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HomeMy Public PortalAbout11-27-2002LPFA_sp~- _ This Agenda contains a brief genera! description of each item to be considered. Copies of fF~e Staff reports or other wriften documentation relating fo each item of business referred to on the Agenda are on trle in the Offrce of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager of (310) 603- 0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL 1=ILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. _ AGENDA ITEMS ON FILE FOR CONSIDERATION R E Ir i V E L3 AT THE SPECIAL MEETING OF CITY OF LYNW00[) THE LYNWOOD PUBLIC FINANCE AUTHORITY CITY CLERKS OFFICE TO BE HELD ON NOVEMBER 27, 2002 ~ ~~~ 2 E 2002 ~ 6:00 P.M. COUNCIL CHAMBERS 7l81"t~'1~''~111~1~141~Is 11330 Bullis Road, Lynwood, CA 90262 L~~~\~~~ ARTURO REYES C;~ _; PRESIDENT FERNANDO PEDROZA LOUIS BYRD VICE PRESIDENT MEMBER PAUL H. RICHARDS, II RAMON RODRIGUEZ MEMBER MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL .DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) 4. STATE OF CALIFORNIA FISCAL OUTLOOK -PROJECTIONS FOR 2002-2003 THROUGH 2007-2008 Comments: The Legislative Analyst's Office {LAO) recently released a report on the State of California's Fiscal Outlook that includes projections of revenues and expenditures from the current fiscal year through 2007-2008. According to the aforementioned report the State will end the current fiscal year with a general fund deficit of $6.1 billion, whereas at the time the budget was adopted there was anticipated to be a $1 billion surplus in the general fund. Additionally, the LAO has projected a cumulative $21.1 billion deficit by the end of the 2003-2004 fiscal year, unless corrective actions are taken by increasing revenues and decreasing expenditure obligations. The LAO goes on to project approximately $12 - $16 billion in deficits annually through the 2007-2008 fiscal year absent corrective actions. The potential effects as a result of these deficits at the state level on the City of Lynwood and other governmental agencies that depend on intergovernmental transfers as a major source of revenue cannot be determined at this time. A much clearer picture of these effects will be made public when the Governor submits his proposed budget to the Legislature in early January 2003. Recommendation: Staff respectfully requests that the Board of Directors of the Lynwood Public Finance Authority receive and file this information. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON DECEMBER 3, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. MEMORANDUM DATE: November 27, 2002 TO: HONORABLE PRESIDENT AND MEMBERS OF THE LYNWOOD PUBLIC FINANCE AUTHORITY FROM: Faustin Gonzales, Chief Administrative Officer BY: Autra C. Adams, Program Development Coordinator SUBJECT: State of California Fiscal Outlook -Projections for 2002-2003 through 2007-2008 PURPOSE: To provide the President & Members of the Lynwood Public Finance Authority with information on the updated projections for the State of California's fiscal outlook. BACKGROUND: The Legislative Analyst's Office (LAO) recently released a report on the State of California's Fiscal Outlook that includes projections of revenues and expenditures from the current fiscal year through 2007-2008. The projections included in this report are purely estimates based on current-law spending requirements and tax revisions. These estimates do not take into account any future corrective actions or policy decisions that could be made by the Legislature. ANALYSIS: The 2003-2004 State of California budget will be even more challenging than the current years budget due to revised projections that show a much higher than anticipated deficit for current and future years. According to the aforementioned report the State will end the current fiscal year with a general fund deficit of $6.i billion, whereas at the time the budget was adopted there was anticipated to be a $1 billion surplus in the general fund. Additionally, the LAO has projected a cumulative $21.1 billion deficit by the end of the 2003-2004 fiscal year, unless corrective actions are taken by increasing revenues and decreasing expenditure obligations. The LAO goes on to project approximately $12 - $16 billion in deficits annually through the 2007-2008 fiscal year absent corrective actions. The unforeseen deficits are attributed to the budget adopted for the current year actually being unbalanced because the gap between expenditures and revenues for current and new law weren't taken into effect and soft economic performance in general. The economy has caused a tremendous reduction in anticipated revenues from the Personal Income Tax and Sales and Use Tax. The potential effects as a result of these deficits at the state level on the City of Lynwood and other governmental agencies that depend on intergovernmental transfers as a major source of revenue cannot be determined at this time. A much clearer picture of these effects will be made public when the Governor submits his proposed budget to the Legislature for FY 2003 - 2004 in early January 2003. In addition, the Governor has requested that the Legislature convene a special session on December 9, 2002 to look at how the deficit for the current fiscal year can be reduced. The League of California Cities is committed to working through the. LOCAL (Leave Our Community Assets Local) Coalition to protect essential local services. RECOMMENDATION: Staff respectfully requests that the President & Members of the Lynwood Public Finance Authority receive and file this information. ATTACHEMENT .._ -Please click here~retum to the~re_vious page, Press Release ~` OFFICE OF THE GOVERNOR PR02:606 FOR_IMMEOIATEBELEA~E 11/21/2002 GOVERNOR ANNOUNCES PLANS TO CALL A SPECIAL SESSION ON THE BUDGET 11/21/2002 Governor Davis Discusses Budget with Legislative Leaders LOS ANGELES Govemor Gray Davis today convened a meeting of the "Big Five," the Govemor and Legislative leaders from the Senate and the Assembly, to discuss the California budget. The Governor told the other members of the Big Five that the shortfall is expected to be even more serious than the $21 billion shortfall estimated by the Legislative Analyst. "The problem is serious enough that it requires immediate action," Governor Davis said. "Salving this budget will require all of us to put aside ideological differences. It will require bi-partisan cooperation." Following a conference call with Senate President Pro Tempore John Burton (D-San Francisco), Senate Minority Leader Jim Brulte (R-Rancho Cucamonga), Assembly Speaker Herb Wesson (D-Los Angeles) and Assembly Minority Leader Dave Cox (R-Fair Oaks), the Governor announced that he would call a special session of the Legislature to enact $5 billion in reductions, recaptures and other budget changes over the current year and the budget year combined. Govemor Davis plans to call the Special Session to begin on December 9. The Governor also announced that he would use his executive authority to freeze spending, and that he would convene regular sessions of the Big Five to keep channels of communication open. Back to_Top of Page P_lease_click hereloJeturn to the_pceyiaus page. http://www.govemor.ca.gov/state/govsite/gov_htmlprint.j sp?B V_SessionID=@@@(a~0948220014.10382441... 11 /25/0 GUUG-US 1 hrough "LUU7-U~ J4If i"~' ~ ~ ~ ' ~~ _~ ~ ` _.~ '~ ~• .its Y ,. ,1 +t r it~~i~! F l_ + f _ ~,~~ _ .: '~~, November 2002 Elizabeth G. Hill Legislative Analyst C A L I F O R N I A S r.nv r1U~CCilUi1S i'.iLi i~l'. _ ___ his report provides our projections of General Fund revenues and ex- penditures for 2002-03 through 2007-08 It includes our independent assessment of the outlook for California's economy, demographics, rev- enues, and expenditures. Chapter 1 contains our principal findings and conclusions. Chapter 2 presents our economic and demographic projections, Chapter 3 our revenue forecasts, and Chapter 4 our expenditure projections. Our fiscal projections reflect current-law spending requirements and tax provi- sions. They are not predictions of future policy decisions by the Legislature, nor are they our recommendations as to what spending and revenue levels should be. This report, in its eighth year of publication, reflects the historical mission of the Legislative Analyst's Office to assist the Legislature with its fiscal planning by assessing the revenues and expenditures of the state. The report is part of an ongoing series and is updated periodically. Legislative Analyst's California's Fiscal Outlook Legislative Analyst's Office Legislative Analyst Elizabeth G. Hill Deputy Legislative Analysts Hadley Johnson, Jr. Mac Taylor Capital Outlay Director ...................................... ............. Mac Taylor Corrections facilities/seismic issues ............... Chris Guyer Higher education facilities .........., .... ................ Paul Guyer State offices/resources infrastructur e ......... Steve Lehman Criminal Justice Director ...................................... ........ Greg Jolivette Adultcorrections ............................. ...... Lisa AnnMangat Courts .............................................. ............ YvetteRincon Juvenile/local criminaljustice ........... ........... Jeff Cumm ins Economics,Taxation,ornd Fiscal Forecasting Director ...................................... .. Jon David Vasche Taxes ................................................. ............... Mark Ibele Fiscal and economic data/ demographics ................................ ........ Robert Ingenito Economics/forecasting ..................... .......... Brad Williams Higher Education Director ....................................... ........ Steve Bollard Community colleges ........................ ............ Steve Boilard UC/adulteducation .......................... ............_ Sona Nagar CSU/child care .._ ............................... ...... Anthony Simbol K-12 Education Director ....................................... ... Rob Manvvaring Education finance/special education . .. Jennifer Borenstein Accountability/assessments .............. ..... Victoria Carreon Compensatory education/ health related programs ................ .... Maryza Gutierrez Teacher training/charter schools/ financial aid .................................... .......... Jennifer Kuhn Health Services Director .................................... .... Daniel C. Carson Medi-Cal-families/children ......... ...............Farm Bracht Medi-Cat-elderly/disabled .......... .. Tiffany Reyes Reddy Public health/Healthy Families ...... ................ Lisa Folberg Mental health ................................. ....... Daniel C. Carson Social Services Director ...................................... .............Todd Bland CaIWORKs ..................................... . Kasia O'Neill Murray Child welfare, child support .......... .................. Mary Ader Aged, blind, and disabled/ employment programs ........._ .... ................ Todd Bland Local Government Director ..................................... .............. Mac Taylor Local government issues ................. ... Marianne O'Malley Resources and Environme ntal Protection Director ..................................... ......... Mark Newton Energy/water ................................... .. Keely Martin Bosler Air quality/land acquisitionlsolid an d hazardous waste ..............._._....... ... Catherine Freeman Wildlife/parks/forestry .................... _. JennyGiambattis[a State Administration Director ...................................... ..... Michael Cohen Information technology .................. ........... Anna Brannen Business issues/state employment .. ................ Todd Clark State budgetinglconsumer issues/ga mbling ........... Vacant Transportation Director ...._ ................................ ............ Dana Curry Transportation financing/highways ........... Joel Riphagen Public transportation/traffic enforcement ..._._._.... Vacant Legislative Analyst's Office Chapter 1 The Budget Outlook .................................................1 Chapter 2 Economic and Demographic Projections .................. 9 Chapter 3 Revenue Projections ................................................17 Chapter 4 Expenditure Projections .............. ..... 25 ....................... Legislative Analyst's Chapter 1 SUMMARY California policymakers will be facing an enor- mous challenge in crafting the 2003-04 General Fund budget. For the second year in a row, the state faces a budget problem in excess of $20 bil- lion. Specifically, our updated forecast indicates the following: ^ Current Year. California will end the 2002- 03 fiscal year with a General Fund deficit of $6.1 billion, compared to the $1 billion positive reserve balance assumed when the 2002-03 Budget Act was adopted. ^ Budget Year. The 2003-04 budget faces a cumulative year-end deficit of $21.1 bil- lion, absent corrective actions. However, if California's economic performance con- tinues to lag and fails to experience the ac- celeratinggrowth that we are expecting in the latter half of 2003, the shortfall could easily be several billion dollars higher. ^ Beyond the Budget Year. Over the longer term, the state will face annual operating deficits (that is, excesses of expenditures over revenues) of between roughly $12 billion and $16 billion per year, again absent corrective actions. These shortfalls average about 14 percent of the state's annual General Fund budgets over the period. WHAT IS BEHIND HUGE BUDGET PROBLEM? Given that the General Fund budget enacted for 2002-03 only a few months ago was balanced with a $1 billion reserve, a natural question to ask is: How could such an enormous problem for 2003- 04 develop so fast?As discussed below, two main factors are responsible: ^ First, the budget enacted for 2002-03, while at the time balanced, did not address the large underlying mismatch between cur- rent-law expenditures and revenues. ^ 5econd, due largely to soft economic per- formance, fiscal conditions-especially the outlook for revenues-Dave deteriorated substantially. Underlying Operating Shortfall Not Addressed In 2002-03 Budget About one-half of the projected 2003-04 bud- get problem relates to an underlying operating shortfall in California's General Fund budget that would have existed even without the recent dete- rioration in the economic and revenue outlook. Stock Market Collapses KeyFactor: As we (rave indicated in previous reports, the state has faced a large and ongoing imbalance between revenues Legislative Analyst's California's Fiscal Outlook and expenditures since the stock market bubble burst and tax revenues fell by over $10 billion in 2001-02. The dramatic impact of the stock mar- ket decline is depicted in Figure 1, which shows the amount of personal in- cometaxes attributable to stock options and capital gains. It indicates that these tax revenues peaked at $17 billion in 2000-01, but fell abruptly following the stock market decline- to under $6 billion in 2001-02. This unprec- edented 66 percent decline is the key factor behind the $10-plus billion annual mismatch between rev- enues and expenditures that began in 2001-02. Figure 7 Revenues From Capital Gains and Stock Options Down Sharply trn csnnonsl $20 is to ~y-uv vu-ut Oi-02 02.03 03-04 04-OS 05-06 ~ i Forecast One-Time Solutions Provided Only Temporary Relief. In dealing with the cumulative $23.6 billion budget shortfall facing the state in 2002-03, the Gov- ernorand Legislature relied primarily on one-time actions to close the gap. While these actions ad- dressed the cumulative shortfall in the 2002-03 budget itself, they did not eliminate the underly- ing current-law gap between revenues and expen- ditures. Thus, the expenditure-revenue mismatch was destined to reappear. Consequently, even if all of the assumptions embedded in the 2002-03 bud- get had held up, the state would have still faced an operating shortfall of over $10 billion in 2003-04. Further Deterioration in Revenue and Expenditures The other roughly half of the projected $21 bil- lion cumulative shortfall in 2003-04 largely relates 2 to the recent deterioration in the revenue outlook resulting from near-stagnant economic conditions in past months. This factor has caused us to reduce our General Fund revenue forecasts relative to our earlier projections by $777 million in 2001-02, $4.1 billion in 2002-03, and $6.5 billion for 2003-04-or a total of $11.4 billion for the three years combined. Our updated estimate of the 2003-04 shortfall also includes the impacts of revised assumptions about new federal funds, retirement incentives, Medi-Cal fraud detection, and state operations re- ductions-as well assavings related to lower Propo- sition 98 spending in 2003-04. On balance, these expenditure revisions have worsened the budget's bottom-line condition, although not to the same extent as have revenues. Legislative Analyst's Office California's Fiscal Outlook KEY FORECAST ASSUMPTIONS Economic Outlook Recent Trends Have Been Weak. Although the national and state economic downturns appear to have bottomed out in late 2001, the economic ex- pansion has been extremely. sluggish in 2002. At the national level, consumerspending has increased over the past year, but business spending and net exports have been soft. These trends have also been evident in California, where growth has been ex- tremely limited in recent months. - Modest Growth Expected. Our updated forecast assumes that the national and state economies will continue to expand at subdued rates until mid-2003, when improvements in business spending and ex- port sales start to boost overall economic growth. Specifically, we forecast that U.S. gross domestic product will increase by about 2.5 percent this year and 2.6 percent in 2003, before accelerating to an- nualgrowth rates in the 3 percent to 4 percent range in subsequent years. In California, we forecast that, following a marginal gain of 1.2 percent in 2002, personal income growth will accelerate to 4 per- cent in 2003, slightly over 6 percent in 2004, and to between 6 percentand 7 percent insubsequentyears. Downside RisksExist. Our forecast is subject to a significant downside risk that further delays in business hiring and spending, coupled with sag- ging consumer confidence and spending, wilt de- press U.S. and California economic growth below our current forecast. Another risk involves the resolution of the current labor-management dispute involving workers at West Coast ports. A protracted economic slowdown could reduce state General Fund revenues by several billions of dollars below our baseline fore- cast inthe current and budget years combined. Revenue Outlook We currently forecast that revenues will grow from $73.1 billion in 2001-02 to $75 billion in 2002-03, before declining to $70.2 billion in 2003-04. These totals are affected by a variety of special factors, which are discussed in Chapter 3. Absent these factors, underlying revenues fell by about I6 percent in 2001-02, and are expected to decline another 1 percent in 2002-03 before grow- ingabout 5.6 percent in 2003-04.Over the longer term, revenue growth is forecast to average roughly 7 percent per year. Revenue Revisions. Asindicated above, our rev- enue forecast is down from the 2002-03BudgetAct estimates by $777 million in 2001-02 and by $4.1 billion in 2002-03. In addition, our estimates for 2003-04 and beyond are below our previous estimates by about $6 billion annually. These sub- stantial downward. revisions are primarily associ- ated with the personal income tax. Collections from this source are being adversely affected by (1) the continued reductions of jobs and income in high- paying manufacturing and software industries, and (2) continued declines in stock market values, which will result in reduced levels of taxable income from stock options and capital gains. To a lesser degree, sluggish economic growth is also depressing col- lections from the sales tax and corporation tax. PROJECTED GENERAL FUND CONDITION Figure 2 (see next page) presents our updated General Fund condition projections for 2001-02 through 2003-04. These estimates take into account our revised projections ofcurrent-law revenues and expenditures, discussed in Chapter 3 and Chapter 4, respectively. Revised Outlook for 2002-03 Deficit to Exceed $6 Billion. The 2002-03 bud- getenacted inSeptember assumed that the current fiscal year would end with a positive reserve of $1 billion. However, we estimate that the large com- bined $4.9 billion reduction in 2001-02 and 2002-03 revenues, coupled with $1.8 billion in Legislative Analyst's Office 3 California's Fiscal Outlook added expenditures and a $410 million deteriora- Figure 2 tion in the 2001-02 carry- LAO Projections of General Fund Condition in balance, will use up the 2001-172 Through 2003-04 reserve and push the state (!n Millions) into a deficit of $6.1 bil- lion inthe currentyear. As discussed above, th'e de- cline in revenues reflects the deterioration in the Prior-yearfundbalance $2,627 -$1,192 -$4,635 near-term economic out- Revenues and transfers 73,121 75,010 70,199 look. The increase in ex- Total resources available $75,748 $73,818 $65,564 penditures is due [o our Expenditures 76,940 78,453 85,216 revised estimates related Ending Fund Balance Encumbrances -$1,192 -$4,635 -$19,652 to new federal funds, the 1,473 1,473 1,473 state retirement incentive i• program, state operations reductions, and Medi-Cal fraud detection. Outlook for 2003-04 And Beyond Basis for Our Estimates CurrentLawAssumed. 0urrevenue and expen- diture forecasts for 2003-04 and beyond are based primarily on the requirements of current taw. For example, we have adjusted the current-year spend- ing plan for constitutional and statutory funding requirements (such as the Proposition 98 mini- mum funding guarantee for K-14 education), as well as for projected changes in caseloads, cost-of- living adjustments (COLAs), federal reimburse- ments, and other factors affecting program costs. We have also adjusted the budget for one-time costs and savings in the current year. Projections, NotPredictions. It is irnportant to note that our fiscal projections are not predictions of what the Legislature and Governor will adopt as policies and funding levels in future budgets. Rather, our estimates are intended to be a reason- able "baseline" projection of what would happen if current-law policies were allowed to operate in the future. In this regard, we believe that our fore- castprovides ameaningful starting point for legis- lative deliberations involving the state's budget. Treatment ofLoan Repayments and Mandates. In preparing our estimates for 2003-04 and beyond, we needed to make assumptions about repayments of loans to the General Fund from special funds, as well as state payments to localities associated with mandates which were deferred in 2002-03. With regard to loan repayments, our estimates include the timely repayment of all loans which had spe- cificrepayment dates scheduled in the budget. We also assume that about one-half of the remaining loans are repaid evenly over the forecast period. With regard to state-imposed local mandates {ex- cluding education), we assume that prior-year claims will be paid off over the forecast period. 2003-04 Outlook- Huge Problem Looming Key Elements. As shown in Figure 2, we esti- mate that revenues will fall from $75 billion in 2002-03 to $70.2 billion in 2003-04. The decline reflects The large amount of one-time revenues, loans, and transfers that total $9.5 billion in 2002- 03. but which are largely absent in 2003-04. At the same time, expenditures are projected to increase from $78.5 billion in the cun~ent year to $85.2 bil- lion in 2003-04. The increase refects a variety of factors, including new General Fund costs associ- ated with health programs previously funded from 4 Analyst's Office California's Fiscal Outlook the tobacco settlement special fund, the annualized costs of COLAs provided for the Supplemental Security Income/State Supplementary Program in June 2003, $1.2 billion in added funding for trans- portation spending (as mandated by Proposi- tion 42}, and additional costs for employer retire- ment contributions. General Fund Proposition 98 funding is projected to grow by only 2.4 percent in 2003-04, due to (1} a relatively small increase in the minimum funding guarantee and (2) a rapid increase in local property taxes, which reduces the General Fund share of total Proposition 98 funding. $21 Billion Imbalance Projected. T he combina- tion of the expenditure increases and revenue re- duction in 2003-04 will result in an operating deficit of nearly $15 billion in the budget year. Thus, when combined with the $6.1 billion deficit carry-in from 2002-03, the 2003-04 budgetfaces a cumulative short- fall of roughly $21 billion, absent corrective actions. Longer Term Outiook- Continued Shortfalls Figure 3 presents our revenue and expenditure Figure 3 erate in 2004-05 as the economic expansion gains momentum. It also reflects relatively slow growth in General Fund Proposition 98 spending, due pri- marily to slowing growth in K-12 school enroll- ments. As a result of the above factors, our pro- jectedoperating deficits do decline slightly over time. Despite these favorable trends, however, pro- jected revenues remain well below expenditures at all times over the forecast period. Specifically, as the figure indicates, we expect that annual operat- ing deficits peak at $15.6 billion in 2004-05 before slowly declining to $12.3 billion by 2007-08. The persistence of these large mismatches between cur- rent-law revenues and expenditures indicates that the state has a large structural budgetary imbalance that it cannot simply "grow" its way out of on the natural. As a result, substantial budget-balancing actions will be needed. forecasts through 2007-08. Current Law Operating Deficits to Persist It indicates that current- law operating deficits are Genera! Fund expected to persist over the (In Billions) entire period, absent cor- $120 rective actions. On the positive side, we do expect revenues to grow somewhat more rap- idly than expenditures over these years, as evi- denced in Figure 3 by the revenue line closing in a bit on the expenditure line over time. Our projected faster growth for revenues than for expenditures re- flectsour assumption that revenue growth will accel- Revenues ~' Expenditures ..• . .- Operating Surplus 770 700 so so 70 60 50 40 99-00 00-07 07-02 02-03 03-04 04-05 OS-O6 06-07 07-08 1 Forecast ~ Legislative Analyst's Office California's Fiscal Outlook APPROACHING THE Key Principles, strategies, and Tools PROBLEM Figure 4 summarizes in broad terms the vari- ouskey budget-balancing principles, strategies, and This Year WIII Be Much Harder .toots that we have previously identified and that Than the Last we believe merit the Legislature's attention again Last year, when the this year. state faced a cumulative $23.6 billion budget prob- Figure 4 lem, we identified for the Basic Budget-Balancing Principles Strategies and Tools Legislature a variety of , , principles, strategies, and tools for dealing with the sho tf ll ( f ~ Wide ran f b d r a see, or example, ge o u get solutions should be considered. our report entitled Ad- ~ dressing the State's Fiscal Probl D Out-year repercussions should be assessed. ~ B " em, ecember 2002). udget solutions should make sense ° The current budget short- ~/ Current- ear solutio h l fall is much more formi- y ns s ou d play a key role. dable and challenging than last year's. This is due both ~ Determine th l ti to the magnitude of the roblem d b e re a ve roles of spending and revenue options. ~ Id tif h p an ecause a en y t e appropriate contributions of different program areas. number of the one-time solutions heavily relied on last ear b Establish the desired mix of one-time versus ongoing solutions. ~ y cannot e used Assess whether a muRiyear solution is appropriate and feasible. again-such as the $4.5 billion raised from tobacc i i ~ S di o secur t zation, the pen ng-related options. $1.1 billion near-term sav- •Eliminate or modify programs. ings from restructuring re- •Suspendlreduce COtAs. payments of state general •Defer spending. obligation bonds, and cer- •Shift funding from the General Fund. lain loans and tax accelera- •Implement improvements and efficiencies. lions. Given this, there is r ll .Revert or disencumber funds. ~ R ea y no easy way out of evenue-related options. the current predicament. •Eliminate or modify tax expenditures. and this makes it all the •Broaden basic tax bases. more important that the •Raise tax rates. Legislature take advantage •Transfer special fund balances. of the alternative budget- .Improve tax compliance and collections. balancing approaches and .Revise accrual procedures and sell assets. options available to it. 6 legislative Analysts Office California's Fiscal Outlook Of particular importance are: ^ Take Current-Year Actions. In last year's budget process, the Governor and Legisla- tureacted mid-year to make significant re- ductions in 2002-03 spending.. We recom- mend that the Legislature again consider mid-year adjustments. This would not only reduce the projected year-end 2002-03 defi- cit, but could reduce the out-year problem as well. ^ Put Everything on the Table. In order to bring the budget back in balance, it will be necessary to consider all types of solu- bons-spending reductions-and deferrals, fund shifts, revenue increases, and im- proved tax compliance and collection. Or, put differently, we believe that nothing should be taken off the table when consid- ering options. This doesn't mean that all program areas are of the same import. The Legislature, for instance, has made it clear that K-12 education is a high priority. However, there are potential efficiencies and savings that can be achieved in any area, and the Legislature will need the largest possible "menu" from which to choose in addressing the problem. ^ Continue to Use One-Time Solutions, But Significant Ongoing Actions Needed. The Legislature relied extensively on one- time solutions in crafting its 2002-03 bud- getpackage. We believe one-time solutions should also play an important role in com- ing budget deliberations. Of the $21 bil- lion problem that we have identified, roughly $6 billion is from the projected year-end 2002-03 deficit. This part of the problem could be appropriately addressed entirely with one-time solutions. The re- maining $15 billion portion of the budget problem for the most part represents an ongoing imbalance between revenues and spending. Thus, it is important that the Leg- islature adopt major ongoing solutions- spending reductions and revenue in- creases-to address this portion of the gap. In the coming months, our office will be assist- ing the Legislature in developing possible budget- balancing expenditure and revenue strategies and options to help address the large projected 2003-04 shortfall Legislative Analyst's 7 California's Fiscal Outlook 8 Legislative Analyst's O['fice Chapter 2 Economic and demographic developments in California have important effects on the state's fiscal condition through their impacts on both tax rev- enuesand state expenditures. This chapter presents our economic and demographic projections for 2002 through 2008, which will affect California's fiscal condition during fiscal years 2002-03 through 2007-08. THE ECONOMIC OUTLOOK Overview of the Economic Forecast California's economy has been hard hit by the slump in spending on high-tech goods and services, plunging exports, and the stock market's decline. These factors have combined io produce soft personal income growth in the state, and they continue to dampen economic performance as of late 2002. Looking ahead, we forecast that the economy will continue to ".muddle along" until the second half of 2003, when along-delayed improvement in business investment spending is anticipated to begin to boost California's overall job and income growth. From tlren on, moderate income and job gains are expected through the remainder of the forecast period. Although our forecast reflects what eve believe is the most likely future path for the economy, our forecast-like any-is subject to risks and uncertainties. In Chis regard, we believe that the main risk to our forecast is on the downside- namely, our economic projections are subject to the possibility that further declines in consumer confidence and spending could occur that, in turn, could result in prolonged economic weakness during the next year. In this event, both the economy and the state's fiscal condition would under-perform our expectations. Figure 1 (see next page) summarizes the details of our economic forecast, while the current state of the economy and the major components of our economic forecast are discussed below. Recent National Economic Developments Consumer Spending Keeping U.S. Economy on Upward Track .. . After falling in 2001, the U.S. economy has experienced a modest rebound over the past year. For example, U.S. real gross domestic product (GDP) grew by 3 percent between the third quarter of 2001 and the third quarter of 2002. This output increase has occurred despite virtually no growth in employment and only modest gains in personal income, and thus is attributable primarily to increased productivity. Legislative Analyst's California's Fiscal Outlook Figure 1 The LAO's Economic Forecast 2002 Through 2008 Percentage Change (Unless Otherwise Indicated) United States Real gross domestic product 2.5% 2.6% 3.8% 3.6 % 2.9 % 3 0 % 3 0% Personal income 3.2 4.5 5.9 6.1 5.7 . 5 4 . 5 4 Wage and salary jobs _0 g 1 2 2 5 i 7 1 1 . 1 2 . 7 1 Consumer Price Index 1.7 2.9 2.9 2.9 2.6 2 4 2 3 Unemployment rate (%) 5.8 5.9 5.3 5.0 5.1 . 5 1 . 4 8 Housing starts (000) California 1,637 1,572 1,711 1,704 1,669 . 1,698 . 1,730 Personal income Wage and salaryjobs 1.2 % 4.0 % 6.1 % 6.7 % 7.0 % 6.5% 6.4 Taxable sales -0.8 0.5 2.4 2.6 2.7 2.3 2.1 Consumer Price Index -1.4 2 7 3.9 6.2 6.9 6.9 6.3 6.2 Unemployment rate (%) . 6 2 2.5 6 1 2.9 3.0 3.1 2.7 2.7 New housing permits (000) . 155 . 153 5.6 157 5.3 5.1 5.0 5.1 164 165 168 165 As shown in Figure 2, most of the recent growth Figure 2 in U.S. output has been Consumer Spending Main Source of related to consumer Recent U.S. Economic Growth spending, which has remained surprisingly Change in Reaf GDP, Third Quarter200i to Third Quarter 2002 (BipionsofDo!lars) strong in view of the lack of job and income growth over the past year. Akey- Totaf force behind this continued spending Consumer Spei growth has been low Inver interest rates, which have Accumul, boosted sales of automobiles and other Government Sper interest-sensitive durable Residential fnvesti goods. Declining mortgage rates have also produced a rvonresiden boom in both new home Investr sales and financings, as well as the refinancing of NetExF existing mortgages. The new home activity has -$1uu -so o so loo tso 200 2so soo 1 O Legislative Analyst's Oftice California's Fiscal Outlook directly added to output, and the refinancings have enabled individuals to reduce their home payments and/or "cash out" some of their previously built- up home equity-in both cases providing additional funds for spending. ...But Continued U.S. Growth Will Depend on Businesses A very important question for the U.S. outlook is how much longer can consumer spending carry the economic expansion-especially in view of the recent lack of employment and personal income growth in the economy. In this regard, a key to future economic growth would appear to be increased business spending on capital equipment and labor. Board's consumer confidence survey plunged to a nine-year low in October, and preliminary reports suggest that retail sales softened in October. A slowdown in consumer spending would have major implications for the overall economic expansion, since consumer spending accounts for over two-thirds of economic output. Given these factors, a key to the outlook is an improvement in business spending and hiring. Such an improvement would provide a welcome boost to income and jobs. which would in turn sustain gains in consumer spending and overall economic growth in the future. California Developments Normally, continued growth in consumer spending would be matched by new investment and hiring by businesses. However, this has not been the case during the past year. For example, nonresidential investment, which includes spending by businesses on new plants and equipment, fell by over 4 percent between the third quarter of 2001 and the third quarter of 2002 (see Figure Z). The decline in business investment, coupled with cautious attitudes by employers generally, has contributed to a 190,000 drop in private sector jobs since the beginning of the year. The lack of business spending on plants and equipment reflects the large amount of idle capacity that currently exists in the economy, which has partly resulted from past over-investment by many businesses in telecommunications and other high- tech areas. It also reflects pressures that businesses are facing from their shareholders and directors to control costs and improve their "bottom line" profit statements. These factors have translated into delays or cancellations of equipment and software upgrades, and sharp cutbacks in hiring. The lack of job growth, coupled with declining stock market values and other uncertainties, is starting to take a toll on consumers. The Conference Legislative Analyst's OfFce Employment and Income Both Have Been Weak There are no current state-level gross domestic product data available to precisely measure output changes in California. However, the information that is available from such diverse sources as employment, personal income, withholding, taxable sales, new vehicle registrations, and building permit activity suggests that, hke the nation, California's economy bottomed-out in late 2001, and has been on a weak growth path during the first [en months of 2002. The recovery has not been of sufficient magnitude to create new jobs and, in fact, California's private sector has experiencedjob losses during the past year. With regard to personal income, California has suffered a steeper slowdown than the rest of the nation, due to (1) a large amount of job losses in .the state's high paying manufacturing sector, and (2) continued declines in stock-option income. Reflecting these factors, we estimate that the state's personal income will increase by just 1.2 percent in 2002, compared to 3.2 percent for the nation as a whole. California's Manufacturing-Related Jobs Have Plunged As indicated in Figure 3 (see next page), total California manufacturing employment has fallen by over 230,000 jobs (12 percent) since its peak in 11 California's Fiscal Outlook late 2000. Although not as dramatic as in the early 1990s, when the state faced major restructuring of its defense industry, the manufacturing job downturn has nevertheless been one of the steepest two-year declines in the state's history. Business Services Employment Also Has Suffered A similarly large employment reduction has occurred in the state's business services job sector (which includes temporary hires by manufacturers as well as computer and software design jobs). After growing at an average rate of 8.4 percent per year between 1995 and 2000, this sector has lost 11 percent of its job base during the past two years. The losses of manufacturing and computer-related business services jobs are significant, since these are among the highest paying jobs in the state. Forces Behind California Job Losses- Weak Business Spending and Exports As with the nation generally, a key force behind the job losses in Cali- fornia's manufacturing and business services Figure 3 sectors has been the weakness in national business investment spending. The decline is important to California since so much of its high- techgoods and services are sold to businesses. In addition to the decline in U.S. investment spending, manufacturers in this state are also coping with a plunge in foreign demand for their products. Total Califomia- produced exports fell by 11 percent in 2001 and will decline by another 14 percent this year, due to soft economic conditions abroad. As shown in Figure 4, the export decline between the first half of 2001 and the first half of 2002 has been concentrated in computers, electronics, aerospace, and transportation products. The drop in exports is important since a significant share ofCalifornia- produced high-tech goods are sold in other countries. Main Positive Force in State- Low Interest Rates Outside of the manufacturing and business services sectors, the California economy has recently managed to grow at a modest pace. The main positive forces have been low interest rates and continued California population growth. Like the rest of the nation, California's spending on automobiles has remained strong in 2002, buoyed by zero-interest financing promotions. Likewise, strong home sales and mortgage refinancings associated with low interest rates, along with continued growth in residential construction California Manufacturing Hit Hard By Economic Slowdown (Thousands of Jobs) z,zoc z,1oc z.ooo lsoo lsoo 1,00 lsoo 12 Legislative Analyst's Office "'~ ~aaa 1996 1998 2000 2002 2004 California's Fiscal Outlook activity, are boosting employment in California's construction and finance-related industries. Nonbusiness services employment is also expanding modestly, reflecting gains in such diverse industries as health care, personal services, and auto repair. Increases ininterest-sensitive and population- driven industries have managed to keep California's economy on a slight upward track thus far in ZOOZ. However, it is unlikely that they can continue to offset the negative effects of falling business spending and exports for much longer. Without improvement in these latter two areas, it is unlikely that California can sustain a meaningful expansion. The Economic Outlook- Slow Improvement Beginning 1n Mid-2003 Our forecast assumes that both the national and state economies increase at a very subdued rate through the first half of 2003. At that point, we assume that business spending will finally begin to improve, providing amuch-needed boost to overall economic growth. We expect business spending to eventually improve because, although the manufacturing sector currently has a considerable amount of unused capacity, businesses will eventually need to upgrade equipment and software to take advantage of new innovations in communications, web technology, and other areas. National Outlook As indicated previously in Figure 1, we forecast that U.S. GDP will increase by 2.5 percent and 2.6 percent in 2002 and 2003, respectively, before accelerating to 3.8 percent in 2004 and an average of about 3.3 percent over the balance of the forecast period. Over the longer term, growth in U.S. economic output will be aided by healthy gains in worker productivity, which we expect to rise by slightly over 2 percent per year. Figure 4 High-Tech Exports Plunge in 2002 Percent Change, Frrst Hatf of 2001 to First Half 2002 ComF Elegy Aero; Transp Agr ChE Legislative Analyst s Office Export Amount First Malf o! 2002 {In Billions) $22.0 3.4 7ss The forecast assumes similarly modest accelerations in jobs and income. Inflation is expected to remain relatively low over the. forecast period, with the Consumer Price Index forecast to increase by an average of less than 3 percent over the next six years. California Outlook t.a As with the nation, we expect California's economy to grow at a very 2.s sluggish pace until the second half of 2003, with o.s employment and income improving slowly in 2003 before accelerating in 2004 and 2005. The improve- 13 -30 -25 -20 -75 -70 -5 0 5 10% California's Fiscal Outlook ment is tied to an assumed rebound in manu- facturingemployment, which we expect to benefit from an eventual rebound in business spending and exports. We specifically project that personal income will increase by 4 percentin 2003 and 6.1 percent in 2004, and that wage and salary employment will grow by 0.5 percent and 2.4 percent during the same two years. Continued population growth and low interest rates will result in growth in residential construction activity during the forecast period. Nonresidential construction is expected to decline through mid-2003, then slowly grow thereafter. Risks to the Forecast Our near-term forecasts for both the nation and California are below the consensus of estimates made by other economists in October 2002, particularly with regard to California personal income growth. However, given recent negative reports on employment, consumer confidence, and manufacturing activity, we believe that even our forecast is subject to considerable downside risk. The combination of a steeper slowdown in consumer spending, and further cutbacks in business investment and hiring, could further weaken near-term growth-or even produce a "double dip" recession early next year. Such a development would result in further job declines and another year of near-zero growth in personal income in 2003. It would also have substantial adverse effects on state tax revenues, and thus on the projected outlook for the General Fund's condition. Another risk involves the current labor management dispute at the West Coast ports. While our forecast assumes that current federally mediated negotiations wilt produce a successful resolution, a prolonged lockout or strike would disrupt commerce in California and elsewhere in the nation. THE DEMOGRAPHIC OUTLOOK As of 2002, California's population totaled slightly over 35 million. During the six-year forecast period, the state's population is projected to grow annually by about 1.5 percent, or well over half a million persons yearly. Thus, California will add roughly 3.3 million people over the forecast interval and reach over 38 million by 2008. The population growth rate we are projecting is somewhat slower than that experienced in the latter part of the 1990s. This reflects both the dampening effects of the slower economy on in- migration, and a continuing downward trend in birth rates. Population Growth Components California's population growth can be broken down into two major components-natural increase (the excess of births over deaths) and net in-migration (persons moving into California from other states and countries, minus those leaving for other destinations). On average, these two components tend to contribute about equally to the state's population growth, although their relative shares can vary significantly from one year to the next depending largely on the strength of net in-migration. Naturallncrease. We project [hat the natural- increase component will average about 285,000 new Californians annually over the forecast period. This amount is slightly less than in the late 1990s, due to the ongoing decline in birth rates being experienced by all ethnic groups. Despite these declining birth rates, however, the natural-increase component still will grow slightly due to significant growth in the female population of child-bearing age groups in faster-growing segments of the population, including Hispanic and Asian women. 14 Legislative Analyst's Office California's Fiscal Outlook Net In-Migration. We project that net in- Figure 5 migration will average Net in-Migration to Slow roughly 265,000 annually persons (!n Thousands) over the next six years. This is weaker than during aso the latter half of the 1990s 400 and somewhat less than the natural-increase com- aso ponent. As indicated by Figure 5, this reflects a 300 projected drop in domestic z5o net in-migration that we believe will accompany zoo California's less-than- robust economic perfor- tso mance. In contrast, foreign too net in-migration-which has been relatively stable ~ over the past decade and has proved to be less of o2 03 sensitive to the economy-is projected to remain relatively flat. ^ Net Domestic in-Migration Net Foreign In-Migration 04 OS 06 07 08 Figure 6 Growth to Vary by California's Population Growth, by Age Group Age Grou p Population Change-2002 Through 2008 Figure 6 shows our population growth pro- AverageAnnuat jections by broad age Age Group Percent Change categories, including both numerical and percentage °_a growth. s-t 7 Ranks ofBabyBoomers to Swell. The 45-to-69 age t6-2a group (largely the "baby boomers") continues to be 2s-aa the fastest growing segment of the population. 4s-sa Over 1.6 million new people are expected to move into this age 65 and over category over the next six years. At the other extreme, t.o Legislative Analyst's Office Number pn Thousands) 204 83 294 703 1,645 334 Totat 4.0 ~ 3.3 Million 15 2.0 3.0 California's Fiscal Outlook although continued in-migration will result in moderate growth for preschoolers, relatively slow growth is anticipated for the K-12 school-age population. This reflects the movement of children of the baby boom generation beyond the 5-to-17 age group. The decline in birth rates in recent years has also resulted in fewer children moving into the school-age category. These various age-group demographic projections can have significant implications for the state's revenue and expenditure outlook. For example, strong growth of the 45-64 age group generally benefits tax revenues since this is the age category that routinely earns the highest wages and salaries. Likewise, the growth in the young adult population affects college enrollments, while that for the 0-to-4 and 5-to-17 age groups drives K-12 enrollment growth. 