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Agenda Packet - May 07, 2012 - CC
AGENDA REGULAR MEETING OF THE CITY COUNCIL AZUSA AUDITORIUM 213 EAST FOOTHILL BOULEVARD AZUSA CITY COUNCIL JOSEPH R. ROCHA MAYOR KEITH HANKS COUNCILMEMBER URIEL E. MACIAS COUNCILMEMBER 6:30 P.M. CEREMONIAL MONDAY, MAY 7, 2012 6:30 P.M. Ceremonial Closed Session 7:30 P.M. Regular Meeting ANGEL CARRILLO MAYOR PRO -TEM ROBERT GONZALES COUNCILMEMBER Presentation of proclamation to Lizette Salas who has competed in the Woman's CIF Golf, the U.S. Woman's Amateur Golf Tournament, the RR Donnelley LPGA Founders Cup in Phoenix, and most recently, she qualified for the LPGA Tour for which she competed with nine -woman players for the final tour spot. Certificate of recognition to Nancy Gibson, who received "Woman of the Year" award from Congresswoman Judy Chu, and presentation of proclamation to Nancy Gibson as an outgoing Human Relations Commissioner. CLOSED SESSION NOTICE TO THE PUBLIC FOR CLOSED SESSION Prior to going into closed session the City Council will convene in the Auditorium serving as Council Chambers to take public comment on the closed session items only. General public comment will be provided for during the regular portion of the meeting beginning at 7:30 P.M 05/07/12 Gov. Code Sec. 54957.6 — CONFERENCE WITH LABOR NEGOTIATOR City Negotiators: City Manager Makshanoff Organizations: ACEA (Azusa City Employees Association), AMMA (Azusa Middle Management Association), SEIU (Service Employees International Union), APMA (Azusa Police Management Association), CAPP (Civilian Association of Police Personnel), APOA (Azusa Police Officers Association) and IBEW (International Brotherhood of Electrical Workers. 2. Gov. Code Sec. 54956.9 (e) -CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION. 1 Potential Case 3. Gov. Code Sec. 54956.8 - REAL PROPERTY NEGOTIATIONS Agency: City of Azusa City Negotiators: City Manager Makshanoff Negotiating With: Azusa Chamber of Commerce Under Negotiation: Price and Terms for License Agreement. W C 1Z*Mh Address: 152 E. Foothill Boulevard, Azusa, CA 91702 Address: 100 E. Foothill Boulevard, Azusa, CA 91702 Address: 614 — 640 N. Azusa Avenue, Azusa, CA 91702 Address: APN 8611-003- 921 NOTICE TO THE PUBLIC FOR REGULAR MEETING Copies of staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection at the City Library and Police Department Lobby. Persons who wish to speak during the Public Participation portion of the Agenda or on a Public Hearing item, shall fill out a card requesting to speak and shall submit it to the City Clerk prior to the start of the City Council meeting. Cards submitted after 7:30P.M will not be accepted. 7:30 P.M. - REGULAR MEETING OF THE CITY COUNCIL 1. Call to Order 2. Pledge to the Flag 3. Invocation — Pastor Rubin Mora of Church of the Nazarene A. PUBLIC PARTICIPATION This time has been set aside for persons in the audience to make public comments on items within the subject matter jurisdiction of the council/agency board that are not listed on this agenda or are listed on this agenda as an item other than a public hearing item. Members of the audience will have the opportunity to address the city council about public hearing items at the time the public hearing is held. Under the provisions of the Brown Act, the council is prohibited from taking action on oral requests, but may refer the matter to staff or to a subsequent meeting. Each person or representative of a group shall be allowed to speak without interruption for up to five (5) continuous minutes, subject to compliance with applicable meeting rules. Questions 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. 05/07/12 - 2 - B. REPORTS, UPDATES, AND ANNOUNCEMENTS FROM STAFF/COUNCIL 1. Chief Executive Officer Habib F. Balian of Metro Gold Line Foothill Extension Construction Authority to provide an update on the Gold Line. 2. Mayor Rocha a. Request for proclamation in honor of the 901h Birthday of Louie Miranda. b. Request for proclamation in honor of outgoing Azusa Unified School District Superintendent Cynthia Cervantes Mcguire. c. Request for recognition plaques for Father Gustavo Castillo and Reverend Aloysius Ezeonyeka who will be leaving Saint Frances of Rome Church in June. d. Request for proclamation in honor of the 60`h Anniversary of the Knights of Columbus. e. Request for certifications of recognition for the Relay for Life Committee Members. 3. Councilmember Macias a. Request for proclamation for Father Gustavo Castillo in honor of his service to the City of Azusa. C. SCHEDULED ITEMS 1. PUBLIC HEARING TO APPROVE WATER UTILITY BUDGET AMENDMENT IN AMOUNT OF $2.4 MILLION TO EFFECT COST SAVINGS THROUGH DEBT REFUNDING PLAN. RECOMMENDED ACTION: Open public hearing to consider comments on proposed budget amendment and then close public hearing and adopt Resolution No. 12-C26 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING AMENDMENT TO WATER UTILITY BUDGET IN AMOUNT OF $2.4 MILLION FOR FISCAL YEAR 2011-2012 PURSUANT TO SECTION 2-450 OF THE AZUSA MUNICIPAL CODE. 2. AMENDED AND RESTATED AGREEMENT FOR CITY ATTORNEY SERVICES BETWEEN THE. CITY OF AZUSA AND BEST, BEST AND KRIEGER, LLP. RECOMMENDED ACTION: Approve the amended and restated agreement for City Attorney services between the City of Azusa and Best, Best, and Krieger, LLP. 05/07/12 -3 - . D. CONSENT CALENDAR The Consent Calendar adopting the printed recommended actions will be enacted with one vote. If Councilmembers or Staff wish to address any item on the Consent Calendar individually, it will be considered under SPECL4L CALL ITEMS. RECOMMENDED ACTION: Approve Minutes as written. 2. HUMAN RESOURCES ACTION ITEMS. RECOMMENDED ACTION: Approve Personnel Action Requests in accordance with the City of Azusa Civil Service Rules and applicable Memorandum of Understanding(s). 3. REQUEST FOR PROPOSAL FOR ON SITE COOKING AT THE AZUSA SENIOR CENTER FOR SENIOR MEAL PROGRAM. RECOMMENDED ACTION: Approve the Request for Proposal for on site cooking at the Azusa Senior Center for the Senior Meal Program, allowing implementation of the open bid procedure as required by the Los Angeles County Area on Aging to secure senior meals for Fiscal Year 2012 - 2016. 4. POST -ISSUANCE COMPLIANCE POLICY FOR BOND ISSUES. RECOMMENDED ACTION: Adopt Resolution No. 12-C27, approving and adopting the post -issuance compliance policy for bond issues in accordance with the recommendation of the Internal Revenue Service. 5. CITY TREASURER'S REPORT AS OF MARCH 31, 2012. RECOMMENDED ACTION: Receive and file the Report. 6. LEGISLATIVE UPDATE. RECOMMENDED ACTION: Approve the positions recommended on the legislation listed in the report. 05/07/12 - 4 - 7. AMGEN TOUR OF CALIFORNIA REIMBURSEMENT AGREEMENT RECOMMENDED ACTION: Approve the attached Reimbursement Agreement for the 2012 Tour of California, Stage 7. 8. WARRANTS. RESOLUTION AUTHORIZING PAYMENT OF WARRANTS BY THE CITY. RECOMMENDED ACTION: Adopt Resolution No. 12-C28. E. SUCCESSOR AGENCY RELATED BUSINESS 1. FORMER REDEVELOPMENT AGENCY TREASURER'S REPORT AS OF MARCH 31.2012. RECOMMENDED ACTION: Receive and file report. 2. WARRANTS. RESOLUTION AUTHORIZING PAYMENT OF WARRANTS BY THE FORMER REDEVELOPMENT AGENCY. RECOMMENDED ACTION: Adopt Resolution No. 12-R20. F. AZUSA PUBLIC FINANCING AUTHORITY The Consent Calendar adopting the printed recommended actions will be enacted with one vote. If Directors or Staff wish to address any item on the Consent Calendar individually, it will be considered under SPECL4L CALL ITEMS. 1. APPROVAL OF MINUTES OF THE REGULAR MEETING OF FEBRUARY 6, 2012. RECOMMENDED ACTION: Approve Minutes as written. 2. AZUSA PUBLIC FINANCING AUTHORITY TREASURER'S REPORT AS OF MARCH 31, 2012. RECOMMENDED ACTION: Receive and file the Report. 05/07/12 - 5 - G. ADJOURNMENT 1. Adjourn in memory of Raymond B. Padilla, Juan Hernandez, and Kendrec McDade. UPCOMING MEETINGS: May 21, 2012, City Council Meeting — 6:30 p.m. Azusa Auditorium May 29, 2012, (Tuesday) Utility Board Meeting — 6:30 p.m. Light and Water Conference Room June 4, 2012, City Council Meeting — 6:30 p.m. Azusa Auditorium June 18, 2012, City Council Meeting — 6:30 p.m. Azusa Auditorium June 25, 2012, Utility Board Meeting — 6:30 p.m. Light and Water Conference Room In compliance with Government Code Section 54957.5, agenda materials are available for inspection by members of the public at the following locations: Azusa City Clerk's Office - 213 E. Foothill Boulevard, Azusa City Library - 729 N. Dalton Avenue, and Azusa Police Department Lobby - 725 N. Alameda, Azusa, California. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a city meeting, please contact the City Clerk at 626-812-5229. Notification three (3) working days prior to the meeting when special services are needed will assist staff in assuring that reasonable arrangements can be made to provide access to the meeting. 05/07/12 - 6 - PUBLIC HEARING TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: GEORGE MORROW, DIRECTOR OF UTILITIES VIA: JAMES MAKSHANOFPCITY MANAGER DATE: MAY 7, 2012 SUBJECT: PUBLIC HEARING TO APPROVE WATER UTILITY BUDGET AMENDMENT IN AMOUNT OF $2.4 MILLION TO EFFECT COST SAVINGS THROUGH DEBT REFUNDING PLAN RECOMMENDATION: It is recommended that the City Council open public hearing, take testimony on the proposed budget amendment, close the public hearing and adopt attached resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING AN AMENDMENT TO WATER UTILITY BUDGET IN THE AMOUNT OF $2.4 MILLION FOR FISCAL YEAR 2011-2012 PURSUANT TO SECTION 2-450 OF THE AZUSA MUNICIPAL CODE. BACKGROUND: To reduce interest expense associated with certain long term debt incurred by Azusa Light & Water, staff assembled a Finance Team to take advantage of the current low interest rate environment. The Financing Team focused on refunding two Series of Certificates of Participation (COPs) executed and delivered in 2003. This report concerns the Series A COPS which were executed and delivered in the original principal amount of $20.37 million to finance certain water infrastructure and refund (i.e. refinance) certain outstanding debt associated with the purchase of the Azusa Valley Water Company in 1993. One limitation on refunding the Series A COPS was that approximately 20% of the outstanding debt had been previously advance refunded. Since public agencies are not allowed to advance refund long term tax-exempt debt more than once, 20% of the Series A COPs was ineligible for advance refunding with tax-exempt revenue bonds. Without refunding the 20%, the prior COP documents Water Utility Budget Amendment May 7, 2012 Page 2 of 3 would have required the City to continue to maintain a large reserve fund with the Trustee and this would have reduced the benefit of refinancing. To address the non-refundable 20% portion, the Finance Team considered various alternatives, ultimately recommending that a refunding plan be adopted that allocated water fund cash reserves to defease the 20% ineligible portion of the Series A COPS. The City Council approved this option on April 23, 2012, when it met as the Utility Board, finding that it maximizes our savings potential and cash flow savings. As a result of that action, $2.325 million in cash from the water utility reserve funds must be appropriated through this budget amendment. FISCAL IMPACT The proposed refunding plan requires a cash contribution from the water fund in amount of $2.325 million, however, since final amounts and expenses may vary, staff is requesting the amendment be approved in the amount of $2.4 million. Any unused portion will be returned to fund balance. Staff estimates that the Water fund had approximately $22.7 million in cash as of December 31, 2011, and so this cash contribution will lower the water fund cash balance, however, adequate funds are on hand to effect this refunding. It is estimated that the water system will save about $520,000 in annual cash flow through 2023, and approximately $1.58 million in discounted net present value savings through the life of the bonds (under current market conditions). The savings to the water system is expected to exceed the City's target of 5% minimum present value savings over current debt repayment. Attachments 1. Resolution of approval 2. April 12, 2012, Utility Board Staff Report ,;. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING AMENDMENT TO WATER UTILITY BUDGET IN AMOUNT OF $2.4 MILLION FOR FISCAL YEAR 2011-2012 PURSUANT TO SECTION 2-450 OF THE AZUSA MUNICIPAL CODE. WHEREAS, on April 23, 2012, the City Council, acting as the Utility Board, adopted Resolution No. which approved a plan to refund certain long term debt ("Refunding Plan") issued in 2003 on behalf of the City's Water Utility; and WHEREAS, the Refunding Plan calls for the City to make use of about $2.4 million in existing water utility reserve funds in order to pay off a portion of outstanding debt that cannot be advanced refunded with tax exempt bonds; and WHEREAS, the use of existing water utility reserve funds to effect this refunding is expected to produce an annual cash flow savings of about $520,000 per year for 10 years, and improve the water utility's debt -coverage ratio; and WHEREAS, the Operating Budget of the Water Utility does not currently include budget appropriations sufficient to cover the $2.4 million as contemplated the by the Refunding Plan; and WHEREAS, Section 2-450 of the Azusa Municipal Code requires that budget amendments over $1 million must be approved by resolution at a public hearing; NOW THEREFORE BE IT RESOLVED that the City Council of the City of Azusa does hereby approve the following: The FY 2011-12 Operating Budget of the Water Utility Fund 32 is hereby amended and approved as follows: a. Reduce Water Fund 32 balance by $2.4 million; b. Increase Interest Expense account no. 32-40-721-530-7001 by $200,000; c. Increase Principal Expense account no. 32-40-721-530-7005 by $2,200,000; The Finance Department is hereby ordered to record this budget amendment in the City's books of account as if adopted with the original thereof. ADOPTED AND APPROVED this 7th day of May, 2012. JOSEPH R. ROCHA, MAYOR a I HEREBY CERTIFY that the foregoing Resolution No. was duly adopted by the City Council of the City of Azusa at a regular meeting thereof on the day of 2012, by the following vote of City Council Members. AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS; VERA MENDOZA, CITY CLERK It 4 SCHEDULED ITEM TO: HONORABLE CHAIRMAN / MAYOR AND MEMBERS OF THE UTILITY BOARD / CITY COUNCIL FROM: GEORGE MORROW, DIRECTOR OF UTILITIES DATE: APRIL 23, 2012 SUBJECT: RESOLUTION APPROVING DOCUMENTS AND ACTIONS TO REFINANCE CERTAIN LONG TERM DEBT OF THE WATER AND ELECTRIC UTILITIES RECOMMENDATION It is recommended that the Utility Board / City Council: (1) Approve the attached resolution entitled: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZING AND APPROVING DOCUMENTS AND OFFICIAL ACTIONS RELATING TO THE REFINANCING OF CERTAIN WATER SYSTEM IMPROVEMENTS AND ELECTRIC SYSTEM IMPROVEMENTS AND THE ISSUANCE AND SALE OF WATER SYSTEM REVENUE REFUNDING BONDS AND ELECTRIC SYSTEM REVENUE REFUNDING BONDS AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH (2) Authorize use of $2.325 million from water fund balance to defease long-term debt associated with the Financing Authority for Resource Efficiency of California (" FARECal") Certificates of Participation, 2003 Series A (Water System Capital Improvements Program) (Series A COPS) executed and delivered in 2003 for those portions that cannot be advance refunded on a tax-exempt basis. (3) Authorize staff to schedule a public hearing for May 7, 2012, to amend water utility budget by $2.325 million for the purpose of effecting the proposed refunding. A Refunding Plan for Utility LT Debt April 23, 2012 Page 2 BACKGROUND To reduce interest expense associated with certain long term debt incurred by Azusa Light &. Water in 2003, Utilities staff initiated efforts to assemble a finance team to take advantage of the current historically low interest rate environment, and the Utility Board approved of the selection of a Financial Advisor -- Urban Futures, Inc., Underwriter -- De La Rosa & Co, and Bond/Disclosure Counsel-- Hawkins Delafield & Wood LLP (the "Financing Team"). As you are aware, the Financing Team focused on refunding two Series of Certificates of Participation (COPS) executed and delivered in 2003: (1) Series A COPs were executed and delivered in the original principal amount of $20.37 million to finance certain water infrastructure and refund certain outstanding debt associated with the purchase of the Azusa Valley Water Company in 1993; and (2) FARECal COPS, 2003 Series B (Electric System Capital Improvements Program) (Series B COPS) were executed and delivered in the original principal amount of $5.47 million to help fund a portion of the Kirkwall substation and related infrastructure. Both of these series are tax exempt issues. One limitation on refunding the Series A COPS was that about 20% of the outstanding debt had been previously advance refunded. Since public agencies are not allowed to advance refund long term tax-exempt debt more than once, 20% of the Series A COPS was ineligible for advance refunding with tax-exempt revenue bonds. Without refunding the 20%, the prior COP documents would have required the City to continue to maintain a large reserve fund with the Trustee, and this would have reduced the benefit of refinancing. To address the non-refundable 20% portion, the Finance Team considered various Options 1. Effect a partial refunding by issuing tax-exempt debt for the 80% eligible portion of the Series A COPs and get partial release of the reserve funds, which would be used to make future payments of debt service under the Series A COPS documents. This was estimated to result in savings of about $1,056,700. 2. Effect a full refunding by issuing a combination of tax-exempt debt (for the 80% eligible portion of the Series A COPs) and taxable debt (for the 20% ineligible portion of the Series A COPS), and get full release of the reserve fund. This option was believed to save about $1,517,900. 3. Allocate water fund cash reserve to defease the 20% ineligible portion of the Series A COPS as an alternative to the issuance of taxable bonds. In this case, the total reserve is released and City would be required to contribute $2.325 million of its own money. The savings of this option is about $1.8 million. Option 3 noted above was favored by staff for the following reasons: A. The cash reserves of the water utility were about $21.4 million according to the audited financial report for fiscal year ended June 30, 2011. Hence, cash It Refunding ]Plan for Utility LT Debt April 23, 2012 Page 3 is on hand to maximize our savings potential. B. Rates earned on cash investments are very low right now, below I%, and so if we can use our own cash to reduce the cost of borrowing, the net effect would be akin to getting a higher rate of return on our cash. If the City earned more than 1.5% on cash investments, it would have been more advantageous for the City to use Option 2, although there would be additional work associated with issuing taxable debt and additional administrative costs associated with debt service. C. For second quarter ended December 31, 2011, the Quarterly Budget Report showed that the water fund is nearing a 1.30 debt coverage ratio. The minimum is 1.25. Exercising Option 3 will allow the City to reduce its interest expense on installment payments significantly on an annual basis and thereby improve our debt coverage ratio without having to rely on a retail water rate increase. Notably, consumption (i.e., "sales") are still down due to conservation and the current economic conditions, and staff is sensitive to the idea of proposing a rate increase if Option 3 can be used to meet debt - coverage requirements. D. The added positive cash flow as shown below in the "Savings" column can be used for other purposes, such as funding capital improvement projects or replenishing cash reserves: Staff believes that for all of the above reasons, it is compelling to use our water fund cash to benefit ratepayers, provide additional operating revenue for ongoing system maintenance, or for the purpose of replenishing cash reserves. Series A Installment Comparison FY Yr Existing Pymnt New Payment Savings 2012 S 53,774 S 36,681 S 17,093 2013 1,553,883 1,032,500 521,383 2014 1,555,138 1,033,800 521,338 2015 1,553,275 1,027,800 525,475 2016 1,553,175 1,029,200 523.975 2017 1,555,025 1,029,400 525,625 2018 1,553,505 1,028,400 525,105 2019 1,552,930 1,031,200 521,730 2020 1,554,743 522,143 2021 1,548,063 525,463 2022 1,552,738 a1,029000 526,138 2023 1,554,000 525 000 Total S 17,140,246 S S 5,780,466 Staff believes that for all of the above reasons, it is compelling to use our water fund cash to benefit ratepayers, provide additional operating revenue for ongoing system maintenance, or for the purpose of replenishing cash reserves. A Refunding Plan for Utility LT Debt April 23, 2012 Page 4 In regard to the Electric Fund Series B COPS, a full refunding is proposed by the Financing Team using tax exempt revenue bonds. The annual cash flow savings forecast by the Underwriter is set forth below: The savings forecasts included in both of the above tables is subject to final pricing of the bonds to be issued; however, it is important to move forward to take advantage of the currently low bond market rates. To summarize the proposed financing, the Financing Team has structured the following plan of refunding the aforementioned Series A COPs and Series B COPS to provide savings to both the water and electric utilities: 1. Advance refund the legally permissible 80% share of outstanding Series A COPS in the approximate amount of $10 million on a tax-exempt basis through the issuance of certain 2012 Series A Water System Refunding Revenue Bonds (Water Bonds) in the principal amount not -to -exceed $11 million. 2. Contribute $2.325 million in cash to refund the portion of the Series A COPs that is not eligible for refunding on a tax-exempt basis. 3. Advance refund all of the Series B COPs outstanding in the approximate amount of $5.5 million through the issuance of certain 2012 Series B Electric System Refunding Revenue Bonds (Electric Bonds) in the principal amount not -to -exceed $6.5 million. To fully effect the above refunding plan, staff and the City's Financing Team recommend approval of the attached legal documents, which include the following: Authorizing Resolution: The Resolution approves the Indentures, Bond Purchase Agreements, Preliminary Official Statement, Escrow Instructions, and Continuing Disclosure Agreements for the Water Bonds and the Electric Bonds, and authorizes actions in It Series B Installment Comparison FY Yr Existing Pymnt New Payment Savings 2012 $ 21,953 $ 23,428 $ (1,475) 2013 263,438 221,950 41,488 2014 263,438 221,950 41,488 2015 263,438 - 221,950 41,488 2016 263,438 221,950 41,488 2017 828,438 781,950 46,488 2018 962,448 919,550 42,898 2019 963,373 920,750 42,623 2020 962,273 915,750 46,523 2021 964,113 919,750 44,363 2022 963,406 917,350 46,056 2023 960,750 918,750 42,000 Total S 7,680,502 S 7,205,078 S 475,424 The savings forecasts included in both of the above tables is subject to final pricing of the bonds to be issued; however, it is important to move forward to take advantage of the currently low bond market rates. To summarize the proposed financing, the Financing Team has structured the following plan of refunding the aforementioned Series A COPs and Series B COPS to provide savings to both the water and electric utilities: 1. Advance refund the legally permissible 80% share of outstanding Series A COPS in the approximate amount of $10 million on a tax-exempt basis through the issuance of certain 2012 Series A Water System Refunding Revenue Bonds (Water Bonds) in the principal amount not -to -exceed $11 million. 2. Contribute $2.325 million in cash to refund the portion of the Series A COPs that is not eligible for refunding on a tax-exempt basis. 