPROVING THE APPLICANT TO APPLY FOR GRANT FUNDS FOR THE PER
CAPITA GRANT PROGRAM UNDER THE CALIFORNIA CLEAN WATER, CLEAN
AIR, SAFE NEIGHBORHOOD PARKS, AND COASTAL PROTECTION ACT OF 2002
WHEREAS, the people of the State of California have enacted the Per Capita
Grant Program which provides funds for the acquisition and development of
neighborhood, community, and regional parks and recreation lands and facilities; and
WHEREAS, the California Department of Parks and Recreation has been
delegated the responsibility for the administration of the grant program, setting up
necessary procedures; and
WHEREAS, said procedures established by the California Department of Parks
and Recreation require the Applicant's Governing Body to certify by resolution the
approval of the Applicant to apply for the Per Capita Allocation, and
WHEREAS, the Applicant will enter into a Contract with the State of California;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Azusa
hereby:
1 . Approves the filing of an Application for'local assistance funds from the Per
Capita Grant Program under the California Clean Water, Clean Air, Safe
Neighborhood Parks, and Coastal Protection Act of 2002; and
2. Certifies that the Applicant has or will have sufficient funds to operate and
maintain the Project(s); and
3. Certifies that the Applicant has reviewed, understands, and agrees to the
General Provisions contained in the Contract shown in the Procedural
Guide; and
4. Appoints the Director of Park Planning and Development as agent to
conduct all negotiations, execute and submit all documents including, but
not limited to Applications, agreements; payment requests and so on,
which may be necessary for the completion of Project(s).
f
Approved and Adopted on the 15"' day of September, 2003.
I, the undersigned, hereby certify that the foregoing Resolution Number
was duly adopted by the Azusa City Council following a roll call vote:
Ayes:
Noes:
Absent:
Cristina Madrid, Mayor
Vera Mendoza, City Clerk
, i
CONSENT CALENDAR
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: RANDY NORIEGA, DIRECTOR OF PARK PLANNING AND DEVELOPMENT
VIA: RICK COLE, CITY MANAGER �✓�
DATE: OCTOBER 6, 2003
SUBJECT: REQUEST TO AMEND OUR PROFESSIONAL SERVICE CONTRACT AND PURCHASE
ORDER WITH CRANE ARCHITECTURAL GROUP FOR REPROGRAPHIC CHARGES AND
PLAN MODIFICATIONS TO OUR MEMORIAL PARK RESTROOM PROJECT IN THE
AMOUNT OF $1,244.48. ABUDGET TRANSFER OF $1,300.00ISREQUIRED.
RECOMMENDATION:
It is recommended that City Council approve an increase in the amount of $1,245 to the
professional services contract with Crane Architectural Group for reprographic charges and plan
modifications to the Memorial Park Restroom Project, and approve a budget transfer of $1,245
from Capital Project account 420031 (Park Planning and Development to 41002G (Memorial Park
Restroom).
BACKGROUND:
The City of Azusa entered into a professional services agreement in June of 2002 with Crane
Architectural Group to design plans and specifications for our Memorial Park Restroom Project.
The prior project manager selected Crane Architectural after interviewing several firms. A contract
price of $9,800.00 was negotiated for all services excluding reprographic reimbursable
(plan/document printing). Reprographic charges on the project are $644.48.
After plans were completed, it was decided to install a divider wall in the storage room portion of
the restroom facility. This additional wall would create a separate storage room within the storage
section and this new smaller storage room would be used by Azusa Jr. All American Football to
store equipment and supplies for their expanding program. It was necessary to revise the storage
room architectural design plan and submit the revised plans to Planning for approval. The
additional cost to produce the required revised plans was $600.00.
It should be noted that the contractor, 4-Con Engineering provided the divider wall at no
additional cost to the project. The total cost over the original contract amount is $1 ,244.48.
FISCAL IMPACT:
The above budget transfer of $1,245 from Park Planning and Development CIP account 22-80-
000-420-6345/42003I-6345, (Consultants for Design and Architectural Services)to the Memorial
Park Restroom Project account 19-80-0000-410-7120/41002G-7120 will allow for sufficient funds
to cover the contract increase.
..R
CONSENT ITEM
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT PERSON, ASSISTANT CITY MANAGER
VIA: RICK COLE, CITY MANAGER
DATE: OCTOBER 6, 2003
SUBJECT: APPROVAL OF THE AZUSA HEALTH CLINIC FACILITY LOCATED AT 150
N. AZUSA AVENUE TO EL PROYECTO DEL BARRIO
RECOMMENDATION
It is recommended that the City Council approved the lease between the City and
EI Proyecto del Barrio for the purpose of establishing a non-profit community health
clinic within the City of Azusa.
BACKGROUND
Public health services were discontinued October 2002 when the Los Angeles County
Health Department closed the clinic due to the County's financial crisis. A coalition
composed of representatives from the City, County, local school district, and a
diverse group of interested health providers has been meeting since the clinic's
closure to develop plans, and partner with a health provider, interested in providing
community health services.
Initial funding for start-up operations as a satellite clinic is eminent. The Los Angeles
County Department of Health Services has committed $100K to EI Proyecto for
operating needs. The lease is also contingent on other grants that are in the .
application process.
The main points of the contract are: A sum of $1.00 a year will be paid by the lessee.
The primary purpose is to operate a primary health care clinic for the community,
which includes Family Medicine, Gynecological Services, Prenatal Care, Pediatric Care,
Immunization Services. The term of the lease is for five years. (A copy of the lease is
attached.).
FISCAL IMPACT
Funds for the preparation of this lease are included in the initial $50,000 start up
grant given to the City through Supervisor Gloria Molina's office from The California
Endowment.
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AZUSA HEALTH CENTER LEASE
1. Parties and Date.
This Azusa Health Center Lease ("Lease") is made and entered into as of this _ day of
2003, by and between the City of Azusa, (hereinafter referred to as "Lessor"), a
public body corporate and politic,with its principal place of business at 213 East Foothill Boulevard,
Azusa, California 91702, and El Proyecto del Barrio (hereinafter referred to as "Lessee"), a
California non-profit corporation, with its principal place of business at 8902 Woodman Avenue,
Arleta,California 91331. The Lessor and Lessee are sometimes referred to individually as a"Party'
and referred to collectively as the "Parties."
2. Recitals.
2.1 Lessor Property.
Lessor is the owner,subject to a reversionary interest as set forth herein,of that real property
located at 150 North Azusa Avenue, Azusa, Los Angeles County, California, 91702 ("Lessor
Property").
2.1.1 Acquisition of Lessor Property
Lessor received the Lessor Property by deed and declaration of trust. The Lessor
Property was granted to the County of Los Angeles("County")by the late Kate S.Vosburg with the
condition that the property be used for the maintenance and operation of a health clinic. Since the
County ceased to use the facility for the purposes provided for in the original deed, the property
passed to the City of Azusa. The City of Azusa further received a Quitclaim Deed from the County
relinquishing any interest in the Lessor Property.
2.1.2 Reversion to Heirs of Kate S. Vosburg
In the event that the City fails to take over or continue the health care work and terms
under the deed of trust, the Lessor Property reverts to the heirs of the late Kate S. Vosburg.
2.2 Purpose of Lease.
Lessor desires to lease to the Lessee, and the Lessee desires to lease from Lessor the Lessor
Property ("Leased Premises") for due and adequate consideration, the receipt and sufficiency of
which are acknowledged by the Parties and further described and set forth in this Lease, for the
operation by Lessee of a non-profit health clinic within the City of Azusa.
NOW, THEREFORE, for and in consideration of the rent, covenants and agreements
contained in this Lease, Lessor and Lessee hereby covenant and agree as follows:
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3. Terms.
3.1 Description of Leased Premises.
Lessor hereby leases to the Lessee and the Lessee leases from Lessor, on the terms and
conditions set forth in this Lease, the Leased Premises, which consist of approximately seven
thousand three hundred sixty-five(7,365)square feet,more particularly described in Exhibit"A"and
as more specifically shown on the diagram attached as Exhibit "A-1".
ILI Health Clinic Reference.
In accordance with Section IVB) of the-deed and declaration of trust_ the Leased
Premises shall be officially lrnown and designated as the "Kate S. Vosbum Memorial Clinic."The
existing plaque identifying the Kate S. Vosurg Memorial Clinic shall remain attached to the Leased
Premises throughout the term of the Lease.
3.2 Term.
The term of this Lease shall be for five(5)years beginning 2003 and ending
2008 ("Original Term"), unless otherwise modified in writing by the Parties or
terminated earlier as provided in this Lease.
3.3 Lease Payment.
The Leased Premises are leased to the Lessee for the sum of One Dollar ($1.00) per year
("Lease Payment"),payable to the Lessor upon execution of this Lease. Lease Payment shall be paid
to Lessor at the address to which notices to Lessor are given, or to such other person or such other
place as directed from time to time by written notice to Lessee from Lessor. The Parties agree that
the Lease Payment is a nominal amount and Lessee's failure to timely pay the Lease Payment shall
not constitute a breach of this Lease or grounds for termination hereof provided the Lease Payment is
paid.
3.3.1 Lease Payment to be Net.
It is the purpose and intent of Lessor and Lessee that the Lease Payment payable
under this Section 3.3 shall be absolutely net to Lessor and this Lease shall yield, absolutely net to
Lessor, the Lease Payment specified and provided in this Section 3.3.
3.4 Use.
The Parties understand and agree that the residents of the City of Azusa will receive a benefit
from this lease in the form of the availability of primary Healthcare services to eligible persons. The
Leased Premises have historically been used to provided health care services to the community and
this Lease between the Lessor and Lessee is necessary to continue providing those services. This
Lease is made in contemplation of the provision of such services by El Proyecto del Barrio, to the
residents of Azusa. Subject to the list of specifically excluded uses in Section 3.5. the Leased
Premises are leased to Lessee solely for the purpose of operating a primary health care services
clinic. Such use shall consist primarily of providing to residents of the City of Azusa primary
healthcare services,including,but not limited to,Family Medicine Services,Gynecological Services,
Prenatal Care,Pediatric Care,and Immunization Services. Lessee,and Lessee's officers,employees,
agents, invitees, licensees, and guests shall be permitted to use, in addition to the Leased Premises,
the common areas of Lessor Property, including common hallways, parking lots, sidewalks and
common area restrooms.
3.4.1 Compliance With Laws.
Lessee shall, at Lessee's own cost and expense,comply with all statutes,ordinances,
regulations, and requirements of all governmental entities, both federal and state and county or
municipal, excluding those requiring capital improvements to the Leased Premises, unrelated to
Lessor's use and occupancy of the Leased Premises as a primary health care services clinic whether
those statutes, ordinances, regulations, and requirements are now in force or are subsequently
enacted. If any license,permit,or other governmental authorization is required for the lawful use or
occupancy of the Leased Premises or any portion of the Leased Premises as a primary health care
services clinic, the Lessee shall procure and maintain it throughout the term of this Lease. The
judgment of any court of competent jurisdiction,or the admission by Lessee in aproceeding brought
against Lessee by any government entity, that Lessee has violated any such statute, ordinance,
regulation,or requirement and after notice and opportunity has failed to cure such violation shall be
conclusive as between Lessor and Lessee and shall constitute grounds for termination of this Lease
by Lessor.
3.4.2 Prohibited Uses.
Lessee shall not use or permit the Leased Premises or any portion of the Leased
Premises to be improved, developed,used,or occupied in any manner or for any purpose that is in
anyway in violation of any valid law, ordinance,or regulation of any federal, state, county, or local
governmental agency,body,or entity. Furthermore,Lessee shall not maintain,commit,or permit the
maintenance or commission of any nuisance as now or hereafter defined by any statutory or
decisional law applicable to the Leased Premises or any part of the Leased Premises.
3.5 Additional Uses.
The Leased Premises may also be used for any purposes which are reasonably related to the
primary purpose of operating a primary health care services clinic, except for the following specific
uses:
1 Pharmacy services that are open and available for use by the general public
(this prohibition shall not exclude the establishment of a pharmacy that sells prescription drugs/aon_
Prescription drugs and sundries exclusively to patients using Lessee's health centerl:
2. Family Planning Services.
Lessee shall not change the use of the Leased Premises without first obtaining such written
approval of Lessor.
3.6 Renewal/Extension.
Lessee shall have the option to renew this Lease on the same terms for an additional 60 month term
commencing at the end of the Original Term provided Lessee notifies Lessor in writing of its intent
to exercise such option a minimum of sixty (60) days prior to the end of the Original Term.
("Renewal Option ").
3.7 Payment of Taxes.
Lessor shall pay all current and past due real property taxes and assessments, general, special,
ordinary, or extraordinary and improvement bond or bonds, if any (collectively, "Real Property
Taxes")applicable to the Leased Premises during the term of this Lease.Lessee shall pay any and all
taxes,if any, levied or assessed and which become payable during the term hereof only upon its own
equipment, furniture, fixtures, and any other personal property located in or about the Leased
Premises and no other.Any and all taxes and assessments and installments of taxes and assessments
required to be paid by Lessee under this Lease,if any, shall be paid by Lessee before each such tax,
assessment, or installment of tax or assessment becomes delinquent. Lessee shall deliver to Lessor
the receipt(s) evidencing the payment of any taxes, assessments, and other charges required under
this Section or Lessee shall retain at its sole cost and expense for the tern of this Lease a tax service
to notify Lessor whether the taxes, assessments, and other charges have been paid by Lessee as
required under this Section.
3.7.1 Tax Returns and Statements.
Lessor shall,as between Lessor and Lessee,have the duty of attending to,preparing,
making,and filing any statement,return,report,or other instrument required or permitted by law in
connection with the determination,equalization,reduction,or payment of any taxes,assessments,or
other charges that are or may be levied on or assessed against the real property and Lessor's personal
property located on or in the Leased Premises and the leasehold estate created by this Lease.
3.7.2 Tax Hold-Harmless Clause.
Lessor shall indemnify and hold Lessee and its officers,officials,employees,agents,
attorneys,and volunteers and property free and harmless from any liability,loss,or damage resulting
from any taxes, assessments, or other charges required by this Section 3.7 to be paid by Lessor and
from all interest,penalties, and other sums imposed thereon and from any sales or other proceedings
to enforce collection of any such taxes, assessments, or other charges.
3.8 Utilities and Janitorial Services.
Lessee shall pay for all utilities serving the Lessor Property, including all connection fees,
and related monthly service and usage charges associated with the Lessor Property, including,
without limitation,facsimile and computer expenses. Lessee shall also pay for all janitorial services
for the Lessor Property. Lessee shall pay all charges for electricity, gas, water, sewer, refuse
disposal, alarm service and any related expenses relating to the Lessor Property.
3.9 Signage.
The Lessee may provide, at its own cost and expense,signage in a manner consistent with all
applicable local laws,rules and regulations. Such signing shall be in substantial conformance to the
attached Exhibit "B."
3.10 Improvements.
The definition of the "Leased Premises " does not include any buildings, structures and
improvements hereafter located on the Leased Premises("Improvements"),the ownership of which
will be retained by Lessee, subject to the provisions of this Lease. Lessee and Lessor acknowledge
the separation of title to the Leased Premises and the Improvements and the Parties acknowledge that
the separation shall not change the character of the Improvements as real property and that the same
shall be and remain real property.
3.10.1 Ownership of Improvements.
Title to Improvements made to the Leased Premises shall be determined in
accordance with the following:
3.10.1.1 Title to all Improvements on the Leased Premises made by
Lessor shall be owned by Lessor.
3.10.1.2 Title to all Improvements on the Leased Premises made by
Lessee shall be owned by Lessee until expiration of the term or earlier termination of this Lease. All
Lessee Improvements on the Leased Premises at the expiration of the term or earlier termination of
this Lease, upon payment by Lessor to Lessee of a sum equal to the fair market value of such
improvements calculated at the point in time in which the Lease expires or is earlier terminated,shall
become Lessor's property. Upon receipt of such payment Lessee shall surrender the Lessee
Improvements to Lessor at the expiration of the term or earlier termination of this Lease, free and
clear of all liens and encumbrances,other than those,if any,permitted under this Lease or otherwise
created or consented to by Lessor in writing.Upon receipt of the payment described in this section,
Lessee agrees to execute,acknowledge,and deliver to Lessor any instrument requested by Lessor as
necessary in Lessor's opinion to convey or otherwise perfect Lessor's right,title, and interest to the
Lessee Improvements and the Leased Premises.
3.10.1.3 Title to all Improvements on the Leased Premises financed by
loans and/or grants for which Lessor and Lessee were co-applicants("Joint Improvements"),shall be
owned by each respective Party based upon a fifty percent(50%)ownership interest for each Party.
All Joint Improvements on the Leased Premises at the expiration of the term or earlier termination of
this Lease,upon payment by Lessor to Lessee of a sum equal to fifty percent(50%)of the fair market
value of such improvements calculated at the point in time in which the Lease expires or is earlier
terminated, shall become Lessor's property. Upon receipt of such payment Lessee shall surrender
their interest in the Joint Improvements to Lessor at the expiration of the term or earlier termination
of this Lease, free and clear of all liens and encumbrances,other than those, if any,permitted under
this Lease or otherwise created or consented to by Lessor in writing. Upon receipt of the payment
described in this section, Lessee agrees to execute, acknowledge, and deliver to Lessor any
instrument requested by Lessor as necessary in Lessor's opinion to convey or otherwise perfect
Lessor's right, title, and interest to the Joint Improvements and the Leased Premises.
Lessee shall repair any damaged portions of the Leased Premises occasioned by the
removal of the Lessee Improvements or Joint Improvements that are not purchased by Lessor.
3.10.2 Lessor Approval Required.
No Lessee Improvements shall be constructed or maintained on the Leased Premises
without Lessor's prior written approval,which approval shall not unreasonablybe withheld,delayed,
impaired or obstructed. Lessee shall, at its sole cost, expense and liability, obtain all permits and
entitlements required for such Lessee Improvements.
3.11 Abandonment.
Except as otherwise provided herein, the Lessee shall not vacate or abandon the Leased
Premises at anytime during the term of this Lease.Vacation or abandonment of the Leased Premises
in violation of this Section 3.11 may be treated by Lessor as a material breach of this Lease.
3.12 Acceptance; Surrender.
Except as otherwise provided herein, the Lessee accepts the Leased Premises as being in
good condition for the above-stated use. On expiration of the term of this Lease or earlier
termination of this Lease,Lessee shall surrender the Leased Premises and all improvements in or on
the Leased Premises to Lessor in as good, safe, and clean condition as practicable,reasonable wear
and tear excepted.
3.13 No Partnership or Joint Venture.
Except for the joint ownership of the Joint Improvements, nothing in this Lease shall be
construed to render the Lessor in anyway or for any purpose a partner,joint venturer,or associate in
any relationship with Lessee other than that of Lessor and lessee,nor shall this Lease be construed to
authorize either to act as agent for the other.
3.14 Maintenance and Repair.
Except to the extent caused by the gross negligence or willful misconduct of Lessee or
Lessee's employees, licensees and/or agents, Lessor shall maintain in good repair the heating,
ventilation and cooling system, plumbing and electrical systems, exterior walls, foundations,
structural elements,windows,roof, sidewalks, common areas and other like portions of the Leased
Premises and Lessor Property. Lessor shall not be required to repair any of the above items unless
and until Lessee has notified Lessor in writing of the need for such repairs or replacement. Once
notified, Lessor shall complete any and all needed repairs and replacements within a reasonable
period of time at no cost or expense to the Lessee, except to the extent that such repairs or
replacements are attributable in whole or in part to the gross negligence or willful misconduct of the
Lessee, its employees, agents, contractors, and/or licensees. For purposes of this section, a
"reasonable period of time" for commencing repairs shall be determined based on the particular
circumstances but shall in no event exceed five (5) calendar days, provided, however,that if the
nature of the maintenance or repair is such that more than five(5)calendar days after such notice are
reasonably required for its performance,whether due to the complexity of the repair or maintenance
r due to Lessor's legal obligation to obtain bids for the repair or maintenance,then Lessor shall not
be in breach of this Lease if performance is commenced within a reasonable time and thereafter
diligently pursued to completion.
In the case of the need for immediate maintenance or repair that is required in order to
maintain and/or protect the health, safety, welfare or security of Lessee or Lessee's employees,
licensees and/or agents and the general public, Lessor shall commence such maintenance and/or
repair immediately upon notice of the need therefore and thereafter diligently pursue such
maintenance and/or repair without interruption to completion.Except as specifically provided herein,
Lessee shall, at Lessee's sole expense, keep the Leased Premises (including any and all
improvements,alterations,fixtures and furnishings used by Lessee and not otherwise covered herein)
in good order, repair and condition at all times during any term of this Lease reasonable wear and
tear excepted. Lessee shall, at Lessee's sole expense,promptly and adequately repair all damage to
the Leased Premises caused by the gross negligence or willful misconduct of Lessee or Lessee's
employees, licensees and/or agents and replace or repair all damaged or broken fixtures and other
improvements damaged thereby. At Lessor's option, or if Lessee fails to make such repairs,Lessor
may, but need not, make the repairs and replacements. On receipt of invoice from Lessor, Lessee
shall pay Lessor's out-of-pocket costs incurred in connection with such repairs and replacements
plus ten(10)percent of such costs,to reimburse Lessor for all overhead and general conditions,fees
and other costs and expenses arising from Lessor's involvement with such repairs and replacements.
Lessee waives and releases its rights,including its rights to make repairs at Lessor's expense,under
California Civil Code sections 1941-1942 or any similar law, statute or ordinance now or hereinafter
in effect.
3.14.1 Option to Terminate Lease for Destruction.
Either Party shall have the right to terminate this Lease if the Leased Premises,
including all improvements thereto, are destroyed by a casualty. For purposes of this Section,
"destroyed" shall mean that the estimated repair cost of the Leased Premises,even though covered by
insurance, exceed$314.075.00,including improvements thereto. If the estimated repair cost of the
Leased Premises,does not exceed$314.075.00,including improvements thereto then Lessor shall,at
Lessor's sole expense, promptly repair such damage as soon as reasonably possible and this Lease
shall continue in full force and effect.Provided,however,that in the event such repair cannot despite
Lessor's diligent efforts be accomplished in a reasonable time then Lessee shall be entitled at its
option to immediately terminate this Lease.Lessee shall have the right to reimbursement from Lessor
for any funds contributed by Lessee to make emergency repairs of any such damage or destruction
required in order to protect health, safety,welfare and security to comply with the requirements of
any law or the instructions of a governmental agency and/or to prevent injury or damage or further
damage to any of Lessee's property, the lessee Improvements or the Leased Premises.
3.14.2 Application of Insurance Proceeds.
Notwithstanding anything to the contrary contained in this Lease, any and all fire or
other insurance proceeds that become payable at any time during the term because of damage to or
destruction of any improvements on the Leased Premises shall be paid to Lessee and applied by
Lessee toward the cost of repairing and restoring the damaged or destroyed improvements on or
about the Leased Premises.
3.15 Waste and Covenant of Quiet Enjoyment.
Lessee shall not commit, or allow to be committed, any waste upon the Leased Premises,or
any nuisance or other act which may disturb the quiet enjoyment of the Lessor or any other lessee or
occupant of the Lessor Property.
3.16 Insurance.
Lessee shall procure and maintain for the duration of the Lease insurance against claims for
injuries to personal or damages to property which may arise from or in connection with the use of the
Leased Premises by the Lessee,its agents,representatives, employees,licensees,invitees,guests or
subcontractors. Lessee shall obtain and furnish to Lessor proof of coverage as to each type of
insurance required.
3.16.1 Minimum Scope of Insurance.
Coverage shall be at least broad as:
3.16.1.1 Commercial General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence) form CG 0001.
3.16.1.2 Automobile Liability. Insurance Services Office Business Auto
Coverage form number CA 0001, code 1 (any auto).
3.16.1.3 Workers' Compensation and Employers' Liability: Workers'
Compensation Insurance as required by the Labor Code of the State of California and Employers
Liability Insurance.
3.16.2 Minimum Limits of Insurance.
Limits of insurance shall be:
3.16.2.1 Commercial General Liability: $1,000,000 combined single
limit per occurrence for bodily injury,personal injury and property damage. If commercial General
Liability Insurance or other form with a general aggregate limit is used, either the general aggregate
limit shall apply separately to the Leased Premises or the general aggregate limit shall be twice the
required occurrence limit.
3.16.2.2 Automobile Liability: $1,000,000 combined single limit per
accident for bodily injury and property damage.
3.16.2.3 Workers'Compensation and Employers Liability: Workers'
Compensation limits as required by the Labor Code of the State of California and Employers
Liability limits of$1,000,000 per accident. The Lessee's General Liability Insurance, including
occupational disease coverage,for the Lessee and all persons and/or subcontractors employed or to
be employed in the performance of this Lease,which insurance shall at all times be maintained in
strict accordance with this Lease,and the provisions of Section 3700 et sem.of the Labor code which
requires every employer to be insured against liability for Workers' Compensation or to undertake
self-insurance in accordance with the provisions of the Code. Use by the Lessee of "Workers'
Compensation Waiver " forms will necessitate the filing of said waiver with Lessor for each
individual by the Lessee prior to that individual commencing any work under this Lease. Failure to
comply with this requirement shall constitute a material breach of this Lease, and may result in
termination of this Lease at Lessor's sole discretion.
3.16.3 Endorsements.
The insurance policies shall contain the following provisions,or Lessee shall provide
endorsements on forms supplied or approved by the Lessor to add the following provisions to the
insurance policies:
3.16.3.1 General Liability: (1) The Lessor, its officials, officers,
employees and agents shall be covered as additional insureds with respect to the use of the Leased
Premises or any activities on the Leased Premises by the Lessee or its officials,officers,employees,
agents, guests or contractors; and(2)the insurance coverage shall be primary insurance as respects
the Lessor,its officials,officers, employees and agents,or if excess,shall stand in an unbroken chain
of coverage excess of the Lessee's scheduled underlying coverage. Any insurance or self-insurance
maintained by the Lessor,its officials,officers,employees and agents shall be excess of the Lessee's
insurance and shall not be called upon to contribute with it in any way.
3.16.3.2 Automobile Liability: (1) The Lessor, its officials, officers,
employees and agents shall be covered as additional insureds with respect to the ownership,
operation,maintenance, use,loading or unloading of any auto owned,leased,hired or borrowed by
the Lessee or for which the Lessee is responsible; and (2) the insurance coverage shall be primary
insurance as respects the Lessor,its directors,officers,employees and agents,or if excess,shall stand
in an unbroken chain of coverage excess of the Lessee's scheduled underlying coverage. Any
insurance or self-insurance maintained by the Lessor,its directors,officers,employees or agents shall
be excess of the Lessee's insurance and shall not be called upon to contribute with it in any way.
3.16.3.3 Workers' Compensation and Employers Liability Coverage:
The insurer shall agree to waive all rights of subrogation against the Lessor, its directors, officers,
employees and agents for losses paid under the terms of the insurance policy which arise from work
performed by the Lessee.