16 Legislative Analyst's Office Chapter 3 The revenues that finance California's state Gen- eral Fund budget come from a wide variety of dif- ferent sources, including taxes, fees, licenses, in- terest earnings on investments, loans, and trans- fers. The great majority of General Fund revenues, though, is attributable to the state's three major taxes-the personal income tax {PIT), the sales and use tax (SUT), and the corporation tax (CT). In addition, however, actions taken in conjunction with the adoption of the 2002-03 budget have also resulted in a variety of significant one-time rev- enue increases in the current year related to loans and the securitization of tobacco receipts. In this section, we summarize our revenue projections and provide detail behind our key revenue-related forecast assumptions. THE LAO'S REVENUE FORECAST Major Downward Revisions To Outlook The revenue outlook continues to deteriorate. Our updated revenue forecast, presented in Fig- ure 1 (see next page), is as follows: ^ Pr•ior-Year Revenues. We estimate that rev- enues in 2001-02 totaled $73.1 billion, about $777 million below what was as- sumed in the 2002-03 Budget Act. This shortfall is primarily due to lower-than- expected combined receipts from the PIT and SUT in May and June, as well as higher-than-expected CT refunds this fall (which we accrued back to 2001-02). The $12.8 billion shown in the figure for "other revenues and transfers" in 2001-02 includes $6.2 billion related to the repayment of the General Fund loan for electricity power purchases. ^ Current-Year Revenues. Revenues are pro- jected to total $75 billion in the current year, a 2.6 percent increase from 2001-02. The current-year amount includes about $9.5 billion in special factors included in the 2002-03 budget package. These include tobacco securitization, tax increases, and one-time loans and transfers. Absent these and related changes affecting revenues in the prior and current years, "underlying" revenues are down about 1 percent from 2001-02. Compared to the 2002-03 bud- getforecast, our revenue projection for the currentyearisdownbyabout$4.1 billion, reflecting a particularly large PIT revision. ^ Budget-Year Revenues. We forecast that Gerieral Fund revenues will be $70.2 bil- lion in 2003-04, a 6.4 percent decline frorn the current year. This decline reflects the Legislative Analyst's California's Fiscal Outlook Figure 1 The LAO's General Fund Revenue Forecast (Dollars in Millions) Personal income tax Sales and use Tax $33,370 $34,510 $36,380 $40,190 $44,520 $48,450 $52,490 Corporation tax 21,340 5 620 22,420 6 7 23,530 25,200 26,900 28,670 30,460 Other revenues and transfers , 12 791 , 60 11 320 6,700 6,540 7,010 7,530 7,930 T tal , , 3,589 3,298 3,980 4,646 4,812 o revenues and transfers $73,121 $75,010 $70,199 $75,228 $82,410 $89,296 $95,692 Percentage change 2.6% -6.4 % 7.2 % 9.5 % 8.4 % 7.2% large amount of one-time revenues in- cluded in the current-year totals but miss- ing for 2003-04. Absent these factors, un- derlying receipts would be up a modest 5.6 percent in 2003-04.Our updated fore- cast isdown byabout $6.5 billion from the long-term projections for the budget year that we made in summer 2002. ^ Longer-Term Revenues. We forecast that improving economic conditions will result in accelerating General Fund revenue growth in 2004-OS and thereafter. Specifi- cally, we forecast that revenues will increase by 7.2 percent in 2004-05 and 9.5 percent in 2005-06, before settling down into a more moderate pattern of growth rates dur- ing the final two years of the forecast. Main Factors Behind the Downward Revenue Revisions The major downward revisions to revenues in the current and budget years are primarily related to the continued softness in California's economy. This softness is taking a greater toll on personal in- come, taxable sales, and taxable profits than we had previously estimated would be the case. In addi- tion, the continued deterioration in the stock mar- ket since last spring implies that personal income taxes from stock options and capital gains will be even less than assumed in spring 2002. The impacts of continued softness in economic activity are evident in key California revenue indi- cators. As shown in Figure 2, although both per- sonal income tax withholding and taxable sales have shown slight improvements since the begin- ning of 2002, both measures remain below last year's already-depressed levels. Special Revenue-Related Factors Our revenue forecast for 2002-03 and beyond includes the impacts of numerous actions taken in conjunction with the adoption of the 2002-03 bud- get. These include: ^ Revenue Increases. The budget includes about $2.5 billion fn new tax-related rev- enues during 2002-03. The main compo- nents are: (1) a two-year suspension of the business net operating loss (IVOL) carry- forwarddeduction {which is coupled with future increases in the amounts that can be carried forward from 65 percent to 100 percent beginning in 2004); (2) higher withholding on stock options and certain real estate sales; and {3) the suspension of the teachers' tax credit. 18 Legislative Analyst's Office California's Fiscal Outlook ^ Tobacco Securi- fizatian. About Figure 2 $4.5 billion in Key Revenue Indicators Remain Soft one-time revenue Year-Over-Year Percent Change, by Quarter is anticipated in 2002 03 - from the 2s i securitization of future tobacco 20 settlement re- as ceipts. The state will raise these 10 funds byselling its rights over the s next 25 years or so to its tobacco ° settlement re- _s ceipts, for$4.5 bit- lion in up-front -10 cash. This will be achieved through -1s Withholding ~ Taxable Sales the sale of revenue ~ 2 s L- 2000 bands whose re- payment is se- cured by the tobacco settlement payments the state receives beginning in 2002-03 until the bonds are paid off. ^ Special Fund Loans and Transfers. About $2.6 billion is involved in one-time loans and transfers from special funds. The single largest component involves a $1 billion Loan from the Traffic Congestion Relief Fund, which is scheduled to be repaid over the subsequent three years. Our out-year revenue estimates include the repayment of this and other loans for which specific repayment dates have been established. Combined Effect ofSpecial Factors. Figure 3 (see next page) shows the net impact of the above spe- cial factors on General Fund revenues during the forecast period. Taken together, special factors will increase General Fund revenues and transfers by about $9.5 billion in 2002-03. In 2003-04, the net impact of these factors will be relatively small- Legislative Analyst's Of&ce 4 1 2 3 4 1 2 3 -~ L- 2001 ----I L_ 2002 -i $188 million-as the second-year impact of the NOL suspension is partly offset by scheduled loan repayments. In subsequentyears (2004-05 through 2007-08), the net impact will be annual losses rang- ing from $250 million to $1.2 billion. These losses are due to loan repayments and higher NOL de- ductions. INDIVIDUAL REVENUE SOURCES Personal income Tax After its historic 25 percent plunge (from $44.6 billion to $33.4 billion) between 2000-O1 and 2001-02, we project that PIT receipts will increase modestly to $34.5 billion in 2002-03 and further to $36.4 billion in 2003-04. Over the longer term, we forecast that PIT receipts will increase at an av- erage annual rate of 9.6 percent between 2003-04 19 California's Fiscal Outlook and 2007-08, reaching Figure s $52.5 billion by the end of the forecast period. Key Forecast Factors $'~ Much of the estimated PIT revenue gain between ~ 2001-02 and 2002-03 is re- lated to the $1 billion in t PIT revenue increases adopted in conjunction 4 with the 2002-03 budget. Absent these changes, the underlying growth in PIT z receipts would be less than 1 percent. This small un- o denying increase is related to both continued eco- -z nomic sluggishness and oz-o3 the adverse impacts offur- t they stock market declines aACEions taken in 2002-03 on taxable income related to stock options and capi- talgains. We estimate that after plunging by nearly 66 percent in 2001, the in- come from gains and options will decline another 19 percent in 2002 before starting to rebound in 2003. In subsequent years, we project that the com- bination of an economic rebound and modest im- provement in stock market-related income will boost PIT receipts. Sales and .Use Taxes We estimate that SUT receipts will total $22.4 billion in 2002-03, a 5.3 percent increase from 2001-02. We forecast that these receipts will grow further to $23.5 billion in 2003-09.Overthe longer term, we forecast that SUT receipts will increase at an average annual rate of 6.6 percent between 2003- 04 and 2007-08, reaching $30.5 billion by the end of the forecast period. This growth in SUT receipts 20 Net Impact on Revenues of Special Factorsa (in Billions) Forecast that affect revenue totals in the forecast period. is projected to be slightly less than our projected growth for statewide personal income for the pe- riod, reflecting a slight decline in the portion of income that is spent on taxable commodities. Key Forecast Factors A key determinant of sales tax receipts is tax- ablesales. As indicted earlier in Figure 2, these sales fell sharply beginning in the second half of 2001, and have only partially recovered in the first three quarters of this year. On an average annual basis, taxable sales were down by 0.7 percent in 2001 (re- flecting softness in the second half of year), and are expected to be down another 1.4 percent in 2002. As indicated in the shaded box, much of the recent softness appears to be due to weak business-related spending. Analyst's Ofrice 03-04 04-OS 05-06 06-07 07-OS California's Fiscal Outlook Looking ahead, we project That taxable sales will accelerate, increasing by 3.9 percent in 2003 and 6.2 percent in 2004.Over the longer term, our fore- castassumes that taxable sales will increase slightly slower than personal income. These increases are somewhat subdued compared to what would nor- mally be expected during a cyclical upturn. As in- dicated in Chapter 2 ,consumer spending on au- tomobiles and other durable goods has been strong during the recent economic downturn. Because of this, consumers at this point in time have less ca- pacity to take on new debt and have less "pent up" demand than is normal for this stage of an eco- nomic cycle. This, in turn, will constrain taxable safes growth. CORPORATION TAXES We estimate that CT receipts will increase from $5.6 billion in 2001-02 to $6.8 billion in 2002-03, before falling to $6.7 billion in 2003-04 and $6.5 bil- lion in 2004-05. In the subsequent three years, we project that revenues from this source will increase at an average annual rate of 6.6 percent, reaching $7.9 billion by the end of the forecast period. Key Forecast Factors Corporation tax receipts in 2002-03 and beyond will be affected both by changes in California tax- able corporate profits and by lativ changes enacted along with the 2002-03 budget. Specifically: Weak Business Spending Behind Drop In Taxable Sales Although the plunge in PIT receipts has been the single most significant state revenue devel- opment during the past two years, California taxable sales have also fallen sharply during this period. This decline has adversely affected the state as welt as local governments throughout California. Although SUT receipts are most generally associated with retail spending, approximatelyone- third of taxable sales are actually attributable to business-to-business transactions. These include purchases of computers, telecommunications equipment, and building materials that go into the construction of new facilities. It is the softness in business spending that appears to be primarily responsible for the recent decline in taxable sales. The impact of declining business spending on taxable sales during the 2001 economic down- turn can be clearly seen in the detailed taxable sales data recently published by the Board of Equalization for the third quarter of 2001 (the most recent quarterly data available). It indicates that, during the 2000 to 2001 period, overall taxable sales fell by just under 3 percent. However, the relative performance of different components of taxable sales was very different In particular: ^ Retail spending was basically flat, reflecting moderate gains in sales of cars and building materials, and small declines in other retail categories. In contrast: ^ Business-to-business sales were down by nearly 8 percent, reflecting reductions in spending for equipment and construction raterials that go into nonresidential structures. We believe that the trends evident in the 2001 taxable sales data-moderate consumer spending but declines inbusiness-related sales-will persist until mid-2003, when business spending begins to improve. Legislative Analyst's Office ~~ California's Fiscal Outlook ^ Taxable Profits. Figure 4 Figure 4 shows that, after growing Profits To Slowly Recover by slightly over Percent Change in California Taxable Profits 3 percentin 2000, profits plunged by 15 13 percentin 2001. This reflected the to dual impacts of falling sales and s rising compensa- tion costs on cor- porations' bot- tom-line profits. Despite major ef- _5 forts by the busi- nesssector to con- trol costs in 2002, io we estimate that profits will con- -75 isss 2000 tinue to decline during the near term due to con- tinued softness in manufacturing. We ex- pectthat profits will rebound beginning in 2003, reflecting the benefits realized from current cost-cutting measures and acceler- ating business sales anticipated for next year. Specifically, we forecast that Califor- nia taxable profits will increase by 6 per- cent in 2003 and by roughly 10 percent in 2004 and 2005, before settling into annual rates of about 7 percent over the balance of the forecast period. ^ Law Changes. We estimate that the two- yearsuspension of NOLs, along with other tax-related law changes enacted in 2002-03, will boost CT receipts by $1.2 billion in the current year and about $540 million in 2003-04. In subsequent years, receipts will be reduced by between $250 million to $400 million annually, reflecting the in- crease in allowable NOL deductions from 65 percent to 100 percent of incurred losses beginning in 2004. Other Revenues And Transfers The remaining sources of income for the Gen- eralFund include various revenues other than from the PIT, SUT, and CT, as well as transfers to the Gen- eral Fund from special funds. Included among the other revenues are taxes on insurance premiums, alcohol is beverages, and tobacco, as well as interest on pooled money investments. As shown earlier in Figure 1, we estimate that combined collections from all of these sources will fall from a peak of $i2.8 billion in 2001-02, to $11.3 billion in 2002- 03 and only $3.6 billion in 2003-04, before partly rebounding to $4.8 billion in 2007-08. Key Forecast Factors The total revenues from these other sources de- pends on a variety of factors, including the vol- ume ofinsurance premiums written, alcoholic bev- erage and tobacco sales, interest rates, and the amount of General Fund resources available to be invested. Our projections for these variables reflect 22 Legislative Analyst's OfFice 2001 2002 2003 2004 2005 ~ Forecast - ~ California's Fiscal Outlook our underlying economic and demographic as- sumptions discussed in Chapter 2. In addition, as noted above, numerous special factors also affect these revenue totals. These include the electricity loan repayment in 2001-02, the securitization of future tobacco settlement receipts, and one-time loans and their associated repayments. With regard to ongoing revenues in this cat- egory, our estimates assume moderate increases in insurance taxes, stable receipts from alcoholic bev- erage taxes, and declining receipts from tobacco taxes. The estimates also take into account the phase-out of California's estate tax resulting from federal law changes enacted in 200.1. Legislative Analyst's Office Risks and Uncertainties As discussed in Chapter 2, the economic fore- cast on which our revenue projections are based has certain risks that are concentrated on the down- sidedirection. Should the state's economic growth fail to achieve the modest increases we are assum- ing,annual General Fund revenues could easily fall several billion dollars below what we are project- ing. The shortfall would be greater if economic growth stalled out and even a mild downturn were to develop. 23 California's Fiscal Outlook 24 Legislative Analyst's Office Chapter 4 In this chapter, we discuss our_Generai Fund expenditure estimates for 2001-02 and 2002-03, and our projections for 2003-04 through 2007-08, both in total and by program area. We first look at general budget trends during the forecast period, and then discuss in more detail our expendiiure projections for individual major programs. Figure t Education, Health, and Social Services Account for Most Spending cameral fund 2002-03 Other Programs Debt Service Corrections Health and Social Services GENERAL FUND BUDGET TRENDS Distribution of General Fund Spending Figure 1 shows how General Fund spending is distributed among major program areas in 2002-03. It shows that edu- cationprograms dominate state spending, accounting for nearly one-half of the General Fund total. About 37 percent is attributable to K-12 education, and an- other I1 percent is for higher education (which includes the University of California [UC], Califor- nia State University [CSU]. and California Community Coiieges [CCC]). Just over one- Fourth of the total. is for health and social services, and about 6 percent is for corrections. The remain- der is for state operations, debt service, various local subventions (including the vehicle license Fee backfill), and other purposes. Legislative Analyst's California's Fiscal Outlook Spending Trends Over the Outlook Period Over The forecast period, we project that Gen- eral Fund expenditures will increase at an average annual rate of 6.6 percent. This overall growth rate reflects divergent trends among major state pro- grams. As indicated in Figure 2: ^ K-]ZProposition 98 (General Fund) spend- ing is projected to increase at an average annual rate of 4.3 percent over the forecast period, reflecting slowing growth in school enrollments. ^ Higher Education spending for community colleges (General .Fund) will increase 5.4 percent per year over the forecast pe- riod, reflecting our estimate of Proposi- tion 98 and community college enrollment. We also project that expenditures will in- crease at an average annual rate of 5 per- cent for CSU and 5.1 percent for UC. The increases for both of the latter segments reflect projected growth in student enroll- ment and inflation. ^ Medi-Cal benefits are projected to grow at an average annual rate of 8.8 percent. This large increase reflects (1) continued rapid growth in costs for medical services and prescriptions and (2) added costs begin- ning in 2003-04 to cover recent program expansions that are currently being sup- ported by the Tobacco Settlement Fund. ^ California WorkOpportunityandRespon- sibilitytoKids (CaIWORKs) spending is pro- jected to remain nearly flat through the forecast period. Our projections assume that caseloads will continue to decline through 2005-06, enabling the state to fund both cost-of-living adjustments (COLAs) and employment services while at the same time holding total spending for the program near the federal maintenance-of-effort floor. ^ Supplemental Security Income/State Supplementary Program (SSI/SSP) spend- ing isprojected to increase at an average an- nual rate of 6.4 percent. This reflects the impacts of caseload growth and statutory COLAs over the forecast period. ^ In-Home Supportive Services (IHSS) spending is projected to increase at an av- erageannual rate of 9 percent. Our estimates assume annual wage increases for certain IHSS workers, as provided for by current law, as well as continued growth in caseloads. ^ OtherMajorHealthandSocialServicesPro- gramsare projected to grow at an average annual rate of 6.5 percent. Growth in this category is affected by continued rapid in- creases incaseload and costs in the Depart- ment of Developmental Services regional centers, as well as a funding shift for the Healthy Families Program and certain pub- lic health programs from the Tobacco Settlement Fund to the General Fund be- ginning in 2003-04. ^ DepartmentofCorrectionsspending is fore- cast to grow at an average annual rate of 9.5 percent. This reflects stable inmate populations, accompanied by cost in- creases for the Unit 6 bargaining agreement and health care costs for inmates. ^ Uehicle License Fee (VLF) Subventions. Ap- propriations to backfilllocal revenue losses associated with the VLF tax reduction are projected to increase at an average annual rate of 5 percent. This reflects moderate in- creases in vehicle registratia~s and price levels over the forecast period. ^ Debt Service. Principal and interest pay- ments on general obligation and lease rev- enue debt are projected to increase at an annual rate of 16.8 percent. Our estirates reflect the Treasurer's restructuring of debt, 26 Legislative Analyst's Office California's Fiscal Outlook eaucanon programs K-12-Proposition 98 $26,806 $28,649 $29,398 $30,568 $32,309 $33,921 $35 316 4 3%, Community Colleges- , . Proposition 98 2,573 2,814 2,832 2,989 3,194 3,422 3 659 5 4 CSU UC 2,638 2,620 2,747 2,896 3,026 3,174 , 3,340 . 5.0 3,232 3,133 3,303 3,482 3,638 3,817 4 016 5 1 Health and Social Services , . Medi-Cal benefits $8,949 $9,782 $11,160 $12,075 $12,992 $13,863 $14 915 8 8 CaIWORKs SSI/SSP 2,021 2,041 2,143 2,078 2,078 2,078 , 2,078 . 0.4 IHSS 2,807 3,060 3,420 3,566 3,750 3,960 4,182 6.4 Other major programs 887 6 637 1,009 6 249 1,106 6 86 1,217 1,337 1,440 1,550 9.0 Department of Corrections , 4,657 , 4,700 , 1 4,848 7,229 5,093 7,637 5 363 8,089 5 677 8,578 5 849 6.5 4 5 Vehicle license fee , , , . subventions 2,460 3,789 3,888 4,065 4,308 4,565 4,838 5.0 Debtservicea 2,954 2,571 2,907 4,190 4,646 5,159 5 589 i6 8 Other programs/casts 10,313 8,036 10,602 11,549 12 500 13,385 , 14,279 . 12.2 Totals $76,940 $78,453 $85,216 $90,996 $96,779 $102,551 $108,190 6.6% Detail may not total due to rounding. a Includes both general obligation and lease-revenue bonds for all departments which will deferabout $860 million in debt service payments in 2002-03. We assume that the state will sell a portion of the $25 biilionofcurrentlyauthorizedgeneral obligation bonds. We also assume that vot- ers will approve the $22 billion in bonds already on the ballot in 2004, and that a rela- tively small portion of these bonds will be sold in the latter years of the forecast period. ^ OtherPrograms/Costs. We project that these costs will increase at an average annual rate of 12.2 percent over the forecast period. Factors affecting this category include: (I) Legislative Analyst's Office $1.2 billion in new spending for transpor- tationbeginning in 2003-04, as required by Proposition 42; (2) increasing costs for state employee health care and retirement programs: and (3) resumed payment of annual noneducation mandate costs and am- ortization of prior-year claims. PROPOSITION 98- K-14EDUCATlON State spending for K-14 education (K-12 schools and community colleges) is governed largely by 21 Figure 2 Projected General Fund Spending for Major Programs (Dollars in Millions) California's Fiscal Outlook Proposition 98, passed by the voters in 1988. Proposition 98 sets the minimum amount the state must provide for California's public K-12 educa- tion system and the CCC. Almost 80 percent of to- tal operations funding for K-14 education is from the state General Fund and local property taxes, pur- suant to Proposition 98. The remainder is from a variety of sources including federal funds, lottery revenue, and other local revenues. California's pub- lic K-12 education system consists of more than 1,000 locally governed school districts and county offices of education serving about 6 million K-12 students. In addition, these entities serve infants and preschool students receiving child care, and indi- viduals inadult education programs.The CCC pro- vides instruction to about 1.7 million adults at 107 colleges operated by 72 locally governed districts. The Spending Forecast. With the enactment of the 2002-03 Budget Act, Proposition 98 appropria- tions exceeded the minimum guarantee by $6 mil- lion. We now estimate that declining General Fund revenues have lowered the 2002-03 minimum guar- antee by $1.9 billion. Because the 2002-03 appro- priationlevel has not changed, we forecast that the Proposition 98 minimum guarantee is now over- appropriated by $1.9 billion. For 2003-04, we estimate that Proposition 98 will require the Legislature to allocate approxi- mately $Z.2 billion, or 9.7 percent, more to Propo- sition 98 programs than in 2002-03. Since we esti- mate that over $1.4 billion of additional property tax revenue will be allocated to school and com- munity college districts in 2003-04, the General Fund increase would be $770 million (a 2.4 per- cent increase). In addition to the $2.2 billion growth in the Proposition 98 guarantee, the Legis- lature will have available $400 million of funding in the Proposition 98 base that will befreed-up for other K-14 priorities in 2003-04. This funding is a result of spending deferrals that were made to help address the state's budget problem (see discussion in the nearby shaded box). For the forecast period, we estimate that growth in total Proposition 98 spending (General Fund and local property taxes) for K-14 education will average 5.4 percent annu- a11y (see Figure 3). This growth rate is lower than the rate currently projected for 2002-03 (7.6 per- cent), but higher than the growth rate in 2001-02 (0.7 percent) . Key Forecast Factors. General Fund expenditures for Proposition 98 depend on a variety of factors- including K-12 average daily attendance (ADA), per capita personal income, per capita General Fund revenues, and local property taxes. For our fore- cast: ^ We assume a slowing rate ofgrowth in K-12 ADA. We forecast the growth rate for 2003-04 at 1 percent, falling to 0.2 percent by 2007-08. 2002-03 Deferrals "Free-Up" Over $400 Million in 2003-04 As part of the solution to the 2002-03 budget problem, the Governor and Legislature deferred $1.1 billion of Proposition 98 spending from 2001-02 to 2002-03. Instead of receiving $1.1 bil- lion in categorical funding in the fate spring of 2002, schools received the funding in summer 2002. The deferral had no programmatic impact on school districts, although some districts may have experienced cash-flow and accounting diffi- culties as a result of the delay. A second compo- nent ofthe 2002-03 budget solution was to defer $681 million of Proposition 98 funding from 2002-03 to 2003-04. Since the deferrals are one- timecosts and the level of deferral paid in 2002-03 ($1.1 billion) is larger than the deferral required to be paid in 2003-04 ($681 million), the Legis- laturewill have over $400 million in resources avail- ablefor otherProposition 98 priorities in 2003-04. 2S Legislative Analyst's Office California's Fiscal Outlook ^ We forecast California per capita personal income to grow at just over 2 percent in 2003-04. Given the uncertainty surround- ing the economy and per capita personal income in the coming year, we note that the Proposition 98 guarantee would in- crease (decrease) by around $975 million for each additional 1 percent increase (de- crease) in per capita personal income. Any change in per capita personal income would result in an equivalent change in General Fund needed for Proposition 98 (assuming the same growth in local prop- erty tax revenues). ^ Our forecast also reflects moderate growth in General Fund revenues. However, we fore- cast local property tax growth averaging over 7.5 percent, reducing the General Fund portion of Proposition 98 growth. Figure 3 The LAO Proposition 98 Forecast Proposition 98 (In Billions)e K-72 $41.6 $43.6 $45.9 $48. Community Colleges 4.8 5.0 5.4 5. Totals $46.5b $48.7° $51.24 $54.4 Community Colleges share of guarantee 10.4% 10.4 % 10.5 % 10.5 Proposition 98 "Test" 2 2 2 2 Annual Percentage Change State population 1.7 % 1.5% 1 5 % 1 5 K-12 average daily attendance 1.4 1.0 0.8 0.8 Per capita personal income -1.3 2.1 3.4 5.3 Total guarantee 7.6 4.7 5.2 6.1 General Fund 7.0 2.4 4.1 5.8 Local property taxes 8.7 9.6 7.4 6.8 a Includes local property tax revenues. f) Assumes restoration of $3.2 billion oi'maintenance (actor." ~ Assumes restoration of $700 million of mai ntenance factor. d Assumes over-appropriation of $428 million to fund Proposition 49. Detail may not add to total due to rounding. Legislative Analyst's Otlice Figure 3 summarizes our assumptions for these fac- torsand identifies the annual changes in the guar- anteethat result. Commitment to Over-Appropriate Proposi- tion 98. In addition to the above factors, our fore- cast also accounts for statutory commitments to over-appropriate the minimum guarantee in 2003-04. Chapter 1167, Statutes of 2002 (AB 2781, Oropeza), requires the state to restore any"mainte- nance factor" in 2003-04 regardless of what the Proposition 98 minimumguarantee would require. (A maintenance factor is created in years where Gen- eral Fund revenues grow more slowly than the economy. We estimate that the state will have amain- tenancefactor of $700 million in 2003-04.) Our fore- castsuggests that General Fund revenues will grow at roughly the same rate as the economy in 2003-04. As a result, Proposition 98 would not require any of the $700 million maintenance factor to be restored. Thus the statutory require- ment to restore all of the maintenance factor would result in an over-appro- ~® Priation of $700 million in 2003-04. In addition, Chap- ter 1167 requires the state to 6 $51.4 $54.0 provide an additional 7 6.1 6.6 $79 million over-appro- $57.5 $60.5 priation related to the prior-year's deferrals. The 10.7% 10.8 over-appropriation of al- t 2 most $780 million would become part of the Propo- 1.5 % 1.5 % sition 98 base-making the increase permanent. 0.4 0.2 5.4 5.1 Impact of Proposi- 5.8 5.3 tion 49. Our forecast also 5.2 4.4 assumes that the recent pas- 7.0 7.o sage of Proposition 49-the After School Education and Safety Program-will re- quire the state to over-ap- propriate the minimum guarantee in 2004-OS by up 29 California's Fiscal Outlook to $428 million under certain conditions. The ini- tiative requires the state toover-appropriate Propo- sition 98 by the difference between $550 million and the 2003-04 appropriation for the program. If the 2002-03 appropriation level of $122 million is continued into 2003-04, then the state wilt be re- quired to over-appropriate Proposition 98 by $428 million in 2004=05. The Legislature and Gov- ernor, however, could decide to increase funding for the before and after school program in 2003- 04. Given the growth in the Proposition 98 mini- mum guarantee in 2003-04 and the net impact of deferrals, there will be over $1 billion available-beyond growth and COLA-for expansion of existing programs and/ or funding for some new programs in 2003-04. Thus, the state could choose to fund part or all of the required Proposition 49 expansion within the 2003-04 minimumguarantee- K-12 Funding Projections. Figure 4 displays our projected K-12 per-pupil spending levels (in both "current" and inflation-ad- justed dollars). These estimates are derived from Figure 4 our Proposition 98 forecast proposition 98 and are adjusted for fund- ingdeferrals between years. (That is, we counted the $1o,oo0 spending toward the fiscal ^ year in which school dis- s,ooo trios had programmati- e,ooo ® t catty committed the re- 7,000 sources.) The estimates re- flect real (that is, inflation s,ooo adjusted) per-pupil in- 6,ooo creases averaging 1.7 per- centannually over the fore- 4,000 cast period. These addi- 3,000 tional resources-averag- 2,000 ingover$750 million each yearafter2002-03-would 1'0°° permit expansion of exist- ing programs and/or fund- sags ss-oo ing for some new programs. Community College Funding Projections. Based on our Proposition 98 projections, we estimate to- tal CCC funding would increase by about 6.3 per- cent per year over the forecast period. To forecast the CCC's share of Proposition 98, we assumed that both CCC and K-12 would receive statutorily re- quired growth and COLA each year. We assumed that growth in Proposition 98 funds in excess of growth and COLA would be distributed hosed on the historic K-12 and CCC split. The resulting fore- cast projects a gradual increase in CCC's share of Proposition 98 spending from 10.4 percent in 2002-03 to 10.8 percent in 2007-08. As shown in Figure 5, the increase in CCC's share of Proposi- tion 98 funds is due to CCC's enrollment growth rate exceeding K-12's over the forecast period. UC AND CSU In addition to community colleges, the state's public higher education system includes the UC K-12 Funding per Students Current Dollars aFOr 2001-02 through 2003-04, we adjusted spending for deferrals-that is, we counted funds toward the fiscal year in whicfi school districts programmatically committed the resources. 30 Legislative Analyst's Office 00-01 01-02 02-03 03-04 04-06 OS-06 06-07 07-08 California's Fiscal Outlook and the CSU. The UC consists of eight general cam- puses, one health science campus, numerous spe- cialresearch facilities, and a planned tenth campus in Merced. The UC awards bachelor's, master's, and doctoral degrees, as well as various professional de- grees.The UC has primary jurisdiction over public university research. The CSU consists of 23 campuses and several off-campus centers. The CSU grants bachelor's and master's degrees and may award doc- toraldegrees jointly with UC or a private university. The Spending Forecast. We estimate that spend- ingfor UC and CSU (excluding funding for capital outlay and debt service) will increase from $5.8 bil- lion in 2002-03 to $6.1 billion in 2003-04, or by 4.9 percent. By 2007-08, we estimate that spending for UC and CSU will increase to $7.3 billion, reflect- ingannual increases ofabout 5 percent. KeyForecastFactors. For 2003-04 and subsequent fiscal years, we assume that UC and CSU will re- ceive base budget increases equivalent to the Figure 5 Projected Enrollment Growth CCC and K-12 growth in inflation and enrollments. Over the fore- castperiod, inflation is projected to average roughly 3 percent annually. With regard to enrollment growth, the Master Plan calls for UC and CSU to draw from a fixed eligibility pool (12.5 percent and 33.3 percent, respectively) of high school gradu- ates. The main component of enrollment growth, therefore, is growth in the number of high school graduates. This population is expected to grow at a modest rate of 1 percent to 2 percent annually over the forecast period. We expect the rate of college enrollment will be somewhat higher than this, how- ever, for three reasons. First, the state continues to conduct outreach and similar activities to encour- age increased college participation by targeted groups. Second, the recent expansion of financial aid programs, including the guaranteeing of Cal Grants to qualified high school graduates, is subsi- dizing the cost of college attendance for an increas- ingnumber ofstudents. Third, the declining real cost of higher education fees (which have not been in- creased for eight years) provides an added fiscal in- centive for college atten- dance. i Forecast ~ Legislative Analyst's ~Cfice Cal Grant Increases. Chapter 403, Statutes of 2000 (SB 1644, Ortiz), made Cal Grant awards an enti tlement for every quali- fiedgraduating high school senior. There is still uncer- tainty as to the Cscal im- pact ofthe new entitlement program. This is because it is unclear how students and their families will respond to the changes in Cal Grant policies. Based on informa- tion frorn the Student Aid Commission, however, we project that annual total Cal Grant expenditures could exceed $1.5 billion by 2007-08. 31 uu-ut V1-UZ 02-03 03-04 04-OS 05-06 06-07 07-OS California's Fiscal Outlook HEALTH Tobacco Settlement Fund The 2001-02 budget plan established a new spe- cial fund, the Tobacco Settlement Fund, which is made up of revenues received by the state from the settlement of tobacco-related litigation. The law cre- atingthe fund initially required that, after 2001-02, all revenues from this source be deposited in the fund .for the support of various specified health programs. However, under more recent legislation, this rev- enue stream was sold to investors (securitized) to provide funds to support overall state expenditures in 2002-03. Because tobacco settlement receipts will be used to retire this debt for the foreseeable future, little if any of these funds will be available in 2003-04 and subsequent years for the support of health programs. The SpendingForecast. This forecast assumes that the cost of these programs-estimated to be $546 million in 2002-03-shifts to the state General Fund. The specific health programs affected by such funding shifts include Medi-Cat, public health pro- gramssuch asthe Child Health and Disability Preven- tion and prostate cancer treatment programs, and Healthy Families insurance coverage for children. Medi-Cal The Medi-Cal Program (the federal Medicaid program in California) provides health care ser- vices to recipients of CaIWORKs or SSI/SSP grants, and other low-income persons who meet the program's eligibility criteria (primarily families with children and the elderly, blind, or disabled). The state and federal governments share most of the program costs on a roughly equal basis. The Spending Forecast. We estimate that Gen- eral Fund spending for Medi-Cal local assistance {in- cluding benefits, administration, and other costs) will be nearly $10.4 billion in the currentyear, about a $600 million increase over the amount appropri- ated in the 2002-03 Budget Act. We project that, bar- ringother actions by the Legislature and Governor, General Fund support for the program would grow to $11.8 billion in 2003-04, a 13.6 percent increase from current-year expenditures. By the end of the forecast period in 2007-08, we estimate that General Fund spending forMedi-Cal will reach $15.7 billion, an average annual increase of 8.5 percent over the projection period. Key Forecast Factors. Several factors playa sig- nificant role in our forecast: ^ Health Care Costs. The most signi ficant fac- tor in our forecast is our assumption that the cost of most health care services pro- vided to Medi-Cal enrollees will increase at an annual rate of between 5 percent and 7 percent from 2003-04 through 2007-08, consistent with past trends. This increase in the cost of services provided to enroll- ees can be seen in Figure 6. Our projected health care costs are subject to consider- able uncertainty and small changes in the .rate of growth in medico[ costs could have significant fiscal effects. ^ Reductions in the Federal Matching Rate. The federal Medicaid matching rate is based on a state's per capita income relative to the nation for the most recently available three calendar years. Because California's economy was especially strong in the late 1990s, the state's federal matching rate was reduced. The 2002-03 Budget Act assumed that the state would receive an additional $400 million in federal assistance on a one- time basis to offset this adjustment in the federal matching rate but, at the time this projection was prepared, Congress had not taken anysuch action. Our forecast assumes this assistance will not be forthcoming in 2002-03. ^ Tobacco Fund Shift. In 2002-03, the Medi- cal budget is partly supported with money received from the settlement of tobacco liti- gation. Tobacco fund securitization will re- sult in anongoing shift to the General Fund 32 Legislative Analyst's Office California's Fiscal Outlook of $235 million for the Medi-Cal Program alone. Our forecast reflects this anticipated funding shift. ^ Medi-Cal Enrollment Trends. Asshown in Figure 6, the overall Medi-Cal caseload appears to be stabilizing. This period of relative stability follows several years of particularly strong caseload growth among low-income families and children who do not receive cash assistance, which was due primarily to changes in program eligibility rules. The full effect of these changes now appears to have been largely realized. Our forecast assumes some continued caseload growth commensurate with increases in the state's population. It also assumes that the state's economic slowdown will result in a modest further increase in the Medi-Cal caseload in the near term. ^ ProviderRates. Our forecast assumes resto- ration of more than $70 million from the Figure 6 Medi-Cal Cost Per Person Increasing- While Overall Caseload Stabilizing General Fund in 2002-03 for Medi-Cal pro- vider rates consistent with the Governor's intentions, which he stated while signing recent Medi-Cal-related legislation. Healthy Families Program The Healthy Families Program implements the federal State Children's Health Insurance Program, enacted in 1997. Funding generally is on a two-to- one federal/state matching basis. The program of- fers health insurance to eligible children in families with incomes below 250 percent of the federal pov- erty level. Families pay a relatively low monthly premium and are offered coverage similar to that available to state employees. The state has received federal approval to expand Healthy Families coverage to eligible parents in fami- lies with incomes below 200 percent of the federal poverty level. However, the Governor vetoed fuad- ingthat had been included in the 2002-03 budget to commence the expansion in October 2002 because of the state's ongoing fiscal problems. Persons Enrolled aGeneral Fund and federal funds. Forecast "^^~~°' Cost sons $4, 500 4,000 3,500 3,000 z,soo The Spending Forecast. We estimate that overall state spending for the Healthy Families Program will exceed $260 million in 2002-03, about the same amount of funding as pro- vided in the 2002-03 Bud- getAct. About $21 million in support would be pro- vided from the General Fund, with the balance in state funding during this period coming from the Tobacco Settlement Fund. We further estimate z,ooo that overall state spending for the program will in- creaseabout 14 percent in Legislative Analyst's Office 33 ~~-~ ~ u ~-u~ uz-u3 03-04 04-05 05-06 06-07 07-08 California's Fiscal Outlook 2003-04 to about $300 million, and that by 2007- 08 the program will have an annual cost of about $390 million. The forecast assumes that all $300 mil- lion instate support for the program commencing in 2003-04 comes from the Generai Fund. Key ForecastFactors. The significant increase in General Fund resources for the program in 2003-04 is the result of the anticipated loss of pro- gramsupport from the Tobacco Settlement Fund. The forecast assumes that the expansion of the pro- gram to parents does not occur during the projec- tionperiod. The growth in the program is based on the assumption that the caseload of children in Healthy Families continues to grow, although not as quickly as in previous years, as the program reaches a larger proportion of the eligible popula- tion.Specifically, we assume that the program, which had about 570,000 children enrolled as of July 2002, will reach an enrollment of almost 700,000 children by June 2008. The forecast assumes continued in- creases inthe cost of medical coverage. Developmental Services The Lanterman Developmental Disabilities Ser- vices Act of 1969 entitles individuals with devel- opmentaldisabilities to a variety of services, which are overseen by the DDS. Individuals with develop- mentaldisabilities have been diagnosed with men- tal retardation, cerebral palsy, epilepsy, autism, or other similar disabling conditions. The DDS oper- ates five Developmental Centers (DCs) and two smaller facilities which provide 24-hour institutional care, and contracts with 21 Regional Centers (RCs) to coordinate and deliver community-based services. The Spending Forecast. We estimate that Gen- era( Fund spending fordevelopmental services in 2002-03 will total $1.8 billion, the same amount of funding appropriated in the 2002-03 Budget Act. Of that total, nearly $1.5 billion will be spent by RCs for community services and about $332 mi]- lionwill bespent for operating the DCs. We further estimate that General Fund spend- ing for developmental services will grow by about 9 percent in 2003-04 to nearly $2 billion. By 2007- 08, we estimate that General Fund spending for this program will grow by $1 billion and reach $2.8 bil- lion. This expenditure growth is due almost en- tirely tothe RCs. We estimate that spending for DCs will remain relatively flat over the forecast period. Key ForecastFactors. Our forecast of significant growth in RC spending reflects historical increases both in caseload and in the average cost of serving each RC client. Specifically, our forecast assumes that RC caseloads will continue to grow at an an- nual average rate of 5.4 percent and that costs will continue to grow at an annual average rate of 5.9 percent. SOCIAL SERVICES CaIWORKs In response to federal welfare reform legislation, the Legislature created the Ca1WORKs program in 1997. This program provides cash grants and wel- fare-to-work services to families with children whose incomes are not adequate to meet their basic needs. The Spending Forecast General Fund spending in 2002-03 for the CaIWORKs program is estimated to be $2 billion, an increase of 1 percent over the prior year. In 2003-04, spending is projected to in- crease by 5 percent, to $2.1 billion. We project spending to decrease by 3 percent in 2004-05, and then remain stable through the remainder of the forecast period. The projected year-over-yearspend- ingchangesresultfrorn (1) satisfying the remaining state match obligation for the federal Welfare-to- Workprogram in 2003-04 and (2) replacing tower maintenance-of-effort (MOE)-countable spending in other programs with additional General Fund spending within CaIWORKs. Continued caseload decline projected through the forecast period en- ables [he state to maintain spending at the federal MOE Floor. 34 Analyst's Office California's Fisca3 Outlook Key Forecast Factors. Our CaIWORKsspending projection is based on several factors, the most im- portant being our caseload projections {discussed below). In addition, we assume that California will meet the $2.7 billion MOE spending requirement by counting about $650 million being spent in other programs. Finally, we assume that the Temporary Assistance for Needy Families (TANF) block grant will be reauthorized at its current $3.7 billion an- nuallevel for California. Unanticipated Caseload Declines Relieve Ca1WORKs Funding Pressures. Contrary to 2002-03 Budget Act assumptions, the caseload de- creased in 2001-02, and we project caseloads to de- clinefurther inthe currentyear. (We discuss caseload trends below.) We project that these unanticipated caseload declines, as well as continued annual de- clines through 2005-06, will result in program sav- ingsand sufficient TANF carryover funds to enable the state to maintain General Fund spending at the MOE floor while providing the statutory COLA and inflation adjustments for employmentservices and child care throughout the forecast period. Sensitivity to Caseload Projections. Our spend- ingforecast isdriven largely by our caseload projec- tions,and relatively modest caseload movement in either direction could result in significant program costs or savings. If the caseload were to remai n stable in 2003-04 and beyond, rather than decreasing as projected, we estimate that federal carryover sav- ings would be exhausted in 2004-05. Fully funding the program in that year would require General Fund expenditures of approximately $300 million above the MOE floor. By 2007-08, fully funding the program would require spending over $1 billion above the MOE floor: CaseloadTrendsandProjections. From 1994-95 through 2001-02, the CaIWORKs caseload declined by 46 percent. As shown in Figure 7 (see next page). we believe the decline will continue, due to economic and demographic trends (primarily lower birth rates). Specifically, we project a 2 percent decline in 2002-03 and a decline of 5 percent in 2003-04, followed by lower declines of 4 percent and 1 per- cent in 2004-05 and 2005-06, respectively. This is followed by caseload increases of about 1 percent in both 2006-07 and 2007-08.Our projections are based on a trend analysis of caseloads, birth rates, grant levels, and unemployment rates. SSI/SSP The SSI/SSP provides cash assistance to eligible aged, blind, and disabled persons. The SSI compo- nent is federally funded and the SSP component is state Funded. The Spending Forecast. General Fund spending for SSP is estimated to be about $3.1 billion in 2002-03, an increase of 9 percent over the prior year. For 2003-04, we project an increase of 12 percent, raising total expenditures to $3.4 billion. We project that from 2004-05 through the end of the forecast period, spending for SSP will increase by an annual average of 5.2 percent, eventually reaching a total of $4.2 billion. KeyForecastFactors.The 2002-03 Budget Actde- layed the January 2003 COLA until June 2003. The current-year COLA cost of $24 million results in an- nual incremental costs of about $267 million (rep- resenting 11 new months of costs) in 2003-04. For tl~e remainder of the forecast period, the two pri- mary components of projected cost increases are (1) annual caseload growth of about 2.2 percent and (2) providing the statutory January COLA. In 2002-03, caseload growth and COLA result in addi- tional costs of $93 million. In 2003-04 and subse- quent years, annual caseload costs average about $70 million, and the cost of providing the COLA ranges from $70 million to $120 million, depending on the California Necessities Index and the amount of the federal SS1 COLA, which is based on the Con- sumerPrice Index.. Caseload Trends and Projections. Duri ng the late 1980s and early 1990s, the caseload grew rapidly, with most of the growth in the disabled compo- Legislative Analyst's 35 California's Fiscal Outlook nent of the caseload. In the mid-to-late 1990s, the caseload leveled off and actually declined in 1997- 98, in part due to federal policy changes which re- stricted eligibility. Since March 1998, the caseload has been growing at a steady rate of about 2.2 percent per year. We expect this growth rate to continue throughout the forecast period. IHSS The IHSS program provides various services to eligible aged, blind, and disabled persons who are unable to remain safely in their own homes without such assistance. Figure 7 CaIWORKs Caseload Decline Continues Through 2005-06 Cases (!n Thousands) The Spending Forecast. General Fund spending for IHSS is projected to be about $1 billion in 2002-03, an increase of 14 percent over the prior year. For 2003-04 we project that costs will increase by 10 percent. This rate of spending growth will con- tinue for the next two Fiscal years and then fall to about 8 percent in the final two years of our fore- cast, resulting in total expenditures of $1.6 billion in 2007-08. KeyForecastFactors.Ourforecast assumes that costs will increase 7.5 percent each year due to caseload growth and increases in the hours of ser- vice provided to recipients. Recent legislation au- thorizing state participation in health benefits and wage increases for certain IHSS workers will in- creaseannual costs by an additional $78 million over the forecast period. 