3. Advance refund all of the Series B COPs outstanding in the approximate amount of $5.5 million through the issuance of certain 2012 Series B Electric System Refunding Revenue Bonds (Electric Bonds) in the principal amount not -to -exceed $6.5 million. To fully effect the above refunding plan, staff and the City's Financing Team recommend approval of the attached legal documents, which include the following: Authorizing Resolution: The Resolution approves the Indentures, Bond Purchase Agreements, Preliminary Official Statement, Escrow Instructions, and Continuing Disclosure Agreements for the Water Bonds and the Electric Bonds, and authorizes actions in It L FA Refunding Plan for Utility LT Debt April 23, 2012 Page 5 connection with the refinancing of the Series A COPS and Series B COPS. Indentures: The Indentures, each between the City and Wells Fargo Bank, National Association (Trustee), set forth the terms of the Water,Bonds and the Electric Bonds and the conditions, rights, and responsibilities of both the City and the Trustee with respect to the Water Bonds and the Electric Bonds. Bond Purchase Agreements: The Bond Purchase Agreements, each between the City and the Underwriter, sets forth the terms, conditions, rights and responsibilities of the parties thereto with respect to the sale and purchase of the Water Bonds and the Electric Bonds. Preliminary Official Statement: The Preliminary Official Statement serves as a marketing tool for the Underwriter to sell the bonds, and is required as a means to disclose all material information of the Water and Electric Utilities to potential investors in the Water Bonds and Electric Bonds. The document contains background information on the City, the electric system and the water system, as well as historic, current, and projected financial information such as utility rates, system operating results, and debt service coverage. Escrow Instructions: The Escrow Instructions, each between the City and Wells Fargo Bank, National Association, sets forth the terms and conditions of the escrows that will be established to defease and repay the balance of the installment agreements related to the existing Series A COPs and Series B COPS. Continuing Disclosure Agreements: The Continuing Disclosure Agreements, each between the City and Wells Fargo Bank, National Association, sets forth the City's obligations to provide timely, ongoing annual financial information for the benefit of investors in the Water Bonds and the Electric Bonds. This document is required pursuant to Rule 15c2-12 established by the Securities and Exchange Commission. It is understood that the above referenced documents are in substantially final form and have been reviewed and commented on by both City Staff and the City Attorney's office. Continued minor changes are likely to occur in the coming days, however, the documents are ready for the Utility Board's / City Council approval at this time. FISCAL IMPACT The above financing plan requires a cash contribution from the water fund in amount of $2.325 million. Since the municipal code requires budget amendments in excess of $1 million to be approved at a public hearing, staff is recommending that a public hearing be scheduled for May 7, 2012. Staff estimates that the Water fund had approximately $22.7 million in cash as of December 31, 2011, and so this cash contribution will lower the water fund cash, however, adequate funds are on hand to effect this refunding and various members of the Financing Team do not believe this use of funds will adversely affect the water utility's credit rating. LI. Refunding Plan for Utility LT Debt April 23, 2012 Page 6 Below includes some forecasted savings of this refunding in discounted net present value terms for both utilities. Water System Savings Without extending the final maturity for the Series A COPS, the water system will save an average of $520,000 in annual cash flow through 2023, and approximately $1.58 million in discounted net present value savings through the life of the bonds (under current market conditions). The savings to the water system is expected to exceed the City's target of 5% minimum present value savings over.current debt repayment. Electric System Savings Without extending the final maturity for the Series B COPS, the electric system will save up to $46,000 in annual cash flow through 2023, and approximately $454,000 in discounted net present value savings through the life of the bonds. The savings to the water system is expected to exceed the City's target of 5% minimum present value savings .over current debt repayment. Prepared by Cary Kalscheuer, Assistant to the Director of Utilities HARDCOPY ATTACHMENTS DISTRIBUTED WITH REPORT Resolution Preliminary Official Statement OTHER ATTACHMENTS Due to the number and size of the remaining documents, hardcopies are available for public review at the Library at 729 N. Dalton and at the Azusa Light & Water Office at 729 N. Azusa Avenue. These documents include the following: Indenture (Water) Indenture (Electric) Continuing Disclosure Agreement (Water) Continuing Disclosure Agreement (Electric) Escrow Instructions (Water) Escrow Instructions (Electric) Bond Purchase Agreement (Water) Bond Purchase Agreement (Electric) 67001 CONSENT CALENDAR TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: TITO HAES, ASSISTANT CITY MANAGERIPUBLIC WORKS DIRECTOR VIA: JAMES MAKSHANOF , CITY MANAGER DATE: MAY 7, 2012 SUBJECT: AMENDED AND RESTATED AGREEMENT FOR CITY ATTORNEY SERVICES BETWEEN THE CITY OF AZUSA AND BEST, BEST, AND KRIEGER, LLP. RECOMMENDATION It is recommended that the City Council approve the amended and restated agreement for City Attorney services between the City of Azusa and Best, Best, and Krieger, LLP. BACKGROUND In April 2012, Sonia Carvalho, Azusa's City Attorney, accepted the City Attorney position for the City of Santa Ana. As such, Best, Best, and Krieger, LLP (BB&K), designated Marco Martinez as Azusa's Interim City Attorney. Marco Martinez has served as Azusa's City Attorney when Sonia Carvalho was unavailable due to vacation or other reasons: Staff has worked with Marco Martinez during these periods and is very confident in his abilities to replace Sonia Carvalho as Azusa's City Attorney. The existing agreement dated July 1, 2003 for legal services between the City of Azusa and BB&K lists Sonia Carvalho as the individual,designated as City Attorney for Azusa and states "no change in assignment shall be made without the consent of the City." In order for Marco Martinez to become Azusa's permanent City Attorney, the City Council must approve an amended and restated agreement for City Attorney Services. The Agreement amends the City's designated City Attorney from Sonia Carvalho to Marco Martinez. The Agreement also designates Elizabeth Hull and Jeff Ferre of BB&K as Assistant City Attorneys. Staff has also worked with Elizabeth Hull and Jeff Ferre in the past and found their work to be excellent. No change in these assignments shall be made without the City's consent. The proposed Agreement scope of services includes (but is not limited to) the following: • Preparation for and attendance at regular and special meetings; • Provision of legal counsel at such meetings; • Preparation or review of ordinances, resolutions, staff reports, orders, agreements, forms, notices, declarations, certificates, deeds, leases, and other documents as requested; • Rendering to officers and employees legal advice and opinions as directed; • Researching`and interpreting laws, court decisions, and other legal authorities in order to prepare legal opinions and to advise on legal matters pertaining to operations as directed; • Performing legal work pertaining to property acquisition, property disposal, public improvements, public rights-of-way and easements, as directed; • Responding to inquiries and review for legal sufficiency ordinances, resolutions, contracts, and administrative and personnel matters as directed; • Representing and assisting on litigation matters as directed FISCAL IMPACT The monthly retainer for basic legal services in the 2003 Agreement for Legal Services was $22,100 and included annual cost of living adjustments (COLA) increases. As a way to help with the City's budget issues, BB&K voluntarily reduced their monthly retainer. The current monthly retainer for basic legal services is $21,375. In addition to the previous reduction, staff and BB&K agreed to a further reduced monthly retainer for basic legal services of $19,500. This would provide an annual savings of $22;500 for basic legal, services. Exhibit A of the attached Agreement, includes a detailed list of legal service rates for special legal services, third party reimbursable legal services, and other legal services. As was included in the previous agreement, the rates included in Exhibit A are subject to COLA increases annually by the May Consumer Price Index (CPI) for the Los Angeles -Anaheim -Riverside area. However, the adjustment shall never be lower than 0% or greater than 4%. Attachment: BBK Legal Services Agreement v AMENDED AND RESTATED AGREEMENT FOR CITY ATTORNEY LEGAL SERVICES BETWEEN THE CITY OF AZUSA & BEST BEST & KRIEGER LLP 1. PARTIES AND DATE. This Amended and Restated Agreement for City Attorney Legal Services is made and entered into as of the _ day of . 2012, by and between the City of Azusa, a California municipal corporation ("Client'), and Best Best & Krieger LLP, a limited liability partnership engaged in the practice of law ("BB&K"). 2. RECITALS. 2.1 Client wishes to continue to engage the services of BB&K as its City Attorney to perform all necessary legal services for the Client on the terms set forth below. For purposes of this Agreement, the term "Client' shall include the former the Successor Agency to the former Azusa Redevelopment Agency, the Azusa Public Finance Authority, the Azusa Housing Authority, the Azusa Utility Board and any other affiliated entities. [WILL NEED TO VERIFY ALL AFFILIATED ENTITIES] 3. TERMS. 3.1 Term. The term of this Agreement shall commence on 1, 2011 and shall continue in full force and effect until terminated in accordance with Section 3.12. 3.2 Scope of Services: BB&K shall serve as City Attorney and shall perform legal services ("Services") as may be required from time to time by the Client as set forth by this Agreement, unless otherwise agreed to by the Client and BB&K. As part of the Services to be performed hereunder, BB&K shall be responsible for the following: 3.2.1 Preparation for, and attendance at, regular and special meetings of the Client; 3.2.2 Provision of legal counsel at such other meetings as directed by the Client; 3.2.3 Preparation or review of all Client ordinances and resolutions, together with such staff reports, orders, agreements, forms, notices, declarations, certificates, deeds, leases and other documents as requested by the Client; attend staff meetings and provide office hours at City Hall as agreed upon by the City Manager and City Council; 99999.9109217394742. 11 0 3.2.4 Rendering to the officers and employees of the Client legal advice and opinions on all legal matters affecting the Client, including new legislation and court decisions, as directed by the Client, 3.2.5 Researching and interpreting laws, court decisions and other legal authorities in order to prepare legal opinions and to advise the Client on legal matters pertaining to Client operations, as directed by the Client; 3.2.6 Performing legal work pertaining to property acquisition, property disposal, public improvements, public rights-of-way and easements, as directed by the Client; 3.2.7 Responding to inquiries and review for legal sufficiency ordinances, resolutions, contracts, and administrative and personnel matters, as directed by the Client; 3.2.8 Representing and assisting on litigation matters, as directed by the Client. Such services shall include, but shall not be limited to, the preparation for and making of . appearances, including preparing pleadings , and petitions, making oral presentations, and preparing answers, briefs or other documents on behalf of the Client, and any officer or employee of the Client, in all federal and state courts of this State, and before any governmental board or commission, including reviewing, defending or assisting any insurer of the Client or its agents orattorneys with respect to any lawsuit filed against the Client or any officer or employee thereof, for money or damages. 3.3 Designated City Attorney. Marco A. Martinez shall be designated as City Attorney, and shall be responsible for the performance of all Services under this Agreement, including the supervision of Services performed by other members of BB&K. Elizabeth Hull and Jeff Ferre shall be designated as Assistant City Attorneys, and shall attend such meetings as may be requested by the City. No change in these assignments shall be made without the consent of the Client. 3.4 Time of Performance. The Services of BB&K shall be performed expeditiously in the time frames and as directed by the Client. 3.5 Assistance. The Client agrees to provide all information and documents necessary for the attorneys at BB&K to perform their obligations under this Agreement. 3.6 Independent Contractor. BB&K shall perform all legal services required under this Agreement as an independent contractor of the Client and shall remain, at all times as to the Client, a wholly independent contractor with only such obligations as 2 99999.9109217394742.1 7 are required under this Agreement. Neither the Client, nor any of its employees, shall have any control over the manner, mode or means by which BB&K, its agents or employees, render the legal services required under this Agreement, except as otherwise set forth. The Client shall have no voice in the selection, discharge, supervision or control of BB&K's employees, representatives or agents, or in fixing their number, compensation, or hours of service. 3.7 Fees and Costs. BB&K shall render and bill for legal services in the following categories and at rates set forth in Exhibit "A" and in accordance with the BB&K Billing Policies set forth in Exhibit "B", both of which are attached hereto and incorporated herein by reference. In addition, the Client shall reimburse BB&K for reasonable and necessary expenses incurred by it in the performance of the Services under this Agreement. Authorized reimbursable expenses shall include, but are not limited to, printing and copying expenses, mileage expenses at the rate allowed by the Internal Revenue Service, toll road expenses, long distance telephone and facsimile tolls, computerized research time (e.g. Lexis or Westlaw), research services performed by BB&K's library staff, extraordinary mail or delivery costs (e.g. courier, overnight and express delivery), court fees and similar costs relating to the Services that are generally chargeable to a client. However, no separate charge shall be made by BB&K for secretarial or word processing services. 3.8 Billing. BB&K shall submit monthly to the Client a detailed statement of account for Services. The Client shall review BB&IQ's monthly statements and pay BB&K for Services rendered and costs incurred, as provided for in this Agreement, on a monthly basis. 3.9 Annual Reviews. - The Client and BB&K agree that a review of performance and the compensation amounts referenced in this Agreement should occur at least annually. 3.10 Insurance. BB&K carries errors and omissions insurance with Lloyd's of London. After a standard deductible, this insurance provides coverage beyond what is required by the State of California. A separate schedule containing BB&K's insurance policies will be available for inspection upon Client's request. 3.11 Attorney -Client Privilege. Confidential communication between the Client and BB&K shall be covered by the attorney-client privilege. As used in this article, "confidential communication" means information transmitted between the Client and BB&K in the course of the relationship covered by this Agreement and in confidence by a means that, so far as the Client is aware, discloses the information to no third persons other than those who are present to further the interests of the Client in the consultation or those to whom disclosure is reasonably necessary for the transmission of the information or the accomplishment of the purpose for which BB&K 99999.9109217394742.1 t Q is consulted, and includes any legal opinion formed and advice given by BB&K in the course of this relationship. 3.12 Termination of Agreement and Legal Services. This Agreement and the Services rendered under it may be terminated at any time upon thirty (30) days' prior written notice from either party, with or without cause. In the event of such termination; BB&K shall be paid for all Services authorized by the Client and performed up through and including the effective date of termination. 3.13 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. 3.14 Governing Law. This Agreement shall be governed by .the laws of the State of California. Venue shall be in Los Angeles County. 3.15 Amendment; Modification. No supplement,. modification or amendment of this Agreement. shall be binding unless executed in writing and signed by, both parties: 3.16 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. 3.17 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. 3.18 Delivery of Notices. All notices permitted or required under this Agreement notices 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. 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: Client: City of Azusa {INSERT ADDRESS] Attention: City Manager 4 99999.9109217394742.1 0 7 BB&K: Best Best & Krieger LLP 3500 Porche Way, Suite 200 Ontario, CA 91761 Attention: Marco A. Martinez, Partner 3.19 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 99999.91092\73 94742. 1 5 IN WITNESS WHEREOF, THE CLIENT AND BB&K HAVE EXECUTED THIS AMENDED AND RESTATED AGREEMENT FOR CITY ATTORNEY LEGAL SERVICES AS OF THE DATE FIRST WRITTEN ABOVE. CITY OF AZUSA By: Joseph Rocha Mayor Attest: Vera Mendoza City Clerk BEST BEST & KRIEGER LLP By: Marco A. Martinez Partner 6 99999.91092M94742.1 n 0 EXHIBIT "A" Basic, Special, and Reimbursable Legal Service Rates 1. Basic Legal Services - Description and Rate. Basic Legal Services shall include all services provided to Client that are not otherwise specifically identified below*as either Special Legal Services, Third Party Reimbursable Legal Services, or Public Finance Legal Services ("Basic Legal Services"). The Client shall pay for Basic Legal Services at the flat rate monthly retainer amount of $19,500 per month. 2. Special Legal Services - Description. Special Legal Services shall include the following types of services: A. :Litigation and formal administrative or other adjudicatory hearing matters, including Pitchess motions and other police litigation matters B. Labor relations and employment matters. C. Non -routine real estate matters (e.g. CC&R's, deed or title work) D. Land acquisition and disposal matters (including pre - condemnation) E. Redevelopment/ successor agency and housing matters F. Utility.Board, electric and water utility matters G. Taxes, fees and charges matters (e.g. Prop. 218 & Mitigation Fee Act) H. Public construction disputes I. Non -routine contract negotiation matters (including non-BB&K model agreements and franchise agreements) J. Non -routine land use and development matters (including general plan updates, Williamson Act issues, annexations and development agreements) K. Bankruptcy -related matters L. CEQA, complex environmental matters and solid waste matters M. Other matters mutually agreed upon 3. Special Legal Services - Rates. The Client shall pay for Special Legal Services at the following rates: Partner/Of Counsel: $245 Associates: $215 Paralegals/Law Clerks $150 4. Third Party Reimbursable Legal Services - Description. Third Party 99999.91092\7394742.1 Reimbursable Legal Services shall include legal services provided to the City for which the City receives reimbursement from a developer or other third party. These reimbursable legal services typically include litigation for which the City is indemnified by a project applicant, CEQA and land use -planning review, review of CC&Rs; establishment of financing districts (i,e., Community Facilities Districts; Assessment Districts; Landscape and Lighting Maintenance Districts); and land use/environmental , projects for which the City is entitled to reimbursement. 5. Third Party Reimbursable Legal Services - Rates. The Client shall pay for Third Party Reimbursable Legal Services at the following rates: Partner/ Of Counsel: $300 Associates: $275 Paralegals/Law Clerks $150 6. Public Finance Legal Services - Description & Rates. The Client shall pay for Public Finance Legal Services at the rates set forth for Public Finance Legal Services, below. For bond counsel and special counsel services in connection with the financing of public facilities, BB&K shall be compensated, depending upon the type of bonds, certificates of participation or other obligations that are to be issued, based on the following schedules. Unless otherwise mutually agreed, our fees as bond counsel on these financings will be payable from proceeds of each series of the bonds upon their issuance. A. Certificates of Participation and Revenue Bonds. For services in connection with the issuance and sale of certificates of participation and revenue bonds, BB&K shall be paid a fee, which will be the greater of (i) $35,000 or (ii) an amount based on the total principal amount of the certificates of participation or bonds to be sold, computed as follows: .50% of the first $10 million of the amount of the certificates or bonds issued, plus .25% of the next $10 million of the amount thereof, plus 125% of the amount thereof, if any, over $20 million. Notwithstanding the foregoing, in those cases where the fees are reimbursable by a third party, at BB&K's option it may proceed on an hourly basis and utilize the Third Party Reimbursable Legal Services category provided for in this Agreement. 99999.91092\7394742.1 V B. Community Facilities Districts. For services in connection with the issuance and sale of bonds of community facilities districts, BB&K shall be paid a fee, which will be the greater of (i) $35,000 or (ii) an amount based on the total principal amount of the bonds to be sold, computed as follows: .50% of the first $10 million of the amount of the bonds issued, plus .25 % of the next $10 million of the amount thereof, plus .125% of the amount thereof, if any, over $20 million. Notwithstanding the foregoing, in those cases where the fees are reimbursable by a third party, at.BB&K's option it may proceed on a hourly basis and utilize the Third Party Reimbursable Legal Services category provided for in this Agreement with respect to services rendered for the formation of or annexation to a CFD, as well as the negotiation and preparation. of funding agreements and joint financing agreements. Hourly compensation shall be payable solely from deposits of third parties and bond counsel fees shall be payable solely from the proceeds of the sale of bonds. C. Assessment Districts. For services in connection with the issuance and sale of bonds of assessment districts, BB&K shall be paid a fee, which will be the greater of (i) $35,000 or (ii) an amount based on the total principal amount of the bonds to be sold, computed as follows: ' .50% of the first $6 million of the amount of the bonds issued, plus .25% of the next $10 million of the amount thereof, plus 125% of the amount thereof, if any, over $16 million. Notwithstanding the foregoing, in those cases where the fees are reimbursable by a third party, at BB&K's option it may proceed on a hourly basis and utilize the Third Party Reimbursable Legal Services category provided for in this Agreement with respect to services rendered for the formation of or annexation to an AD, as well as the negotiation and preparation of funding agreements and joint financing agreements. Hourly compensation shall be payable solely from deposits of third parties and bond counsel fees shall be payable solely from the proceeds of the sale of bonds. D. Tax Allocation Bonds. For services in connection with the issuance and sale of tax allocation bonds. BB&K shall be paid a fee, which will be the greater of (i) $35,000, or (ii) an amount based on the total principal amount of the bonds to be sold, computed as follows: 99999.9]092\7394742.1 i .50% of the first $6 million of the amount of bonds issued; plus , .25%.of the next $4 million of the amount of bonds issued, plus .20% of the next $5 million of the amount of bonds issued, plus .15% of the•next $5 million of the amount of bonds issued, plus .125% of the amount thereof, if any, over $20 million. Notwithstanding the foregoing, in those cases where the fees are reimbursable by a third party, at BB&K's option it may proceed on an hourly basis and utilize the Third. Party Reimbursable Legal Services category provided for in this Agreement. E. Investment and Other Agreements. For investment agreements, derivative transactions or interest rate swaps relating to of any bond issue, a separate fee will be charged depending on the type of derivative. Generally, our fee for a derivative transaction mirrors our bond counsel fee. Review of investment agreements will be charged at our hourly rates. F. Issuer's Counsel Opinions. For all Issuer's Counsel opinions provided by BB&K in connection with any bond financing, fees shall be the following: (1) for opinions on financings for which BB&K does not provide bond counsel and disclosure counsel services, $10,000; (2) for opinions on financings for which BB&K provides bond counsel services only, $5,000; (3) for opinions on financings for which BB&K provides disclosure counsel services only,, $2,500; and (4) for opinions on financings for which BB&K provides both bond and disclosure counsel services, there will be no charge. G. Other Public Finance Services. If other services are requested by the City that are not within the scope of those provided for above, they will be performed on an hourly basis at the Complex Legal Services category provided for in the Agreement. 7. Agreement Regarding Rate Categories. If BB&K believes that a matter falls within the Special Legal Services, Complex Legal Services, Third Party Reimbursable Legal Services, or Public Finance Legal Services rate categories, BB&K shall seek approval from the City Manager or his/her designee. The City Manager's or her designee's approval of such a request from BB&K shall not be unreasonably withheld. 