3.16.4 Fire and Casualty Insurance.
Lessee shall, at Lessee's own cost and expense, at all times during the term of this
Lease,keep all Lessee Improvements on the Leased Premises insured for their full replacement value
by insurance companies authorized to do business in the State of California against loss or
destruction by fire and the perils commonly covered under the standard extended coverage
endorsement to fire insurance policies in the county where the Leased Premises are located. For as
long as there is any leasehold encumbrance in existence, that policy shall also contain a standard
lender endorsement.
3.16.5 Specific Perils to Be Insured.
Notwithstanding anything to the contrary contained in Section 3.16.4 of this Lease,
the insurance required by Section 3.16.4 of this Lease shall,whether or not included in the standard
extended coverage endorsement referred to in Section 3.16.4,insure all improvements on the Leased
Premises against loss or destruction by windstorm, cyclone, tornado, hail, explosion, riot, riot
attending a strike,civil commotion,malicious mischief,vandalism,aircraft,fire,smoke damage,and
sprinkler leakage, unless such coverage is not commercially reasonable and available.
3.16.6 Separation of Insureds.
All insurance required by this Section 3.16 shall contain standard separation of
insureds provisions. In addition, such insurance shall not contain any special limitations on the
scope of protection afforded to the Lessor or its officials, officers, employees or agents.
3.16.7 Verification of Coverage.
Lessee shall furnish Lessor with Certificates of Insurance and with original
endorsements effecting coverage required by this Lease. The certificates and endorsements for each
insurance policy are to be signed by a person authorized by that insurer to bind coverage on its
behalf. All required certificates and endorsements shall,be provided to Lessor within a reasonable
time after executing this Lease Agreement. Lessor reserves the right to require complete,certified
copies of all required insurance policies at that time.
3.16.8 Acceptability of Insurers.
All insurance shall be provided by insurers having a current A.M. Best's rating of
A:VII or better and acceptable to Lessor.
3.16.11 Notice.
Lessee shall maintain all insurance coverages required by the Agreement throughout
the term of this Agreement. Each insurance policy required by this Lease shall be endorsed to state
that: (1)coverage shall not be canceled except after thirty(30)days prior written notice by certified
mail, return receipt requested, has been given to the Lessor.
3.17 Assumption of Risk; Exculpation of Lessor.
Except as to the obligations of Lessor contained in this Lease,Lessee assumes all risk of loss
to itself,which in any manner may arise out of Lessee's use of the Leased Premises,including,to the
extent applicable, the Lessor Property, under this Lease. Notwithstanding any provisions to the
contrary contained in this Lease and except for gross negligence or willful misconduct, neither
Lessor nor any of Lessor's officers,officials, employees,affiliates,attorneys,advisors or agents shall
have any personal liability directly or indirectly with regard to this Lease or the transaction described
in this Lease,or any agreements made or entered into under or in connection with this Lease or any
amendment or amendments to any of the foregoing made at any time. Except with respect to gross
negligence or willful misconduct,if Lessee asserts any claim arising out of or in connection with this
Lease or the transaction described in this Lease, Lessee's sole recourse shall be to the estate interest
of Lessor in and to the Leased Premises. No other properties or assets of Lessor shall be subject to
levy,attachment,execution,or other enforcement procedures for the satisfaction of any judgment(or
other judicial process) or for the satisfaction of any other remedy of Lessee's arising out of or in
conjunction with this Lease or the transaction described in this Lease. Neither Lessor nor Lessor's
officers, officials, employees, agents, contractors, advisors or affiliates shall have any personal .
liability or obligation whatsoever in connection with this Lease,except to the extent such liability is
created by the gross negligence or willful misconduct of Lessor or Lessor's officers, officials,
employees, agents, contractors, advisors or affiliates..
3.18 Condemnation
3.18.1 Total Condemnation.
If,during the term of this Lease, fee title to all of the Leased Premises or to all of the
improvements,or the entire estate of the Lessor is taken under the power of eminent domain by any
public or quasi-public agency or entity (including Lessor) ("Total Taking"), this Lease shall
automatically terminate as of 12:01 A.M. on whichever of the following first occurs: the date legal
title becomes vested in the agency or entity exercising the power of eminent domain, or the date
actual physical possession is taken by the agency or entity exercising the power of eminent domain.
Thereafter, both Lessee and Lessor shall be released from all obligations under this Lease, except
those specified in Section 3.18.3.
3.18.2 Termination for Partial Taking.
Lessee may terminate this Lease upon the occurrence of less than a Total Taking by
serving written notice of termination on Lessor stating that this Lease shall terminate thirty(30)days
thereafter. If Lessee elects to terminate this Lease, the effective date of termination shall be the
earlier of the date of termination specified in the Lessee's notice to Lessor or the date the condemning
authority takes physical possession of the portion of the Leased Premises taken by eminent domain.
On termination of this Lease pursuant to this Section 3.18.2,all subleases and subtenancies in or on
the Premises or any portion or portions of the Premises created by Lessee under this Lease, if any,
also shall terminate and the Leased Premises shall be delivered to Lessor free and clear of all such
subleases and subtenancies; provided, however, that Lessor may, at Lessor's option, by mailing
written notice to any subtenant,allow the subtenant to attom to Lessor and continue its occupancy on
the Leased Premises as a tenant of Lessor. On termination of this Lease pursuant to this Section
3.18.2, both Lessee and Lessor shall be released from all obligations to the other under this Lease
except those specified in Section 3.18.3.
3.18.3 Condemnation Award.
Any compensation or damages awarded or payable because of the taking of all or any
portion of the Leased Premises by eminent domain shall be allocated between Lessor and Lessee as
follows:
(a) All compensation or damages awarded or payable for the taking by eminent
domain of any land that is part of the Leased Premises or any Improvements shall be paid to and be
the sole property of Lessor,provided however that Lessee shall be entitled to prosecute any claims
for compensation available to Lessee under Eminent Domain law including without limitation lease
bonus value, goodwill, damages for fixtures, improvements and personal property and relocation
benefits.All such compensation or damages shall be payable to Lessee as its sole property and not to
Lessor.
(b) All compensation or damages awarded or payable for the taking by eminent
domain of any of the Joint Improvements shall be paid to and be the sole property of Lessor,
provided however that Lessee shall be entitled to prosecute any claims for fifty percent(50%)of the
compensation available to Lessee under Eminent Domain law. All such compensation or damages
shall be payable to Lessee as its sole property and not to Lessor.
(c) Any severance damages awarded or payable because only a portion of the
Leased Premises is taken by eminent domain shall be the sole and separate property of the Lessor,
provided however that Lessee shall be entitled to prosecute any claims for compensation available to
in under Eminent Domain law including without limitation lease bonus value,goodwill,damages for
fixtures, improvements and personal property and relocation benefits. All such compensation or
damages shall be payable to Lessee as its sole property and not to Lessor.
(d) If title and possession ofonly a portion of the Leased Premises is taken under
the power of eminent domain by any public or quasi-public agency or entity during the term and
Lessee does not under Section 3.18.2 terminate this Lease,then this Lease shall terminate as to the
portion of the Leased Premises taken under eminent domain as of 12:01 A.M. on whichever of the
following first occurs: the date title is taken, or the date actual physical possession of the portion
taken by eminent domain is taken, by the agency or entity exercising the eminent domain power.
Furthermore, any Lease Payment payable under this Lease shall, as of that time, be reduced in the
same proportion that the value of the portion of the Leased Premises taken by eminent domain bears
to the full value of the Leased Premises at that time;provided,however,that Lessee shall replace any
improvements or facilities with equivalent new facilities on the remaining portion of the Leased
Premises and do all other acts required by the eminent domain taking to make the remaining portion
of the Leased Premises fit for the uses specified in this Lease.
(e) A voluntary conveyance by Lessor of title to all or a portion of the Leased
Premises to a public or quasi-public agency or entity in lieu of and under threat by that agency or
entity to take it by eminent domain proceedings shall be considered a taking of title to all or any
portion of the Leased Premises under the power of eminent domain subject to the provisions of this
Section 3.18.
3.19 Indemnity.
Lessor and Lessee shall indemnify,defend and hold each other and their respective,officials,
officers, employees, agents, attorneys,volunteers, and the property of Lessor, including the Lessor
Property and any improvements now or hereafter on the Lessor Property including Less
Improvements free and harmless from any and all liability, claims, loss, damages, or expenses
resulting from Lessor's performance or non-performance of its obligations under this Lease and
Lessee's occupation and use of the Leased Premises pursuant to this Lease,respectively, including,
without limitation, any liability, claim, loss, damage, or expense arising by reason of:
(a) The death or injury of any person who is an employee,agent,licensee,invitee,
or guest of Lessor or Lessee, respectively or by reason of the damage to or destruction of any
property, including property owned by Lessor or Lessee, respectively or by any person who is an
employee, agent licensee, invitee, or guest of Lessor or Lessee, respectively, from any cause
whatever while that person or property is in or on the Leased Premises or in any way connected with
the Leased Premises or with any of the improvements or personal property on the Leased Premises;
(b) The death or injury of any person who is an employee,agent,licensee,invitee,
or guest of Lessor or Lessee, respectively, or by reason of the damage to or destruction of any
property, including property owned by Lessor or Lessee, respectively, or any person who is an
employee, agent, licensee, invitee, or guest of Lessor or Lessee, respectively, caused or allegedly
caused by either(1) the condition of the Leased Premises or some building or improvement on the
Leased Premises, or (2) some act or omission on the Leased Premises of Lessor or Lessee,
respectively,or any person in,on, or about the Leased Premises with the permission and consent of
Lessor or Lessee, respectively;
(c) Any work performed on the Leased Premises or materials furnished to the
Leased Premises at the instance or request of Lessor or Lessee,respectively, or any person or entity
acting for or on behalf of Lessor or Lessee, respectively;
(d) Lessor's or Lessee's respective failure to perform any provision of this Lease or
to comply with any requirement of law or any requirement imposed on Lessor or Lessee,
.respectively, or the Leased Premises by any duly authorized governmental agency or political
subdivision; or
(e) Damage or injury to the Lessor Property,including the Leased Premises, and
any improvements on such property,caused by Lessor or Lessee,respectively,or any person who is
an employee, agent, licensee, invitee, or guest of Lessor or Lessee,respectively.
3.19.1 Limitation of Liability.
The term"Lessor"as used in this Lease so far as covenants or obligations on the part
of the Lessor are concerned shall be limited to mean and include only the owner or owners at the
time in question of the fee of the Leased Property and in the event of any transfer or transfers of the
title to such fee Lessor herein named (and in case of any subsequent transfers or conveyances the
then grantor) shall be automatically freed and relieved from and after the date of such transfer or
conveyance from all obligations on the part of Lessor contained in this Lease to be performed
thereafter, provided that any prepaid rent or trust funds in the hands of such Lessor or the then
grantor at the time of such transfer, shall be transferred to the grantee or transferee, who shall
expressly assume, subject to the limitations of this subsection, all of the terms, covenants and
conditions in this Lease contained on the part of Lessor thereafter to be performed,it being intended
by this Section 3.19.1 that the covenants and obligations contained in this Lease on the part of Lessor
shall, subject to the provisions of this subsection,be binding on Lessor,its successors and assigns,
only during and in respect to their respective successive periods of ownership.
3.20 Claims or Liens.
Lessor shall not suffer or permit any liens to be made or filed against the Leased Premises by
reason of labor forces, services or materials supplied(or claimed to have been supplied) to Lessee,
and Lessee agrees to indemnify and hold harmless the Lessor and the Lessor's property,including the
Leased Premises and any improvements now or hereafter on the Lessor Property, against any such
liens. If any such lien shall at any time be filed against the.Lessor Property, Lessee shall, within
thirty(30)days after notice to Lessor of the filing thereof,cause the same to be discharged of record;
provided,however,that Lessee shall have the right to contest the amount or validity,in whole or in
part,of any such lien by appropriate proceedings. In the event of such protest,Lessee shall notify the
Lessor. Lessee shall prosecute the contest of such proceedings with due diligence and at no cost or
expense to the Lessor.
3.21 Encumbrances t
Lessee acknowledges that Lessee shall not have the right and Lessee shall not assign,
encumber, hypothecate or otherwise transfer any portion of this Lease or any interest herein, sublet
the Leased Premises or any part thereof or pemnit the use of the Leased Premises by any party other
than Lessee without the prior written consent of Lessor; which consent shall not unreasonably be
withheld, delayed, impaired or obstructed. Any of the foregoing prohibited acts shall be void and
shall, at the option of Lessor, terminate this Lease. This Lease shall not, nor shall any interest of
Lessee herein, be assignable by operation of law without the written consent of the Lessor, which
consent shall not unreasonably be withheld, delayed, impaired or obstructed. Notwithstanding
anything to the contrary contained in this Lease, nothing shall prevent Lessor from exercising
Lessor's right to assign, encumber, hypothecate or otherwise transfer any portion of the Leased
Premises,the Lessor Property,this Lease or any interest in the foregoing,provided however that all
of the terms,covenants and conditions in this Lease contained on the part of Lessor thereafter to be
performed shall be binding on Lessor, its successors and assigns, during and in respect to their
respective successive periods of ownership and provided the assignment, encumbrance or transfer
complies with the limitations contained in Section 3.5.
3.22 Default And Remedies
3.22.1 Continuation of Lease in Effect.
Should Lessee breach this Lease and abandon the Leased Premises prior to the natural
P
expiration of the applicable term, Lessor may continue this Lease in effect by not terminating
P
Lessee's right to possession of the Leased Premises,in which event Lessor shall be entitled to enforce
all of Lessor's rights and remedies under this Lease,including the right to recover any Lease Payment
specified in this Lease as it becomes due under this Lease. Should Lessor breach this Lease,Lessee
may at its option terminate this Lease and abandon the Leased Premises prior to the natural
expiration of the applicable term or continue this Lease in effect, in which event Lessee shall be
entitled to enforce all of Lessee's rights and remedies under this Lease.
3.22.2 Termination and Unlawful Detainer.
In the event of a default by Lessee under this Lease,Lessor may terminate this Lease
by written notice to Lessee and:
(a) Bring an action to recover any amount necessary to compensate Lessor for all
detriment approximately caused by Lessee=s failure to perform Lessee=s obligations under this
Lease; and
(b)Bring an action,in addition to or in lieu of the action described in subsection(a)of
this Section 3.22.2,to reenter and regain possession of the Leased Premises in the manner provided
by the laws of unlawful detainer of the State of California then in effect.
3.22.3 Breach and Default by Lessee.
All covenants and agreements contained in this Lease are declared to be conditions to
this Lease and to the term hereby leased to Lessee. Should Lessee fail to perform any covenant,
condition, or agreement contained in this Lease and the default not be cured within thirty(30)days
after written notice of the default is served on Lessee by Lessor,then Lessee shall be in default under
this Lease. In addition to Lessee's failure to perform any covenant, condition, or agreement
contained in this Lease within the cure period permitted by this Section 3.22.4,the following shall
constitute a default by Lessee under this Lease:
(a) The appointment of a receiver to take possession of the Leased Premises,or of
Lessee's interest in, to, and under this Lease, the leasehold estate or of Lessee's operations on the
Leased Premises for any reason,including,without limitation,assignment for benefit of creditors or
voluntary or involuntary bankruptcy proceedings, when not released within 60 days;
(b) An assignment by Lessee for the benefit of creditors;or the voluntary filing by
Lessee or the involuntary filing against Lessee of a petition,other court action,or suit under any law
for the purpose of (1) adjudicating Lessee a bankrupt, (2) extending time for payment, (3)
satisfaction of Lessee's liabilities,or(4)reorganization,dissolution,or arrangement on account of,or
to prevent, bankruptcy or insolvency; provided, however, that in the case of an involuntary
proceeding, if all consequent orders, adjudications, custodies, and supervisions are dismissed,
vacated,or otherwise permanently stayed or terminated within 90 days after the filing or other initial
event, then Lessee shall not be in default under this Section.
(c) The subjection of any right or interest of Lessee to or under this Lease to
attachment,execution,or other levy,or to seizure under legal process when the claim against Lessee
is not released within ninety(90) days.
3.22.4 Breach by Lessor.
Should Lessor breach this Lease, Lessee may at its option terminate this Lease and abandon the
Leased Premises prior to the natural expiration of the applicable term and pursues any remedy
available to it by law or continue this Lease in effect, in which event Lessee shall be entitled to
enforce all of Lessee's rights and remedies under this Lease in any manner provided by law.
3.23 Severability.
If any term, covenant, condition or provision of this Lease is held by a court of competent
jurisdiction to be invalid,void or unenforceable,the remainder of the provisions hereof shall remain
in full force and shall not be affected, impaired or invalidated thereby.
3.24 Attorneys' Fees.
In the event of any action or proceeding (including, without limitation, any bankruptcy
proceeding) to enforce or construe any of the provisions of this Lease, the prevailing party in any
such action or proceeding shall be entitled to attorneys' fees and costs.
3.25 Waiver.
The waiver by either Party of the breach of any provision of this Lease shall not be deemed to
be a waiver of any subsequent breach of that or any othei provision.
3.26 Binding on Successors.
This Lease shall apply to and be biding upon the heirs,successors,executors,administrators,
and assigns of the Parties hereto.
3.27 Captions.
The various headings contained herein and the grouping of the provisions of this Lease into
separate paragraphs are for the purpose of convenience only, and shall not be considered in
interpreting the provisions of this Lease.
3.28 Notices.
Any and all notices which are required under the terms and conditions of this Lease or which
either Lessor or Lessee desire to serve upon the other,shall be in writing and shall be deemed served
when delivered personally, or when deposited in the United States mail, postage prepaid, return
receipt requested, addressed as follows:
LESSEE:
LESSOR: El Proyecto del Barrio
City of Azusa 8902 Woodman Avenue
213 East Foothill Blvd. Arleta, CA 91331
Azusa, CA. 91702-1295 ATTN: Corinne Sanchez, Pres./CEO
ATTN: City Manager
With Copy to:
Best, Best &Krieger, LLP
3750 University Ave.
Riverside, CA. 92502
ATTN: Sonia Carvalho, Esq.
Any notice so given shall be considered served on the other party three(3)days after deposit
in the U.S.mail,first class postage prepaid,return receipt requested,and addressed to the party at its
applicable address.Actual notice shall be deemed adequate notice on the date actual notice occurred
regardless of the method of service.
3.28.1 Replacement of Statutory Notice Requirements.
When this Lease requires service of a notice, that notice shall replace rather than
supplement any equivalent or similar statutory notice, including any notices required by Code of
Civil Procedure section 1161 or any similar or successor statute. When a statute requires service in a
particular manner, service of that notice (or a similar notice required by this Lease) in the manner
required by Section 3.28 shall replace and satisfy the statutory service of notice procedures,including
those required by Code of Civil Procedure Section 1162 or any similar or successor statute.
3.29 Force Majeure.
Except as otherwise expressly provided in this Lease,if the performance of any act required
by this Lease to be performed by either Lessee or Lessor is prevented or delayed by reason of any act
of God,strike,lockout, labor trouble,inability to secure materials,restrictive governmental laws or
regulations,riot,civil unrest,military action,terrorism,flood,earthquake,or other natural disaster or
any other cause(except financial inability)not the fault of the Party required to perform the act,the
time for performance of the act will be extended for a period equivalent to the period of delay and
performance of the act during the period of delay will be excused. However, nothing contained in
this section shall excuse the prompt payment of Lease Payments by Lessee as required by this Lease
or the performance of any act rendered difficult or impossible solely because of the financial
condition of the Party required to perform the act.
3.30 Hazardous Substance Conditions.
If a Hazardous Substance Condition occurs,unless Lessee is legally responsible therefor(in
which case Lessee shall make the investigation and remediation thereof required by applicable laws,
regulations or other requirements and this Lease shall continue in full force and effect),Lessor shall
either (i) investigate and remediate such Hazardous Substance Condition as soon as reasonably
possible at Lessor's expense,in which event this Lease shall continue in full force and effect,or(ii)if
the estimated cost to investigate and remediate such condition exceeds$100,000,give written notice
to Lessee within thirty (30) days after receipt by Lessor of knowledge of the occurrence of such
Hazardous Substance of Condition of Lessor's desire to terminate this Lease as of the date sixty(60)
days following the date of such notice. In the event Lessor elects to give such notice of Lessor's
intention to terminate this Lease,Lessee shall have the right within then(10)days after the receipt of
such notice to give written notice to Lessor of Lessee's commitment to pay for the excess costs of
investigation and remediation of such Hazardous Substance Condition to the extent required by
applicable laws, regulations or other requirements. Lessee shall provide Lessor with the funds
required of Lessee or satisfactory assurance thereof within thirty (30) days following said
commitment by Lessee. In such event this Lease shall continue in full force and effect, and Lessor
shall proceed to make such investigation and remediation as soon as reasonably possible after the
required funds are available. If Lessee does not give such notice and provide the required funds or
assurance thereof within the time period specified above, this Lease shall terminate as of the date
specified in Lessor's notice of termination.
3.30.1 Definition of Hazardous Substance.
The term "Hazardous Substance" as used in this Lease shall mean any product,
substance,chemical,material or waste whose presence,nature,quantity and/or intensity of existence,
use,manufacture,disposal, transportation, spill, release or effect, either by itself or in combination
with other materials expected to be on the Premises,is either: (I)potentially injurious to the public
health, safety or welfare, the environment, or the Preinises, (ii) regulated or monitored by any
governmental authority;or(iii)a basis for potential liability of Lessor to any governmental agency or
third party under any applicable statute or common law theory.Hazardous Substance shall include,
but not be limited to, hydrocarbons, petroleum, gasoline; crude oil or any products or by-products
thereof. Lessee shall not engage in any activity in or about the Premises which constitutes a
Reportable Use(as hereinafter defined)of Hazardous Substances without the express prior written
consent of Lessor and compliance in a timely manner (at Lessee's sole cost and expense) with all
Applicable Requirements (as defined in Paragraph 6.3). "Reportable Use" shall mean (1) the
installation or use of any above or below ground storage tank(ii)the generation,possession,storage,
use transportation,or disposal of a Hazardous Substance that requires a permit from,or with respect
to which a report,notice,with respect to which any Applicable Laws require that a notice be given to
persons entering or occupying the Premises or neighboring properties. Notwithstanding the
foregoing,Lessee may,without Lessor's prior consent,but upon notice to Lessor and in compliance
with all Applicable Requirements,use any ordinary and customary materials reasonably required to
be used by Lessee in the normal course of the Permitted Use,so long as such use is not a Reportable
Use and does not expose the Premises or neighboring properties to any meaningful risk of
contamination or damage or expose Lessor to any liability therefor. In addition, Lessor may(but
without any obligation to do so) condition its consent to any Reportable Use of any Hazardous
Substance by Lessee upon Lessee's giving Lessor such additional assurances as Lessor, in its
reasonable discretion. deems necessary to protect itsell, the pubic and, the Premises and the
environment against damage, contamination or injury and/or liability therefor, including but not
limited to the installation (and, at Lessor's option,removal on or before Lease expiration or earlier
termination) of reasonably necessary protective modifications to the Premises (such as concrete
encasements) and/or the deposit of an additional Security Deposit under Paragraph 5 hereof.
3.30.2 Duty to Inform.
If either Lessor or Lessee knows,or has reasonable cause to believe,that a Hazardous
Substance is or has come to be located in, on under or about the Premises, the Buildings or the
Parking Area,other than as previously consented to,it shall immediately give the other written notice
thereof, together with a copy of any statement, report, notice, registration, application, permit,
business plan, license, claim, action, or proceeding given to, or received from, any governmental
authority or private parry concerning the presence, spill,release, discharge of,or exposure to, such
Hazardous Substance including but not limited to all such documents as may be involved in any
Reportable Use involving the Premises. Lessor and Lessee shall not cause or permit any Hazardous
Substance to be spilled or released in,on,under or about the Premises(including without limitation,
through the plumbing or sanitary sewer system).
3.30.3 Indemnification.
Lessor and Lessee shall indemnify,protect,defend and hold the other and,its agents,
employees and lenders,if any,harmless from and against any and all damages,liabilities,judgments,
costs, claims, liens, expenses,penalties, loss of permits and attorneys' and consultants' fees arising
out of or involving any Hazardous Substance brought onto the Premises by or for the other or by
anyone under the other's control. Lessor and Lessee's obligations under this Paragraph 6.2(c) shall
include, but not be limited to, the effects of any contamination or injury to person, property or the
environment created or suffered by the other,and the cost of investigation(including consultants'and
attorneys' fees and testing), removal, remediation, restoration and/or abatement thereof, or of any
contamination therein involved,and shall survive the expiration or earlier termination of this Lease.
No termination, cancellation or release agreement entered into by Lessor and Lessee shall release
Lessee or Lessor from its obligations under this Lease with respect to Hazardous Substances,unless
specifically so agreed by Lessor and Lessee in writing at the time of such agreement.
3.30.4 Compliance with Requirements
Lessor or Lessee shall, at their respective sole cost and expense,fully diligently and in
a timely manner, comply with all "Applicable Requirements", which term is used in this Lease to
mean all laws, rules, regulations, ordinances, directives, covenants, easements and restrictions of
record,permits,the requirements of any applicable fire insurance underwriter or rating bureau, and
the recommendations of their respective engineers and/or consultants,relating in any manner to the
Premises(including but not limited to matters pertaining to(1)industrial hygiene,(ii)environmental
conditions on, in under or about the Premises, including soil and groundwater conditions, and(iii)
the use, generation, manufacture, production, installation, maintenance, removal, transportation,
storage, spill, or release of any Hazardous Substance),now in effect or which may hereafter come
into effect as a result of their respective acts or omissions.Lessor or Lessee shall,within five(5)days
after receipt of the other's written request, provide the requestor copies of all documents and
information,including but not limited to permits,registrations,manifests,applications,reports and
certificates,evidencing compliance with any Applicable Requirements,and shall immediately upon
receipt,notify Lessor in writing(with copies of any documents involved)of any threatened or actual
claim,notice,citation,warning,complaint or report pertaining to or involving failure to comply with
any Applicable Requirements.
3.30.5 Inspection
Lessor,Lessor's agent employees,contractors and designated representatives and the
holders of any mortgages,deeds of trust or ground Leases on the Premises("Lenders")shall have the
right to enter the Premises at any time in the case of an emergency and otherwise at reasonable times
for the purpose of inspecting the condition of the Premises. The costs and expenses of any such
inspections shall be paid by Lessor.
3.31 Entire Agreement.
This Lease,along with any exhibits and attachments attached hereto and incorporated herein
by reference, constitutes the entire agreement between;the Lessor and the Lessee relative to the
Leased Premises, and may only be modified by mutual;consent of the parties in writing.
3.32 Time of Essence
Time is of the essence with respect to the performance of all obligations to be performed or
observed by the Parties under this Lease.
3.33 No Prior or Other Agreements
This Lease contains all agreements and understandings between the Parties with respect to
any matter mentioned herein, and no other prior or contemporaneous agreement or understanding
shall be effective.