36 JUDICIARY AND CRIMINAL JUSTICE The major state judiciary and criminal justice programs include support for four agencies in the executive branch-the California Department of Corrections {CDC), Department of the Youth Au- thority, the Department of Justice, and the Office of Criminal Justice Planning-as well as expenditures for local trial courts and state appellate courts. The largest expenditure program-the CDC-is dis- cussed in more detail below. California Department Of Corrections The CDC is responsible for the incarceration and care of adult Felons and nonfelon narcotics addicts at 33 state prisons. The CDC also super- vises and provides services to parolees released to the community. Legislative Analyst's Officc 91-92 93-94 95-96 97-98 99-00 Ot-02 03-04 05-06 07-08 L- Forecast----1 California's Fiscal Outlook The Spending Forecast. General Fund support for CDC is forecast to grow by about $190 million from 2001-02 to 2003-04, reaching about $4.8 bil- lion atthe end of that period. Expenditures for CDC are forecast at about $5.8 billion by 2007-08. (This includes adjustments for employee compensation increases, but does not include General Fund sup- port for capital outlay and debt service; which are accounted for elsewhere in our projections.) The projected growth in adult correctional ex- penditurescontinues atrend ofsteadily increasing CDC budgets that has existed since the early 1980s. However, in a change from past growth trends, the CDC budget now appears likely to grow significantly more slowly. The forecast assumes that the CDC budget would grow at an average annual rate of 4.5 percent through 2007-08, compared with sub- stantially higher prior annual growth rates in the past that sometimes exceeded 10 percent. During the forecast pe- riod, the department's General Fund costs are as- sumed to be partially offset by $143 million in annual reimbursements from the federal government for a portion of the state's costs of housing undocumented immigrants convicted of felonies in California. This is roughly the same amount budgeted in 2001-02. Key Forecast Factors. The projected increases in General Fund support for CDC are driven by a com- bination offactors, includ- ingcorrectional officer sal- ary increases pursuant to the Unit 6 bargaining agree- ment; overtime, sick leave, and workers' compensa- tion costs; and growth in the cost of inmate health care services. The Unit 6 agreement went into ef- fect in January 2002 and is estimated to result in salary increases of aver $600 million during the forecast period, with the first increase expected in 2002-03. Also, increases in the overall cost of pro- viding health care to inmates have caused health care expenditures to increase at a higher rate than other prison support costs. Prison population is not a significant driver of General Fund cost increases after 2002-03. As seen in Figure 8, although the population is projected to increase by 2,700 inmates by the end of 2002-03, it is expected to stabilize at this level in- creasing by only 540 inmates (or less than 1 percent) over the remainder. of the projection period. Ac- cording toCDC, the 2002-03 population increase is largely due to a reduction in available focal jail beds for CDC commitments. Figure 8 Inmate Population Projected to Stabilize (1n Thousands) 764 ts2 tso tss tss tsa 752 tso 748 tas t---- Forecast ~ Legislative Analyst's Office 3rJ 96-97 98-99 00-01 02-03 04-OS 06-07 California's Fiscal Outlook OTHER PROGRAMS Statewide Reductions The 2002-03 budget package contained a num- ber of provisions designed to generate statewide General Fund savings, including (1) unallocated reductions in departments' state operations budgets, (2) a golden handshake program for early retirement from state service, (3) elimination of va- cant positions, and (4) the continuation of a hiring freeze. In total, these provisions were expected to generate over $ I .I billion in Genera] Fund savings in 2002-03. Based on several factors, we do not expect these provisions to generate the magnitude of expected savings in the current year. For instance, the golden handshake program will likely generate no savings due to optional participation by departments and the requirement that positions be held vacant only long enough to offset increased retirement costs. As a result, we project savings for these items to total slightly more than $300 million in 2002-03. We ex- pectthat this amount will increase in 2003-04 and thereafter, as additional vacancies are eliminated and spending reductions are more fully implemented. Employee Compensation In projecting expenditures for employee com- pensationcosts, we have estimated the future costs for existing agreements between the state and its bargaining units. For instance, the negotiated pay increases for highway patrol and correctional of- ficers will increase General Fund expenditures by $73 million in 2003-04-increasing to $677 million by 2006-07. For the other bargaining units without long-term agreements, we have included the costs for the general s percent salary increase due to begin at the start of 2003-04 ($188 million General Fund annually). For these units, we assumed compensa- tion costs in future years will increase at the same rate as inflation. A 1 percent salary increase for state employees in these units increases General Fund costs by about $39 million. Mandates The California Constitution requires the state to reimburse local governments and K-14 school dis- tricts for the cost of complying with state mandates. In 2003-04, we estimate that the state will incur costs of about $ I billion to reimburse local governments and K-14 districts for new and ongoing mandates. We assume that funding for education mandates (approximately $500 million of the $I billion) will be incorporated within the Proposition 98 guaran- tee-as has been the practice in previous years. We project that these annual mandate costs will grow by 5 percent a year, although recent experience sug- gests that these costs may grow at an even higher rate. In 2002-03, thestate deferred payment on over $800 million of noneducation mandate claims. We assume the state will pay these deferred claims, with interest, between 2004-05 and 2007-08. 38 Legislative Analyst's Office LAO ~~, .5 60 YErI RS OF S[RVICL • ; .. This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on frle in the Office of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603- 0220, ext. 200. Procedures forAddressinp the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. ,lL~~ Q~ ~ AGENDA ITEMS ON FILE FOR CONSIDERATION 2 COUNCIL CHAMBERS 7 S+y+~`L~~11i2+31415 6 11330 BULLIS ROAD, LYNWOOD, CA 90262 ~~¢~ ARTURO REYES PRESIDENT FERNANDO P ROZA LOUIS BYRD VICE PRESIDENT MEMBER AT THE REGULAR MEETING OF CITY OF lYNW000 THE LYNWOOD PUBLIC FINANCE AUTHORITY CITY CLERKS OFFICE TO BE HELD ON NOVEMBER 19, 2002 NOV 14 200 6:00 P.M. PAUL H. RICHARDS, II MEMBER RAMON RODRIGUEZ MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) MINUTES OF PREVIOUS MEETING Regular Meeting, October 1, 2002 Special Meeting, October 7, 2002 Special Meeting, October 9, 2002 Special Meeting, October 10, 2002 Regular Meeting, October 15, 2002 Special Meeting, October 23, 2002 HOUSING AND EMERGENCY SHELTER TRUST FUND ACT OF 2002 Comments: According to the California Department of Housing, the State of California is currently facing a housing affordability crisis. The effort of the various stakeholders within the state to address the housing affordability crisis include voter approval of three general obligation bonds totaling $600 Million dating back to the late 1980's and a budget provision of $500 Million in the State of California 2000-2001 Budget Act. The Housing and Emergency Shelter Trust Fund Act of 2002 placed $2.1 Billion in general obligation bonds on the ballot in the form of Proposition 46 at the November 5, 2002 statewide election. This proposition was approved by 57.5% of voters statewide. The passage of this bond measure provides another mechanism of financial assistance via the state, for local governments to mee# state mandated housing goals as well as address housing infrastructure needs facing individual communities. Recommendation: Staff respectfully requests that the Board of Directors of the Lynwood Public Finance Authority receive and file this item. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON DECEMBER 3, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING OCTOBER 1, 2002 The Public Finance Authority of the City of Lynwood met in a Regular Meeting at 11330 Bullis Road on the above date at 7:20 p.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Chief Administrative Officer Montgomery, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the frown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS Item #4: MINUTES OF PREVIOUS MEETINGS It was moved by Member Richards, seconded by Member Byrd and carried to approve the following minutes: Regular Meeting, September 3, 2002 Special Meeting, September 4, 2002 Regular Meeting, September 17, 2002 Item #5: PUBLIC WORKS PROJECTS -RUBBERIZED ASPHALT CONCRETE GRANTS The City of Lynwood finances public works projects and other capital improvements through a variety of sources annually including the general fund and various intergovernmental transfers from the Federal and State Government. SB 1346 (Kuehl) authorizes the CIWMB to create a grant program through June 30, 2002 to local agencies including cities, counties, and special districts for funding of public works projects that utilize rubberized asphalt concrete. SB 1346 was approved by Governor Gray Davis on September 17, 2002 and will go into effect on January 1, 2003. It was moved by Member Rodriguez, seconded by Vice President Pedroza and carried to receive and file this information. It was moved by Member Richards, seconded by Mayor Pro Tem Pedroza and carried to direct staff for the Budget Workshop on Monday October 10, 2002 to include all reports on the Revenues for the Parking Meters tickets through Parking Enforcement. ADJOURNMENT It was moved by Member Rodriguez, seconded by Vice President Pedroza and carried to adjourn the Regular Council Meeting at 7:25 p.m. Arturo Reyes, President Andrea L. Hooper, Cit~E}er~-_ _ .~._,__,.,~ ~ yl~t.. t LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING OCTOBER 7, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Bullis Road on the above date at 9:40 a.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Chief Administrative Officer Montgomery, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS {Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS Item #5: PARKING & TRAFFIC ENFORCEMENT WORKSHOP Chief Administrative Officer -Stated at the meeting of October 1,2002 Members of the Lynwood Public Finance Authority directed staff to conduct a workshop relative to parking. City Manager Assistant Hempe -Introduce Parking Enforcement Manager J.D. Whitaker who would be giving the presentation to the Members. Parking Enforcement Manager Whitaker - Presented the Members with a brief presentation on the Parking & Traffic Enforcement Workshop which covered areas: 1. Status of the Parking Meter and Collection Program 2. Status of the Vehicles for Sale Ordinance 3. Establishment of a Parking Authority or Parking District 4. Current staffing level for the in-house parking enforcement program Member Rodriguez -Stated he would like to extend the Parking Meters time frame to a limit of about two hours instead of only thirty minutes, that is just not enough time. Vice President Pedroza -Would also like to reconsider giving more time on the Parking Meters, there are just to many complaints about the thirty-minute time frame. Member Richards -Stated he agrees with the Members with extending the time frame on the Parking Meters believes it is not fair for the residents to have to come out every thirty minutes to put a quarter in the meter. President Reyes -Directed staff to change the time frame of the Parking Meters to two hours instead of thirty minutes. Parking Enforcement Manager J.D. Whitaker -Explained to the Members that the Parking Meters around St. Francis Hospital Zone have a time frame of two hours and the Long Beach Zone is a time frame of only thirty minutes. President Reyes -Stated the City needs to enforce Long Beach Boulevard especially on weekends there is to much cruising going on and that is creating problems for the City, also stated that there is to many vehicles for sale especially on weekends. Chief Administrative Officer Assistance Hempe -Questioned if the Members would like to bring back for further discussion.. President Reyes -Stated that on Long Beach Boulevard he would like to extend the Parking Meters time frame to two hours. Member Byrd -Stated he would like to have a meeting with all the owners of all the businesses here in Lynwood to come to an understanding pertaining to the Parking Meters. Member Rodriguez -Stated that staff should notify all the business owners about the extending time frame of the Parking Meters. Vice President Pedroza -Would like to request a temporary pass permit for the voluntary nurses of St. Francis Hospital so they would not have to pay Parking Meters. Also stated he would like to have a meeting with the Lynwood Unified School District in regards to the school traffic it is out of hand. Member Richards -Moved to have staff bring back a specific plan report on all the issues on the first meeting of November and also a report on the Parking Meters. Member Byrd -Second the motion. President Reyes -Stated motion passed by general consent. Member Richards -Moved that we conduct and bring back a study by no later than the first scheduled Regular Meeting in November concerning the placement of Meters along the balance of Long Beach Boulevard that it is not including in the current zone and extending to the South of the City border. Member Byrd -Second the motion. President Reyes -Stated motion passed by general consent. Member Richards - I would also move then that- we conduct a study concerning the Meters on Long Beach Boulevard southern most lot on the Lynwood Park area near Hosler and the Youth center. Member Byrd -Second the motion. President Reyes -Stated by general consent. Member Richards -Questioned the towing services, who do we call to come and remove the vehicles, who is under the Sheriffs department also. Parking Enforcement Officer J.D. Whitaker -Explained to the Members. that the Towing Company they call is Wins Tow because of their timely matter and service, and they are also on the list with the Sheriffs department. Member Richards -Moved that staff bring back not later than the first scheduled Regular Meeting in November one a draft revise Ordinance were a City can take advantage of a larger franchise fee and as well as taken over the referral authority in connection with the Sheriffs Station. The second option is for the City itself look into operating exclusively or to self-contract with the parties. Member Byrd -Second the motion. ROLL CALL: AYES: MEMBER BYRD, PEDROZA, RICHARDS, RODRIGUEZ NOES: MEMBER REYES ABSTAIN: NONE ABSENT: NONE Member Richards -Moved the agenda Item of our last Regular Meeting concerning towing operation it was brought up that we should consider Raul's Towing entering into the rotation we should give every business an opportunity we should allow Raul's Tow to enter the City's rotation. I direct staff to negotiate with Raul's Towing Company to enter the City's rotation service. Member Byrd -Second the motion. ROLL CALL: AYES: MEMBER BYRD, RICHARDS NOES: MEMBER RODRIGUEZ, REYES ABSTAIN: MEMBER PEDROZA ABSENT: NONE Member Richards -Moved an alternative motion that we direct staff to investigate the feasibility with Raul's services and bring back the advantages and disadvantages. Member Byrd -Second the motion. ROLL CALL: AYES: MEMBER BYRD, RICHARDS NOES: MEMBER RODRIGUEZ, REYES ABSTAIN: MEMBER PEDROZA ABSENT: NONE Secretary Hooper -Announced that she has all the information pertaining to the Towing services in her office. Member Richards -Questioned on the Operating Scales if the City provides any or if the Sheriffs department have any Operating Scales for over weight trucks etc. Lieutenant Tellez -Stated that the Sheriffs department does not have any personnel scales but there are three public scales within the area-for over weight truck or vehicles. Member Richards -Moved that by our next Regular scheduled Meeting that a report be generated by staff to prepare to respond to the issues of a City Operated Scale or one operated with the connection of the State of California for over weight vehicles and to generate what the fee or cost for an Operating Scale would be. Vice President Pedroza -Second the motion ROLL CALL: AYES: MEMBER BYRD, PEDROZA, RICHARDS, RODRIGUEZ, REYES NOES: NONE ABSTAIN: NONE ABSENT: NONE ADJOURNMENT It was moved by Member Rodriguez, seconded by Member Byrd and carried to adjourn the Special Council Meeting at 12:20 p.m. Arturo Reyes, President Andrea L. Hooper, Secretary LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING OCTOBER 9, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Bullis Road on the above date at 9:15 a.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present was Secretary Hooper. Chief Administrative Officer Gonzales was absent. City Attorney Montgomery was absent. Treasurer Pygatt was absent. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS {Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS .NONE For the record these minutes are verbatim from the recorded tape Member Richards -Stated to the President that he had called yesterday and advised the Chief Administrative Officer that he has a pending emergency today and it has been our practice when a Member has an emergency or over this passed year if there has been any reason the body is in fit to reschedule any meeting, for example in our last budget sessions when it was known that a Member was not going to be available we simply rescheduled meetings and we have even had occasions were one or two Members have not showed up for a meeting. You knew well in advance that I had a pending emergency this morning and yet you still saw fit to direct staff to prepare for this morning meeting and I see that you have the Deputy City Attorney, Assistant Chief Administrative Officer, Head Departments and Staff and I am really disturb by your action. President Reyes- Stated to Member Richards that if he was not going to show up for this meeting then he will be excused, the Members voted to have this Special Meeting stated he did not vote to have this Special Meeting, you should have advised your Members who voted with you not to show up then there would have not been a meeting. Memb ;r Richards -Stated that there is no need to play any games, because if there is a desire to have a full body and to have all Members present which we have done in the past then I would not move forward with this charade, so any way I have said what I had to say now I ask to be excused at this time, but to me it is just a high of classlessness to move forward with this.: President Reyes -Stated to Member Richards that he made the motion to hold this meeting and if he had told his body Members who voted with him that he was not going to be able to come, then there would have been no meeting. Member Richards -Stated to the President that if this is what it is about the fact that it was a three to two vote it is only a commend courtesy or dignity to indicate to provide the opportunity to reschedule the meeting at a later time. Member Richards -Also stated to the President that he has canceled meetings and no one has showed up but me and Member Byrd and the meetings have not gone forward no staff has been present because every one knew except us and yet you have rescheduled when you knew we had to move forward but this morning when you are fully aware that I have a pending emergency my mother is in surgery you did not have the commend courtesy and respect to allow this meeting to continue, that is wrong and I do not care what you say I am really angered because this is a personal attack and I do not appreciate it. President Reyes -Stated to Member Richards that this is not a personal attack, you guys made a decision and I respect it. Member Richards -Moved to have a Special Meeting on Thursday October 10,2002 at 9:00 a.m. and to include all items that were listed on Monday's Agenda. Member Byrd -Second the motion. Member Rodriguez -Moved to make an amended motion to have the Special Meeting on Thursday October 10,2002 at 6:00 p.m. President Reyes -Second the motion. Amended Motion Failed: ROLL CALL: AYES: MEMBER RODRIGUEZ, REYES NOES: MEMBER BYRD, PEDROZA, RICHARDS ABSTAIN: NONE ABSENT: NONE Main Motion Approved: ROLL CALL: AYES: MEMBER BYRD, PEDROZA, RICHARDS NOES: MEMBER RODRIGUEZ, REYES ABSTAIN: NONE ABSENT: NONE ADJOURNMENT It was moved by Member Byrd, seconded by Member Rodriguez and carried to adjourn the Special Council Meeting at 9:35 a.m. Arturo Reyes, President Andrea L. Hooper, Secretary LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING OCTOBER 10, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Bullis Road on the above date at 9:15 a.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, City Attorney Montgomery, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #5: PARKING & TRAFFIC ENFORCEMENT WORKSHOP Member Richards -Stated he moved to have exclusive referrals from our Parking Enforcement and Code Enforcement to Raul's Towing on Wright Road and that we direct staff to enter into negotiations with that Redeveloper to foster and expenditure payments under our disposition development agreement and with terms that might be appropriate for the City and we do that affect immediately. Member Byrd -Second the motion. Member Rodriguez -Stated that he would like to continue this item and direct the Chief Administrative Officer to audit these other companies to protect the interest of the community. President Reyes -Second the motion. Member Richards -Stated that the motion goes to Parking Enforcement and Code Enforcement generated referrals subject to the Sheriffs Department. Mayor Pro Tem Pedroza -Questioned Member Richards motion stated that he understands that the motion is the City consider an exclusive Tow Service as to rely on the Sheriffs Department Service. Member Richards -Stated he would just like to have a Towing Service who would generate referrals with the Sheriffs Department on a twenty-four hour basis. Vice President Pedroza~ - Questioned Member Rodriguez motion for the City staff to audit the Tow companies that have not paid the franchise fees. President Reyes -Stated that command sense would only say that before giving an exclusive negotiation agreement without counting how much revenue we are going to bring we should do an audit and really get a good projection or a good picture of how much money we are able to bring the audit then we would find out what kind of percentage we would require from either the current vendor or Raul's Towing, we should study the prospect first. Substitute Motion: ROLL CALL: AYES: MEMBER PEDROZA, RODRIGUEZ, REYES NOES: MEMBER BYRD, RICHARDS ABSTAIN: NONE ABSENT: NONE Substitute motion passed io continue this item. Item #4: PROPOSED FY 2002-2003 BUDGET PLAN Chief Administrative Officer Gonzales -Stated the Budget Process started in early April when staff presented athree-year projection of all funds based upon current expenditure level. The April numbers showed annual expenditures at a higher level than the annual revenues in the General Fund. This results in the reliance on the General Fund reserves to sustain on-going operations. To reverse this trend, the Department .Directors scrutinized their departmental operation and ascertained areas to streamline without critically impacting services as well as to continue to meet our obligations. Base on those meetings the following corrective actions were formulated, which embody the proposed budget. • Decrease operational cost. • Reorganization of Departments for greater efficiency. • Enhancement of ongoing revenues. • One Time Potential Revenue Sources. • Scheduling of payback of general fund liabilities. Chief Administrative Officer Gonzales -Also stated that if the proposed budget is adopted, the City can reduce the spending above revenues sources and will assure a healthy financial environmental for the City. Finance Director Earnest -Explained that she is here to provide the Members with a Summary Budget of the Departments, Lynwood Redevelopment Agency and the Lynwood Information Inc. Also demonstrated to the Members the Proposed Budget Charts. Chief Administrative Officer Gonzales -Stated that this Summary Plan gives the Members and Staff an adjustment now of the expenditures of the City's revenues. Member Richards -Questioned the sales tax revenue of the Walgreen Drug Store projection. Community Development Director Morales -Explained to Members that the revenue is about 250.00 dollars square foot, we are looking at about 1,400.00 dollars annually. Member Richadds -Questioned on the City Attorneys salary believes it is outrageous to have to pay double the amount for two City Attorneys when we have never had the need for two City Attorneys. Chief Administrative Officer Gonzales -Stated we have those long going cases still pending, a number of lawsuits that we are now still dealing with and those certainly have to be taken into consideration. Member Richards -Stated that even if we took a look at the pending cases the amount of projected increase in legal fees far exceeds the amount of in declaims that we have. President Reyes -Stated he disagrees with Member Richards there are still a lot of cases pending and they need to be taken care of, would like to continue with the Proposed Budget presentations. COMMUNITY DEVELOPMENT PROPOSED FY 2002-2003 BUDGET PLAN: Community Development Director Morales -Introduced his departments Proposed Budget Plan explained the changes in positions, titles, and expenditure increases, salary increases and also decreases. President Reyes -Stated he has no problem with the department's changes. Chief Administrative Officer Gonzales -Explained to the Members the department's changes from the chart. Member Richards -Stated he would like to try to make all the positions in the department available to the staff, and would also like for every Department Head to talk to their department staff on the changes that would be made in regards to their position. President Reyes -Stated he believes this discussion is very risky without the Members having approved the changes, but we have not approved the changes how would they be able to go to the employees and tell them that their position will be reclassified or that their position is going to be deleted you are putting the management on line. Member Richards -Stated he would just like for the Department Heads to consult the changes with their staff. Chief Administrative Officer Gonzales -Explained to the Members that the adoption of the Budget does not implement creation of the positions for which we do not yet have a description those descriptions will be done and brought to the Members like we have in the past the numbers that are in the budget reflect a period of time for that implementation to take place for the discussion that are being described during the implementation period to be conducted with the employees to be conducted with the bargaining unit and monetarily that time has been built into this document. It was moved by President Reyes, seconded by Member Rodriguez and carried to approve the Community Development Proposed Budget. Member Richards -Stated he has a substitute motion that the personnel from Human Resources bring back the concerning issues of reclassification of titles and positions and to hear from them first. Member Byrd, second the substitute motion. SUBSTITUTE ROLL CALL: AYES: MEMBER BYRD, RICHARDS NOES: MEMBER PEDROZA, RODRIGUEZ, REYES ABSTAIN: NONE ABSENT: NONE Motion failed. ORIGINAL ROLL CALL: AYES: MEMBER PEDROZA, RODRIGUEZ, REYES NOES: MEMBER BYRD, RICHARDS ABSTAIN: NONE ABSENT: NONE Motion passed Member Richards -Questioned if you have a budget that has twenty positions funded it would probably be two to three months before you fill in the positions so we have half a year positions with eight vacancies why would you adopt a budget for eight vacant positions are we just adding it to the budget why don't we just reduce the budget to reflect the actual amount that has been saved for this half year period. Chief Administrative Officer Gonzales -Explained that the budget has been built upon five months and would transpired with the old expenditures and old budget and the new one would come after the implementation period but at the moment there is no patting of the budget. CITY CLERKS PROPOSED FY 2002-2003 BUDGET PLAN: Secretary Hooper -Introduced her departments Proposed Budget explained the changes in increasing a part time to a full time position, salary increase and expenditures decrease. It was moved by President Reyes, seconded by Member Rodriguez and carried to approve the City Clerks Proposed Budget. ROLL CALL: AYES: MEMBER BYRD, PEDROZA, RICHARDS, RODRIGUEZ, REYES NOES: NONE ABSTAIN: NONE ABSENT: NONE TREASURERS PROPOSED FY 2002-2003 BUDGET PLAN: Treasurer Pygatt -Introduced her departments Proposed Budget she requested to have the Members provide her with a full time Deputy City Treasurer. Finance Director Earnest -Stated. that at the last meeting it was discuss that Finance would share a person with the City Treasurer, we did budget for a half count clerk to be shared at a fifty percent with the City Treasurer her increase in salary reflects the part time employee to be Active Deputy City Treasurer. Member Byrd -Stated that he agrees with providing the City Treasurer with a full time Deputy City Treasurer it would help solve some of the Treasurers issues. Vice President Pedroza -Stated that he also has no problem with providing the City Treasurer with a Deputy City Treasurer, because he does not agree with the President and Chief Administrative Officer always having to sign checks, it would help solve this issue. Member Rodriguez -Stated he would agree with providing a Deputy City Treasurer as long as it is an in house employee working within City Hall, and it should be were she can be located, what she can account to, and what her duties are, and what she is doing even if she is under the City Treasurer. Treasurer Pygatt -Questioned if this Deputy City Treasurer would be a full time employee based upon the salary of $35,939.20 yearly under the supervision of the City Treasurer. It was moved by Member Rodriguez, seconded by Vice President Pedroza and carried to approve a Deputy City Treasurer for the City Treasurer with the conditions that it is an in house employee working within City Hall. ROLL CALL: AYES: MEMBER BYRD, PEDROZA, RICHARDS, RODRIGUEZ, REYES NOES: NONE ABSTAIN: NONE ABSENT: NONE Treasurer Pygatt -Stated that she wanted to make it clear to the Members that the Treasurer should have the privilege of choosing the Deputy City Treasurer. Member Richazds -Stated to the City Treasurer that as long as it states it in the Code then there would be no problem. ADJOURNMENT Having no further discussion, it was moved by Member Rodriguez, seconded by Vice President Pedroza and carried to adjourn the Special Council Meeting at 12:00 p.m. Arturo Reyes, President Andrea L. Hooper, Secretary LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING OCTOBER 15, 2002 The Public Finance Authority of the City of Lynwood met in a Regular Meeting at 11330 Bulbs Road on the above date at 7:32 p.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Chief Administrative Officer Montgomery, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda items-Only) NONE PUBLIC ORALS COMMUNICATIONS Item #5: HOMELAND SECURITY BLOCK GRANT ACT One of the grave effects felt through local governments, due to the September 11`h terrorist attacks on the United States of America, is that .many communities are finding themselves financially distressed in dealing with the war against terrorism. Heightened security alerts by the federal government have caused public safety costs to dramatically increase over the past year. In an effort to provide some federal relief to communities facing these costs, Senator Hillary Clinton has introduced the Homeland Security Block Grant Act (S.1737) that would provide $3 billion to local governments. It was moved by Member Rodriguez, seconded by Vice President Pedroza and carried to receive and file this item and authorize letters of support to be generated for expedient authorization an implementation of the Homeland Security Block Grant Act. ADJOURNMENT Hearing no further discussion, it was moved by Vice President Pedroza, seconded by Member Richards and carried to adjourn the Regular Council Meeting at 7:33 p.m. Arturo Reyes, President Andrea L. Hooper, Secretary LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING OCTO$ER 23, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Bullis Road on the above date at 10:15 a.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, City Attorney Montgomery, Administrative Analyst Adel Rojas and Treasurer Pygatt. Administrative Analyst Adel Rojas announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4: PARKING & TRAFFIC ENFORCEMENT WORKSHOP Chief Administrative Officer Gonzales -Informed the Members that in the meeting of October i, 2002 the Members of the Public Finance Authority directed staff to conduct a workshop relative to parking. In this workshop staff has prepared a presentation to cover the following areas. • Status of the Parking Meter and Collection Program • Status of the Vehicles for Sale Ordinance • Establishment of a Parking Authority or Parking District • Current staffing level for the in-house parking enforcement program President Reyes -Stated that he is still concern with the thirty minute time frame of the Parking Meters would like to have the staff address this issue and extend the Parking Meters to about a two hour time frame. Member Rodriguez -Stated he understands that staff was checking into a revise that would be able to program the Meters, questioned if staff is looking into this and what is the status. Parking Enforcement Manager J.D. Whitaker -Explained to the Members that it is being taken care of we are just in the last process, it would take about a week an a half for the arrival of the equipment that was purchased. Vice President Pedroza -Questioned the President that the Item on the Agenda states that .: there will be a Parking & Traffic Enforcement Workshop presented to staff to the Members, would like to know if the Members are going to receive a presentation. Chief Administrative Officer Gonzales -Explained to the Members that staff did not have enough direction to what presentation to make, believes that at the last meeting the Members ask that the Deputies that are involved with the commercial vehicles be present and they are present, we also have a parking member present, our understanding was is that there would be a discussion on all of the issue, so we do not have a formal presentation to make because we did not have enough direction to do that. Member Rodriguez -Stated that there would be an open discussion, I would like to know how are we are doing on the coin collection of the Parking Meters, and if it is paying for itself would like an update. Pazking Enforcement Manager J.D. Whitaker -Explained to the Members that we are clearly up to date on taking care of the initial investment cost. President Reyes -Questioned on the time frame of the study of the Parking Meters around the Lynwood Park. Parking Enforcement Manager J.D. Whitaker -Explained it is not a long process, the Members directed the staff to hire a Consultant for Parking demand study which incorporates the Lynwood Pazk areas, the survey is just about completed in regazds to how many residents pazk in that area and how many people are not residents of Lynwood. Member Richards -Questioned if staff has had time to look into providing Bullis Road and Imperial Highway with the no parking zone signs during certain hours. Executive Director Gonzales - Explained that the Members did direct staff to hire a consultant to look into this matter, we do not have the information as of yet. Member Richards -Stated that if staff has look into having parking restrictions- for Lynwood residents only. Executive Director Gonzales -Explained to the Members that this is part of the analyst that will be coming back to the Members for the next scheduled meeting. Member Byrd -Complained about the parking in the residential areas, there are to many cars and not enough parking spaces. President Reyes -Explained to staff that there are individuals who have cars for sale and they pazk them in the residential areas, and believes staff needs to take caze of these issues. Vice President Pedroza -Stated that staff needs to enforce different tactics to help solve these issues. Also would like to have staff bring back maps showing were the problem areas are. Executive Director Gonzales -Explained to the Members that once staff has hired the new consultant, they would be providing all this information to the Members on the next scheduled meeting. Director of Environmental Services Wang -Explained to the Members that staff needs to first sent out a request for interviews, and would also like to bring the consultant here so he can listen the Members concerns. Member Richards -Stated that we have done a lot of things here this morning, none of which was called. This special meeting is to discuss precisely this topics pertaining to the Pazking & Traffic Enforcement Workshop, I am very concern with staff not abiding by the Members requests. President Reyes -Stated that maybe the staff should allow the residents to obtain a y; special permit for pazking. Member Richards -Explained that staff also needs to look into the commercial vehicles parked in the residential areas. Parking Enforcement Manager J.D. Whitaker -Explained to the Members that what happens is the drivers of the commercial vehicles know that after business hours there is no Parking Enforcement Officers to enforce any parking issues. Member Byrd -Stated that there are also dump trucks parking in the residential areas. And they are also dumping trash any were they want. Vice President Pedroza -Questioned if staff can provide the areas that are being affected more with cameras. President Reyes -Stated that maybe by providing a fence around the abandon areas could also help solve this problem. Member Byrd -Stated he would like to negotiate something with Cal Trans for their land property. City Attorney Montgomery -Explained to the Members that you can form a parking authority just to administer for the purpose of selling bonds to creative parking facilities then the revenues are restricted to the bonds that the state requires to pay financing. So some jurisdiction adopt the parking authority for the purpose of financing parking facilities other just do it for enforcement and general fund revenue. President Reyes -Stated that if he wanted to build a parking structure near one of the commercial developments could we put parking meters in the parking structure. City Attorney Montgomery -Stated that yes you may put parking meters inside a parking structure. It would also pay off the parking structure itself. ADJOURNMENT Hearing no further discussion, it was moved by Member Rodriguez, seconded by Vice President Pedroza and carried to adjourn the Special Council Meeting at 10:45 a.m. Arturo Reyes, President Adel Rojas, Administrative Analyst Andrea L. Hooper, Secretary MEMORANDUM DATE: November 19, 2002 TO: HONORABLE PRESIDENT AND MEMBERS OF THE LYNWOOD PUBLIC FINANCE AUTHORITY FROM: Faustin Gonzales, Chief Administrative Officer BY: Autra C. Adams, Program Development Coordinator SUBJECT: Housing and Emergency Shelter Trust Fund Act of 2002 PURPOSE: To provide the President & Members of the Lynwood Public Finance Authority with an update on the Housing and Emergency Shelter Trust Fund Act of 2002. BACKGROUND: According to the California Department of Housing, the State of California is currently facing a housing affordability crisis. An enormous amount of data exists to substantiate this; however this is most evident by homeownership rates within the state being below the national average and one of the lowest in the nation, rental rates in the state at a proportionately higher share of potential renters income than in other comparable markets, and new housing units within the state are only being produced at approximately half of the rate of the estimated demand. The effort of fhe various stakeholders within the state to address the housing affordability crisis include voter approval of three general obligation bonds totaling $600 Million dating back to the late 1980's and a budget provision of $500 Million in the State of California 2000-2001 Budget Act. All of these provisions created or added money to programs to be administered by the State Department of Housing and Community Development, the California Housing Finance Agency and the State Treasurers Office. ANALYSIS: The current attempt to provide additional financial assistance for housing programs was prompted by the three state agencies currently administering such programs forecasting that the financing of these programs would be committed and nearly depleted by the end of the 2001-2002 fiscal year. As a result of this, Senator Burton drafted and successfully passed through the Legislature, SB 1227, the Housing and Emergency Shelter Trust Fund Act of 2002. Proposition 46 The Housing and Emergency Shelter Trust Fund Act of 2002 placed $2.1 Billion in general obligation bonds on the ballot in the form of Proposition 46 at the November 5, 2002 statewide election. The passage of this bond measure provides another mechanism of financial assistance via the state, for local governments to meet state mandated housing goals as well as address housing infrastructure needs facing individual communities. Specifically, Proposition 46 allocates the $2.1 Billion as follows: :• Multifamily Housing Programs ($1.11 Billion) -The majority of the funding in this category ($800 Million) is for low-interest loans for affordable housing development. In addition, this category includes programs for supportive housing, preservation, housing trust funds, health and social services, student housing and disabled modifications. w~1•xlll Ff~: - (. t __. .. :• Homeownership Programs ($405 Million) -This includes a variety of direct assistance in the form of grants and low interest loans for down payment and other assistance for low and moderate income first time homebuyers and grants to local governments to fund homebuyer assistance. programs. :• Farmworker Housing ($200 Million) -These funds would be used for a variety of loans and grants for the development of rental and owner occupied housing for farmworkers. Emergency Programs ($195 Million) -These funds would be used for the Emergency Housing and Assistance Program and include grants for the construction of homeless shelters. :• Locat Governments ($105 Million) -This includes approximately $100 Million in grants to local governments for ajobs-housing improvement program and $5 Million for capital expenditures related to local code enforcement departments. :• Housing Loan Insurance ($85 Million) -This would make funding available to the California Housing Loan Insurance Fund to supplement insurance rates for high- risk housing mortgages. This proposition was approved by 57.5% of voters statewide. The City of Lynwood will be eligible to apply for funds under Proposition 46 once implemented by the State of California. RECOMMENDATION: Staff respectfully requests that the President & Members of the Lynwood Public Finance Authority receive and file this item. ATTACHMENT -.J~ News_Updates > Voters Strongly E~ rse Proposition 46 to Meet Housing tti,.~ds Voters Strongly Endorse Proposition 46 to Meet Housing Needs Proposition 46, the Housing and Emergency Shelter Trust Fund Act, received strong voter support on Election Day, garnering 57.5% of the vote statewide. City officials around the state joined with the League's regional representatives, Action for Better Cities (ABC), and housing groups like the California Building Industry Association (CBIA), and Housing California, to secure approval of this vital measure. Proposition 46 will provide funding far shelters for battered women, housing for low-income senior citizens, emergency shelters for homeless families with children, housing with social services for the homeless and mentally ill, repairs and accessibility improvements to apartments for families and handicapped citizens, homeownership assistance for military veterans, and security improvements and repairs to existing emergency shelters. It authorizes the establishment of a new housing trust fund that will be financed by issuing bonds totaling two billion one hundred million dollars ($2,100,000,000). Every city and county is eligible to receive funds as specified in the measure. Commenting on passage of the act, Chris McKenzie, Executive Director of the League, said: "We want to congratulate Senator John Burton who authored Proposition 46, Housing California, the CBIA, city officials, and all of its other partners in helping make this a successful campaign. Clearly the housing needs of Californians will be better met as a result of voter approval of this important measure, but there is still much more to be done. We are ready to get to work." http://www.cacities.org/doc.asp?printable=yes&1D=6433 11/11/( Vole America secretary of State Home r Elections Home r h,__.back * Find Your Palling Place CALIFORNIA c;LnlRnt tucnoN U:1T[ * OFFiC[AL VOTER PROP 46 Housing and Emergency Shelter Trust Fund Act of 2002. INFORMATION GUIDE ' ' cnu For.. u slcrrrwRY OF ST.~TI ~ PROP 46 Official Title and Summary Analysis Arguments and Rebuttals r Text of Proposed Law PROP 47 PROP 48 PROP 49 PROP 50 PROP 51 PROP 52 TEXT OF PROPOSED LAW This law proposed by Senate Bilt 1227 of the 2001-2002 Regular Session (Chapter 26, Statutes of 2002) is submitted to the people in accordance with the provisions of Article XVI of the California Constitution. This proposed law adds sections to the Health and Safety Code; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW SEC. 8. Part 11 (commencing with Section 53500) is added to Division 31 of the Health and Safety Code, to read: PART 11. HOUSING AND EMERGENCY SHELTER TRUST FUND ACT OF 2002 Tuesday November 5 2002 CHAPTER 1. GENERAL PROVISIONS 53500. This part shall be known and maybe cited as the Housing and Emergency Shelter Trust Fund Act of 2002. 53501. As used in this part, the following terms have [he following meanings: (a) "Committee"means the Housing Finance Committee created pursuant Section 53524. (b) "Fund" means the Housing and Emergency Shelter Trust Fund created pursuant to Section 53520. CHAPTER 2. HOUSING AND EMERGENCY SHELTER TRUST FUND 53520. The proceeds of bonds issued and sold pursuant to this part shall be deposited in the Housing and Emergency Shelter Trust Fund, which is hereby created. Money in the fund shall be allocated and utilized in accordance with Chapter 4 (commencing with Section 53533). CHAPTER 3. FISCAL PROVISIONS 53521. Bonds in the total amount of two billion one hundred million dollars ($2,100,000,000) exclusive of refunding bonds, or so much thereof as is determined necessary and feasible by the committee in order to effectuate this part or to conduct an effective sale, maybe issued and sold to provide a fund to be used for carrying out the purposes expressed in this part and to be used to reimburse the Genera! Obligation Bond Expense Revolving Fund pursuant fo Section 16724.5 of the Government Code. The bonds shall, when sold, be and constitute a valid legally and binding obligation of the state, and the full faith and credit of the state is hereby pledged far the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable. 53522. Any bonds issued and sold pursuant to this part maybe refunded by the issuance of refunding bonds in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code. Approval by the electors of the state for the issuance of bonds described in this chapter shall include the approval of the issuance of any bonds issued to refund any bonds originally issued or any previously issued refunding bonds. 53523. (a) The bonds authorized by this part shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State Genera! Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Cade) and al! of [he other provisions of that law apply to the bonds and to this part and are hereby incorporated in this part as though set forth in full in this part. (b) Pursuant [o the State General Obligation Bond Law, the cost of bond issuance shall be paid out of the bond proceeds. These costs shall be shared proportionally by each program funded through this chapter. 53524. (a) Solefy for [he purpose of authorizing the issuance and sale, pursuant to the State Genera! Obligation Bond Law, of the bonds authorized by this part, the Housing Finance Committee is hereby created. For purposes of this part, the Housing Finance Committee is "the comma?tee"as that term is used in the State Genera! Obligation Bond Law. The committee consists of the Controller, the Treasurer, the Director of Finance, the Secretary of the Business, Transportation and Housing Agency, [he Director of Housing and Community Development, and the Executive Director of the California Housing Finance Agency, or their designated representatives. The Treasurer shall serve as the chairperson of the committee. A majority of the committee may act far the committee. (b) Far purposes of the State General Obligation Bond Law, the department is designated the "board" for programs administered by the department, and the agency is the "board" for programs administered by the agenty. 53525. Upon request of the board stating that funds are needed for the purposes of this chapter, the committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to [his part in order to carry out the actions specified in Chapter 4 (commencing with Section 53533) and, if so, the amount of bands to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold a[ any one time. 53526. There shall be collected each year and in the same manner and at [he same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, [he bonds each year and it is the duty of all officers charged by law with any duty in regard to the cohection of the revenue to do and perform each and every act that is necessary fo collect that additionaf sum. 53527. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund, for the purposes of this part, an amount that will equal the total of the following: http://voterguide. ss.ca.gov/propositions2.asp?id=224&sID=4 11 / 11 /0 The sum annually necessary to pay the princip.:_;__':, and interest on, bonds issued and sold pursuant to this part, as the principal and interest become due and payable. (b) The sum necessary to carry out the provisions of Section 53528, appropriated without regard to frscal years. 53528. For the purposes of carrying out this part, the Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not [o exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this part. Any amounts withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund from money received from the sale of bonds for the purpose of carrying out this part. 53529. Notwithstanding any other provision of this part, or of the State General Obligation Bond Law, if the Treasurer selfs bonds pursuant to this part that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income far federal taz purposes under designated conditions, the Treasurer may maintain separate accounts for the bond proceeds invested and the investment earnings on those proceeds, and may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law, or take any other action with respect [o the investment and use of those bond proceeds, as maybe required or desirable under federal law in order to maintain the tax exempt status of those bonds and to obtain any other advantage under federal taw on behalf of the funds of this state. 53530. The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for the purposes of carrying out this part. The amount of the request shag not exceed the amount of unsold bonds that the committee has by resolution authorized to be sold for the purpose of carrying out this part. The board shall execute any documents that are required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the board in accordance with this part. 53531. A/l money deposited in the fund that is derived from premiums and accrued interest on bonds sold shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest. 53532. The Legislature hereby finds and declares that, inasmuch as the proceeds from the safe of bonds authorized by this part are not "proceeds of taxes"as that term is used in Article XIII 8 of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article. CHAPTER 4. ALLOCATION OF HOUSING BOND REVENUES 53533. (a) Money deposited in the fund from the sale of bonds pursuant to this part shall be allocated for expenditure in accordance with the following schedule: (1) Nine hundred ten million dollars ($910,000,000) shall be transferred to the Housing Rehabilitation Loan Fund to be expended for the Multifamily Housing Program authorized by Lhapter 6.7 (commencing with Section 50675) of Part 2, except for the following: (A) Fifty million dollars ($50,000,000) shall be transferred to the Preservation Opportunity Fund and, notwithstanding Section 13340 of the Government Code, is continuously appropriated without regard to fiscal years for the preservation of at-risk housing pursuant to enabling legislation. (B) Twenty million dollars ($20,000,000) shall be used for nonresidential space for supportive services, including, but not limited to, job training, health services, and child care within, or immediately proximate to, projects to be funded under the Multifamily Housing Program. This funding shall be in addition to any applicable per-unit or project loan limits and may be in the form of a gran[. Service providers shall ensure that services are available to project residents on a priority basis over the general public. (C) Twenty-true million dollars ($25,000,000) shall be used for matching grants to local housing trust funds pursuant to enabling legislation. (D) Fifteen million dollars ($15,000,000) shall be used for student housing through the Multifamily Housing Program, subject to the following provisions: (i) The department shat! give first priority for projects on land owned by a University of California or Califomia State University campus. Second priority shall be given to projects located within one mile ofa University of California or California State University campus that is suffering from a severe shortage of housing and limited availability of developable land as determined by the department. Those determinations shall be set forth in the Notice of Funding Availability and steal! not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of the Government Code. (ii) All funds shall be matched on a one-to-one basis from private sources or by the University of California or California State University. For the purposes of this subparagraph, "University of California"includes the Hastings College of the Law. (iii) Occupancy for the units shat! be restricted to students enrolled on a full-time basis in the University of California or California State University. (iv) Income eligibility pursuant to the Multifamily Housing Program shall be established by verification of the combined income of the student and his or her family. (v) Any funds not used for this purpose within 24 months of the date that the funds are made available shall be awarded pursuant [o subdivision (a) for the Downtown Rebound Program as set forth in paragraph (1) of subdivision (c) of Section 50898.2. (E) Any funds not encumbered for the purposes set forth in this paragraph, except subparagraph (D j, within 30 months of availability shat! revert to the Housing Rehabilitation Loan Fund created by Section 50661 for general use in the Multifamily Housing Program. (F) If the enabling legislation for any program specified in this paragraph fails to be enacted into law in the 1001-02 Regular Session of the Legislature, the specified allocation for that program shall be void and the funds shall revert for genera! use in the Multifamily Housing Program. (2) One hundred ninety-five million dollars ($195,000,000) shat! be "ransferred to the Emergency Housing and Assistance Fund to be expended for the Emergency Housing and Assistance Program authorized by Chapter 11.5 (commencing with Section 50800) of Part 2. (3) One hundred ninety-five million dollars ($195,000,000) shall be transferred to the Housing Rehabilitation Loan Fund to be expended for [he Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675] of Part 2, to be used for supportive housing projects for individuals and households moving from emergency shelters or transitional housing or those at risk of homelessness. The criteria for selecting projects should give priority to supportive housing for people with disabilities who would otherwise be at high risk of homelessness where [he applications represent collaboration with programs that meet the needs of the person's disabilities. The department may provide for higher per-unit loan limits as reasonably necessary to provide and maintain rents affordable to those individuals and households. For purposes of this paragraph, "supportive housing" means housing with no limit on length of stay, that is occupied by the target population, as defrned in subdivision (d) of Section 53260, and that is linked to onsite or offsite services that assist the tenant to retain the housing, improve his or her health status, maximize his or her ability to live, and, when possible, work in the community. (4) Two hundred million dollars ($200,000,000) shall be transferred to the loe Serna, Jr. Farm worker Housing Grant Fund [o be expended for farmworker housing programs authorized by Chapter 3.2 (commencing with Section 50517.5) of Part 2, except for the following: (A) Twenty-five million dollars ($25,000,000) steal! be used for projects that serve migratory agricultural workers as defined in subdivision (i) of Section 7602 of Title 25 of the California Code of Regulations. (B) Twenty million dollars ($20,000,000) shat! be used for developments that also provide http://voterguide.ss.ca.gov/propositions2.asp?id=224&sID=4 I 1 / I 1 /0: he.. ervices to the residents. Recipients of these fun loll be required to provide ongoing monirdring of funded developments to ensure compliance with the requirements of the Joe Serna, lr. Farmworker Housing Grant Program. Projects receiving funds through this allocation shall be ineligible for funding through the loe Sema, Jr. Farmworker Housing Grant Program. (C) Any funds not encumbered for the purposes set forth in this paragraph within 30 months of availability shall revert far general use in the Joe Serna, Jr. Farmworker Housing Grant Program. (5) Two hundred five million dollars ($205,000,000) shall be transferred to the Seff-Help Housing Fund. Notwithstanding Section 13340 of the Government Code and Section 50697.1, these funds are hereby continuously appropriated without regard to fiscal years to the department to be expended for the purposes of the CalHome Program authorized by Chapter 6 (commencing with Section 50650) of Part 2, except for the following: (A) Seventy-frve million dollars ($75,000,000) shall be transferred to the Building Equity and Growth in Neighborhoods Fund to be used for the Building Equity and Growth in Neighborhoods (BEGIN) Program pursuant to enabling legislation. (8) Five million dollars ($5,000,000) shall be used to provide grants to cities, counties, cities and counties, and nonprofit organizations to provide grants for lower income tenants with disabilities for the purpose of making exterior modifications to rental housing in order to make that housing accessible [o persons with disabilities. For the purposes of this subparagraph, "exterior modifications" includes modifications that are made to entryways or to common areas of the structure or property. The program provided for under this subparagraph shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of the Government Code. (C) Ten million dollars ($10,000,000) shall be expended for construction management under the California Self-Help Housing Program pursuant to subdivision (b) of Section 50696. (D) Any funds not encumbered for the purposes set forth in this paragraph within 30 months of availability shall revert for general use in the CalHome Program. (E) If the enabling legislation for any program specified in this paragraph fails to be enacted into law in the 2001-02 Regular Session of the Legislature, the specified allocation for that program shall be void and the funds shall revert for general use in the CalHome Program. (6) Five million dollars ($5,000,000) shall be transferred to the Housing Rehabilitation Loan Fund to be expended for capital expenditures in support ofloca! code enforcement and compliance programs. This allocation shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of the Government Code. If the moneys allocated pursuant to this paragraph are not expended within three years after being transferred, the department may, in its discretion, transfer the moneys to the Housing Rehabilitation Loan Fund to be expended for the Multifamily Housing Program. (7) Two hundred ninety million dollars ($290,000,000) shall be transferred to the Self-Help Housing Fund. Notwithstanding Section 50697.1, these funds are hereby continuously appropriated to the agency fo be expended for the purposes of the California Homebuyer's Downpaymenf Assistance Program authorized by Chapter 11 (commencing with Section 51500) of Part 3, except for the following: (A) FlRy million dollars ($50,000,000) shall be transferred to the School Facilities Fee Assistance Fund as provided by subdivision (a) of Section 51453 to be used for the Homebuyer Down Payment Assistance Prog2m of 2002 established by Section 51451.5. (B) Eighty-Five million dollars ($85,000,000) shall be transferred to the California Housing Loan Insurance Fund to be used for purposes of Part 4 (commencing with Section 51600). (C) Twelve million frve hundred thousand dollars ($12,500,000) shall be reserved for downpayment assistance to !ow-income first-time homebuyers who, as documented to the agency by a nonprofit organrcation certified and funded to provide homeownership counseling by a federally funded national nonprofit corporation, is purchasing a residence in a community revitalization area targeted by the nonprofit organization and who has received homeownership counseling from the nonprofit organization. (D) Twenty-five million dollars ($25,000,000) shall be used for downpayment assistance pursuant to Section 51505. After 18 months of availability, if the agency determines that the funds set aside pursuant to this section will not be utilized for purposes of Section 51505, these funds shall be available for the genera! use of the agency for the purposes of the Califomia Homebuyer's Down Payment Assistance Program, but may also continue to be available for the purposes of Section 51505. (E) Funds not utilized for the purposes set forth in subparagraphs (B) and (C) within 30 months shall revert for general use in [he California Homebuyer's Down Payment Assistance Program. (8) One hundred million dollars ($100,000,000) shall be transferred to the Jobs Housing Improvement Account to be expended as capital grants to local governments for increasing housing pursuant to enabling legislation. If the enabling legislation fails to become law in the 2001-02 Regular Session of the Legislature, the specified allocation for this program shall be void and the funds shall revert far genera! use in the Multifamily Housing Program as specified in paragraph (1) of subdivision (a). (b) No portion of the money allocated pursuant to this section may be expended for project operating casts, except that this section does not preclude expenditures for operating costs from reserves required to be maintained by or on behalf of the project sponsor. (c) The Legislature may, from time to time, amend the provisions of law related to programs to which funds are, or have been, allocated pursuant to this section for the purpose of improving the efficiency and effectiveness of the program, or for the purpose of furthering the goals of the program. (d) The Bureau of State Audits shall conduct periodic audits to ensure that bond proceeds are awarded in a timely fashion and in a manner consistent with the requirements of this part, and that awardees of band proceeds are using funds in compliance with applicable provisions of this part. y ~~ '~., ;~+~ *4`~~ `Y + ,. r ; - _ >. ,. ~PY~9ht ~20d2 . http://voterguide.ss.ca.gov/propositions2.asp?id=224&sID=4 11 / 11 This Agenda contains a brief genera! description of each item to be considered. Copies of the 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. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603- 0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. n AGENDA ITEMS ON FILE FOR CONSIDERATION '~-~~~-- I'°f~'~ AT THE REGULAR MEETING OF ~ THE LYNWOOD PUBLIC FINANCE AUTHORITY CITY OF LYNWOOI~ TO BE HELD ON NOVEMBER 5, 2002 CITY CLERKS OFFICE 6:00 P.M. QCT ~ t 2002 COUNCIL CHAMBERS Pit 11330 BULLIS ROAD, LYNWOOD, CA 90262 7 5~~~~uw~u~i12~314,5,6 ~ ARTURO REYES PRESIDENT ~~ FERNANDO PEOZA LOUIS BYRD VICE PRESIDENT MEMBER RAMON RODRlGUEZ MEMBER PAUL H. RICHARDS, II MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part ill, Paragraph 5.) 4. MINUTES OF PREVIOUS MEETING Special Meeting, October 1,2002 Regular Meeting, October 1,2002 Special Meeting, October 7,2002 Special Meeting, October 9,2002 TREASURER'S QUARTERLY INVESTMENT REPORT Comments: The purpose of this item is to have the Lynwood Public Finance Authority review the Treasurers Quarterly Investment Report as required by recently enacted State Statues. Recommendations: The City Treasurer respectfully recommends that the Lynwood Public Finance Authority receive and file the attached Quarterly Investment Report for the quarter ending June 30, 2002. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON NOVEMBER 19, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING OCTOBER 1, 2002 The Public Finance Authority of the City of Lynwood met in a Regulaz Meeting at 11330 Bullis Road on the above date at 7:20 p.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Chief Administrative Officer Montgomery, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS Item #4: MINUTES OF PREVIOUS MEETINGS It was moved by Member Richards, seconded by Member Byrd and carried to approve the following minutes: Regular Meeting, September 3, 2002 Special Meeting, September 4, 2002 Regular Meeting, September 17, 2002 Item #5: PUBLIC WORKS PROJECTS -RUBBERIZED ASPHALT CONCRETE GRANTS The City of Lynwood finances public works projects and other capital improvements through a variety of sources annually including the general fund and various intergovernmental transfers from the Federal and State Government. SB 1346 (Kuehl) authorizes the CIWM$ to create a grant program through June 30, 2002 to local agencies including cities, counties, and special districts for funding of public works projects that utilize rubberized asphalt concrete. SB 1346 was approved by Governor Gray Davis on September 17, 2002 and will go into effect on January 1, 2003. It was moved by Member Rodriguez, seconded by Vice President Pedroza and carried to receive and file this information. It was moved by Member Richards, seconded by Mayor Pro Tem Pedroza and carried to direct staff for the Budget Workshop on Monday October 10, 2002 to include all reports on the Revenues for the Parking Meters tickets through Parking Enforcement. ADJOURNMENT It was moved by Member Rodriguez, seconded by Vice President Pedroza and carried to adjourn the Regular Council Meeting at 7:25 p.m. Arturo Reyes, President Andrea L. Hooper, Qity Clerlr- AC}EIJl)A ITYffi,a ~I t LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING OCTOBER 7, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Bulbs Road on the above date at 9:40 a.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Chief Administrative Officer Montgomery, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS Item #5: PARKING & TRAFFIC ENFORCEMENT WORKSHOP Chief Administrative Officer -Stated at the meeting of October 1,2002 Members of the Lynwood Public Finance Authority directed staff to conduct a workshop relative to parking. City Manager Assistant Hempe -Introduce Parking Enforcement Manager J.D. Whitaker who would be giving the presentation to the Members. Parking Enforcement Manager Whitaker - Presented the Members with a brief presentation on the Parking & Traffic Enforcement Workshop which covered areas: 1. Status of the Parking Meter and Collection Program 2. Status of the Vehicles for Saie Ordinance 3. Establishment of a Parking Authority or Parking District 4. Current staffing level for the in-house parking enforcement program Member Rodriguez -Stated he would like to extend the Parking Meters time frame to a limit of about two hours instead of only thirty minutes, that is just not enough time. Vice President Pedroza -Would also like to reconsider giving more time on the Parking Meters, there are just to many complaints about the thirty-minute time frame. Member Richards -Stated he agrees with the Members with extending the time frame on the Parking Meters believes it is not fair for the residents to have to come out every thirty minutes to put a quarter in the meter. President Reyes -Directed staff to change the time frame of the Parking Meters to two hours instead of thirty minutes. Parking Enforcement Manager J.D. Whitaker -Explained to the Members that the Parking Meters around St. Francis Hospital Zone have a time frame of two hours and the Long Beach Zone is a time frame of only thirty minutes. President Reyes -Stated the City needs to enforce Long Beach Boulevard especially on weekends there is to much cruising going on and that is creating problems for the City, also stated that there is to many vehicles for sale especially on weekends. Chief Administrative Officer Assistance Hempe -Questioned if the Members would like to bring back for further discussion. President Reyes -Stated that on Long Beach Boulevazd he would like to extend the Parking Meters time frame to two hours. Member Byrd -Stated he would like to have a meeting with all the owners of all the businesses here in Lynwood to come to an understanding pertaining to the Parking Meters. Member Rodriguez -Stated that staff should notify all the business owners about the extending time frame of the Parking Meters. Vice President Pedroza -Would like to request a temporary pass permit for the voluntary nurses of St. Francis Hospital so they would not have to pay Parking Meters. Also stated he would like to have a meeting with the Lynwood Unified School District in regards to the school traffic it is out of hand. Member Richards -Moved to have staff bring back a specific plan report on all the issues on the first meeting of November and also a report on the Parking Meters. Member Byrd -Second the motion. President Reyes -Stated motion passed by general consent. Member Richards -Moved that we conduct and bring back a study by no later than the first scheduled Regular Meeting in November concerning the placement of Meters along the balance of Long Beach Boulevard that it is not including in the current zone and extending to the South of the City border. Member Byrd -Second the motion. President Reyes -Stated motion passed by general consent. Member Richards - I would also move then that we conduct a study concerning the Meters on Long Beach Boulevard southern most lot on the Lynwood Park area near Hosler and the Youth center. Member Byrd -Second the motion. President Reyes -Stated by general consent. Member Richards -Questioned the towing services, who do we call to come and remove the vehicles, who is under the Sheriffs department also. Parking Enforcement Officer J.D. Whitaker -Explained to the Members that the Towing Company they call is V~,'ins Tow because of their timely matter and service, and they are also on the list with the Sheriffs department. Member Richards -Moved that staff bring back not later than the first scheduled Regular Meeting in November one a draft revise Ordinance were a City can take advantage of a larger franchise fee and as well as taken over the referral authority in connection with the Sheriffs Station. The second option is for the City itself look into operating exclusively or to self-contract with the parties. Member Byrd -Second the motion. ROLL CALL: AYES: MEMBER BYRD, PEDROZA, RICHARDS, RODRIGUEZ NOES: MEMBER REYES ABSTAIN: NONE ABSENT: NONE Member Richards -Moved the agenda Item of our last Regular Meeting concerning towing operation it was brought up that we should consider Raul's Towing entering into the rotation we should give every business an opportunity we should allow Raul's Tow to enter the City's rotation. I direct staff to negotiate with Raul's Towing Company to enter the City's rotation service. Member Byrd -Second the motion. ROLL CALL: AYES: MEMBER BYRD, RICHARDS NOES: MEMBER RODRIGUEZ, REYES ABSTAIN: MEMBER PEDROZA ABSENT: NONE Member Richards - Moved an alternative motion that we direct staff to investigate the feasibility with Raul's services and bring back the advantages and disadvantages. Member Byrd -Second the motion: ROLL CALL: AYES: MEMBER BYRD, RICHARDS NOES: MEMBER RODRIGUEZ, REYES ABSTAIN: MEMBER PEDROZA ABSENT: NONE Secretary Hooper -Announced that she has all the information pertaining to the Towing services in her office. Member Richards -Questioned on the Operating Scales if the City provides any or if the Sheriffs department have any Operating Scales for over weight trucks etc. Lieutenant Tellez -Stated that the Sheriffs department does not have any personnel scales but there are three public scales within the area for over weight truck or vehicles. Member Richards -Moved that by our next Regular scheduled Meeting that a report be generated by staff to prepare to respond to the issues of a City Operated Scale or one operated with the connection of the State of California for over weight vehicles and to generate what the fee or cost for an Operating Scale would be. Vice President Pedroza -Second the motion ROLL CALL: AYES: MEMBER BYRD, PEDROZA, RICHARDS, RODRIGUEZ, REYES NOES: NONE ABSTAIN: NONE ABSENT: NONE ADJOURNMENT It was moved by Member Rodriguez, seconded by Member Byrd and carried to adjourn the Special Council Meeting at 12:20 p.m. Arturo Reyes, President Andrea L. Hooper, Secretary LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING OCTOBER 9, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Bullis Road on the above date at 9:15 a.m. President Reyes presiding. Members Byrd, Pedroza, Richazds, Rodriguez and Reyes answered the joint roll call for all agencies. Also present was Secretary Hooper. Chief Administrative Officer Gonzales was absent. City Attorney Montgomery was absent. Treasurer Pygatt was absent. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE For the record these minutes are verbatim from the recorded tape Member Richards -Stated to the President that he had called yesterday and advised the Chief Administrative Officer that he has a pending emergency today and it has been our practice when a Member has an emergency or over this passed year if there has been any reason the body is in fit to reschedule any meeting, for example in our last budget sessions when it was known that a Member was not going to be available we simply rescheduled meetings and we have even had occasions were one or two Members have not showed up for a meeting. You knew well in advance that I had a pending emergency this morning and yet you still saw fit to direct staff to prepare for this morning meeting and I see that you have the Deputy City Attorney, Assistant Chief Administrative Officer, Head Departments and Staff and I am really disturb by your action. President Reyes- Stated to Member Richards that if he was not going to show up for this meeting then he will be excused, the Members voted to have this Special Meeting stated he did not vote to have this Special Meeting, you should have advised your Members who voted with you not to show up then there would have not been a meeting. Member Richards -Stated that there is no need to play any games, because if there is a desire to have a full body and to have all Members present which we have done in the past then I would not move forward with this charade, so any way I have said what I had to say now I ask to be excused at this time, but to me it is just a high of classlessness to move forward with this: President Reyes -Stated to Member .Richards that he made the motion to hold this meeting and if he had told his body Members who voted with him that he was not going to be able to come, then there would have been no meeting. Member Richards -Stated to the President that if this is what it is about the fact that it was a three to two vote it is only a commend courtesy or dignity to indicate to provide the opportunity to reschedule the meeting at a later time. Member Richards -Also stated to the President that he has canceled meetings and no one has showed up but me and Member Byrd and the meetings have not gone forward no staff has been present because every one knew except us and yet you have rescheduled when you knew we had to move forwazd but this morning when you are fully aware that I have a pending emergency my mother is in surgery you did not have the commend courtesy and respect to allow this meeting to continue, that is wrong and I do not care what you say I am really angered because this is a personal attack and I do not appreciate it. President Reyes -Stated to Member Richards that this is not a personal attack, you guys made a decision and I respect it. Member Richards -Moved to have a Special Meeting on Thursday October 10,2002 at 9:00 a.m. and to include all items that were listed on Monday's Agenda. Member Byrd -Second the motion. Member Rodriguez -Moved to make an amended motion to have the Special Meeting on Thursday October 10,2002 at 6:00 p.m. President Reyes -Second the motion. Amended Motion Failed: ROLL CALL: AYES: MEMBER RODRIGUEZ, REYES NOES: MEMBER BYRD, PEDROZA, RICHARDS ABSTAIN: NONE ABSENT: NONE Main Motion Approved: ROLL CALL: AYES: MEMBER BYRD, PEDROZA, RICHARDS NOES: MEMBER RODRIGUEZ, REYES ABSTAIN: NONE ABSENT: NONE ADJOURNMENT It was moved by Member Byrd, seconded by Member Rodriguez and carried to adjourn the Special Council Meeting at 9:35 a.m. Arturo Reyes, President Andrea L. Hooper, Secretary DATE: November 5, 2002 TO: THE HONORABLE PRESIDENT~D MEMBERS OF THE AUTHORITY FROM: Iris Pygatt, City Treasurer :.<< SUBJECT: TREASURER'S QUARTERLY INVESTMENT REPORT PURPOSE: The purpose of this item is to have the Lynwood Public Finance Authority review the Treasurer's Quarterly Investment Report as required by recently enacted State Statues. BACKGROUND: In response to the crisis caused by the Orange County investment pool, the State Legislature in 1995 enacted SB564 and SB866. These laws were enacted as State Statutes to impose certain mandates regarding investment with public funds. The statutes have imposed the following mandates: 1. Annual adoption of an Investment Policy that incorporates changes mandated by the State. 2. Quarterly Investment Reports presented to the Legislative Body or Board Members. 3. Restriction on the use of certain investment instruments. The attached Treasurer's Report have been prepared to provide the following information: 1. Types of investments (including principal, market value rates, and maturity dates). 2. List of various bank accounts with banking institutions. 3. Statement informing each Agency (City, LRA, LPFA and LII) that is expected to have sufficient liquid funds to meet its pooled expenditure requirements for the next six (6) months. 4. Statement informing the Lynwood Public Finance Authority that the investment portfolio conforms with the adopted investment policy. RECOMMENDATION: ;The City Treasurer respectfully recommends that the Lynwood Public Finance Authority receive and file the attached quarterly Investment Report for the quarter ending June 30, 2002. AGENDA I~ i TREASURER' S QUARTERLY INVESTMENT REPORT JUNE 30, 2002 CITY OF LYNWOOD PORTFOLIO MASTER SUMMARY JUNE 30, 2002 AVERAGE --- YTM --- BOOK PERCENTAGE (%) DAYS TO 360 .365 INVESTMENTS VALUE PORTFOLIO MATURITY EQUIVALENT MANAGED POOL INVESTMENT $ 16,872,563.66 81.29 1 1 1 Certificate of Deposit $ 3,882,965.67. 18.71 N/A N/A N/A _ TOTAL INVESTMENTS AND AVERAGES 20,755,529.33 100% CASH Passbook/Checking - No Yield Totals (not included in yield calculations) TOTAL INVESTMENTS 20,755,529.33 1 certify that this report accurately reflects ali pooled investment policy statements IRIS PYGATT adopted by the City Council on August 15, 1995. A copy of this policy is available at the office of the City Clerk. The CITY TREASURER Investment Program herein shown provides sufficient cash flow liquidy to meet 3 months estimated expenditures. The pricing of the securities are done by Union Bank of California, US Bank, and Interactive Data Services. CITY OF LYNWOOD INVESTMENT PORTFOLIO DETAILS SUMMARY JUNE 30, 2001 INVESTMENT BOOK FACE MARKET STATED --- YTM --- MATURITY DAYS ISSUER VALUE VALUE VALUE RATE 350 365 DATE TO MAT. MANAGE POOL INVESTMENTS LAIF GEN'L CITY _ _ $15,317,343.70 LAIF LRA $1,436,145.57 U.S. HIGHMARK $119,074.39 $15,317,343.70 $1,436,145.57 $119,074.39 $15,317,343.70 $1,436,145.57 $119,074.39 2.96°~ 2.96% 1.71% TOTAL $16,872,563.66 Certificate of Deposit US BANK Certificate of Deposit 3,877,926.05 $16,872,563.66 3, 877, 926.05 $16,872,563.66 3,877,926.05 5,039.62 TOTAL 3,877,926.05 3,882,965.67 ,. CITY OF LYNWOOD RECEIVED INTEREST PAYMENT BY ISSUER JUNE 30, 2002 CURRENT STATED DATE AMOUNT INVESTMENT ISSUER BALANCE RATE RECD RECD LAIF-CITY $15,317,343.70 2.96% 1 /15/2002 $93,011.14 LAIF - LRA $1,436,145.57 2.96°h 1/15/2002 $5,466.67 U.S. HIGHMARK $119,074.39 1.71% 3/1/2002 $455.47 TOTAL $16,872,563.66 $98,933.28 CITY OF LYNWOOD RECEIVED INTEREST PAYMENT BY ISSUER JUNE 30, 2002 INVESTMENT CURRENT MATURITY STATED INTEREST ISSUER BALANCE DATE RATE RECEIVED US Bank CD CLOSED CLOSED CLOSED $5,039.62 US Bank CD 3,877,926.05 NIA 1.340% $14,974.09 TOTAL 3,877,926.05 $20,013.71 CITY OF LYNWOOD RECEIVED INTEREST PAYMENT BY ISSUER. JUNE 30, 2002 FACE AVERAGE MATURITY STATED INVESTMENTS VALUE BOOK VALUE DATE RATE INTEREST PASSBOOKS/CHECKING CITY-US BANK $1,936.34 $1,936.34 0.77% ~ $4.87 CITY - US BANK $280,952.35 $280,952.35 1.24°~ $3,461.46 HCDA CITY - US BANK $188,156.78 $188,156.78 1.80°k $84.43 HOME PROGRAM CITY - US BANK $48,004.29 $48,004.29 1.24% $149.97 LYNWOOD TTEES. HUD LRA - US BANK $58,294.75 $58,294.75 1.24°k $181.91 ALAMEDA TAX INC. LRA - US BANK $2,988.30 $2,988.30 1.25% $6.02 LYN. TR. CENTER UNF. WORKERS ACC. LRA - BANK OF AMERICA $136,700.96 $136,700.96 0.50% $172.56 LII - US BANK $148,644.26 $148,644.26 0.18% $463.86 TOTAL $865,678.03 $865,678.03 $4,525.08 CITY OF LYNWOOD INVESMENT PORTFOLIO DETAILS JUNE 30, 2002 CHECKING ACCOUNTS CITY ACCOUNTS 1. GENERAL ACCOUNT 2. PAYROLL ACCOUNT 3. PETTY CASH ACCOUNT 4. WORKERS COMPENSATION 5. CITY OF LYNWOOD FLEXIBLE SPENDING ACCOUNT 6. ARNORLD LITKE FOUNDATION 7. LRA - ALAMEDA PROJECT 8. LRA - AREA A TAX INCREMENT 9. REDEVELOPMENT FUND 10. LII - CHECKING ACCOUNT CITY OF LYNWOOD FISCAL AGENT INVESTMENTS JUNE 30, 2002 TRUSTEE ACCOUNTS PURCHASE DATE PAR VALUE MARKET VALUE Tax Allocation Bonds, Series 1999, Alameda Oct-99 $1,310,000.00 $108,476.52 U S Bank Coporate Trust Services Lynwood Public Financing Authority May-93 $8,650,000.00 $1,484,124.49 Revenue Bonds, 1993 Series A US Bank Coporate Trust Services Lynwood Public Financing Authority Oct-95 $4,500,000.00 $2,315,562.22 Water System Improvement Project, Series 1995 U S Bank Corporate Trust Services Lynwood Public Financing Authority Oct-99 $10,235,000.00 $801,593.37 Tax Allocation Bonds, Series 1999,Series A U S Bank Corporate Trust Services Lynwood Public Financing Authority Oct-99 $3,425,000.00 $266,996.93 Tax Allocation Bands, Series B ~. U S Bank Corporate Trust Services Lynwood Public Financing Authority Oct-99 $5,850,000.00 $5,070,908.61 Water System Improvement Project, Series 1999 US Bank Coporate Trust Services PURCHASE PAR MARKET TRUSTEE ACCOUNTS DATE VALUE VALUE Lynwood Public Financing Authority Oct-99 $376,000.00 $1,493,649.05 Lease Revenue Bonds, Series 1999 US Bank Corporate Trust Services Lynwood Public Financing Authority Sep-96 $1,500,000.00 $672,067.26 Revenue Bonds -Civic Project. Series 1996 US Bank Corporate Trust Services This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on frle in the Office of the City Clerk and are available for public inspection. A person who has a question concerning any.of the agenda items may cal! the Cify Manager of (310) 603- 0220, ext. 200. Procedures forAddressinp the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. ,~ ~~~ :AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE SPECIAL MEETING OF CITY OF LYNW000 THE LYNWOOD PUBLIC FINANCE AUTHORITY CITY CLERKS OFFICE TO BE HELD ON JUNE 27, 2002 10:00 A.M. JUN 2 5 20~). COUNCIL CHAMBERS ~ 7 18191~Iv1~~1~ 11330 Bullis Road, Lynwood, CA 90262 ~~ ~ ~~, v ~ "'''' -t «~~~ ARTURO REYES PRESIDENT » j4 , FERNANDO PEDROZA VICE PRESIDENT PAUL H. RICHARDS, II MEMBER LOUIS BYRD MEMBER RAMON RODRIGUEZ MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) 4. L.O.C.A.L. {LEAVE OUR COMMUNITY ASSETS LOCAL) EFFORTS RELATIVE TO THE STATE BUDGET CRISIS} Comments: Wi#h the State of California facing a severe budget crisis, many cities are concerned that the State will seek solutions to solve their crisis by raiding local government revenues to balance the budget. It into this end that municipal organizations such as the League of California Cities joined forces with LOCAL coalition to urge the Governor and the legislature to avoid budget cuts that jeopardize vital local services. Recommendation: Staff respectfully requests that the President and Members of the Lynwood Public Finance Authority receive and file this information. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON JULY 2, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. MEMORANDUM DATE: June 27, 2002 TO: Honorable President and Members of the Lynwood Public Finance Authority FROM: Faustin Gonzales, Chief Administrative Officer SUBJECT: L.O.C.A.L. (LEAVE OUR COMNfUNITY ASSETS LOCAL) EFFORTS RELATIVE TO THE STATE BUDGET CRISIS PURPOSE: To have the President and Members of the Lynwood Public Finance Authority receive and file this item. BACKGROUND: The State budget crisis brought about potential impacts on city revenues. Last fiscal year, cities were concerned that the state will divert city revenues to balance the budget. The Lynwood Public Finance Authority adopted a resolution pledging the opposition to Governor Davis' budget revision cuts to local government revenues as these proposed cuts negatively affect many civic amenities such as public safety services, recreation and parks programs and street and road improvement. With an estimated shortfall of about 14 billion dollars in the state budget at the time, Governor Davis took measures to include a proposed 15% cut and a job freeze as a solution to close the gap. The governor has also used the September 11~' terrorist attack as the cause of much of the economic downturn and consequent revenue shrinkage. The most vulnerable city revenue source was the state general fund "backfill" for the Vehicle License Fee (VLF) reduction made in 1999. That backfill figure is now $3.7 billion annually for cities and counties ($1 billion for cities alone). Though the Governor pledged to protect the VLF backfill, some legislators still spoke of suspension or elimination of the backf 11 as one means of reducing the state's deficit. For cities, this evokes memories of the early 1990s when the state increased its share of local property taxes to meet state obligations to fund schools. City officials were concerned that local property taxes themselves may be at risk as the administration looked at all options to balance the budget and meet the state's statutory requirement to fund schools. ANALYSIS Facing an economic downturn and declining revenues, the Governor has significantly revised his January budget to reflect how administration proposes to address the $23.6 billion shortfall. The May Revision included: :• About $2.4 billion in additional budget reductions, including significant reductions in Medi-Cal, social services, payments to local governments and juvenile justice grant programs • About $3.7 billion in new tax increases and accelerations, including a one year increase in the vehicle license fee (VLF), a two year suspension of net operating loss (NOL) deductions for businesses and an increase in cigarette taxes 4 • An additional $2.1 billion from the securitization of future tobacco settlement receipts (from $2.4 billion in the January proposal to $4.5 billion in the May Revision) • About $2.9 billion from a variety of other actions, including increases in loans from transportation funds and other funding redirections. The May Revised proposal was an attempt to provide a balanced approach of both cuts and revenue increases to fill a revenue shortfall that amounts to almost 30% of what has been projected General Fund revenues. In its efforts to urge the Governor and the legislature to avoid budget cuts that will jeopardize vital local services, the League of California Cities, one of the municipal organizations affiliated with the City of Lynwood, joined forces with a growing grassroot network called LOCAL (Leave Our Community Assets Local). This coalition of local and statewide organizations and individuals is dedicated to protecting local services by protecting local revenues from being further reduced to solve state budget problems. On May 15 and 16, the LOCAL coalition spearheaded a big rally to warn legislators of the direct link between state budget decisions and local public safety services. Abroad array of organizations representing local police, fire, business, labor, seniors and other groups rallied in Sacramento and 600 grassroots advocates were in attendance. This lobbying effort of the LOCAL Coalition stressed the point that budget decisions made in Sacramento really matter to people in communities across the state. On June 13, LOCAL Coalition held awell-attended conference at the LA-USC Hospital to deliver a strong message on the importance of not balancing state budget on the "backs of local government." Los Angeles City and County officials called upon the state legislature and Governor Gray Davis to protect funding for local health, public safety and critical local services. The LOCAL Coalition believes the governor and Legislature can and should balance the budget without jeopardizing funding for our vital local services. It has proposed and continues to offer various measures that can be used to help reduce the state's deficit, without eroding local revenues. With the assistance of the California State Association of Counties' State Budget Task Force which developed the recommendations, LOCAL coalition presents the following proposals accepted by the State of California Administration • Eliminate the capital outlay-budget in favor of additional debt financing -with today's interest rate environment, tax exempt funding is available at very low rates, thus pay as you go funding of capital projects is not optimal. This option, will save the state an estimated $586 million as put forward by the Governor • Secure future tobacco master settlement receipts -the state may realize $1.5 million to $6 million in cash by securing MSA revenues, depending on the structure of the bond. This option, as proposed by the Governor, will result in $4.5 billion in cash to the state. • Restructuring of state bonded debt and converting fixed rate debt to lower cost variable rate debt -the state could restructure its declining debt service repayment pattern to a more level payment, creating significant budget relief over the next few years. Also short term, variable rate debt has consistently cost less than long term fixed rate debt. This will result in an estimated $2.2 billion in savings over two years. Create astate-county partnership to develop a joint strategy regarding federal issues -including reducing federal restrictions, leveraging additional federal funds, advocating for additional federal funds, etc. The governor has proposed seeking additional funds from the federal governments in a number of areas with an estimate of $1.1 billion to the state. It should be noted that with the inevitable presence of state budget crisis, local government cannot escape without cuts in the revised budget. Cities would lose in direct cuts of library funding, a $38 million cut in booking fee reimbursements and from a new $75 million annual property tax shift from community redevelopment agencies to fund the state's obligation to support schools. This represents a 13% increase over the $600 million in city property taxes the state will take in FY 2002-03 and will affect the ability of redevelopment agencies to construct affordable housing. More prominent, small cities in California such as the City of Lynwood will be greatly impacted on all counts - quality of life program and quality of housing available to Lynwood residents with low to moderate income families. The effects of the proposed state budget cuts and cost shifts will precipitate in reduced level of health, trauma and emergency services being provided, fiuther reductions in medical and health workers and reduced access to care for all Los Angeles area residents. The young, sick, elderly and working poor will be among the hardest hit if the legislature goes through with its cuts to health and social services, youth protection and crime prevention, libraries and other critical local services. RECOMMENDATION: Staff respectfully requests that the President and Members of the Lynwood Public Finance authority receive and file this item. This Agenda confains a brief genera! description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on fhe Agenda are on file in fhe Offrce of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager of (310) 603- 0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE REGULAR MEETING OF ~ THE LYNWOOD PUBLIC FINANCE AUTHOR! Y 'CITY OF LYIVW000 I TO BE HELD ON JUNE 18, 2002 CITY CLERY,S OFFlCE 6:00 P.M. COUNCIL CHAMBERS JUN 13 2002 11330 BULLIS ROAD, LYNWOOD, CA 90262 ~QAnn~~lc~~rJ~ ARTURO REYES ~1 `~~~C~~~~'``_'^_ _ ~C~ PRESIDENT V ' f ' "_ ' 1 ~~ FERNANDO PEDROZA ~ LOUIS BYRD VICE PRESIDENT MEMBER PAUL H. RICHARDS, II MEMBER RAMON RODRIGUEZ MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS 1F AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. {The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) 4. MINUTES OF PREVIOUS MEETING Regular Meeting, May 21, 2002 Special Meeting, May 22, 2002 Special Meeting, May 29, 2002 5. STATE OF CALIFORNIA 2002-2003 BUDGET UPDATE Comments: Each year the Governor submits his budget to the Legislature by January 10, followed by the Chair of the Senate and Assembly Budget Committees introducing a budget bill containing the appropriations necessary to finance the programs proposed in the Governor's Budget. The 2002-2003 State Budget is currently in the Joint Budget Conference Committee. The Conference Committee is composed of two Democrats in the Assembly, two Democrats in the Senate, one Republican in the Assembly and one Republican in the Senate. Items currently being debated that could affect the City of Lynwood are the requirement of Redevelopment Agencies to make contributions to ERAF, a reduction in the COPS program, and a reduction or elimination of the High Technology taw Enforcement Grant. Recommendation: Staff respectfully requests that the Board of Directors of the Lynwood Public Finance Authority receive and file this information. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON JULY 2, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 SULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING MAY 21, 2002 The Public Finance Authority of the City of Lynwood met in a Regular Meeting at 11330 Bullis Road on the above date at 6:49 p.m. President Reyes presiding. Members Byrd, Richards, Rodriguez, and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Interim City Attorney Montgomery, City Treasurer Pygatt, and Administrative Analyst II Adel Rojas. Administrative Analyst II Adel Rojas announced that the agenda had been posted in accordance with the Brown Act. Member Pedroza arrived at 6:15 p.m. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4: MINUTES OF PREVIOUS MEETING NONE Item #5: RECEIVE AND FILE A REPORT ON AB 1865 ERAF AND AB 2209 LOCAL GOVERNMENT PENSLON FUNDS Based on a report prepared by the analyst to the Assembly Committee on Appropriations, to balance the 1992-93 state budgets, the state shifted about $4.5 billion (in current dollazs) in property tax revenues from cities, counties and special districts to the ERAF established in each county for the benefit of K-12 school districts. The passage of AB 1865 would phase in an ERAF cap over four years, contingent upon a measure of the adequacy of the General Fund resources. AB2209 allows local agencies to impose a higher property tax rate to continue making payments in support of pension programs approved by the voters before July 1, 1978. It was moved by Vice President Pedroza, seconded by Member Rodriguez and carried to receive and file this item. ADJOURNMENT Having no further discussion, it was moved by Member Richards seconded. by Member Byrd and carried to adjourn the meeting at 6:50 p.m. Arturo Reyes, Mayor AGENDA ITEIK Andrea L. Hooper, City Clerk Adel Rojas, Administrative Analyst II LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING MAY 22, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Bullis Road on the above date at 8:13 p.