8. Annual Adjustments; Other Mutual Adjustments. The rates or amounts provided for in Sections 1 through 7 shall be automatically increased as follows: On July 1, 2013 and every July 1st thereafter during the term of this Agreement, they shall be increased for the change in the cost of living for twelve (12) month period published for the month of May, as shown by the U.S. Department of Labor in its All Urban Consumers Index set forth for the Los Angeles -Anaheim -Riverside area; provided, 99999.91092\7394742.1 I however, that such adjustment shall never be lower than zero percent (0%) nor more than four percent (4%). In addition to the automatic rate increases, either BB&K or the Client may initiate consideration of a rate increase at anytime. 99999.9109217394742.1 Our century of experience has shown that the attorney-client relationship works best when there is mutual understanding about fees, expenses, billing and payment terms. Therefore, this statement is intended to explain our billing policies and procedures. Clients are encouraged to discuss with us any questions they have about these policies and procedures. Clients may direct specific questions about a bill to the attorney with whom the client works or our Accounting Department. Any specific billing arrangements different from those set forth below will be confirmed in a separate written agreement between the client and the firm. Fees for Professional Services Unless a flat fee is set forth in our engagement agreement with a client, our fees for the legal work we will undertake will be based in substantial part on time spent by personnel in our office on that client's behalf. In special circumstances which will be discussed with the client and agreed upon in writing, fees will be based upon the novelty or difficulty of the matter, or the time or other special limitations imposed by the client. Hourly rates are set to reflect the skill and experience of the attorney or other legal personnel rendering services on the client's behalf. Time is accrued on an incremental basis for such matters as telephone. calls (minimum .3 hour) and letters (minimum .5 hour), and on an actual basis for all other work. Our attorneys are currently billed at rates from $200 to $550 per hour, and our administrative assistants, research assistants, paralegals and law clerks are billed at rates from $110 to $225 per hour. These hourly rates are reviewed annually to accommodate rising firm costs and to reflect changes in attorney status as lawyers attain new levels of legal experience. Any increases resulting from such reviews will be instituted automatically and will apply to each affected client, after advance notice. Fees For Other Services, Costs and Expenses We attempt to serve all our clients with the most effective support systems available. Therefore, in addition to fees for professional legal services, we also charge separately for some other services and expenses to the extent of their use by individual clients. These charges include but are not limited to, mileage at the current IRS approved rate per mile, extraordinary telephone and document delivery charges, copying charges, computerized research, court filing fees and other court -related expenditures including court reporter and transcription fees. No separate charge is 99999.9109217394742.1 I made for secretarial or word processing services; those costs are included within the above hourly rates. We may need to advance costs and incur. expenses on your behalf on an ongoing basis. These items are separate and apart from attorneys' fees and, as they are out-of- pocket charges, we need to have sufficient funds on hand from you to pay them when due. We will advise the client from time to time when we expect items of significant cost to be incurred, and it required that the client send us advances to cover those costs before they are due. Advance Deposit Toward Fees And Costs Because new client matters involve both a substantial undertaking by our firm and the establishment of client credit with our accounting office, we require an advance payment from clients. The amount of this advance deposit is determined on a case-by- case basis discussed first with the client, and is specified in our engagement agreement. Upon receipt, the advance deposit will be deposited into the firm's client trust account. Our monthly billings will reflect such applications of the advance deposit to costs and not to attorney's fees. At the end of engagement, we will apply any remaining balance first to costs and then to fees. We also reserve the right to require increases or renewals of these advanced deposits. By signing the initial engagement agreement, each client is agreeing that trust account balances may be withdrawn and applied to costs as they are incurred and to our billings, after presentation to the client. If we succeed in resolving your matter before the amounts deposited are used, any balance will be promptly refunded. Monthlv Invoices and Payment Best Best & Krieger LLP provides our clients with monthly invoices for legal services performed and expenses incurred. Invoices are due and payable upon receipt. Each monthly invoice reflects both professional and other fees for services rendered through the end of the prior month, as well as expenses incurred on the client's behalf that have been processed by the end of the prior month. Processing of some expenses is delayed until the next month and billed thereafter. Our fees are not contingent upon any aspect of the matter and are due upon receipt. All billings are due and payable within ten days of presentation unless the full amount is covered by the balance of an advance held in our trust account. If a bill is not paid within 30 days, a late charge of one percent per month on the unpaid invoice shall be added to the balance owed, commencing with the next statement and continuing until paid. 99999.91092\7394742.1 It is our policy to treat every question about a bill promptly and fairly. It is also our policy that if a client does not pay an invoice within 60 days of mailing, we assume the client is, for whatever reason, refusing to pay. We will then advise the client by letter that the client may pay the invoice within 14 days or the firm will take appropriate steps to withdraw as attorney of record. If the delay is caused by a problem in the invoice, we must rely upon the client to raise that with us during the 14 -day period. This same policy applies to fee arrangements which require the client to replenish fee deposits or make deposits for anticipated costs. From time to time clients have questions about the format of the bill or description of work performed. If you have any such questions, please ask them when you receive the bill so we may address them on a current basis. Changes in Fee Arrangements and Budgets It may be necessary under certain circumstances for a client to increase the size of required advances for fees after the commencement of our engagement and depending upon the scope of the work. For example, prior to a protracted trial or hearing, the firm may require a further advance payment to the firm's trust account sufficient to cover expected fees. Any such changes in fee arrangements will be discussed with the client and mutually agreed in writing. Because of the uncertainties involved, any estimates of anticipated fees that we provide at the request of a client for budgeting purposes, or otherwise, can only be an approximation of potential fees. BEST BEST & KRIEGER LLP 99999.91092\7394742.1 CITY OF AZUSA MINUTES OF THE CITY COUNCIL REGULAR MEETING MONDAY, APRIL 16, 2012 — 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 located at 213 E. Foothill Boulevard, Azusa, CA 91702. CLOSED SESSION The City Council recessed to Closed Session at 6:31 p.m. to discuss the following: I. Gov. Code See. 54957.6 —CONFERENCE WITH LABOR NEGOTIATOR City Negotiators: City Manager Makshanoff Organizations: ACEA (Azusa City Employees Association), AMMA (Azusa Middle Management Association), SEIU (Service Employees International Union). Closed Session Recess Conf w/Labor Negotiator Gov. Code Sec. 54956.9 (a) - CONFERENCE WITH LEGAL COUNSEL - EXISTING Conf w/Legal LITIGATION. Estrellita Diaz, a minor, by and through her guardian ad litem, Catalina Valerio Counsel vs. City of Azusa, Pomona Court, Case No. KC 063466. The City Council reconvened at 7:30 p.m. City Attorney Martinez advised that there was no reportable Reconvene action taken in Closed Session. No Action Mayor Rocha called the meeting to order. Pledge to the Flag was led by Eric Knoles. Invocation was given by Father Gustavo Castillo of Saint Frances of Rome Church. ROLL CALL PRESENT: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT: City Attomey Martinez, City Manager Makshanoff, Police Chief Gonzalez, Information Officer Quiroz, Director of Public Works/Assistant City Manager Haes, Finance Controller Paragas, Library Director Johnson, Adult Literacy Coordinator Reta, Recreation Superintendent Gonzales, Director of Utilities Morrow, City Clerk Mendoza, Deputy City Clerk Toscana. PUBLIC PARTICIPATION Call to Order Flag Salute Invocation Roll Call Also Present Pub Part Coordinator for the Azusa Reads/Writes/Counts and Azusa Calculates Stacy Kim and Tutor Helica S. Kim H. Vasquez provided information regarding the program for the past year. They invited all to the year end Vasquez celebration on Thursday, April 19th from 4:00-5:30 p.m. Azusa Reads Mr. Mike Lee addressed Council expressing his appreciation to Council for their concern of him, asked all M. Lee to support local business i.e. Cafe Cola and Pepe's, talked about the 25'" Anniversary of the Azusa Senior Comments Center, new businesses on Sierra Madre between Azusa and San Gabriel, contract with TWA/AT&T, requested all pray for troops. Ms. Sandi Soto addressed Council expressing her concern and asking the status of contract negotiations S. Soto for Humane Services. Comments Mr. Bruce Knoles addressed Council in favor of the A on the mountain and against a parking structure on B. Knoles Alameda. Comments Ms. Jeri Vogel spoke against a parking structure and about the funding of the EIR. J. Vogel —Com Mr. LJmn Eaton addressed Council and expressed his opinion regarding Foothill Transit and the history of L. Eaton the proposed parking structure..~ Comments t conducting a siren test in the Azusa Canyon. Councilmember Hanks responded to comments made stating that Fran and Peggy Delach did not have a Hanks Conflict of Interest with Foothill Transit. Response Mr. Dan Simpson addressed Council presenting a handout entitled Protecting our Hillside: Things to D. Simpson Consider and proceeded to read the correspondence into the record. Comments Mr. Jorge Rosales distributed a picture of the Irwindale parking structure that has been recently completed J. Rosales by Southern California Edison, which he described as three stories and a roof top. He stated that the Comments proposed parking structure in Azusa has been described ss the same, but is larger. the meetings. He stated that he does value the parks in the City, and talked about the changes that have Ms. Suzanne Avila of California Resource Connections thanked all who attended the Smart Gardening S. Avila & Workshop over the weekend. Mr. Freddie Duncan, Wilderness Manager of the Angeles National Forest F. Duncan addressed Council inviting all to the Earth Day Celebration, THINK RIVER, to be held April 21, 2012 Comments from 8:30 a.m. to 12:30 p.m. at the West Fork where they will be cleaning up the sides of the river in that structure, to have a full discussion on the issue and see the entire picture of what is being proposed. area. Mayor Rocha stated that the meeting would be adjourned in memory of Jimmy Rocha and William R. Mr. Tri Phung, an Azusa resident and a representative of KB Homes in Rosedale invited Council to visit T. Phung the Development. He asked Council what is planned for the next two to five years in Azusa so that he Comments could attract potential buyers. He also noted that he lives in an area next to Northside Park and the Divorce Impact on Kids and Parents. November — Diabetes Awareness Month — Councilmember Gonzales lighting from the walking trail shines bright through his bedroom window: he formally requested that a speaker, he thanked everyone who donated items to Soldier James Ramos, and.asked all to pray for our shield be put up against the light. , Troops. City Manager Makshanoff stated that staff will be responding to question posed by Ms. Soto, Mr. City Mgr Simpson, and Mr. Trung. Comments REPORTS, UPDATES COUNCIL BUSINESS AND ANNOUNCEMENTS -STAFF Rpts, Updates City Manager Makshanoff announced that on Monday, April 23, 2012, the Police Department will be City Mgr conducting a siren test in the Azusa Canyon. Comments Mayor Pro -Tem Carrillo expressed his concern regarding comments made at the podium during public Carrillo participation and the validity of some of those comments. He asked that people take responsibility for Comments their comments and have respects for people in general. Councilmember Gonzales announced that Annual Cinco De Mayo Celebration on April 29, 2012 from 12 Gonzales noon to 6 p.m. Comments Councilmember Macias stated that he respects everyone's comments and thanked everyone for attending Macias the meetings. He stated that he does value the parks in the City, and talked about the changes that have Comments occurred at Veterans' Park. He bid farewell to Father Gustavo who was in attendance at the meeting, and welcomed Matt to the meeting. Councilmember Hanks stated that he looks forward to the completion of the EIR for the proposed parking Hanks structure, to have a full discussion on the issue and see the entire picture of what is being proposed. Comments Mayor Rocha stated that the meeting would be adjourned in memory of Jimmy Rocha and William R. Rocha Johnson. He announced the following: Relay For Life — April 21-22, National Little League Family Day Comments — April 21e, Azusa Cares Workshops: Social Networking Dangers — Saturday, June 16°, September — Divorce Impact on Kids and Parents. November — Diabetes Awareness Month — Councilmember Gonzales speaker, he thanked everyone who donated items to Soldier James Ramos, and.asked all to pray for our Troops. SCHEDULED ITEMS Sched Items None. None The CONSENT CALENDAR consisting of Items D -I through D-12, were approved by motion of Consent Cal Mayor Pro -Tem Carrillo, seconded by Councilmember Hanks, and unanimously carried. Approved 1. The minutes of the regular meeting of April 2, 2012 were approved as written. Min appvd 2. HUMAN RESOURCES ACTION ITEMS. HR Action Merit Increase and/or regular appointments: M. Barbosa Engr Associate. Items Flexible Staffing: R. Sok, Police Records Specialist II, V. Benavidez, Line Mechanic, M. Moore, Line Mechanic. 04/16/12 PAGE TWO 3. Award the contract for Athletic Court Resurfacing (CDBG No. 601409-11) was awarded to California California Sur. Surfacing in the amount of $30.775.00. Athletic Court 4. Approval was given for the purchase of 33 IP cameras and an IP camera server for installation in the ADI police facility in the amount of $51,622.66 from ADI located in Carson, CA in collaboration with IP Cameras LACLEAR. The purchase of this equipment was approved per AMC Section 2-523(d) when there is justification to use a sole source. 5. Bids and specifications for a three year Landscape and Irrigation Maintenance Contract were approved Bids & Specs and authorization was given for formal bidding process. Landscape Irr. e 6. The purchase of radio equipment offered through the reimbursable State of California FY2008 Pur Radio Homeland Security Grant Program (SHSGP) was approved. Equip. SHSGP 7. Approval was given for the new classification of Finance Director at an annual salary range of New Class $139,360 to $160,014. Finance Dir 8. CIP 66112F, Traffic Signal Controller Upgrades was awarded to Republic ITS and approval was given Traffic Sig for a budget amendment in the amount of $33,940. Republic ITS 9. CIP 661120 & 66112E, Pavement Management Project was awarded to All American Asphalt Inc. All American Asphalt Pvmt 10. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA SUPPORTING THE Res. 12-C23 TRANSFER OF ONTARIO INTERNATIONAL AIRPORT (ONT) TO LOCAL CONTROL. Support ONT 11. On recommendation of the Personnel Board, and pursuant to the City of Azusa Civil Service Rules Revised Specs Section 3.5, the revised class specifications for Assistant Director of Customer Care & Solutions were Asst Dir Cust approved. - Care & SIms 12. The following resolution was adopted and entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ALLOWING CERTAIN Res. 12-C24 CLAIMS AND DEMANDS AND SPECIFYING THE FUNDS OUT OF WHICH THE SAME ARE Warrants TO BE PAID. SPECIAL CALL ITEMS None. SUCCESSOR AGENCY RELATED MATTERS Mayor Pro -Tern Carrillo offered a Resolution entitled: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS TO BE PAID OUT OF REDEVELOPMENT AGENCY FUNDS. Moved by Mavor Pro -Tem Carrillo, seconded by Councilmember Gonzales to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE It was consensus of Councilmembers to adjourn in memory Jimmy Rocha and William Johnson. TIME OF ADJOURNMENT: 8:26 P.M. CITY CLERK NEXT RESOLUTION NO. 2012-C25. (City) NEXT ORDINANCE NO. 2012-02. NEXT RESOLUTION NO. 2012-R17 (Former Redevelopment Agency) 04/16/12 PAGE THREE Special Call None Scessr Agney Res. 12-R16 Former Agency Warrants Adjourn in Memory of J. Rocha and W. Johnson CITY OF CLEARLAKE AGENDA MEETING OF CLEARLAKE REDEVELOPMENT OVERSIGHT BOARD CLEARLAKE CITY HALL COUNCIL CHAMBERS 14050 OLYMPIC DRIVE CLEARLAKE, CA 95422 THURSDAY FEBRUARY 16, 2012 1 9:00 A.M. Written material introduced into the. record: Citizens wishing to introduce written material into the record at the public meeting on any item are requested to provide a copy of the written material to the City Clerk prior to the meeting date so that the material may be distributed to the Oversight Board prior to the meeting. CALL TO ORDER ROLL CALL Mayor Joey Luiz Interim City Administrator Joan Phillipe Supervisor Jeff Smith Fire Chief Willie Sapeta Member -At -Large Bill Perkins Lake County Board of Education Retired Superintendent Bill Cornelison Vacant Appointee — Yuba College Chancellor's Office MEETING PROCEDURES All items on the agenda will be open for public comment before final action is taken. Speakers are requested to restrict comments to the item as it appears on the agenda and stay within a three minute time limit. The Chair has the discretion of limiting the total discussion time for an item. As a courtesy to others, please turn off cell phones and any other distracting devices ADOPTION OF THE AGENDA (This is the time for agenda modifications.) PUBLIC COMMENT: This is the time for any member of the public to address the Oversight Board on any matter not on the agenda that is within the subject matter jurisdiction of the city. Please complete a "Speaker Information Card" and present it to the city clerk prior to the start of the meeting. The Brown Act, with limited exceptions, does not allow the Board or staff to discuss issues brought forth under Public Comment. The Board cannot take action on non -agenda items. Concerns may be referred to staff or placed on the next available agenda. Please note that comments from the public will also be taken on each agenda item. Comments shall be limited to three minutes per person. BUSINESS 1. Introduction of Oversight Board Staff: Administrative Services Director/Treasurer (City Finance Director) and Agency Clerk and Administrative Assistant (City Clerk) Recommended Action: No action required Appointment of Board Chair and Vice Chair and Determination of the Meeting Schedule Recommended Action: By motion appoint from the Board's membership a chair and vice - chair Discussion of the Purpose of the Board and Update on Redevelopment Status Recommended Action: Hear staff comments, no action required 4. Discussion of Public Use Properties Recommended Action: Hear staff comments in regard to properties that are considered to be public use properties and determine by consensus that the Board agrees with the determinations for agendizing on a future agenda action for potential transfer of property 5. Discussion on the Process to Sell Properties Recommended Action: Hear staff comments and discuss with no specific action required at this meeting 6. Verbal Report on the Fiscal Status of the Dissolved Agency Recommended Action: Hear staff comments. No action required 7. Receipt of Annual Financial Report of the Agency for Fiscal Year Ending June 30, 2011 and Receipt of Audit Recommended Action: After staff comments and discussion, by motion receive report and audit Request to Authorize the Finance Director to Consolidate Tax Increment Fund Balances Recommended Action: By motion authorize the consolidation of the Tax Increment Fund Balances BOARD STAFF REPORTS BOARD MEMBER REPORTS ADJOURNMENT AMERICANS WITH DISABILITY ACT (ADA) REQUESTS If you need disability -related modification or accommodation, including auxiliary aids or services, to participate in this meeting, please contact Melissa Swanson, City Clerk at the Clearlake City Hall, 14050 Olympic Drive, Clearlake, California 95422, phone (707) 994-5201, ext 106, at least 72 hours prior to the meeting, to allow time to provide for special accommodations. AGENDA REPORTS Staff reports for each agenda item are available for review at City Hall located at 14050 Olympic Drive during normal business hours. Members of the public are invited to come and comment on any item under discussion. Any writings or documents pertaining to an open session item provided to a majority of the Oversight Board less than 72 hours prior to the meeting, shall be made available for public inspection at the front counter at City Hall located at 14050 Olympic Drive during normal business hours. POSTED: February 10, 2012 CITY OF AZUSA MINUTES OF THE CITY COUNCIL SPECIAL MEETING MONDAY, MARCH 26, 2012 — 7:29 P.M3 The City Council of the City of Azusa met in special session at the above date and time in the Azusa Light and Water Conference Room located at 729 N. Azusa Avenue, Azusa, Mayor Rocha called the meeting to order. ROLL CALL PRESENT: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT: City Attomev Carvalho, City Manager Makshanoff, Director of Utilities Morrow, Assistant to the Director of Utilities Kalseheuer, Assistant Director Water Operations Anderson, Assistant Director of Customer Service and Care Vanes, Assistant. Director of .Resource Management Lehr, Public Works Director/Assistant City Manager Haes, Assistant Director of Electric Operations Langit, Director of Economic and Community Development Christiansen, Administrative Services Director -Chief Financial Officer Kreimeier, Library Director Johnson, Director of Recreation and Family Services Jacobs, Public Information Officer Quiroz, Finance Controller Paragas, Director of Information Services Graf, Assistant Library Director Strege, Chief of Police Gonzalez, City Clerk Mendoza, Deputy City Clerk Toscano. PUBLIC PARTICIPATION None. CITY AGENDA ITEM Call to Order Roll Call Also Present Pub Part None City Items Moved by Mayor Pro -Tem Carrillo, seconded by Councilmember Gonzales and unanimously carried to A. Rocha approve request for sponsorship to Alissa Rocha to go toward cost of Azusa High School Cheer Program. Sponsorship UNIFORM RENTAL AGREEMENT Uniform Agmt Moved by Councilmember Hanks, seconded by Councilmember Gonzales and unanimously carried, that in Approved accordance with the provisions of Section 2-523(e) of the Azusa Municipal Code (competitive bidding already completed), approval be given loran agreement between the City of Azusa and Aramark Uniform Services of Riverside, CA, for the purpose of supplying new uniforms to our uniform wearing field staff. The agreement will be for a period of 36 months with two (2) 12 month extensions based upon satisfactory service. Authorization was given for the issuance of a blanket Purchase Order to Aramark for the remainder of the 2011/12 fiscal year in the amount of $9,000; and authorization was given for the issuance of blanket Purchase Orders in the amount of $39,300 each, for the next two years, and $30,250 for the final ten month portion of the agreement. CONSIDERATION OF LETTER OF SUPPORT FOR AB 1600 (TORRES) METRO GOLD LINE Letter of Support FOOTHILL EXTENSION CONSTRUCTION AUTHORITY. AB 1600 Gold Line Moved by Councilmember Hanks, seconded by Mayor Pro -Tem Carrillo and unanimously carried to Approved authorize Mayor to sign Letter of Support for AB 1600 (Torres). FISCAL YEAR 2011-12 MID -YEAR BUDGET REVIEW 11-12 Mid -Year Budget Review Administrative Services Director -Chief Financial Officer Kreimeier presented the Mid -Year Overview A. Kreimeier which included changed conditions and economic indicators, review of FY 2011-12 General Fund balance, Comments and conservative fiscal practices in light of Redevelopment loss and slow economic recovery. He detailed the changed conditions consisted of State Elimination of Redevelopment, GASB Revised Fund Balances, Development Activity in Rosedale, Gold Line Construction Underway and ELS opening at Arrow and Azusa. He presented and explained the General Fund Balance which consisted of the adopted budgetas of June 30, 2011, net revisions and revised estimates. He explained that the estimated balance is basically in redevelopment land held for resale and at the mercy of the State. Question and answer session ensued between Councilmembers and Staff regarding the ending estimated Questions and balance, value of the land, current appraised estimate, property