3.34 Waivers.
No waiver by Lessor or Lessee of the Default or Breach of any term, covenant or condition
hereof by the other, shall be deemed a waiver of any other term,covenant or condition hereof, or of
any subsequent Default or Breach of the same or any other term, covenant or condition hereof.
Lessor's or Lessee's consent to, or approval of any such act shall be deemed to render unnecessary
the obtaining of consent to,or approval of,any subsequent or similar act,or be construed as the basis
of an estoppel to enforce the provision or provisions of this Lease requiring such consent..
3.35 Cumulative Remedies
No remedy or election hereunder shall deemed exclusive but shall, wherever possible, be
cumulative with all other remedies and law or in equity.
3.36 Covenants and Conditions
All provisions of this Lease to be observed or performed by Lessee are both covenants and
conditions.
3.37 Binding Effect; Choice of Law
This Lease shall be binding upon the Parties, their personal representatives, successors and
assigns and be governed by the laws of the State of California. Any litigation between the Parties
hereto concerning this Lease shall be initiated in the county in which the Premises are located.
3.38 Date of Notice
Any notice sent by registered or certified mail, return receipt requested, shall be deemed
given on the date of delivery shown on the receipt card,or if no delivery date is shown,the postmark
thereon. If sent by regular mail, the notice shall be deemed given forty-eight (48) hours after the
same is addressed as required herein and mailed with postage prepaid.Notices delivered by United
States Express Mail or overnight courier that guarantees next day delivery shall be deemed given
twenty-four(24)hours after delivery of the same to the United States Postal Service or courier.If any
notice is transmitted by facsimile transmission or similar means,the same shall be deemed served or
delivered upon telephone or facsimile confirmation of receipt of the transmission thereof,provided a
copy is also delivered via delivery or mail.If notice is received on a Saturday or a Sunday or a legal
holiday, it shall be deemed received on the next business day.
3.39 Consents
Wherever in this Lease the consent of a Party is required to an act by or for the other Party,
such consent shall not be unreasonably withheld,hindered or delayed.
3.40 Quiet Possession
Upon payment by Lessee of the rent for the Premises and the performance of all of the
covenants,conditions and provisions on Lessee's part to be observed and performed under this Lease,
Lessee shall have quiet possession of the Premises for the entire term hereof subject to all of the
provisions of this Lease.
3.41 Performance Under Protest
If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party
to the other under the provisions hereof,the Patty against whom the obligation to pay the money is
asserted shall have the right to make payment"under protest"and such payment shall not be regarded
as a voluntary payment and there shall survive the right on the part of said Party to institute suit for
recovery of such sum If it shall be adjudged that there was no legal obligation on the part of said
Party to pay such sum or anypart thereof,said Party shall be entitled to recover such sum or so much
thereof as it was not legally required to pay under the provisions of this Lease.
3.42 Authority
If either Party hereto is a corporation,trust, or general or limited partnership or government
entity, each individual executing this Lease on behalf of such entity represents and warrants that he
or she is duly authorized to execute and deliver this Lease on its behalf.
3.43 Entire Agreement.
This Agreement contains the entire Agreement;of the parties with respect to the subject
matter hereof,and supersedes all prior negotiations,understandings or agreements. This Agreement
may only be modified by a writing signed by both Parties.
3.44 Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original,
but all of which, taken together, shall constitute one and the same instrument.
IN WITNESS WHEREOF,the parties hereby execute this Lease effective upon the day and
year first above written.
[Signatures on following page]
z
LESSOR:
CITY OF AZUSA, a public body corporate and politic
By:
Name:
Its:
LESSEE:
El Proyecto del Barrio, a California non-profit organization
By:
Name:
Its:
ATTEST:
Secretary
APPROVED AS TO LEGAL FORM:
BEST BEST & KRIEGER LLP
By:
City Attorney
EXHIBIT A
Legal Description of Property
That certain real property located within the City of Azusa,County of Los Angeles, State of
California described as follows:
Lot 23 to 27 inclusive,Block 77 of the City of Azusa,in the County of Los Angeles, State of
California as shown on map recorded in Book 15, Pages 93 to 96 inclusive, of Miscellaneous
Records, in the office of the Recorder of said County.
EXHIBIT A-1
Diagram of Leased Premises
(see attached)
EXHIBIT B
Diagram of Proposed Sign
(see attached).
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CITY OF AZUSA
MINUTES OF THE REDEVELOPMENT AGENCY
REGULAR MEETING
MONDAY, SEPTEMBER 15, 2003—8:45 P.M.
The Board of Directors of the Redevelopment Agency of the City of Azusa met In
regular session at the above date.
Chairperson Madrid called the meeting to order. Call to Order
ROLL CALL Roll Call
PRESENT: DIRECTORS: HARDISON, STANFORD, CHAGNON, ROCHA,
MADRID
ABSENT: DIRECTORS: NONE
ALSO PRESENT: Also Present
General Counsel Carvalho, Executive Director Cole, City Department Heads, Deputy
Secretary Toscano,Sr.Office Specialist Hernandez.
THE CITY COUNCIL CONVENED JOINTLY WITH THE REDEVELOPMENT AGENCY AT jnt Cncl/CRA
8:45 P.M.TO CONDUCT THE FOLLOWING JOINT PUBLIC HEARING: Convene Jntly
W/CRA
Councilmember Chagnon recluse herself due to a conflict of Interest,she stepped down
from the dais. Chagnon step
down from dais
Attorney Carvalho stated that Councilmember Stanford was able to participate due to
issues resolved in regards to Azusa Pacific University.
CONTINUED JOINT PUBLIC HEARING - on the amendment to the Central Business Jnt CncVCRA
District and West End Redevelopment Projects and the proposed amendment to the West End Red
Implementation Plan for the Projects. Plan
Mayor/Chairwoman Madrid introduced the hearing giving a summary of events that
took place at previous meetings regarding this public hearing.
Economic/Redevelopment Director Hennessey addressed the hearing providing a M Hennesey
power point presentation that showed a map of the Redevelopment Area,and pointed addressed
out the addressees that are within the Plan Project. He further stated that since the last hearing
meeting,much communication has been received from Azusa Pacific University(APU)
in response to the language, having to do with the potential use of their property. It
was recommended to make a change in the plan amendment to state: if APU were in
effect,the specific plan would rule for their future use of properties within the project
area,APU and others,APU would be subject to the executive director's approval for
any future plans and would have to abide to the specific plan being approved today.
APU requested additional language, which upon reviewed by Redevelopment Legal
Council has been sufficient, it revises the last sentence of section 405 of the plan
amendment, and reads as follows:
"Except to the extent governed by a Specific Plan,the Agency may impose such other
reasonable restrictions as are necessary to protect the development and uses in the
Merged Project area."
City Manager/Executive Director Cole, discussed the issue on the City Attorneys R Cole
language change to The Foothill Center Eminent Domain Use. He Introduced Mr.Larry comments
Arsenal who explained that regarding the change on the bonding indebtedness of the
"� redevelopment plans, were two plans for the two separate areas and each had their
.s
own separate limits. With this change, they now have been merged,and money can 0
Flow between the two projects and support each other.
Mayor/Chairwoman Madrid read a change that was made to the staff report under the
acquisition of real property that read as follows:
"Furthermore, prior to the 4' anniversary of the effective date of the ordinances that
adopt this amendment and restated redevelopment plan the agency my not acquire by Madrid
condemnation any property located within that porton of the project area identified as comments
area 10 and the project's areas with legal description unless such condemnation is
requested in writing by the property owner." Project Area 10 is the Foothill Center.
The hearing was re-opened to hear testimony from the public regarding the described Hrg re-opened/
change on the acquisition of eminent domain on real property for the Foothill Center. closed
No testimony was received and the Mayor/Chairwoman closed the hearing.
Councilmember/Director Stanford asked If eminent domain could be extended to other
properties. Manager Cole/Executive Director,explained that in order to extend eminent R Cole
domain to other properties,a new process would have to take place such as the one comments
being finalized. This project approved is only affecting the properties presented on this
hearing.
Mayor Pro-tern/Co-Chairman Rocha stated that the only properties he will approve for Rocha comments
eminent domain are: the Foothill Center, area #10; corner of Newburgh, empty gas
station,and parcel adjacent,area#14; and North East corner of Arrow Highway and
Azusa,area#12,and South West Corner of Foothill and Pasadena. All other property
owners in the Downtown Area,have made concentrated efforts to improve themselves,
and this should be taken into consideration before exercising eminent domain.
I
Motion was made by Mayor/Chairwoman Madrid to limit eminent domain power to Motion to limit
only those properties described by Mayor Pro-tem/Co-Chairman Rocha, motion died eminent domain
for lack of second. (died)
Light discussion was held among council/directors in which staff explained that this is a Light discussion
long process and more work needs to be done through other procedures before
eminent domain is enforced.
Chairwoman Madrid offered a Resolution entitled:
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUS FINDING Res 03-R31
THAT THE USE OF TAXES ALLOCATED FROM THE MERGED PROJECT AREA,FOR THE Taxes allocated
PURPOSE OF IMPROVING, INCREASING, AND PRESERVING THE COMMUNITY'S from merged
SUPPLY OF LOW AND MODERATE INCOME HOUSING OUTSIDE THE MERGED project
PROJECT AREA WILL BE OF BENEFIT OT THE MERGED PROJECT AREA.
Moved by Director Hardison,seconded by Director Stanford to waive further reading
and adopt. Resolution passed and adopted by the following vote of the Agency:
AYES: DIRECTORS: HARDISON, STNAFORD, ROCHA,MADIRD
NOES: DIRECTORS: NONE
ABSTAIN: DIRECTORS: CHAGNON
Chairwoman Madrid offered a Resolution entitled:
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF•AZUSA
APPROVING THE EIGHTH AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE Res 03-R32
CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECTAND THIRD AMENDMENT V amend to
TO THE REDEVELOPMENT PLAN FOR THE WEST END REDEVELOPMENT PROJECT. CRA Plan Cent
Buss Dist
Moved by Director Stanford, seconded by Director Hardison to waive further•reading
and adopt. Resolution passed and adopted by the following vote of the Agency:
AYES: DIRECTORS: HARDISON.STNAFORD,MADIRD
NOES: DIRECTORS: ROCHA
ABSTAIN: DIRECTORS: CHAGNON
Chairwoman Madrid offered a Resolution entitled:
09/15/03 PAGE TWO ,
'�J
Res 03-R33
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA 5 year
APPROVING AND ADOPTING AN AMENDMENT OT THE FIVE-YEAR IMPLEMENTATION implementation
PLAN FOR THE MERGED PROJECT AREA. plan
Moved by Director Hardison, seconded by Chairman Rocha to waive further reading
and adopt. Resolution passed and adopted by the following vote of the Agency:
AYES: DIRECTORS: HARDISON,STNAFORD, ROCHA,MADIRD
NOES: DIRECTORS: NONE
ABSTAIN: DIRECTORS: CHAGNON
Mayor Madrid offered a resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA FINDING THAT THE Res 03-C71
USE OF TAXES ALLOCATED FORM THE MERGED PROJECT AREA, FOR THE PURPOSE Taxes allocated
OF IMPROVING, INCREAING AND PRESERVING THE COMMUNITY'S SUPPLY OF LOW from Merged
AND MODERATE INCOME HOUSING OUTSIDE THE MERGED PROJECT AREAWILL BE Project
OF BENEFIT TO THE MERGED PROJECT ATEA.
Moved by Mayor Pro-tem Rocha, seconded by Councilmember Stanford to waive
further reading and adopt. Resolution passed and adopted by the following vote of the
Council:
AYES: COUNCILMEMBERS: HARDISON, STNAFORD, ROCHA, MADIRD
NOES: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: CHAGNON
Mayor Madrid offered a resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA Res 03-C72
CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE certify
PROPOSED AMENDMENTS TO THE REDEVELOPMENT PLANS FOR MERGED CENTRAL environmental
BUSINESS DISTRICT AND WEST END REDEVELOPMENT PROJECTS AND ADOPTING report
ENVIRONMENTAL FINDINGS PURSUANT TO THE CALIFORNIA ENVIRIOMENTAL p
QUALITY ACT, AND A STATEMENT OF OVERRIDING CONSIDERATIONS, AND
MITIGATION MONITORING PROGRAM.
Moved by Councilmember Hardison,seconded by Councilmember Stanford to waive
further reading and adopt. Resolution passed and adopted by the following vote of the
Council:
AYES: COUNCILMEMBERS: HARDISON, STNAFORD, ROCHA,MADIRD
NOES: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: CHAGNON
Mayor Madrid offered a resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA OVERRULING Res 03-C73
WRITTEN AND ORAL OBJECTIONS AND ADOPTING WRITTEN FINDINGS IN RESPONSE overruling
TO WRITTEN OBJECTIONS RECEIVED FROM AFFECTED PROPERTY OWNERS AND objections
TAXING ENTITIES AND OVERRULING SUCH WRITTEN OBJECTIONS TO THE EIGHTH
AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE CENTRAL BUSINESS
DISTRICT REDEVELOPMENT PROJECT AND THE THIRD AMENDMENT TO THE
REDEVELOPMENT PLAN FOR THE WEST END REDEVELOPMENT PROJECT AREA.
Moved by Councilmember Hardison, seconded by Mayor Pro-tem Rocha to waive
further reading and adopt. Resolution passed and adopted by the following vote of the
Council:
i
AYES: COUNCILMEMBERS: HARDISON,STNAFORD, ROCHA, MADIRD
NOES: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: CHAGNON
Mayor Madrid offered an Ordinance entitled:
"' 09/15/03 PAGE THREE
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING AND Ord introducedbL
ADOPTING THE EIGHTH AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE 8'amend plan
ECENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT AREA AND THE THIRD
AMENDMENT TO THE REDEVELOPMENT PLAN FORTHE WEST END REDEVELOPMENT Central Buss
PROJECT AREA. District
Moved by Counciimember Hardison,seconded by Councilmember Stanfrod and carried
by roll call vote to waive further reading and introduce the Ordinance. Mayor Pro-tem
Rocha voting no and Councilmember Chagnon abstained. -
Councilmember Chagnon, returned to the dais.
THE REDEVELOPMENT AGENCY RECESSED AND THE CITY COUNCIL CONTINUED AT CRA recess
9:27 P.M.
THE CITY COUNCIL RECESSED ANG REDEVELOPMENT AGENCY CONVENED AT 9:43
P.M.
The CONSENT CALENDAR consisting of items VII-A through VII-C,were approved by Consent Cal.
motion of Director Chagnon,seconded by Director Hardison and unanimously carried. Approved
A. Minutes of the regular meetings of September 2,2003;Adjourned Regular Meeting Min approved
of June 30,2003 and Special Meeting of May 12,2003;were approved as written.
B. Agency Treasurer's Report as of August 31, 2003, was received and filed: Treasurer Rprt
C. The following Resolutions were adopted and entitled: apvd
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA Res. Nos.03-1134
ALLOWING CERTAIN CLAIMS AND DEMANDS TO BE PAID OUT OF 8,35 Warrants
REDEVELOPMENT AGENCY FUNDS.
i
It was consensus of the Redevelopment Agency Boardmembers to adjourn I Adjourn
TIME OF ADJOURNMENT: 9:45 P.M.
SECRETARY
NEXT RESOLUTION NO.03-R36.
NEXT ORDINANCE NO. 03-RO1.
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09/15/03 PAGE FOUR
CP ......_
'�9tiroaT``�
CONSENT ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE BOARD OF DIRECTORS OF
THE REDEVELOPMENT AGENCY OF THE CITY OFyA,ZZUSA
FROM: URIEL MACIAS, CITY TREASURER C -�
DATE: OCTOBER 6, 2003
SUBJECT: INVESTMENT POLICY FOR THE CITY OF AZUSA, REDEVELOPMENT AGENCY
RECOMMENDATION
The City Treasurer recommends that the Board Members approve the attached resolution re-
adopting the Investment Policy for the City of Azusa, Redevelopment Agency.
BACKGROUND
State law requires that the Investment Policy for each city be re-adopted every year with changes
that may be necessary or desirable. The Board Members last adopted the policy on September
16, 2002.
FISCAL IMPACT
None
a
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Redevelopment Agency, City of Azusa
Investment Policy
1. POLICY STATEMENT
All funds of the City of Azusa Redevelopment Agency shall be invested in accordance
with principles of sound treasury management and in accordance with the provisions of
the California Government Code Sections 53600 et seq., (the Municipal Code), and
guidelines established by the California Municipal Treasurer's Association, the California
Society of Municipal Finance Officers, and this Investment Policy ("Policy"). These
funds are defined and detailed in the City's Comprehensive Annual Financial Report
(CAFR) and includes any new funds created unless specifically excluded by the City
Council.
Specifically excluded funds are:
Funds deposited with the State Public Employees' Retirement System and;
Bond proceeds that are subject to covenants and restrictions as defined in the
Bond's indenture or are administered under the direct control of the Bond Trustee.
2. INVESTMENT POLICY OBJECTIVES
A. Overall Risk Profile
The objectives of the City of Azusa's Redevelopment Agency Investment Program are, in
order of priority:
1. Safety of principal of invested funds;
2. Maintenance of sufficient liquidity to meet cash flow needs; and
3. Attainment of the maximum yield possible consistent with the first two
objectives.
To achieve these objectives, The Agency shall consider the following when making an
investment:
1. Safety of Principal of Invested Funds
The Agency shall mitigate the risk to :the principal of invested funds by
limiting credit and interest rate risks. Credit Risk is the risk of loss due to the
failure of a security's issuer or backer. Interest Rate Risk is the risk that the
market value of the Agency's portfolio will fall due to an increase in general
interest rates.
a) Credit risk will be mitigated by:
Investment Policy—Con't
(i) Limiting investments to the safest types of securities;
(ii) By pre-qualifying the financial institutions with which it will do
business; and
(iii) By diversifying the investment portfolio so that the potential
failure of any one issue or backer will not place an undue financial
burden on the Agency.
b) Interest rate risk will be mitigated by:
(i) Structuring the Agency's portfolio so that securities mature to meet
the City's cash requirements for ongoing obligations, thereby
avoiding the possible need to sell securities on the open market at a
loss prior to their maturity to meet those requirements; and
(ii) Investing primarily in shorter term securities.
2. Liquidity
The Agency's investment portfolio shall be structured in a manner which
emphasizes that securities mature at the same time the cash is needed to
meet anticipated demands (Static Liquidity). Additionally, since all
possible cash demands cannot be anticipated, the portfolio should consist
of securities with active secondary markets (Dynamic Liquidity). The
maximum percentage of different investment instruments and maturities is
described in Section II of this Policy.
3. Yield
Yield on the Agency's investment portfolio is of secondary importance
compared to the safety and liquidity objectives described above.
Investments are limited to relatively low risk securities in anticipation of
earning a fair return relative to the risk being assumed. While it may
occasionally be necessary or strategically prudent for the City to sell a
security prior to maturity to either meet unanticipated cash needs or to
restructure the portfolio, this policy specifically prohibits trading securities
for the sole purpose of speculating on the future direction of interest rates.
B. Basic Investment strategy
The Agency's investment portfolio shall be structured to provide that sufficient funds
from investments are available each month to meet the City's anticipated cash needs.
Subject to the objectives stated above, the choice in investment instruments and
maturities shall be based upon an analysis of future anticipated cash needs, existing and
anticipated revenues, interest rate trends and specific market opportunities. No
investment may have a maturity of more than five (5) years from its date of purchase
2
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Investment Policy—Con't
without receiving prior Board of Directors approval. After approval by Board of
Directors, reserve funds associated with bond issues may have a maturity of more than
five (5) years, up to the earliest date the bonds may be redeemed or mature.
3. INVESTMENTS
This section of the Investment Policy identifies the types of investments in which the
Agency will invest its idle or surplus funds.
A. Standard of Prudence
The Agency operates its investment portfolio;under the Prudent Investor Standard
(California Government Code Section 53600.3) which states, in essence, that
"when investing, reinvesting, purchasing, acquiring, exchanging, selling or
managing public funds, a trustee shall act with care, skill, prudence and diligence
under the circumstances then prevailing, including, but not limited to, the general
economic conditions and the anticipated need of the City, that a prudent person in
a like capacity and familiarity with those matters would use in the conduct of
funds of a like character and with like aims, to safeguard the principal and
maintain the liquidity needs of the Agency".
This standard shall be applied in the context of managing the overall portfolio.
Investment officers, acting in accordance with written procedures and this
investment policy and exercising the above standard of diligence shall be relieved
of personal responsibility for an individual security's credit risk or market price
changes, provided deviations from expectations are reported in a timely fashion
and appropriate action is taken to control adverse developments.
B. Eligible Securities
The Agency is provided a broad spectrum ofj eligible investments under California
Government Code Section 53600 et seq. The City may choose to restrict its
permitted investments to a smaller list of securities that more closely fits the
Agency's cash flow needs and requirements for liquidity. If a type of investment
is added to California State Code 53600,1 it will not be added to the City's
Authorized Investment List until this policy is amended and approved by the
Board of Directors. If a type of investment permitted by the Agency should be
removed from California State Code 53600, it will be deemed concurrently
removed from the Agency's Authorized Investment List.
The Agency's Authorized Investment List'
• Insured Certificates of Deposit (CD's) of California banks
and/or savings and loan associations, and/or savings banks
which mature in five years or less, provided that the City's
investments shall not exceed One Hundred Thousand
($100,000) per institution. If the investment exceeds the
3
.S Investment Policy—Con't -
insured $100,000, the funds are to be collateralized at 110% of
the deposit in government securities or 150% in mortgages.
• Local Agency Investment Fund(State Pool)Demand Deposits.
• Securities of the U.S. Government, and securities of which the
principal and interest is guaranteed by the full faith and credit
of the U.S. Government.
• Securities issued by agencies and instrumentalities of the U.S.
Government or issued by a government sponsored enterprise.
• Commercial Paper (limited to 30% of the portfolio) rated
Al/P1 or the equivalent by 2 nationally recognized rating
agencies with maturities not to exceed 181 days.
• Medium —Term Corporate Notes (limited to 20% of the
portfolio) that are rated "AA" or better by two nationally
recognized rating agencies.
• Passbook Savings or Money Market Demand Deposits, subject
to the restrictions and limitations set forth in Government Code
Section 53638.
• Repurchase Agreements (limited to 30% of the portfolio) with
approved banks and broker-dealers who have completed and
signed a Master Repurchase Agreement with the City.
• Money Market Mutual Funds (with a stated objective of
maintaining a $1 net asset value) that has been rated AAAm by
Moody's or any two nationally recognized rating agencies.
Please see Exhibit A for a more detailed description of the
authorized investments listed above.
A thorough investigation of any pool or fund is required prior to investing and on
a continual basis. The investigation will, at a minimum, obtain the following
information:
A description of eligible investment securities, and a written
statement of investment policies and objectives.
A description of interest calculations and how it is distributed, and
how gains and losses are distributed.
A description of how securities are safeguarded (including the
settlement process) and how often the securities are marked to
market and how often an audit is conducted.
4
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Investment Poli —Con't
a,
A description of who may invest in the program, how often, what
size deposits and withdrawals are permitted.
A schedule for receiving statements and portfolio listings.
Does the pool/fund maintain A reserve or retain earnings or is all
income after expenses distributed to participants?
A fee schedule which also ;discloses when and how fees are
assessed.
Is the pool or fund eligible for bond proceeds and/or will it accept
such proceeds?
i
The purpose of this investigation is to determine the suitability of a pool or fund
and evaluate the risk of placing funds with that pool or fund.
One of the purposes of this Investment Policy is to define what investments
are permitted. If a type of security is not specifically authorized by this
policy, it is not a permitted investment.
C. Qualification of Brokers Dealers and Financial Institutions
The City Treasurer or their designees will ;establish and maintain a list of the
financial institutions and broker/dealers authorized to provide investment and
depository services to the City, will perform an annual review of the financial
condition and registrations of the qualified,bidders, and require annual audited
financial statements to be on file for each' approved company. The City shall
annually send a copy of the their current Investment Policy to all financial
institutions and broker/dealers approved to do business with the City. Receipt of
the Policy and Enabling Resolution, inchiding confirmation that it has been
received and reviewed by the person(s) handling the City's account, shall be
acknowledged in writing within thirty(30) days.
All broker-dealers and financial institutions that desire to become qualified
bidders for investment transactions must submit a "Broker-Dealer Application"
and related documents relative to eligibility. This includes a current audited
financial statement, proof of state registration, proof of NASD registration and a
certification they have received and reviewed the City's Investment Policy and
agree to comply with the provisions outlined in the Investment Policy. The City
Treasurer or their designees may establish any additional criteria they deem
appropriate to evaluate and approve any financial services provider. The selection
process for broker-dealers shall be open to both "primary dealers" and
"secondary/regional dealers" that qualify under Securities and Exchange
Commission Rule 15c3-1 (Uniform Net Capital Rule). The provider must have an
office in California and the provider's representative must be experienced in
institutional trading practices and familiar ith the California Government Code
as it relates to investments by a City.
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Investment Policy—Con't
v
D. Collateralization Requirements
Uninsured Time Deposits with banks and savings and loans shall be collateralized
in the manner prescribed by state law for depositories accepting municipal
investment funds.
Repurchase Agreements shall be collateralized in accordance with terms specified
in the Master Repurchase Agreement. The valuation of collateral securing a
Repurchase Agreement will be verified weekly to ensure a minimum of 102% of
the value of the transaction is held by the Agency's depository agent.
E. Diversification
The Agency will diversify its investments by security type and investment. With
the exception of bond reserve funds, bond escrow funds, and any other specific
funds approved by the Investment Committee or the Board of Directors, the City
Treasurer or their designee and the City's Investment Committee will adopt a
strategy that combines current market conditions with the City's cash needs to
maintain the maximum degree of safety of principal and liquidity throughout
market and budgetary cycles. This strategy will include diversification by
investment type and maturity allocations and will be included in the regular
quarterly reports to Council. This strategy will be reviewed quarterly and can be
changed accordingly.
F. Confirmations
Receipts for confirmation of purchases or sales of authorized securities shall
include at a minimum the following information: trade date, settlement date,
description of the security, par value, interest rate, price, yield to maturity,
Agency's name,net amount due and third party custodial information.
G. GASB 3
The Governmental Accounting Standards Board (GASB) issued GASB #3 in
April 1986, and the local entity's investments must be categorized into one of
three levels of credit risk as follows:
a) Securities that are insured or registered, or for which the securities are
held by public units or its agent in the units;
b) Securities that are uninsured and unregistered and are held by the broker
or dealer or by its trust department or agent in the unit's name;
C) Securities that are uninsured and unregistered and are held by the broker
or dealer or by its trust department or agent,but not in the unit's name.
The carrying amount and market value of all types of investments must be
disclosed in total and for each type of investment. Government Accounting
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Investment Poli —Con't
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Standards Board #3 exempts mutual funds and LAW investments from the
mandatory risk categorization.