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez, and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Interim City Attorney Montgomery, Treasurer Pygatt, and Administrative Analyst II Adel Rojas. Administrative Analyst I! Adel Rojas announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC-ORALS COMMUNICATIONS NONE Item #4 SUPPLEMENTAL LOCAL FIREFIGHTING FUND The provision of public safety services, including police and fire protection, is one of the highest expenditures of local government agencies out of the general fund. Typically these funds are expended with minimal to no cost recovery. SB 1688 establishes a Supplemental Firefighting Services Fund in each city, county, or district which provides front line fire services including fire suppression, emergency medical, hazardous materials, and search and rescue services provided by local jurisdictions. This legislation requires the Controller, to allocate at least $100,000 to each qualifying entity. It was moved by Vice President Pedroza, seconded by Member Rodriguez and carried to receive and file this item. ADJOURNMENT Having no further discussion, it was moved by Vice President Pedroza, seconded by Member Byrd and carried to adjourn at 8:14 p.m. Arturo Reyes, Mayor Andrea L. Hooper, City Clerk Adel Rojas, Administrative Analyst II LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING MAY 29, 2002 City Clerk Hooper stated that due to lack of a Quorum the meeting was adjourned at 10:20 a.m. MEMORANDUM DATE: June 18, 2002 TO: HONORABLE PRESIDENT AND MEMBERS OF THE LYNWOOD PUBLIC FINANCE AUTHORITY FROM: Faustin Gonzales, Chief Administrative Officer ,/~ ~~ BY: Autra C. Adams, Program Development Coordinator SUBJECT: State of California 2002-2003 Budget Update PURPOSE: To have the President & Members of the Lynwood Public Finance Authority receive and file this item. BACKGROUND: Each year the Governor submits his budget to the Legislature by January 10, followed by the Chair of the Senate and Assembly Budget Committees introducing a budget bill containing the appropriations necessary to finance the programs proposed in the Governor's Budget. In May, the Department of Finance updates its estimates of current year, and budget year revenues, expenditures, and surplus. The Governor then submits the May Revise to the_Budget-based on these numbers. E- The Constitution states that the Budget is supposed to be signed by the Legislature by June 15'" of each year and by the Governor by June 30`" of each year. ANALYSIS: The 2002-2003 State Budget is currently in the Joint Budget Conference Committee. The Conference Committee is composed of two Democrats in the Assembly, two Democrats in the Senate, one Republican in the Assembly and one Republican in the Senate. Currently the key items being debated that will directly affect Lynwood are: - ERAF Shift from Redevelopment Agencies - In the Governors May Revise he proposed to require redevelopment agencies to pay $75 Million into ERAF. The Senate Budget Subcommittee didn't take any action on this item. The Assembly Budget Subcommittee approved the Governors request limiting the shift to three years. The Joint Committee has not yet taken any action on this item. - Citizens Option for Public Safety {COPS) and Juvenile Crime Prevention Program {JCCP) -The Governor proposed to eliminate funding for JCCP and fund COPS at $121 Million. The. Senate Budget Committee split the $121 Million evenly between JCCP and COPS. The Assembly Budget Committee restored full funding to both programs, $121 Million for COPS and $116 Million for JCCP. The Joint Committee has not yet taken any action on this item. - Technology Funding for Local Law Enforcement -The Governor proposed to reduce the grants from $35.4 Million to $16.9 Million. The Senate Budget Committee supported to the Governors proposal. The Assembly Budget Committee voted to increase the cuts to a full $35.4 Million and eliminate the program. The Joint Committee has not yet taken any action on this item. RECOMMENDATION: Staff respectfully requests that the President & Members of the Lynwood Public Finance Authority receive and file this information. Zf~is Agenda contains a brief general description of each ifem to be considered. Copies of fhe Staff reports or other written documentation relating to each item of business referred to on the Agenda are on frle in the Office of the Cify Cleric and are availabfe for public inspection. A person who has a question concerning any of the agenda items may call fhe City Manager at (310) 603- 0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERATION ~~ CF ` AT THE REGULAR MEETING OF CITY CLERKS OFFICE HORITY THE LYN OOB D I L UNE 4, 2002 ON J HELD TAY 3 ~ 20U2 ~ 6:00 P.M. l~ COUNCIL CHAMBERS "Y71~;1~~ 11330 BULLIS ROAD, LYNWOOD, CA 90262 ~) ARTURO REYES -, PRESIDENT FERNANDO PEDROZA VICE PRESIDENT PAUL H. RICHARDS, II MEMBER LOUIS BYRD MEMBER RAMON RODRIGUEZ MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOFER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.} 4. MINUTES OF PREVIOUS MEETING Regular Meeting, May 7, 2002 Special Meeting, May 8, 2002 Special Meeting, May 13, 2002 Special Meeting, May 15, 2002 INFRASTRUCTURE FINANCE Comments: Existing law requires the Governor of the State of California to annually submit a proposed five-year infrastructure plan to the Legislature. The plan must include identification of infrastructure requested by agencies, aggregate funding for transportation, and educational infrastructure needs. In addition, the plan must include the costs of providing the needed infrastructure, identify sources of funding, and estimate the impact of funding the infrastructure on California's debt position. ACA 11 would dedicate an increasing portion of the state budget growth to state and local infrastructure financing. ACA 11 designates that the funds designated for infrastructure would be split among transportation projects, education projects, park projects or projects preserving or restoring natural resources, and water projects. A specified amount would be dedicated for each category and each category would be split into 50% for state projects and 50% for local projects. Recommendation: Staff respectfully requests that the Board of Directors of the Lynwood Public Finance Authority receive and file this item. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON JUNE 18, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE -CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. . LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING MAY 7, 2002 The Public Finance Authority of the City of Lynwood met in a Regular Meeting at 11330 Bullis Road on the above date at 7:50 p.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez, and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Interim City Attorney Montgomery, City Clerk Hooper, and Treasurer Pygatt City Clerk Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4: MINUTES OF PREVIOUS MEETING It was moved by Member Rodriguez, seconded by Member Byrd and carried to approve the following minutes. • Regular Meeting, April 16, 2002 :• Special Meeting, April 18, 2002 Item #5: CONSIDERATION OF SUPPORTING AB2209 LOCAL GOVERNMENT PENSION FUNDS It was moved by Member Rodriguez,- seconded by Member Byrd and carried to continue _ this item to the next Regular Council Meeting of May 21, 2002. ADJOURNMENT Having no further discussion, it was moved by Vice President Pedroza seconded by Member Byrd and carried to adjourn the meeting at 7:52 p.m. Arturo Reyes, Mayor Andrea L. Hooper, City Clerk gDE11TIlA ITF,~ ~^~r 4 LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING MAY 8, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Bullis Road on the above date at 7:52 p.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez, and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Interim Deputy City Attorney Sylva, Secretary Hooper, and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. Chairman Reyes rearrange the Agenda to Lynwood Redevelopment Agency Closed Session. It was moved by Vice President Pedroza, seconded by Member Byrd and carried. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PU8L1C ORALS COMMUNICATIONS NONE Item #4 RECEIVE AND FILE A REPORT ON L.O.C.A.L. (LEAVE OUR COMMUNITY ASSETS LOCAL) Leave our Community Assets Local (LOCAL Coalition) is a growing grassroots network of local and state individuals and organizations in California representing public safety, business, tabor, health, and local government, seniors and community groups. The LOCAL Coalition has united around the growing imperative to protect local services by protecting local government revenues from being further reduced to solve state budget problems. It was moved by Member Richards, seconded by Member Rodriguez and carried to receive and file this item. ADJOURNMENT Having no further discussion, it was moved by Member Richards, seconded by Member Rodriguez and carried to adjourn at 7:53 p. m. Arturo Reyes, Mayor Andrea L. Hooper, City Clerk LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING MAY 13, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Bullis Road on the above date at 7:26 p.m. President Reyes presiding. Members Byrd; Pedroza, Rodriguez, and Reyes answered the joint roU call for all agencies. Also present were Chief Administrative Officer Gonzales, Interim City Attorney Montgomery, Secretary Hooper, and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. Member Richards arrived at 6:45 p.m. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4 LOCAL (LEAVE OUR COMMUNITY ASSETS LOCAL) LEGISLATIVE ACTION DAYS On May 15-16, 2002 the LOCAL (Leave Our Community Assets Local) Coalition will be hosting Legislative Action Days in Sacramento. 'In light of the projected detrimental fiscal impact that next fiscal years State Budget will have on local governments, the League of California Cities has decided to combine its annual Legislative Action Days with the LOCAL Coalition so that all local government entities will be represented at the Legislative Action Days. An extensive program is planned for the two days and it is the goal of LOCAL, that the Legislative Action Days will help to ensure that essential local government service and local government revenues are not sacrificed in an effort to solve the State Budget problems. It was moved by Member Byrd, seconded by Vice President Pedroza and carried to received and file this item. ADJOURNMENT Having no further discussion, it was moved by Vice President Pedroza, seconded by Member Rodriguez and carried to adjourn at 7:27 p.m. Arturo Reyes, Mayor Andrea L. Hooper, City Clerk LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING MAY 15, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Bullis Road on the above date at 6:54 p.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez, and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Interim City Attorney Montgomery, Secretary Hooper, and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4 PROPERTY TAX SHIFTS EXEMPTIONS -AFFORDABLE HOUSING With the approval of Proposition 13, voters chose to substitute separate local property tax rates and covert to a uniform 1 % tax rate and authorized the Legislature the authority to allocate property tax revenues. These taxes are allocated to cities, special districts, counties, and schools. Existing property tax law also gives the Legislature the ability to shift the amount of ad valorem property tax law that would have otherwise been allocated to counties, cities, and special districts to school districts, and community college districts through the Educational Revenue Augmentation Fund (ERAF). SB 1509 seeks to increase the number of affordable housing units within the State of California by beginning with the 2003-2004 fiscal year reducing the reduction and transfer amounts of qualified local agencies by granting an exemption for their property tax losses for any affordable housing units they approve on or after January 1, 2003 where the non-profit property owner has qualified for a property tax exemption. It was moved by Vice President Pedroza, seconded by Member Rodriguez and carried to receive and file this item. ADJOURNMENT Having no further discussion, it was moved by Member Rodriguez, seconded by Member Byrd and carried to adjourn at 10:10 p.m. Arturo Reyes, Mayor Andrea L. Hooper, City Clerk MEMORANDUM DATE: June 4, 2002 TO: HONORABLE PRESIDENT AND MEMBERS OF THE LYNWOOD PUBLIC FINANCE AUTHORITY FROM: Faustin Gonzales, Chief Administrative Officer BY: Autra C, Adams, Program Development Coordinator _. SUBJECT: Infrastructure Finance PURPOSE: To have the President & Members of the Lynwood Public Finance Authority receive and file this item relative to infrastructure finance. BACKGROUND: Existing law requires the Governor of the State of California to annually submit a proposed five-year infrastructure plan to the Legislature. The plan must include identification of infrastructure requested by agencies, aggregate funding for transportation, and educational infrastructure needs. In addition, the plan must include the cos#s of providing the needed inftastructure, identify sources of funding, and estimate the impact of funding the infrastructure on California's debt position. ANALYSIS: Although Curren#ly an infrastructure plan is required to be created annually there is no designated funding or revenue stream to specifically meet infrastructure needs. ACA 11 (Richman, ACA 11 would dedicate an increasing portion of the state budget growth to state and local infrastructure financing. This would go a long way toward decreasing the year-to-year funding uncertainties that impede long-term planning and implementation of infrastructure construction, maintenance and rehabilitation. Specifically, ACA 11 wi11 establish the California Twenty-First Cen#ury Infrastructure Investment Fund in the State Treasury. Beginning with the 2004-2005 fiscal year, a specified percentage of revenues would be transferred from the general fund to the Investment fund. This amount would start with 1 % and annually increase by .4% each of the following years. ACA 11 designates that the funds designated for infrastructure would be split among transportation projects, education projects, park projects or projects preserving or restoring natural resources, and water projects. A specified amount would be dedicated for each category qnd each category would be split into 50% for state projects and 50% for local projects. This legislation has been introduced as an Assembly Constitutional Amendment. The reason was because by this legislation passing both houses with a 2/3 vote, voters are allowed to~ratify this decision opposed to the governor. This authorizes voters of the State to determine how general fund revenues will be utilized. If this legislation is passed by June 27m, the constitutional amendment will go on the November 2002 statewide ballot. RECOMMENDATION: Staff respectfully requests that the President & Members of the Lynwood Public Finance Authority receive. and file this item relative to infrastructure finance. AC3ENllA PPEM ACA 11 Assembly Constitutional Amendment -AMENDED Page 1 of 5 BILL NUMBER: ACA 11 AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 2, 2002 AMENDED IN ASSEMBLY APRIL 16, 2002 INTRODUCED BY Assembly Members Richman and Canciamilla JUNE 5, 2001 Assembly Constitutional Amendment No. it--A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by adding Article XVI A thereto, relating to infrastructure finance. LEGISLATIVE COUNSEL'S DIGEST ACA 11, as amended, Richman. Infrastructure: finance. Existing law, commencing on January 10, 2002, requires the Governor to submit to the Legislature a proposed 5-year infrastructure plan. The plan is required to be submitted annually, in conjunction with the Governor's Budget, and to cover a 5-fiscal year period, beginning with the fiscal year that is the same as that covered by the Governor's Budget with which the plan is submitted. This measure would establish the California Twenty-First Century Infrastructure Investment Fund in the State Treasury. Beginning in ' the 2004-OS fiscal year, the measure would cause a specified percentage of revenues to be transferred from the General Fund to the infrastructure fund. The measure would require the Department of Finance to prepare an annual plan to expend these funds, unless the Governor directs another state agency to carry out this responsibility. The measure would also declare that the infrastructure fund and its related provisions would become operative only when the Legislature enacts a statute to implement the allocation of revenues in the fund. This measure would generally require that the funds in the infrastructure fund be allocated in specified amounts for transportation projects, education projects, park projects or projects preserving or restoring natural resources, and water projects. Of the funds in each category, 50$ would be available for state projects and 50~ for local projects. The funds for local projects would be continuously appropriated for those purposes. This measure would authorize entities receiving distributions from the infrastructure fund to exchange funds with other entities receiving those funds for the purpose of exchanging funds eligible for expenditure on one category of projects for funds eligible for expenditure on a differept category or-for-the purpose of exchanging a future allocation for funds eligible for immediate expenditure. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. WHEREAS, An investment in California's infrastructure is an investment in California's future because the quality of life in California depends on the quality of our children's education and on the condition of the state's transportation network, water system, and parks; and WHEREAS, California's education, transportation, and resource http://www.leginfo.ca.gov/pub/bilUasm/ab_0001-.../aca_ll bill_20020502_amended asm.htm 5/28/02 ACA 11 Assembly Constitutionai Amendment -AMENDED Page 2 of 5 infrastructure is critically under-funded; and WHEREAS, California has often used bonds to pay for infrastructure investments, but bonds alone cannot address the magnitude of California's infrastructure investment deficit; and WHEREAS, Bonds are the most costly way to pay for improvements because, for every $2 California raises to improve our infrastructure, an additiona3 $1 must be spent to pay the bankers and investors who finance the bonds; and WHEREAS, Even if California's economic growth again slows down, bonds must still be repaid, even if this means squeezing out investments in education, child care, and other important programs; and WHEREAS, According to the Legislative Analyst's 1998 report, Overhauling the State's Infrastructure Planning and Financing Process, the state needs to take two main steps to provide a more stable funding source for our infrastructure needs: dedicate a given level of General Fund resources for infrastructure, and reserve a greater proportion of the spending for pay-as-you-go financing; and WHEREAS, In the 1960s, when California created the nation's finest education and transportation systems, the state routinely committed 7 to 10 times more of the General Fund to capital outlay than we do today; and WHEREAS, Establishing a California Twenty-First Century Infrastructure Investment Fund and slowly increasing the amount of the General Fund committed to capital outlay is the only realistic prospect California has to reverse 25 years of neglect of our infrastructure; and WHEREAS, By limiting the annual growth of the infrastructure fund to a small percentage of annual General Fund growth, Article XVI A will protect against the risks of bonded indebtedness while also protecting education,. child care, and other necessary services during periods of economic recession; and WHEREAS, The purpose of subdivision (b) of Section 2 of Article XVI A is to ensure that funding for infrastructure projects is not at the expense of funding of other vital programs and to protect existing vital programs in the event of an economic recession; now, therefore, be it Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 2001-02 Regular Session commencing on the fourth day of December 2000, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California that the Constitution of the State be amended by adding Article XVI A thereto, to read: ARTICLE XVI A INFRASTRUCTURE INVESTMENT FUND SECTION 1. The California Twenty-First Century Infrastructure Investment Fund is hereby established in the State Treasury for the purpose of funding capital outlay expenses that are related to projects for education, transportation, water, parks, and natural resources preservation and restoration. The money in the fund designated by this article for allocation pursuant to subparagraph (A) of paragraph (1), subparagraph (A) of paragraph (2), subparagraph (A) of paragraph (3), and subparagraph (A) of paragraph (4), of subdivision (a) of Section 3, is continuously appropriated for the purposes specified in those provisions. The remaining money in the fund shall be subject to annual appropriation by the Legislature. The Department of Finance, or a successor agency, shall prepare an annual plan to expend these funds, unless the Governor directs another state agency to prepare the plan. SEC. 2. (a) Commencing in the 2004-OS fiscal year, and in every fiscal year thereafter, the Controller shall make the following transfers from the General Fund of the state to the infrastructure fund: http://www.leginfo.ca.gov/pub/bilUasm/ab 0001-.../aca 11_bill_20020502_amended asm.htm 5/28/02 ACA 1 i Assembly Constitutional Amendment -AMENDED Page 3 of 5 {1) During the 2004-OS fiscal year, a sum equal to 1 percent of the total amount of General Fund revenues as estimated for purposes of the Budget Act for that fiscal year. (2) During the 2005-06 fiscal year, a sum equal to 1.4 percent of the total amount of General Fund revenues as estimated for. purposes of the Budget Act for that fiscal year. (3) During the 2006-07 fiscal year, a sum equal to 1.8 percent of the total amount of General Fund revenues as estimated for purposes of the Budget Act for that fiscal year. (4) During the 2007-08 fiscal year, a sum equal to 2.2 percent of the total amount of General Fund revenues as estimated for purposes of the Budget Act for that fiscal year. (5) During the 2008-09 fiscal year, a sum equal to 2.6 percent of the total amount of General Fund revenues as estimated for purposes of the Budget Act for that fiscal year. (6) During the 2009-10 fiscal year, a sum equal to 3 percent of the total amount of General Fund revenues as estimated for purposes of the Budget Act for that fiscal year. (7) During the 2010-11 fiscal year, a sum equal to 3.4 percent of the total amount of General Fund revenues as estimated for purposes of the Budget Act for that fiscal year. (8) During the 2011-12 fiscal year, and every fiscal year thereafter, a sum equal to 3.75 percent of the total amount of General Fund revenues estimated for purposes of the Budget Act for the applicable fiscal year. (b) Notwithstanding subdivision (a), if the total General Fund revenues in a budget year are estimated to not increase by at least 4 percent compared to the prior year, the increase in the percentage amount to be transferred in the budget year, as otherwise specified in paragraphs (2) to (8), inclusive, of subdivision (a) shall be ' delayed by one year. SEC. 3. (a) The funds in the California Twenty-First Century Infrastructure Investment Fund shall be allocated for capital outlay purposes in each fiscal year, as follows, with funds to be allocated ~ -- for purposes of paragraphs (1) to (4), inclusive, as provided in subdivision (b): (I) Transportation projects: (A) Fifty percent of the funds distributed under this paragraph shall be allocated to cities and counties on a per capita basis for investment in transportation capital infrastructure, subject to maintenance of effort by those entities regarding existing transportation spending levels. (B) Fifty percent of the funds distributed under this paragraph shall be available for programming and allocation through the state transportation improvement program process. (2) Education projects: (A) Fifty percent of the funds distributed under this paragraph shall be allocated to school districts and county offices of education to fund public elementary and secondary schools, using the modified per capita formula outlined in the report, "A New Blueprint foY California School Facility Finance," published by the Legislative Analyst's Office on May 1, 2001. (B) Fifty percent of the funds distributed under this paragraph shall be allocated to capital projects for the California Community Colleges, the California State University, and the University of California. (3) Park projects or projects to preserve or restore natural resources: (A) Fifty percent of the funds distributed under this paragraph shall be allocated to cities, counties, and park districts on a per capita basis for acquisition of parkland and construction of park facilities, subject to maintenance of effort by those local entities regarding existing park and recreation spending levels. (B) Fifty percent of the funds distributed under this paragraph http://www.leginfo.ca.gov/pub/bilUasm/ab_0001-.../aca 11_bill_20020502_amended asm.htm 5/28/02 ACA 11 Assembly Constitutional Amendment -AMENDED Page 4 of 5 shall be allocated to projects to acquire land and complete capital improvements for state parks, and for grants to regional park conservancies. (4) Water projects: (A) Fifty percent of the funds distributed under this paragraph shall be allocated as grants to cities, counties, and regional water agencies for water supply, reuse, quality, and conservation projects with regional scope and benefits. Local governmental entities and regional water agencies shall submit grant proposals to a joint panel composed of representatives from the Department of Water Resources and the State Water Resources Control Board. The funds may be allocated only to projects approved by the panel. (B) Fifty percent of the funds distributed under this paragraph shall be allocated to water projects of statewide scope and benefits. (b) (1) In the 2004-05 to 2006-07 fiscal years, money in the fund shall not be allocated for transportation projects pursuant to paragraph (1) of subdivision (a). During those fiscal years, the money in the fund shall be allocated as follows: Fifty percent pursuant to paragraph (2) of subdivision (a), 25 percent pursuant to paragraph (3) of subdivision (a), and 25 percent pursuant to paragraph (4) of subdivision (a). (2) In the 2007-08 fiscal year, money in the fund shall be allocated as follows: Twenty percent pursuant to paragraph (1) of subdivision {a), 40 percent pursuant to paragraph (2) of subdivision (a), 20 percent pursuant to paragraph (3) of subdivision (a), and 20 percent pursuant to paragraph {4) of subdivision (a). (3) In the 2008-09 fiscal year, money in the fund shall be allocated as follows: Twenty-five percent pursuant to paragraph (1) of subdivision (a), 37.5 percent pursuant to paragraph (2) of subdivision (a), 18.75 percent pursuant to paragraph (3} of subdivision (a), and 18.75 percent pursuant to paragraph (4) of subdivision (a). (4) In the ~~; 2009-10 and subsequent fiscal years, money in the fund shall be allocated as follows: Thirty-three percent pursuant to paragraph (1) of subdivision (a), 33 percent pursuant to paragraph (2) of subdivision (a), 17 percent pursuant to paragraph (3) of subdivision (a), and 17 percent pursuant to paragraph (4) of subdivision (a). (5) If the transfer of General Fund revenues is delayed by one year pursuant to operation of subdivision (b) of Section 2, the otherwise applicable percentage allocation required by this subdivision shall also be delayed by one year. (c) Funds allocated as described in this section may be spent by the entity receiving the money, transferred to local districts for expenditure, or pooled for expenditure by regional authorities, for capital outlay for projects in the categories listed under this section. (d) Entities receiving an allocation under this section may exchange funds with other entities receiving those funds for either or.;both of the following, purposes: (1) To exchange funds eligible for expenditure on one category of projects for funds eligible for expenditure on a different category. (2) To exchange a future allocation for funds eligible for immediate expenditure. SEC. 4. When making the calculation required under subdivision (b) of Section 8 of Article XVI for any fiscal year, "General Fund revenues which may be appropriated pursuant to Article XIII B," as used in paragraph (i) of that subdivision (b), and "General Fund proceeds of taxes appropriated pursuant to Article XIII B," as used in paragraphs (2) and (3) of that subdivision (b), shall include the amounts of any transfer for that fiscal year made pursuant to Section 2 of this article. The Director of Finance shall adjust the amount http://www.leginfo.ca.gov/pub/bilUasm/ab_0001-.../aca 11 bill 20020502_amended_asm.htm 5/28/02 ACA 11 Assembly Constitutional Amendment -AMENDED Page 5 of 5 required by Section 8 of Article XVI to be allocated to school districts and community college districts, to ensure that any transfer required under Section 2 of this article does not diminish the aggregate funding level for school districts and community college districts to an aggregate funding level below the level that would be required absent those transfers. SEC. 5. (a) This article shall become operative only when the Legislature enacts a statute to implement the allocation of revenues in the infrastructure fund. The statute shall require all of the following: (1} Annual distribution of 50 percent of these moneys to local entities as provided in this article on a continuously appropriated basis for local infrastructure expenses. (2) That 50 percent of the revenues in the infrastructure fund be subject to annual appropriation by the Legislature as provided in this article. (3) The formation of an oversight panel to ensure that locally allocated funds are spent for eligible infrastructure projects. (b) The Legislature may amend the statute enacted pursuant to subdivision (a) or enact any other statute to ,further the purposes set forth in this article. The Legislature may not repeal the statute enacted pursuant to subdivision (a) nor modify the distribution of moneys set forth in paragraphs (1) and (2) of subdivision {a). http://www.leginfo.ca.gov/pub/bilUasm/ab_0001-.../aca 11 bill 20020502_amended asm.htm 5/28/02 ~, This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other wnffen documentation relating fo 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. A person who has a question concerning any of the agenda items may call the City Manager at (390) 603- 0220, ext. 200. Procedures for Addressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. ~~~-~" ~• ~l SIN JUN 2 , 2pCiZ. i CITY OF LYNWOO~ CITY MANAGERS OFFICE AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE REGULAR MEETING OF THE LYNWOOD PUBLIC FINANCE AUTHORITY 70 BE HELD ON JULY 2, 2002 6:00 P.M. COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 ARTURO REYES PRESIDENT OG-27-07_P05:18 RCVD FERNANDO PEDROZA LOUIS BYRD VICE PRESIDENT MEMBER PAUL H. RICHARDS, II RAMON RODRIGUEZ MEMBER MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES CALL TO ORDER ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Oniy) PUBLIC ORAL COMMUNICATIONS 1F AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) 4. MINUTES OF PREVIOUS MEETING Regular Meeting, June 4, 2002 5. LOCAL PUBLIC SAFETY FUNDING Comments: Two of the most popular grant sources from the federal government for funding local public safety are the Community Oriented Policing Services (COPS) and the Local Law Enforcement Block Grant (LLEBG}. Bo#h of these programs assist in increasing iaw enforcement to local govemments due to their basic requirements of supplementing current funding levels of local governments. In President Bush's fiscal year 2003 budget proposal, he is proposing a 90% budget cut for local public safety and crime prevention programs. The most severe budget cuts will be imposed on COPS and LLEBG. Recommendation: Staff respectfully requests that the President and Members of the Public Finance Authority receive and file this item and authorize letters of support to be generated relative to restoration of local public safety funding. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON JULY 16, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING JUNE- 4, 2002 The Public Finance Authority of the City of Lynwood met in a Regular Meeting at 11330 Bullis Road on the above date at 6:24 p.m. President Reyes presiding. Members Byrd, Richards, Rodriguez, and Reyes .answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Interim City Attorney Montgomery, City Clerk Hooper, and City Treasurer Pygatt City Clerk Hooper announced that the agenda had been posted in accordance with the Brown Act. Vice President Pedroza arrived at 6:21 p.m. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4: MINUTES OF PREVIOUS MEETING It was moved by Member Rodriguez, seconded by Vice President Pedroza and carried to approve the following minutes. • Regular Meeting, May 7, 2002 :• Special Meeting, May 8, 2002 :• Special Meeting, May 13, 2002 :• Special Meeting, May 1 ~, 2002 Item #5: INFRASTRUCTURE FINANCE Existing law requires the Governor of the State of California to annually submit a proposed five-year infrastructure plan to the Legislature. The plan must include identification of infrastructure requested by agencies, aggregate funding for transportation, and educational infrastructure needs. In addition, the plan must include the costs of providing the needed infrastructure, identify sources of funding, and estimate the impact of funding the infrastructure on California's debt position. ACA 11 would dedicate an increasing portion of the state budget growth to state and local infrastructure financing. ACA 11 designates that the funds designated for infrastructure would be split among transportation projects, education projects, park - projects or projects preserving or restoring natural resources, and water projects. A specified amount would be dedicated for each category and each catergory would be split into 50% for state projects and 50% for local projects. It was moved by Member Rodriguez, seconded by Vice President Pedroza and carried to receive and file this item. ~~~ ADJOURNMENT Having no further discussion, it was moved by Member Byrd, seconded by Vice President Pedroza and carried to adjourn the meeting at 6:25 p.m. Arturo Reyes, Mayor Andrea L. Hooper, City Clerk MEMORANDUM DATE: July 2, 2002 TO: THE HONORABLE PRESIDENT AND MEMBERS OF THE LYNWOOD PUBLIC FINANCE AUTHORITY ~J~ FROM: Faustin Gonzales, Chief Administrative Officer I~ BY: Autra C. Adams, Program Development Coordinator SUBJECT: Local Public Safety Funding PURPOSE: To have the President and Members of the Lynwood Public Finance Authority receive and file this item and authorize letters of support to be generated relative to restoration of local public safety funding. BACKGROUND: Two of the most popular grant sources from the federal government for funding local public safety are the Community Oriented Policing Services (COPS) and the Local Law Enforcement Block Grant (LLEBG). Both of these programs assist in increasing law enforcement to local governments due to their basic requirements of supplementing current funding levels of local governments. COPS is a competitive grant which requires local governments to provide minimally a 25% match #or additional officers. LLEBG is a block grant allocated based on population that requires a 10% match by local governments for additional officers. ANALYSIS: In President Bush's fiscal year 2003 budget proposal, he is proposing a 90% budget cut for local public safety and crime prevention programs. The most severe budget cuts will be imposed on COPS and LLEBG. Funding for the COPS program would be reduced from $1.05 Billion to only $65.6 Million. The COPS Universal Hiring and retention programs would be eliminated along with the elimination of funds for school resource officers and targeted crime prevention grant programs for small communities. The LLEBG would be completely eliminated. Currently, the program is funded at $400 Million, which is already a reduction of the previous years funding level of $525 Million. Impact on Lynwood The City of Lynwood is currently utilizing the LLEBG grant to fund three motorcycle officers. Any further reduction in grant funding would either cause the motorcycle officers to be eliminated or the burden of funding the motorcycle officers to the general fund. Law enforcement services already comprise approximately 25% of the general fund expenditures. RECOMMENDATION: Staff respectfully requests that the President and Members of the Public Finance Authority receive and file this item and authorize letters of support to be generated relative to restoration of local public safety funding. ~A 1TS3i This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documenfation relating to each item of business referred to on the Agenda are on trle in the Office of fhe City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603- 0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WELL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE~UNANIMOUS CONSENT OF THE COUNCIL. ~~ CITY OF LYNWOOC AGENDA ITEMS ON FILE FOR CONSIDERATION CITY CLERKS OFFICE AT THE REGULAR MEETING OF THE LYNWOOD PUBLIC FINANCE AUTHORITY `JUL > > 2a~% ~ TO BE HELD ON JULY 16, 2002 ~I~I~u11121~141 6 6:00 P.M. ,,~~pp COUNCIL CHAMBERS ~A,y.~1~/`~ ,;, 11330 BULLIS ROAD, LYNWOOD, CA 90262 G~ ARTURO REYES PRESIDENT FERNANDO PEDROZA LOUIS BYRD VICE PRESIDENT MEMBER PAUL H. RICHARDS, 11 MEMBER RAMON RODRIGUEZ MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT tS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part fll, Paragraph 5.) 4. MINUTES OF PREVIOUS MEETING Regular Meeting, June 18, 2002 Special Meeting, June 27, 2002 5. CALIFORNIA ECONOMIC STIMULUS AND PUBLIC INFRASTRUCTURE SECURITY AND INVESTMENT BOND ACT OF 2002 Comments: Existing law authorizes the Legislature to approve and place measures on the ballot at a statewide election so that the voters may determine whether to approve the issuance of general obligation bonds for the purpose set forth in the measure. According to some economic projections, the State of California Economic Stimulus and Public Infrastructure Security and Investment Bond Act of 2002 to be placed on the statewide election ballot for November 2002. if this obligation bond were approved, $1.045 billion would be allocated for a variety of infrastructure programs. Recommendation: Staff respectfully requests that the Board of Directors of the Lynwood Public Finance Authority receive and file this item. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON AUGUST 6, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING JUNE 18, 2002 The Public Finance Authority of the City of Lynwood met in a Regulaz Meeting at 11330 Bullis Road on the above date at 6:27 p.m. President Reyes presiding. Members Byrd, Pedroza; Richazds, Rodriguez, and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Interim City Attorney Montgomery, City Clerk Hooper, and City Treasurer Pygatt City Clerk Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4: MINUTES OF PREVIOUS MEETING It was moved by Member Byrd, seconded by Member Richards and carried to approve the following minutes. • Regulaz Meeting, May 21, 2002 :• Special Meeting, May 22, 2002 :• Special Meeting, May 29, 2002 Item #5: STATE OF CALIFORNIA 2002-2003 BUDGET UPDATE Each yeaz the Governor submits his budget to the Legislature by January 10, followed by the Chair of the Senate and Assembly Budget Committees introducing a budget bill containing the appropriations necessary to finance the programs proposed in the Governor's Budget. The 2002-2003 State Budget is currently in the Joint Budget Conference Committee. The Conference Committee is composed of two Democrats in the Assembly, two Democrats in the Senate, one Republican in the Assembly and one Republican in the Senate. It was moved by Vice President Pedroza, seconded by Member Byrd and carried to receive and file this item. ADJOURNMENT Having no further discussion, it was moved by Vice President Pedroza, seconded by Member Byrd and carried to adjourn the meeting at 6:29 p.m. Arturo Reyes, Mayor Andrea L. Hooper, City Clerk A(}ENllA ITEM ------- LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING JUNE 27, 2002 The Public Finance Authority of the City of Lynwood met in a Regular Meeting at 11330 Bullis Road on the above date at 10:35 a.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez, and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, City Clerk Hooper, and City Treasurer Pygatt City Attorney Montgomery was absent. City Clerk Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #d: L.O.C.A.L. (LEAVE OUR COMMUITY ASSETS LOCAL) EFFORTS RELATIVE TO THE STATE BUDGET CRISIS) With the State of California facing a severe budget crisis, many cities are concerned that the State will seek solutions to solve their crisis by raiding local government revenues to balance the budget. It is to this end that municipal organizations such as the League of California Cities joined forces with LOCAL Coalition to urge the Governor and the Legislature to avoid budget cuts that jeopardize vital local services. Vice President Pedroza .stated he is happy to work together with the LOCAL Coalition because they are fighting for all cities to retain their resources. This Coalition also gives recommendations and options on how to save money without reducing services to the community. It was moved by Member Byrd, seconded by Member Rodriguez and carried to receive and file this item. ADJOURNMENT Having no further discussion, it was moved by Member Rodriguez, seconded by Member Byrd and carried to adjourn the meeting at 10:36 a.m. . Arturo Reyes, Mayor Andrea L. Hooper, City Clerk MEMORANDUM DATE: July 16, 2002 TO: HONORABLE PRESIDENT AND MEMBERS OF THE LYNW D PUBLIC FINANCE AUTHORITY ~ FROM: Faustin Gonzales, Chief Administrative Officer BY: Antra C. Adams, Program Development Coordinator SUBJECT: California Economic Stimulus and Public Infrastructure Security and Investment Bond Ac# of 2002 PURPOSE: To have the President & Members of the Lynwood Public Finance Authority receive and file this item relative to infrastructure finance. BACKGROUND: Existing law authorizes the Legislature to approve and place measures on the ballot at a statewide election so that the voters may determine whether to approve the issuance of general obligation bonds #or the purposes set forth in the measure. ANALYSIS: According to some economic projections, the State of California will face an infrastructure investment shortfall between S82 Billion and $90 Billion over the next ten years. SB 1647(Perata) This legislation would allow the California Economic Stimulus and Public Infrastructure Security and Investment Bond Act of 2002 to be placed on the statewide election ballot for November 2002. if this general obligation bond were approved, 51.045 billion would be allocated for a variety of infrastructure programs as follows: :• S675 Million for regional infrastructure in each of the states nine regions. Eligible projects include environmental assessmen# and remediation of brownfields, neighborhood residential infrastructure, neighborhood commercial infrastructure, infrastructure related to infill development and infrastructure related to transit-oriented development. • $10 Million for grants to be administered by the State Department of Justice to public agencies for equipment necessary to ensure public safety and to manage the consequences of terroris# or other domestic attacks. Individual grants may not exceed S 150,000 per public agency. :• S70 Million in grants to be administered by the CIEDB for port and harbor security improvements and environmental investments. :• S80 Million to be administered by the Department of Boating and Waterways for matching of local funds required for navigation related infrastructure projects authorized under the federal Water Resources Development Act. :• $80 Million to be administered by the CIEDB to fund rail, intermodal access, road, or related infrastructure within five miles of harbors, ports, or railroads. ~_~~ '. S50 Million for programs that reduce the impact of air pollution on neighborhoods near infrastructure investments, including programs that reduce emissions of particulate matter from heavy-duty engines by offsetting the cost of alternative diesel fuels, S80 Million to be allocated by the Department of Health Services to build water related infrastructure, including issues relative to water quality, water recycling, urban water conservation, and contaminant removal. SB 1647 is currently on the Assembly Appropriations Suspense File and is expected to be heard in committee in the month of August. RECOMMENDATION: Staff respectfully requests that the President & Members of the Lynwood Public Finance Authority receive and file this item. BILL NUMBER: SB 1647 AMENDED BILL TEXT AMENDED IN ASSEMBLY JUNE 17, 2002 AMENDED IN ASSEMBLY JUNE 4, 2002 INTRODUCED BY Senator Perata (Principal coauthor: Assembly Member Kehoe) (Coauthors: Assembly Members Cardoza, Chan, Cohn, Diaz, and Reyes) FEBRUARY 21, 2002 An act to add Division 3 (commencing with Section 64050) to Title 6.7 of the Government Code, relating to .financing a program for economic stimulus and infrastructure investment, by providing the funds necessary therefor through the issuance and sale of bonds of the State of California and by providing for the handling and disposition of those funds, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 1647, as amended, Perata. California Economic Stimulus and Public Infrastructure Security and Investment Bond Act of 2002. Existing constitutional and statutory provisions set forth procedures for the issuance of general obligation bonds. Also, the Bergeson-Peace Infrastructure and Economic Development Bank Act administered by the California Infrastructure and Economic Development Bank provides a mechanism for infrastructure development. This bill would enact the California Economic Stimulus and Public Infrastructure Security and Investment Bond Act of 2002, which, if adopted, would authorize, for the purpose of financing a program for economic stimulus and infrastructure investment, as specified, the issuance, pursuant to the State General Obligation Bond Law, of bonds in the amount of $1,045,000,000. The bill would require the Secretary of State to submit the bond act to the voters at the next statewide general election. The bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: i asc i lli / SECTION 1. The Legislature finds and declares all of the following: (a) The state faces an infrastructure investment shortfall of somewhere between $82 billion and $90 billion over the next 10 years. {b) As the world's fifth largest economy, California has great strengths: it is the gateway to Asia and Latin America and has a diversified economy, an entrepreneurial and skilled workforce, and an unparalleled natural environment. Infrastructure provides the foundation for a strong economy and will require responsible, ongoing investment to maximize the benefit of our strengths. (c) Over the next 20 years, California will add six million jobs and 12 million people who will need at least four million new homes. (d) The Guiding Principles Framework of the Commission on Building the 21st Century is a framework to use in investing in infrastructure, as follodvs: (1) To improve our quality of life, we need to achieve success in economic growth, environmental quality, and social equity, to leave a more sustainable California to future generations. (2) To make the best of our assets, we need to get the most from our use of natural resources, human capital, investment dollars, and existing infrastructure. To do so, we must use all of these precious resources and investment dollars more efficiently than in the past. (3) To provide equal access to opportunity, we must invest to ensure that all Californians have equal access to opportunity, including the benefits provided by our infrastructure. (e) As stated in the 1999 Capital Outlay and Infrastructure Report http://www.leginfo.ca.gov/pub/billlsen/sb_1601-1650/sb 1647 bill 20020617 amended asm.... 7/9/02 1 a~j~. L Vl / of the Department of Finance, an investment in infrastructure is an investment in California's future. The state's schools, highways, bridges., water systems, public safety facilities, and natural resources are the framework for individual and collective quality of life. Without a strong framework, both the public and private sectors of the economy will falter. (f) Brownfields, which are abandoned and contaminated lands and facilities, are a potential economic development resource. When reused, they produce new jobs and healthier neighborhoods, increase local tax revenues, and reduce pressure to develop on prime farmland or habitat. According to the National Governors Association, each one dollar ($1) invested in brownfield development by a state yields as much as one hundred dollars ($100) in economic benefits. (g) California is undergoing profound demographic change, with an increasingly dynamic, diverse population. The 2000 Census shows that California is the first large "majority-minority" state with no majority racial or ethnic group, and we are increasingly multicultural. Future population growth will result primarily from births to existing families, rather than migration or immigration. There is great diversity among California's regions, not only in terms of population growth trends and characteristics, but also varying economic conditions and geography. (h) The global economy, which relies upon reduced inventories and just-in-time production and delivery, has heightened the urgency of an efficient, reliable multimodal goods movement system. (i) People, wildlife, agriculture, and recreation depend upon water for existence. Our diverse industrial economy requires a reliable, high-quality water supply. Water is a key component of all life and has been the subject of struggle and competition throughout our state's history. In order to meet our water needs, California must provide reliable and efficient water infrastructure systems. (j) The following investment criteria should drive our investments in infrastructure: to maximize the return on existing infrastructure investment; protect our existing infrastructure by investing in both deferred maintenance and modernization; use technology, expansions, upgrades, and techniques, such as demand management and conservation strategies; strive for maximum leverage of every state dollar spent; augment the value of state funds by leveraging those funds whenever possible and by stimulating the investment of other resources through contributions, matches, and explicit public-private investment partnerships; implement integrated infrastructure strategies; and use financing methods that serve crosscutting or multiple, rather than single-purpose needs. (k) The state's direct funding of infrastructure must be fully coordinated with regional and local infrastructure spending. SEC. 2. Division 3 {commencing with Section 64050) is added to Title 6.7 of the Government Code, to read: DIVISION 3. CALIFORNIA ECONOMIC STIMULUS AND PUBLIC INFRASTRUCTURE SECURITY AND INVESTMENT BOND ACT OF 2002 CHAPTER 1. GENERAL PROVISIONS 64050. This division shall be known and may be cited as the California Economic Stimulus and Public Infrastructure Security and Investment Bond Act of 2002. 