purchased and back up documents, money Answers Staff owed by Redevelopment, Redevelopment and its creation ofdebt, transfer documents, interagency loans, And Council the role of the Oversight Board and litigation. Administrative Services Director -Chief Financial Officer Kreimeier continued on with Economic Indicators, i.e. annual inflation rates, interest rates, regional unemployment, housing prices, and homes sold in Rosedale. He talked about Revenue Issues, i.e. property taxes, sales tax, business license taxes, building permits, Vulcan and Waste Management, and Expenditure Issues i.e. State Budget takings, deferrals and eliminations, Liability/Workers expenses, proposed Fire Safety Contract increase, fuel prices, and employee contract cost impacts. Discussion was held regarding the Fire Safety Contract, Mr. Kreimeier then detailed Preliminary Budget Directives, Budget Philosophy, and FY 2012-13 Budget Issues. He responded to questions regarding cost cutting and discussion was held. CLOSED SESSION It was consensus of Councilmembers to recess at 8:25 p.m. to Closed Session to discuss the following: (Gov. Code See. 54957) PUBLIC EMPLOYEE PERFORMANCE EVALUATION City Attorney The City Council reconvened at 8:43 p.m., there was no reportable action taken in Closed Session. It was consensus of Councilmembers to adjourn. TIME ADJOURNMENT: 8:44 P.M. CITY CLERK Next Resolution No. 12-C21 (City) 0326/12 PAGE TWO A. Kreimeier Comments Closed Session Recess Pub Employee Performance Evaluation Reconvened No Action Adjourn CITY OF AZUSA MINUTES OF THE CITY COUNCIL SPECIAL MEETING. MONDAY, APRIL 2, 2012 — 6:07 P.M. The City Council of the City of Azusa met in special session at the above date and time in the City Manager's Office located at 213 East Foothill Boulevard, Azusa, Mayor Rocha called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: COIINCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT: Also Present City Attorney Martinez, City Manager Makshanoff, City Clerk Mendoza. PUBLIC PARTICIPATION Pub Part None. None CITY AGENDA ITEM City Item INTERVIEW OF APPLICANTS FOR THE CANYON CITY FOUNDATION. Interviews Canyon City Interviews were held. Foundation Moved by Councilmember Carrillo, seconded by Councilmember Macias and unanimously carried to A. Vasquez appoint Art Vasquez to the Canyon City Foundation. Appointed It was consensus of Councilmembers to adjourn. TIME ADJOURNMENT: 6:29 P.M. CITY CLERK Next Resolution No. 12-C21 (City) Adjourn CITY OF AZUSA MINUTES OF THE CITY COUNCIL SPECIAL MEETING MONDAY, APRIL 23, 2012 — 8:00 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 Conference Room located at 729 N. Azusa Avenue, Azusa. Mayor Rocha called the meeting to order. ROLL CALL PRESENT: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT: City Attorney Ferre, City Manager Makshanoff, Public Works Director/Assistant City Manager Haes, Director of Economic and Community Development Christiansen. Finance Controller Paragas, Police Captain Momot, City Clerk Mendoza, Deputy City Clerk Toscana. PUBLIC PARTICIPATION Call to Order Roll Call Also Present Pub Part Mr. Jorge Rosales addressed Council stating that he is still awaiting response to questions he submitted J. Rosales regarding the ROPS and FOPS and their amendments. Comments SUCCESSOR AGENCY ITEM ' Successor Agency ENFORCEABLE OBLIGATION PAYMENT SCHEDULE AND RECOGNIZED OBLIGATION FOPS and ROPS PAYMENT SCHEDULE REVISIONS. Payment Schedule Revisions Mayor Pro-Tcm Carrillo offered a Resolution entitled: A RESOLUTION OF THE SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT Res. 12-R17 AGENCY OF THE CITY OF AZUSA APPROVING AND ADOPTING AN AMENDED EOPS ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO AB I X 26. (For the period of August 2011 to July 2012 pursuant to AB IX 26.) Moved by Mayor Pro -Tem Carrillo, seconded by Councilmember Hanks to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Mayor Pro -Tem Carrillo offered a Resolution entitled: A RESOLUTION OF THE SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT Res, 12-RI8, AGENCY OF THE CITY OF AZUSA APPROVING AND ADOPTING THE AMENDED RODS RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO AB IX 26. (For the period of January 2012 to July 2012 pursuant to AB 1 X 26.) Moved by Mayor Pro -Tem Carrillo, seconded by Councilmember Hanks to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Mayor Pro -Tem Carrillo offered a Resolution entitled: A RESOLUTION OF THE SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT Res. 12-RI9 AGENCY OF THE CITY OF AZUSA APPROVING AND ADOPTING THE AMENDED Additional RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO AB IX 26. (For the period of ROPS July 2012 to December 2012 pursuant to AB IX 26.) Moved by Mayor Pro -Tem Carrillo, seconded by Councilmember Hanks to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEM13ERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: COUNCILMEMBERS: NONE' ABSENT: COUNCILMEMBERS: NONE The City Council recessed at 8:09 p.m. and reconvened at 8:20 p.m. Recess City Attorney Ferre noted change in description in Closed Session item No. 2, "Under Negotiation should CityAttomey read: Terms of a Lease Termination" instead of Price and Terms of Sale. Comments CLOSED SESSION Closed Session It was consensus of Councilmembers to recess at 8:21 p.m. to Closed Session to discuss the following: Recess to Closed Session I, Gov. Code See. 54957.6 —CONFERENCE WITH LABOR NEGOTIATOR Conf w/Labor City Negotiators: City Manager Makshanoff Negotiator Organizations: ACEA (Azusa City Employees Association), AMMA (Azusa Middle _ Management Association), SEW (Service Employees International Union), and IBEW (International Brotherhood of Electrical Workers. 2. Gov. Code Sec. 54956.8 - REAL PROPERTY NEGOTIATIONS Agency: City of Azusa City Negotiators: City Manager Makshanoff Negotiating With: CBS Outdoor Under Negotiation: Terms of a Lease Termination. Address: 880 S. Azusa Avenue, Azusa, CA 91702 The City Council reconvened at 9:14 p.m., there was no reportable action taken in Closed Session. It was consensus of Councilmembers to adjourn. TIME ADJOURNMENT: 9:15 P.M. CITY CLERK Next Resolution No. 12-C26 (City) Next Resolution No. 12-R20 (Agency) 04/23/12 PAGE TWO Real Property Negotiations CBS Outdoor Reconvened No Action Adjourn CONSENT CALENDAR TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: KERMIT FRANCIS, INTERIM DIRECTOR OF HUMAN RESOURCES/PERSONNEL OFFICER VIA: JAMES MAKSHANO CITY MANAGER DATE: MAY 7, 2012 SUBJECT: HUMAN RESOURCES ACTION ITEMS RECOMMENDATION It is recommended that the City Council approve the following Personnel Action Requests in accordance with the City of Azusa Civil Service Rules and applicable Memorandum of Understanding(s). A. MERIT INCREASES AND/OR REGULAR APPOTNTMF.NTS DEPARTMENT,+. ;NAME, CLASSIFICATION EFFECTIVE RANGE/STEP Derek Baird Water Distribution Worker III FROM/TO :. , DATE ,: BASE MO. Line Mechanic 04/26/2012 SALARY . UTL Steve Gonzalez Water Distribution Worker I Merit Increase 5167/4 To: Park Maint. Worker III 04/05/2012 $4,393.15 B. FLEXIBLE STAFFING PROMOTION: The following flexible staffing promotional appointments have been requested by department head (s) pursuant to the Rules of the Civil Service Svstem. .DEPARTMENT -NAMECLASSIFICATION CLASSIFICATION' . EFFECTIVE RANGE/STEP Derek Baird Water Distribution Worker III FROM/TO :. , DATE BASE MO. Line Mechanic 04/26/2012 SALARY RFS Ramon Arevalo From: Park Maint. Worker II 04/17/2012 4174/4 To: Park Maint. Worker III $4,666.89 F. SEPARATION: The following separations are submitted for informational Durnoses .DEPARTMENT NAME CLASSIFICATION' . EFFECTIVE DATE UTL Derek Baird Water Distribution Worker III 04/12/2012 UTL Thomas Jackson Line Mechanic 04/26/2012 FISCAL IMPACT There is no fiscal impact, as positions listed are funded in approved department budgets. CONSENT CALENDAR ITEM TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: JOE JACOBS, DIRECTOR OF RECREATION AND FAMILY SERVICES VIA: JAMES MAKSHANOF ,CITY MANAGER DATE: MAY 7, 2012 SUBJECT: REQUEST FOR PROPOSAL FOR ON SITE COOKING AT THE AZUSA SENIOR CENTER FOR THE SENIOR MEAL PROGRAM RECOMMENDATION: It is recommended that City Council approve the Request for Proposal for on site cooking at the Azusa Senior Center for the Senior Meal Program, allowing implementation of the open bid procedure as required by the Los Angeles County Area on Aging to secure senior meals for Fiscal Year, 2012 - 2016. ` BACKGROUND: Since 1978, the City of Azusa has provided Sr. Meals. Upon receipt of Federal Older American Act funding, these meals are funded by the Los Angeles County Area Agency on Aging, who require all contractors to go out to bid every four years during the County open bid process to award those federal funds. The Los Angeles County Area Agency on Aging then will renegotiate with their contractors for years two, three, and four and allow the City of Azusa to do the same with the food service contractor. Due to the cost of providing these meals, the attached Request for Proposal allows the contractorthe opportunity to coordinate, prepare and deliver additional Title IIIC meals to neighboring communities in an effort to make the venture fiscally prudent to all, with an emphasis on specifically keeping Azusa's meal costs as low as possible. This goal can be accomplished by the contractor preparing all meals in the Azusa Senior Center kitchen. Currently, the program serves (400+) unduplicated individuals and 36,000 congregate and home delivered meals annually. FISCAL IMPACT: Our contract with current caterer is $105,400. The fiscal impact for the subsequent years in unknown at this time, however, we were recently awarded a grant for $101,000 by the Los Angeles County Area Agency on Aging for fiscal years 2012-2016. Attachment -Proposal CITY OF AZUSA REQUEST FOR PROPOSALS FOR ON-SITE COOKING AT THE AZUSA SENIOR CENTER FOR THE SENIOR MEAL PROGRAM FY 2012-2016 May 8, 2012 To: Interested Bidders Title III Senior Nutrition Program From: Lenore Gonzales, Recreation Supervisor Azusa Senior Citizen Nutrition Program 740 North Dalton Avenue Azusa, CA 91702 Subject: Invitation to Bid for Food Services The Azusa Senior Citizen Nutrition Program has been designed and created to provide a balanced nutritional noontime meal for senior citizens, coupled with recreational, educational and social services. The meals will be served at Noon, Monday thru Friday at the Azusa Senior Center, 740 N. Dalton Avenue. There will be a few evening special event meals requested along with special event and holiday menus served at noon on weekdays as requested. There will also be monthly birthday celebrations in which a birthday cake and ice cream will need to be provided. The program is partially funded through the Los Angeles County Area Agency on Aging using grant funded under Title III C-1 of the Older American Act, as amended 1978. Based on receipt of these funds, the program will provide a service level as follows`. Monday through Friday (250) days per year at approximately (95) meals each day for congregate service and (50) each day to be packaged for delivery to homebound seniors. Specifically, the City of Azusa desires that these meals be prepared on site in the Senior Center Kitchen at 740 N. Dalton Ave., Azusa, CA 91702. For this to be cost effective for the City and the successful bidder, it is anticipated that the successful bidder shall additionally subcontract with other Title III funded meal programs to provide their meals. Please review the accompanying notice inviting bids and the attached specifications. Bids must be submitted on the forms provided. 1 11 CITY OF AZUSA NOTICE OF OPEN INVITATION TO BID FOR TITLE III' C-1 .(CONGREGATE.MEALS) AND C-2 (HOME DELIVERD_ MEALS) NUTRITION PROGRAM FOR THE ELDERLY STATEMENT OF NEED AND PURPOSE The City of Azusa.(referred to herein as the Contractor) has requested funding under Title III -C of the Older Americans Act (OAA) of 1965:as amended. Its purpose is to serve hot or otherwise appropriate meals daily to persons 60 years of age or older. These meals must conform to the delivery and nutritional requirements herein. The dates of the awarded contract will be from July 1, 2012 to June 30, 2016. The CITY CLERK will receive sealed bids until 4 p.m. on Thursday, May 24, 2012, for catered food service operation for senior citizens of the Azusa Senior Center. Bids will be opened publicly at 4:00 p.m. of said day in the office of Azusa City Clerk. Bids must be made on the proposal form only which is in the bidders packet. All forms and bid specifications are obtainable at: City of Azusa Senior Center Attn: Lenore Gonzales, Recreation Supervisor 740 N. Dalton Ave., Azusa (626)812-5115 Each bid must be accompanied by cash, a cashier's check or a bid bond made payable to the City of Azusa for ten (10%) percent of the total amount of the bid for the period covered by the proposal. This bid bond or security is a guarantee that the successful bidder will, with ten (10) days from the date of the award of the contract, enter in a written contract with the City of Azusa for said work in accordance with said specifications. The bid bond or security shall be forfeited to and remain the property of the City of Azusa in the event that the successful bidder fails to execute said contract as required by the specifications. The successful bidder shall furnish Performance Bond in an amount of 10% at bidder's expense. Bidders will be required to gain an independent understanding of applicable State and Federal regulations, and specifically the HACCP requirements and CURFFL contained in the Los Angeles County Standard Operating Procedures Manual for Service Providers. To do so, bidders may contact the Los Angeles County Health Department or other appropriate local or State agencies for food service program regulations. BID REVIEW Proposals should be submitted in two (2) sections: 1) . Food Service Specifications 2) Bid Price Fact Sheet and Bidder Information Proposals will be evaluated on the following criteria: a. Cost b. Capability to Provide Service C. Proven Competency d. Quality of Product e. Proximity of Sites to Commissary; Transportation Acceptance of any proposal thereof is contingent upon receipt of sufficient funds by Nutrition Service Provider from the Los Angeles County Area Agency on Aging. The City of Azusa reserves the right to reject any and all bids and to waive any informality or technical defects which it deems is in the best interest of the Los Angeles County Area Agency on Aging. The AAA shall have final review and acceptance of recommended bid subject to bid meeting. AAA specifications for costs, food specifications and responsible bidders. 2 ATTACHMENT i' FOOD SERVICE SPECIFICATIONS Between City of Azusa And STATEMENT OF WORK AND SCHEDULE During the time of performance as set forth herein, the Subcontractor shall furnish all food, labor and equipment necessary to prepare and deliver individual meals and or bulk food fonpersons 60 years of age and older, in compliance with the Title III Congregate and Home -delivered Nutrition standards as described in Federal, State, and County -regulatory statutes, the California Health and Safety Codes, more specifically the California Uniform Retail Food Facilities Law (CURFFL), revised, effective January 2, 2002, the Older Americans Act (OAA), Amendment of 2000, and the Area Agency on Aging (AAA) Policy and Procedures. Each meal shall provide a minimum of 33 1/3 of the current Recommended Daily Allowance as established by the Food and Nutrition Board. National Academy of Sciences Research Council (1989). Trans fats may not be used in the preparation of meals To assure that meals are prepared in a safe, sanitary environment in compliance with the California Health and Safety Code, the AAA Policies and Procedures and Contracts Management Manual, the Subcontractor shall comply with the following requirements: The Subcontractor shall employ a Part-time Registered Dietician minimum 20 hours a week who possesses a Bachelor's Degree and or Master's Degree in Nutrition/Dietetic with an institutional food service management emphasis from an accredited college or university, for supervision of the food services operation within the catering company and/or central kitchen, or The Subcontractor shall hire a qualified Food Service Manager who possess a B.S. degree in Food and Nutrition with emphasis on food service management or restaurant management from an accredited college or university, plus two (2) years professional experience as a food service supervisor: no less than six (6) years of experience in the food service industry at a supervising level can be substituted for the 4 year degree requirements. Subcontractor shall ensure that Subcontractors staff posses a Food Handler Certification Card issued by the State of California. The Subcontractor must submit, to the Contractor, the registration I.D. number and expiration date of Registered Dietician along with complete verifiable resumes of the Registered Dietician or Food Service Manager for the County's AAA approval. Subcontractor must maintain a grade of "A" or better from the Los Angeles County Department of Health Services based on inspections conducted by LACDHS for food services. Contractor must submit annual inspection reports. 3 The County -may, at its sole discretion, waive this requirement or for repeated deficiencies of non compliance, require the Subcontractor to fill both positions, and/or to expand the ,required positions to full time positions. 1. NUMBER OF MEALS The minimum requirement is estimated at 35,010 meals and the maximum requirement is estimated at 36,500 meals with the following breakdown: Indicate N/A if not applicable NOTE: THE NUMBER ABOVE ARE APPROXIMATE AND MAY VARY DUE TO LOS ANGELES COUNTYAREA AGENCY ONAGING FUNDING. *Other food items which accompany frozen. meals. Do not count in total annual meal column, but do count in cost per meal column. 2. DELIVERY a) The meals shall be delivered as follows: Meal Location: Azusa Senior Center Approximate Number of Meals per day: 145 Time Food Preparation is Completed: 10:15 a.m. Time Food Leaves Kitchen for Home Delivered Meals: 11:00 a.m. Times Meals are Served at the Site: Mondays at 11:30 (due to 1:00 p.m. Bingo Program) Tuesday - Friday at Noon rd fiOTAL ANNUAL MEALS CATERED COST PER MEAL C-1 C-2 C-1 C-2 Monday - Friday 22,800 12.000 Saturday Sunday Holidays Box Lunches Breakfast (Mon — Sun) Frozen Meals210 *Other Food Items GRAND TOTAL ANNUAL MEALS 22,800 12,210 NOTE: THE NUMBER ABOVE ARE APPROXIMATE AND MAY VARY DUE TO LOS ANGELES COUNTYAREA AGENCY ONAGING FUNDING. *Other food items which accompany frozen. meals. Do not count in total annual meal column, but do count in cost per meal column. 2. DELIVERY a) The meals shall be delivered as follows: Meal Location: Azusa Senior Center Approximate Number of Meals per day: 145 Time Food Preparation is Completed: 10:15 a.m. Time Food Leaves Kitchen for Home Delivered Meals: 11:00 a.m. Times Meals are Served at the Site: Mondays at 11:30 (due to 1:00 p.m. Bingo Program) Tuesday - Friday at Noon rd b) The Contractor reserves the right to add or delete meal sites or designate alternate meal locations, as appropriate, subject to approval by the AAA. C) The Contractor may change the days and time of delivery and service by giving the Subcontractor seven (7) days notice. d) The Contractor may change the number of meals to be delivered to any of the meal locations by notifying the Subcontractor by a.m./p.m. of the day prior to delivery. N/A e) The Subcontractor shall deliver/serve the meals no more than 30 minutes prior to or 15 minutes after the agreed upon serving time. 0 Box lunch delivery time may be as early as 8:00 a.m., as lone as appropriate holding facilities are available for Perishable food items and meals are trans orted under appropriate packing, heating and cooling temperature requirements g) The Contractor reserves the right to require Subcontractor to deliver food on all holidays that food service is needed. h) Foods for congregate meals shall be served by Contractor, within two (2) hours after food preparation has been completed. i) The last home delivered meal shall be delivered by Contractor within two and one half hours (2 hours, 30 minutes) after food preparation has been completed. 3 3. DELIVERY SERVICE SPECIFICATIONS a) Meals are to be delivered in (bulk/individual) pre packed servings. b) The Subcontractor shall supply the. following food service items. ITEM (LIST) Dinner Plates Soup Bowls Flatware Paper Napkins Table Covering Aluminum Trays — C2 Disposable Bowls Sandwich Bags Gloves Aprons Caps Hair Nets Cleaning supplies for dishwasher and other cooking appliances such as stove, ovens, and hot box. Dinner & Dessert Plates for Evening Dinner Salad Bowls for Evening Dinners SPECIFICATIONS 2 5 Compartment Styrofoam trayJdisposable 8 oz Styrofoam/disposable w/ lids Knives, forks, spoons (disposable/heavy grade) Placemats 3 Compartment w/ lids 4 oz Styrofoam w/ lids Plastic Plastic/disposable Plastic/disposable Paper C) The Subcontractor shall provide all serving trays and utensils, warming, refrigerating and freezing equipment, where necessary, for the maintenance of proper temperatures as specified herein, and shall provide servicing of the equipment and/or replacement (depending on needs of project). Indicate N/A if not applicable. d) All food must be packaged and transported under conditions that will ensure temperature control to prevent bacterial contamination, spillage, and/or insect infestation. All hot foods should be packaged individually or in bulls containers to ensure a minimum delivery temperature of 140°F. All cold foods must be packaged to ensure a maximum delivery temperature of 40°F. All foods intended to be delivered frozen shall be packaged so as to maintain a hard frozen state until such food reaches point of delivery Temperature of bulk and home -delivered meals must be taken daily at the end of production/packaging and on delivery at the nutrition site by the Subcontractor and Contractor. Hot and cold foods must be placed immediately into insulated hot and cold transport equipment upon completion of packaging. . Daily written documentation of temperature logging monitoring must be kept by Subcontractor and will be subject to audit by the centralized Dietary Administrative Support Services R.D and AAA nutritionist. 3 The sites shall be assumed correct on shortages unless the caterer proves them wrong. All calls regarding shortages and food replacement will be communicated by the Contractor's office. e) Meals must be delivered in refrigerated trucks and or approved for bulk insulated containers for hot pack and cold pack. Delivery standards shall comply with applicable local health department regulations. f) Food and supplies must be packed and handled in a sanitary manner so as to assure absence of contamination and spillage. g) The program may require replacement of any cold food which is received on site at above 40°F and any hot food that falls below 140°F. h) Food shortages and/or spoiled foods which are reported to the caterer by agreed time of delivery must be replaced or the enclosed deduction, schedule will be utilized. i) Packaging of food for delivery to the sites will be negotiated as mutually acceptable to the Contractor and Subcontractor. Sites may differ on packaging of some items due to available site equipment and time distance constraints. j) The Subcontractor shall be responsible for cleaning and care of equipment returned to his facility each day. k) The Subcontractor shall place food in area designated by meal location managers. . 1) Food shall be in transport no longer than N/A minutes after packing. m) Food shall be kept in heat retaining equipment no longer that 90 minutes prior to serving. n) Each delivery shall be accompanied by a delivery slip, in triplicate, designating number of meal and supplies delivered. Project Director or designated person will sign receipt, if in order, and one copy shall be left the same. ' o) Instructions shall be attached to each food product delivered indicating name of meal location, number of servings, size of serving, and size of utensil to be used in serving. P) Cake, combread, and casserole dishes, i.e. meatloaf, lasagna, tuna noodle casserole, shall be pre -scored by the Subcontractor for the appropriate number of servings. q) Subcontractor shall provide home delivered meal containers in an amount not to exceed 35% of the total number of meals ordered. r) All Subcontractor delivery equipment shall be removed from the meal location by N/A p.m. Contractor is not responsible after this time. S) The Subcontractor shall provide a back-up delivery system in the event of vehicle breakdown. t) Electrical items required to be provided herein shall have the UNDERW_RITER'S LABORATORY or LOS ANGELES ELECTRICAL TESTING LABORATORY approval and meet all current OSHA and COSHA requirements, where applicable. U) The Subcontractor shall comply with all Federal, State, and local health department laws and regulations. Subcontractor shall provide Contractor with a current copy of the health certificate and any corrected deficiencies with bid. To ensure that all regulations are followed the Subcontractor must have a qualified food service manager or part-time registered dietician (20 hours week) or staff who will assure that meals are prepared in a safe and sanitary condition throughout meal service operation. V) Authorized representatives of the Contractor, County, Dietary Administrative, State, and Federal shall have the right to inspect food preparation, storage, and packaging sites during the term of the contract. 