4. SAFEKEEPING OF SECURITIES
A. Safekeeping Agreement
The Agency shall contract with a bank or banks for the safekeeping of securities
that are owned by the Agency as a part of its investment portfolio or transferred to
the City under the terms of a Repurchase Agreement.
All securities owned by the Agency shall beheld in safekeeping by a third party
bank trust department acting as agent for the Agency under the terms of a custody
agreement executed by the bank and the Agency. All securities will be received
and delivered using standard delivery versus payment (DVP) procedures.
The third party bank trustee agreement must comply with Section 53608 of the
California Government Code. No outside .broker/dealer or advisor may have
access to Agency funds, accounts or investments and any transfer of funds must
be approved by the Agency Treasurer.
B. Security Transfers
The authorization to release the Agency's securities or funds will be telephoned to
the appropriate bank representative by a finance department member other than
the person who initiated the transaction. A written confirmation outlining details
for the transaction and confirming the telephoned instructions will be sent to the
bank within five(5) working days.
C. Verification of Securities
Securities transferred to the Agency as collateral securing time deposits or
repurchase agreements which are being held in safekeeping on behalf of the
Agency will be verified in writing and examined on a surprise basis during the
year by the Agency's independent auditors as a part of the Agency's annual
independent audit process.
5. STRUCTURE AND RESPONSIBILITIES
This section of the policy defines the overall structure and areas of responsibility within
the investment management program.
A. Responsibilities of the Agency Treasurer
The Agency Treasurer is charged with responsibility for maintaining custody of
all public funds and securities belonging to; or under the control of the Agency,
and for the deposit and investment of those funds in accordance with principles of
sound treasury management applicable laws, ordinances and this Investment
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Investment Policy—Con't -
Policy. This includes establishing written procedures for the operation of the
investment program consistent with this policy. The procedures should include
reference to safekeeping, master repurchase agreements, wire transfer agreements,
banking services contracts and depository agreements. Such procedures shall also
include explicit delegation of authority to persons responsible for investment
transactions. No person may engage in an investment transaction except as
provided under the terms of this policy and the procedures established by the
Treasurer and approved by the Investment Committee. Investment decisions that
involve borrowing in the amount of $100,000 or more must be included as a
separate discussion item on the Board of Director's agenda. Such items can no
longer be included on the Board of Director's consent calendar. (California
Government Code 53635.7)
B. Responsibilities of the Director of Finance
The Director of Finance is responsible for keeping the Agency fully advised as to
the financial condition of the Agency.
C. Responsibilities of the Board of Directors
The Board of Directors shall consider and adopt a written Investment Policy. As
provided in that policy, the Board shall receive, review and accept monthly
investment reports.
D. Responsibilities of the Investment Committee
There shall be an Investment Committee consisting of the Director of Finance, the
City Manager, the Agency Treasurer and their designees. The Committee shall
meet quarterly to discuss cash flow requirements, the monthly investment reports,
investment strategies, investment and banking procedures and significant
investment related work projects being undertaken in each department that will
affect the cash flow management of the City Treasurer. This will require timely
reports from the department heads to the Agency Treasurer concerning significant
future cash flow requirements. The Committee's meetings will be summarized in
minutes that are distributed to the Board of Directors. The Investment Committee,
with the approval of the Board, may retain an external investment manager on
behalf of the Agency. The investment manager will be required to act in
accordance with this investment policy.
E. Ethics and Conflicts of Interest
All City officers and employees involved in the investment process shall refrain
from personal business activity that could conflict with the proper execution of
the investment program, or that could impair their ability to make impartial
investment decisions. Those employees and investment officials shall disclose to
the appropriate City executive (City Manager, City Attorney, or the Director of
Finance) any material financial interests in financial institutions that conduct
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Investment Poli —Con't
e
business within the City, and they shall further disclose any large personal
financial/investment positions that could be related to the performance of the
City's investments.
6. REPORTING
The Agency Treasurer shall prepare a monthly investment report, including a succinct
management summary that provides a clear picture of the status of the current investment
portfolio and transactions made over the past month.!This management summary shall be
prepared in a manner that will allow the Director of Finance and the Board to ascertain
whether investment activities during the reporting period have deviated from the
Agency's Investment Policy.
The monthly report shall include the following:
A. A list of individual securities held at the end of the reporting month.
B. Unrealized gains or losses resulting from amortization or accretion of
principal versus market value change's by listing the cost and market value
of securities owned by the City.
C. A description of the current investment strategy and the assumptions upon
which it is based.
D. Dollar weighted yield to maturity of the City's investments.
E. Maturity schedule by type, of each of the City's investments.
F. Statement of compliance of the City's Investment Policy with California
Government Code Section 53601 et seq.
G. Statement as to ability to meet all scheduled expenditure requirements for
the next six months.
H. Market value,book value,par value and cost basis of all investments.
I. Investments "under the management of contracted parties, including
lending programs" (i.e. investments held by deferred compensation
administrators).
7. PERFORMANCE STANDARDS
The investment portfolio will be managed in accordance with the standards established
within this Investment Policy and should obtain a market rate of return throughout
budgetary and economic cycles. The Investment Committee will establish and
periodically review the Agency's portfolio benchmarks and performance. A benchmark
9
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Investment Policy—Con't
will be selected that compares with the portfolio composition, structure and investment
strategy at that time.
8. REVIEW OF INVESTMENT POLICY
A. Policy Review
This Investment Policy shall be reviewed annually by the Board in accordance
with State law to ensure its consistency with respect to the overall objectives of
safety, liquidity and yield. Proposed amendments to the policy shall be prepared
by the Treasurer and reviewed by the Investment Committee and City Attorney
and then be forwarded to the Board for consideration. The Investment Committee
shall annually review the Investment Policy and any proposed amendments and
forward to the City Council for its consideration and adoption at a public meeting.
B. Internal Control and Review
The external auditors shall annually review the investments and general activities
associated with the investment program to ensure compliance with this
Investment Policy. This review will provide internal control by assuring
compliance with policies and procedures for the activities that are selected for
testing.
9. ADOPTION OF POLICY
This Policy was duly adopted by the City Council of the City of Azusa on
October 6, 2003.
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Investment Poli -Con't
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EXHIBIT A
DESCRIPTION OF INVESTMENTS
The City of Azusa's investments may be placed in those securities as outlined below; the
allocation between the various investment instruments may change in order to give the
City the best combination of safety, liquidity and higher yield. Surplus funds of local
agencies may only be invested in certain eligible securities. The City limits its
investments to allowable securities under the State of California statutes (Government
Code Section 53601, et seq., Section 53356, et seq:, and Section 53595, et seq.) and is
further limited to those listed below.
Certificates of Deposit
Certificates of deposit allow the City to select the exact amount and day of maturity as
well as the exact depository. Certificates of deposit;are issued in any amount for periods
of time as short as fourteen days and as long as several years. At any given time,the City
may have certificates of deposit in numerous financial institutions in the future.
The Treasurer may at his discretion waive security for that portion of a deposit, which is
insured pursuant to federal law. Currently, the first $100,000 of a deposit is federally
insured by FSLIC or FDIC. It may be to the City's advantage to waive this collateral
requirement for the first $100,000 because the City:may receive a higher interest rate. If
funds are to be collateralized, the collateral will be 110% of the deposit in government
securities or mortgages of 150%. At purchase, institutions must not show an operating
loss. Banks must have an equity to asset ratio of at least 6%. Savings and loan
associations and savings banks must have an equity'to asset ratio of at least 3%.
Local AEency Investment Pond
The Local Agency Investment Fund (LAIF) of;the State of California offers high
liquidity because deposits can be wired to the City; checking account within twenty-four
hours. Interest is computed on a daily basis.
This is a special fund in the State Treasury, which local agencies may use to deposit
funds for investment. There is no minimum investment period and the minimum
transaction is $5,000 in multiples of$1,000 above that, with a maximum of$40,000,000
for any City. It offers high liquidity because deposits can be converted to cash within
twenty-four hours and no interest is lost. All interest is distributed to those agencies
participating on a proportionate share determined by the amounts deposited and the
length of time they are deposited. Interest is paid quarterly by adding it to the principal.
The State charges participants a small fee to cover reasonable costs associated with
operating the investment pool,not to exceed one-quarter of one percent of the earnings.
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Investment Policy—Con't
The interest rates received are fairly stable because of the pooling of the State's surplus
cash with the surplus cash deposited by local governments. This creates a well-
diversified multi-billion dollar money pool.
U.S. Treasury Securities
U.S. Treasury securities are highly liquid and considered the safest of all investments
because they are back by the full faith and credit of the United States Government.
U.S. Treasury Bills are direct obligations of the United States Government.
They are issued weekly with maturity dates up to six months. They are issued and
traded on a discount basis and the interest is figured on a 360-day basis using the
actual number of days to maturity. They are issued in the minimum amount of
$10,000 and in multiples of$5,000 thereafter.
U.S. Treasury Notes are direct obligations of the United States Government.
They are issued throughout the year with maturities from 2 up to 30 years. Notes
are coupon securities paying a fixed amount every six months. The City will not
invest in notes having maturities longer then five years.
Federal Agency Securities
Federal Agency securities are highly liquid and considered to be virtually without credit
risk. Federal Agency issues are guaranteed indirectly by the United States Government.
All Agency obligations that are fixed-rate and meet the maturity restrictions of the State
Code and this policy qualify as legal investments and are acceptable as security for public
deposits. They usually provide higher yields than regular Treasury issues with all of the
same advantages. Examples are:
FNMA's (Federal National Mortgage Association) are used to assist the home
mortgage market by purchasing mortgages insured by the Federal Housing
Administration and the Farmers Home Administration, as well as those
guaranteed by the Veterans Administration.
FHLB's (Federal Home Loan Bank Notes and Bonds) are issued by the Federal
Home Loan Bank System to help finance the housing industry. The notes and
bonds provide liquidity and home mortgage credit to savings and loan
associations, mutual savings banks, cooperative banks, insurance companies and
mortgage-lending institutions.
Other Federal Agency issues are Federal Home Loan Mortgage Corporation
(FHLMC), Federal Farm Credit Bank (FFCB), Small Business
Administration Notes (SBA's), Government National Mortgage Association
(GNMA's), Tennessee Valley Authority (TVA's) and the Student Loan
Marketing Association (SLMA's).
Negotiable Certificate of Deposit
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Investment Poli —Con't
Negotiable certificates of deposit are high-grade instruments,paying a higher interest rate
than regular certificates of deposit. They are liquid because they can be traded in the
secondary market.
Negotiable Certificates of Deposit (NCD's) are unsecured obligations of the issuing
financial institution,bank or savings and loan, bought at face value with a promise to pay
face value plus accrued interest at maturity. The primary market issuance is in multiples
of $1 million. The secondary market usually trades in denominations of $500,000,
although smaller denominations are occasionally available. Local agencies may not
invest more than 30% of their surplus money in negotiable certificates of deposit. NCD's
will only be placed with the largest and most financially sound institutions.
Commercial Paper
Commercial paper allows the investment of large;amounts of money on a short-term
basis at rates higher than passbook savings accounts. Commercial paper is a short-term
unsecured promissory note issued by a corporati6n to raise working capital. These
negotiable instruments are purchased at a discount to par value. As an example,
corporations such as American Express, International Business Machines (IBM) and
General Electric issue commercial paper.
Local agencies are permitted by state law to invest in commercial paper of "prime"
quality of the highest ranking or of the highest lettei and numerical rating as provided by
Moody's Investor's Service, Inc. or Standard and Poor's Corporation (A1/pl or A1+/p]).
Purchases of eligible commercial paper may not exceed 180 days maturity nor exceed
30%of the City's surplus funds.
Medium-Term Corporate Notes
A City may invest in medium term corporate notes with a maximum maturity of five
years issued by a corporation organized and operating within the United States, a
depository institution licensed by the United States government or any state government
and operating within the United States. The California State Code (53601 et seq.)permits
cities to invest in corporations with a rating category of"A" or better, but the City will
limit its investments in corporate medium term notes to those issued by corporations that
have been rated"AA" or its equivalent by two nationally recognized ratings agencies.
Passbook Savings or Money Market Account
Passbook savings account allows us to transfer money from checking to savings and earn
interest on smaller amounts of money, which ;are not available for a longer-term
investment
The passbook savings account is similar to a CD, except not for a fixed term. The
interest rate is much lower than CD's,but the savings account provides daily liquidity and
funds can be deposited and withdrawn according to our daily needs.
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Investment Poli —Con't
Mutual Funds
Mutual funds allow the City to maintain liquidity and receive money market rates.
Mutual Funds are referred to in the Government Code, Section 53601.L, as "shares of
beneficial interests issued by diversified management companies". The Mutual Fund
must be restricted by its prospectus to be a "Money market" mutual find and be limited
to the same approved investments as LAIR These investments include U.S. Treasury and
Agency issues, Bankers Acceptances, Commercial Paper, Repurchase Agreements,
Certificates of Deposit, and Negotiable Certificates of Deposit. The quality rating and
percentage restrictions in each investment category applicable to LAIF also apply to any
Mutual Fund.
One of the stated objectives of the Mutual Fund must be to attempt to maintain a $1.00
Net Asset Value (NAV). A further restriction is that the purchase price of shares of any
mutual fund shall not include any sales commission. Investments in mutual funds shall
not exceed 15% of the City's surplus money.
Repurchase Agreements
Repurchase agreements are purchases of securities by the City under an agreement with a
term of one (1) year or less whereby the seller will "repurchase" the same securities on or
before a specified date or on demand of either parry and for a specified amount. The
underlying securities must be delivered to the City's custodial account by book entry,
physical delivery or a third-party custodial agreement.
14
RESOLUTION NO
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF THE CITY OF AZUSA ADOPTING THE
INVESTMENT POLICY
WHEREAS the Redevelopment Agency of the City of Azusa receives taxes
and other revenues from a variety of sources and Iuses the funds to pay its bills on a
regular basis; and
WHEREAS the Agency Treasurer is charged with the duties of handling and
maintaining the cash that is taken in or otherwise,received by the Agency; and
WHEREAS the balance of these funds;fluctuates between $3,000,000 and
$20,000,000 or more; and
WHEREAS the Agency Treasurer is charged with the responsibility of
investing idle public funds, doing so on the basis of protecting the safety of the funds,
ensuring the liquidity of the investments, and maximizing earnings in that order of
importance and based on the "Prudent Investor Standards'; and
WHEREAS the State of California requires each City Redevelopment
Agency to adopt an investment policy for its jurisdiction.
NOW THEREFORE BE IT RESOLVED that the Board of Directors of the
Redevelopment Agency of the City of Azusa does hereby adopt its Investment Policy
attached hereto marked Exhibit A and instructs the Agency Treasurer to be guided by
it in carrying out the duties of his office for the benefit of the Redevelopment Agency.
ADOPTED AND APPROVED this 6".day of October, 2003
CHAIRMAN
1 HEREBY CERTIFY that the foregoing resolution was duly adopted by the
Board of Directors of the Redevelopment Agency of the City of Azusa at a regular
meeting thereof on the 6"' day of October, 2003 by the following vote of Directors:
AYES: BOARD DIRECTORS:
NOES: BOARD DIRECTORS:
ABSENT: BOARD DIRECTORS:
• 'OF�G
AGENCY CONSENT ITEM
TO: THE HONORABLE CHAIRPERSON AND MEMBERS OF THE BOARD
FROM: MICHAEL HENNESSEY, ECONOMIC DEVELOPMENT/REDEVELOPMENT DIRECTOR
VIA: RICK COLE, CITY MANAGER k r
DATE: OCTOBER 6, 2003
SUBJECT: BUDGET AMENDMENT-EDUCATION REVENUE AUGMENTATION FUND (ERAF) SHIFT
RECOMMENDATION
It Is recommended that the Agency Board approve 1) the additional appropriation of$98,210 from
CBD and West End (the Merged Project) from available debt service reserves; 2) the appropriation of
$3,040 from Ranch Center: and 3) the decrease of the Light and Water debt service payment
appropriation in the Ranch Center Project by $3,040, in order to fund the additional $101,250
required for the state-mandated ERAF shift.
BACKGROUND
Due to California state budget constraints, the state legislature has approved backfilling the
state budget deficit by imposing "shifts" of $135 million from redevelopment agencies
statewide to ERAF funds. For the City of Azusa Redevelopment Agency, this translates to a
shift of $232,250 for FY 2003/04, or about 6% of net tax increment receipts. These funds
will be proportionately shifted from each project area-$81 ,450 from Central Business
District, $147,760 from West End, and $3,040 from Ranch Center (see attached). This
amount will be withheld by L.A. County from the Agency's property tax increment receipts.
Last year, $127,940 was shifted from the Agency's tax increment revenues. Based on this
amount, only $131,000 was budgeted for FY 2003/04. As a result, an additional $101,250
needs to be budgeted.
FISCAL IMPACT
The additional appropriation of$98,210 from CBD and West End (the Merged Project) will be funded
from the available debt service fund reserves for the Merged Project. In order to fund the $3,040
from Ranch Center, however, some other appropriation must be decreased. Since there Is no
available debt service fund reserves for this project, staff is recommending decreasing its FY 2003/04_
debt service payment to Light and Water by this amount. This is a subordinate debt, and per the
loan terms, Is paid with any available tax Increment revenues after all other debt is paid.
PREPARED BY ROSEANNA J.JARA
MH:RJjks
AGENCY CONSENT ITEM
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE BOARD
FROM: URIEL E. MACIPS, REDEVELOPMENT AGENCY TREASURER
MICHAEL HENNESSEY, ECONOMIC DEVELOPMENT/REDEVELOPMENT DIRECTOR
DATE: OCTOBER 6, 2003
SUBJECT: SELECTION OF FINANCIAL ADVISOR FOR REFINANCING THE CITY OF AZUSA
REDEVELOPMENT AGENCY 1994 TAX ALLOCATION BONDS
RECOMMENDATION
It is recommended that the Board Members authorize initiation of refunding the Agency's 1994 Tax
Allocation Bonds; waive the formal Request for Qualification process and approve the professional
services agreement with C.M. de Crinis &Co., Inc., to provide financial advisory services for the bond
refunding.
BACKGROUND
In 1994, the Agency issued the $12,325,000 Redevelopment Agency of the City of Azusa Merged
Project Area Tax Allocation Bonds, 1994 Series A, at a bond yield of 6.728%. Due to the IRS limitation
placed on the number of advance refundings allowed, the Agency was not able to take advantage of
reduced interest rates. Effective August 1, 2003, this decision was reversed, and these bonds can
now be refinanced with substantial savings realized.
To initiate the refunding process, staff has formed a working committee comprised of the City
Treasurer, Interim Finance Director, Economic Development/Redevelopment Director, and Sr.
Accountant-Redevelopment. The committee has received a proposal from C.M. de Crinis &Co., Inc.,
to provide financial advisory services. This company was previously used in the issuance of the recent
utility bonds, and selected after careful evaluation of several proposals. They were successful in
making that issuance fiscally sound, timely, and thorough, and are already familiar with the City's
financial position. They are also one of the top ten financial advisors in municipal bond issuance.
They were approved by City Council for the utility bond issuance in March 2003, and staff desires to
utilize their services again for this refunding.
The scope of services provided by the Financial Advisor will include assessing the financing options
and impacts, financing structure, rating and bond insurance requirements and costs, a proposed bond
marketing and underwriting plan, reasonableness of the proposed bond pricing and underwriting fees,
and overall representation of, and advice to the Redevelopment Agency. The complete financing
structure and option plan will be presented to the Agency Board at a later date.
FISCAL IMPACT
The fee for the financial advisory services is not-to-exceed $47,250, including out-of-pocket
expenses. The cost will be reimbursed directly from the bond proceeds.
Prepared by: Roseanna J.Jara,Sr.Acct.-Redevelopment
66
AZUSA REDEVELOPMENT AGENCY
PROFESSIONAL SERVICES,AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 6th.day of October, 2003, by and between
the Azusa Redevelopment Agency, a municipal organization organized under the laws of the
State of California with its principal place of business at'.213 East Foothill Boulevard, Azusa,
California 91702-1395 ("Agency") and C.M. de Crinis & Co., Inc., a professional corporation
with its principal place of business at 11846 Ventura Blvd. Ste. 102, Studio City, CA 91604-
2620 ("Consultant"). Agency and Consultant are sometimes individually referred to as"Party"
and collectively as "Parties."
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain
professional services required by the Agency on the terms and conditions set forth in this
Agreement. Consultant represents that it is experienced yin providing financial advisory services
to public clients, has all requiste licenses in the State of California, and is familiar with the plans
of Agency.
2.2 Project.
Agency desires to engage Consultant to render such services for the refinancing of the
Agency's 1994 Tax Allocation Bond issue and/or other bond issues ("Projects") as set forth in
this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Consultant promises and agrees to furnish to
the Agency all labor, materials, tools, equipment, services, and incidental and customary work
necessary to fully and adequately supply the professional financial advisory consulting services
necessary for the Project ("Services"). The Services are more particularly described in Exhibit
"A" attached hereto and incorporated herein by reference. All Services shall be subject to, and
performed in accordance with this Agreement, the exhibits attached hereto and incorporated
herein by reference, and all applicable local, state and federal laws, rules and regulations.
3.1.2 Term. The tern of this Agreement shall be from October 7th 2003 to
December 31, 2004, unless earlier terminated as provided herein, or extended by Agency Board
approval. Consultant shall complete the Services within the term of this Agreement, and shall
meet any other established schedules and deadlines.
3.2 Responsibilities of Consultant.
3.2.1 Control and Payment of Subordinates Independent Contractor. The
Services shall be performed by Consultant or under its supervision. Consultant will determine
the means,methods and details of performing the Services subject to the requirements of this
Agreement. Agency retains Consultant on an independent contractor basis and not as an
employee. Consultant retains the right to perform similar or different services for others during
the term of this Agreement. Any additional personnel performing the Services under this
Agreement on behalf of Consultant shall also not be employees of Agency and shall at all times
be under Consultant's exclusive direction and control. Consultant shall pay all wages, salaries,
and other amounts due such personnel in connection with their performance of Services under
this Agreement and as required by law. Consultant shall be responsible for all reports and
obligations respecting such additional personnel, including,but not limited to: social security
taxes,income tax withholding, unemployment insurance, disability insurance, and workers'
compensation insurance.
3.2.2 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Schedule of
Services set forth in Exhibit "B" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to perform the
Services in conformance with such conditions. In order to facilitate Consultant's conformance
with the Schedule, Agency shall respond to Consultant's submittals in a timely manner. Upon
request of Agency, Consultant shall provide a more detailed schedule of anticipated performance
to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of Agency.
3.2.4 Substitution of Key Personnel. Consultant has represented to Agency that
certain key personnel will perform and coordinate the Services under this Agreement. Should
one or more of such personnel become unavailable, Consultant may substitute other personnel of
at least equal competence upon written approval of Agency. In the event that Agency and
Consultant cannot agree as to the substitution of key personnel, Agency shall be entitled to
terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to
perform the Services in a manner acceptable to the Agency, or who are determined by the
Agency to be uncooperative, incompetent, a threat to the adequate or timely completion of the
Project or a threat to the safety of persons or property, shall be promptly removed from the
Project by the Consultant at the request of the Agency. The key personnel for performance of
RVPUBWGS544364 2
this Agreement are as follows: Michael Williams, Curt de Crinis and Cary Gordon.
3.2.5 Agency's Representative. The Agency hereby designates Rick Cole, or his
designee, Michael Hennessey, to act as its representative:for the performance of this Agreement
("Agency's Representative"). Agency's Representative shall have the power to act on behalf of
the Agency for all purposes under this Contract. Consultant shall not accept direction or orders
from any person other than the Agency's Representative or his or her designee.
3.2.6 Consultant's Representative. Consultant hereby designates Michael
Williams, or his or her designee, to act as its representative for the performance of this
Agreement("Consultant's Representative"). Consultant's Representative shall have full
authority to represent and act on behalf of the Consultant for all purposes under this Agreement.
The Consultant's Representative shall supervise and direct the Services, using his best skill and
attention, and shall be responsible for all means, methods, techniques, sequences and procedures
and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.7 Coordination of Services. Consultant agrees to work closely with Agency
staff in the performance of Services and shall be available to Agency's staff, consultants and
other staff at all reasonable times.
3.2.8 Standard of Care; Performance ofiEmplovees. Consultant shall perform
all Services under this Agreement in a skillful and competent manner, consistent with the
standards generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the professional
calling necessary to perform the Services. Consultant warrants that all employees and
subcontractors shall have sufficient skill and experience'to perform the Services assigned to
them. Finally, Consultant represents that it, its employees and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature'that are legally required to perform the
Services, including a Agency Business License, and that.such licenses and approvals shall be
maintained throughout the term of this Agreement. As provided for in the indemnification
provisions of this Agreement, Consultant shall perform, at its own cost and expense and without
reimbursement from the Agency, any services necessaryto correct errors or omissions which are
caused by the Consultant's failure to comply with the standard of care provided for herein. Any
employee of the Consultant or its sub-consultants who is determined by the Agency to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat
to the safety of persons or property, or any employee who fails or refuses to perform the Services
in a manner acceptable to the Agency, shall be promptly removed from the Project by the
Consultant and shall not be re-employed to perform any'of the Services or to work on the Project.
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RVPUBWGS\541369 3
3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance
with all local, state and federal laws, rules and regulations in any manner affecting the
performance of the Project or the Services, including all Cal/OSHA requirements, and shall give
all notices required by law. Consultant shall be liable for all violations of such laws and
regulations in connection with Services. If the Consultant performs any work knowing it to be
contrary to such laws, rules and regulations and without giving written notice to the Agency,
Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend,
indemnify and hold Agency, its officials, directors, officers, employees and agents free and
harmless, pursuant to the indemnification provisions of this Agreement, from any claim or
liability arising out of any failure or alleged failure to comply with such laws, rules or
regulations.
3.2.10 Insurance.
3.2.10.1 Time for Compliance. Consultant shall not commence
Work under this Agreement until it has provided evidence satisfactory to the Agency that it has
secured all insurance required under this section. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has provided evidence satisfactory
to the Agency that the subcontractor has secured all insurance required under this section.
3.2.10.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of
the Agreement by the Consultant, its agents, representatives, employees or subcontractors.
Consultant shall also require all of its subcontractors to procure and maintain the same insurance
for the duration of the Agreement. Such insurance shall meet at least the following minimum
levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001); (2)Automobile Liability:
Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto);
and (3) Workers'Compensation and Employer's Liability: Workers' Compensation insurance as
required by the State of California and Employer's Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall maintain
limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other form with
general aggregate limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required occurrence limit;
(2)Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3)
Workers' Compensation and Employer's Liability: Workers' Compensation limits as required by
the Labor Code of the State of California. Employer's Liability limits of$1,000,000 per accident
for bodily injury or disease.