64051. As used in this division, the following terms have the ' following meanings, unless the context clearly requires otherwise: (a) "Bank" means the Infrastructure and Economic Development Bank established pursuant to Section 63021. (b) "Committee" means the California Economic Stimulus and Public Infrastructure Security and Investment Finance Committee established pursuant to Section 64062. (c) "Fund" means the California Economic Stimulus and Public Infrastructure Security and Investment Bond Fund established pursuant to Section 64055. CHAPTER 2. CALIFORNIA ECONOMIC STIMULUS AND PUBLIC INFRASTRUCTURE SECURITY AND INVESTMENT BOND FUND 64055. The proceeds of the bonds issued and sold under this division shall be deposited in the California Economic Stimulus and Public Infrastructure Security and Investment Bond Fund, which is hereby created. 64056. The money in the fund shall be allocated, upon appropriation by the Legislature, for economic development infrastructure investments, including the following: (a) (1) Regional infrastructure investments to be allocated within each of the following nine regions of the state: San Diego/Imperial, Orange County, the Inland Empire, Los Angeles County, http://www.leginfo.ca.gov/pub/bilUsen/sb_1601-1650/sb_1647 bill 20020617 amended asm.... 7/9/02 - --- - -- ---, -- . agc ~ ~i i central coast, central valley/sierra, Sacramento, San Francisco Bay Area, and northern California. The nine regions of the state receiving funds pursuant to this division shall be substantially similar to the business regions recognized by the Technology, Trade, and Commerce Agency. Eligible projects to be funded shall include: (A) Environmental assessment and remediation of brownfields. (B) Neighborhood residential infrastructure. (C) Neighborhood commercial infrastructure. {D) infrastructure related to infill development. (E) Infrastructure related to transit-oriented development. {2) For purposes of paragraph (1), funds shall be distributed based on a weighted formula incorporating the following factors: {A) Demonstrated need, based on all of the following: (i) The extent of deterioration of local infrastructure. (ii) Circulation patterns including, but not limited to, the degree of traffic congestion. (iii) Per capita income in the city or county. (iv) Density of existing housing. (v) Population density. (vi) Percentage of local infrastructure and housing in a neighborhood, district, city, or county that is over 20 years old. (B) Priority shall be given to infrastructure projects incorporating one or more of the following: (i) Infill development featuring mixed-use projects. (ii} Housing and neighborhood commercial rehabilitation or new construction. (iii) Project-related improvements integrated into new and existing housing. (iv) Transit-oriented development. (v) Replacement housing for housing lost due to new school construction. (vi) Maintaining neighborhood affordability. (vii) Proposals in communities with demonstrated economic need. (viii) Project-related infrastructure or improvements to infrastructure with a cumulative effect; that is, improvements that are part of larger infrastructure improvement efforts at the local level geared toward community revitalization. (3) The grant funds issued pursuant to this subdivision shall be used to address existing infrastructure needs in older neighborhoods relative to housing, commercial, and mixed-use development, and to promote infill development, transit-oriented development, replacement housing for new school construction, and commercial and residential rehabilitation. (4) For purposes of this subdivision, "existing infrastructure needs" means both of the following: (A) Any of the following in need of replacement, repair, or rehabilitation: city and county streets and sidewalks, pavement, road shoulders, guardrails, gutters and curbs, alley pavement, storm drains, sewers, benches, fountains, plantings, lighting, landscaping, public art and amenities, open space, including urban trails and canyons, bus stops and other transit stations, including transit-oriented enhancements, housing units, commercial units, or mixed-use developments. (B) Land acquisition and other necessary activities required to improve infrastructure, including the remediation of brownfields. (5) For purposes of this section, "older neighborhoods" means residential, commercial, or mixed-use neighborhoods or districts, in both urban and rural areas that are over 20 years old. (6) Grant funds shall be made available to eligible projects in each region. The total grant amount for each region may not exceed seventy-five million dollars ($75,000,000). The bank shall award grants through a competitive process pursuant to the criteria in this subdivision. (b) (1) Equipment necessary to ensure public safety and the ability of public agencies to manage the consequences of terrorist or other domestic attacks. The Department of Justice shall determine the amount of each grant'based on available funding, not to exceed one hundred fifty thousand dollars ($150,000} for any one grant, for the purchase of equipment by public agencies that may include, but is not limited to, any of the following: (A) Surveillance cameras. (B) Forms of biometric technology. (C) X-ray, ultrasound, and laser scanners. (D) Cargo scanners. (E) Radiation monitors. (F) Thermal protective equipment. (G) Personal protective equipment. (H} Site identification instruments capable of providing a fingerprint for a broad inventory of chemical agents. http://www.leginfo.ca.gov/pub/bilUsen/sb_1601-1650/sb__1647_bill_20020617 amended asm.... 7/9/02 ra~c ~r vt i (I) Other devices capable of detecting weapons of mass destruction using chemical, biological, or other similar substances. (2) _Ten million dollars ($10,000,000) shall be allocated in grants by the Department of Justice for the purposes of this subdivision. (c) (1) Port and harbor security, infrastructure, and environmental investments, including capital improvement projects that provide enhanced security at a harbor or port. (2) As used in this subdivision, "security project" means a capital improvement project that provides enhanced security at a harbor or port, including, but not limited to, any project that provides any of the following: {A) Video surveillance equipment. (B) Explosives detection technology, including, but not limited to, X-ray devices. (C) Other security equipment to assist in any of the following: (i) Screening of incoming vessels and cargo. (ii) Monitoring the physical perimeters of harbors and ports. (iii) Providing or augmenting onsite emergency response capability. (3) Seventy million dollars {$70,000,000) shall be allocated in grants by the bank for the purposes of this subdivision. (d) (1) Navigation related infrastructure projects authorized pursuant to the federal Water Resources Development Act, as contained in Title 33 of the United States Code.. All state funds appropriated for the purposes of federal navigation projects authorized pursuant to the federal Water Resources Development Act shall be deposited in the Federal Navigation Project Matching Account, which is hereby created in the fund.. The Director of Boating and Waterways shall allocate the moneys in that fund pursuant to this subdivision. {2) The director shall complete. an evaluation and ranking of state port and harbor dredge projects that have been approved for federal funding under the federal water Resources Development Act. (3) The evaluation of the projects shall include a determination of whether each project is in the best interests of the state, a review of the overall viability and effectiveness of the projects, and a recommendation as to the appropriate levels of state and local financial participation. Upon the application of any port or harbor district, the director shall include in its evaluation any federally approved harbor dredge project. (4) if federal funds are appropriated for purposes of federal navigation projects pursuant to the federal Water Resources Development Act, the director may allocate moneys in the Federal Navigation Project Matching Account, if he or she finds that the allocation is in the best interests of the state, to local governmental entities for use by those entities as part of the local matching share required by federal law for those projects in an amount not to exceed 75 percent of the amount contributed by those entities for those projects. (5) Eighty million dollars ($80,000,000) of the proceeds of the bonds issued pursuant to this division shall be deposited into the Federal Navigation Project Matching Account. (e) Transportation infrastructure projects, as provided for in this subdivision. The Global Gateways Infrastructure Account is hereby created in the fund. The moneys in the account, upon appropriation by the Legislature, shall be allocated by the bank to fund rail, intermodal access, road, or related infrastructure improvements within five miles of rail yards, harbors, ports, or airports. Eighty million dollars ($80,000,000) of the proceeds of the bonds issued pursuant to this division shall be deposited in that account. (f) Projects to reduce the impact of air pollution on neighborhoods near infrastructure investments, as provided for in this subdivision. (1) The Neighborhood Air Quality Improvement Account is hereby created in the Carl Moyer Memorial Air Quality Standards Attainment Trust Fund created pursuant to Section .44299 of the Health and Safety Code. Notwithstanding Section 44299.1 of the Health and Safety Code, moneys in the account shall be available, upon appropriation, for funding programs that reduce emission of particulate matter from heavy-duty engines in the state. (2) Fifty million dollars ($50,000,000) of the proceeds of the bonds issued pursuant to this division shall be deposited in the account. (3) It is the intent of the people to achieve the maximum possible reductions in particulate matter in the ambient air of the state, and that moneys in the account be appropriated to fund programs that reduce emissions of particulate matter from heavy-duty engines in the state, including programs that offset the cost of the use of alternative diesel fuels verified by the State Air Resources Board to http://www.leginfo.ca.govJpub/bilUsen/sb 1601-1650/sb .1647 bill 20020617 amended asm.... 7/9102 reduce emissions of particulate matter from heavy-duty engines in the state. (g) .Water related infrastructure projects, as provided for in this subdivision. Eighty million dollars ($80,000,000) of the proceeds of the bonds issued pursuant to this division shall be allocated to provide grants to build water-related infrastructure in accordance with paragraphs (2) to (4), inclusive. (2) From the proceeds of the bonds issued pursuant to this ~3i~ricina, tha division: (A) The sum of twenty million dollars ($20,000,000) shall be deposited in the Safe Drinking Water State Revolving Fund created by Section 116760.30 of the Health and Safety Code. (B) The sum of twenty million dollars ($20,000,000) shall be deposited in the Water Recycling Subaccount created by Section 78621 of the Water Code, to be used for the purposes set forth in Article 3 (commencing with Section 78620) of Division 24 of the Water Code. (3) (A) The Urban Water Conservation Account is hereby created in the fund. The sum of twenty million dollars ($20,000,000) of the proceeds of the bonds issued pursuant to this division shall be deposited in the account,. and shall be used by the Department of Water Resources for grants and loans awarded by the department to local agencies and water utilities for the purposes of funding urban water conservation projects. Grants and loans may be awarded to local water agencies. Loans may be awarded to investor-owned water utilities. Awards for grants and loans shall be made through a competitive process. (B) A project funded through the Urban water Conservation Account may not receive more than five million dollars ($5,000,000) in loan or grant proceeds from the Department of Water Resources. Projects eligible for grant and loan funding under this paragraph include any water conservation program or project to implement best management practices under the Memorandum of Understanding on Urban Water Conservation in California, as administered by the California Urban Water Conservation Council, and any other capital or programmatic project that will result in reduced demand or increased efficiency at the consumer level. (4) (A) The sum of twenty million dollars ($20,000,000) of the proceeds of the bonds issued pursuant to this division shall be deposited in the Contaminant Removal Program Subaccount, which is hereby created in the fund. (B) The State Department of Health Services may expend the money in that Subaccount for the purposes of providing grants or loans for pilot projects and demonstration projects for drinking water disinfecting projects using ultraviolet technology and ozone treatment and for treatment and removal of any of the following contaminants: (i) Petroleum products, such as MTBE and BTEX. (ii) N-Nitrosodimethylamine (NDMA). (iii) Perchlorate. (iv) Radionuclides, such as radon, uranium, and radium. (v) Pesticides and herbicides. (vi) Heavy metals, such as arsenic, mercury, and chromium. (vii) Pharmaceuticals and endocrine disrupters. (C) The State Department of Health Services shall award loans and grants from the Contaminant Removal Program Subaccount to Local agencies and water utilities for the purposes of funding pilot projects and demonstration projects pursuant to subparagraph (B). Grants and loans may be awarded to Ioca1 water agencies. Loans may be awarded to investor-owned water utilities. Awards for grants and loans shall be made through a competitive bidding process. CHAPTER 3. FISCAL PROVISIONS °"64060. Bonds in the total amount of one billion forty-five million dollars ($1,045,000,000), exclusive of refunding bonds, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this division and to be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5. The bonds, when sold, shall be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable. 64061. The bonds authorized by this division shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State http://www.leginfo.ca.gov/pubibilUsen/sb_1601-1650/sb_ 1647 bill 20020617 amended asm.... 7/9/02 i use. v ~i i General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2), and all of the provisions of that law apply to the bonds and to this division and are hereby incorporated in this division as though set forth in full in this division. 64062. Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this division, the California Economic Stimulus and Public Infrastructure Security and Investment Finance Committee is hereby created. For purposes of this division, the California Economic Stimulus and Public Infrastructure Security and Investment Finance Committee is "the committee" as that term is used in the State General Obligation Bond Law. The committee consists of the Controller, the Treasurer, the Director of Finance, and the executive director of the bank, or their designated representatives. A majority of the committee may act for the committee. 64063. For purposes of the State General Obligation Bond Law, the state agency that is responsible for administering each program described in Section 64056 is designated the "board^ for purposes of the administration of that program. 64064. The committee shall determine whether or not it is necessary or desirable to issue bonds and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time. 64065. There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act which is necessary to collect that additional sum. 64066. Notwithstanding Section 13340, there is hereby continuously appropriated from the General Fund in the State Treasury, for the purposes of this division, an amount that will equal the total of the following: (a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this part, as the principal and interest become due and payable. (b) The sum that is necessary to carry out the provisions of Chapter 2 {commencing with Section 64055}, appropriated without regard to fiscal years. 64067. For the purposes of carrying out this division, the Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds which have been authorized by the committee to be sold for the purpose of carrying out this division. Any amounts withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund, plus the interest that the amounts would have earned in the Pooled Money Investment Account, from money received from the sale of bonds for the purpose of carrying out this division. 64068. The Department of Finance may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Rccount, in accordance with Section 16312, for the purposes of carrying out this division. The amount of the request shall not exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold for the purpose of carrying out this division. The board shall execute any documents as are required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the department in accordance with this division. 64069. Notwithstanding any provision of this division or the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this division and there is a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes; subject to designated conditions, the Treasurer may maintain separate accounts for the investment of bond proceeds and the investment earnings on those proceeds, and the Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law, or to take any other action with respect to the investment and use of bond proceeds required or desirable under federal law so as to maintain the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state. 64070. All money deposited in the fund that is derived from premium and accrued interest on bonds sold shall be reserved in the http://www.leginfo.ca.gov/pub/biWsen/sb_1601-1650Isb 1647. bill 20020617 amended asm.... 7/9/02 a agc i va l fund and shall be available for transfer to the General Sund as a credit to expenditures for bond interest. 64071. The bonds may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2, which is a part of the State General Obligation Bond Law. Approval by the voters of the state of the issuance of the bonds includes the approval of the issuance of any bonds issued to refund any bonds originally issued or any previously issued refunding bonds. 64072. The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this division are not "proceeds of taxes" as that tern is used in Article XIII B of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article. SEC. 3. Section 2 of this act shall take effect upon the adoption by the voters of the California Economic Stimulus and Public Infrastructure Security and Investment Bond Act of 2002, as set forth in Section 2 of this act. SEC. 4. (a) Notwithstanding the requirements of any other provision of law, the Secretary of State shall submit Section 2 of this act to the voters at the next statewide general election. (b) The Secretary of State shall include, in the ballot pamphlets mailed pursuant to Section 9094 of the Elections Code, the information specified in Section 9084 of the Elections Code regarding the bond act contained in Section 2 of this act. If that inclusion is not possible, the Secretary of State shall publish a supplemental ballot pamphlet regarding this act to be mailed with the ballot pamphlet. if the supplemental ballot pamphlet cannot be mailed with the ballot pamphlet, the supplemental ballot pamphlet shall be mailed separately. SEC. 5. (a) Notwithstanding any other provision of law, with respect to the California Economic Stimulus and Public Infrastructure Security and Investment Bond Act of 2002, all ballots of the election shall have printed thereon and in a square thereof, exclusively the words: "California Economic Stimulus and Public Infrastructure Security and Investment Bond Act of 2002" and in the same square under those words, the following in 8-point type: "This act provides one billion forty-five million dollars ($1,045,000,000) to finance a program for economic stimulus and infrastructure investment. (At this point, the Attorney General shall include the financial impact summary prepared pursuant to Section 9087 of the Elections Code and Section 88003 of the Government Code.)" opposite the square, there shall be left spaces in which the voters may place a cross in the manner required by law to indicate whether they vote for or against the act. (b) Notwithstanding Sections 13247 and 13281 of the Elections Code, the language in subdivision (a) shall be the only language included in the ballot label for the condensed statement of the ballot title, and the Attorney General shall not supplement, subtract from, or revise that language, except that the Attorney General may include the financial impact summary prepared pursuant to Section 9087 of the Elections Code and Section 88003 of the Government Code. The ballot label is the condensed statement of the ballot title and the financial impact summary. (c) Notwithstanding Section 13282 of the Elections Code, the public shall be permitted to examine the condensed statement of the ballot title in subdivision (a) for not more than eight days, and the financial impact statement from the time it is received by the Secretary of State until the end of the eight days. Any voter may seek a writ of mandate for the purpose of requiring any statement of the ballot label, or portion thereof, to be amended or deleted only within that eight-day period. (d) where the voting in the election is done by means of voting machines used pursuant to law in a manner that carries out the intent of this section, the use of the voting machines and the expression of"the voter's choice by~means thereof are in compliance with this section. SEC. 6. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: in order that the California Economic Stimulus and Public Infrastructure Security and Investment Bond Act of 2002, set forth in Section 2 of this act, may be submitted for voter approval at the earliest possible time, it is necessary that this act take effect immediately. httpa/www.leginfo.ca.gov/pub/billlsen/sb _ 1601-1650/sb 1647 bill 20020617 amended asm.... 7/9/02 i ~., .... ,., ., s This Agenda contains a brief genera! description of each item to be considered. Copies of the Staff reports or other written documentation relating fo 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. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603- 0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN iT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. ~ ~~ REC IV aTY ~ LYNWOOD CITY CLERKS OFFICE aus t 5,a~a- ~I+~t ' 6 AGENDA ITEMS ON FILE FOR CONSIDERATION ARTURO REYES PRESIDENT AT 7HE REGULAR MEETING OF THE LYNWOOD PUBLIC FINANCE AUTHORITY TO BE HELD ON AUGUST 20, 2002 6:00 P.M. COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 FERNANDO PE~ROZA VICE PRESIDENT PAUL H. RICHARDS, II MEMBER LOUIS BYRD MEMBER RAMON RODRIGUEZ MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, !I Ramon Rodriguez Arturo Reyes CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT 1T tS ALL RIGHT FOR THE~LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) 4. MINUTES OF PREVIOUS MEETING Regular Meeting of August 6, 2002 ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON SEPTEMBER 3, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING AUGUST 6,.2002 The Public Finance Authority of the City of Lynwood met in a Regular Meeting at 11330 Bullis Road on the above date at 6:15 p.m. Vice President Pedroza presiding. Members Byrd, Richards, and Rodriguez answered the joint roll call for all agencies. President Reyes was absent. Vice President Pedroza stated for the record President Reyes would later join the Members for the National Night Out Event. Also present were Chief Administrative Officer Gonzales, Interim City Attorney Montgcsmery, and Secretary Hooper. Treasurer Pygatt was absent. Secretary Hooper announced that the agenda had been posted in accordance with ,the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE ADJOURNMENT Having no further discussion, it was moved by Member Richards, seconded by Member Rodriguez and carried to continue the Regular Council Meeting to August 7, 2002 at 6:00 p.m. Due to the National Night Out Event. Arturo Reyes, President Andrea L. Hooper, City Clerk ~~ PP1<V ~_~ I NOTICE THE SPECIAL LYNWOOD PUBLIC FINANCE AUTHORITY MEETING OF AUGUST 19, 2002 CONTINUED TO TUESDAY, AUGUST 20, 2002 AT 9:00 A.M. 1N THE COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 TO DISCUSS THE .BUSINESS OF THE LYNWOOD PUBLIC FINANCE AUTHORITY AS POSTED IN THE AGENDA FOR THE MEETING OF AUGUST 19, 2002. This Agenda contains a brief general description of each item to be considered. Copies of the 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 inspecfion. A person who has a quesfion concerning any of the agenda items may call the City Manager at {390) 603- 0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT 1N TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. _ _ _ "AGENDA ITEMS ON FILE FOR CONSIDERATION E C E V E D I AT THE SPECIAL MEETING OF 1 CITY OF LYNWOOL~ THE LYNWOOD PUBLIC FINANCE AUTHORITY CITY CLERKS OF~lCE TO BE HELD ON AUGUST 19, 2002 AUG 1 5 20(x: 10:00 A.M. AY ~ COUNCIL CHAMBERS 7181~~ ~14l5~ 11330 Bullis Road, Lynwood, CA 90262 ~J ~%~~" ~L~~ ARTURO REYES PRESIDENT FERNANDO PEDROZA LOUIS BYRD VICE PRESIDENT MEMBER PAUL H. RICHARDS, II RAMON RODRIGUEZ MEMBER MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) 'PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) 4. PROPOSED FY 02-03 BUDGET PLAN COMMENTS: At the April 18, 2002 Special City Council Meeting, staff presented athree-year projection of all funds based upon current expenditure level. Based on this analysis, the General Fund was projected in deficit in FY 2003-2004 fiscal year if current levels of expenditure are maintained. Given that scenario, the preparation for the proposed FY 2002-2003 budget needs to take into consideration reducing cost and increasing revenue in order to forestall a deficit Staff has since adjusted the estimates and refined the three-year projection. Since April 18 staff has derived improved estimates on the actual expenditures and revenues to use for the base year as the starting point for the projection. Staff has prepared a budget plan that includes corrective measures if implemented would forestall a deficit in FY 04-05. The corrective measures are as follows: decrease in operational cost, reorganization of departments for greater efficiency, enhancement of ongoing revenues, consideration of one-time potential revenues, and scheduling payback of general fund liabilities. The submitted budget plan is not a finished budget. Its purpose is to provide the City Council with a basic document, which after Council review and input can be used in preparation of the line item budget. The City Manager will bring back a proposed FY 02-03 line item budget for a public hearing and Council adoption in approximately three weeks. RECOMMENDATION: Staff recommends that the Lynwood Public Finance Authority to review, discuss and provide direction on the proposed budget ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON AUGUST 20, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on hle in the Oftrce of the Cify Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager at (310) fi03- 0220, ext. 200. Procedures forAddressinq the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT iN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL 1N THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE SPECIAL MEETING OF THE LYNWOOD PUBLIC FINANCE AUTHORITY TO BE HELD ON AUGUST 10, 2002 y~~ 9:00 A.M. ~~~i'1~ "~"'"+ COUNCIL CHAMBERS 11330 Bullis Road, Lynwood, CA 90262 08-08-02P09:53 RCVD ARTURO REYES t PRESIDENT ~ (_ a~ Mme'" FERNANDO PEDROZA LOUIS BYRD VICE PRESIDENT MEMBER PAUL H. RICHARDS, II RAMON RODRIGUEZ MEMBER MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) 4. PROPOSED FY 02-03 BUDGET PLAN COMMENTS At the April 18, 2002 Special City Council Meeting, staff presented athree-year projection of all funds based upon current expenditure level. Based on this analysis, the General Fund was projected in deficit in FY 2003-2004 fiscal year if current levels of expenditure are maintained. Given that scenario, the preparation for the proposed FY 2002-2003 budget needs to take into consideration reducing cost and increasing revenue in order to forestall a deficit. Staff has since adjusted the estimates and refined the three-year projection. Since April 18 staff has derived improved estimates on the actual expenditures and revenues to use for the base year as the starting point for the projection. Staff has prepared a budget plan that includes corrective measures if implemented would forestall a deficit in FY 04-05. The corrective measures are as follows: decrease in operational cost, reorganization of departments for greater efficiency, enhancement of ongoing revenues, consideration of one-time potential revenues, and scheduling payback of general fund liabilities. The submitted budget plan is not a finished budget. Its purpose is to provide the City council with a basic document, which after Council review and input can be psed in preparation of the line item budget. The City Manager will bring back a proposed FY 02-03 line item budget for a public hearing and Council adoption in approximately three weeks. RECOMMENDATION: .~ Staff recommends that the Lynwood Public Finance Authority to review, discus~,and provide direction on the proposed budget ''~ ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON AUGUST 20, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other wrrffen documentation relating to each item of business referred to on the Agenda are on file in the Office of fhe City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the Cify Manager of (310) 603- 0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE -CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE SPECIAL MEETING OF THE LYNWOOD PUBLIC FINANCE AUTHOR TO BE HELD ON AUGUST 8, 2002 6:00 P.M. COUNCIL CHAMBERS 11330 Bullis Road, Lynwood, CA 90262 ARTURO REYES PRESIDENT FERNANDO PEDROZA VICE PRESIDENT PAUL H. RICHARDS, II MEMBER ~~~ ITY__~~___ _ _ ~~C~1V~_~____ CITY OF LYNWOOU CITY CLERKS OFFICE I SI~I~ILIu111~1$1415,6 ~L ~- ~~ LOUIS BYRD MEMBER RAMON RODRIGUEZ MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES CALL TO ORDER ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, I1 Ramon Rodriguez Arturo Reyes CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part ill, Paragraph 5.) PROPOSED FY 02-03 BUDGET PLAN COMMENTS: At the April 18, 2002 Special City Council Meeting, staff presented athree-year projection of all funds based upon current expenditure level. Based on this analysis, the General Fund was projected in deficit in FY 2003-2004 fiscal year if current levels of expenditure are maintained. Given that scenario, the preparation for the proposed FY 2002-2003 budget needs to take into consideration reducing cost and increasing revenue in order to forestall a deficit. Staff has since adjusted the estimates and refined the three-year projection. Since April 18 staff has derived improved estimates on the actual expenditures and revenues to use for the base year as the starting point for the projection. Staff has prepared a budget plan that includes corrective measures, which will achieve a savings of approximately $1.8 million dollars in the general fund if implemented and would forestall a deficit in FY 04-05. The corrective measures are as follows: decrease in operational cost, reorganization of departments for greater efficiency, enhancement of ongoing revenues, consideration of one-time potential revenues, and scheduling payback of general fund liabilities. The submitted budget plan is not a finished budget. Its purpose is to provide the City Council with a basic document which after Council review and input can be used in preparation of the. line item budget. The City Manager will bring back a proposed FY 02-03 line item budget for a public hearing and Council adoption in approximately three weeks. RECOMMENDATION: Staff recommends that the Lynwood Public Finance Authority members review, discuss and provide direction on the proposed budget plan. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON AUGUST 20, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. NOTICE THE REGULAR LYNWOOD PUBLIC FINANCE AUTHORITY MEETING OF AUGUST 6, 2002 RECESSED TO WEDNESDAY, AUGUST 7, 2002 AT 6:00 P.M. 1N THE COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 TO DISCUSS THE BUSINESS OF THE LYNWOOD PUBLIC FINANCE AUTHORITY AS POSTED 1N THE AGENDA FOR THE MEETING OF AUGUST 6, 2002. This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on frle in the Offrce of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager at (390) 603- 0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERA AT THE REGULAR MEETING OF THE LYNWOOD PUBLIC FINANCE AUTH(~I CITY OF LYNwCOu CITY CLERKS OFFICE TO BE HELD ON AUGUST 6, 2002 6:00 P.M. COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 ARTURO REYES PRESIDENT ,. FERNANDO PEDROZA VICE PRESIDENT PAUL H. RICHARDS, II MEMBER QUG 0 t ?~~? Pil 7~,s,~l~u~ulu~ll~l~l4~5~e 117117"````~~~~~~~~i~iTTTTTT~~~~11~~1111 LOUIS BYRD MEMBER RAMON RODRIGUEZ MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, -Part III, Paragraph 5.) 4. MINUTES OF PREVIOUS MEETING Regular Meeting, July 2, 2002 Regular Meeting, July 16, 2002 TREASURER'S QUARTERLY INVESTMENT REPORT Comments: The purpose of this item is to have the Lynwood Public Finance Authority review the Treasurer's Quarterly Investment Report as required by recently enacted State Statues. Recommendations: The City Treasurer respectfully recommends that the Lynwood Public Finance Authority receive and file the attached Quarterly Investment Report for the quarter ending March 31, 2002. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON AUGUST 20, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLlS ROAD, CITY OF LYNWOOD, CALIFORNIA. LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING JULY 2, 2002 The Public Finance Authority of the City of Lynwood met in a Regular Meeting at 11330 Bullis Road on the above date at 6:25 p.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez, and Reyes answered the joint roll call. for all agencies. Also present were Chief Administrative Officer Gonzales, Deputy City Attorney Sylva, City Clerk Hooper, and City Treasurer Pygatt =- Interim City Attorney Montgomery was absent. City Clerk Hooper announced that the agenda had been posted. in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4: MINUTES OF PREVIOUS MEETING It was moved by Vice President Pedroza, seconded by Member Richards and carved to approve the following minutes. • Regular Meeting, June 4, 2002 Item #5: LOCAL PUBLIC SAFETY FUNDING Two of the most popular grant sources from the federal government for funding local public safety are the Community Oriented Policing Services (COPS) and the Local Law Enforcement Block Grant (LLEBG). Both of these programs assist in increasing ]aw enforcement to local government due to their basic requirements of supplementing current funding levels of local governments. In President Bush's fiscal year 2003 budget proposal, he is proposing a 90% budget cut for local public safety and crime prevention programs. The most severe budget cuts will be imposed on COPS and LLEBG. Vice President Pedroza concerned with President Bush's proposed budget cut for COPS and LLEBG programs. Chief Administrative Officer Gonzales stated that support letters could be written, asking to retain funds for these programs. It was moved by Vice President Pedroza, seconded by Member Rodriguez and carried to receive and file this item and authorize letters of support to be generated relative to restoration of local public safe funding. ADJOURNMENT Having no further discussion, it was moved by Vice President Pedroza, seconded by Member Byrd and carried to adjourn the meeting at 6:27 p.m. Arturo Reyes, Mayor .Andrea L. Hooper, City Cl k 8QE>,1DA IY'EM LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING JULY 16, 2002 The Public Finance Authority of the City of Lynwood met in a Regulaz Meeting at 11330 Bullis Road on the above date at 7:53 p.m. President Reyes presiding. Members Byrd, Pedroza, Rodriguez, and Reyes answered the joint roll call for all agencies. __ Member Richazds arrived at 6:22 p.m. Also present were Chief Administrative Officer Gonzales, Interim City Attorney Montgomery, City Clerk Hooper, and City Treasurer Pygatt City Clerk Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4: MINUTES OF PREVIOUS MEETING It was moved by Vice President Pedroza, seconded by Member Byrd and carried to approve the following minutes. • Regulaz Meeting, June 18, 2002 • Special Meeting, June 27, 2002 Item #5: CALIFORNIA ECONOMIC STIMULUS AND PUBLIC INFRASTURE SECURITY AND INVESTMENT BOND ACT. OF 2002 Existing law authorizes the Legislature to approve and place measures on the ballot at a statewide election so that the voters may determine whether to approve the issuance of general obligation bonds for the purpose set forth in the measure. According to some economic projections, the State of California Economic Stimulus and Public Infrastructure Security and Investment Bond Act of 2002 to be placed on the statewide election ballot for November 2002. If this obligation bond were approved, $1,045 billion would be allocated for a variety of infrastructure programs. By General Consent, it was moved by Member Richards, seconded by Vice President Pedroza and carried to receive and file this item. ADJOURNMENT Having no fiu-ther discussion, it was moved by Member Byrd, seconded by Member Rodriguez and carried to adjourn the meeting at 7:54 p.m. Arturo Reyes, Mayor Andrea L. Hooper, City Clerk DATE: August 6, 2002 TO: THE HONORABLE PRESIDENT AND MEMBERS OF THE AUTHORITY FROM: Iris Pygatt, City Treasurer ~~ ~ ' l:.~ SUBJECT: TREASURER'S QUARTERLY INVESTMENT REPORT PURPOSE: The purpose of this item is to have the Lynwood Public Finance Authority review the Treasurer's Quarterly Investment Report as required by .recently enacted State Statues. BACKGROUND: In response to the crisis caused by the Orange County investment pool, the State Legislature in 1995 enacted SB564 and S6866. These laws were enacted as Sta#e Statutes to impose certain mandates regarding investment with public funds. The statutes have imposed the following mandates: 1. Annual adoption of an Investment Policy that incorporates changes mandated by the State. 2. Quarterly Investment Reports presented to the Legislative Body or Board Members. 3. Restriction on the use of certain investment instruments. The attached Treasurer's Report have been prepared to provide the following information: 1. Types of investments (including principal, market value rates, and maturity dates). 2. List of various bank accounts with banking institutions. 3: Statement informing each Agency (City, LRA, LPFA and LII) that is expected to have sufficient liquid funds to meet its pooled expenditure requirements for the next six (6) months. 4. Statement informing the Lynwood Public Finance Authority that the investment portfolio conforms with the adopted investment policy. RECOMMENDATION: The City Treasurer respectfully recommends that the Lynwood Public Finance Authority receive and file the attached quarterly Investment Report for the quarter ending March 31, 2002. JU~A ITEM ~.J TREASURER' S QUARTERLY INVESTMENT REPORT MARCH 31, 2002 ~. GITY OF LYNWOOD PORTFOLIO MASTER SUMMARY MARCH 31, 2002 AVERAGE --- YTM --- BOOK PERCENTAGE (°k) DAYS TO 360 365.. _ VALUE INVESTMENTS _ PORTFOLIO MATURITY EQUIVALENT . MANAGED POOL INVESTMENT $ 15,074,868.32 Certificate of Deposit $ 6,973,556.48 68.37 31.63 1 NIA 1 1 N/A NIA TOTAL INVESTMENTS AND AVERAGES 22,048,424.80 100% CASH Passbook/Checking - No Yield Totals (not included in yield calculations) TOTAL INVESTMENTS 22,048,424.80 1 certify that this report accurately reflects all pooled investment policy statements IRIS PYGATT adopted by the City Council on August 15, 1995. A copy of this policy is available at the office of the City Clerk. The CITY TREASURER Investment Program herein shown provides sufficient cash flow liquidy to meet 3 months estimated expenditures. The pricing of the securities are done by Union Bank of California, US Bank, and Interactive Data Services. CITY OF LYNWOOD INVESTMENT PORTFOLIO DETAILS SUMMARY MARCH 31, 2001 INVESTMENT BOOK FACE MARKET STATED RATE --- YTM --- 350 365 MATURITY DATE DAYS TO MAT. ISSUER VALUE VALUE VALUE MANAGE POOL INVESTMENTS LAIF GEN'L CITY $14,224,332.56 LAIF LRA $730,678.90 U.S. HIGHMARK $119,856.86 TOTAL $15,074,- 8- 68.32 Certificate of Deposit US BANK $14,224,332.56 $14,224,332.56 2.96% $730,678.90 $730,678.90 2.96°k $119,856.86 $11.9,856.86 1.71 $15,074,868.32 $15,074,868.32 Certificate of Deposit 3,110,495.69 3,110,495.69 3,110,495.69 Certificate of Deposit 3,863,060.79 3,863,060.79 3,863,060.79 CITY OF LYNWOOD RECEIVED INTEREST PAYMENT BY ISSUER MARCH 31, 2002 CURRENT STATED DATE AMOUNT INVESTMENT ISSUER BALANCE RATE RECD RECD LAI F-CITY $14, 224, 332.56 2.96% 1 /15/2002 $118, 995.78 LAIF - LRA $730,678.90 2.96% 1/15/2002 $9,764.86 U.S. HIGHMARK $119, 856.86 1.71 % 3/1 /2002 $512.06 TOTAL $15,074,868.32 $128,272.70 `` CITY OF LYNWOOD INVESTMENT ISSUER RECEIVED INTEREST PAYMENT BY ISSUER MARCH 31, 2002 CURRENT MATURITY STATED BALANCE DATE RATE INTEREST RECEIVED US Bank CD CD 3,110,495.69 N/A 3,863,060.79 N/A 1.490% $12,943.41 1.510% $14,974.09 TOTAL 6,973,556.48 627,917.50 t„ CITY OF LYNWOOD RECEIVED INTEREST PAYMENT BY ISSUER 'MARCH 31, 2002 INVESTMENTS FACE AVERAGE MATURITY STATED VALUE BOOK VALUE DATE RATE INTEREST PASSBOOKS/CHECKING CITY -US BANK $1,931.47 $1,931.47 0.77% $3.42 CITY - US BANK HCDA $190,063.89 $190,063.89 1.50% $541.47 CITY - US BANK LYNWOOD TTEES. HUD $43,908.17 $43,908.17 1.50% $90.95 LRA - US BANK ALAMEDA TAX INC. $58,112.84 $58,112.84 1.24% $165.56 LRA - US BANK $2,386.30 $2,386.30 1.50% $1 44 LYN. TR. CENTER . UNF. WORKERS ACC. LRA - BANK OF AMERICA $136,528.40 $136,528.40 0.50% $170.45 LII - US BANK $148,180.40 $148,180.40 1.24% $422.14 TOTAL $581,111.47 $581,111.47 $1,395.43 CITY OF LYNWOOD INVESMENT PORTFOLIO DETAILS MARCH. 31, 2001 CHECKING ACCOUNTS CITY ACCOUNTS 1. GENERAL ACCOUNT 2. PAYROLL ACCOUNT 3. PETTY CASH ACCOUNT 4. WORKERS COMPENSATION 5. CITY OF LYNWOOD FLEXIBLE SPENDING ACCOUNT 6. CITY OF LYNWOOD HOME PROGRAM 7. ARNORLD LITKE FOUNDATION 8. LRA - ALAMEDA PROJECT 9. LRA - AREA A TAX INCREMENT 10. REDEVELOPMENT FUND 11. LII - CHECKING ACCOUNT TRUSTEE ACCOUNTS CITY OF LYNWOOD FISCALAGENT INVESTMENTS MARCH 31, 2002 PURCHASE PAR MARKET DATE VALUE VALUE Tax Allocation Bonds, Series 1999, Alameda Oct-99 1,310,000 108,079.52 U S Bank Coporate Trust Services Lynwood Public Financing Authority May-93 8,650,000 1,389,614.57 Revenue Bonds, 1993 Series A US Bank Coporate Trust Services Lynwood Public Financing Authority Oct-95 4,500,000 2,332,097.29 Water System Improvement Project, Series 1995 U S Bank Corporate Trust Services Lynwood Public Financing Authority Oct-99 10,235,000 798,657.67 Tax Allocation Bonds, Series 1999,Series A U S Bank Corporate Trust Services Lynwood Public Financing Authority tlct-99 3,425,000 266,017.34 Tax Allocation Bonds, Series B U S Bank Corporate Trust Services Lynwood Public Financing Authority Water System Improvement Project, Series 1999 Oct-99 5,850,000 5,079,064.45 US Bank Coporate Trust Services TRUSTEE ACCOUNTS PURCHASE PAR MARKET DATE __ VALUE VALUE Lynwood Public Financing Authority Oct-99 3,760,000 1,608,162.86 Lease Revenue Bonds, Series 1999 US Bank Corporate Trust Services Lynwood Public Financing Authority Sep-96 1,500,000 669636.41 Revenue Bonds -Civic Project Series 1996 US Bank Corporate Trust Services ,ti This Agenda contains a brief general description of each item to be considered. Copies of the 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. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603- 0220, ext. 200. , Procedures for Addressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. ~, ~ AGENDA ITEMS ON FILE FOR CONSIDERATION ~ ~~~~ AT THE REGULAR MEETING OF CITY of I.YNwooU ~ THE LYNWOOD PUBLIC FINANCE AUTHORITY ciTY c~ERKS oF~icE TO BE HELD ON SEPTEMBER 17, 2002 CEP 12 20t1~ 6:00 P.M. COUNCIL CHAMBERS 7!$Igl~l~I~l1lZI~14l5 6 11330 BULLIS ROAD, LYNWOOD, CA 90262 ~\~'~~~ ARTURO REYES e; u, ~,, PRESIDENT ~: FERNANDO PEDROZA LOUIS BYRD VICE PRESIDENT MEMBER PAUL H. RICHARDS, II RAMON RODRIGUEZ MEMBER MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES CALL TO ORDER ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS {Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE. MEETING. . (The Ralph M. Brown Act, Government Code Section 54950-54962,. Part III, Paragraph 5. ) ' 4. MINUTES OF PREVIOUS MEETING None 5. UPDATE ON THE STATE BUDGET Comments: On September 5, 2002, Governor Davis signed the State budget. The League of California Cities reports that the budget appropriates a total of $98.9 billion, $2.4 billion less than the $101.3 billion appropriated in the 2001-02 fiscal year. Tota- General Fund contributions fell to $76.7 billion, down from $76.9 billion in last year's budget. The League further reports that although certain budget items impacting local governments remained intact the counties will experience $1 billion in cuts and program costs shifts, which would have a direct impact on city residents. Furthermore, a $75 million one-year ERAF Shift of property taxes from redevelopment agencies to the State will also impact redevelopment agencies. Recommendation: Staff recommends for the Members of the Public Finance Authority to receive and file this item. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON OCTOBER 1, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. ~ ~NllA TT~l.~ 1 2 DATE: September 17, 2002 TO: HONORABLE CHAIRMAN AND MEMBERS OF THE AGENCY FROM: Faustin Gonzales, Executive Director SUBJECT: UPDATE ON THE STATE BUDGET PURPOSE: To have the members of the Public Finance Authority receive and file this item. BACKGROUND: On September 5, 2002, Governor Davis signed the State budget. The League of California Cities reports that the budget appropriates a total of $98.9 billion, $2.4 billion less than the $101.3 billion appropriated in the 2001-02 fiscal year. Total General Fund contributions fell to $76.7 billion, down from $76.9 billion in last year's budget. The League further reports that although certain budget items impacting local governments remained intact the counties will experience $1 billion in cuts and program costs shifts, which would have a direct impact on city residents. Furthermore, a $75 million one-year ERAF Shift of property taxes from redevelopment agencies to the State will also impact redevelopment agencies. ANALYSIS The League summarizes some of the key features of the State budget package. 1. The League reports that cities should anticipate receiving the same level of VLF funding in 2002-2003 as they did last year. 2. COPS/Juvenile Justice Program, Booking Fees and High Technology Grants have been fully funded. 3. Redevelopment Agencies are required to shift funds to ERAF for a period of one year subject to the same formulas and requirements that governed the similar shift in the 92-93 fiscal year. This could mean a loss to Lynwood Redevelopment Agency of $114,000. 4. Most State funded mandates have been limited to $1,000, with the remaining amounts owed deferred for an unspecified period of time. 5. A bill to dedicate a portion of the State's General Fund to infrastructure was included in the budget passed by the legislature on August 31 (Twenty-First Century Infrastructure). 6. Sale of the tobacco assets is authorized to bring in a net $4.5 billion. 