4. MEAL STANDARDS a) A chemical analysis of any food delivered by Subcontractor may be requested by the Contractor or Area Agency on Aging at any time. The Subcontractor agrees to cooperate in having the analysis done. If the analysis discloses that the food does not comply with required meal specifications, the Subcontractor shall be liable for the cost of this analysis and meals served to seniors out of compliance. b) The Subcontractor shall be liable for meals that do not meet the nutritional standards and requirements, are spoiled or unwholesome at time of delivery, are incomplete or insufficient in number ordered, or are delivered after the time specified by the Contractor. In the event the Subcontractor fails to deliver complete meals, other foods, or supplies as agreed upon, the Contractor may provide a substitute meal with emergency meals or supplies purchased from other places and charge the cost of the purchased meal to the Subcontractor. The replacement cost shall not exceed 200 percent of the contract catered meal cost. C) If any portion of a meal other than the entree is delivered in an unacceptable condition, such as incorrect temperature (potentially hazardous)* less than contracted portion, spoiled or too late, the Subcontractor shall be liable for the cost of that portion. If the entree is unacceptable the Subcontractor shall be liable for the cost of the entire meal. In order to ensure conformance to the above, the delivery driver shall remain at the site until the food is checked by the location manager. All shortages shall be noted on delivery slop for proper crediting. d) The Contractor agrees to monitor and evaluate meal preparation, delivery, transportation, and general standards of meal service. e) The Subcontractor and Contractor both agree to implement and/or maintain a Hazard Analysis and Critical Control Point (HACCP) system as required by the AAA. o. 5. MENUS (Please see attached samples) a) All menus shall be in compliance with Title III -C meal pattern requirements. b) A'6 week cycle menu shall be used that is written once yearly C) The Contractor has the responsibility for menu writing with input from the Project Council and Subcontractor. The menu shall be approved by the Dietary Administrative Support Services Contractor services dietician. d) The Contractor is responsible for typing and duplicating menu. e) All menus must be signed by the Project Director Project Council Chairman or designee, the Dietary Administrative Support Services Contractor dietician, and, certified by the AAA nutritionist prior to the start of the menu cycle. f) All menu substitutions by the Subcontractor shall be submitted in writing for approval by the Project Director or Dietary Administrative Support Services Contractor dietitian at least 2 days prior to serving date. The Subcontractor may, however, in an emergency situation, make menu substitutions on verbal approval of the Project Director of Dietary Administrative Support Services Contractor dietician, with a written notice to follow for documentation. g) Provision shall be made by the Subcontractor to provide in-service training regarding food sanitation and safety for their food service staff. Documentations of such training shall be submitted to the Contractor. The County Area Agency on Aging may require the Contractor, based upon major finding of non compliance items in food and safety, to provide additional food service training. *See definition of Potentially Hazardous Food. AAA Standard Operating Procedures Manual. 6. MEAL PATTERN SPECIFICATIONS a) All food must be of the highest quality standard and conform to USDA requirements. It must be prepared in a manner to preserve optimum flavor and appearance while retaining nutrients and food value. Special consideration should be given to tenderness of meat because of the age of our participants. The Subcontractor irresponsible for assuring its high quality before it is sent to the meal sites. b) Minimum grades for all foods shall be as follows: 1. Beef: USDA Grade A choice 2. Pork: USDA Number 1 (as defined in S.R.S., Number 171, U.S. Standards and Grades of Pork Carcasses) 3. Lamb: USDA choice 4. Poultry: USDA Grade A to be used for all fresh or frozen poultry products. Necks, backs, wings alone shall not be used unless prior approval of the Project Director or project designee. Reconstructed roll products are not acceptable. 5. Variety Meats: Grade Number 1 from USDA Government inspected plants. The fat content of ground meat cannot exceed 15% to 20%. 6. Fish and seafood must be fresh or frozen and be a nationally distributed brand packed under continuous inspection of the U.S. Department of Interior. 9 7. Dairy Products:. The following is to be used as minimum specifications for all graded dairy products: a. Eggs, fresh USDA or State Graded A b. Cheese, USDA Grade A, non -processed cheese. C. Milk, non-fat, low-fat, shall be required daily. 8. Fresh fruits: USDA Fancy to USDA No. I to be used for all graded fresh fruits as a minimum standard. 9. Fresh vegetables: USDA Fancy and USDA No. 1 to be used for all graded fresh vegetables as a minimum standard. 10. `Frozen fruits and vegetables: USDA Grade A is to be used for all graded frozen 'fruits and vegetables as a minimum standard. 11. Subcontractor must keep on file specification sheets showing nutrient content of purchased prepared foods. 12. Sulfites and Monosodium Glutamate (MSG) are not acceptable for this program. 13. Trans fat free oils shall be used in food preparation. SUPPLIES SPECIFICATION PROCEDURES The Subcontractor shall provide disposable table service based upon the supplies specification included. These supplies shall be ordered and delivered weekly at each site. A minimum of one week's supply on hand at all times. The Contractor shall supply order forms and monitor supply usage. The Subcontractor shall furnish, as part of supplies, the cleaning and other miscellaneous supplies (see Supplies Specification Sheet). These supplies will be ordered as needed. The Contractor shall supply order forms and monitor supply usage. (This is subject to negotiations.) EVALUATION OF SUBCONTRACTOR The Contractor and the Dietary Administrative Support Services Dietitian shall evaluate the Subcontractor's performance to determine of the Agreements is in compliance in meeting requirements. All evaluations must be sent to the AAA nutritionist. RECEIPTS AND INVOICES PROCEDURES 1. The Subcontractor shall issue daily delivery receipts to each site. After the close of each month, the Subcontractor will furnish to the program an invoice of meals ordered by the program the previous month. The Contractor will pay such invoices for the prior month within (30) days after receipt of same invoice or as agreed between the Contractor and Subcontractor. 10 Menu Writing Specifications 2012-2013 COUNTY OF LOS ANGELES AREA ON AGING TITLE IIIC MENU WRITING SPECIFICATIONS 2012-2012 STATEMENT OF WORK These menu writing specifications and requirements are developed to facilitate the menu writing process and encourage agencies and caterers to meet the Dietary Reference Intakes (DRIs) included in the Dietary Guidelines for Americans 2010. The specifications will assist agencies and project dieticians in providing nutritious, appetizing, tasty, and cost effective Title IIIC meals for the seniors we serve. GENERAL SPECIFICATION SHEET AND RECIPE REQUIREMENTS 1. If a food item is purchased ready prepared, a food specification sheet is required.. Serving size, nutritional analysis, and brand name should be included. Copy the Nutrition Panel on the food label, or obtain Food Specification sheets (cut sheets) from your suppliers. This year we will establish a baseline for amount of sodium allowable in various processed foods. 2. Experiment with herbs, seasonings and flavor blends that do not contain sodium, or try commercial low salt (flavor enhancers. 3. If your agency or caterer develops a low sodium recipe popular with seniors, PLEASE SHARE IT. 4. Recipes should include a HACCP plan detailing food handling procedures. These are required for all menu items made by the Central Kitchen or Caterer. 5. Each agency and/or caterer may use standardized HACCP recipes, or may modify their own recipes to meet HACCP requirements. Standardized recipes are included in the L.A. County Foodservice Operating Procedures (SOP) Manual. 6. Ethnic menus, Boomer Salad menus, and Asian, Latino and Boomer Salad HACCP recipes are also available from the DASS contractor. 7. HACCP recipes developed by agencies/caterers should follow the recipe format found in the SOP Manual, or follow the format outlined in the National Restaurant Association's (MRA's) HACCP Reference Book Each recipe should note the Critical Control Points (CCP,$) and potentially Hazardous Foods (PHF,$) 8. Agencies and caterers are encourages to try new recipes. The recipe must be put in a HACCP format when it is added to the cycle menu. 9. All food specification sheets and HACCP recipes must be on file by July 1, 2012. Menu Writing Specifications 2012-2013 GENERAL MENU REQUIREMENTS 1. All menus using nutritional analysis must be updates for nutritional content. Nutritional content can be averaged each week to see if nutrient standards have been met. However, the menu must contain at least 25mg Vitamin C everyday, 250 ug Vitamin A on at least three different days of the week. 2. The component meal pattern template may be used instead of nutrition analysis for determining nutritional adequacy. If the component method is used, all menu component boxes must be filled in. The menu must meet the Senior Meal Pattern requirements. The menu must contain at least 25 mg Vitamin C everyday, and 250ug Vitamin A three times per week in a 5 day program, or four times per week in a 7 day program. Vitamin C sources must be indicated by one *, Vitamin A sources must be indicated my two **. Two foods can be used to provide the Vitamin C or the Vitamin A. The menu must contain four good sources of fiber every week. (See list of high fiber foods). Sodium that exceeds 1,OOOmg must be noted with three *** and.cannot exceed two meals per month (3 in the 6 week menu cycle). Potassium rich foods must be on the menu consistently and noted with four ****. If for any reason the menu does not meet the menu component requirements, the Nutrition Project Director must obtain the approval of the AAA Nutritionist and/or DASS RD. 12 Menu Writing Specification 2012-2013 3. Senior Component Meal Pattern Requirements: Food/Group Required Servings Per Meal: 2005 Dietary Guidelines Servings Per Meal: Meat or meat alternate 3 oz 3 oz. servings whole or ground meats, chicken or fish. Limit ground meat to two times per week. 2 oz 2 oz. meat of meat alternate used in casserole dishes. Limit casseroles to two times per week. 2 oz. meat or meat alternate used in salad entree recipes. 2 oz. meat or meat alternate used in sandwich recipes. Limit sandwiches to one time per week. Vegetable/Fruit 2-3 servings 1 to 1 '/2 cups total servings of vegetables and fruits. Serve 3 servings a minimum of 2 times per week. %2 cup lettuce counts as '/� serving. %2 cup pr 1 piece of fruit for dessert counts as 1 serving. Bread or Grain 1-2 servings 71to 2 servings per meal such as 1 slice whole grain bread or %2 cup rice pasta. Frequently use brown rice, or whole grain pasta. Use unusual grains like quinoa or bilgur. Serve two servings a minimum of one time per week 3 of the 6 servings per week must be whole grains (3gms fiber/serving). %2 of all grains .must be whole grains. Milk 1 serving 1 cu : Serve 1% fat or non-fat milk. Fats Optional -1 serving 1 teaspoon or equivalent measure. Trans fat free Margarine Dessert 1 serving fruit,/2 cup fruit, pudding, or small (I oz.) serving grain/bread, or dairy of cake, cookies. If a dessert containing trans fat is served, fruit must be available alternative choice. Beverages 1 serving 6 to 8 oz. water. Optional beverages (regular and decaffeinated coffee and tea) do not contribute to meeting 1/3 RDA and are not an allowable AAA expense. 4. All cycle menus shall be planned for a minimum of five weeks or a maximum of six weeks, approved by the agency dietician, and approved by DASS contractor prior to submission for certification by the AAA Nutritionist. Menus must be certified once per year. 13 Menu Writing Specifications 2012-2013 5. To increase variety, include entree alternatives in the cycle. The agency can serve alternate one in the first month, alternate two in the next cycle. Menus will be analyzed using both alternates. 6. Two to four times a month, have a "Choice Day" when the seniors can select one of two entrees served. Pair a popular item like pork chops with one not so popular, like fish to increase the variety of entrees served. 7. The menu cycle should include holiday meals, ethnic meals,.box lunches, special breakfast and/or dinner menus.' Special menus should be substituted in the menu at least once per month to add variety and interest. The DASS RD must approve all menu substitutions. 8. Serve and entree salad a minimum of twice a month during July, August, and September. 9. Serve soup with all sandwich and salad meals on the standard menu. 10. Menus shall reflect seasonal availability of food. The term "Seasonal fruit" may be listed on the menu no more than once per week. If the fruit is the Vitamin C source, the type of fruit must be identified. 11. Menus must be typed, the responsibility of the agency, not the dietician. 12. The Project's Registered Dietician must carefully review the menus after they have been typed to catch and correct any errors. 13. Menu cover sheets must be completed properly with dates and signatures of the Project Director, the Project Council Chairman, and the Project Registered Dietitian. Menus must list the dates served. 14. WHEN THE MENU HAS BEEN APPROVED BY THE PROJECT RD, E-MAIL ONE COVER SHEET AND ONE COMPLETE MENU TO THE DASS CONTRACTOR. BE SURE THE AGENCY MAINTAINS A COPY. DO NOT FAX MENUS. MENUS MAY 'BE SNET BY U.S. MAIL TO THE DASS CONTRACTOR. 15. The certified cycle menu for each week shall be posted in a conspicuous spot in the kitchen at each congregate meal site; the Site Manager shall check the certified menu for the scoops and ladles needed to serve each meal. The approved menu for the month shall be posted in the site's dining room. Monthly menus shall be available for seniors. 16. ALL MENU SUBSTITUTIONS MUST BE PRE -APPROVED BY THE PROJECT REGISTERED DIETICIAN. SERVING UNAPPROVED MENU CHANGES MAY RESULT IN DISALLOWED COSTS FOR THE MEALS BY THE AAA. 17. ALL SPECIAL EVENTS MENUS MUST BE PRE -APPROVED BY THE PROJECT REGISTERED DIETITIAN, SERVING UNAPPROVED MENU CHANGES MAY RESULT IN DISALLOWED COSTS FOR THE MEALS BY THE AAA. 18. Most meals providing one-third of the RDA would contain on average approximately 550 to 700 calories. This must be no less than a minimum of 550 calories, however, you may provide more calories to a high 900 calories per meal on a limited basis. 14 Menu Writing Specifications 2012-2013 19. A No -Added Salt (NAS) diet should be followed. Sodium may be averaged over the week to provide no more than 750-1,000mg of sodium per meal. Target sodium per meal is 750mg. LIMIT HIGH SODIUM MEATS OR CHEESE TO TOTAL THREE OUNCES PER MONTH (1, 3 -OZ SERVING, OR DIVIDED UP IN 1 OZ SEGMENTS.) If sodium content in. the meal is over 1,000mg, the meal must be identified on the menu as a high sodium meal by using three ***. A high sodium meal cannot be provided more than twice per month and three times per six-week menu cycle, excluding ethnic menus. When possible, use low sodium cheese and meats. The sodium levels of all processes foods MUST be listed on the menu. It is the caterer's responsibility to provide this information during the menu planning phase. This would include such items as meat lasagna, stuffed cabbage, stuffed peppers, breaded meat or chicken patties, etc. 20. Low sodium products to make soups, gravies, and sauces MUST be used. Check, duplicate, and save NUTRITION FACTS from the labels on sauces, salad dresses, and other prepared foods. Use herbs, spices, and lemon to enhance the flavor of food prepared. Do not use monosodium glutamate. 21. Limit use of ground meat or poultry to twice per week for 5 days per week programs and to three times per week for 7 days per week programs. One of the products must be formed ground meat product. 22. Encourage low fat methods of preparation (bake instead of fry), and use of reduced fat products such as 1% and nonfat milk. Meals should contain no more than 30 to 35% total calories from fat. 23. Trans -fat free oils must be used in food preparation. Trans -fat free prepared entrees, crackers, and desserts shall be served. A trans -fat free prepared food contains less than 0.5 grams trans -fat per serving. 24. During FY 2012-2013plan to serve a totally trans -fat free prepared menu. Agencies may occasionally serve food containing trans fats if the substitute trans -fat free product is considerable more expensive. Obtain the Project RD's approval for including food containing trans fats. 25. If a dessert containing trans -fat is served, mark the menu with an exclamation mark 'T' and provide fruit as a substitute for seniors who do not want the trans -fat containing dessert. 26. Food items shall be varied within the week and within the menu cycle. a. Avoid having the same entree, fruit, vegetable or dessert on the same day of the following week. For example, do not serve turkey on Monday of two consecutive weeks. b. Do not use the same meat, poultry, starch, vegetable, or fruit, even in a different form, two consecutive days in a row. For example, do not serve apple juice on Monday and baked apple on Tuesday. C. Provide a variety of foods and preparation methods. Consider color, different food combinations, texture, size, shape, taste, and appearance. 27. Specify foods used, For example, identify vegetables used in vegetable soup and stew, the type of gelatin and fruit used in fruited gelatin; the specific fruit used for dessert; or fruits used in a fruit cup. If vegetable soup provides the vegetable serving for the day then ensure that 1/2 cup of vegetable is in each portion. 28. Indicate the type of dressings for salads. Use dressings low in saturated fat and sodium. Programs must now offer at least one low -sodium salad dressing option (such as oil and vinegar) as a choice. Nutrition education emphasizing the high sodium content of salad dressings and other condiments will be a focus. 15 Menu Writing Specifications 2012-2013 29. Specify the amounts of gravies, sauces, and relishes to be served.. 30. Double check the word "Fortified" is indicated when appropriate for margarine, mashed potatoes and juice. 31. Serving sizes and/or serving implements must be included for all items served. Example: 2 peanut butter cookies; 4 oz. grapefruit juice; 2" x 2" spice cake; 2 4 -oz ladles beef stew. 32. Encourage a switch from Styrofoam cups, plate, and bowls. Start using paper or reusable dishware. MEAL COMPONENTS 1. Protein —meat, fish, Poultry, Legumes, Eggs, and Cheese The meal shall contain 3 ounces of cooked, edible portions of meat, fish, poultry, legumes, eggs, cheese (or a combination thereof) or, in casserole dishes, entree salads, and sandwiches, 2 oz. of cooked, edible portions of meat, fish, poultry or fish providing at least 15 grams of protein for one meal per day. Meat and poultry should be lean or low-fat, and nuts should be unsalted. a. If meats normally high in sodium are served for variety and client satisfaction, use low sodium versions whenever possible. b. Serve legume dished using mature dries beans, peas, and lentils as often as possible in accordance with participant acceptance. Try to include legumes at least once per week. C. Legume dishes may not be counts as both a vegetable and a protein in the same meal. d. Soaps containing at least one-half cup of beans, lentils, or split peas may be counted as one ounce of protein/meat. .Soup containing one ounce of protein/meat must be served with an entree containing at least two ounces of meat. e. /2 C of firm tofu can be counts as 3 oz. of meat. 2. Vegetables 3. Fruit a. Vegetable as a primary ingredient in soups, stews, casseroles or other combination dishes must total %2 cup per serving. b. One serving of raw leafy vegetables equals 1 cup. '/2 C of raw leafy greens may be served, but is counted as %2 serving. C. Legume dishes may not be counted as both a vegetable and a protein in the same meal. d. Potatoes and sweet potatoes count as vegetables. Cornbread counts as a grain, but not a whole grain. Sweet corn would be a vegetable. a. A serving of fntit is generally: Medium sized whole fruit %2 cup fresh, chopped, cooked, frozen or canned, drained fruit 1/2 cup 100% fruit juice. b. Vitamin C fortified juice bases may be used as Vitamin C sources, but do not cotmt as servings of fruit. 16 Menu Writing Specifications 2012-2013 C. Fresh, frozen, or canned fruit should be packed in juice, light syrup, or water. Rinse fruit packed in heavy sugar syrup. 4. Breads/Grains A variety of whole grain products should be consumed. Recommended are those Highest in fiber (barley, brown rice, buckwheat, bulger, dries ground corn (cornmeal, masa), oats, popcorn, quinoa, triticale, whole rye, whole wheat, wild rice). a. Ideally, one serving of the daily intake should be from whole grains. b. At least three of six servings per week shall be from whole grains. Whole grains contain 3 grams of fiber per serving. C. Grains that are processes (not whole) must be fortified. d. High sodium grains are to be used only in conjunction with low sodium entrees. This would include cornbread, biscuits, large flour tortillas and the large French rolls. '/z of a French roll could be used to cut sodium to 200mg. 5. Milk Each meal shall contain eight ounces of fortified skim, reduced fat, or buttermilk (maximum of 1% milk fat). a. Have different types of milk available (1%, non-fat, etc.) b. Use 2%milk only if nutritional analysis shows that the menus contain no more than 35% calories from fat. C. If religious preference precludes the acceptance of milk with the meal, it may be omitted from the menu. However another substitute (dry milk solids) should be available. 6. Fat J Fat is not a requirement. Each meal may contain fat components to increase the palatability and acceptability of the meal. Trans fat free fat or margarine may be used in food preparation or served as an accompaniment to the meal. a. Fats and oils are part of a healthful diet. The type of fat consumed makes a difference to heart health, and total amount consumed is also important. Consume less than 10% of calories from saturated fatty acids and less than 300 mg/day of cholesterol. Avoid trans fatty acids (hydrogenated fat in entrees, crackers, desserts, etc.). Keep total fat intake between 20 to 35% of calories. Use sources of polyunsaturated and monounsaturated fatty acids, such as fish, nuts, and vegetable oils. b. Select lean, low-fat, or fat-free meats, poultry, beans, milk, and milk products. 17 Menu Writing Specifications 2012-2013 7. Dessert Dessert may be provided to satisfy the caloric requirements or for additional nutrients. Encourage desserts that are low in fat or low in sugar. a. When dessert contains % cup of fruit per serving, it may be counted as a serving of fruit. b. Serve fruit at least twice per week. One serving must be fresh and other servings may be fresh, frozen, cooked or canned fruit. C. When a dessert contains the equivalent of 1 serving starches/grains per serving, it may be counted as a serving of starches/grains (example: rice pudding, oatmeal cookie). d. When serving pudding or Jello, consider using a sugar -free product for all participants. e. A high calorie, nutrient poor dessert (cake, pie) may be served once per week. f If a high calorie dessert is served, consider having fruit, sugar free Jello or sugar free pudding available for diabetic seniors. 8. Condiments and Product Substitutes a. Salt substitutes shall not be provided. b. Sugar substitutes, pepper, herbal seasonings, lemon, vinegar, non-dairy creamer, salt, and sugar may be provided, but do not count as fulfilling any part of the nutrient requirements. C. Salad dressings, salsa, hot sauce, ketchup, soy sauce, mustard, mayonnaise, do not need to be counted as long as they are served on the side and are not mixed in with the food. d. Shelf stable meals may be used as emergency supplies. Meals must follow menu standards. If purchased for emergencies, the meals must be used before or discarded after the use by/expiration date. e. Vitamin and or mineral supplements shall not be provided. f Medical foods, nutritional supplements and food for special dietary uses shall not be provided with federal or state nutrition funds. 