RVPUBWGS%544364 4
3.2.10.3 Professional Liability. Consultant shall procure and
maintain, and require its sub-consultants to procure and maintain, for a period of five (5) years
following completion of the Project, errors and omissions liability insurance appropriate to their
profession so long as it is commercially available at a reasonable cost. Such insurance shall be in
an amount not less than $1,000,000 per claim.
3.2.10.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms supplied or
approved by the Agency to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall be
endorsed to state that: (1) the Agency, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insured with respect to the Work or operations
performed by or on behalf of the Consultant, including materials, parts or equipment furnished in
connection with such work; and (2)the insurance coverage shall be primary insurance as respects
the Agency, its directors, officials, officers, employees, agents and volunteers, or if excess, shall
stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying
coverage. Any insurance or self-insurance maintained by the Agency, its directors, officials,
officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall
not be called upon to contribute with it in any way.
(B) Automobile Liability. Any insurance or self-insurance
maintained by the Agency, its directors, officials, officers, employees, agents and volunteers shall
be excess of the Consultant's insurance and shall not be called upon to contribute with it in any
way.
(C) Workers' Compensation and Employers Liability Coverage.
The insurer shall agree to waive all rights of subrogation;against the Agency, its directors,
officials, officers, employees, agents and volunteers for losses paid under the terms of the
insurance policy which arise from work performed by the Consultant.
(D) All Coverages. Each insurance policy, except automobile
and professional liability, required by this Agreement shall be endorsed to state that: (A)
coverage shall not be suspended, voided, reduced or canceled except after thirty(30) days prior
written notice by certified mail,return receipt requested,has been given to the Agency; and (B)
any failure to comply with reporting or other provisions of the policies, including breaches of
warranties, shall not affect coverage provided to the Agency, its directors, officials, officers,
employees, agents and volunteers.
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RVPUBWGSK41364 5 -
3.2.10.5 Separation of Insureds;No Special Limitations. All
insurance required by this Section, except automobile liability, shall,contain standard separation
of insureds provisions. In addition, such insurance shall not contain any special limitations on
the scope of protection afforded to the Agency, its directors, officials, officers, employees,
agents, and volunteers.
3.2.10.6 Deductibles and Self-Insurance Retentions. Any
deductibles or self-insured retentions must be declared to and approved by the Agency.
3.2.10.7 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in
California, and satisfactory to the Agency.
3.2.10.8 Verification of Coverage. Consultant shall furnish Agency
with original certificates of insurance and endorsements effecting coverage required by this
Agreement on forms satisfactory to the Agency. The certificates and endorsements for each
insurance policy shall be signed by a person authorized by that insurer to bind coverage on its
behalf, and shall be on forms provided by the Agency if requested. All certificates and
endorsements must be received and approved by the Agency before work commences. The
Agency reserves the right to require complete, certified copies of all required insurance policies,
at any time.
3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services, the Consultant shall at
all times be in compliance with all applicable local, state and federal laws, rules and regulations,
and shall exercise all necessary precautions for the safety of employees appropriate to the nature
of the work and the conditions under which the work is to be performed. Safety precautions as
applicable shall include, but shall not be limited to: (A) adequate life protection and life saving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks,
confined space procedures, trenching and shoring, equipment and other safety devices,
equipment and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and(C) adequate facilities for the proper inspection and maintenance of all safety
measures.
RVPUBWG5\544364 6
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation
shall not exceed Forty five thousand dollars ($45,000)without written approval of Agency's
representative. Extra Work may be authorized, as described below, and if authorized,will be
compensated at the rates and manner set forth in this Agreement.
3.3.2 Payment of Compensation. Consultant shall submit to Agency an
itemized statement which indicates work completed and-out-of-pocket expenses incurred by
Consultant at the closing of each transaction. The statement shall describe the Services and out-
of-pocket expenses provided since the initial commencement date, on a project by project basis.
Agency shall,within 45 days of receiving such statement,review the statement and pay all
approved charges thereon.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any
expenses unless authorized in writing by Agency.
3.3.4 Extra Work. At any time during the term of this Agreement, Agency may
request that Consultant perform Extra Work. As used herein;"Extra Work" means any work
which is determined by Agency to be necessary for the proper completion of the Project,but
which the parties did not reasonably anticipate would be necessary at the.execution of this
Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written
authorization from Agency's Representative.
3.4 Accounting Records.
3.4.1 Maintenance and Inspection. Consultant shall maintain complete and
accurate records with respect to all costs and expenses incurred under this Agreement. All such
records shall be clearly identifiable. Consultant shall allow a representative of Agency during
normal business hours to examine, audit, and make transcripts or copies of such records and any
other documents created pursuant to this Agreement. Consultant shall allow inspection of all
work, data, documents,proceedings, and activities related to the Agreement for a period of three
(3) years from the date of final payment under this Agreement.
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Rveuewcs\544364 7
3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Grounds for Termination. Agency may, by written notice to
Consultant, terminate the whole or any part of this Agreement at any time and without cause by
giving written notice to Consultant of such termination, and specifying the effective date thereof,
at least seven (7) days before the effective date of such termination. Upon termination,
Consultant shall be compensated only for those services which have been adequately rendered to
Agency, and Consultant shall be entitled to no further compensation. Consultant may not
terminate this Agreement except for cause.
3.5.1.2 Effect of Termination. If this Agreement is terminated as provided
herein, Agency may require Consultant to provide all finished or unfinished Documents and Data
and other information of any kind prepared by Consultant in connection with the performance of
Services under this Agreement. Consultant shall be required to provide such document and other
information within fifteen (15) days of the request.
3.5.1.3 Additional Services. In the event this Agreement is terminated in
whole or in part as provided herein, Agency may procure,upon such terms and in such manner as
it may determine appropriate, services similar to those terminated.
3.5.2 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such other
address as the respective parties may provide in writing for this purpose:
Consultant:
Michael Williams
C.M. de Crinis &Co., Inc.
11846 Ventura Blvd. Ste. 102
Studio City, CA 91604
Agency:
Azusa Redevelopment Agency
213 East Foothill Blvd.
Azusa, CA 91702-1295
Attn.: Michael Hennessey
RVPUMNGS�5a1360 8
Such notice shall be deemed made when personally delivered or when mailed, forty-eight
(48)hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at
its applicable address. Actual notice shall be deemed adequate notice on the date actual notice
occurred, regardless of the method of service.
3.5.3 Ownership of Materials and Confidentiality.
3.5.3.1 Documents &Data• Licerisina of Intellectual Property. This
Agreement creates a non-exclusive and perpetual license for Agency to copy, use, modify,reuse,
or sublicense any and all copyrights, designs, and other intellectual property embodied in plans,
specifications, studies, drawings, estimates, and other documents or works of authorship fixed in
any tangible medium of expression, including but not limited to,physical drawings or data
magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be
prepared by Consultant under this Agreement("Documents &Data"). Consultant shall require
all subcontractors to agree in writing that Agency is granted a non-exclusive and perpetual
license for any Documents &Data the subcontractor prepares under this Agreement. Consultant
represents and warrants that Consultant has the legal right to license any and all Documents &
Data. Consultant makes no such representation and warranty in regard to Documents &Data
which were prepared by design professionals other than Consultant or provided to Consultant by
the Agency. Agency shall not be limited in any way in its use of the Documents and Data at any
time, provided that any such use not within the purposes intended by this Agreement shall be at
Agency's sole risk.
3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans,
procedures, drawings, descriptions, computer program data, input record data,written
information, and other Documents and Data either created by or provided to Consultant in
connection with the performance of this Agreement shall be held confidential by Consultant.
Such materials shall not, without the prior written consent of Agency,be used by Consultant for
any purposes other than the performance of the Services. Nor shall such materials be disclosed
to any person or entity not connected with the performance of the Services or the Project.
Nothing furnished to Consultant,which is otherwise kriown to Consultant or is generally known,
or has become known, to the related industry shall be deemed confidential. Consultant shall not
use Agency's name or insignia,photographs of the Project, or any publicity pertaining to the
Services or the Project in any magazine,trade paper, newspaper, television or radio production or
other similar medium without the prior written consent of Agency.
3.5.4 Cooperation; Further Acts. The,Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as may be necessary,
appropriate or convenient to attain the purposes of this Agreement.
3.5.5 Attorney's Fees. If either party commences an action against the other
party, either legal, administrative or otherwise, arising lout of or in connection with this
Agreement, the prevailing party in such litigation shall be entitled to have and recover from the
i
RVPUBNGSl541364 9
losing party reasonable attorney's fees and all other costs of such action.
3.5.6 Indemnification.Financial Consultant agrees to indemnify(upon request by Agency)Agency,
its officers, agents, volunteers, employees and attorneys [IDEMNITTEES] against, and will
hold and save them and each of them harmless from,and all actions,claims damages to persons
or property,penalties obligations or liabilities that may be asserted or claimed by any person,
firm, entity, corporation, political subdivision or other organization arising out willful
misconduct,errors or omissions of Financial Consultant,its agents,employees,subcontractors
or invitees,including each person or entity responsible for the provision of services hereunder
save actions arising from Agency's or agents and consultants active negligence in performing
their duties hereunder.
3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by
both parties.
3.5.8 Governing Law. This Agreement shall be governed by the laws of the
State of California. Venue shall be in Los Angeles County.
3.5.9 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.5.10 Agene s Right to Employ Other Consultants. Agency reserves right to
employ other consultants in connection with this Project.
3.5.11 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties.
3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or
transfer, either directly or by operation of law, this Agreement or any
interest herein without the prior written consent of the Agency. Any
attempt to do so shall be null and void, and any assignees, hypothecates or
transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
3.5.13 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any
term referencing time, days or period for performance shall be deemed calendar days and not
work days. All references to Consultant include all personnel, employees, agents, and
subcontractors of Consultant, except as otherwise specified in this Agreement. All references to
Agency include its elected officials, officers, employees, agents, and volunteers except as
RVPUWNGS1544364 10
otherwise specified in this Agreement. The captions of the various articles and paragraphs are
for convenience and ease of reference only, and do not define, limit, augment, or describe the
scope, content, or intent of this Agreement.
3.5.14 Amendment: Modification. No supplement, modification, or amendment
of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach, whether of the same or other covenant or condition. No waiver,benefit,
privilege, or service voluntarily given or performed by a Party shall give the other Party any
contractual rights by custom, estoppel, or otherwise.
3.5.16 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.5.17 Invalidity. Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall continue in full force and effect.
3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not
paid nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Consultant, any fee, commission,percentage,,brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. For breach or
violation of this warranty, Agency shall have the right to rescind this Agreement without liability.
For the tern of this Agreement, no member, officer or employee of Agency, during the term of
his or her service with Agency, shall have any direct interest in this Agreement, or obtain any
present or anticipated material benefit arising therefrom.
3.5.19 Equal Opportunity Employment: Consultant represents that it is an equal
opportunity employer and it shall not discriminate agaihst any subcontractor, employee or
applicant for employment because of race,religion, color, national origin,handicap, ancestry, sex
or age. Such non-discrimination shall include,but not,be limited to, all activities related to
initial employment,upgrading, demotion,transfer, recruitment or recruitment advertising, layoff
or termination. Consultant shall also comply with all relevant provisions of Agency's Minority
Business Enterprise program, Affirmative Action Plan or other related programs or guidelines
currently in effect or hereinafter enacted.
i
3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it
is aware of the provisions of Section 3700 of the California Labor Code which require every
employer to be insured against liability for Worker's Compensation or to undertake self-insurance
in accordance with the provisions of that Code, and agrees to comply with such provisions before
commencing the performance of the Services.
RVPUB\N(M544364 11
3.5.21 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party
warrants that the individuals who have signed this Agreement have the legal power, right, and
authority to make this Agreement and bind each respective Party.
3.5.22 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.6 Subcontracting.
3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of
the work required by this Agreement, except as expressly stated herein, without prior written
approval of Agency. Subcontracts, if any, shall contain a provision making them subject to all
provisions stipulated in this Agreement.
AZUSA REDEVELOPMENT AGENCY C.M. de Crinis & Co., Inc.
By: By:
Rick Cole Michael Williams
Executive Director Sr. Vice President
Attest:
City Clerk
Approved as to Form:
Best Best&Krieger LLP
City Attorney
RVPUBWGS\544364 12
EXHIBIT "A"
SCOPE OF SERVICES
Financial Consultant agrees to perform the following services in a competent and
professional manner to the satisfaction of the Agency.
A. The Consultant agrees to assist the Client in developing a Plan of Finance for the issuance of
refunding tax allocation bonds. The Plan of Finance will include an analysis of the current
and projected tax revenues . The Consultant will'assist the Client in reviewing the Agency's
existing tax allocation bonds, OPA's, DDA's and other debt and prepare a Plan of Finance
taking into account the Agency's savings target.
B. Assist the Agency in the selection of professionals as necessary, to complete the Plan of
Finance including underwriter,bond counsel and disclosure counsel if requested.
C. Financial Consultant agrees to assist the Client arid,in the case of a negotiated sale ofbonds,
the selected managing underwriter in the coordination and management of the
implementation of the Plan of Finance and the financing process. This will include attending
meeting as necessary and the completion of analysis and reports.
D. Make necessary presentations to the staff, Agency Boards, and Council in the review and
approval of the financing.
E. Work cooperatively with the other consultants to insure that the Agency's financial goals are
accomplished in a timely manner. I
F. Review and comment on all financing documents and make recommendations regarding
structure, covenants, terms, and other conditions necessary to insure marketability of the
Bonds and to assure the Agency's financing objectives are achieved. The Consultant will
also review and make recommendations related to the Agency's Continuing Disclosure
obligation.
G. Recommend the establishment of funds and accounts and provisions for investment of funds.
H. The Financial Consultant agrees to assist the Client's Disclosure Counsel in the preparation
and distribution of an Official Statement,which will form the basis of the Bond offering and
which will contain comprehensive information with respect to the Bonds, the Client, the
project, the legal documents and other pertinent information.
I. Assist in the preparation of presentations to Moody's Investors Service and Standard and
i
RVPUBVJGS�544364 A-1
f
Poor's Corporation, if applicable, to obtain ratings for bonds. Assist in the negotiations of
the terms and conditions required by those ratings agencies and discuss the impacts on future
financings with Agency staff.
J. Assist in the preparation of presentations to municipal bond insurers, if applicable, for
possible credit enhancement for the bonds. Assist the Agency in evaluating various
insurance bid proposals and covenants. Assist in the negotiations of the terms and conditions
required by those insurers.
K. The Consultant will review the marketing plan proposed by the underwriter, in the case of
a negotiated sale, including marketing to retail investors, formation of a selling group,
timing of the Agency's bond sale and other bond issues the underwriter may be involved
in at the time of the sale.
L. The consultant will review with the Agency the bond pricing proposed by the
underwriter, in the case of a negotiated sale, including call features, selling bonds at
premiums or discounts, the use of serial and one or more term bonds and the cost or
benefits to the Agency.
M. hi the case of a negotiated sale,the Consultant will provide accurate and timely information
to the Client on market conditions on the day of pricing. The Consultant will review the
results of the underwriters' sales effort and assist the Client in negotiating the terms of the
Bond Purchase Agreement.
N. Consultant will review the Clients options with regard to defeasance securities and
recommend the timing and method of acquisition and expected savings target.
O. The consultant will review and comment on the final legal documents and review and
comment on the final official statement.
P. The Consultant will coordinate the closing of the transaction including the signing of
documents,the receipt of the sales proceeds for the bonds,the payment of the bond insurance
premium,the payment of cost of issuance and depositing the moneys in the various funds and
accounts with the trustee.
Q. The consultant will assist the Agency with the investment of the Debt Service Reserve and
the other Funds.
R. The Consultant will provide the Client with a final distribution list,bond record,which shall
include details regarding the Bonds and their sale, a final debt service schedule and a list of
the bond CUS1P numbers.
RVPUBWGS%544364 A-2
S. The Consultant will be available after the bond closing to answer questions of Agency staff
regarding the results of the bond underwriting.
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RVPU13WG51544364 A-3
717
EXHIBIT "B"
COMPENSATION
1. If the bonds are sold on a negotiated basis, our fee would not exceed $45,000 plus
out of pocket expenses not to exceed 5%excluding out of state travel.If this issue is
combined in a single issuance with two Series of Bonds, combined Redevelopment
Tax Allocations Bonds and Refunding Certificates of Participation, sold on a
negotiated basis,our fee would be$40,000 per Series plus out of pocket expenses not
to exceed 5% excluding out of state travel.
2. The consultant will agree to work on an hourly non-contingent fee basis at its' current
hourly rate of$215 - $265.
3. Extra work requested by the Agency not included in the scope of services will be
discussed with the Agency representative and approved prior to commencement. The
Consultant will bill the Agency at its normal hourly billing rate, for hourly work at
its' current rate of$215 - $265.
Out of pocket expenses would include,telephone,Federal Express,postage,copy,production
of material for rating and insurance presentations,required Agency business license, travel
and lodging as required.
RVPUBWGSl544364
B-1
AGENCY CONSENT ITEM
TO: THE HONORABLE CHAIRPERSON AND MEMBERS OF THE BOARD
FROM: JOSE AMADOR;ASST. ECONOMIC DEVELOPMENT/REDEVELOPMENT DIRECTOR
VIA: RICK COLE, CITY MANAGER
DATE: OCTOBER 6, 2003
SUBJECT: EXTENSION OF PROFESSIONAL SERVICES AGREEMENT FOR ECONOMIC
DEVELOPMENT/ REDEVELOPMENT DIRECTOR SERVICES PROVIDED BY HENNESSEY
GROUP
RECOMMENDATION
It is recommended that the Board of Directors approve extending the Professional Services/Contract
Employee Agreement for Hennessey Group for Economic Development/Redevelopment Director
services through March 31, 2004, increase the existing purchase order by $72,000, and authorize staff
to execute the attached Amendment.
BACKGROUND
On March 17, 2003, the Board approved hiring Michael Hennessey of the Hennessey Group to
provide Economic Development/Redevelopment Director services to the Agency in order to fast-track
current projects, coordinate staff, and effectively stream outside project consultants. A six-month
agreement in the amount of not-to-exceed $85,000 was approved at that time. The allocated
amount is now nearly replete, and the six month period is over. Because a well-qualified
replacement Director or Manager for the,agency has yet to be recruited, staff desires to extend the
Hennessey Group's services another six months to March 31, 2004, and add $72,000-an average of
$12,000 per month at $125.00 per hour-to the existing purchase order.
FISCAL IMPACF
Funding for this increase will be paid from salaries and benefits budgeted in FY 2003/04 for the
unfilled Economic Development/Redevelopment Director position. A budget transfer will be
necessary.
Prepared by Roseanna J. Jara
In:all/u
September 30, 2003
Mr. Michael Hennessey
The Hennessey Group
17300 — 17'hStreet, Suite )-251
Tustin, CA 92780
Amendment to City of Azusa Redevelopment Agency
Agreement for Contract Employee Services
for
Interim Economic Development/Redevelopment Director Services
The City of Azusa Redevelopment Agency hereby amends the Agreement made and entered into the
17`h day of March, 2003, by and between the City of Azusa/Redevelopment Agency, a municipal
organization organized under the laws of the State of California, and Michael Hennessey, as follows:
Under Section VIII. Term., extend the term of the Agreement to March 31, 2004, and increase
the compensation by$72,000, to $157,000.
All other provisions of the original Agreement remain unchanged.
CITY OF AZUSA/REDEVELOPMENT AGENCY
By:
Rick Cole
City Manager/Executive Director
AGENCY CONSENT ITEM
TO: THE HONORABLE CHAIRPERSON AND MEMBERS OF THE BOARD
FROM: MICHAEL HENNESSEY, ECONOMIC DEVELOPMENT/REDEVELOPMENT DIRECTOR
VIA: RICK COLE, CITY MANAGER
DATE: OCTOBER 6, 2003
SUBJECT: RECOGNITION OF $348,020 OF PROPERTY TAX INCREMENT REVENUES,
BUDGET AMENDMENT TO APPROPRIATE $132,210 FOR LA COUNTY PASS
THROUGH EXPENDITURES, $69,600 TO THE 20% LOW/MOD HOUSING FUND
AND AMEND THE CONTRACT WITH HdL COREN &CONE/PROPERTY TAX
RECOVERY IN ORDER TO PAY FOR ADDITIONAL SERVICES
RECOMMENDATION
It is recommended that the Agency Board: (1) Recognize $348,020 of property tax
increment revenues and appropriate $132,210 for payment to LA County pass-
through expenditures and $69,600 to the 20% low/mod housing fund and, (2) Amend
the contract with HDL Coren &Cone Property Tax Recovery in order to pay for
additional services in the amount of $52,020.
BACKGROUND
The City has an existing contract with HdL Coren and Cone to audit City and Agency
property tax receipts from Los Angeles County. Per the terms of the contract, HdL
earns 25% of any recovery made. In their 2002/03 audit, HdL recovered $348,020 in,
gross property tax increment for the West End Project area, which will be allocated to
the Agency in FY 2003/04, less County pass-throughs of $139,210. A 20% allocation
to the low/mod housing fund of $69,600 will also be required. HdL's fee for this
recovery is $52,020. In order to recognize the revenue and appropriate the funds
staff is making the above recommendations.
FISCAL IMPACT
A total net increase of $156,790 will occur in the West End Project debt service fund,
and will be available for the payment of current and future debt.
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a
CONSENT ITEM
TO: THE HONORABLE CHAIRPERSON AND MEMBERS OF THE BOARD
FROM: MICHAEL HENNESSEY, ECONOMIC DEVELOPMENT/REDEVELOPMENT
DIRECTOR
VIA: RICK COLE, CITY MANAGER '
DATE: OCTOBER G, 2003
SUBJECT: EXTENSION OF CONTRACT WITH KOSMONT &ASSOCIATES
RECOMMENDATION
It is recommended that the Agency Board approve extending the contract with Kosmont &
Associates for Redevelopment project management services to June 30, 2004, and authorize
staff to execute the attached Amendment.
BACKGROUND
On March 3, 2003, the Agency Board approved a not-to-exceed $75,000 contract with
Kosmont &Associates to provide real estate, economic advisory, and special redevelopment
project management services. The term of the contract was originally six months. Since
March, roughly $25,000 has been spent representing completion of a third of the contract. In
order to keep the Agency projects on track and complete the contract, staff recommends
extending the term to June 30, 2004.
FISCAL IMPACT
Funds for this contract were budgeted in FY 2003/04. There is no change to the contract
amount.
PREPARED BY ROSEANNA 1.]ARA
MH:RJJ/cs
i
Attachment-Amendment Letter
KosmontContrExdtm.doc
September 30, 2003
Mr. Larry J. Kosmont, CRE
Kosmont Partners
601 South Figueroa Street
Los Angeles, CA 90017
Amendment to City of Azusa Redevelopment Agency
Professional Services Agreement
for
Real Estate, Economic Advisory, and Redevelopment Project Management Services
The City of Azusa Redevelopment Agency hereby amends the Agreement made and entered
into the 5' day of March, 2003, by and between the City of Azusa Redevelopment Agency, a
municipal organization organized under the laws of the State of California, and Kosmont &
Associates, Inc., as follows:
Under Section 3.1.2 Term., exterid the term of the Agreement to June 30, 2004.
All other provisions of the original Agreement remain unchanged.
CITY OF AZUSAIREDEVELOPMENT AGENCY
BY: By:
Rick Cole Michael Hennessey
City Manager/Executive Director Director of Economic Development/
Redevelopment
W:\AGMTS\KosmontAgimt-030503Amend.doc
<_ WARRANT REGISTER NO. 05
FISCAL YEAR 2003-04
WARRANTS DATED 9/01/03 THROUGH 9/19/03
RESOLUTION NO.
FOR BOARD OF DIRECTORS' MEETING OF 10-06-03
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS
TO BE PAID OUT OF REDEVELOPMENT AGENCY FUNDS
THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA DOES RESOLVE AS
FOLLOWS:
SECTION 1. That the following claims and demands have been audited as required bylaw and that
the,same are hereby allowed in the amounts and ordered paid out of the Redevelopment Agency Funds as
hereinafter set forth:
80-11 O-REDEVELOPMENT ADMINISTRATION FUND $26,051,05
80-125-CBD CAPITAL PROJECTS FUND 34.67
80-135-WED CAPITAL PROJECTS FUND
80-185-RANCH CENTER CAPITAL PROJECTS FUND
81-155-TAX INCREMENT SET-ASIDE FUND
82-125-CBD DEBT SERVICE FUND
82-135-WED DEBT SERVICE FUND
82-185-RANCH CENTER DEBT SERVICE FUND
TOTAL ALL FUNDS: $26.085.72
SECTION 2. That the Secretary shall certify to the adoption of this resolution and shall deliver a
certified copy thereof to the Agency Treasurer and shall retain a certified copy thereof in his own records.
ADOPTED AND APPROVED THIS DAY OF 2003.
Chairman
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the
City of Azusa at a regular meeting thereof, held on the day of 2003.
AYES: DIRECTORS:
NOES: DIRECTORS:
ABSTAIN: DIRECTORS:
ABSENT: DIRECTORS:
Secretary
pie 1
W, of Azusa I-IP 9000 09/30/03 -- Oeg GL �% BI_Z --�cb.I265662 #J096----ING By
0 <1.34� -�1"t id: CI�EL'IR02
SEP 30, 2003, 3:15 F{wl --�: �E--
SE= �� Ctdes: 80_82 . M g�tu� Dates: 07/01/2003-06/30/2004 ; Cherk Issue Dates: 09/01/2003-09/19/2003
PE ID PE Nmre ACJJ-Vr M143Ez / JCB NU4M Irmoioa Number Descriptim St Disc. Pmt. Dist. Fxt.