7. Department of Finance was given authority to make up to an additional $750 million in expenditure cuts by reducing appropriations for state operations by up to 5%. 8. Department to Finance must eliminate 1,000 positions in state government by June 20,2004. 9. Total expenditure authorizations from General Fund for 2003-04 fiscal year shall be limited to the total revenues to the General Fund for the 2003-04 fiscal year. 10. The Speaker's Commission on Structural Challenges to Budgeting in California is established. w RECOMMENDATION: Staff recommends for the Members of the Public Finance Authority to receive and file this item. League of California Cities News Updates > Governor Signs Budget Bill Governor Signs Budget Bill MIXED Page 1 of 3 At long last, California has a budget, signed by the Governor on Thursday, September 5. The budget appropriates a total of $98.9 billion, $2.4 billion less than the $101.3 billion appropriated in the 2001-02 fiscal year. Total General Fund contributions fell to $76.7 billion, down from $76.9 billion in last year's budget. The Governor asserted that the budget "preserves this Administration's core values by sustaining funding in the areas of education, public safety, vital seniors' programs, and health insurance for children". For local govemment, the record is mixed. The good news is that the biggest potential impact on local govemment did not happen. The budget preserves the $3.7 billion backfill of Vehicle License Fees (VLF) to cities and counties -atop priority for the League and the LOCAL coalition ("Leave Our Community Assets Local") in which cities and the League have actively participated since last March. Local public safety services were also largely preserved: the COPS and Juvenile Justice programs were fully funded, as were booking fee reimbursements to cities. In a year with a huge $23.6 billion state deficit, these are huge accomplishments. City officials and their LOCAL coalition partners should congratulate themselves on having achieved them, and thank the Govemor and their legislators for preserving these key items. But local govemment did take hits. While cities emerged from the budget process in relatively good form, counties will experience about a $1 billion in cuts and program cost shifts. City residents will be impacted by the cuts to county services, and cities with redevelopment agencies will be further impacted by a $75 million one-year ERAF shift of property taxes from redevelopment agencies to the state. The following summarizes some of the key features of the budget package. The Vehicle License Fees (VLF) -the "trigger" to lower the offset (to vehicle owners) was not pulled. The bacldrl! payments from the state to local govemmenf remain intact. Cities and counties can count on receiving the same level of VLF funding in 2002-03 fiscal year as they did last year. 1. Public Safety Funds. Key programs will receive the following funding: a. Booking Fees ($38m) - (fully funded) b. COPS/Juvenile Justice Program ($232m) (fully funded) c. High Technology Grants ($18.5m -- $16.9 below 01-02 fiscal year) 2. State Mandates: Most state funded mandates have been limited to $1,000, with the remaining amounts owed deferred for an unspecified period of time. Adjustments to the mandate process were also made: a. Test claims must be filed no later than 3 years following the date the mandate became effective, or, in the case of mandates that became effective before Jan. 1, 2002, one year from the effective date of the budget. b. Interest will be charged on any claims, audited by the Controller, where a reimbursement is found to be due to the State. c. Previously, claims for initial reimbursement that are filed late could be reduced by 10% of the amount that would have been allowed, not to exceed $1,000. The $1,000 limit has been deleted. d. The Controller will deliver annual reports to the Legislature, and the Legislative Analyst will review make recommendations on whether certain mandates should be repealed, funded, suspended or modified. e. Currently, the minimum claim amount, by an individual agency, or a county on behalf of specified agencies within their geography, is $200. This amount is raised to $1,000. 3. Redevelopment Agencies are required to shift funds to ERAF for a period of one year, subject to the same formulas and requirements that governed the similar shift in the 92-93 FY. In addition, redevelopment agencies that borrowed funds to cover the 92-93 FY obligations, and which are required to make further payments on that loan prior to June 30, 2003, are allowed to delay the repayment date of the loan for one year. http://www.cacities.org/doc.asp?printableryes&ID=6161 9/9/2002 League of California Cities Page 2 of 4. Coastal Resources and Energy Assistance Act (CREA) Existing law requires that 50% of the amount of funds received by the state pursuant to the federal Outer Continental Shelf Lands Act over the amount received in the 1996 calendar year be available, annually, for grants to coastal counties and cities pursuant to the CREA. For the FY 02-03, the above-cited federal funds received by the state will not be allocated. This provision is repealed on Jan. 1, 2004. 5. ACA 71 {Richman -Northridge). This constitutional amendment - to go before voters in 2004 -establishes the Twenty-First Century Infrastructure investment Fund and requires a specified percentage of General fund revenues to be transferred annually to this fund beginning in 2006-07. These funds would be used to finance infrastructure projects related to transportation, education, natural resource preservation, parks, and water, of which 50 percent would be continuously appropriated to local government and 50 percent would be available for state projects. Specifically, it would transfer one percent of General fund revenue in 2006-07 and increase to three percent in 2013-14. The measure requires the State Department of Finance to prepare an annual plan to expend these funds unless the Governor directs another state agency to prepare the plan. 6. Tobacco Sales Taxes. Sale of tobacco assets is authorized to bring in a net $4.5 billion. The large increase in cigarette taxes proposed by the Assembly Democrats a few weeks ago was not adopted. 7. 5% State Operations Cuts. The Department of Finance was given the authority to make up to an additional $750 million in expenditure cuts by reducing appropriations for state operations by up to 5%. These reductions shall be reflected and identified in the 2003-04 Governor's Budget as submitted to the Legislature in early January. This is similar to actions that were taken to adjust expenses for the 01-02 FY budget. 8. Reducing State Employee Positions. There will tie an early retirement program available, to specifically defined state employees that will offer them an additional 2 years' service credit if they retire early. In addition, the Department of Finance must eliminate 1,000 positions in state government by June 30, 2004 (subject to restrictions). This latter item could likely have a greater impact on the 2003-04 budget depending on when the positions are eliminated. 9. Limits on General Fund Expenditures. Total expenditure authorizations from the General Fund for 2003-04 fiscal year shall be limited to the total revenues to the General Fund for the 2003-04 fiscal year. 10. The Speaker's Commission on Structural Challenges to Budgeting in California is established. The commission shall be composed of 12 Members of the Assembly, as follows: the Speaker of the Assembly, who shall serve as chair; the Minority Leader of the Assembly, who shall serve as vice chair; five Members appointed by the Speaker of the Assembly; five Members appointed by the Assembly Minority Leader. Members must be appointed by Dec. 1, 2002 and the commission's work completed by May 1, 2003. In addition to the specifics cited above, the Budget includes a number of fiscal tools, and revenue enhancements aimed at accelerating revenues to the State's General Fund. It enables the State to loan monies from one state fund or account, to another state fund or account (unless prohibited by law). It allows the Board of Equalization to forgive penalties to certain identified taxpayers if they pay required amounts of their taxes due by specified dates ($145m in revenues). If applies property transfer withholding (at 3.5%) to certain properties acquired from an individual ($225m in revenues). It suspends the Net Operating Loss payments for two years {$1.2b in revenue). 1t suspends the Teacher Tax Credit for a year ($1.7b). It t provides for bank bad debt conformity with Federal tax ($285b). And, the budget increases, to 9.3%, the withholding amount on stock options and bonus payments that constitute wages paid on or after Jan. 1, 2002 ($400m in revenues). Here's the full list of budget bills: http://www.cacities.org/doc.asp?printable~es&ID=6161 9/9/2002 League of California Cities Page 3 of 3 i!~siu_no.__. ..~ Ai umor _ ~ ~i5u ect rHR 9fi_ __~1Wesson ____ __ _ __ _ _ iCommission on Bu~i~ in California ~,AB 425_ _ Oro a_ ._ ____ _____ ___ 1;2002-03 Budget Act ~AB 442 _ Budget Cmte. ____ _ _ _ _ __ _ f Health Omnibus _ ~iAB 444 Bud et Cmte_. _ ~IHuman Services Omnibus _ ~;AB 593 I Oropeza _ _ _ _ __ (Unallocated Reductions, Spending Cap, Elimination of - Li ia~ ici ~u wuis nt Omnibus AB 2781 +IOro~eza _____ i!Education AB 2996__~dget Cmte. _~'Transportation Omnibus, ____ _ _ AB 2997 ;(Budget C mte. .!Resources Omnibus ___ ~:A6 2998 _ ;!Budget Cmte._ __ _ ___ _ _ _ ~iCharter Schools Omnibus _ _ ___ .AB 3000 ±(Budget Cmte. _ __ _____ 1General Go vernmen t Om nib us " ;iA6.3_002 ;iBudget Cmte. _= _ _ _ _ _ _ __ __ __ _iLocal Govemment Omnibus (RDA_E_RA F Shift) _ _ r`AB 3004 - iBudget Cmte. _ _ Ci of Millbrae Loan Payment Deferral ---_. _A8 3009 AB 301Q. :iBudget Cmte__ ^Budget Cmte___=_ _ __ ERPA/Natural Heritage_ Tax Credit Su pension ! -- ___iUne~l_o~rment Insurance Altematwe Base Period ACA 11 `SB 1831 _ 581834_ Richman and Canciamilla 'Infrastructure Finance ; iPeace Tobacco Securitization ___--- -- _ ~Budc~etCmte_____ :TransportationLoans__ _________J http://www.cacities.org/doc.asp?printable=yes&ID=6161 9/9/2002 League of California Cities ' Page 1 of 14 Legislative Advocacy > State Budget Alert > Budget Update Budget Update (Updated September 6, 2002) On Thursday, Sept. 5, Governor Gray Davis signed the 2002-03 FY Budget. In doing so, he used his "blue pencil" to veto an additional $220m in General Fund monies, and set aside $143 m in Education monies for an education reserve. The largest reductions were in eliminating the planned expansion of the healthy family program to parents ($52m) and County administrative expenses for Med-Cal and Food stamps ($36m). City programs were left in tact For more details on the budget -click here . BUDGET ACTIONS UPDATE • Environmental Protection • Library • Housing Parks and Recreation • Public Safety • Transpo. nation • State Mandate Reimbursements • Revenues/Subventions The last column lists Joint Legislative Budget actions in black, Senate Final Actions in red and Assembly Final Actions are in blue. The Senate adopted a budget on June 29 and adjourned. The Assembly remains in session, as of July 2. Link to Budget Conference Committee Agenda Environmental Protection January Proposed II May Revised I~ Senate Proposed II Assembly Proposed 03.5 M from Various changes up Various changes up op 40 for variety for consideration in for consideration in state and focal conference conference rks, open committee committee ace, river ~tection, clean aches, water d air quality, and ~torical and Itural facilities. Stormwater fees - Stormwater fees - adopted trailer bill adopted trailer bill language to increasing cap to increase cap to $35,000 and $35,000 and remove exemption removed exemption for municipal http://www.cacities.org/doc.asp?printable~es&ID=5595 7 Joint Legislative Budget Senate Final ,ssembly Final Prop 40 funded iget proposals be consolidated i considered 9/9/2002 League of California Cities Page 2 of 14 ICf11UVCU CRCIII~/UQn rur munic~pai for municipal stormwater co- stormwater co- permittees permittees and confined animal feedin operations Trailer bill language Trailer bill language to remove cap on to remove cap and statewide fee limit fee collection in Air adjustments to Resources Board changes in stationary source Consumer Price program Index Library January Proposed May Revised Senate Proposed Assembly Proposed Joint Legislative Budget $11.2 M reduction to $41.8 M for Public Library Foundation Additional $11.8 M reduction in Public Library Foundation Restored $17.684 M Restored $5.9 M Removed all funding from 2001-021eve1 of $53.1 M Restored 53.5 M O Housing January Proposed May Revised Senate Proposed Assembly Proposed Joint Legislative Budget Reductions: No change No change $29.5 M Multifamily housing $3.6 M Farmworker housing Approved Farm worker Housing Approved Farm worker Housing and reduction Housing reduction contingent on contingent on passage of passage of November Housing November Housing Bond Bond $2.1 M self-help housing No change Approved Self-Help Housing reduction contingent on passage- of November Housing Bond $2 M Emergency Housing assistance No change No change grants Transfers to General Fund from No change No change aroarams: http://www.cacities.org/doc.asp?printable=yes&ID=5595 9/9/2002 League of California Cities `, Page 3 of 14 r~~y~a,~~~. $596 MJobs- Housing Improvement incentive grants $1.4 M from No change No change childcare facilities loan program O Parks and Recreatiort January Proposed May Revised Senate Proposed Assembly Joint Legislative Proposed Budget Included March 2002 Various Prop 40 All Prop 40 funded bond measure to funded projects projects will be provide funds to added re i d v ewe local entities concurrent) O .Public Safety January Proposed May Revised Senate Proposed Assembly Joint Legislative Proposed Budget COPS program Eliminates funding Split $121.3 M Restored $121.3 M Funded at $121 m. funded ai $121.3 to Juvenile Justice between COPS and funding to Juvenile for COPS; $111 for and Juvenile Justice program Juvenile Justice Justice program Juvenile Justice. Crime Prevention program and split at $116 M $111.3 M each Supported conference committee recommendation and restored both COPS and Juvenile Justice program funding Law enforcement Reduces law Supports May Increased proposed Senate supported equipment grants enforcement revise version. cuts back to $35.4 Governor's May retained at $35.4 M equipment grants M -eliminating revise by $16.9 M program recommendation. $13.5 for high tech High tech crime No change No change Eliminated funding crime and identity and theft reduced {$18.5 m. loss for theft, $15 M to fight. by $4.2 M, $5 M local governments) drug trafficking, from drug $18.5 M rural and trafficking Senate restored small county grants 31.7 M rural crime; 34.2 M high tech task force: 318.5 M high tech grants: and S~ M war nn http://yrww.cacities.org/doc.asp?printable~es&ID=5595 9/9/2002 League of California Cities ~a ~o ~~ Page 4 of 14 _ I , I L ~ I 1 1methamphetam~ne Charge fees to local Rejected Reduced General agencies for Governor's Fire Fund support offset Department of Protection fees by increase in fee Forestry and Fire {$20 M) reimbursements Protection in State Res onsibili Areas Shift cost of No discussion forensic labs to local agencies ($28 M) Local Assistance No change No change grants from Criminal Justice Planning reduced b $19.5 M O Transportation January Proposed May Revised Senate Proposed Assembly Proposed Joint Legislative Budget Loan of $672 M from Increased loan by No change No change Traffic Congestion $373 M Relief Fund Local streets and No change No change roads maintained at $162 M O State Mandate Reimbursements January Proposed May Revised Senate Proposed Assembly Proposed Joint Legislative Budget Includes additional Eliminates all but Small increase to Limited deferred Establish a statute $30M for deficiency $1,000 from send to conference mandates of limitation for filing claims mandate reimbursements to mandate claims reimbursements 3 years and deficiency Deferred payments provisions($216.3 with no deadline for M reduction) lifting deferrals. Also passed trailer bill language that. limits test claims to 3 years from the date mandate is effective and one year for mandates effective before January 1, 2002; eliminates $1.000 http://www.cacities.org/doc.asp?printable=yes&ID=5595 9/9/2002 League of California Cities Page 5 of l4 httpalwww.cacities.org/doc.asp?printable=yes&ID=5595 9/9/2002 League of California Cities ^^ Page 6 of 14 (3) .Increase minimum claim om $200 to $1000 ~I Revenue /Subventions C~ ~~ January Proposed May Revised Senate Proposed Assembly Proposed Joint Legislative Budget Retains full $3.7 8 Returns car No change No change Senate concurred reimbursement of owners VLF to with Governor's VLF backtill 1998 level with May revise proposal 25°k reduction and full backfill to locals Maintains $38 M Eliminates $38 M No change Restored $1,000 to Restores $38 M cooking fee booking fees booking fees reimbursements Senate concurred • with $38 M restoration Eliminate ERAF No change Redevelopment Redevelopment exemption to ERAF shift limited ERAF shift sunsets Redevelopment to 3 years in two years and Agencies {$75 M) $75 M amount concurred Eliminate ERAF ERAF to special ERAF to special exemption for districts open item districts open item multi-county ($41 M) ($41 M) special districts ($45 M) Eliminates funding Restored $1 M to No change Restored $39 M for Williamson Act subventions open space property tax su port ($39 M) Local Arts Transferred $1 M No change subventions grants into local reduced by $15.1 assistance M Cigarette tax No change No change increase $.50 per pack Securitize $2.4 B of Securitize No change No change tobacco settlement additional $2.1 B proceeds of tobacco settlement funds Transfer $8 M Rejected transfer from Infrastructure Bank Reduce No change No change stormvrater runoff contracts $8.2 M Delete Franchise Not discussed Tax funding and staff for administration of http://www. cacities.org/doc.asp?printable=yes&ID=S 595 ate passed $.I pack increase reduction 9/9/2002 League of California Cities Page 7 of I4 ninistration of 63 local tax O http://www.cacities.org/doc.asp?printable~es&ID=5595 9/9/2002 ~~~i ~~®l~ ~~®~~ ~~~ f GOVBRNMENTAI. AF.'=~t5 • LEGISLATIVE ADVOCACY THE WILSON BUILDING 1725 CAkITOL AVE'VUE POa tivasoN s.s., M.a!A,7•o• t.ep:Llt~eiW~onK SACRAMENTO, CALIFORNIA 95814 anosoN M.trrtts r<v~Amoc.K ~~r u><- (5116} 448.2187 Fax (916) 448.5346 Maobec vlLme saKn Maobv. gl{loenla 302 jaroe 19?6-t9E0 i/anhtl, cwlbmLasatcnnsnhk 197:.1916 I;-Mtil: lobby~dcbesriisonglnup.coln Itast of RtDraunmu~v 1971•t9l1 Web Site: wwwthewtlsoagxoup.com w,wL~ r• OEApEH, a.s., -Lad. sAt7otn AtasSON, µ,7.D. t.G(LiL{~Nl M~OCIK tq~yyw Ad.x/ee ltmb~c CWfornw San semLC 19E1.1993 ,y,o,~q H ks ltcmber. 4AiIbfILY yuu AlaemhL~ 1966-L9LZ lEA1RT seRtat+RR, H.w.,l.D. ]t1CtTON A. AVasaet, a.s, tsfMllfiR A~,CIlC Llj1UL~i1~11 Ad~OdK 6iaq„l,, tt LA• )leaah«, G1itWYY s*ae beeuK 19?f1996 ]Aswbtl; GI1Nfnla Succ.ta.emhb t96419id T17LONE D. GLAND. SA. ~,~ iLa.ocla 17MOSttY lr 19,1xwrtsA, aa, ~.D. teLaaL.u.~~a.oaK September 5, 2002 ""°'°`'"''"' Faustin GonZa]es, City Manager city ofLynwood 11330 Bullis Road Lynwood CA, 90262 YL~ .FACSIMILE: 310/769-4908 Re: Final budget signed by Govemor Dear Faustin: The Governor signed the budget this morning aflez "blue penciling" approximately $235 million in vazious items from the budget sent to him by the Legislature. This was the least amount the Govenaoz has cut from recent budgets and reflects the fact that the budget had already been cut substantially and fuxther cuts aze contemplated for next year. The good news was the VLF backflll was untouched and the funding for local government law enforcement was largely left intact. More specifically: • -The COPS program was fully funding with a minimum of $104,000 pez local agency. • -The high-technology program was included at $18.5 million. There is a minimum of $15,000 per local agency plus per capita. • -There is another $18.5 million to be allocated among 37 rural, and small county sheriffs' departments in the amount of $500,000 each. • -The proposed cuts in booking fees were dropped so the budget contains $38.2 million to cities and special districts for zeimbuzsement of jail booking fees paid to counties and other cities iun 1997-98. air .d eaEti•°N d~0a9 NOS11M 3H1 wdtia:s noon •s ~das . -There is another $15 million in general fund assistance to local law enforcement to help in the fight against Methamphetarnine. • -There is $13.5 million in general farad local assistance to fight high-tech crime and identity theft. • There were some cuts to local programs that may impact city residents such as the $5 million in subvention cuts to local aiurpollution control districts and the deletion of a legislative augmentation of $5 million to the Special Transportation Program funding. • The Transportation, congestion relief fund has loaned funds to the General Fund on the understanding that no transportation projects will be delayed as a result. The budget outlook for 2003-20041ooks to be every bit as bleak as this year and most of the tricks to avoid real cuts were used this year. However, the Governor and Legislature (including both parties) have remained strongly committed to avoiding deep cuts in education finance, so things could be worse. We will keep you advised of further developments. Sincerely, T ne D. Bland l/l 'd EZEb'oN d00a9 NOS11M 3Hl WV~Z~6 ZOOl '9 'aaS This Agenda contains a brief general description of each item to be considered. Copies. of the Staff reports or other written documentation relating fo each item of business referred to on the Agenda are on file in the Oftrce of the City Clerk and are available for public inspection. A person who has a quesfion concerning any of the agenda ifems may call the City Manager at (310) 603- 0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A' FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. ~~ AGENDA ITEMS ON FILE FOR CONSIDERATION ~I~ ~i7 L~ AT THE SPECIAL MEETING OF CITY OF LYNWOOD ~ THE LYNWOOD PUBLIC FINANCE AUTHORITY CITY CLERKS OFFICE TO 8E HELD ON SEPTEMBER 4, 2002 SEA 0 3 2t.0>_ 9:00 A.M. ~ .COUNCIL CHAMBERS Stut~-~I~IIli~314t~g 11330 Bullis Road, Lynwood, CA 90262 r ~~'~. ARTURO REYES PRESIDENT FERNANDO PEDROZA VICE PRESIDENT PAUL H. RICHARDS, II MEMBER CHIEF ADMINISTRATIVE OFFICER FAUSTIN GONZALES SECRETARY ANDREA L. HOOPER OPENING CEREMONIES CALL TO ORDER ROLL. CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, 11 Ramon Rodriguez Arturo Reyes TREASURER IRIS PYGATT CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only} PUBLIC ORAL COMMUNICATIONS IF AN ITEM 1S NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT 1S ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) LOUIS BYRD MEMBER RAMON RODRIGUEZ MEMBER FINANCE DIRECTOR ALFRETTA EARNEST 4. PROPOSED FY 02-03 BUDGET PLAN COMMENTS: At the April 18, 2002 Special City Council Meeting, staff presented athree-year projection of all funds based upon current expenditure level. Based on this analysis, the General Fund was projected in deficit in FY 2003-2004 fiscal year if current levels of expenditure are maintained. Given that scenario, the preparation for the proposed FY 2002-2003 budget needs to take into consideration reducing cost and increasing revenue in order to forestall a deficit. Staff has since adjusted the estimates and refined the three-year projection. Since April 18 staff has derived improved estimates on the actual expenditures and revenues to use for the base year as the starting point for the projection. Staff has prepared a budget plan that includes corrective measures if implemented would forestall a deficit in FY 04-05. The corrective measures are as follows: decrease in operational cost, reorganization of departments for greater efficiency, enhancement of ongoing revenues, consideration of one-time potential revenues, and scheduling payback of general fund liabilities. The submitted budget plan is not a finished budget. Its purpose is to provide the City Council with a basic document, which after Council review and input can be used in preparation of the line item budget. The City Manager will bring back a proposed FY 02-03 line item budget for a public hearing and Council adoption in approximately three weeks. RECOMMENDATION: Staff recommends that the Lynwood Public Finance Authority to review, discuss and provide direction on the proposed budget ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON SEPTEMBER 17, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. This Agenda contains a brief genera! description of each item to be considered. Copies of the '" Staff reports or other written documentation relating to each item of business referred to on the Agenda are on frle in the Office of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603- 022Q ext. 200. Procedures for Addressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO T.HE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. .p CITY pF lYNW001) ~31'rY GLERKS OFFlCI3 ~11~ 2 9 2oe2 7~i8~yl~l~ L,~ ~,,~~-~c v cL~hj ~~. ~ ~-1 AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE REGULAR MEETING OF THE LYNWOOD PUBLIC FINANCE AUTHORITY TO BE HELD ON SEPTEMBER 3, 2002 6:00 P.M. COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 ARTURO REYES PRESIDENT FERNANDO PEDROZA LOUIS BYRD VICE PRESIDENT MEMBER PAUL H. RICHARDS, II RAMON RODRIGUEZ MEMBER MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS {Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962; Part III, Paragraph 5.) 4. MINUTES OF PREVIOUS MEETING Regular Meeting, August 7, 2002 Special Meeting, August 8, 2002 Special Meeting, August 10, 2002 Special Meeting, August 19, 2002 Special Meeting, August 20, 2002 Regular Meeting, August 20, 2002 5. PROPOSITION 46 -HOUSING AND EMERGENCY SHELTER TRUST FUND ACT OF 2002 Comments: According to the California Department of Housing, the State of Califomia is currently facing a housing affordability crisis. The effort of the various stakeholders within the state to address the housing affordability crisis include voter approval of three general obligation bonds totaling $600 Million dating back to the late 1980's and a budget provision of $500 Million in the State of California 2000-2001 Budget Act. The current attempt to provide additional financial assistance for housing programs was prompted by the three state agencies currently administering such programs forecasting that the financing of these programs would be committed and nearly depleted by the end of the 2001-2002 fiscal year. Senator Burton drafted and successfully passed through the Legislature, SB 1227, the Housing and Emergency Shelter Trust Fund Act of 2002. Essentially SB 1227, will appear in the form of Proposition 46 that will place $2.1 Billion in general obligation bonds on the ballot for the November 2002 statewide election, that would be used for various housing programs. The passage of this bond measure provides another mechanism of financial assistance via the state, for local-governments to meet state mandated housing goals as well as address housing infrastructure needs facing individual communities. Recommendation: Staff respectfully requests that the Board of Directors of the Lynwood Public Finance Authority receive and file this item. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON SEPTEMBER 17, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING AUGUST 7, 2002 The Public Finance Authority of the City of Lynwood met in a Regular Meeting at 11330 Bullis Road on the above date at 6:55 p.m. President Reyes presiding. Members Byrd, Pedroza, Richazds, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Interim City Attorney Montgomery, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the frown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS Item #4: MINUTES OF PREVIOUS MEETINGS: It was moved by Member Byrd, seconded by Vice President Pedroza and carried to approve the following minutes: • Regulaz Meeting, July 2, 2002 • Regular Meeting, July 16, 2002 Item #5: TREASURER'S QUARTERLY INVESTMENT REPORT The purpose of this item is to have the Lynwood Public Finance Authority review the Treasurers Quarterly Investment Report as required by recently enacted State Statues. It was moved by Member Byrd, seconded by Vice President Pedroza and carried to receive and file this information. ADJOURNMENT Having no further discussion, it was moved by Vice President Pedroza, seconded by Member Byrd and carried to adjourn the Regular Council Meeting at 7:00 p.m. Arturo Reyes, President Andrea L. Hooper, Secretary i LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING AUGUST 8, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Bullis Road on the above date at 6:15 p.m. Vice President Pedroza presiding. Members Byrd, Richazds, Rodriguez and Pedroza answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Secretary Hooper and Treasurer Pygatt. City Attorney Montgomery was absent. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Onty) NONE PUBLIC ORALS COMMUNICATIONS President Reyes arrived at 6:30 p.m. Item #4: PROPOSED FY 02-03 BUDGET PLAN City Manager Gonzales explained to the Members that staff presented athree-yeaz projection of all funds based upon current expenditures level. Based on this analysis, the General Fund was projected in deficit in FY 2003-2004 fiscal year if current levels of expenditure are maintained. Given that scenario, the preparation for the proposed FY 2002-2003 budget needs to take into consideration reducing cost and increasing revenue in order to forestall a deficit. Staff has since adjusted the estimates and refined the three- year projection. Since .April 18 staff has derived improved estimates on the actual expenditures and revenues to use for the base year as the starting point for the projection. Staff has also prepared a budget plan that includes corrective measures, which will achieve a saving of approximately $1.8 million dollars in the general fund if implemented and would forestall a deficit in FY 04-05. The corrective measures are as follows: decrease on operational cost, reorganization of departments for greater efficiency, enhancement of ongoing revenues, consideration of one-time potential revenues, and scheduling payback of general fund liabilities. City Manager Gonzales also explained that the submitted budget plan is not a finished budget. Its purpose is to provide the Members with ~ basic document which afrer the Members review and input can be used in preparation of the line item budget. City Manager Gonzales stated he would bring back a proposed FY 02-03 line item budget for a public hearing and'the Members adoption in approximately three weeks. President Reyes requested that the City Manager bring back all revenues from each Department. President Reyes also stated he would like for the City's staff to meet with the Lynwood Unified School District in regards with hiring more Crossing Guards and also adding more speed bumps to the City's street. ADJOURNMENT Having no further discussion, it was moved by Member Byrd, seconded by Vice President Pedroza and carried to adjourn the Special Council Meeting at 9:45 p.m. Arturo Reyes, President Andrea L. Hooper, City Clerk LYNWOOO PUBLIC FINANCE AUTHORITY SPECIAL MEETING AUGUST 10, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting in the Council Chambers, 11330 Bullis Road on the above date at 9:28 a.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez, and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales and Secretary Hooper. Interim City. Attorney Montgomery and City Treasurer Pygatt were absent. Secretary Hooper announced that the agenda had been duly posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORAL COMMUNICATIONS NONE Item #5: PROPOSED FY 2002-03 BUDGET PLAN Chief Administrative Officer Gonzales stated that staff would present the Members with Alternate Objectives for FY 2002-03 and after the Members review; input can be used in preparation of the line item budget. Stated that staff has made budget adjustments and reorganization of their departments for greater efficiency. Also staff has already discussed the Departments objectives and goals for the proposed fiscal year 2002-03, at the precious budget meeting. Chief Administrative Officer Gonzales explained the Department's Alternate Objectives for FY2002-03 as follows: •:• Neighborhood Preservation Special Services for Law Enforcement • Narcotic Deputy • Anti-Cruising Operation • Sheriffs Security Officer for Park Security -Feasibility Study • Loud Party Car Member Richards inquired about the Special Assignment Deputy. Chief Administrative Officer Gonzales stated that the Special Assignment Deputy would be used to cover overtime during special events, etc. Member Richards suggested that Deputies should be put on a trial basis for a period of some weeks. An alternative would be the acquisition of barricades for the purpose of changing the street configuration relative to cruising. Also the Deputies can be assigned to issue citations on the Boulevard and to put out barricades at special events. Chief Administrative Officer Gonzales stated that they are currently using private security guards to supervise the park and one of the alternatives would be to hire additional security officers. • Community Development • Fagade Improvements - 710Fwy. Corridor Fagade Improvement Chief Administrative Officer Gonzales discussed that the Facade Improvements would consist of improving the aspects of businesses, along the freeway, making them more attractive. The Members suggested that the City should work closely with the businesses. • Recreation • Youth Services Identification Card One Site • Additional Recreational Programming Youth Baseball Clinic • Alternatives for Recreational Services Bateman Hall Sports/LSA After School Program Youth Services identification Card: Chief Administrative Officer Gonzales stated that an alternative to the Youth Services Identification Card would be to hire consultants to contract several services, and looking for the possibility of working. with Project Impact using the youth identification card system, that could be utilized for the Skate Park and Natatorium. Additional Recreational Programming: Chief Administrative Officer Gonzales stated that Bateman Hall is the City's rental facility and they are exploring the possibility of franchising at the Level of other rental facilities within the surrounding areas. Bateman Hall has been remodeled with a modem kitchen, which could be used. by caterers bringing more revenue to the City. The Members suggested surveying other cities that compare with Bateman Hall facilities. Youth Baseball Clinic: Chief Administrative Officer Gonzales stated that the City is exploring the possibility of Lynwood Sports Association sponsoring the whole .program. Currently, the City .subsidizes this program with the purchase of equipment and providing staff to supervise this program. Member Byrd stated that the City should continue to subsidize the program to make sure that recreation services and programs are offered to residents only. President Reyes stated that before they could make a decision on this particular program they would need to see the survey first, since the report previously submitted by Recreation didn't make any sense. Vice President Pedroza requested a report that includes the following: • Who created L.S.A. • Purpose or Mission of L.S.A. • Names of Officers and Treasurer • Record keeping of Accountability After School Program: Chief Administrative Officer Gonzales stated that the City is exploring the option of the LUSD providing services and funding for this program. An alternative would be to hire Schoolteachers to conduct the program, which will be less expensive and less liability to the City. Member Byrd stated that Pacific Pipeline was supposed to provide several computers to the City and may be staff could follow up on this. The Members discussed the possibility of having a computer lab available for the children where they can be taught computer skills. The After School Program should also offer academic activities such as History, Math, and Music. Member Richards agreed that children need to be taught computer skills, but children also need to have outdoor activities. •: City Manager's Office Training Program • GIS Student Training Program • Youth Employment Program Special Publications • 2003 Community Calendar • City Brochure GIS Student Training Program: Chief Administrative Officer Gonzales stated that the City is already using the services of GIS Computer System. Explained that G!S would set up the program, supply computer software, and provide basic training to the students, which allow students gain computer acknowledge. Chief Administrative Officer Gonzales stated that they have held discussions with Hub Cities regarding this program and a negotiation is pending. Assistant City Manager Lorry Hempe stated that the Student Training Program will be for a six-month period and the City will pay the student. Students will get the opportunity to obtain computer acknowledge as well as entering database in computers. One of the criteria is that the student must be under 18, in order participate in the training program. Member Rodriguez asked if this program would be only for residents. Chief Administrative Officer Gonzales stated that this program could be-only offer to residents, if desired by the Members. Vice President Pedroza commented that he attended ahigh-risk program called JAR in the City Of Huntington Park where they teach youth discipline and respect. Suggested that the City should participate in this type of program and asked that staff bring back a report for the Members review. Special Publication: 2003 Community Calendar Chief Administrative Officer Gonzales stated that this item that requires separate funding. Organizational Charts: Chief Administrative Officer Gonzales stated that the Department Heads would give the Members an overview of the Organizational Charts making a comparison with last year's and this year's fiscal year. The following Department Heads explained and presented the Members with the new changes made to their Department's Organizational Charts. • City Manager's Office -Assistant City Manager Lorry Hempe City Clerk's Office -City Clerk Hooper :• Community Development -Community Development Director Louis Morales Member Byrd questioned why the City Treasurer's organizational chart was not included in their booklet. Chief Administrative Officer Gonzales stated that there were no changes on her budget. It was moved by Member Richards to recess for lunch at 11:52 a.m., seconded by Member Rodriguez. Members reconvened at 12:20 p.m. Community Development Director Louis Morales continued to explain his proposed Department changes to included an additional eight (8) new positions. ADJOURNMENT Having no further discussion, it was moved by Vice President Pedroza, seconded by Member Rodriguez and carried to adjourn the meeting at 2:30 p.m., and to continue the Budget Plan Meeting at the Special Council Meeting of Saturday, August 17, 2002 at 9:00 a.m. Arturo Reyes, Mayor Andrea L Hooper, City Clerk LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING AUGUST 19, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Bullis Road on the above date at 10:10 a.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS Item #4: PROPOSED FY 2002-2003 BUDGET PLAN Chief Administrative Officer Gonzales explained to the Members that staff presented a three-year projection of all funds based upon current expenditure level. Based on this analysis, the General Fund was projected in deficit in FY 2003-2004 fiscal yeaz if current levels of expenditure are maintained. Given that scenario, the preparation for the proposed FY 2002-2003 budget needs to take into consideration reducing cost and increasing revenue in order to forestall a deficit. Staff has since adjusted the estimates and refined the three-year projection. Since April 18 staff has derived improved estimates on the actual expenditures and revenues to use for the base year as the starting point for the projection. Staff has also prepared a budget plan that includes corrective measures, which will achieve a savings of approximately $1.8 million dollars in the general fund if implemented and would forestall a deficit in FY 2004-200. The corrective measures are as follows: decrease on operational cost, reorganization of departments for greater efficiency, enhancement of ongoing revenues, consideration of one-time potential revenues, and scheduling payback of general fund liabilities. Chief Administrative Officer Gonzales also explained that the submitted budget plan is not a finished budget. Its purpose is to provide the Members with a basic document, which after the Members review and input can be used in preparation of the line item budget. Chief Administrative Officer Gonzales stated he would bring back a proposed FY 2002- 2003 line item budget for a public heazing and Members adoption in approximately three weeks. ENVIRONMENTAL SERVICES BUDGET PLAN: Director of Environmental Services Joe Wang -Gave the Members a brief presentation of the Environmental Services Department. And stated he would have to cut off four part time employees from the Water Department. Member Richazds -Questioned if it would be possible to move the employees to another department instead of deleting their position, believes it is unfair to delete employees who have been working for the City for yeazs. Director of Environmental Services Joe Wang -Explained to the Members that unfortunately there is no other department to transfer these employees too. Member Rodriguez -Stated he does not understand why is there eight employees under ten supervisors. Believes it is nonsense it should be four employees under one supervisor Vice President Pedroza -Believes the supervisors aze not doing their job, they are responsible for making sure that the employees are doing their job on time and finishing up the job. Member Byrd -Stated that maybe the Members should delete on supervisors and not employees, the employees seem to be working harder than the supervisors. Director of Environmental Services Joe Wang -Stated he is also considering deleting one facility maintenance worker, there is just not enough money in the budget to keep the personnel. President Reyes -Explained that the changes would probably have to be done in the middle management because there are not showing up on time or they're leaving earlier and the work is being accomplished. ADJOURNMENT After further discussion it was moved by Member Rodriguez, seconded by Vice President Pedroza and carried to continue the Special Council Meeting at 9:00 p.m. on August 20, 2002. Arturo Reyes, President Andrea L. Hooper, Secretary LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING AUGUST 20, 2002 .The Public Finance Authority of the City of Lynwood met in a Regular Meeting at 11330 Bullis Road on the above date at 7:30 p.m. President Reyes:presiding. Members Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Chief Administrative Officer Montgomery, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced ihat the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS Item #4: MINUTES OF PREVIOUS MEETINGS It was moved by Member Rodriguez, seconded by Vice President Pedroza and tamed to approve the following minutes: Regular Meeting, August 6, 2002 ADJOURNMENT It was moved by Member Rodriguez, seconded by Vice President Pedroza and carried to adjourn the Special Council Meeting at 7:35 p.m. Arturo Reyes, President Andrea L. Hooper, Secretary LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING AUGUST 20, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Buliis Road on the above date at 9:15 a.m. President Reyes presiding. Members Byrd, Pedroza, Rodriguez and Reyes answered the joint roll call for all agencies. Member Richards was absent. Also present were Chief Administrative Officer Gonzales, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS Member Richazds arrived at 9:20 a.m. Item #4: PROPOSED FY 2002-2003 BUDGET PLAN Chief Administrative Officer Gonzales explained to the Members that staff presented a three-year projection of all funds based upon current expenditure level. Based on this analysis, the General Fund was projected in deficit in FY 2003-2004 fiscal yeaz if current levels of expenditure aze maintained. Given that scenario, the preparation for the proposed FY 2002-2003 budget needs to take into consideration reducing cost and increasing revenue in order to forestall a deficit. Staff has since adjusted the estimates and refined the three-yeaz projection. Since April 18 staff has derived improved estimates on the actual expenditures and revenues to use for the base year as the starting point for the projection. Staff has also prepared a budget plan that includes corrective measures, which will achieve a savings of approximately $1.8 million dollars in the general fund if implemented and would forestall a deficit in FY 2004-2005. The corrective measures aze as follows: decrease on operational cost, reorganization of departments for greater efficiency, enhancement of ongoing revenues, consideration of one-time potential revenues, and scheduling payback of general fund liabilities. Chief Administrative Officer Gonzales also explained that the submitted budget plan is not a finished budget. Its purpose is to provide the Members with a basic document, which after the Members review and input can be used in prepazation of the line item budget. Chief Administrative Officer Gonzales stated he would bring back a proposed FY 2002- 2003 line item budget for a public hearing and Members adoption in approximately three weeks. FINANCE & ADMINISTRATION BUDGET PLAN: Director of Finance & Administration Alfretta Earnest - Presented a brief presentation to the Members on the finance & Administration Department. RECREATION & COMMUNITY SERVICES BUDGET PLAN: Director of Recreation & Community Services Jim Givens -Presented a brief presentation to the Members on the recreation & Community Services Department. Stated he would like to bring a new Park Ranger aboard to help resolve some of the parks issues. Member Richards -Believes that by bringing a Park Ranger aboazd would not resolve the parks issues. The problems need to be resolved by the Director of the department not a Pazk Ranger believes, this position is a waste of time and money. Member Byrd -Stated he would like for the Supervisor to provide Recreational Leaders for every site that belongs to the Recreation & Community Services Department. President Reyes -Stated he would Iike to have a Recreation Leader or an employee on time to constantly supervise the pazks and also every site of the department. Member Richazds -Explained that the key is to have communication between staff and head departments. The Directors have to take action and make sure the job is being accomplished by the employees. Vice President Pedroza -Questioned on the responsibility of maintaining the Parks up to date. And what action has been taken to progress the City's Parks. Director of Recreation & Community Services Jim Givens -Explained to the Council that staff has been scheduled earlier than their usual hour to help solve some of the pazks issue. Member Richazds -Stated he believes that the one who is in charge to solve any issues is the Director of the Department. Vice President Pedroza -Suggested that maybe what would probably help make a difference with employees and directors is to provide a time clock for every department. Member Rodriguez -Stated he believes there is a solution to every problem, you just have to work harder to find the solution. President Reyes -Stated he is considering putting a time clock for all City employees. Believes that maybe this would help make a difference and also help solve some issues. NEIGHBORHOOD PRESERVATION BUDGET PLAN: Chief Administrative Officer Gonzales -Explained to the Members that staff would like to bring a new Department aboard the neighborhood Preservation Department to help solve some of the City's issues. Including Code Enforcement, Parking Enforcement; Crossing Guards, Complaints and etc. President Reyes -Thanked the Supervisors and staff for their assistance in putting all the Budget Plan together for the Members review. Stated he would like to provide a retirement plan for the City's employees, would like for staff to look into this idea. .: Vice President Pedroza,- Stated he would like for staff io provide two security guards in the City Hall buildings at all times and he would also like to install surveillance cameras through out the City Hall buildings. ADJOURNMENT It was moved by Member Rodriguez, seconded by Vice President Pedroza and carried to adjourn the Special Council Meeting at 11:45 a.m. Arturo Reyes, President Andrea L. Hooper, Secretary MEMORANDUM DATE: September 3, 2002 TO: HONORABLE PRESIDENT AND MEMBERS OF THE LYNWOOD PUBLIC FINANCE AUTHORITY FROM: Faustin Gonzales, Chief Administrative Officer ~~ BY: Autra C. Adams, Program Development Coordinator SUBJECT: Proposition 46 -Housing and Emergency Shelter Trust Fund Act of 2002 PURPOSE: To have the President & Members of the Lynwood Public Finance Authority receive and file this item. BACKGROUND: According to the California Department of Housing, the State of California is currently facing a housing affordability crisis. An enormous amount of data exists to substantiate this; however this is most evident by homeownership rates within the state being below the national average and one of the lowest in the nation, rental rates in the state at a proportionately higher share of potential renters income than in other comparable markets, and new housing units within the state are only being produced at approximately half of the rate of the estimated demand. The effort of the various stakeholders within the state to address the housing affordability crisis include voter approval of three general obligation bonds totaling $600 Million dating back to the late 1980's and a budget provision of $500 Million in the State of California 2000-2001 Budget Act. All of these provisions created or added money to programs to be administered by the State Department of Housing and Community Development, the California Housing Finance Agency and the State Treasurers Office. ANALYSIS: The current attempt to provide additional financial assistance for housing programs was prompted by the three state agencies currently administering such programs forecasting that the financing of these programs would be committed and nearly depleted by the end of the 2001-2002 fiscal year. Senator Burton drafted and successfully passed through the Legislature, SB 1227, the Housing and Emergency Shelter Trust Fund Act of 2002. Existing laws within the state authorize the legislature to approve and place measures on the ballot at a statewide election so that the voters may determine whether to approve the issuance of general obligation bonds for the purposes set forth in the measure. Proposition 46 Essentially SB 1227, will appear in the form of Proposition 46 that will place $2.1 Billion in general obligation bonds on the ballot for the November 2002 statewide election, to be used for various housing programs. The passage of this bond measure provides another mechanism of financial assistance via the state, for local governments to meet state mandated housing goals as well as address housing infrastructure needs facing individual communities. Specifically, Proposition 46 allocates the $2.1 Billion as follows: :• Multifamily Housing Programs ($1.11 Billion) -The majority of the funding in this category ($800 Million) is for low-interest loans for affordable housing development. In addition, this category includes programs for supportive housing, preservation, housing trust funds, health and social services, student housing and disabled modifications. .. _ .. _ ~ __..