7. SUPPLIES SPECIFICATION PROCEDURES The Subcontractor shall provide disposable table service based upon the supplies specification included. These supplies shall be ordered and delivered weekly at each site. A minimum of one week's supply on hand at all times. The Contractor shall supply order forms and monitor supply usage. The Subcontractor shall furnish, as part of supplies, the cleaning and other miscellaneous supplies (see Supplies Specification Sheet). These supplies will be ordered as needed. The Contractor shall supply order forms and monitor supply usage. (This is subject to negotiations.) ` EVALUATION OF SUBCONTRACTOR The Contractor and the Dietary Administrative Support Services Dietitian shall evaluate the Subcontractor's performance to determine of the Agreements is in compliance in meeting requirements. All evaluations must be sent to the AAA nutritionist. RECEIPTS AND INVOICES PROCEDURES 2. The Subcontractor shall issue daily delivery receipts to each site 3. After the close of each month, .the Subcontractor will furnish to the program an invoice of meals ordered by the program the previous month. The Contractor will pay such invoices for the prior month within 30 days after receipt of same invoice or as agreed between the Contractor and Subcontractor. DEDUCTION PROCEDURE 1. The Subcontractor shall deliver meals which meet Title III -C menu regulations. If the Subcontractor fails to deliver all menu items, or appropriate substitute items and or food is rejected by the program, the Subcontractor shall be reimbursed as outline in #4 Meal Standards. 19 INSTRUCTIONS I. FOOD SERVICE AGREEMENT a) The Food Service Agreement incorporates the basic requirements of the Older Americans Act Services Agreement between the County and the Contractor. Therefore, it is important that this Agreement, as formatted be used for all subcontractors. b) Any section in the Food Service Agreement which is not applicable, or additional requirements, must be identified on a separate addendum -sheet as "Other Requirements". c) The Food ServiceAgreement and the Food Service Specifications (Attachment 1), as selected through the bid process become the. official subcontract between the service provider and the caterer. 2. FOOD SERVICE SPECIFICATIONS (required) a) Use for bidding purposes b) Complete a blank areas, as necessary 3. THE INDTRODUCTORY INVITATION TO BID LETTER IS OPTIONAL FOR USE 4. MEAL CATERING BID REVIEW Use to evaluate Caterer's bids and Bid Price Fact Sheet. The agency must submit all bids to the Area Agency on Aging (AAA) for review and approval. 5. FOOD PURCHASING SPECIFICATIONS All foods used for senior meals must meet food purchasing specifications. 6. HACCP REQUIREMENTS All contractors, caterer and central kitchens are required to have a Hazard Analysis and Critical Control Point (HACCP) Program in operation. Every Project Director, Central Kitchen Supervisor, Caterer or Program Director is required to have completed a basic course of training in HACCP; to have passed National Restaurant Association's "Serv-Safe" course and to have the "Serv-Safe" certificate issued within the last 3 years. 7. CURFFL/AAA/CNS POLICY AND PROCEDURES Contractors, Central Kitchen and Caterer are required to adhere to the California Uniform Retail Food Facilities Law (CURFFL); the AAA Standard Operating Procedures Manual (Policy and Procedures for Senior Nutrition Sites, Central Kitchens, and Home Delivered meals); and Section H California Department of Aging Title III Program Manual. The Caterer must have at least one Certified Food Handler present during food preparation and service. 8. COMPLIANCE DOCUMENTS Contractor is required to submit Food Service Agreement with the Caterer, fire, health, insurance certificates, resume of dietitian and/or food service manager; and copies of Certified Food Handler Certificates to the County Area Agency on Aging. 2 i CONSENTITEM TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: SUSAN PARAGAS, CONTROLLER ow VIA: JAMES W. MAKSHANO , CITY MANAGER DATE: MAY 7, 2012 SUBJECT: POST -ISSUANCE COMPLIANCE POLICY FOR BOND ISSUES RECOMMENDATION It is recommended that the City Council adopt the attached resolution approving and adopting the post -issuance compliance policy for bond issues in accordance with the recommendations of the Internal Revenue Service. BACKGROUND Federal tax law encourages tax-exempt bond issuers to develop written issuance and post - issuance compliance procedures related to tax-exempt bonds. Developing proper procedures will ensure the preservation of the tax-exempt status of the City of Azusa's ("City") bonds throughout the life of the bonds. Failure to comply with these procedures may cause City to be (a) liable to the bondholders, (b) subject to enforcement action by the Internal Revenue Service, (c) subject to a loss of all or part of the direct federal subsidy, and (d) subject to enforcement action by the Securities Exchange Commission. Therefore, it is important that the City take the necessary action to ensure compliance with the conditions, restrictions and requirements applicable to each bond or other financing. ANALYSIS The purpose of this Policy is to ensure that the City complies with applicable requirements of federal tax law necessary to preserve the tax-exempt status of interest on tax-exempt obligations issued by the City. The Post -Issuance Compliance Policy for Bond Issues ("Policy") is designed to set forth compliance procedures so that the City utilizes the proceeds of all issues of bonds, certificates of participation, bond anticipation notes, and tax and revenue anticipation notes (collectively referred to as "Bonds") in accordance with applicable federal tax requirements, and complies with all other applicable federal requirements with respect to outstanding Bonds. To comply with applicable federal tax requirements, the City must confirm that the requirements are met at the time each Bond issue is issued and throughout the term of the Bonds (until maturity or redemption). Generally, compliance should include retention of records relating to the expenditure of the proceeds of each Bond issue, the investment of the proceeds of each Bond issue, and any allocations made with respect to the use of the proceeds of each Bond issue, sufficient to establish compliance with applicable federal tax requirements, including records related to periods before the Bonds are issued (e.g., in the case of reimbursement of prior expenditures) until six (6) years after the final maturity or redemption date of any issue of the Bond. FISCAL IMPACT There is no fiscal impact. Attachments: Resolution — Post -Issuance Compliance Policy for Bond Issues Exhibit A — Post -issuance Compliance Policy for Bond Issues 's RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING AND ADOPTING THE POST -ISSUANCE COMPLIANCE POLICY FOR BOND ISSUES - WHEREAS, the City of Azusa ("City") has issued tax-exempt bonds and may issue additional types of bonds in the future ("Bonds"); and WHEREAS, federal tax law encourages the City to develop issuance and post -issuance compliance procedures related to the Bonds; and WHEREAS, various requirements apply under the Internal Revenue Code and Income Tax Regulations (hereinafter "IRS Requirements") including information filing and other requirements related to issuance, the proper and timely use of bond, and arbitrage yield restriction and rebate requirements; and WHEREAS, to comply with the IRS Requirements, the City must ensure that the rules are met at the time the Bonds are issued and throughout the term of the Bonds; and WHEREAS, the City desires to adopt written issuance and post -issuance compliance policy related to the Bonds; NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY: Section 1. Approve and adopt the Post -Issuance Compliance Policy for Bond Issues attached hereto as Exhibit A; Section 2. Authorize City staff to take all actions necessary to carry out the Policy. ADOPTED AND APPROVED this 7t day of May, 2012. JOSEPH R. ROCHA, MAYOR I HEREBY CERTIFY that the foregoing Resolution No. was duly adopted by the City Council of the City of Azusa at a regular meeting thereof on the 7th day of May 2012, by the following vote of City Council Members. AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS; VERA MENDOZA, CITY CLERK CITY OF AZUSA, CALIFORNIA POST -ISSUANCE COMPLIANCE POLICY FOR BOND ISSUES I. PURPOSE. The purpose of this Policy is to ensure that the City of Azusa, California (the "Issuer") complies with applicable requirements of federal tax law necessary to preserve the tax-exempt status of interest on tax-exempt obligations issued by the Issuer. This Policy is designed to set forth compliance procedures so that the Issuer utilizes the proceeds of all issues of bonds, certificates of participation, bond anticipation notes, and tax and revenue anticipation notes (collectively referred to as "Bonds") in accordance with applicable federal tax requirements, and complies with all other applicable federal requirements with respect to outstanding Bonds. To comply with applicable federal tax requirements, the Issuer must confirm that the requirements are met at the time each Bond issue is issued and throughout the term of the Bonds (until maturity or redemption). Generally, compliance should include retention of records relating to the expenditure of the proceeds of each Bond issue, the investment of the proceeds of each Bond issue, and any allocations made with respect to the use of the proceeds of each Bond issue, sufficient to establish compliance with applicable federal tax requirements, including records related to periods before the Bonds are issued (e.g., in the case of reimbursement of prior expenditures) until six (6) years after the final maturity or redemption date of any issue of the Bond issue. II. PROCEDURES. A. Responsible Official. The Finance Director of the Issuer will identify the officer or other employee(s) of the Issuer (the "Bond Compliance Officer") who will be responsible for each of the procedures listed below, notify the current holder of that office of the responsibilities, and provide that person a copy of these procedures. Upon employee transitions, the Finance Director of the Issuer will advise any newly -designated Bond Compliance Officer of his/her responsibilities under these procedures and will ensure the Bond Compliance Officer understands the importance of these procedures. If employee positions are restructured or eliminated, the Finance Director of the Issuer will reassign responsibilities as necessary. B. Issuance of Bonds. Bond Counsel. The Issuer will retain a nationally -recognized bond counsel law firm ("Bond Counsel") to deliver a legal opinion upon issuance of each tax-exempt Bond issue. The opinion of Bond Counsel will be based in part on covenants and representations set forth in the Issuer's Tax Certificate and 4-. I other certificates relating to the Bonds, including covenants and representations concerning compliance with post -issuance federal tax law requirements that must be satisfied to preserve the tax-exempt status of interest on the Bonds. As described more fully below, the Issuer will also consult with Bond Counsel and other legal counsel and advisors, as needed, following issuance of each Bond issue to ensure that applicable post -issuance requirements in fact are met, so that interest on all Bond issues will be excluded from gross income for federal income tax purposes so lone as any Bonds remain outstanding. The Bond Compliance Officer and/or other designated Issuer personnel will consult with Bond Counsel and other legal counsel and advisors, as needed, throughout the Bond issuance process to identify requirements and to establish procedures necessary or appropriate so that interest on the Bonds will continue to qualify for federal tax-exempt status. Those requirements and procedures shall be documented in a Tax Certificate and other certificates and/or other documents finalized at or before issuance of the Bonds. Those requirements and procedures shall include future compliance with applicable arbitrage rebate requirements and all other applicable post -issuance requirements of federal tax law throughout (and in some cases beyond) the term of the Bonds. Documentation OL Tax Requirements. The federal tax requirements relating to each Bond issue will be set forth in the Tax Certificate executed in connection with the Bond issue, which will be included in the closing transcript. The certifications, representations, expectations, covenants and factual statements in the Tax Certificate relate primarily to the restriction on use of the Bond -financed facilities by persons or entities other than the Issuer, changes in use of assets financed or refinanced with Bond proceeds, restrictions -applicable to the investment of Bond proceeds and other moneys relating to the Bonds, arbitrage rebate requirements, and economic life of the Bond -financed assets. Information Reportine. The Bond Compliance Officer and/or other designated Issuer personnel will assure filing of information returns on IRS Form 8038-G, no later than the 15" day of the second calendar month in the calendar quarter following the calendar quarter in which issue of Bonds is issued. The Issuer will confirm that the IRS Form 8038-G is accurate and is filed in a timely manner with respect to all Bond issues, including any required schedules and attachments. The Form 8038-G filed with the IRS, together with an acknowledgement copy (if available) or IRS Notice CP152, will be included as part of the closing transcript for each Bond issue, or kept in the records related to the appropriate issue of Bonds. K shall: C. Application of Bond Proceeds. Use of Bond Proceeds. The Bond Compliance Officer and/or other designated Issuer personnel * monitor the use of Bond proceeds and the use of the Bond -financed assets (e.g., facilities, furnishings or equipment) throughout the term of the Bonds (and in some cases beyond the term of the Bonds) to ensure compliance with covenants and restrictions set forth in the applicable Tax Certificate; * maintain records identifying the assets or portion of assets that were financed or refinanced with proceeds of each issue of Bonds; * consult with Bond Counsel and other legal counsel as needed in the review of any contracts or arrangements involving use of Bond -financed facilities to ensure compliance with all covenants and restrictions set forth in the applicable Tax Certificate; * maintain records for any contracts or arrangements involving the use of Bond - financed facilities as might be necessary or appropriate to document compliance with all covenants and restrictions set forth in the applicable Tax Certificate; and * communicate as necessary and appropriate with personnel responsible for the Bond -financed assets to identify and discuss any existing or planned use of the Bond - financed assets, to ensure that those uses are consistent with all covenants and restrictions set forth in the applicable Tax Certificate. Timely Expenditure of Bond Proceeds. At the time of issuance of any Bonds issued to fund original expenditures, the Issuer must reasonably expect to spend at least 85% of all proceeds expected to be used to finance such expenditures (which proceeds would exclude proceeds in a reasonably required reserve fund) within three (3) years after issuance of such Bonds.' In addition, for such Bonds, the Issuer must have incurred or expect to incur within six months after issuance original expenditures of not less than 5% of such amount of proceeds, and must expect to complete the Bond -financed project (the I In the case of short-term working capital financings (e.g., TRANs), the Issuer's actual maximum cumulative cash flow deficit as of the close of the six-month period commencing on the issue date must be at least equal to 100% of the issue price of the notes (under the six-month rebate exception, excluding the reasonable working capital reserve) or 90% of the issue price of the notes (under the statutory safe harbor exception) in order for the notes to be exempt from the rebate requirements. 3 "Proiect") and allocate Bond proceeds to costs with due diligence .2 Satisfaction of these requirements allows Project -related Bond proceeds to be invested at an unrestricted yield for three (3) years 3 Bonds issued to refinance outstanding obligations are subject to separate expenditure requirements, which shall be outlined in the Tax Certificate relating to such Bonds. The Issuer's finance staff will monitor the appropriate capital project accounts (and, to the extent applicable, working capital expenditures and/or refunding escrow accounts) and ensure that Bond proceeds are spent within the applicable time period(s) required under federal tax law. Capital Expenditures. In general, proceeds (including earnings on original sale proceeds) of Bonds issued to fund original expenditures, other than proceeds deposited in a reasonably required reserve fund or used to pay costs of issuance, should be spent on capital expenditures." For this purpose, capital expenditures generally mean costs to acquire, construct, or improve property (land, buildings and equipment), or to adapt the property to a new or different use. The property financed or refinanced must have a useful life longer than one (1) year. Capital Expenditures include design and planning costs related to the Project, and include architectural, engineering, surveying, soil testing, environmental, and other similar costs incurred in the process of acquiring, constructing, improving or adapting the property. Capital Expenditures do not include operating expenses of the Project or incidental or routine repair or maintenance of the Project, even if the repair or maintenance will have a useful life longer than one (1) year. D. Use of Bond -Financed Assets. Ownership and Use of Project. For the life of the Bond issue, the Project must be owned and operated by the Issuer (or another state or local governmental entity). At all times while the Bond issue is outstanding, no more than 10% (or $15,000,000, if less) of the Bond proceeds or theTroject may used, directly or indirectly, in a trade or business carried on by a person other than a state or local governmental unit ("Private Us ").5 In addition, not more than 5% (or $5 million, if less) of the proceeds of any Bond issue may be used, directly or indirectly, to make a loan to any person other than governmental persons. months.. These requirements do not apply to short-temt working capital financings (e.g., TRANs). Proceeds of working capital financings (e.g., TRANs) may be invested at an unrestricted yield for thirteen (13) Proceeds of working capital financings (e.g., TRANS) need not be spent for capital expenditures. This 10% limitation is limited to 5% in cases in which the Private Use is either unrelated or disproportionate to the governmental use of the financed facility. ' 4 Generally, Private Use consists of any contract or other arrangement, including leases, management contracts, operating agreements, guarantee contracts, take or pay contracts, output contracts or research contracts, which provides for use by a person who is not a state or local government on a basis different than the general public. The Project may be used by any person or entity, including any person or entity carrying on any trade or business, if such use constitutes "General Public Use". General Public Use is = any arrangement providing for use that is available to the general public at either no charge or on the basis of rates that are generally applicable and uniformly applied. Management or Operating Agreements. Any management, operating or service contracts whereby a non-exempt entity is using assets financed or refinanced with Bond proceeds (such as bookstore, cafeteria or dining facility, externally -managed parking facilities, gift shops, etc.) must relate to portions of the Project that fit within the allowable private use limitations or the contracts must meet the IRS safe harbor for management contracts. Any replacements of or changes to such contracts relating to Bond -financed assets or facilities, or leases of such assets or facilities, should be reviewed by Bond Counsel. The Bond Compliance Officer shall contact Bond Counsel if there may be a lease, sale, disposition or other change in use of assets financed or refinanced with Bond proceeds. Useful Life Limitation. The weighted average maturity of the Bond issue cannot exceed 120% of the weighted average economic life of the Bond -financed assets. In other words, the weighted average economic life of the Project must be at least 80% of the weighted average maturity of the Bond issue. E. Investment Restrictions: Arbitrase Yield Calculations; Rebate. Investment Restrictions. Investment restrictions relating to Bond proceeds and other moneys relating to the Bonds are set forth in the Tax Certificate. The Issuer's finance staff will monitor the investment of Bond proceeds to ensure compliance with applicable yield restriction rules. Use and Control of Bond Proceeds. Unless otherwise provided, unexpended Bond proceeds (including reserves) are typically held by the trustee for the Bond issue under an indenture or trust agreement. The investment of Bond proceeds shall be managed by the Issuer. The Issuer shall maintain appropriate records regarding investments and transactions involving Bond proceeds. The trustee shall provide regular statements to the Issuer regarding investments and transactions involving Bond proceeds. Arbitrage Yield Calculations. Investment earnings on Bond proceeds should be tracked and monitored to comply with applicable yield restrictions and/or rebate requirements. Any funds of the Issuer set aside or otherwise pledged or earmarked to pay debt service on Bonds should be analyzed to 5 t assure compliance with the tax law rules on arbitrage, invested sinking funds and pledged funds (including gifts or donations linked or earmarked to the Bond -financed assets). Rebate. The Issuer is responsible for calculating (or causing the calculation of) rebate liability for each Bond issue, and for making any required rebate payments. The Issuer will retain an arbitrage rebate consultant to perform rebate calculations that may be required to be made from time to time with respect to any Bond issue. The Issuer is responsible for providing the arbitrage rebate consultant with requested documents and information on a prompt basis, reviewing applicable rebate reports and other calculations and generally interacting with the arbitrage rebate consultant to ensure the timely preparation of rebate reports and payment of any rebate. The reports and calculations provided by the arbitrage rebate consultant are intended to assure compliance with rebate requirements, which require the Issuer to make rebate payments, if any, no later than the fifth (5h) anniversary date and each fifth (5'1) anniversary date thereafter through the final maturity or redemption date of a Bond issue. A final rebate payment must be made within sixty (60) days of the final maturity or redemption date of a Bond issue. The Issuer will confer and consult with the arbitrage rebate consultant to determine whether any rebate spending exceptions may be met. Rebate spending exceptions are available for periods of 6 months, 18 months and 2 years. The Issuer will review the Tax Certificate and/or consult with the arbitrage rebate consultant or Bond Counsel for more details regarding the rebate spending exceptions. In the case of short-term working capital financings, such as tax and revenue anticipation notes, if there is concern as to whether or not the Issuer has met its requisite maximum cumulative cash flow deficit with respect to its short-term working capital notes, the services of a rebate analyst should be engaged to determine whether either the six-month spending exception or the statutory safe harbor exception to the rebate rules is met (in which case no rebate would be owed) or whether the proceeds of the notes are subject, in whole or in part, to rebate. Copies of all arbitrage rebate reports, related return filings with the IRS (i.e., IRS Form 8038-T), copies of cancelled checks with respect to any rebate payments, and information statements must be retained as described below. The responsible official of the Issuer described in Subsection A of this Part 11 will follow the procedures set forth in the Tax Certificate entered into with respect to any Bond issue that relate to compliance with the rebate requirements. 