V01305 AaBA CTT1' FED C 8000000000-3035 2610/0301018 0p�#18/03 PD 0.00 62.50
V01305 AZ-EA = FID C 8000000000-3035 2610/0301019 PR#19/03 PD id- 62.50
0.00
ID Ll 1.25.00
V00355 AZTTSA PAYd1LL AC 8000000000-3005 PR1903 Taxes Pblft PD 0.00 683.35
V00355 AZUSA PPIRC3LL AC 8000000000-3003 PR1903 Taxes le FI FD 0.00 389.98
Wi PD 0.00 2,112.90
V00355 AZCISA PAYld7LL AC 8000000000-3001 X803 Pbl/Withhe PD 0.00 21390.44
V00355 P� PAYf2L3I� AC 8000000000-3001 PR1803 Taxes Pbl/Wit1?e PD 0.00 771.08
V00355 AarA PAYf�7LL AC 8000000000-3005 PR1803 Tams Payable/FI FD 0.00 458.92
V00355 AZLFA PA)MM AC 8000000000-3003 y
PEID Paid: 6,806.67
Total: 6,806.67
V02686 BOISE CA 0EE OF 8010110000-6530 410773 P363437 PAD!LM PD 0.00 18.07
V02686 BOISE CASOTE OF 8010110000-6530 410773 24555 HI-ME PD 0.00 3.76
V02686 BOISE CASCpM OF 8010110000-6530 410773 E966068 SIGN S PD 0.00 8.90
V02686 BOISE C7LS OF 8010110000-6530_ . . 410773 E9067-6 -FILM C PD 0.00 8.90
V02686 BOISE CPSEALE OF 8010110000-6530 410773 067-64 FILM C-PD - - - .0-..00._ .. _ 6..92
V02686 BOISE CASA OF 8010110000-6530 410773 E966080 IRAC 2, PD 0.00 5.01
V02686 BOISE CA9QILE OF 8010110000-6530 410773 Ki4150CH RACK PD 0.00 31.47
V02686 BOISE CAS OF 8010110000-6530 410773 L229030 CRIER.§/ PD 0.00 9.59
V02686 BOISE CASCK E OF 8010110000-6530 410773 1505-2B PD 0.00 0.82
V02686 BOISE OF 8010110000-6530 410773 L215042 QPN3/TSB PD 0.00 4.08
V026BG BOISE CAS(MM OF 8010110000-6530 410773 L225220 B PD id: 7.75
pEID �i d: 0.00
Paid: 105.27
T--W: 105.27
V04912 C LIFE ASSU.8000000000-2725 1220/0301018 pp�18/03 PD 0.00 51.13
V0491,2 C7�IIA LIFE PSSU 8000000000-2725 1220/03010]9 pR#19/03 PD 0.00 52.74
PEIDPaid: 103.87
Total: 103.87
V00348 CUNEBM pE21LM4 18000000000-3054 2435/0301018 PR#18/03 PD 0.00 19.25
�f r nJl
a of Azusa HP 9000 09/30/03 O.P E N H O L D D B LISTING
to 2
SEP 30, 2003, 3:15 HMI --ssq: F�6E------leg: � JLr-loc: BI-ZF]:I-I---jcb: 265662 #J096----ping: CEI400 <1.34>--report id: Q�FL�F 'II202
SE= FUND Ctdas: 80-82 ; GL Posting Dates: 07/01/2003-06/30/2004 ; Cock Issue Dates: 09/01/2003-09/19/2003
PE ID PE Nam AO= NUMBER / JCB NUIM Irrvoice N ber D--=pticn St Disc. Pmt. Dist. Pmt.
PEID Upaid: 0.00
d: 19.25
Total: 19.25
V04623 TENIAL HEALTH SV 8000000000-3052 030902578 SEPI03/1941/1941 PD 0.00 118.13
PEID Upaid: 0.00
Paid: 118.13
Total: 118.13
V00331 FE:ERAL EXPRESS 8010125000-6301/505405-6301 480797232 117052788 PD 0.00 18.67
PEID ik�id: 0.00
Paid: 18.67
Total: 18.67
V06713 HELLER AS93CIATE 8000000000-2724 1225/0301018 PR#18/03 PI) 0.00 5.50
PEID ULmid: 0.00
Paid: 5.50
Total: 5.50
V07068 HRTE= G CUP 8010110000-6399 706 QNIPACT EMPLOYE PD 0.00 12,093.75
PEID UTmidd: 0.00
Pai : 12,093.75
Total: 12,093.75
V01916 JARA PEITC CASH 8010125000-6625/502801-6625 081803 PAR=/PLANAME PD 0.00 16.00
V01916 JARA PEIIY CPI, 8010110000-6530 081803 Office Sopplies PD 0.00 9.26
V01916 JARA PEPPY CASH, 8010110000-6235/504800-6235 081803 CR*4HER PD 0.00 10.00
PED ihUmaid: 0.00
Paid: 35.26
Total: 35.26
V03126 LUZOLN NATICiQAL 8000000000-3010 1320/0301018 18/03 PD 0.00 56.25
V03126 LTN= =CNAL 8000000000-3010 1320/0301018 18/03 PD 0.00 53.35
V03126 LJNCCLN NIITICNAL 8000000000-3010 1320/0301018 18/03 PD 0.00 176.53
V03126 LIKEN NUICNAL 8000000000-3010 2325/0301019 119/03 PD 0.00 176.53
PEID Upaid: 0.00
City of Azusa p 9000 09/30/03 O P E N HOLD D B L I S T I N G By 0 3t
Nme 3
Cit SEP 30, 2003, 3:75 RSI --req: f�6E------leg: Q JL -loc: BI-IFSIIH---7ob: 265662 #►J096----pro3: X400 <1.3 >--repert id: �gL 2
ca= FUQD Cbcbs; 80-82 ; (1, Posting Dates: 07/01/2003-06/30/2004 ; Check Issue Dates: 09/01/2003-09/19/2003
PE ID PE Na[[e PLI NCNBE]2 / JCB NUvBER Ice mffber D,escn tion St Disc. Pmt. Dist. Pmt.
—
Paid- 462.66
Total: 462.66
V06703 PFdDKRA PRINPIN 8010110000-6539/504800-6539 0660000748 1000 OJPIES JULY PD 0.00 623.97
PEID �i d: 0.00
Paid: 623.97
Total: 623.97
Pers Ppa�yyaabble PD 0.00 1,067.12
V00353 PUBLSC II�PLOYEES 8000000000-2728 08034 'ICM IINPLYR&II PL, PD 0.00 901.27
V00353 PCBLSC IINPLOYEES 8000000000-2728
PEIDih�.�d: 0.00
Paid: 1,968.39
'Ictal: 1,968.39
V04138 RELIASINR BFN[�R.8000000000-3054 2215%0301018 x18 18%03 PD 03 PD 0.00 2.50
V04138 RELIPSIAR MUM 8000000000-3053 ��aid00
PEID Paid: 4:
Total: 4.37
M003090226000 HE ff— Ak FD 0.00 3.07
V02675 -SPATE OF- 612 8000000000-2724 - 'I�//
V02675 SDUE OF CAL7FCR 8000000000-3051
H2O03090226000 - HE?1i, - SE.PD - --0.00- ---1,.541..66 _- . . . .--..
PEIDayd: 0.00
'Paid: 1,544.73
W8103
'Total: 1,544.73
V06783 SIM SIRFEP BAN 8000000000-3010 1310%0301016 W8%03 PD 0.00 490.56
V06783 SPA'iE STREET BAN 8000000000-3010
PEID 0.00
549.56
Total: 549.56
V04909 CNCM L7FE II1SC7RA 8000000000-3044 1255/0301018 018/03 PD FD 0.00 141.63
V04909 LNE LIFE IIRA 8000000000-3044
PEUD Lid; 0.00
Paid: 287.71
City of Azusa HP 9000 09/30/03 O P E N H O L D D B LISTING By � Na
tity re Page 4
SEP 30, 2003, 3:15 FM --req: FLEE------lag: GL JL--lcc: BI-TEal---jcb: 265662 #J096----ping: CFA00 <1.344>--report id: CEIEM02
SE1= FU0 Cbcbs: 80-82 ; GL Forting Dates: 07/01/2003-06/30/2004 ; Check Issue Dates: 09/01/2003-09/19/2003
FE ID FE Nae AC= NU43ER / JCB nPBM Lvoice Nsder Description St Disc. Pmt. Dist. Pmt.
Total: 287.71
V02832 LEBPN LAND = 8010110000-6230 15962104 UCS IxJES/J.AvPW PD 0.00 190.00
PEID Ug)aid: 0.00
Paid: 190.00
Total: 190.00
V00388 VERIZZN (GIE) 8010110000-6915 082803A 626-1975078 PD 0.00 34.00
PEID d: 0.00
Paid: 34.00
Total: 34.00
V00876 V?LgBl= nRI A 8000000000-3010 1330/0301018 18/03 PD- 0.00 197.67
V00876 MgUEGIM MTIUA 8000000000-3010 1330/0301018 18/03 PD 0.00 492.87
V00876 WkcJ1[N=V00876 KUM=III= M ILS 8000000000-3010 2335/0301019 19/03 rD 0.00 219.67
PEID Lh:id: 0.00
Paid: 988.96
Total: 988.96
GRAND TOTALLhuxzid: 0.00
Paid: 26,085.72
Total: 26,085.72
U
.CgrI��P
CITY OF AZUSA
MINUTES OF THE AZUSA PUBLIC FINANCING AUTHORITY
REGULAR MEETING
MONDAY,JULY 21, 2003 -9:39 P.M.
The Board of Directors of the Azusa Public Financing Authority of the City of Azusa met
in regular session at the above date.
Chairperson Mayor Madrid called the meeting to order. Call to Order
ROLL CALL Roll Call
PRESENT: DIRECTORS: HARDISON, STANFORD, CHAGNON, ROCHA,
MADRID
ABSENT: DIRECTORS: NONE
ALSO PRESENT: Also Present
General Counsel Carvalho,Executive Director Cole,City Department Heads, Secretary
Mendoza, Deputy Secretary Toscano.
THE CITY COUNCIL CONVENED JOINTLY WITH THE AZUSA PUBLIC FINANCING Cncl convened
AUTHORITY AT 9:39 P.M. TO DISCUSS THE FOLLOWING ITEM: Jntly APFA
Approval of Debt Financing Documentation Associated with the Proposed Financing Debt Fin
through Financing Authority of Resource Efficiency of California(FARECal)in Connection Docs FARECal
with City's Electric and Water System Capital Improvements Projects.
Electric&Wtr
Director of Utilities Hsu addressed the Hearing stating that there are three series of
Bond for consideration; Series A Is for Refunding Water Bond, Series B Is the Tax Dir of Utilities
Exempt portion of the Azusa Substation which total cost is close to 10 million;Azusa's Comments
portion is 4 million, and there is a need to connect to Edison facilities and those
finances have to be taxable which are Series C. He then answered questions posed by
Councilmembers.
Councilmember Hardison offered a Resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, (1)
APPROVING THE ISSUANCE OF A PRELIMINARY OFFICIAL STATEMENT AND AN Res. 03-C62
OFFICIAL STATEMENT OF FARECAL AND THE EXECUTION OF TWO TRUST Re: Debt
AGREEMENTS, (11)APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY Financing
OF (A) INSTALLMENT SALE AGREEMENTS, (B) CONTINUING DISCLOSURE FARECal
AGREEMENTS, (C)AN ESCROW AGREEMENT,AND(D)DOCUMENTS TO TERMINATEA
RESERVE FUND AGREEMENT AND REVISE A DEBT SERVICE DEPOSIT AGREEMENT,AND Electric&
(111)AUTHORIZING CERTAIN OTHERACTIONS,ALL IN CONNECTION WITH FARECAL'S Water
CERTIFICATES OF PARTICIPATION TO FINANCE CERTAIN IMPROVEMENTS TO THE
CITYS ELECTRIC UTILITY SYSTEM AND TO REFUND CERTAIN OUTSTANDING
INDEBTEDNESS RELATED TO THE CITY'S WATER UTILITY SYSTEM.
Moved by Councilmember Hardison, seconded by Mayor Pro-Tem Rocha to waive
further reading and adopt. Resolution passed and adopted by the following vote of the
Council:
AYES: COUNCILMEMBERS: HARDISON,STANFORD, ROCHA, CHAGNON,
MADRID
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
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S
CONSENT ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE BOARD OF DIRECTORS OF
THE AZUSA PUBLIC FINANCING AUTHORITY
FROM: URIEL MACIAS, CITY TREASURER ZZA C. _Z
DATE: OCTOBER 6, 2003
SUBJECT: INVESTMENT POLICY FOR THE CITY OF AZUSA, PUBLIC FINANCING AUTHORITY
RECOMMENDATION
The City Treasurer recommends that the Board Members approve the attached resolution re-
adopting the Investment Policy for the City of Azusa, Public Financing Authority.
BACKGROUND
State law requires that the Investment Policy for each city be re-adopted every year with changes
that may be necessary or desirable. The Board Members last adopted the policy on September
16, 2002.
FISCAL IMPACT
None
Azusa Public Financing Authority
(APFA)
Investment Policy
1. POLICY STATEMENT
All funds of the APFA shall be invested in accordance with principles of sound treasury
management and in accordance with the provisions; of the California Government Code
Sections 53600 et seq., (the Municipal Code), .and guidelines established by the
California Municipal Treasurer's Association, the California Society of Municipal
Finance Officers, and this Investment Policy ("Policy). These funds are defined and
detailed in the City's Comprehensive Annual Financial Report (CAFR) and includes any
new funds created unless specifically excluded by the Board..
Specifically excluded funds are:
Funds deposited with the State Public Employees' Retirement System and;
Bond proceeds that are subject to covenants and restrictions as defined in the
Bond's indenture or are administered under the direct control of the Bond Trustee.
2. INVESTMENT POLICY OBJECTIVES
A. Overall Risk Profile
The objectives of the APFA's Investment Program are, in order of priority:
1. Safety of principal of invested funds;
2. Maintenance of sufficient liquidity to meet cash flow needs; and
3. Attainment of the maximum yield possible consistent with the first two
objectives.
To achieve these objectives, The APFA shall consider the following when making an
investment:
1. Safety of Principal of Invested Funds,
The APFA shall mitigate the risk to the principal of invested funds by limiting
credit and interest rate risks. Credit Risk is the risk of loss due to the failure of
a security's issuer or backer. Interest Rate Risk is the risk that the market
value of the APFA's portfolio will fall-due to an increase in general interest
rates.
a) Credit risk will be mitigated by:
Investment Policy—Con't
(i) Limiting investments to the safest types of securities;
(ii) By pre-qualifying the financial institutions with which it will do
business; and
(iii) By diversifying the investment portfolio so that the potential
failure of any one issue or backer will not place an undue financial
burden on the City.
b) Interest rate risk will be mitigated by:
(i) Structuring the APFA's portfolio so that securities mature to meet
the City's cash requirements for ongoing obligations, thereby
avoiding the possible need to sell securities on the open market at a
loss prior to their maturity to meet those requirements; and
(ii) Investing primarily in shorter term securities.
2. Liquidity
The APFA's investment portfolio shall be structured in a manner which
emphasizes that securities mature at the same time the cash is needed to
meet anticipated demands (Static Liquidity). Additionally, since all
possible cash demands cannot be anticipated, the portfolio should consist
of securities with active secondary markets (Dynamic Liquidity). The
maximum percentage of different investment instruments and maturities is
described in Section II of this Policy.
3. Yield
Yield on the APFA's investment portfolio is of secondary importance
compared to the safety and liquidity objectives described above.
Investments are limited to relatively low risk securities in anticipation of
earning a fair return relative to the risk being assumed. While it may
occasionally be necessary or strategically prudent for the APFA to sell a
security prior to maturity to either meet unanticipated cash needs or to
restructure the portfolio, this policy specifically prohibits trading securities
for the sole purpose of speculating on the future direction of interest rates.
B. Basic Investment Strategy
The APFA's investment portfolio shall be structured to provide that sufficient funds from
investments are available each month to meet the APFA's anticipated cash needs. Subject
to the objectives stated above, the choice in investment instruments and maturities shall
be based upon an analysis of future anticipated cash needs, existing and anticipated
revenues, interest rate trends and specific market opportunities. No investment may have
a maturity of more than five (5) years from its date of purchase without receiving prior
2
Investment Policy—Con't
i
Board approval. After approval by the Board, reserve funds associated with bond issues
may have a maturity of more than five (5) years, up to the earliest date the bonds may be
redeemed or mature.
3. INVESTMENTS
This section of the Investment Policy identifies the types of investments in which the
APFA will invest its idle or surplus funds.
A. Standard of Prudence
The APFA operates its investment portfolio;under the Prudent Investor Standard
(California Government Code Section 53600.3) which states, in essence, that
"when investing, reinvesting, purchasing,' acquiring, exchanging, selling or
managing public funds, a trustee shall act with care, skill, prudence and diligence
under the circumstances then prevailing, including, but not limited to, the general
economic conditions and the anticipated need of the City, that a prudent person in
a like capacity and familiarity with those matters would use in the conduct of
funds of a like character and with like aims, to safeguard the principal and
maintain the liquidity needs of the APFA'.
This standard shall be applied in the context of managing the overall portfolio.
Investment officers, acting in accordance with written procedures and this
investment policy and exercising the above standard of diligence shall be relieved
of personal responsibility for an individual isecurity's credit risk or market price
changes, provided deviations from expectations are reported in a timely fashion
and appropriate action is taken to control adverse developments.
B. Eligible Securities
The APFA is provided a broad spectrum of eligible investments under California
Government Code Section 53600 et seq. ;The City may choose to restrict its
permitted investments to a smaller list o£ securities that more closely fits the
City's cash flow needs and requirements for liquidity. . If a type of investment is
added to California State Code 53600, it will not be added to the City's
Authorized Investment List until this policy; is amended and approved by the City
Council. If a type of investment permitted!by the City should be removed from
California State Code 53600, it will be deemed concurrently removed from the
APFA's Authorized Investment List.
The APFA's Authorized Investment List;
Insured Certificates of ;Deposit (CD's) of California banks
and/or savings and loan associations, and/or savings banks
which mature in five years or less, provided that the City's
investments shall note exceed One Hundred Thousand
($100,000) per institution. If the investment exceeds the
3
Investment Policy—Con't
insured $100,000, the funds are to be collateralized at 110% of
the deposit in government securities or 150%in mortgages.
• Local Agency Investment Fund (State Pool)Demand Deposits.
• Securities of the U.S. Government, and securities of which the
principal and interest is guaranteed by the full faith and credit
of the U.S. Government.
• Securities issued by agencies and instrumentalities of the U.S.
Government or issued by a government sponsored enterprise.
• Commercial Paper (limited to 30% of the portfolio) rated
Al/P1 or the equivalent by 2 nationally recognized rating
agencies with maturities not to exceed 181 days.
• Medium —Term Corporate Notes (limited to 20% of the
portfolio) that are rated "AA" or better by two nationally
recognized rating agencies.
• Passbook Savings or Money Market Demand Deposits, subject
to the restrictions and limitations set forth in Government Code
Section 53638.
• Repurchase Agreements (limited to 30% of the portfolio) with
approved banks and broker-dealers who have completed and
signed a Master Repurchase Agreement with the City.
• Money Market Mutual Funds (with a stated objective of
maintaining a $1 net asset value) that has been rated AAAm by
Moody's or any two nationally recognized rating agencies.
Please see Exhibit A for a more detailed description of the
authorized investments listed above.
A thorough investigation of any pool or fund is required prior to investing and on
a continual basis. The investigation will, at a minimum, obtain the following
information:
A description of eligible investment securities, and a written
statement of investment policies and objectives.
A description of interest calculations and how it is distributed, and
how gains and losses are distributed.
A description of how securities are safeguarded (including the
settlement process) and how often the securities are marked to
market and how often an audit is conducted.
4
Investment Poli —Coni
A description of who may invest in the program, how often, what
size deposits and withdrawals are permitted.
A schedule for receiving statements and portfolio listings.
Does the pool/fund maintain a reserve or retain earnings or is all
income after expenses distributed to participants?
A fee schedule which also ;discloses when and how fees are
assessed.
Is the pool or fund eligible for bond proceeds and/or will it accept
such proceeds?
The purpose of this investigation is to determine the suitability of a pool or fund
and evaluate the risk of placing funds with that pool or fund.
One of the purposes of this Investment Policy is to define what investments
are permitted. If a type of security is not specifically authorized by this
policy, it is not a permitted investment.
C. Oualification of Brokers Dealers and Financial Institutions
The Authority Treasurer or their designees will establish and maintain a list of the
financial institutions and broker/dealers authorized to provide investment and
depository services to the City, will perform an annual review of the financial
condition and registrations of the qualified bidders, and require annual audited
financial statements to be on file for each approved company. The City shall
annually send a copy of the their current Investment Policy to all financial
institutions and broker/dealers approved to do business with the City. Receipt of
the Policy and Enabling Resolution, including confirmation that it has been
received and reviewed by the person(s) handling the City's account, shall be
acknowledged in writing within thirty(30) days.
All broker-dealers and financial institutions that desire to become qualified
bidders for investment transactions must submit a "Broker-Dealer Application"
and related documents relative to eligibility. This includes a current audited
financial statement, proof of state registration, proof of NASD registration and a
certification they have received and reviewed the City's Investment Policy and
agree to comply with the provisions outlined in the Investment Policy. The City
Treasurer or their designees may establish any additional criteria they deem
appropriate to evaluate and approve any financial services provider. The selection
process for broker-dealers shall be open to both "primary dealers" and
"secondary/regional dealers" that qualify under Securities and Exchange
Commission Rule 150-1 (Uniform Net Capital Rule). The provider must have an
office in California and the provider's representative must be experienced in
institutional trading practices and familiar with the California Government Code
as it relates to investments by a City.
5
Investment Policy—Con't
D. Collateralization Requirements
Uninsured Time Deposits with banks and savings and loans shall be collateralized
in the manner prescribed by state law for depositories accepting municipal
investment funds.
Repurchase Agreements shall be collateralized in accordance with terms specified
in the Master Repurchase Agreement. The valuation of collateral securing a
Repurchase Agreement will be verified weekly to ensure a minimum of 102% of
the value of the transaction is held by the APFA's depository agent.
E. Diversification
The APFA will diversify its investments by security type and investment. With
the exception of bond reserve funds, bond escrow funds, and any other specific
funds approved by the Investment Committee or the Board of Directors, the City
Treasurer or their designee and the City's Investment Committee will adopt a
strategy that combines current market conditions with the City's cash needs to
maintain the maximum degree of safety of principal and liquidity throughout
market and budgetary cycles. This strategy will include diversification by
investment type and maturity allocations and will be included in the regular
quarterly reports to Council. This strategy will be reviewed quarterly and can be
changed accordingly.
F. Confirmations
Receipts for confirmation of purchases or sales of authorized securities shall
include at a minimum the following information: trade date, settlement date,
description of the security, par value, interest rate, price, yield to maturity,
APFA's name,net amount due and third party custodial information.
G. GASB 3
The Governmental Accounting Standards Board (GASB) issued GASB #3 in
April 1986, and the local entity's investments must be categorized into one of
three levels of credit risk as follows:
a) Securities that are insured or registered, or for which the securities are
held by public units or its agent in the units;
b) Securities that are uninsured and unregistered and are held by the broker
or dealer or by its trust department or agent in the unit's name;
C) Securities that are uninsured and unregistered and are held by the broker
or dealer or by its trust department or agent,but not in the unit's name.
The carrying amount and market value of all types of investments must be
disclosed in total and for each type of investment. Government Accounting
'6
i
Investment Policy—Con't
Standards Board #3 exempts mutual funds and LAIF investments from the
mandatory risk categorization.
4. SAFEKEEPING OF SECURITIES
A. Safekeeping Agreement
The APFA shall contract with a bank or banks for the safekeeping of securities
that are owned by the APFA as a part of its'investment portfolio or transferred to
the APFA under the terms of a Repurchase Agreement.
All securities owned by the APFA shall be held in safekeeping by a third party
bank trust department acting as agent for the APFA under the terms of a custody
agreement executed by the bank and the APFA. All securities will be received
and delivered using standard delivery versus payment (DVP) procedures.
The third party bank trustee agreement must comply with Section 53608 of the
California Government Code. No outside! broker/dealer or advisor may have
access to City funds, accounts or investments and any transfer of funds must be
approved by the Authority Treasurer.
i
B. Security Transfers
The authorization to release the APFA's securities or funds will be telephoned to
the appropriate bank representative by a finance department member other than
the person who initiated the transaction. A,written confirmation outlining details
for the transaction and confirming the telephoned instructions will be sent to the
bank within five(5)working days. I
C. Verification of Securities
Securities transferred to the APFA as collateral securing time deposits or
repurchase agreements which are being held in safekeeping on behalf of the City
will be verified in writing and examined on a surprise basis during the year by the
City's independent auditors as a part of the APFA's annual independent audit
process.
5. STRUCTURE AND RESPONSIBILITIES
This section of the policy defines the overall struc'ttue and areas of responsibility within
the investment management program.
A. Responsibilities of the City Treasurer
The Authority Treasurer is charged with responsibility for maintaining custody of
all public funds and securities belonging to,or under the control of the APFA, and
for the deposit and investment of those funds in accordance with principles of
sound treasury management applicable Paws, ordinances and this Investment
Investment Policy—Con't
Policy. This includes establishing written procedures for the operation of the
investment program consistent with this policy. The procedures should include
reference to safekeeping, master repurchase agreements, wire transfer agreements,
banking services contracts and depository agreements. Such procedures shall also
include explicit delegation of authority to persons responsible for investment
transactions. No person may engage in an investment transaction except as
provided under the terms of this policy and the procedures established by the
Treasurer and approved by the Investment Committee. Investment decisions that
involve borrowing in the amount of $100,000 or more must be included as a
separate discussion item on the City Council's agenda. Such items can no longer
be included on the Board's consent calendar. (California Government Code
53635.7)
B. Responsibilities of the Director of Finance
The Director of Finance is responsible for keeping the Board fully advised as to
the financial condition of the APFA.
C. Responsibilities of the Board
The Board shall consider and adopt a written Investment Policy. As provided in
that policy, the Board shall receive, review and accept quarterly investment
reports.
D. Responsibilities of the Investment Committee
There shall be an Investment Committee consisting of the Director of Finance, the
City Manager, the Authority Treasurer and their designees. The Committee shall
meet quarterly to discuss cash flow requirements, the monthly investment reports,
investment strategies, investment and banking procedures and significant
investment related work projects being undertaken in each department that will
affect the cash flow management of the City Treasurer. This will require timely
reports from the department heads to the Authority Treasurer concerning
significant future cash flow requirements. The Committee's meetings will be
summarized in minutes that are distributed to the Board. The Investment
Committee, with the approval of the Board, may retain an external investment
manager on behalf of the APFA. The investment manager will be required to act
in accordance with this investment policy.
E. Ethics and Conflicts of Interest
All City officers and employees involved in the investment process shall refrain
from personal business activity that could conflict with the proper execution of
the investment program, or that could impair their ability to make impartial
investment decisions. Those employees and investment officials shall disclose to
the appropriate City executive (City Manager, City Attorney, or the Director of
Finance) any material financial interests in financial institutions that conduct
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Investment Poli —Con't
business within the City, and they shall further disclose any large personal
financial/investment positions that could be related to the performance of the
APFA's investments.
6. REPORTING
The Authority Treasurer shall prepare a quarterly investment report, including a succinct
management summary that provides a clear picture of the status of the current investment
portfolio and transactions made over the past month; This management summary shall be
prepared in a manner that will allow the Director I of Finance and the City Council to
ascertain whether investment activities during the reporting period have deviated from
the City's Investment Policy.
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The monthly report shall include the following:
A. A list of individual securities held at the end of the reporting month.
B. Unrealized gains or losses resulting from amortization or accretion of
principal versus market value changes by listing the cost and market value
of securities owned by the City.
C. A description of the current investment strategy and the assumptions upon
which it is based.
D. Dollar weighted yield to maturity of the APFA's investments.
E. Maturity schedule by type, of each of the APFA's investments.
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F. Statement of compliance of the APFA's Investment Policy with California
Government Code Section 53601 et seq.
G. Statement as to ability to meet all scheduled expenditure requirements for
the next six months.