6 n r 6 F. Record Retention. Allocation of Bond Proceeds to Expenditures. The Issuer shall allocate Bond proceeds to expenditures for assets, and shall trace and keep track of the use of Bond proceeds and property financed or refinanced therewith. Record Keeping Requirements. Copies of all relevant documents and records sufficient to support an assertion that the tax requirements relating to a Bond issue have been satisfied will be maintained by the Issuer for the term of a Bond issue (including refunding Bonds, if any) plus six (6) years, including the following documents and records: • Bond closing transcripts; • Copies of records of investments, investment agreements, credit enhancement transactions, financial derivatives (e.g., an interest rate swap), arbitrage reports and underlying documents, including trustee statements; • Copies of material documents relating to capital expenditures financed or refinanced by Bond proceeds, including (without limitation) purchase orders, invoices, trustee requisitions and payment records, as well as documents relating to costs reimbursed with Bond proceeds and records identifying the assets or portion of assets that are financed or refinanced with Bond proceeds; • All contracts and arrangements involving private use, or changes in use, of the Bond - financed property; • All reports and documents relating to the allocation of Bond proceeds and private use of Bond -financed property; and • Itemization of property financed with Bond proceeds, including placed in service dates. • In the case of short-term working capital financings, such as tax and revenue anticipation notes, information regarding the Issuer's revenue, expenditures and available balances sufficient to support the Issuer's maximum cumulative cash flow deficit. POST -ISSUANCE COMPLIANCE. A. In General. The Issuer will conduct periodic reviews of compliance with these procedures to determine whether any violations have occurred so that such violations can be remedied 7 through the "remedial action" regulations (Treas. Reg. Section 1.141-12) or the Voluntary Closing Agreement Program (VCAP) described in IRS Notice 2008-31 (or successor guidance). If any changes or modifications to the terms or provisions of a Bond issue are contemplated, the Issuer will consult Bond Counsel. The Issuer recognizes and acknowledges that such modifications could result in a "reissuance" of the Bonds for federal tax purposes (i.e., a deemed refunding) and thereby jeopardize the tax-exempt status of interest on the Bonds after the modifications. The Bond Compliance Officer and/or other designated Issuer personnel will consult with Bond Counsel and other legal counsel and advisors, as needed, following issuance of each issue of the Bonds to ensure that all applicable post -issuance requirements in fact are met, so that interest on the Bonds will be excluded from gross income for federal income tax purposes so long as any Bonds remain outstanding. This will include, without limitation, consultation in connection with future contracts with respect to the use of Bond -financed assets and future contracts with respect to the use of output or throughput of Bond - financed assets. Whenever necessary or appropriate, .the Issuer will engage an expert advisor as arbitrage rebate consultant to assist in the calculation of arbitrage rebate payable in respect of the investment of Bond proceeds. B. Private Use. The Issuer will maintain records identifying the assets or portion of assets that are financed or refinanced with proceeds of a Bond issue, including the uses and the users thereof (including terms of use and type of use). Such records may be kept in any combination of paper or electronic form. In the event the use of Bond proceeds or the assets financed or refinanced with Bond proceeds is different from the covenants, representations or factual statements in the Tax Certificate, the Issuer will promptly contact and consult with Bond Counsel to ensure that there is no adverse effect on the tax-exempt status of the Bond issue and, where appropriate, will remedy any violations through the "remedial action" regulations (Treas. Reg. Section 1.141-12), the Voluntary Closing Agreement Program (VCAP) described in IRS Notice 2008-31 (or successor guidance), or as otherwise prescribed by Bond Counsel. 4 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: MARCENE HAMILTON, CITY TREASURER DATE: MAY 7, 2012 SUBJECT: CITY TREASURER'S STATEMENT OF CASH AND INVESTMENT BALANCES FOR THE MONTH OF MARCH 2012 RECOMMENDATION: It is recommended that the Council Members receive, review, and file the City Treasurer's Report for the City of Azusa for the month of March 2012. BACKGROUND: Transmitted herewith is the City Treasurer's Statement of Cash Balances for the City of Azusa for the month of March 2012. City investments are made in accordance with the City's Investment Policy adopted and approved with Resolution No. 05 — C16 dated, November 21, 2011 and Government Code Section 53600 et seq. FISCAL IMPACT: The balances of cash, investments, and projected revenues for the next six months are expected to be sufficient to meet cash disbursement requirements of the City for at least the next six months. The change in total cash in bank and investments from February 29, 2012 to March 31, 2012 is a net decrease of $640,319.27. 6 CITY OF AZUSA TREASURER'S REPORT Quarterly Comparison Summary Prepared by: Marcene Hamilton, Treasurer March 31, 2011 Account Quarterly Balances Description - - June 30, 2011 September 30 2011 December 31, 2011 March 31, 2012 - June 30, 2012 WFB - Checking and Sweep $ 4,777,468.58 $ 1,870,990.44 $ 1,722,149.96 $ 2,065,929.58 Accounts WFB - Section 108 Choice IV Public Fund $ 30,875.82 $ 30,86826 $ 30,864.12 $ 30,851.25 Account WFB - Certificate of Deposit -ISO DACA &Collateral $ 2,681,256.29 $ 2,681,295.57 $ 3,181,334.86 $ 2,867,029.39- Account WFB - Certificate of Deposit - Covington $ 117,351.60 $ 117,736.75 $ 118,665.31 $ 119,026.78 Trust Account Local Agency Investment Fund $ 15,163,373.97 $ 11,178,474.57 $ 13,691,724.87 $ 23,701,994.59 (LAIF) WFB - 3rd Party Custodial Trust $ 2,518,500.07 $ 3,009,950.00 $ 4,046,403.68 $ 3,041,667.80 Investment Account City of Azusa - Certeposits es of Deposits $ 900,000.00 $ 1,200,000.00 $ 1,500,000.00 $ 2,315,000.00 Investments City of Azusa - Agency Securities $ 22,996,250.00 $ 18,997,250.00 $ 16,998,500.00 $ 15,999,500.00 Investments Light & Water Rate Stabilization - $ Agency Securities 9,213,500.00 $ 9,215,000.00 $ 9,215,000.00 $ 6,465,000.00 Investments Total Cash in - - Bank and $ 58,398;576:33 - $ -48,301,565.59 _$ - :50,504,642.80 $ -56,605,999.39 $ - Investments - - CITY OF AZUSA TREASURER'S REPORT Treasury Checking Accounts and Certificates of Deposit Held in Wells Fargo Bank Prepared by: Marcene Hamilton, Treasurer March 31, 2012 Interest or Balance Face Maturity Coupon Description Account Number or Amount Date or CUSIP Rate Market Value Checking Accounts General Checking Account XXX-XXX1244 135,358.00 Stagecoach Sweep Account DDA XXX-XXX1244 1,930,382.46 Worker's Compensation Checking XXXX-XX0318 0.00 Flexible Reimbursement XXXX-XX5036 0.00 Payroll Checking (ZBA account) XXXX-XX1393 0.00 Police Petty Cash Fund XXX-XXX0334 189.12 DACA Account - ISO Collateral XXXX-XX2015 500,000.00 Section 108 0.970% Choice IV -Public Fund Account XXX-XXX2239 30,851.25 200,000 11/14/06 3.060% FHLB 3.060 11/14/06 (Matured) 3133X6PD2 0.00 ISO Collateral Account Certificate of Deposit - Closed to Light & 300,000 Every 30 Days 0.050% Water Stabilization Investment Account XXX-XXX1658 0.00 1,975,001 04/07/07 3.748% Certificate of Deposit XXX-XXX2840 2,367,029.39 Covington Endowment WFB Advantage Heritage Money Market Fund (rated AAAm/Aaa) WFB XXXX7554 18,411.58 Certificate of Deposit 100,000 06/29/09 1.400% Discover Bank DE Matures 5/12/14 CUSIP 254670D66 100,615.20 TOTALS 5,082,837.00 CITY OF AZUSA TREASURER'S REPORT TREASURYINVESTMENTS Frepuoby Muccne Hamlmn Tmasurcr March 31, 2012 Broke[ Fa[e Amaunl Deaviplion Coupon Pnm Mat utih Dne AtNCuaip No. 5[lpemenl Dele po-".l• ManetF�' (gen[e[ MenPn. 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I1go10 Auel 1000£1.5 00]40 N/A -N/A _ MwWY F-8.1d.-dR. 0908 CITY - Local AgmaY Immanent Food f1AIF3 liquid And 23.7OIyW39 I I .3.% - N/A - N/A QumedY I Pd Nlao.WR.¢'. ]eFin6I •Flual Yeu: Jolvl-Jone30 TDTALHN RESI'EARNED WD 461.818.69 CONSENT CALENDAR TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: TITO HAES, ASSISTANT CITY MANAGER/PUBLIC WORKS DIRECTOR VIA: JAMES MAKSHANOF , CITY MANAGER DATE: MAY 7, 2012 SUBJECT: LEGISLATIVE UPDATE RECOMMENDATION It is recommended that the City Council approve the positions recommended on the legislation listed in this report. BACKGROUND During the federal and state legislative sessions, bills are considered that may impact Azusa or cities in general. In order to keep the City Council informed of these bills, staff has developed the attached legislative update to track these important bills, including recommended positions. Following Council approval, staff will draft letters including the recommended positions and send them to Sacramento. As bills are introduced, amended or there is a change in position from the League of Cities, staff will provide the Council with updated position recommendations. FISCAL IMPACT There is no fiscal impact associated with approving the legislative update. Attachment. Legislative Update City of Azusa 2012 - 2013 Legislative Bill Report May - Update 'BILL`1 44 AB 1551 Author: Torres Title: Insurance : Public Safey Employees : Accidents Position: Oppose Location: Assembly Appropriations Committee Summary: This bill would exempt certain public safety officers from a requirement to report accidents that occur in a personal vehicle to a personal insurance provider and instead report those accidents to the employer. This bill unnecessarily shifts the liability for automobile accidents from the employee to the employer. Passed Assembly Insurance Committee — 4/18/12 AB 1692 Author: Wieckowski Title: Bankruptcy Position: Oppose Location: Assembly Appropriations Committee Summary: This bill would remove provisions of AB 506 related to the mediation process including giving the "neutral evaluator" independent decision-making authority and allowing other parties to create delays by allowing the process to continue without the concurrence of the affected public entity. Last year the League vehemently opposed similar provisions in AB 506 because they created obstacles to municipal bankruptcy and resulted in a process stacked against local agencies. AB 2231 Author: Fuentes Title: Sidewalk: Repairs Position: Oppose Location: Assembly Judiciary Committee Summary: Existing law requires the owners of lots or portions of lots fronting on any portion of a public street or place to maintain any sidewalk in such condition that the sidewalk will not endanger persons or property and maintain it in a condition that will not interfere with the public convenience in the use of those works or areas, except as to those conditions created or maintained by persons other than the owner. This bill would require a city or county to repair any sidewalk that is damaged as a result of trees, and prohibits the local entity from imposing a fee on the property owner for the repair. Passed Assembly Local Government Committee — 4/18/12. AB 2312 Author: Ammiano Title: Controlled Substances Position: Oppose Location: Assembly Appropriations Committee Summary: This measure would create the Medical Marijuana Regulation and Control Act, establishing a state-wide regulatory body for approving dispensaries and facilities. Specifies how local jurisdictions may or may not regulate the location, business hours, and establishment of dispensaries. Also grants local agencies the authority to levy a combined sale and use tax not to exceed 2.5 percent. This bill exemplifies loss of local control to the state. Passed Assembly Public Safety and Health Committee — 4/17/12 SB 1222 Author: Leno Title: Solar Energy: Permits Position: Oppose Location: Senate Appropriations Committee Summary: This bill would place a cap on building permit fees on solar residential systems as well as require local agencies to provide a report to the California Energy Commission (CEC) no later than Dec. 1, 2013. :Passed Senate Governance & Finance Committee — 4/25/12 AB 1585 Author: Perez Title: Redevelopment Position: Support Location: Senate Government and Finance Committee Summary: The most developed of the "Redevelopment clean up" bills. This bill is being fast -tracked and would preserve affordable housing funding, ensure loan repayments from RDA's to cities, and preserves asset value to prevent "fire sale" of properties. This bill does not resolve all questions presented with AB X1 26 but takes a positive step in that direction. More detailed information is included as a separate attachment. Passed Assembly Housing & Community Development Committee — 3/14/12 Passed Assembly Local Government Committee — 3/21/12 Passed Assembly Appropriations Committee — 3/22/12 Passed Assembly Floor — 3/26/12 SB 1003 Author: Yee Title: Local Government: Open Meetings Position: Oppose Location: Senate Government and Finance Committee Summary: This bill would apply sanctions to past violations of the Brown Act. As such, this bill could expose cities to possible additional litigation, including potential attorneys' fees even if any questionable past activities have since ceased. Scheduled to be heard in Senate Government and Finance Committee — 5/2/12 AB 890 Author: Olsen Title: Environment: CEQA Exemption: Roadway Improvement Position: Support Location: Senate Environmental Quality Committee Summary: This bill would exempt city roadway improvement projects from California Environmental Quality Act requirements if the project is within the existing right-of-way. AB 890 will result in lower project costs and faster project delivery for roadway improvement projects. Passed Assembly Natural Resources Committee — 5/2/11 & 1/9/12 Passed Assembly Appropriations Committee — 1/19/12 Passed Assembly Floor— 1/26/12 AB 1547 Author: Eng Title: Residential Mortgage Loans: Foreclosure Procedures Position: Support Location: Assembly Banking and Finance Committee Summary: This bill would continue to require a legal owner to maintain vacant residential property purchased at a foreclosure sale, or acquired by that owner through foreclosure under a mortgage or deed of trust. This bill would also delete the sunset date authorizing local governments to impose civil fines and penalties for failure to maintain such a property. AB 1627 Author: Dickinson Title: Environmental Quality: Building Standards: Vehicle Miles Traveled Position: Oppose Location: Assembly Business, Professions and Consumer Protection Committee Summary: This bill would require the California Energy Commission (CEC) to prescribe standards to reduce vehicle miles traveled by occupants of residential and nonresidential buildings within the boundaries of a metropolitan planning organization. The bill would also prohibit local governments from issuing local building permits until it has been confirmed that the building satisfies the minimum standards established by the CEC. AB 1191 Author: Huber Title: Local Government Finance Position: Support Location: Senate Government and Finance Committee Summary: This bill would require county auditors to submit a claim to the Controller when there is not enough property tax revenue allocated to a local Educational Revenue Augmentation Fund to reimburse a city or county for amounts owed to them from the "triple flip" mechanism, which shifted local sales taxes to pay state debt, and the vehicle license fee (VLF)/property tax swap, where local agencies exchanged their VLF for property taxes. In both of these transactions the state's commitment was to reimburse local agencies dollar -for -dollar. This measure is designed to address that problem and ensure that the revenue those agencies are entitled to receive pursuant to the triple -flip and VLF -property tax swap is provided, Passed Assembly Local Government Committee — 1/11/12 Passed Assembly Appropriations Committee — 1/19/12 Passed Assembly Floor— 1/26/12 CONSENT CALENDAR TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: TITO HAES, DIRECTOR OF PUBLIC WORKS/ASSISTANT CITY MANAGER VIA: JAMES MAKSHANOF , LITY MANAGER DATE: MAY 7, 2012 SUBJECT: AMGEN TOUR OF CALIFORNIA REIMBURSEMENT AGREEMENT RECOMMENDATION It is recommended that the City Council approve the attached Reimbursement Agreement for the 2012 Tour of California, Stage 7. BACKGROUND On Saturday May 19, 2012 the Amgen Tour of California will hold a bicycle race that will begin in the City of Ontario and finish at the Mt. Baldy ski area parking lot. The stage will cover 78.32 miles as it winds its way through the foothills and the San Gabriel Mountains. Stage 7 is one of eight that will be held, with the race beginning on May 13`h in Santa Rosa and ending May 20`h in Los Angeles. The route covered May 19`h will include a segment through the City of Azusa. Starting at the northern city limits on Hwy. 39 (at approximately 2:00 P.M.) approximately 128 cyclists and various support personnel will race through Azusa. At Sierra Madre Ave. the race will head east towards Glendora. The total distance in Azusa is 3.3 miles that the rider will complete in approximately 7 minutes, however, it will take approximately an hour for the entire race to move through our City limits. AEG Cycling LLC (AEG) the race organizer has been meeting with Public Works and PD to ensure that the event does not expose the City to liability or negatively impact the residents and businesses of the City. The City's Police Department has been working with AEG and the California Highway Patrol (CHP) to coordinate temporary road closures and traffic control. AEG and the CHP employ a rolling closure system to the roadways to minimize road closures. Azusa Police Department will assist with monitoring intersections for traffic control. AEG has agreed to reimburse the City for all reasonable costs associated with the event. The reimbursement agreement before the City Council ensures that AEG will comply with the City's requests for insurance requirements, staff cost reimbursement and a public right-of-way Encroachment Permit. Staff is confident that with the reimbursement agreement that has been written by the City Attorney, that the race will have minimal impact upon the residents and businesses of Azusa. AEG has already provided a check for $4,655 per the staff cost calculated by PD, AEG will also reimburse the City for any excess costs. FISCAL IMPACT There will be no fiscal impact as AEG has agreed to reimburse the City for all reasonable costs. ATTACHMENTS Encroachment Permit Event Route Map Reimbursement Agreement CITY OF AZUSA REIMBURSEMENT AGREEMENT This Reimbursement Agreement ("Agreement") is made this 7th day of May, 2012, by and between the City of Azusa, a California municipal corporation (the "City"), and the AEG Cycling ("AEG Cycling"), a Limited Liability Corporation. RECITALS This Agreement is made with respect to the following facts: A. The 2012 Amgen Tour of California is a Tour de France -style cycling road race, presented by AEG, that challenges the world's top professional cycling teams to compete along a demanding course through various cities in California from May 13 to 20, 2012. B. AEG has asked City to use various portions of the City's right-of-way as part of the Amgen Tour though the City as more particularly described in Exhibit A. C. City will incur various engineering, law enforcement and staff costs, as further described in Exhibit B ("Costs"), to accommodate AEG's course. D. AEG has agreed to reimburse the City for such Costs related to the City's accommodation of the tour as set forth in this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the following mutual promises and agreements, City and AEG Cycling agree as follows: 1. Incorporation of Recitals. The parties agree that the Recitals constitute the factual basis upon which the City and AEG have entered into this Agreement. The City and AEG each acknowledge the accuracy of the Recitals and agree that the Recitals are incorporated into this Agreement as though fully set forth at length. 2. City to Provide Access to Rights -of -Way. As a necessary and indispensable part of its ability to complete the tour, AEG requires access to various rights- of-way throughout the City, as described in the attached Exhibit "A", (the "Route"). City shall provide access to the Route. 3. AEG to Cooperate with City and Staff. AEG agrees to cooperate in good faith with the City and its staff. AEG agrees that it will instruct its agents, employees, consultants, contractors and attorneys to reasonably cooperate with the City and Staff to provide all necessary documents or information reasonably requested of them by the City to establish and provide the Route. -1- 4. AEG's Reimbursement of Costs and Expenditures. AEG shall reimburse the City for the total sum of the actual costs and expenditures incurred by the City relative to the establishment and use of the Route. 5. Deposit. Within ten (10) calendar days of the execution of this Agreement, AEG shall submit a deposit to the City in the amount of ($4,655) to cover a portion of the Costs. 6. Payment of Reimbursement Amounts. Immediately following the completion of the use of the Route, the City shall make written demand to AEG for payment of AEG's outstanding total costs minus any amounts received from AEG as a deposit. The City shall provide AEG with such reasonable documentation as AEG may request to substantiate any demands for payment. Within ten (10) days following receipt, AEG shall pay the City the amount demanded. 7. Term. The term of this Agreement shall commence on the date that this Agreement is approved by the City Council and fully executed by the parties and shall terminate when all work required has been completed to the City's reasonable satisfaction and AEG has satisfied all of its obligations under this Agreement including, without limitation, the obligation to reimburse the City for Costs. AEG's obligation to reimburse the City as provided in this Agreement shall survive the termination of this Agreement pursuant to Section 8. 8. Early Termination. The City may terminate this Agreement prior to the term set forth in Section 7 above, without cost or liability to the City, upon thirty (30) days prior written notice to AEG. AEG may terminate this Agreement prior to the end of the term set forth in Section 7 above upon thirty (30) days' prior written notice to the City; provided, however, that AEG has satisfied all of its obligations under this Agreement regarding reimbursement to the City. 9. Assignability. This Agreement may not be assigned by either party without the prior and express written consent of the other party, which consent shall not be unreasonably withheld. 10. No Oral Modifications. This Agreement represents the entire understanding of the City and AEG and supersedes all other prior or contemporaneous written or oral agreements pertaining to the subject matter of this Agreement. This Agreement may be modified, only by a writing signed by the authorized representatives of both the City and AEG. 11. Binding Upon Successors. This Agreement and each of its terms shall be binding upon the City, AEG and their respective officers, elected officials, employees, agents, contractors, and permitted successors and assigns. 12. Legal Challenges. Nothing herein shall be construed to require Cityto defend any third party claims and suits challenging any action taken by the City with regard to any procedural or substantive aspect of the City's providing of the Route. AEG may, however, in its sole and absolute discretion appear as real party in interest in any such 2 third party action or proceeding, and in such event, the City reserves the right to appear, defend itself and control its defense, and AEG shall be responsible and reimburse the City for whatever legal fees and costs, in their entirety, including actual attorneys' fees, which may be incurred by the City in defense of such action or proceeding. This City shall have the absolute right to retain such legal counsel as the City deems necessary and appropriate, and AEG shall reimburse the City for any and all attorneys' fees and costs incurred by the City as a result of such third party action or proceeding. 13. Attorneys' Fees. In the event that any action or proceeding, including arbitration, is commenced by either the City or AEG against the other to establish the validity of this Agreement or to enforce any one or more of its terms, the prevailing party in any such action or proceeding shall be entitled to recover from the other, in addition to all other legal and equitable remedies available to it, its actual attorneys' fees and costs of litigation, including, without limitation, filing fees, service fees, deposition costs, arbitration costs and expert witness fees, including actual costs and attorneys' fees on appeal. 14. Jurisdiction and Venue. This Agreement is executed and is to be performed in the City of Azusa, California, and any action or proceeding brought relative to this Agreement shall be heard in the appropriate court in the County of Los Angeles, California. The City and AEG each consent to the personal jurisdiction of the court in any such action or proceeding. 15. Severability. If any term or provision of this Agreement is found to be invalid or unenforceable, the City and AEG both agree that they would have executed this. Agreement notwithstanding the invalidity of such term or provision. The invalid term or provision may be severed from the Agreement and the remainder of the Agreement may be enforced in its entirety. 16. Headings. The headings of each Section of this Agreement are for the purposes of convenience only and shall not be construed to either expand or limit the express terms and language of each Section. 17. Representations of Authority. Each party signing this Agreement on behalf of a party which is not a natural person hereby represents and warrants to the other party that all necessary legal prerequisites to that party's execution of this Agreement have been satisfied and that he or she has been authorized to sign this Agreement and bind the party on whose behalf he or she signs. 