H. Market value, book value,par value and cost basis of all investments.
I. Investments "under the management of contracted parties, including
lending programs" (i.e. investments held by deferred compensation
administrators).
7. PERFORMANCE STANDARDS
The investment portfolio will be managed in accordance with the standards established
within this Investment Policy and should obtain' ! a market rate of return throughout
budgetary and economic cycles. The Investment Committee will establish and
periodically review the APFA's portfolio benchmarks and performance. A benchmark
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Investment Policy—Con't
will be selected that compares with the portfolio composition, structure and investment
strategy at that time.
8. REVIEW OF INVESTMENT POLICY
A. Policy Review
This Investment Policy shall be reviewed annually by the Board in accordance
with State law to ensure its consistency with respect to the overall objectives of
safety, liquidity and yield. Proposed amendments to the policy shall be prepared
by the Treasurer and reviewed by the Investment Committee and City Attorney
and then be forwarded to the Board for consideration. The Investment Committee
shall annually review the Investment Policy and any proposed amendments and
forward to the Board for its consideration and adoption at a public meeting.
B. Internal Control and Review
The external auditors shall annually review the investments and general activities
associated with the investment program to ensure compliance with this
Investment Policy. This review will provide internal control by assuring
compliance with policies and procedures for the activities that are selected for
testing.
9. ADOPTION OF POLICY
This Policy was duly adopted by the Board of Directors of the APFA on Ocotber
6, 2003.
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Investment Poli —Con't
EXHIBIT A
DESCRIPTION OF INVESTMENTS
The APFA's investments may be placed in those securities as outlined below; the.
allocation between the various investment instruments may change in order to give the
City the best combination of safety, liquidity and higher yield. Surplus funds of local
agencies may only be invested in certain eligible securities. The City limits its
investments to allowable securities under the State of California statutes (Government
Code Section 53601, et seq., Section 53356, et seq., and Section 53595, et seq.) and is
further limited to those listed below.
Certificates of Deposit
Certificates of deposit allow the APFA to select the exact amount and day of maturity as
well as the exact depository. Certificates of deposit are issued in any amount for periods
of time as short as fourteen days and as long as several years. At any given time, the City
may have certificates of deposit in numerous financial institutions in the future.
The Treasurer may at his discretion waive security;for that portion of a deposit, which is
insured pursuant to federal law. Currently, the first $100,000 of a deposit is federally
insured by FSLIC or FDIC. It may be to the Cit}. s advantage to waive this collateral
requirement for the first $100,000 because the City;may receive a higher interest rate. If
funds are to be collateralized, the collateral will be 110% of the deposit in government
securities or mortgages of 150%. At purchase, institutions must not show an operating
loss. Banks must have an equity to asset ratio I of at least 6%. Savings and loan
associations and savings banks must have an equity to asset ratio of at least 3%.
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Local Aeencv Investment Fund
The Local Agency Investment Fund (LAIF) of the State of California offers high
liquidity because deposits can be wired to the City checking account within twenty-four
hours. Interest is computed on a daily basis.
This is a special fund in the State Treasury, which local agencies may use to deposit
funds for investment. There is no minimum investment period and the minimum
transaction is $5,000 in multiples of$1,000 abovejthat, with a maximum of$40,000,000
for any City. It offers high liquidity because deposits can be converted to cash within
twenty-four hours and no interest is lost. All interest is distributed to those agencies
participating on a proportionate share determined by the amounts deposited and the
length of time they are deposited. Interest is paid quarterly by adding it to the principal.
The State charges participants a small fee to cover reasonable costs associated with
operating the investment pool,not to exceed one-quarter of one percent of the earnings.
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Investment Policy—Con't
The interest rates received are fairly stable because of the pooling of the State's surplus
cash with the surplus cash deposited by local governments. This creates a well-
diversified multi-billion dollar money pool.
U.S. Treasury Securities
U.S. Treasury securities are highly liquid and considered the safest of all investments
because they are back by the full faith and credit of the United States Government.
U.S. Treasury Bills are direct obligations of the United States Govemment.
They are issued weekly with maturity dates up to six months. They are issued and
traded on a discount basis and the interest is figured on a 360-day basis using the
actual number of days to maturity. They are issued in the minimum amount of
$10,000 and in multiples of$5,000 thereafter.
U.S. Treasury Notes are direct obligations of the United States Government.
They are issued throughout the year with maturities from 2 up to 30 years. Notes
are coupon securities paying a fixed amount every six months. The City will not
invest in notes having maturities longer then five years.
Federal Agency Securities
Federal Agency securities are highly liquid and considered to be virtually without credit
risk. Federal Agency issues are guaranteed indirectly by the United States Government.
All Agency obligations that are fixed-rate and meet the maturity restrictions of the State
Code and this policy qualify as legal investments and are acceptable as security for public
deposits. They usually provide higher yields than regular Treasury issues with all of the
same advantages. Examples are:
FNMA's (Federal National Mortgage Association) are used to assist the home
mortgage market by purchasing mortgages insured by the Federal Housing
Administration and the Farmers Home Administration, as well as those
guaranteed by the Veterans Administration.
FHLB's (Federal Home Loan Bank Notes and Bonds) are issued by the Federal
Home Loan Bank System to help finance the housing industry. The notes and
bonds provide liquidity and home mortgage credit to savings and loan
associations, mutual savings banks, cooperative banks, insurance companies and
mortgage-lending institutions.
Other Federal Agency issues are Federal Home Loan Mortgage Corporation
(FHLMC), Federal Farm Credit Bank (FFCB), Small Business
Administration Notes (SBA's), Government National Mortgage Association
(GNMA's), Tennessee Valley Authority (TVA's) and the Student Loan
Marketing Association (SLMA's).
Negotiable Certificate of Deposit
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Investment Poli —Con't
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Negotiable certificates of deposit are high-grade instalments,paying a higher interest rate
than regular certificates of deposit. They are liquid because they can be traded in the
secondary market.
Negotiable Certificates of Deposit (NCD's) are unsecured obligations of the issuing
financial institution, bank or savings and loan,bought at face value with a promise to pay
face value plus accrued interest at maturity. The primary market issuance is in multiples
of $1 million. The secondary market usually trades in denominations of $500,000,
although smaller denominations are occasionally available. Local agencies may not
invest more than 30% of their surplus money in negotiable certificates of deposit. NCD's
will only be placed with the largest and most financially sound institutions.
Commercial Paper
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Commercial paper allows the investment of large)amounts of money on a short-term
basis at rates higher than passbook savings accounts. Commercial paper is a short-term
unsecured promissory note issued by a corporation to raise working capital. These
negotiable instruments are purchased at a discount to par value. As an example,
corporations such as American Express, International Business Machines (IBM) and
General Electric issue commercial paper.
Local agencies are permitted by state law to invest in commercial paper of "prime"
quality of the highest ranking or of the highest letter and numerical rating as provided by
Moody's Investor's Service, Inc. or Standard and Poor's Corporation (Al/pl or Al+/pl).
Purchases of eligible commercial paper may not exceed 180 days maturity nor exceed
30% of the City's surplus funds.
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Medium-Term Corporate Notes
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A City may invest in medium term corporate notes with a maximum maturity of five
years issued by a corporation organized and operating within the United States, a
depository institution licensed by the United States' government or any state government
and operating within the United States. The California State Code (53601 et seq.) permits
cities to invest in corporations with a rating category of"A" or better, but the City will
limit its investments in corporate medium term notes to those issued by corporations that
have been rated"AA"or its equivalent by two nationally recognized ratings agencies.
Passbook Savings or Money Market Account
Passbook savings account allows us to transfer money from checking to savings and earn
interest on smaller amounts of money, which are not available for a longer-term
investment
The passbook savings account is similar to a CD, except not for a fixed term. The
interest rate is much lower than CD's,but the savings account provides daily liquidity and
funds can be deposited and withdrawn according to our daily needs.
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Investment Policy—Con't
Mutual Funds
Mutual funds allow the APFA to maintain liquidity and receive money market rates.
Mutual Funds are referred to in the Government Code, Section 5360LL, as "shares of
beneficial interests issued by diversified management companies". The Mutual Fund
must be restricted by its prospectus to be a "Money market" mutual fund and be limited
to the same approved investments as LAIF. These investments include U.S. Treasury and
Agency issues, Bankers Acceptances, Commercial Paper, Repurchase Agreements,
Certificates of Deposit, and Negotiable Certificates of Deposit. The quality rating and
percentage restrictions in each investment category applicable to LAIF also apply to any
Mutual Fund.
One of the stated objectives of the Mutual Fund must be to attempt to maintain a $1.00
Net Asset Value (NAV). A further restriction is that the purchase price of shares of any
mutual fund shall not include any sales commission. Investments in mutual funds shall
not exceed 15% of the City s surplus money.
Repurchase Agreements
Repurchase agreements are purchases of securities by the APFA under an agreement with
a term of one (1) year or less whereby the seller will "repurchase" the same securities on
or before a specified date or on demand of either party and for a specified amount. The
underlying securities must be delivered to the City's custodial account by book entry,
physical delivery or a third-party custodial agreement.
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RESOLUTION NO
RESOLUTION OF THE BOARD OF DIRECTORS OF THE AZUSA PUBLIC FINANCING
AUTHORITY OF THE CITY OF AZUSA ADOPTING THE
INVESTMENT POLICY
WHEREAS
the Public Financing Authority of the City of Azusa receives
taxes and other revenues from a variety of sources and uses the funds to pay its bills
on a regular basis; and
WHEREAS the APFA Treasurer is charged with the duties of handling and
maintaining the cash that is taken in or otherwise received by the Authority; and
WHEREAS the balance of these funds fluctuates between $3,000,000 and
$20,000,000 or more; and
WHEREAS the APFA Treasurer is charged with the responsibility of
investing idle public funds, doing so on the basis of protecting the safety of the funds,
ensuring the liquidity of the investments, and maximizing earnings in that order of
importance and based on the "Prudent Investor Standards"; and
WHEREAS the State of California requires each Authority to adopt an
investment policy for its jurisdiction.
NOW THEREFORE BE IT RESOLVED that the Board of Directors of the
Azusa Public Financing Authority of the City of Azusa does hereby adopt its
Investment Policy attached hereto marked Exhibit A and instructs the Agency
Treasurer to be guided by it in carrying out the duties of his office for the benefit of
the Azusa Public Financing Authority.
ADOPTED AND APPROVED this 6`" day of October, 2003
CHAIRMAN
I HEREBY CERTIFY that the foregoing resolution was duty adopted by the
Board of Directors of the Azusa Public Financing Authority of the City of Azusa at a
regular meeting thereof on the 6" day of October, 2003 by the following vote of
Directors:
AYES: BOARD DIRECTORS:
NOES: BOARD DIRECTORS:
r ..
vt
CONSENT ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE BOARD OF DIRECTORS
FROM: ORIEL E. MACIAS, PUBLIC FINANCING AUTHORITY TREASURER
STEVE KENOYER, ACTING FINANCING DIRECTOR
VIA: RICK COLE, CITY MANAGER
DATE: OCTOBER 6, 2003
SUBJECT: SELECTION OF FINANCIAL ADVISOR FOR REFINANCING THE AZUSA PUBLIC FINANCING
AUTHORITY 1994 CITY CERTIFICATES OF PARTICIPATION
RECOMMENDATION
It is recommended that the Board Members of the Public Financing Authority authorize initiation of
refunding the Authority's 1994 City Certificates of Participation, waive the formal Request for
Qualification process and approve the professional services agreement with C.M. de Crinis &Co.,
Inc., to provide financial advisory services for the certificate refunding.
BACKGROUND
In 1994, the Authority issued the $5,485,000 City Certificates of Participation. Due to the IRS
limitation placed on the number of advance refundings allowed, the Agency was not able to take
advantage of reduced interest rates. Effective August 1, 2003, this decision was reversed_ , and these
bonds can now be refinanced with substantial savings realized.
To initiate the refunding process, staff has formed a working committee comprised of the City
Treasurer, Acting Finance Director, Economic Development/Redevelopment Director, and Sr.
Accountant-Redevelopment. The committee has received a proposal from C.M. de Crinis &Co., Inc.,
to provide financial advisory services. This company was previously used in the issuance of the recent
utility bonds, and selected after careful evaluation of several proposals. They were successful in
making that issuance fiscally sound, timely, and thorough, and are already familiar with the City's
financial position. They are also one of the top ten financial advisors in municipal bond issuance.
They were approved by City Council for the utility bond issuance in March 2003, and staff desires to
utilize their services again for this refunding.
The scope of services provided by the Financial Advisor will include assessing the financing options
and impacts, financing structure, rating and bond insurance requirements and costs, a proposed bond
marketing and underwriting plan, reasonableness of the proposed bond pricing and underwriting fees,
and overall representation of, and advice to the Redevelopment Agency. The complete financing
structure and option plan will be presented to the Agency Board at a later date.
FISCAL IMPACT
The fee for the financial advisory services is not-to-exceed $47,250, including out-of-pocket
expenses. The cost will be reimbursed directly from the bond proceeds.
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AZUSA PUBLIC FINANCING AUTHORITY
PROFESSIONAL SERVICES(AGREEMENT
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1. PARTIES AND DATE.
This Agreement is made and entered into this 6th:day of October, 2003,by and between
the Azusa Public Financing Authority, a municipal organization organized under the laws of
the State of California with its principal place of business at 213 East Foothill Boulevard, Azusa,
California 91702-1395 ("Authority") and C.M. de Crinis& Co., Inc., a professional corporation
with its principal place of business at 11846 Ventura Blvd. Ste. 102, Studio City, CA 91604-
2620 ("Consultant"). Authority and Consultant are sometimes individually referred to as "Party"
and collectively as"Parties."
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2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain
professional services required by the Authority on the terms and conditions set forth in this
Agreement. Consultant represents that it is experienced in providing financial advisory services
to public clients, has all requiste licenses in the State of California, and is familiar with the plans
of Authority.
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2.2 Project.
Authority desires to engage Consultant to render such services for the refinancing of the
Authority's 1994 City Certificates of Participation issue and/or other bond issues ("Projects") as
set forth in this Agreement.
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3. TERMS.
3.1 Scope of Services and Term. i
3.1.1 General Scone of Services. Consultant promises and agrees to furnish to
the Authority all labor, materials, tools, equipment, services, and incidental and customary work
necessary to fully and adequately supply the professional financial advisory consulting services
necessary for the Project ("Services"). The Services are more particularly described in Exhibit
"A" attached hereto and incorporated herein by reference. All Services shall be subject to, and
performed in accordance with this Agreement, the exhibits attached hereto and incorporated
herein by reference, and all applicable local, state and federal laws,rules and regulations.
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3.1.2 Term. The term of this Agreement shall be from October 7th 2003 to
December 31, 2004, unless earlier terminated as provided herein, or extended by Authority Board
approval. Consultant shall complete the Services within the term of this Agreement, and shall
meet any other established schedules and deadlines.
3.2 Responsibilities of Consultant.
3.2.1 Control and Payment of Subordinates; Independent Contractor. The
Services shall be performed by Consultant or under its supervision. Consultant will determine
the means, methods and details of performing the Services subject to the requirements of this
Agreement. Authority retains Consultant on an independent contractor basis and not as an
employee. Consultant retains the right to perform similar or different services for others during
the term of this Agreement. Any additional personnel performing the Services under this
Agreement on behalf of Consultant shall also not be employees of Authority and shall at all times
be under Consultant's exclusive direction and control. Consultant shall pay all wages, salaries,
and other amounts due such personnel in connection with their performance of Services under
this Agreement and as required by law. Consultant shall be responsible for all reports and
obligations respecting such additional personnel, including,but not limited to: social security
taxes, income tax withholding, unemployment insurance, disability insurance, and workers'
compensation insurance.
3.2.2 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Schedule of
Services set forth in Exhibit "B" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to perform the
Services in conformance with such conditions. In order to facilitate Consultant's conformance
with the Schedule, Authority shall respond to Consultant's submittals in a timely manner. Upon
request of Authority, Consultant shall provide a more detailed schedule of anticipated
performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of Authority.
3.2.4 Substitution of Key Personnel. Consultant has represented to Authority
that certain key personnel will perform and coordinate the Services under this Agreement.
Should one or more of such personnel become unavailable, Consultant may substitute other
personnel of at least equal competence upon written,approval of Authority. In the event that
Authority and Consultant cannot agree as to the substitution of key personnel, Authority shall be
entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or
refuse to perform the Services in a manner acceptable to the Authority, or who are determined by
the Authority to be uncooperative, incompetent, a threat to the adequate or timely completion of
the Project or a threat to the safety of persons or property, shall be promptly removed from the
Project by the Consultant at the request of the Authority. The key personnel for performance of
RVPUBWGSl544364 2
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this Agreement are as follows: Michael Williams, Curt de Crinis and Cary Gordon.
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3.2.5 Authority's Representative. The Authority hereby designates Rick Cole,
or his designee, Michael Hennessey, to act as its representative for the performance of this
Agreement("Authority's Representative"). Authority's Representative shall have the power to
act on behalf of the Authority for all purposes under this Contract. Consultant shall not accept
direction or orders from any person other than the Authority's Representative or his or her
designee.
3.2.6 Consultant's Representative. Consultant hereby designates Michael
Williams, or his or her designee,to act as its representative for the performance of this
Agreement("Consultant's Representative"). Consultant':s Representative shall have full
authority to represent and act on behalf of the Consultant for all purposes under this Agreement.
The Consultant's Representative shall supervise and direct the Services, using his best skill and
attention, and shall be responsible for all means, method's, techniques, sequences and procedures
and for the satisfactory coordination of all portions of the Services under this Agreement.
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3.2.7 Coordination of Services. Consultant agrees to work closely with
Authority staff in the performance of Services and shall be available to Authority's staff,
consultants and other staff at all reasonable times.
3.2.8 Standard of Care,• Performance of Employees. Consultant shall perform
all Services under this Agreement in a skillful and competent manner, consistent with the
standards generally recognized as being employed by professionals in the same discipline in the
State of California. Consultant represents and maintains that it is skilled in the professional
calling necessary to perform the Services. Consultant warrants that all employees and
subcontractors shall have sufficient skill and experience'to perform the Services assigned to
them. Finally, Consultant represents that it, its employebs and subcontractors have all licenses,
permits, qualifications and approvals of whatever nature;that are legally required to perform the
Services, including a Authority Business License, and that such licenses and approvals shall be
maintained throughout the term of this Agreement. As provided for in the indemnification
provisions of this Agreement, Consultant shall perform, at its own cost and expense and without
reimbursement from the Authority, any services necessary to correct errors or omissions which
are caused by the Consultant's failure to comply with the standard of care provided for herein.
Any employee of the Consultant or its sub-consultants who is determined by the Authority to be
uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat
to the safety of persons or property, or any employee who fails or refuses to perform the Services
in a manner acceptable to the Authority, shall be promptly removed from the Project by the
Consultant and shall not be re-employed to perform any;of the Services or to work on the Project.
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RVPUBWGS�540360 3
3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance
with all local, state and federal laws, rules and regulations in any manner affecting the
performance of the Project or the Services, including all Cal/OSHA requirements, and shall give
all notices required by law. Consultant shall be liable for all violations of such laws and
regulations in connection with Services. If the Consultant performs any work knowing it to be
contrary to such laws, rules and regulations and without giving written notice to the Authority,
Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend,
indemnify and hold Authority, its officials, directors, officers, employees and agents free and
harmless,pursuant to the indemnification provisions of this Agreement, from any claim or
liability arising out of any failure or alleged failure to comply with such laws, rules or
regulations.
3.2.10 Insurance.
3.2.10.1 Time for Compliance. Consultant shall not commence
Work under this Agreement until it has provided evidence satisfactory to the Authority that it has
secured all insurance required under this section. In addition, Consultant shall not allow any
subcontractor to commence work on any subcontract until it has provided evidence satisfactory
to the Authority that the subcontractor has secured all insurance required under this section.
3.2.10.2 Minimum Requirements. Consultant shall, at its expense,
procure and maintain for the duration of the Agreement insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of
the Agreement by the Consultant, its agents, representatives, employees or subcontractors.
Consultant shall also require all of its subcontractors to procure and maintain the same insurance
for the duration of the Agreement. Such insurance shall meet at least the following minimum
levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 0001); (2)Automobile Liability:
Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto);
and(3) Workers' Compensation and Employer's Liability: Workers' Compensation insurance as
required by the State of California and Employer's Liability Insurance.
(B) Minimum Limits of Insurance. Consultant shall maintain
limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury,personal
injury and property damage. If Commercial General Liability Insurance or other form with
general aggregate limit is used, either the general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the required occurrence limit;
(2)Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3)
Workers'Compensation and Employer's Liability: Workers' Compensation limits as required by
the Labor Code of the State of California. Employer's Liability limits of$1,000,000 per accident
for bodily injury or disease.
RVPUBWGS'541364 4
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3.2.10.3 Professional Liability. Consultant shall procure and
maintain, and require its sub-consultants to procure and maintain, for a period of five (5) years
following completion of the Project, errors and omissions liability insurance appropriate to their
profession so long as it is commercially available at a reasonable cost. Such insurance shall be in
an amount not less than $1,000,000 per claim.
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3.2.10.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall protide endorsements on forms supplied or
approved by the Authority to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall be
endorsed to state that: (1) the Authority, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insured with respect to the Work or operations
performed by or on behalf of the Consultant, including materials, parts or equipment furnished in
connection with such work; and (2)the insurance coverage shall be primary insurance as respects
the Authority, its directors, officials, officers, employees; agents and volunteers, or if excess,
shall stand in an unbroken chain of coverage excess of the Consultant's scheduled underlying
coverage. Any insurance or self-insurance maintained by the Authority, its directors, officials,
officers, employees, agents and volunteers shall be excess of the Consultant's insurance and shall
not be called upon to contribute with it in any way.
(B) Automobile Liability. Any insurance or self-insurance
maintained by the Authority, its directors, officials, officers, employees, agents and volunteers
shall be excess of the Consultant's insurance and shall not be called upon to contribute with it in
any way.
(C) Workers' Compensation and Employers Liability Coverage.
The insurer shall agree to waive all rights of subrogation against the Authority, its directors,
officials, officers, employees, agents and volunteers for losses paid under the terms of the
insurance policy which arise from work performed by the Consultant.
(D) All Coverages. Each insurance policy, except automobile
and professional liability, required by this Agreement shall be endorsed to state that: (A)
coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days prior
written notice by certified mail, return receipt requested;has been given to the Authority; and (B)
any failure to comply with reporting or other provisions iof the policies, including breaches of
warranties, shall not affect coverage provided to the Authority, its directors, officials, officers,
employees, agents and volunteers.
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RVPUBWGSt544364 5
3.2.10.5 Separation of Insureds: No Snecial Limitations. All
insurance required by this Section, except automobile liability, shall contain standard separation
of insureds provisions. In addition, such insurance shall not contain any special limitations on
the scope of protection afforded to the Authority, its directors, officials, officers, employees,
agents, and volunteers.
3.2.10.6 Deductibles and Self-Insurance Retentions. Any
deductibles or self-insured retentions must be declared to and approved by the Authority.
3.2.10.7 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in
California, and satisfactory to the Authority.
3.2.10.8 Verification of Coverage. Consultant shall famish
Authority with original certificates.of insurance and endorsements effecting coverage required by
this Agreement on forms satisfactory to the Authority. The certificates and endorsements for
each insurance policy shall be signed by a person authorized by that insurer to bind coverage on
its behalf, and shall be on forms provided by the Authority if requested. All certificates and
endorsements must be received and approved by the Authority before work commences. The
Authority reserves the right to require complete, certified copies of all required insurance
policies, at any time.
3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid
injury or damage to any person or property. In carrying out its Services,the Consultant shall at
all times be in compliance with all applicable local, state and federal laws,rules and regulations,
and shall exercise all necessary precautions for the safety of employees appropriate to the nature
of the work and the conditions under which the work is to be performed. Safety precautions as
applicable shall include,but shall not be limited to: (A) adequate life protection and life saving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders,bridges, gang planks,
confined space procedures,trenching and shoring, equipment and other safety devices,
equipment and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and(C) adequate facilities for the proper inspection and maintenance of all safety
measures.
RVPUBNIGS544360 6
3.3 Fees and Payments.
3.3.1 Compensation. Consultant shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation
shall not exceed Forty five thousand dollars ($45,000) without written approval of Authority's
representative. Extra Work may be authorized, as described below, and if authorized,will be
compensated at the rates and manner set forth in this Agreement.
3.3.2 Pavment of Compensation. Consultant shall submit to Authority an
itemized statement which indicates work completed and out-of-pocket expenses incurred by
Consultant at the closing of each transaction. The statement shall describe the Services and out-
of-pocket expenses provided since the initial commencement date, on a project by project basis.
Authority shall,within 45 days of receiving such statement, review the statement and pay all
approved charges thereon.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any
expenses unless authorized in writing by Authority.
3.3.4 Extra Work. At any time during the term of this Agreement, Authority
may request that Consultant perform Extra Work. As used herein, "Extra Work" means any
work which is determined by Authority to be necessary for the proper completion of the Project,
but which the parties did not reasonably anticipate would be necessary at the execution of this
Agreement. Consultant shall not perform,nor be compensated for, Extra Work without written
authorization from Authority's Representative.
3.4 Accounting Records.
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3.4.1 Maintenance and Inspection. Consultant shall maintain complete and
accurate records with respect to all costs and expenses incurred under this Agreement. All such
records shall be clearly identifiable. Consultant shall allow a representative of Authority during
normal business hours to examine, audit, and make transcripts or copies of such records and any
other documents created pursuant to this Agreement. Consultant shall allow inspection of all
work, data, documents, proceedings, and activities related to the Agreement for a period of three
(3) years from the date of final payment under this Agreement.
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3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Grounds for Termination. Authority may,by written notice to
Consultant, terminate the whole or any part of this Agreement at any time and without cause by
giving written notice to Consultant of such termination, and specifying the effective date thereof,
at least seven (7) days before the effective date of such termination. Upon termination,
Consultant shall be compensated only for those services which have been adequately rendered to
Authority, and Consultant shall be entitled to no further compensation. Consultant may not
terminate this Agreement except for cause.
3.5.1.2 Effect of Termination. If this Agreement is terminated as provided
herein, Authority may require Consultant to provide all finished or unfinished Documents and
Data and other information of any kind prepared by Consultant in connection with the
performance of Services under this Agreement. Consultant shall be required to provide such
document and other information within fifteen(15) days of the request.
3.5.1.3 Additional Services. In the event this Agreement is terminated in
whole or in part as provided herein, Authority may procure, upon such terms and in such manner
as it may determine appropriate, services similar to those terminated.
3.5.2 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such other
address as the respective parties may provide in writing for this purpose:
Consultant:
Michael Williams
C.M. de Crinis & Co., Inc.
11846 Ventura Blvd. Ste. 102
Studio City, CA 91604
Authority:
Azusa Public Financing Authority
213 East Foothill Blvd.
Azusa, CA 91702-1295
Attn.: Michael Hennessey
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Such notice shall be deemed made when personally delivered or when mailed, forty-eight
(48)hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at
its applicable address. Actual notice shall be deemed adequate notice on the date actual notice
occurred, regardless of the method of service.
3.5.3 Ownership of Materials and Confidentiality.
3.5.3.1 Documents &Data• Licensing of Intellectual Property. This
Agreement creates a non-exclusive and perpetual license for Authority to copy,use,modify,
reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in
plans, specifications, studies, drawings, estimates, and other documents or works of authorship
fixed in any tangible medium of expression, including but not limited to,physical drawings or
data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to
be prepared by Consultant under this Agreement("Documents &Data'). Consultant shall
require all subcontractors to agree in writing that Authority is granted a non-exclusive and
perpetual license for any Documents &Data the subcontractor prepares under this Agreement.
Consultant represents and warrants that Consultant has the legal right to license any and all
Documents &Data. Consultant makes no such representation and warranty in regard to
Documents &Data which were prepared by design professionals other than Consultant or
provided to Consultant by the Authority. Authority shall not be limited in any way in its use of
the Documents and Data at any time, provided that any such use not within the purposes intended
by this Agreement shall be at Authority's sole risk.
3.5.3.2 Confidentiality. All ideas;memoranda, specifications,plans,
procedures, drawings, descriptions, computer program data, input record data,written
information, and other Documents and Data either created by or provided to Consultant in
connection with the performance of this Agreement shall be held confidential by Consultant.
Such materials shall not,without the prior written consent of Authority,be used by Consultant
for any purposes other than the performance of the Services. Nor shall such materials be
disclosed to any person or entity not connected with thelperformance of the Services or the
Project. Nothing furnished to Consultant,which is otherwise known to Consultant or is generally
known, or has become known, to the related industry shall be deemed confidential. Consultant
shall not use Authority's name or insignia,photographs of the Project, or any publicity pertaining
to the Services or the Project in any magazine, trade paper, newspaper, television or radio
production or other similar medium without the prior written consent of Authority.
3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional documents as mayy be necessary,
appropriate or convenient to attain the purposes of this Agreement.
3.5.5 Attorney's Fees. If either party commences an action against the other
party, either legal, administrative or otherwise, arising out of or in connection with this
Agreement, the prevailing party in such litigation shall be entitled to have and recover from the
RVPUB\NGS\544364 9 ,
losing party reasonable attorney's fees and all other costs of such action.
3.5.6 Indemnification. Financial Consultant agrees to indemnify (upon request by Authority)
Authority,its officers,agents,volunteers,employees and attorneys[IDEMNITTEES]against,
and will hold and save them and each of them harmless from, and all actions,claims damages
to persons or property,penalties obligations or liabilities that maybe asserted or claimed by any
person,firm,entity,corporation,political subdivision or other organization arising out willful
misconduct,errors or omissions ofFinancial Consultant,its agents,employees,subcontractors
or invitees,including each person or entity responsible for the provision of services hereunder
save actions arising from Authority's or agents and consultants active negligence in performing
their duties hereunder.
3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by
both parties.
3.5.8 Governing Law. This Agreement shall be governed by the laws of the
State of California. Venue shall be in Los Angeles County.
3.5.9 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.5.10 Authority's Right to Employ Other Consultants. Authority reserves right
to employ other consultants in connection with this Project.
3.5.11 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties.
3.5.12 Assignment or Transfer. Consultant shall not assign,hypothecate, or
transfer, either directly or by operation of law, this Agreement or any
interest herein without the prior written consent of the Authority. Any
attempt to do so shall be null and void, and any assignees, hypothecates or
transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
3.5.13 Construction; References; Captions. Since the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be
construed simply, according to its fair meaning, and not strictly for or against any Party. Any
term referencing time, days or period for performance shall be deemed calendar days and not
work days. All references to Consultant include all personnel, employees, agents, and
subcontractors of Consultant, except as otherwise specified in this Agreement. All references to
Authority include its elected officials, officers, employees, agents, and volunteers except as
RVPUB\NGS'544364 10
otherwise specified in this Agreement. The captions of the various articles and paragraphs are
for convenience and ease of reference only, and do not define, limit, augment, or describe the
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scope, content, or intent of this Agreement.
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3.5.14 Amendment; Modification. No supplement, modification, or amendment
of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.15 Waiver. No waiver of any default I shall constitute a waiver of any other
default or breach, whether of the same or other covenantor condition. No waiver,benefit,
privilege, or service voluntarily given or performed by a Party shall give the other Party any
contractual rights by custom, estoppel, or otherwise.
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3.5.16 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.5.17 Invalidity; Severability. If any poition of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court oficompetent jurisdiction, the remaining
provisions shall continue in full force and effect.
3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not
paid nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Consultant, any fee, commission,percentage,brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. For breach or
violation of this warranty, Authority shall have the right1to rescind this Agreement without
liability. For the term of this Agreement, no member, officer or employee of Authority, during
the term of his or her service with Authority, shall have'any direct interest in this Agreement, or
obtain any present or anticipated material benefit arising therefrom.
3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee or
applicant for employment because of race, religion, color, national origin,handicap, ancestry, sex
or age. Such non-discrimination shall include,but not be limited to, all activities related to
initial employment, upgrading, demotion,transfer, recruitment or recruitment advertising, layoff
or termination. Consultant shall also comply with all relevant provisions of Authority's Minority
Business Enterprise program, Affirmative Action Plan or other related programs or guidelines
currently in effect or hereinafter enacted.
3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it
is aware of the provisions of Section 3700 of the California Labor Code which require every
employer to be insured against liability for Worker's Compensation or to undertake self-insurance
in accordance with the provisions of that Code, and agrees to comply with such provisions before
commencing the performance of the Services.
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3.5.21 Authority to Enter Agreement. Consultant has all requisite power and
authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party
warrants that the individuals who have signed this Agreement have the legal power, right, and
authority to make this Agreement and bind each respective Party.
3.5.22 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.6 Subcontracting.
3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of
the work required by this Agreement, except as expressly stated herein, without prior written
approval of Authority. Subcontracts, if any, shall contain a provision making them subject to all
provisions stipulated in this Agreement.
AZUSA PUBLIC FINANCING AUTHORITY C.M. de Crinis & Co., Inc.
By: By:
Rick Cole Michael Williams
Executive Director Sr. Vice President
Attest:
City Clerk
Approved as to Form:
Best Best &Krieger LLP
City Attorney
RVPUBVNGSl544364 12
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EXIIIBIT °A"
SCOPE OF SERVICES
Financial Consultant agrees to perform the following iservices in a competent and
professional manner to the satisfaction of the Authority.
A. The Consultant agrees to assist the Client in developing a Plan of Finance for the issuance of
refunding certificates of participation.
B. Assist the Authority in the selection of professionals as necessary, to complete the Plan of
Finance including underwriter,bond counsel and jdisclosure counsel if requested.
C. Financial Consultant agrees to assist the Client and,in the case of anegotiated sale ofbonds,
the selected managing underwriter in the coordination and management of the
implementation of the Plan of Finance and the financing process. This will include attending
meeting as necessary and the completion of analysis and reports.
D. Make necessary presentations to the staff, Authority Boards, and Council in the review and
approval of the financing.
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E. Work cooperatively with the other consultants to;insure that the Authority's financial goals
are accomplished in a timely manner.
F. Review and comment on all financing documents and make recommendations regarding
structure, covenants, terms, and other conditions necessary to insure marketability of the
Bonds and to assure the Authority's financing objectives are achieved. The Consultant will
also review and make recommendations related to the Authority's Continuing Disclosure
obligation.
G. Recommend the establishment of funds and accounts and provisions for investment of funds.
H. The Financial Consultant agrees to assist the Client's Disclosure Counsel in the preparation
and distribution of an Official Statement,which will form the basis of the Bond offering and
which will contain comprehensive information with respect to the Bonds, the Client, the
project, the legal documents and other pertinent information.
I. Assist in the preparation of presentations to Moody's Investors Service and Standard and
Poor's Corporation, if applicable, to obtain ratings for bonds. Assist in the negotiations of
the terms and conditions required by those ratings agencies and discuss the impacts on future
financings with Authority staff.
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J. Assist in the preparation of presentations to municipal bond insurers, if applicable, for
possible credit enhancement for the bonds. Assist the Authority in evaluating various
insurance bid proposals and covenants. Assist in the negotiations of the terms and conditions
required by those insurers.
K. The Consultant will review the marketing plan proposed by the underwriter, in the case of
a negotiated sale, including marketing to retail investors, formation of a selling group,
timing of the Authority's bond sale and other bond issues the underwriter may be
involved in at the time of the sale.
L. The consultant will review with the Authority the bond pricing proposed by the
underwriter, in the case of a negotiated sale, including call features, selling bonds at
premiums or discounts, the use of serial and one or more term bonds and the cost or
benefits to the Authority.
M. In the case of a negotiated sale,the Consultant will provide accurate and timely information
to the Client on market conditions on the day of pricing. The Consultant will review the
results of the underwriters' sales effort and assist the Client in negotiating the terms of the
Bond Purchase Agreement.
N. Consultant will review the Clients options with regard to defeasance securities and
recommend the timing and method of acquisition and expected savings target.
O. The consultant will review and comment on the final legal documents and review and
comment on the final official statement.
P. The Consultant will coordinate the closing of the transaction including the signing of
documents,the receipt of the sales proceeds for the bonds,the payment of the bond insurance
premium,the payment of cost of issuance and depositing the moneys in the various funds and
accounts with the trustee.
Q. The consultant will assist the Authority with the investment of the Debt Service Reserve and
the other Funds.
R. The Consultant will provide the Client with a final distribution list,bond record,which shall
include details regarding the Bonds and their sale,a final debt service schedule and a list of
the bond CUS1P numbers.
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S. The Consultant will be available after the bond closing to answer questions of Authority staff
regarding the results of the bond underwriting.
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EXHIBIT "B"
COMPENSATION
1. If the bonds are sold on a negotiated basis, our fee would not exceed $45,000 plus
out of pocket expenses not to exceed 5%excluding out of state travel.If this issue is
combined in a single issuance with two Series of Bonds, combined Redevelopment
Tax Allocations Bonds and Refunding Certificates of Participation, sold on a
negotiated basis,our fee would be$40,000 per Series plus out ofpocket expenses not
to exceed 5% excluding out of state travel.
2. The consultant will agree to work on an hourly non-contingent fee basis at its' current
hourly rate of$215 - $265.
3. Extra work requested by the Authority not included in the scope of services will be
discussed with the Authority representative and approved prior to commencement.
The Consultant will bill the Authority at its normal hourly billing rate, for hourly
work at its' current rate of$215 - $265.
Out of pocket expenses would include,telephone,Federal Express,postage,copy,production
of material for rating and insurance presentations,required Authority business license,travel
and lodging as required.
RVPUBWGS1544364 1
9
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA
APPROVING AND ADOPTING THE EIGHTH AMENDMENT TO THE
REDEVELOPMENT PLAN FOR THE CENTRAL BUSINESS DISTRICT
REDEVELOPMENT PROJECT AREA AND THE THEIR AMENDMENT TO THE
REDEVELOPMENT PLAN FOR THE WEST END REDEVELOPMENT PROJECT
AREA
WHEREAS, the City Council of the City of Azusa ("City") approved and adopted a redevelopment
plan for the Central Business District Redevelopment Project Area ("CBD Project Area") on September 18,
1978, by Ordinance No. 2062; and approved and adopted a separate redevelopment plan for the West End
Redevelopment Project Area("West End Project Area") on November 7, 1988, by Ordinance No. 2382; and
WHEREAS, on November 7, 1988, by Ordinance No. 2382, the City Council adopted the sixth
amendment to the redevelopment plan for the CBD Project Area and the first amendment to the West End
Project Area which, among other things,merged the CBD Project Area with the West End Project Area creating
one merged project area("Merged Project Area"); and
WHEREAS, the Redevelopment Agency of the City ("Agency") has proposed and prepared an eighth
amendment to the redevelopment plan for the CBD Project Area and a third amendment to the West End Project
Area (together "Amendments") which, among other things, (i) add territory to the Merged Project Area ("Added
Territory"); (ii)reinstate the Agency's right to use eminent domain within certain non-residential portions of the
Merged Project Area; (iii) redefine the method by which the tax increment limit is calculated and measured for
the Merged Project Area; (iv) combine the bond indebtedness limits of the Merged Project Area and the Added
Territory; (v) replace the separate redevelopment plans for the CBD Project Area and the West End Project
Area with one amended and restated redevelopment plan ("Amended and Restated Redevelopment Plan")
applicable to the Merged Project Area; and
WHEREAS, the Added Territory includes property which is located in an unincorporated area of Los
Angeles County, and such inclusion of noncontiguous property within the Merged Project Area has been
approved by Ordinance No. 2001-0006 of Los Angeles County, as permitted by CRL Section 33210 et seq; and
WHEREAS, the City Council has received from the Agency the proposed Amendments, as approved
and recommended by the Agency, copies of which are on file at the office of the City Clerk, 213 East Foothill
Boulevard, Azusa, California, and at the office of the Agency at the same address, together with the report of
the Agency to the City Council on the Amendments ("Report"); and
WHEREAS, the City has also received the Report which includes: (i) the reasons for selection of the
Added Territory; (ii) a description of the physical and economic conditions in the Added Territory and the
Merged Project Area; (iii) a description of the Added Territory and the Merged Project Area that is sufficiently
detailed to determine whether the Added Territory and the Merged Project Area are predominantly urbanized;
(iv) a description of specific projects proposed by the Agency in the Added Territory and the Merged Project
Area and an explanation as to how the proposed projects will improve or alleviate the blight conditions existing
in the Added Territory and the Merged Project Area; (v)the proposed method of financing redevelopment of the
Added Territory and the Merged Project Area, including an assessment of the economic feasibility and an
explanation of why elimination of blight and redevelopment of the Added Territory and the Merged Project
Area cannot be accomplished by private enterprise acting alone or by the City Council's use of financing
alternatives other than tax increment financing; (vi) a plan for the relocation of families and persons who may
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be temporarily or permanently displaced from housing as a result of the Amendments; (vii) an analysis of the
preliminary plan ("Preliminary Plan") for the Merged Project Area; (viii) a report and recommendations of the
planning commission of the City ("Planning Commission"); (ix)the final environmental impact report ("Final
EIR"); (x) a record of the consultations with taxing entities; and (xi) an implementation plan ("Implementation
Plan"); and !
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WHERAS,the Planning Commission has submitted to the City Council its report and recommendations
concerning the approval of the Amendments and its certificatidn that the Amendments conform to the General
Plan of the City; and
WHEREAS, the Agency prepared and circulated a draft environmental impact report("Draft EIR") in
accordance with the California Environmental Quality Act (Public Resources Code Section 21000 of seq.) and
the State Guidelines (14 Cal. Code Regs. Sections 15000 et seq.) (collectively "CEQA"), which analyzed the
impact of the Amendments,and was available for comments during a forty five(45) day review period; and
WHEREAS, the Agency has,by resolution adopted on Septembe 15, 2003, certified that the Final EIR
has been completed in compliance with CEQA, and local guidelines; and adopted a mitigation monitoring
program,made findings, and declared the statement of overriding considerations; and
WHEREAS, the City Council reviewed and considered the Final EIR for the Amendments, prepared
and submitted pursuant to CEQA and CRL Section 33352,1 and confirmed and ratified the Final EIR on
September 15,2003,by Resolution No._; and
WHEREAS, the Agency has consulted with and obtained the advice of owners, residents, community
organizations and others regarding the proposed Amendments, and property owners, residents, community
organizations and others were given the opportunity to review the proposed Amendments at community
information meetings held on May 13 and May 23, 2003, and j
WHEREAS, the City Council and the Agency held a joint public hearing on June 30, 2003, on
adoption of the Amendments, after which the joint public meeting was continued to July 7, 2003 and continued
again to September 2, 2003 in the City Council Chambers, 213 East Foothill Boulevard,Azusa,California; and
WHEREAS, notice of said hearing was duly and regularly published in the San Gabriel Valley
Tribune, a newspaper of general circulation in the City of Aiusa, once a week for four (4) successive weeks
prior to the date of said hearing, and a copy of said notice and an affidavit of publication are on file with the
City Clerk and the Agency; and
WHEREAS, copies of the notice of joint public hearing were mailed by first-class mail to the last
known address of each assessee as shown on the last equalized.assessment roll of the County of Los Angeles for
each parcel of land in the Merged Project Area and Added Territory, and to residents, businesses, and other
occupants in the Merged Project Area and the Added Territory; and
WHEREAS, copies of the notice of joint public hearing were mailed by certified mail with return
receipt requested to the governing body of each taxing agency which receives taxes from property in the Merged
Project Area and the Added Territory; and
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WHEREAS, the City Council has provided an opportunity for all persons to be heard, received and
considered all evidence and testimony presented for or against any and all aspects of the Amendments and the
Final EIR and adopted written findings in response to each written objection to the Amendments from an affect
taxing entity or property owner; and
WHEREAS, the City Council has considered the report and recommendation of the Planning
Commission, the Agency's Report to City Council, the Amendments and their economic feasibility, and the
Final EIR, has provided an opportunity for all persons to be heard, has received and considered all evidence and
testimony presented for or against any and all aspects of the Amendments, and has made written findings in
response to each written objection of an affected property owner and taxing entity; and
WHEREAS,all actions required by law have been taken by all appropriate public bodies.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF AZUSA
AS FOLLOWS:
Section 1. The principal purpose and intent of the City Council with respect to the Merged
Project Area continues to be to eliminate remaining blight and complete all public-assisted redevelopment
activities as quickly as possible consistent with the needs of the constituent projects in the Merged Project Area
and the availability of financial resources to fund them. Additional goals and objectives for the Merged Project
Area, including the Added Territory, are to: (i) develop long-range plans to promote compatible land uses,
establish design standards, and construct essential public improvements; (ii) address the presence of physically
obsolete and unsafe buildings; (iii) develop Agency-owned sites and assemble other key sites; (iv) improve the
business climate in the Central Business District area of the City and increase occupancy rates, rents and
property values; and(v)construct housing to increase commercial demand.
Section 2. The City Council hereby determines that the Amendments submitted by the Agency
are necessary and desirable.
Section 3. The Added Territory to be added to the Merged Project Area by the Amendments is
shown in Exhibit "A," (Map of Added Territory), and are described in Exhibit "B," (Legal Descriptions of
Added Territory), attached to the Amendments.
Section 4. The City Council hereby finds and determines, based on the evidence in the record,
including but not limited to, the Agency's Report to the City Council, and all documents referenced therein, and
evidence and testimony received at the joint public hearing on adoption of the Amendments held on June 30,
2003, and continued to July 8,2003 and continued again to September 2, 2003, that:
a) The Merged Project Area was found and determined to be a blighted area in
Ordinance No. 2062 adopted by the City Council. Based on substantial evidence contained in the Report to City
Council, the Added Territory is also a blighted area. The redevelopment of the Added Territory is necessary to
effectuate the public purposes declared in CRL.
b) The combined blight conditions cited above are so prevalent and so substantial that
it causes a reduction of, or lack, of proper utilization of the area to such an extent that it constitutes a serious
physical and economic burden on the community which cannot reasonably be expected to be reversed or
alleviated by private enterprise or governmental action, or both, without redevelopment, requiring the use of
redevelopment in the interest of the health, safety and general welfare of the people of the City and the State of
California.
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c) Adoption of the Amendments grid carrying out the Amended and Restated
Redevelopment Plan will assist in the continued redevelopment of the Merged Project Area in conformity with
CRL and in the interests of the public peace,health, safety and welfare.
d) The adoption and carrying out of the Amendments is economically sound and
feasible.
e) The Amendments conform to the General Plan of the City, including,but not limited
to, the housing element which substantially complies with the Irequirements of Article 10.6 (commencing with
Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code.
f) Adoption and carrying out of the Amendments will promote the public peace,health,
safety and welfare of the City and will effectuate the purposes and policies of CRL.
g) The condemnation of certain non-iesidential real property in the Merged Project
Area, including the Added Territory, is necessary to the execution of the Amended and Restated Redevelopment
Plan, and adequate provisions have been made for the payment for property to be acquired as provided by law.
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h) The Agency has a feasible method and plan for the relocation of families and
persons who might be displaced, temporarily or permanently from housing facilities in the Merged Project Area,
including the Added Territory. The Agency also has a feasible method and plan for the relocation of
businesses.
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i) There are, or shall be provided,within the Merged Project Area, including the Added
Territory, or within other areas not generally less desirable, with regard to public utilities and public and
commercial facilities and at rents or prices within the financial:means of the families and persons who might be
displaced from the Merged Project Area, including the Added Territory, decent, safe and sanitary dwellings
equal in number to the number of and available to such displaced families and persons and reasonably
accessible to their places of employment.
Families and persons shall noYbe displaced prior to the adoption of a relocation
plan pursuant to CRL Sections 33411 and 33411.1. Dwelling units housing persons and families of low or
moderate income shall not be removed or destroyed prior to the adoption of a replacement housing plan
pursuant to CRL Sections 33334.5, 33413, and 33413.5.
j) The elimination of blight and the redevelopment of the Merged Project Area and the
Added Territory could not reasonably be expected to be accomplished by private enterprise acting alone without
the aid and assistance of the Agency.
k) The time limitations applicable to the Merged Project Area and the Added Territory
are reasonably related to the proposed projects to be implemdnted in the Merged Project Area and the Added
Territory and to the ability of the Agency to eliminate blight within the Merged Project Area and Added
Territory.
1) All noncontiguous areas of the Merged Project Area and the Added Territory are
either blighted or necessary for effective redevelopment and are not included for the purpose of obtaining the
allocation of taxes from the area pursuant to CRL Section 33670 without other substantial justification for their
inclusion.
m) Each of the areas comprising the Added Territory are an urbanized area, as defined
by CRL Section 33201(b).
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n) Inclusion of any land, buildings or improvements which are not detrimental to the
public health, safety, or welfare is necessary for the effective redevelopment of the area of which they are a part;
any area included is necessary for redevelopment and is not included for the purpose of obtaining the allocation
of tax increment revenues from the area pursuant to CRL Section 33670 without other substantial justification
for its inclusion.
Section 5. The City Council is satisfied that permanent housing facilities will be available
within three (3) years from the time residential occupants of the Merged Project Area, including the Added
Territory, are displaced, if any, and that pending the development of such facilities, there will be available to
any such displaced residential occupants temporary housing facilities at rents comparable to those in the City at
the time of their displacement. No persons or families of low and moderate income shall be displaced from
residences unless and until there is a suitable housing unit available and ready for occupancy by such displaced
persons or families at rents comparable to those at the time of their displacement. Such housing units shall be
suitable to the needs of such displaced persons or families and must be decent, safe, sanitary and otherwise
standard dwellings.
Section 6. The Amendments, including the Amended and Restated Redevelopment Plan is
incorporated herein by this reference and made a part hereof as if fully set forth herein. The Amendments are
hereby approved and adopted. Ordinance Nos. 2062, 2077, 2113, 2196, 2197, 2249, 2250, 2382, 90-018, and
94-020 and the redevelopment plans adopted and amended pursuant thereto for the CBD Project Area and the
West End Project Area are hereby amended by the Amendments so that the redevelopment plan for the CBD
Project Area and the redevelopment plan for the West End Project Area is replaced by the Amended and
Restated Redevelopment Plan. By this action, the Amended and Restated Redevelopment Plan is hereby
designated as the official Redevelopment Plan for the Merged Project Area.
Section 7. All written and oral objections to the adoption of the Amendments have been
considered, and all written objections received from Merged Project Area, including the Added Territory,
property owners and affected taxing agencies prior to or at the joint public hearing have been responded to in
writing and have been overruled, as evidenced by Resolution No. adopted by the City Council on
September 15, 2003.
Section 8. In order to implement and facilitate the effectuation of the Amendments, hereby
approved, this City Council hereby: (a) pledges its cooperation in helping to carry out the Amended and
Restated Redevelopment Plan, (b) requests the various officials, departments, boards, and agencies of the City
having administrative responsibilities in the Merged Project Area likewise to cooperate to such end and to
exercise their respective functions and powers in a manner consistent with redevelopment of the Merged Project
Area, (c) stands ready to consider and take appropriate action upon proposals and measures designed to
effectuate the Amendments, and (d) declares its intention to undertake and complete any proceeding, including
the expenditure of monies, necessary to be carried out by the City under the provisions of the Amended and
Restated Redevelopment Plan.
Section 9. The City Clerk is hereby directed to send a certified copy of this Ordinance to the
Agency, whereupon the Agency is vested with the responsibility for carrying out the Amended and Restated
Redevelopment Plan.
Section 10. The City Clerk is hereby directed to record with the County Recorder of Los
Angeles County a description of the land within the Added Territory and a statement that proceedings for the
redevelopment of the Merged Project Area, including the Added Territory,previously instituted under CRL, are
continuing pursuant to the Amendments.
Section 11. The City Building Department is hereby directed for a period of two (2)years after
the effective date of this Ordinance to advise all applicants for building permits within the Merged Project Area,
including the Added Territory, that the site for which a building permit is sought for the construction of
buildings or for other improvements is within a redevelopment project.
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Section 12. The City Clerk is hereby directed to transmit a copy of the description and
statement recorded pursuant to Section 10 of this Ordinance', a copy of this Ordinance, and a map or plat
indicating the boundaries of the Added Territory, to the Auditor-Controller and Assessor of the County of Los
Angeles, to the governing body of each of the taxing agencies which receives taxes from property in the Merged
Project Area, including the Added Territory, and to the State;Board of Equalization, no later than thirty (30)
days following the adoption of this Ordinance.
Section 13. The City Clerk is hereby ordered and directed to certify the passage of this
Ordinance and to cause the same to be published in the San :Gabriel Valley Tribune, a newspaper of general
circulation,published and circulated in the City.
Section 14. If any part of this Ordinance or the Amendments which it approves is held to be
invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance or of
the Amendments, and this City Council hereby declares that it would have passed the remainder of the
Ordinance or approved the remainder of the Amendments if such invalid portion thereof had been deleted.
Section 15. This Ordinance shall be in full force and effect thirty(30)days after passage.
[Signatures and Certification on I Following Pages]
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PASSED,APPROVED AND ADOPTED this day of September,2003.
By:
Mayor
City of Azusa
CERTIFICATION
I, Vera Mendoza, City Clerk of the, City of Azusa, and Secretary of the
Redevelopment Agency of the City of Azusa, do hereby certify that the foregoing joint Resolution No.
was duly adopted by the City Council of the City of Azusa and the Redevelopment Agency of the
City of Azusa at a regular meeting thereof, held on the day of 2003 by the
following vote,to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS:
Vera Mendoza Secretary
City Clerk Redevelopment Agency of the City of Azusa
APPROVED AS TO FORM:
BEST BEST&KRIEGER LLP
By:
City Attorney
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