18. Notices. Notices required under this Agreement shall be sent to the following: If to the City: City of Azusa Tito Haes, Public Works Director 213 E. Foothill Blvd. Azusa, CA 91702 -3- If to AEG Cycling LLC. AEG Cycling ATTN: Eric Smith, AMGEN Tour of California Course Director 800 W. Olympic Blvd., Suite 305 Los Angeles, CA 90015 Notices given pursuant to this Agreement shall be deemed received as follows: (1) If sent by United States Mail -five (5) calendar days after deposit into the United States Mail, first class postage prepaid. (2) If by facsimile - upon transmission and actual receipt by the receiving party. (3) If by express courier service or hand delivery - on the date of receipt by the receiving party. The addresses for notices set forth in this Section 18 may be changed upon written notice of such change to either the City or AEG, as appropriate. 19. Indemnification. AEG shall defend, indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions or willful misconduct of AEG, its officials, officers, employees, agents, consultants and contractors arising out of or in connection with the use of the Route byAmgen Tour participants or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. AEG shall defend, at AEG's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against City, its directors, officials, officers, employees, agents or volunteers. AEG shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, agents or volunteers, in any such suit, action or other legal proceeding. AEG shall reimburse City and its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. AEG's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials officers, employees, agents or volunteers. [SIGNATURES ON FOLLOWING PAGE] U Dated: CITY OF AZUSA a California municipal corporation By: Mayor ATTEST: By: City Clerk APPROVED AS TO FORM: Best Best & Krieger LLP City Attorney Dated: AEG CYCLING, LLC By: Name: Title: -5- Exhibit - A COURSE DESCRIPTION - t g or - r Canyon Rsmh 40 tl r ! i p k r ilijj 1 `1 j r, Inn BVI ..a..�yArirP00ro.o 4 ' M1fl.'b�I C.Ortift6 pl�tlndiMeYl • wtla T >N �+ � .Y RIOr189f s', 4. r �qt r e• Park � : CGrpanrn Or ; Gi Q.' nftd .& ffm Police Officers Community Service Officers Street Maintenance Workers Temporary Signage EXHIBIT - B COSTS WA an Mt: Balft,'. A Af% f East Fork S 9 A RM .. ...... t, b I o AIA v, 4 k ��4fj,� 4,WestFork 'San LIaDnef HIV6f A 6, NISSAN q At. BaIdY'Villb -INA1 1UNAL POKSTo Km W 4 g�<r X 0 . JIf .1; 7 4 4 17P MQ Moms lilde-Rd; Sierra Madre Ave Duarte Glendoll Foothill Blvd 7 tR St A -1 •E LN 210 9! o0jFoothill Blvd As S lu nta 2 St A itBIvd Stage 7 Presented by 10f, 'AMMOntario to Mt. Baldly TOUR f Saturday, May 1% 2012 CALIFORNIA Total Distance: 78.3 mi./126.0 km ®AEG Cycling ReWsed 2n/12 PERMIT NO. CITY OF AZUSA ENGINEERING DIVISION 213 E. Foothill Blvd. Azusa, CA 91702-1395 ENCROACHMENT PERMIT APPUCATION Project Location: Oq.17 F llz F CAL r' A 8z -%,t) Owner. L ' Ms ©F :`- Phone: Address: Contractor. Ckfa S r '-i Phone: (: - S 1-101,52— Address: 2Address: �l 3 i31CiUNA�.tE G CVCLrNG LLL State License No. License Type: THIS IS A TIME LIMITED P€RMIT ALL WORK AUTHORIZED MUST BE COMPLETED WITHIN 60 CALENDAR DAYS QTY. DESCRIPTION OF WORK FEE DEPOSIT curb and I or gutter curb drain sidewalk drive a ad1 street trench ! excavation street/ parkway obstruction trash container I roll -off sewer latcrel; d e test I blockape check - other. TOTAL: O sit should be returned to: Address: NOTE: APPLICA7 TO NOTIFY POLICE DEPARTMENT AT (626) 8123200 AND FIRE DEPARTMENT AT (626) 334-0011 OF LANEISTREET CLOSURES. PERMITSHALLBE MAINTAINED AT JOSSITE. Request inspsriions-48 hours in advance with Public Works Inspector. Richard Oardes at (628) 6125230 INSPECTION RECORD Date Comment Inspected By Applicant Signature: �rLt`>+w' Date:"z�iZ (Str2sAe:nSlus= FOR ADDii i0rvAL rcevvir jvlely-u1 CITY OF AZUSA PUBLIC RIGHT OF WAY ENCROACHMENT PERMIT APPLICATION LICENSED CONTRACTOR'S DECLARATION I hereby affirm that I am licensed under the provision.` of Chapter 0 (wmmoncing wah section 700ra) of Division 3 of Bic Business and Provision Code, and ms noense is in full force. and effeci License No. Contractor _ Applicant _ License Class [ ] I am cxorirpt from the licensing requirements as I mm n licensed architect or a registered pralessionel engineer acting in my professional capacity (Section 7051, Business and Professions Code). License or R%. No. �M. Date. WORKER'S COMPENSATION DECLARATION I hereby affirm the, I have u certdraste of consent to sea` insure or a certificate or Worker's Compensation Lnsur- anoe or a cc�tified copy theseaf (Sec. 3800. Lats. C) Policy No — Company_ [ j Cerffed copy c hereby furnished. [ ] Ccilffied copy rs filed wah the V ty. CERTIFICATE OF EXEMPTION FROM WORKER'S COMPENSATION INSURANCE I certify that in the pondmrareae of the vm k for which L%is permit I$ (,sued, I. shag not employ any porsea an any Man= so as to became subject to the LSFukoft Com- permateon Lads. Data Applicant NOTE TO APPLICANT: If alter matting this dertdicssie a` Excrnphnn, you; should become subjectto the Worker's Compensation provision of the Labor Code, you must rorwim comply v&h such provisoes or the: permt shell be deemed revoked. HOME -OWNER BUILDER DECLARATION I hereCy attirmt'iatt I am exempt from the Contractor's LJ7ansa Low br the following rcosons (Serdan 7031.5, Business and -Professions Coda). [ ] L. as avvnw or the property, or my employees Ntth vragcs as their sale corroensefion, will do the work and ire structure is net itderded a: Off area tot sale (Section 7044, Business and Pirof si;iwis Code). { ] 1, as owner of the property, am errhisively contact - Ina with Liconsud cureracrors tc construz: the project (Section 7044, Business and Professions Code). EXEMPTION FROM CITY BUSINESS. LICENSE I hereby of mi that i am exempt from lite city business hoense requirement for the foStoaSng reason. 1, as mvrrr of Uwe piuj". will do the work and the atrucluic is not intended or offered for sale. LIABILITY INSURANCE hereby affirm the' I have a liability insurance policy. con, ing bodily injury and propesy damage, with aggicgatr. Ilmds in the amount or s1,000A0o and my policy rs in fdl tome and effect (Standard SpeclriiAlirnrx for Public Works Consbuti lion, Sec. 7-3) Polity No. Camperry, Certified copy is hereby furnished. t 1 (certified copy is filed with the cty. I hereby affirm that I am exempt from Lr-- [amity insurance requirement for the following reason: [ ( 1, as owner of the property, will do the work and the structure is not intended -or offered fair sale. In lieu of pro=mng a liability insurance policy. I hereby agree to accept all responsibili-ty for liabirt, for fly s1jaly and property damage. and in the event any claim, surf of o0itin is brought against Into Cky of Azusa, Its orlicers, employees, or agents thereof. I shall dcfcnd, hrdernnlry, and hold harm. less the CRy. its. othoers, emplairees, m agents from such claim, sud, at action. Signsrure of Ap65rant IAre. I cc", that I have read this application and its attached perrct conditions and state that tike above infommiion is correct I understand that incorrect information is cause for revocation of titan pe -,7-,%L I agree to comply with all city and sfato laws, rcgulatiorr.+, and ordinances relating to construction and all attached permit conditions 'A` signature of Applicant, Date Purmn Issuer! By Date 7 AGENCY CONSENT ITEM TO: HONORABLE CHAIRPERSON AND AGENCY MEMBERS FROM: MARCENE HAMILTON, SUCCESSOR AGENCY TREASU R DATE: May 7, 2012 SUBJECT: SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF AZUSA TREASURER'S STATEMENT OF CASH BALANCES FOR THE MONTH OF MARCH 2012 RECOMMENDATION It is recommended that the Agency Members receive and file the Agency Treasurer's Statement of Cash Balances for the Successor Agency of the Former Redevelopment Agency of the City of Azusa for the month of March 2012. BACKGROUND Transmitted herewith is the Agency Treasurer's Statement of Cash Balances for the Successor Agency of the City of Azusa ("Agency') for the month of March 2012. Agency investments are made in accordance with the Successor Agency Investment Policy approved and adopted with Resolution No. 11-R43 dated November 21, 2011, and Government Code Section 53601. Investment activity is summarized in the "Treasury Book Balances -Cash and Investments" schedule, attached herewith and an integral part of this report. Agency cash and investment balances decreased by $166,542.35. The Agency is the issuer of several Merged Project Tax Allocation Bonds. Of the total cash and investments of $4,117,952.62. Wells Fargo Bank, the fiscal agent, held $4,117,952.62 on behalf of the Agency. These funds are restricted for payment of debt service on the bonds and special bond - funded projects. The remaining $0.00 was available for Agency operating, debt service, restricted expenses, and outstanding liabilities. FISCAL IMPACT There is no fiscal impact. This is an informational report. MH: EG SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY AZUSA TREASURY BOOK BALANCES • CASH AND INVESTMENTS MARCH 2012 C Deposits Cost Interest Mkt Bank Accounts Allowed Amount Pledged Securities Maturity Rate Value CASH AND INVESTMENTS HELD BY AGENCY TREASURER Wells Fargo Bank Government Checking No limit $000 FDIC up to $10D,000.00 Ongoing 0000% $0.00 >$100,000 collatedzed by 110% in govn't securities Local Agency Investment Fund (LAIF) $2D.000,000.00 0.00 Backed by faith 8 credit of the Slate of Calffomia Ongoing 0.389% 0.00 SUBTOTAL CASH AND INVESTMENTS ' HELD BY AGENCY TREASURER: $0.00 $0.00 Interest Collections: $0.00 CASH AND INVESTMENTS HELD BY FISCAL AGENT 2003 Merced Project Tax Allocation Bonds 2003A Special Fund AIM Gov't Portfolio No limit 000 Investments in direct obligations of the U.S. Treasury Ongoing 0.000% 0.00 2003A Interest Amount AIM Gov't Portfolio No limit 0.00 Investments in direct obligations of Ne U.S. Treasury Ongoing 0.000% 0.00 2003A Principal Account AIM Gov't PoMalio No limit 0.76 Investments in direct obligations of the U.S. Treasury Ongoing O.00D% 0.78 200M Reserve Amount Reliance Certificate of Deposit No limit 866,442.59 1$100,000 whaterized by 110% in govn't securities 12104114 0.010% 866.442.59 Reliance Trust Co. Cash Equivalent Mmkt No limit 1,150.79 NIA Ongoing 0.000% 1,150.79 AIM Gov't Portfolio No limit 256,867.35 Investments in direct obligations of the OS. Treasury Ongoing 0.000% 256,86235 2003 Named Project Tax Allocation Bonds Subtotal: $ 1,124,461.51 $1,124,461.51 Interest Collections: $0.87 2006 Named Project Tax Allocation Bonds 2005 Special Fund Wells Fargo Advantage Gov't Mmkt Na limit $ 0.05 NIA Ongoing 0.000% $ 0.05 2005Int erest Account Wells Fargo Advantage Gov't MmM No limit 0.00 NIA Ongoing 0.000% 0.00 2005 Redevelopment Fund AIM Institutional Prime -Cash Mgmt/MMk No limit 0.00 NIA Ongoing 0.000% D.DO 2005 Reserve Account Reliance Certificate of Deposit No limit 703,52806 1$100,000 collaterized by 110% in govn't securities 12/04/14 0.010% 703.52806 Reliance Trust Co. Cash Equivalent Mmkl No limit 178,96650 N/A Ongoing 0.010% 178.966.50 2005 Merged Project Tax Allocation Bonds Subtotal: $ 882,494.61 $882,494.61 Interest Collections: $0.38 2007A Named Project Tax Allocation Bonds 2007A Bond Fund Wells Fargo Advantage 100% Treasury Mmkt No limit $0.00 NIA Ongoing O.00D% $000 2007A Interest Account Wells Fargo Advantage 100% Treasury Mmkt No limit $0.00 NIA Ongoing 0.000% $OAD 2007A Principal Account Wells Fargo Advantage 100% Treasury Mmkt No limit $ 0.34 NIA ongoing 0.000% $ 0.34 2007A Merged Project Tax Allocation Bonds Subtotal: $0.34 $0.34 Interest Collections: $0.00 20078 Memetl Proiecl Tax Allocation Refunding Bonds 20078 Bond Fund Wells Fargo Advantage 100% Treasury Mmkt No limit 0.00 NIA Ongoing 0.000% 000 20078 Interest Account C 7 SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY.AZUSA TREASURY BOOK BALANCES - CASH AND INVESTMENTS Deposits Cost Interest Mkt Bank Accounts Allowed Amount Pledged Securities - Maturity Rate Value* Wells Fargo Advantage 100% Treasury Mmkt No limit 0.00 N/A Ongoing 0.000% 0.00 20076 Principal Account Wells Fargo Advantage 100% Treasury Mmkt No limit 0.07 N/A Ongoing 0.000% 0.07 20078 Reserve Fund Reliance Cedificale of Deposit No limit 162,521.25 >$I00.000 collaterized by 110% in govn't securities 12104/14 0010% 162.521.25 Reliance Trust Co. Cash Equivalent Mmkt No limit 165.429.24 NIA Ongoing 0000% 165,429.24 2007B Merged Project Tax Allocation Bonds Subtotal: $ 327,950.56 b 327.950.56 Interest Collections: $0.08 2008A Named Protect Tax Allocation Bond. 2008A Bond Fund Wells Fargo Advantage 100% Treasury Mmkt No limit 0.01) NIA Ongoing 0000% 0.00 2008A Interest Account Wells Fargo Advantage 100% Treasury Mmkt No limit 0.00 NIA Ongoing 0.000% 0.00 2008A Reserve Fund Reliance Trust Co. Savings and Can. of Deposit No limit 397.240 76 >$100,000 collatedzed by 110% in govn't securities 12119113 2.650% 397.240.76 Reliance Trust Co. Cash Equivalent Morn No limit 259,165.31 NIA Ongoing 0.010% 259,165.31 200BA Redevelopment Fund Wells Fargo Advantage 100% Treasury Mmkt No limit 0.07 NIA Ongoing 0.000% 0.07 2008A Merged Project Tax Allocation Bonds Subtotal: $656,406.14 $656,406.14 Interest Collections: $0.49 2008B Merced Protect Tax Allocation Housing Bonds 20088 Band Fund Wells Fargo Advantage Government Mmkt No limit 0.00 NIA Ongoing 0.000% O.DO 2008B Interest Account Wells Fargo Advantage Government Mmkt No limit 0.00 N/A Ongoing O.ODO% 0.00 2DO8B Reserve Fund Reliance Trust Co. Savings and Cert. of Deposit No limit 532,29d 66 >$100.000 collatenzed by 110% in govn't securities -' 1111113 4.000% 532294.46 Reliance Trust Co, Cash Equivalent Mmkt No limit 594,345.00 N/A Ongoing 0.010% 594,345.00 20088 Low d Moderate Income Housing Fund Reliance Trust Co. Cash Equivalent Mmkt No limit 0.00 >$100,000 collatenzed by 110% in govn'1 securities Ongoing 0A00% 0.00 Wells Fargo Advantage Government Mmkt No limit D.00 N/A Oa9glgg 0000% 0.00 20088 Merged Project Tax Allocation Bonds Subtotal: $ 1.126.639.46 S 1,126,639.46 Interest Collections: 53.15 SUBTOTAL CASH AND INVESTMENTS HELD BY FISCAL AGENT: S 4.117.952.62 $ 4.117,952.62 Total - Azusa Redevelopment Agency Cash.and Investments: S 4,117,952.62 $ 4,117,95262 Total Interest Collections: $4.97 Source of Market Value Information: Wells Fargo Corporate Trull. Trustee Local Agency Investment Fund (I -AIF) Wells Fargo Institutional Securities Tax Allocation Bond Data Is based on Tmslee-generated Statements; bond funds listed herein are restricted for payment of debt service and eligible projects and governed by stria regulations described in the Trust Indentures. -Market Value is the current pnoe at which a security can be traded or sold. - SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY AZUSA AGENCY TREASURER'S STATEMENT OF CASH AND INVESTMENT COST BALANCES MARCH 2012 Beginning Cash Balance (All Restricted and Unrestricted Accounts & Investments) Receipts (All Sources) Disbursements Ending Cash Balance (All Restricted and Unrestricted Accounts & Investments) $4,284,494.97 4.97 (166,547.32) $4,117,952.62 SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY AZUSA TREASURER -HELD ACCOUNTS MARCH 2012 WELLS FARGO GOVT CHKG SECURITIES LAIF TOTAL BAL @ 3/1/12 0.00 0.00 0.00 RECEIPTS DEPOSITS 0.00 0.00 INTEREST 0.00 TREASURER'S ADJUSTMENTS 0.00 TREASURER'S ADJUSTMENTS 0.00 TOTAL RECEIPTS 0.00 0.00 0.00 0.00 DISBURSEMENTS: CASH DISBURSEMENTS 0.00 REIMBURSE CITY 0.00 OTHER DISBURSEMENTS 0.00 TOTAL DISBURSEMENTS 0.00 0.00 0.00 0.00 OPER INCREASE/(DECREASE) 0.00 0.00 0.00 0.00 TRANSFERS: CHECKING TRANSFERS SAVINGS TRANSFERS LAIF TRANSFERS SECURITIES LA COUNTY TRANSFERS REHAB CKG TRANSFERS TOTAL TRANSFERS BAL @ 3/31/12 fit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 WARRANT REGISTER NO. WARRANTS DATED 3/16/12 THROUGH 3/31/12 FOR REDEVELOPMENT AGENCY MEETING OF 5/07/12 RESOLUTION NO. 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 -110 -REDEVELOPMENT ADMINISTRATION FUND 80 -125 -CBD CAPITAL PROJECTS FUND 80 -135 -WED CAPITAL PROJECTS FUND 80 -185 -RANCH CAPITAL PROJECTS FUND 80-165-624-2008A TAX ALLOCATION BONDS 81 -155 -TAX INCREMENT SET-ASIDE FUND 81 -165 -LM MRG TAB08B HS 82 -125 -CBD DEBT SERVICE FUND 82 -135 -WED DEBT SERVICE FUND 82 -165 -MERGED PROJECT TAX ALLOCATION BONDS 82 -185 -RANCH CENTER DEBT SERVICE FUND $ 325.89 2.578.14 21.02 69.824.97 TOTAL ALL FUNDS: $ 72.750.02 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 Chairman I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Azusa at a regular meeting there of, held on the day of 2012. AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS: ABSTAIN: AGENCY MEMBERS: ABSENT: AGENCY MEMBERS: Secretary City of Azusa HP 9000 05/01/12 O P E N H O L D D B LISTING By P�/Entity Nacre Page 1 NM O1, 2012, 11:16 AM ---req: RUBY -------leg: GL JL --- loc: BI-Tfl;I-I--- job: 885107 #}J9673---pgn: C14400 <1.34> rpt id: CHFLZR02 SE[.E!uT FLND Oades: 80-88 ; Check Issue Rtes: 031612-033112 PE ID PE Hare AO= NU= / ice NBEER Invoice NurLer D_sce-iption St Disc. Art. Dist. Art. V05613 AT&T 8010110000-6915 6263345464022412 626-3345464 PD 0.00 8.43 000[[:7 • : •1 V11556 V11555 V07650 V00331 6 PEID Lhux . : 0.00 Paid: Total: 8.43 8.43 69743 FLEX ALMIN F= FD 0.00 2.46 MID i d: 0.00 Paid: Total: 2.46 2.46 672594 672594 CPS 9= FD 0.00 1,228.14 PFS d: 0.00 Paid: 1,228.14 Total: 1,228.14 EB000278293 PR) PREM05058510 FD 0.00 31.63 PEID d: 0.00 Paid: 31.63 Total: 31.63 4577715 HvD 02012-0088/P PD 0.00 3.16 MID . : 0.00 Paid: Total: 3.16 3.16 0031827 003-1827 invoice PD 0.00 1,350.00 PEID Urd: 0.00 Paid: Total: 1,350.00 1,350.00 781804231 117052788/E.IDLD FD 0.00 21.02 PFS: d: 0.00 Paid: Total: 21.02 21.02 6 .7 WCi of Azusa HP 9000 05/01/12 O P E N H 0 L D MY 01, 2012, 11:16 AM ---req: RUBY -------leg: Q, JL --- loc: D B LISTING BI-Tr7.I`-I--- jcb: 885107 W9673- p CH400 <11.344 rpt pp�ac�e id: OHFLTR02 c2MCT FUND Cbdes: 80-88 ; Check Issue Dates: 031612-033112 PE ID PE Nacre AC= NUMBER / JCB N vEER Invoice Hurter 0 Dss=pticn St Disc. Ant. Dist. Amt. V05574 IIXN MJJUMN RE 8010110000-6493 0M319EXK8326 EXK8319-E T326 PD 0.00 144.07 PEID Unpaid: 0.00 Paid: 144.07 Tbtal: 144.07 V92617 PRICE FPMILY 8210135000-7001/503301-7001 PRICE -3/30/12 Interest Expense PD 0.00 69,824.97 PEID d: 0.00 Paid: 69,824.97 Tbtal: 69,824.97 V08056 V08056 SIPS INSURAN 8000000000-2725 STV\= INSURAN 8000000000-3044 021812 021812D MSRCM012 LIFE P PD 0.00 M!R=012 DISAB PD 0.00 37.71 115.22 PETD d: 0.00 Paid: 152.93 Total: 152.93 V00388 VERDIN 8010110000-6915 6261975078022812 626-1975078 PD 0.00 19.53 PEID LYMd: 0.00 Paid: 19.53 'Ibtal: 19.53 V04678 VERDIN W l;ELESS 8010110000-6915 1060444281 INV# 1060444281 PD 0.00 -36.32 PEID Uljpmaid: 0.00 Paid: -36.32 Total: -36.32 GRAND TOTALUrpaud: 0.00 Paid: 72,750.02 Total: 72.750.02 r Y✓ q4+'..y, r.. + r4 d +z� R7 usg� CITY OF AZUSA MINUTES OF THE AZUS.A PUBLIC FINANCING AUTHORITY MONDAY, FEBRUARY 6, 2012 — 8:36 P.M. The Board Members of the Azusa Public Financing Authority of the City of Azusa met in regular session at the above date and time in the Azusa Auditorium located at 213 East Foothill Boulevard, Azusa. Chairman Rocha called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: BOARDMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA ABSENT: BOARDMEMBERS: NONE ALSO PRESENT: Also Present General Counsel Carvalho, 'Executive Director Makshanoff, Department Heads, Secretary Mendoza, Deputy Secretary Toscana. The CONSENT CALENDAR consisting of item G-1 and G-2 was approved by motion of Board Member Consent Cal Carrillo, seconded by Board Member Gonzales and unanimously carried. Approved 1. Minutes of the regular meeting November 21, 2011, were approved as written. Min appvd 2. The Azusa Public Financing Authority Treasurer's Report as of December 31.2011 was received and Tress Rpt filed. It was consensus of the Board Members to adjourn. Adjourn TIME ADJOURNMENT: 8:37 P.M. SECRETARY NEXT RESOLUTION NO. 12-P1. AZUSA PUBLIC FINANCING AUTHORITY CONSENTITEM TO: THE HONORABLE CHAIRPERSON AND MEMBERS OF THE BOARD FROM: MARCENEHAMILTON, AZUSAPUBLIC FINANCING AUTHO TYSURER DATE: May 7, 2012}RI SUBJECT: ' AZUSA PUBLIC FINANCING AUTHORITY TREASURER'S STATEMENT OF CASH BALANCES FOR THE QUARTER ENDED MARCH 31, 2012 RECOMMENDATION It is recommended that the Board Members receive and file the Azusa Public Financing Authority Treasurer's Statement of Cash Balances for the quarter ended March 31, 2012. BACKGROUND Transmitted herewith is the Treasurer's Report for the Azusa Public Financing Authority for quarter ending March 31, 2011 Authority investments are made in accordance with the Authority Investment Policy adopted and approved with Resolution No. 11-C84 dated November 21, 2011, and Government Code Section 53600 et. seq. The Azusa Public Financing Authority is the issuer of three bond issues -the 1994 Sewer System Project Refinancing Certificates of Participation, the 2003 Capital Improvement Project Refinancing Certificates of Participation, and the 2006 Water System CIP Parity Revenue Bonds. The funds for these issues are restricted for payment of eligible capital improvement expenses and debt service on the bonds, and are held and invested by fiscal agents who are trustees for the bonds. For quarter ending March 31, 2012, fiscal agents held total investments of $5,080,361.95. Total cash received for the quarter was $744,421.22, and disbursements of $1,571,199.76, were made, resulting in a total overall net decrease of$826,778.54. Disbursements were primarily for Water System Project costs, and cash receipts wereprimarily interest income and debt service payment funds from the City FISCAL IMPACT The balance of cash and investments and projected revenues for the next six months are expected to be sufficient to meet cash disbursement requirements for at least the next six months. MH:EG CITY OF AZUSA AZUSA PUBLIC FINANCING AUTHORITY TREASURY,BOOK BALANCES - CASH AND INVESTMENTS (]l IARTFR FNfHNr. MARCH 11 91119 maximum Deposits Cost Interest Mkt _ Bank Accounts Allowed Amount Pledged Securities Maturity Rate Value' CASH AND INVESTMENTS HELD BY FISCAL AGENT Wells Fargo Bank, Trustee 1994 Sewer Refunding Certificates of Participation Installment Payment Fund Wells Fargo Treasury Plus MMkt No Limit $ - N/A ! Ongoing 0.000% $ - Reserve Fund Berkshire Hathaway Inv Agrmt N/A $ Guaranteed Investment Agreement 6/1/2023 0.000% $ 1994 Sewer Refunding CDP's Subtotal: $ $ Interest Collections: $ - 2003 CIP Refunding Certificates of Participation Lease Payment Fund AIM Gov't Portfolio No Limit $ 26.19 Investments indirect obligations of the U.S. Treasury Ongoing 0,000% $ 26.19 Reserve Fund AIM Gov't Portfolio No Limit $462,50770 Investments in direct obligations of the U.S. Treasury Ongoing 0.020% 482507.7 2003 CIP Refunding GOP's Subtotal: $482,533.69 $ 482,533.89 Interest Collections: $ 33.89 2006 Water System CIP Parity Revenue Bonds Revenue Fund Wells Fargo 100% Treasury MMkt No Limit $904,423.74 N/A Ongoing - 0000% $ 904,423.74 Interest Account Wells Fargo 100% Treasury MMkt No Limit $0.03 N/A Ongoing 0.000% S 0.03 Principal Account Wells Fargo 100% Treasury MMkt No Limit $0.08 N/A Ongoing 0.000% $ 0.08 Reserve Fund Wells Fargo 100% Treasury MMkt No Limit $3,650,129.09 N/A Ongoing 0.000% $ 3,650,129.09 Federal Home Loan Mtg. Corp. No Limit $0.00 Investments in direct obligations of the U.S. Treasury 612812010 0.000% $ Water System Acquisition Fund Wells Fargo 100% Treasury MMkt No Limit $43,275.12 NIA Ongoing 0.010% $ 43,275.12 2006 Water System CIP Revenue Bond Subtotal: $4,597,628.06 $ 4,597,828.06 Interest Collections: $ 274.02 Total -Azusa Public Financing Authority Cash and Investments: $5,080,361.9$ $5,060,361.95 Total Interest Collections: $ 307.91 Source of Market Value Information: Welts Fargo Bank, Trustee Bond Data is based on Trustee -generated Statements: bond funds listed herein are restricted for r payment of debt service and eligible projects and governed by strict regulations described in the Trust Indentures. 'Market Value is the current price at which a security can be traded or sold. CITY OF AZUSA AZUSA PUBLIC FINANCING AUTHORITY TREASURER'S STATEMENT OF CASH AND INVESTMENT COST BALANCES QUARTER ENDING MARCH 31, 2012 Beginning Cash Balance Receipts (All Sources) Disbursements Ending Cash Balance (All Restricted and Unrestricted Accounts & Investments) I $ 5,907,140.49 $ 744,421.22 $ (1,571,199.76) $ 5,080,361.95 ° Marcene Hamilton, Agency Treasurer i III, ..f47 T - 0.1-;:firik-'11:1#.4-44: stl`,•a' AZUS CONSENT CALENDAR TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: KERMIT FRANCIS, INTERIM DIRECTOR OF HUMAN RESOURCES/PERSONNEL OFFICER VIA: JAMES MAKSHANO7 , CITY MANAGER DATE: MAY 7, 2012 SUBJECT: HUMAN RESOURCES ACTION ITEMS RECOMMENDATION It is recommended that the City Council approve the following Personnel Action Requests in accordance with the City of Azusa Civil Service Rules and applicable Memorandum of Understanding(s). A. MERIT INCREASES AND/OR REGULAR APPOINTMENTS: DEPARTMENT NAME CLASSIFICATION EFFECTIVE RANGE/STEP DATE BASE MO. SALARY UTL Steve Gonzalez Water Distribution Worker I Merit Increase 5167/4 04/05/2012 $4,393.15 B. FLEXIBLE STAFFING PROMOTION: The following flexible staffing promotional appointments have been requested by department head (s)pursuant to the Rules of the Civil Service System. DEPARTMENT NAME CLASSIFICATION EFFECTIVE RANGE/STEP FROM/TO DATE BASE MO. SALARY RFS Ramon Arevalo From: Park Maint. Worker II 04/17/2012 4174/4 To: Park Maint. Worker III $4,666.89 F. SEPARATION: The following separations are submitted for informational purposes. DEPARTMENT NAME CLASSIFICATION EFFECTIVE DATE UTL Derek Baird Water Distribution Worker 04/12/2012 III UTL Thomas Jackson Line Mechanic 04/26/2012 Of FISCAL IMPACT r There is no fiscal impact, as positions listed are funded in approved department budgets. ..5-71/t, /2 J4