__. } !. --- o= Homeownership Programs ($405 Million} -This includes a variety of direct assistance in the form of grants and low interest loans for down payment and other assistance for low and moderate income first time homebuyers and grants to local governments to fund homebuyer assistance programs. :• Farmworker Housing ($200 Million) -These funds would be used for a variety of loans and grants for the development of rental and owner occupied housing for farmworkers. :• Emergency Programs ($195 Million) -These funds would be used for the Emergency Housing and Assistance Program and include grants for the construction of homeless shelters. :• Local Governments ($105 Million) -This includes approximately $100 Million in grants to local governments for ajobs-housing improvement program and $5 Million for capital expenditures related to local code enforcement departments. •: Housing Loan Insurance ($85 Million) -This would make funding available to the Califomia Housing Loan Insurance Fund to supplement insurance rates for high- risk housing mortgages. The Legislative Analyst's Office is estimating that based upon current interest and tax rates this bond would require an approximate annual repayment by the State of California of $157 Million for a thirty year period. RECOMMENDATION: Staff respectfully requests that the President & Members of the Lynwood Public Finance Authority receive and file this item. ATTACHMENT _..., Page 1 of 11 BILL NUMBER: SB 1227 CHAPTERED BILL TEXT CHAPTER 26 FILED WITH SECRETARY OF STATE APRIL 22, 2002 APPROVED BY GOVERNOR APRIL 22, 2002 PASSED THE SENATE APRIL 8, 2002 PASSED THE ASSEMBLY APRIL 4, 2002 AMENDED IN ASSEMBLY APRIL 1, 2002 AMENDED IN ASSEMBLY FEBRUARY 26, 2002 AMENDED IN ASSEMBLY FEBRUARY 15, 2002 AMENDED IN ASSEMBLY FEBRUARY S, 2002 AMENDED IN ASSEMBLY JANUARY 18, 2002 AMENDED IN ASSEMBLY JANUARY 7, 2002 AMENDED IN ASSEMBLY SEPTEMBER 13, 2001 AMENDED IN SENATE JUNE 5, 2001 AMENDED IN SENATE MAY 21, 2001 INTRODUCED BY Senator Burton (Principal coauthors: Assembly Members Hertzberg, Migden, and Wesson) tCoauthors: Senators Alarcon, Bowen, Chesbro, Dunn, Kuehl, McPherson, Polanco, Romero, Scott, and Sher) (Coauthors: Assembly Members Alquist, Aroner, Cedillo, Chan, Cohn, Diaz, Frommer, Goldberg, Jackson, Keeley, Kehoe, Koretz, Lowenthal, Nation, Pavley, Salinas, Shelley, Simitian, Steinberg, Thomson, and Wayne) APRIL 19, 2001 An act to amend Sections 50802.5, 51455, 51479, and 53130 of, to add Sections 50675.13, 50675.14, 51451.5, 51453, and 51505 to, and to add Part 11 (commen.cing with Section 53500) to Division 31 of, the Health and Safety Code, relating to financing housing programs by providing the funds necessary therefor through the issuance and sale of bonds of the State of California and by providing for the handling and disposition of those funds, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 1227, Burton. Housing and Emergency Shelter Trust Fund Act of 2002. Under existing law, there are programs providing assistance for, among other things, multifamily housing, emergency housing, farmworker housing, home ownership for low- and very low income households, and downpayment assistance for first-time homebuyers. Existing law also establishes specified code enforcement programs. This bill would enact the Housing and Emergency Shelter Trust Fund Act of 2002, which, if adopted, would authorize, for purposes of financing various existing housing and code enforcement programs, and additional specified programs subject to the enactment of enabling legislation, the issuance of bonds in the amount of $2,100,000,000 pursuant to the State General Obligation Bond Law. This bill would provide for submission of the bond act to the voters at the November S, 2002, statewide general election in accordance with specified law. The bill would enact additional provisions for the distribution of designated portions of the proceeds of the. bond act and the administration of the programs pursuant to which those funds would be distributed. Those provisions would become operative only if the bond act is adopted by the voters. This bill would also delete obsolete provisions. This bill would declare that it is to take effect immediately as an urgency statute. ' THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) The Legislature finds and declares all of the following: (1) Approximately 220,000 housing units need to be produced in California each year to meet demand. Yet only four times in the last 20 years has the production target been reached. (2) While the national homeownership rate has reached a record high, the rate in California is 10 percent below the national http:Uwww.]eQinfo.ca.~~~irn~hh.~ni~P„i~~, 1^fni i^+cni_c. .~~-, e. n, ,~..-....-- Page 2 of 1 1 average, and ranks 48th in the nation. (3) There is an extreme shortage of rental housing in California, particularly for lower income renters. Rental housing construction is primarily at the high end of the rental market. The statewide rental vacancy rate is fourth lowest in the nation. (4) Over one-third of all renter families statewide pay over half their incomes in rent. Over one-half of all low-income renter families pay over half their incomes in rent, while almost three out of four very low income renter families pay over half their incomes in rent. It requires 106 hours per week at a minimum wage job to afford the average two-bedroom unit in California. (5) One out of every eight housing units statewide is in substandard condition, and one of every eight metropolitan California rentals is overcrowded. Threats to resident safety and displacement and costs of repairs and rehabilitation can be mitigated with more effective local housing code enforcement and compliance activities. Moreover, increased availability of public funds to help finance rehabilitation and repairs will result in the preservation of existing housing rather than replacement of that housing at higher construction costs.. (6) The Department of Housing and Community Development estimates that there are over 360,000 homeless individuals in California, and other data discloses that one-third of the homeless population, and the segment increasing most rapidly, are families with children. (7) More than 147,000 rental units built in this state prior to 1980 under the Section 236, Section 221(d)(3), and Section 8 programs of the United States Department of Housing and Urban Development and the Section 515 program of the federal Farmers Home Administration are at risk of conversion to higher rent housing or condominium units. Loss of this housing stock will displace thousands of elderly, disabled, and struggling families with no place to go. (e) The basic housing goal for state government pursuant to subdivision (b) of Section 50003 of the Health and Safety Code is to provide a decent home and suitable living environment for every California family. (b) The Legislature further finds and declares all of the following: (1) There is an urgent need to provide affordable housing to meet the increasingly unfulfilled housing needs of this state. (2) There is an immediate need to reaffirm the commitment to the official housing policy of the state and provide sufficient financial resources to meet this commitment over a reasonable period of time. (3) There is a critical need to provide financial assistance to do all of the following: (A) Purchase, construct, and rehabilitate emergency shelters and transitional housing for homeless families and individuals. (S) Construct rental housing for families and individuals, including the special housing needs of seniors, the disabled, and farmworkers. (C) Preserve and rehabilitate affordable homes and rental housing. (D) Provide home purchase assistance for first-time homebuyers. SEC. 1.5. Section 50675.13 is added to the Health and Safety Code, to read: 50675.13. (a) If the Housing and Emergency Shelter Trust Fund Act of 2002 is approved by the voters, with respect to funds appropriated pursuant to paragraph (1) of subdivision (a) of Section 53533, the department shall award reasonable priority points for projects to prioritize any of the following: (1) Infill development. (2) Adaptive reuse in existing developed areas served with public infrastructure. (3) Projects in proximity to public transit, public schools, parks and recreational facilities, or job centers. (h) The department may utilize other factors in rural areas to promote infill development. SEC. 1.6. Section 50675.14 is added to the Health and Safety Code, to read: 50675.14. If the Housing and Emergency Shelter Trust Fund Act of 2002 is approved by the voters, with respect to funds appropriated to the. Multifamily Housing Program pursuant to paragraph (3) of subdivision (a) of Section 53533, the department shall consider, commencing in the second year of the funding, the feasibility and appropriateness of modifying its regulations to increase the use of funds by small projects. In doing this, the department shall consider its operational needs and prior history of funding supportive housing facilities. SEC. 1.7. Section 50802.5 of the Health and Safety Code is amended http:/1www.leeinfo.ca.~rn~~n„hn,~)v~A„r~~, t~ni i^+cni_~ .~-.., , .. ., ,,, _. .__ -"""-- """' Page 3 of 11 to read: 50802.5. (a) The department shall issue a notice or notices of funding availability to potential applicants and designated local boards, as applicable, as soon as possible after funding becomes available for the Emergency Housing and Assistance Program. Each notice of funding availability shall indicate the amounts and types of funds available under this program. (b) A designated local board, or the department in the absence of a designated local board, shall solicit, receive, and select among applications for grants pursuant to this chapter from eligible organizations through an open, fair, and competitive process. These applications shall be ranked and selected by a designated local board, or by the department in the absence of a designated local board. (c) Notwithstanding subdivision (b), the department may restrict a designated local board from selecting any application requesting a grant for capital developments if the amount requested by the application exceeds the limits determined by the department, and the department determines that the designated local board is not qualified to evaluate the application. The department shall establish criteria for distinguishing between a designated local board that may be so restricted and a designated local board that would not be so restricted. A designated local board may appeal to the director, or to the director's designee, any decision made by the department pursuant to this subdivision. The department, by June. 30, 2001, shall consider increasing the maximum grant limits to three hundred thousand dollars ($300,000) for operating grants and five hundred thousand dollars f$5o0,000) for capital grants. (d) The department, or the designated local board, as applicable, shall not grant more than one million dollars ($1,000,000) to any eligible organization within a region in a funding round even if the eligible organization has filed multiple applications. (e) The department shall determine requirements of the grant contract and shall contract directly with the grant recipient. The department shall not delegate this function to the .designated local boards. Eligible designated local boards may use a percentage of the regional award funds to defray administrative costs. The department shall establish this percentage, which shall not exceed 2 percent. (f) The designated local board shall regulate the performance of any grant contract within their region, subject to department oversight and requirements established by the department. (g) The department shall not perform a secondary rating or ranking review on those grant applications that have been solicited, received, and selected by a designated local board according to a local ranking criterion that has been approved by the department. (h) Notwithstanding any other provision of this chapter, if the Housing and Emergency Shelter Trust Fund Act of 2002 is approved by the voters, funds allocated pursuant to paragraph (2) of subdivision (a) of Section 53533 shall be`administered by the department in a manner consistent with the restrictions and authorizations contained in provision 3 of Item 2240-105-0001 of the Budget Act of 2000, except that any appropriations in that item shall not apply. The competitive system used by the department shall incorporate priorities set by the designated local boards and their input as to the relative merits of submitted applications from within the designated local board's county in relation to those priorities. In addition, the funding limitations contained in this section shall not apply to the appropriation in that budget item. SEC. 2" Section 51451.5 is added to the Health and Safety Code, to read': 51451.5. The Homebuyer Down Payment Assistance Program of 2002 is hereby established, to provide assistance in the amount of the applicable school facility fee on affordable housing developments. The Homebuyer Down Payment Assistance Program of 2002 shall, with funds provided by the Housing and Emergency Shelter Trust Fund Act of 2002.. (Part 11 (commencing with Section 53500)), provide the following assistance: (a) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in an economically distressed area in the amount of school facility fees paid pursuant to Section 65995.5 or 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code, notwithstanding Sections 65995.5 and 65995.7 of the Government Code, if all of the following conditions are met: (1) The development project is located in a county with an unemployment rate that equals or exceeds 125 percent of the state unemployment rate. (2) Five hundred or more residential structures have been htto://www.leQinfnra onv/nnF.1}~iil/co.,/~{. i'Vlt r~cni_t ice.,-. ,_~,. ~ ............. Page 4 of I I constructed in the county during 2001. (3) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 2002. (4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis. (5) The sales price of the eligible residential structure does not exceed 175 percent of the median sales price of residential structures in the county during the average of the previous five years. {b) Downpayment assistance to the purchaser of any newly constructed residential structure in a development project in the .aggregate amount of school facility fees paid pursuant to one, all, or any combination of subdivision (b) of Section 65995, Section 65995.5, or Section 65995.7 of the Government Code for the eligible residential structure if all of the following conditions are met: (1) The assistance is provided to a qualified first-time homebuyer pursuant to Section 50068.5. (2) The qualified first-time homebuyer does not exceed the lower or moderate-income requirements in Section 50093. (3) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 2002. (4) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient o£ the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis- SEC. 3. Section 51453 is added to the Health and Safety Code, to read: 51453. Notwithstanding Section 51452, the sum of fifty million dollars ($50,000,000) transferred to the School Facilities Fee Assistance Fund pursuant to subparagraph (A) of paragraph (7) of subdivision (a) of Section 53533 is continuously appropriated to the department for allocation for the agency for administrative costs and to make payments to purchasers of newly constructed residential structures pursuant to Section 51451.5 from that fund for a period of four years, as follows: {a) Twenty-five million dollars ($25,000,000) shall be available for the program set forth in subdivision (a) of Section 51451.5, except that if less than 50 percent of these funds are expended within 24 months, all or part of those funds shall be available for the program set forth in subdivision (b) of Section 51451.5 at the discretion of the executive director of the agency. {b) Twenty-five million dollars ($25,000,000) shall be available for the program set forth in subdivision (b) of Section 51451.5, except that if less than SO percent of these funds are expended within 24 months, all or part of those funds shall be available for the program set forth in subdivision {a) o£ Section 51451.5 at the discretion of the executive director of the agency. (c) Zf after 48 months, more than 20 percent of the funds identified in subdivisions (a) and (b) are not expended, the executive director of the agency may make all or part of those funds available to the California Homebuyer's Downpayment Assistance Program, as authorized under Chapter 11 (commencing with Section 51500). (d) All repayments of disbursed funds pursuant to this chapter or any interest earned from the investment in the Surplus Money Investment Fund or any other moneys accruing to the fund from whatever source shall be returned to the fund and is available for allocation by the agency to the program established pursuant to Section 51451.5. SEC. 4. Section 51455 of the Health and Safety Code is amended to read: ' 51455. (a) Except as provided in subdivision {b), Sections 51450, 51451, 51452, and 51454 shall not be operative on and after January 1, 2002. (b) Except as provided in Section 51453, the School Facilities Fee Assistance Fund established by Section 51452 and the programmatic authority necessary to operate the programs authorized by Section 51451 shall continue on and after January 1, 2002, only with respect to any repayment obligation pertaining to that assistance or to any regulatory agreement imposed as a condition of that assistance. SEC. 5. Section 51479 of the Health and Safety Code is amended to read: 51479. In administering a program for the preservation of Ilitp:~IWWW.Ieelnf~.Ca.Rrn~/rn ih /hill/c A., lc}. 1 n/11 i ncn~_~, , ~~-, ~_ ~„ ~~,... ., ,_., PageSofli multifamily housing hereunder, the agency may segregate funds available for these purposes into separate accounts as necessary to reflect the different types of assistance authorized by this chapter. SEC. 6. Section 51505 is added to the Health and Safety Code, to read: 51505. (a} In addition to the downpayment assistance program authorized by Section 51504, and notwithstanding any provision of Section 51504 to the contrary, the agency shall provide downpayment assistance from the funds set aside pursuant to subparagraph (D) of paragraph (7) of subdivision (a) of Section 53533 for the purposes of the portion of the Extra Credit Teacher Home Purchase Program provided for in subdivision (g) of Section 8869.84 of the Government Code and any other school personnel home ownership assistance programs as set forth by the California Debt Limit Allocation Committee, as operated by the agency. Notwithstanding the foregoing, the agency may, but is not required to, provide downpayment assistance pursuant to this section to any local issuer participating in the Extra Credit Teacher Home Purchase Program and any other school personnel home ownership assistance programs as set forth by Lhe California Debt Limit Allocation Committee. (b) Downpayment assistance for purposes of this section shall be subject to, and shall meet the requirements of, the Extra Credit Teacher Home Purchase Program and any other school personnel home ownership programs as set forth by the California Debt Limit Allocation Committee, and shall include, but not be limited to, deferred payment, low interest rate loans where payment of principal and interest is deferred until the time that the home is sold or refinanced. This downpayment assistance shall meet the requirements of subdivisions (d) and (e) of Section 51504. (c) Loans made pursuant to this section may include a provision whereby interest, principal, or both, of the loan is forgiven upon conditions to be es*_ablished by the agency, or any other provision designed to carry out the purposes of the Extra Credit Teacher Home Purchase Program and any other school personnel home ownership programs as set forth by the California Debt Limit Allocation Committee. (d) Downpayment assistance pursuant to this section shall not exceed the greater of seven thousand five hundred dollars ($7,500) or 3 percent of the home sales price. SEC. 7. Section 53130 of the Health and Safety Code is amended to read: 53130. (a) Moneys deposited in the Roberti Affordable Housing Fund from the sale of bonds pursuant to Part 9 (commencing with Section 53150) shall be allocated for expenditure in accordance with the following schedule: (1} Two hundred million dollars ($200,000,000) shall be transferred to the Rental Housing Construction Fund to be expended for the programs authorized by Chapter 9 (commencing with Section 50735) of Part 2, except Sections 50738.5 and 50745.1. (2) Twenty-five million dollars ($25,000,000) shall be transferred to the Housing Rehabilitation Loan Fund to be expended for the purpose of making deferred-payment loans to acquire and rehabilitate residential hotels, as authorized by Section 50670. (3) Twenty-five million dollars ($25,000,000) shall be transferred to the Emergency Housing and Assistance Fund to be expended for the programs authorized by Chapter 11.5 (commencing with Section 50800) of Part 2. (4) Fifteen million dollars ($15,000,000) shall be transferred to the Family Housing Demonstration Account to be expended for the programs authorized by Chapter 15 (commencing with Section 50880) of Part 2 of Division 31 of the Health and Safety Code. (5) Ten million dollars ($10,000,000) shall be transferred to the department for expenditure for the development of migrant farm labor centers authorized by Chapter 8.5 (commencing with Section 50710) of Part;,2 of Division 31 of the Health and Safety Code. (6) Twenty-five million dollars ($25,000,000) shall be transferred to the Home Purchase Assistance Fund to be expended for programs authorized by Chapter 6.8 {commencing with Section 51341) of Part 2 of Division 31 of the Health and Safety Code. (b) Moneys deposited in the Roberti Affordable Housing Fund from the sale of bonds pursuant to Part 10 (commencing with Section 53190) shall be allocated for expenditure in accordance with the following schedule: (1) One hundred million dollars ($100,000,000) shall be transferred to the Rental Housing Construction Fund to be expended for the programs authorized by Chapter 9 (commencing with Section 50735) of Part 2, except Sections 50738.5 and 50745.1. (2) Fifteen million dollars ($15,000,000) shall be transferred to http://www.le_4tnfn ~a an~~/nni.~f.;ll/0..4.1, i ^+n+ , ~: ,, . ,. __ ..-- - - Page 6 of i l the Housing Rehabilitation Loan Fund to be expended for the purpose of making deferred-payment loans to acquire and rehabilitate residential hotels, as authorized by Section 50670. (3) Ten million dollars ($10,000,000) shall be transferred to the Emergency Housing and Assistance Fund to be expended for the programs authorized by Chapter 11.5 (commencing with Section 50800) of Part 2. (4) Twenty-five million dollars {$25,000,000) shall be transferred to the Home Purchase Assistance Fund to be expended for programs authorized by Chapter 6.8 (commencing with Section 51341) of Part 2. (c) No portion of;any of the moneys allocated pursuant to this section may be expended for project operating costs, except that this section does not preclude expenditures for operating costs from reserves required to be maintained by or on behalf of the project sponsor. SEC. 8. Part 11 (commencing with Section 53500) is added to Division 31 of the Health and Safety Code, to read: PART 11. HOUSING AND EMERGENCY SHELTER TRUST FUND ACT OF 2002 CHAPTER 1. GENERAL PROVISIONS 53500. This part shall be known and may be cited as the Housing and Emergency Shelter Trust Fund Act of 2002. 53501. As used in this part, the following terms have the following meanings: (a) "Committee" means the Housing Finance Committee created pursuant to Section 53524. (b) "Fund" means the Housing and Emergency Shelter Trust Fund created pursuant to Section 53520. CHAPTER 2. HOUSING AND EMERGENCY SHELTER TRUST FUND 53520. The proceeds of bonds issued and sold pursuant to this part shall be deposited in the Housing and Emergency Shelter Trust Fund, which is hereby created. Money in the fund shall be allocated and uCilized in accordance with Chapter 4 (commencing with Section 53533). CHAPTER 3. FISCAL PROVISIONS 53521. Bonds in the total amount of two billion one hundred million dollars ($2,100,000,000) exclusive of refunding bonds, or so much thereof as is determined necessary and feasible by the committee in order to effectuate this part or to conduct an effective sale, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this part and to be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds shall, when sold, be and constitute a valid legally and binding obligation of the state, and the full faith and credit of the state is hereby pledged for the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable. 53522. Any bonds issued and sold pursuant to this part may be refunded by the issuance of refunding bonds in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code. Approval by the electors of the state for the issuance of bonds described in this chapter shall include the approval of the issuance of any bonds issued to refund any bonds originally issued or any previously issued refunding bonds. 53523. (a) The bonds authorized by this part shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code) and all gf the other provisions of that law apply to the bonds and to this part and are hereby incorporated in this part as though set forth in full in this part. (b) Pursuant to the State General Obligation Bond Law, the cost of bond issuance shall be paid out of the bond proceeds. These costs shall be shared proportionally by each program funded through this chapter. 53524. (a) Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this part, the Housing Finance Committee is hereby created. For purposes of this part, the Housing Finance Committee is "the committee" as that term is used in the State General obligation Bond Law. The committee consists of the Controller, the Treasurer, the Director of Finance, the Secretary of httn://www.leQinfnrao~,.i,,,,t,n,;ni~o..~,.~. ,~~, „~„ .., ,._ .... _ Page 7 of 11 the Business, Transportation and Housing Agency, the Director of Housing and Community Development, and the Executive Director of the California Housing Finance Agency, or their designated representatives. The Treasurer shall serve as the chairperson of the committee.. A majority of the committee may act for the committee. (b) For purposes of the State General Obligation Bond Law, the department is designated the "board" for programs administered by the department, and the agency is the "board" for programs administered by the agency. 53525. Upon request of the board stating that funds are needed for the purposes of this chapter, the committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to this part in order to carry out the actions specified in Chapter 4 (commencing with Section 53533) and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time. 53526. There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds each year, and it is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect that additional sum. 53527. Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund, for the purposes of this part, an amount that will equal the total of the following: (a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this part, as the principal and interest become due and payable. (b) The sum necessary to carry out the provisions of Section 53528, appropriated without regard to fiscal years. 53528. For the purposes of carrying out this part, the Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this part. Any amounts withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund from money received from the sale of bonds for the purpose of carrying out this part. 53529. Notwithstanding any other provision of this part, or of the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this part that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes under designated conditions, the Treasurer may maintain separate accounts for the bond proceeds invested and the investment earnings on those proceeds, and may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law, or take any other action with respect to the investment and use of those bond proceeds, as may be required or desirable under federal law in order to maintain the tax exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state. 53530. The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for the The amount of the request shallpnoPoexceed theramountuoftunsoPdrbonds that the committee has by resolution authorized to be sold for the purpose of carrying out this part. The board shall execute any documents that are required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the board in accordance with this part. 53531. All money deposited in the fund that is derived from premiums and accrued interest on bonds sold shall be reserved in the fund~and shall be available for transfer to the General Fund as a credit to expendi[ures for ;bond interest. 53532. The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this part are not "proceeds of taxes" as that term is used in Article XIII B of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article. CHAPTER 4. ALLOCATION OF HOUSING BOND REVENUES 53533. (a) Money deposited in the fund from the sale of bonds pursuant to this part shall be allocated for expenditure in accordance with the following schedule: httn://www.le~*infn ra onv/n,~h/F,711/ce., /mot, ~ ~n i i ~ rn ~_~. ....... . .. ,, , _ _ Page 8 of 11 (1) Nine hundred ten million dollars ($910,000,000) shall be transferred to the Housing Rehabilitation Loan Fund to be expended for the.Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675) of Part 2, except for the following: (A) Fifty million dollars ($50,000,000) shall be transferred to the Preservation Opportunity Fund and, notwithstanding Section 13340 of the Government Code, is continuously appropriated without regard to fiscal years for the preservation of at-risk housing pursuant to enabling legislation. (B) Twenty million dollars ($20,000,000) shall be used for nonresidential space for supportive services, including, but not limited to, job training, health services, and child care within, or immediately proximate to, projects to be funded under the Multifamily Housing Program. This funding shall be in addition to any applicable per-unit or project loan limits and may be in the form of a grant. Service providers shall .ensure that services are available to project residents on a priority basis over the general public. (C) Twenty-five million dollars ($25,000,000) shall be used for matching grants to local housing trust funds pursuant to enabling legislation. (D) Fifteen million dollars ($15,OOO,D00) shall be used for student housing through the Multifamily Housing Program, subject to the following provisions: (i) The department shall give first priority for projects on land owned by a University of California or California State University campus. Second priority shall be given to projects located within one mile of a University of California or California State University campus that is suffering from a severe shortage of housing and limited availability of developable land as determined by the department. Those determinations shall be set forth in the Notice of Funding Availability and shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of the Government Code. (ii) All funds shall be matched on a one-to-one basis from private sources or by the University of California or California State University. For the purposes of this subparagraph, "University of California" includes the Hastings College of the Law. (iii} Occupancy for the units shall be restricted to students enrolled on a full-time basis in the University of California or California State University. (iv) Income eligibility pursuant to the Multifamily Housing Program shall be established by verification of the combined income of the student and his or her family. (v) Any funds not used for this purpose within 24 months of the date that the funds are made available shall be awarded pursuant to subdivision (a) for the Downtown Rebound Program as set forth in paragraph (1) of subdivision (c) of Section 50898.2. (E) Any funds not encumbered for the purposes set forth in this paragraph, except subparagraph (D), within 30 months of availability shall revert to the Housing Rehabilitation Loan Fund created by Section 50661 for general use in the Multifamily Housing Program. (F) If .the enabling legislation for any program specified in this paragraph fails to be enacted into law in the 2001-02 Regular Session of the Legislature, the specified allocation for that program shall be void and the funds shall revert for general use in the Multifamily Housing Program. (2) One hundred ninety-five million dollars ($195,000,000) shall be transferred to the Emergency Housing and Assistance Fund to be expended for the Emergency Housing and Assistance Program authorized by Chapter 11.5 (commencing with Section 50800 of Part 2). (3) One hundred ninety-five million dollars ($195,000,000} shall be transferred to the Housing Rehabilitation Loan Fund to be expended for the Multifamily Housing Program authorized by Chapter 6.7 (commencing with Section 50675) of Part 2, to be used for supportive housing projects for individuals-and households moving from emergency shelters or transitional housing or those at risk of homelessness. The criteria for selecting projects should give priority to supportive housing for people with disabilities who would otherwise be at high risk of homelessness where the applications represent collaboration with programs that meet the needs of the person's disabilities. The department may provide for higher per-unit loan limits as reasonably necessary to provide and maintain rents affordable to those individuals and households. For purposes of this paragraph, "supportive housing" means housing with no limit on length of stay, that is occupied by the target population, as defined in subdivision (d) of Section 53260, and that is linked to onsite or offsite services that assist the tenant to retain the housing, improve his or her health status, maximize his or her ability to http://www.leeinfo.ca.~wi~„hn,~t~i~A„i~h i~ni i~cnr.~. ,~~~ ,, , ,, ,, ,, ,,, ,__ Page 9 of 11 live, and, when possible, work in the community. (4) Two hundred million dollars ($200,000,000) shall be transferred to the Joe Serna, Jr. Farmworker Housing Grant Fund to be expended for farmworker housing programs authorized by Chapter 3.2 (commencing with Section 50517.5) of Part 2, except for the following: (A) Twenty-five million dollars ($25,000,000) shall be used for projects that serve migratory agricultural workers as defined in subdivision {i) of Section 7602 of Title 25 of the California Code of Regulations. fB) Twenty million dollars ($20,000,000) shall be used for developments that also provide health services to the residents. Recipients of these funds shall be required to provide ongoing monitoring of funded developments to ensure compliance with the requirements of the Joe Serna, Jr. Farmworker Housing Grant Program. Projects receiving funds through this allocation shall be ineligible for funding through the Joe Serna, Jr. Farmworker Housing Grant Program. (C) Any funds not encumbered for the purposes set forth in this paragraph within 30 months of availability shall revert for general use in the Joe Serna, Jr. Farmworker Housing Grant Program. (5) Two hundred five million dollars ($205,000,000) shall be transferred to the Self-Help Housing Fund. Notwithstanding Section 33340 of the Government Code and Section 50697.1, these funds are hereby continuously appropriated without regard to fiscal years to the department to be expended for the purposes of the CalHome Program authorized by Chapter 6 (commencing with Section 50650) of Part 2, except for the following: (A) Seventy-five million dollars ($75,000,000) shall be transferred to the Building Equity and Growth in Neighborhoods Fund to be used for the Building Equity and Growth in Neighborhoods (BEGIN) Program pursuant to enabling legislation. (B) Five million dollars ($5,000,000) shall be used to provide grants to cities, counties, cities and counties, and nonprofit organizations to provide grants for lower income tenants with disabilities for the purpose of making exterior modifications to rental housing in order to make that housing accessible to persons with disabilities. For the purposes of this subparagraph, "exterior modifications" includes modifications that are made to entryways or to common areas of the structure or property. The program provided for under this subparagraph shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of the Government Code. (C) Ten million dollars {$10,000,000) shall be expended for construction management under the California Self-Help Housing Program pursuant to subdivision (b) of Section 50696. (D) Any funds not encumbered for the purposes set forth in this paragraph within 30 months of availability shall revert for general use in the CalHome Program. (E) If the enabling legislation for any program specified in this paragraph fails to be enacted into law in the 2001-02 Regular Session of the Legislature, the specified allocation for that program shall be void and the funds shall revert for general use in the CalHOme Program. (6) Five million dollars ($5,000,000) shall be transferred to the Housing Rehabilitation Loan Fund to be expe*~ded for capital expenditures in support of local code enforcement and compliance programs. This allocation shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 o£ the Government Code. If the moneys allocated pursuant to this paragraph are not expended within three years after being transferred, the department may, in its discretion, transfer the moneys to the Housing Rehabilitation Loan Fund to be expended for the Multifamily Housing Program. (7) Two hundred ninety million dollars ($290,000,000) shall be transferred to the Self-Help Housing Fund: Notwithstanding Section 50697+1, these funds are hereby continuously appropriated to the agency to be expended for the purposes of the California Homebuyer's Downpayment Assistance Program authorized by Chapter 11 (commencing with Section 51500) of Part 3, except for the following: (A) Fifty million dollars ($50,000,000) shall be transferred to the School Facilities Fee Assistance Fund as provided by subdivision (a) of Section 51453 to be used for the Homebuyer Down Payment Assistance Program of 2002 established by Section 51451.5. (B) Eighty-five million dollars ($85,000,000) shall be transferred to the California Housing Loan Insurance Fund to be used for purposes of Part 4 (commencing with Section 51600). (C) Twelve million five hundred thousand dollars ($12,500,000) shall be reserved for downpayment assistance to low-income first-time htCD://www.leginf~ ra an~~~r~nh/Lfll/~o„i,.l. 7 ^+n~ i ~cn ~ . • -...- . ... _ . _ Page 10 of 11 homebuyers who, as documented to the agency by a nonprofit organization certified and funded to provide homeownership counseling by a federally funded national nonprofit corporation, is purchasing a residence in a community revitalization area targeted by the nonprofit organization and who has received homeownership counseling from the nonprofit organization. (D) Twenty-five million dollars ($25,000,000) shall be used for downpayment assistance pursuant to Section 51505. After 18 months of availability, if the agency determines that the funds set aside pursuant to this section will not be utilized for purposes of Section 51505, these funds shall be available for the general use of the agency for the purposes of the California Homebuyer's Downpayment Assistance Program, but may also continue to be available for the purposes of Section 51505. {E) Funds not utilized for the purposes set forth in subparagraphs (B) and (C) within 30 months shall revert for general use in the California Homebuyer's Downpayment Assistance Program. (8) One hundred million dollars {$100,000,000) shall be transferred to the Jobs Housing Improvement Account to be expended as capital grants to local governments for increasing housing pursuant to enabling legislation. If the enabling legislation fails to become law in the 2001-02 Regular Session of the Legislature, the specified allocation for this program shall be void and the funds shall .revert for general use in the Multifamily Housing Program as specified in paragraph (1) of subdivision (a). (b) No portion of the money allocated pursuant to this section may be expended for project operating costs, except that this section does not preclude expenditures for operating costs from reserves required to be maintained by or on behalf of the project sponsor. (c) The Legislature may, from time to time, amend the provisions of law related to programs to which funds are, or have been, allocated pursuant to this section for the purpose of improving the efficiency and effectiveness of the program, or for the purpose of furthering the goals of the program. (d) The Bureau of State Audits shall conduct periodic audits to ensure that bond proceeds are awarded in a timely fashion and in a manner consistent with the requirements of this part, and that awardees of bond proceeds are using funds in compliance with applicable provisions of this part. SEC. 9. Sections T.5 to 8, inclusive, of this act shall become operative upon the adoption by the voters of the Housing and Emergency Shelter Trust Fund Act of 2002, as set forth in Section 8 of this act. SEC. 10. (a) Section B of this act shall be submitted to the voters at the November 5, 2002, statewide general election in accordance with provisions of the Government Code and the Elections Code governing the submission of statewide measures to the voters. (b) Notwithstanding any other provision of law, all ballots of the election shall have printed thereon and in a square thereof, exclusively, the words: "Housing and Emergency Shelter Trust Fund Act of 2002" and in the same square under those words, the following in 8-point type: "This act provides for the Housing and Emergency Shelter Trust Fund Act of 2002. For the purpose of providing shelters for battered women, clean and safe housing for low-income senior citizens, emergency shelters for homeless families with children, housing with social services for the homeless and mentally ill, repairs and accessibility improvements to apartments for families and handicapped citizens, homeownership assistance for military veterans, and security improvements and repairs to existing emergency shelters, shall the state create a housing trust fund by issuing bonds totaling two billion one hundred million dollars ($2,100,000,000), paid from existing state funds at an average annual cost of dollars ($_) per year over the _ bonds, with the requirement that every city and countyaisleligoiblehe to receive funds as specified in the measure and with all expenditures subject to an independent audit? (The Attorney General shall fill in the blanks in this subdivision with the figures provided by the Legislative .Analyst for the annual average cost of the bonds and the number of years required to retire the bonds.)" Opposite the square, there shall be left spaces in which the voters may place a cross in the manner required by law to indicate whether they vote for or against the act. (c) Notwithstanding Sections 13247 and 13281 of the Elections Code, the language in subdivision (b) shall be the only language included in the ballot label for the condensed statement of the ballot title, and the Attorney General shall not supplement, subtract from, or revise that language, except that the Attorney General may include the financial impact summary prepared pursuant to Section 9087 of the Elections Code and Section 88003 of the Government Code. http://wu>~~.le~infncaon[~1rn+h/F~;11/co..io1. 1'1111 incn._y .~~-, .. ., ,,,_~.__ ~_`~" Page 11 of 11 The ballot label is the condensed statement of the ballot title and the financial impact summary. {d) Where the voting in the election is done by means of voting machines used pursuant to law in the manner that carries out the intent of this section, the use of the voting machines and the expression of the voters' choice by means thereof are in compliance with this section. SEC. 11. It is the intent of the Legislature that, to the extent funds authorized by this act are available to local governmental entities, federally recognized California Indian tribes shall also be eligible to apply for those funds, be considered on the merits of the application, and receive and expend those funds. SEC. 12. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to provide for the submission of Section 8 of this act to the voters at the November 5, 2002, statewide general election, it is necessary that this act take effect immediately. httU://www.le~inf~.ca.<,i,t~/,,,,1,n,;11~ca.+/ot, tnn, ,~;nr_~ .-..,-, ~~ _,.. _. .-- r ..., "4:. , F'.. This Agenda contains a brief general description of each item to be considered. Copies of fhe Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Offrce of fhe Crfy Clerk and are available for public inspection. A person who has a question concerning any of fhe agenda items may call the City Manager of (390) 603- 0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE SPECIAL MEETING OF R E C 1 THE LYNWOOD PUBLIC FINANCE AUTHORITY CITY of LYIVWOOp TO BE HELD ON OCTOBER 23, 2002 CITY CLERKS OFFICE 9:00 A.M. SET 2 2 20Q2 COUNCIL CHAMBERS ~ 1~N 11330 Bullis Road, Lynwood, CA 90262 7~Sty-~WI ~ S ~~~;~ I~, , _ L ~~/ ARTURO REYES ~Gr/C PRESIDENT FERNANDO PEDROZA VICE PRESIDENT PAUL H. RICHARDS, II MEMBER LOUIS BYRD MEMBER RAMON RODRIGUEZ MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) 4. PARKING & TRAFFIC ENFORCEMENT WORKSHOP Comments: In its meeting of October 1, 2002, the members of the Public Finance Authority directed staff to conduct a workshop relative to parking. In this workshop staff has prepared a presentation to cover the following areas: 1. Status of the Parking Meter and Collection Program 2. Status of the Vehicles for Sale Ordinance 3. Establishment of a Parking Authority or Parking District 4. Current staffing level for the in-house parking enforcement program The following are topic areas that the members of the Public Finance Authority may wish to cover by staff: 1. Service option 2. Contract services for Los Angeles County Sheriff and its cost 3. In-house option 4. City prosecutorial services 5. Towing options 6. Storage options 7. Review and provide direction on use and acquisition of internal and contractual services The following documents will also be provided at this workshop: 1. Copies of all ordinances and codes relating to traffic, parking and towing 2. Proposals and letters form those who provide this service 3. All reports prepared by the parking division Recommendation: Staff recommends for the members of the Public Finance Authority to receive a presentation from staff and to provide staff with further directions on this matter ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON NOVEMBER 5, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda,are on frle in the Offrce of the City Cleric and are available for public inspection. A person who has a question concerning any of the agenda items may call fhe City Manager of (310) 603- 0220, exf. 200. Procedures for Addressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERATION ~i ~,~~~ AT THE REGULAR MEETING OF ~-- THE LYNWOOD PUBLIC FINANCE AUTHORI T CI11, 0~ l~Y~~p TO BE HELD ON OCTOBER 15, 2002 CITY CLERKS OFFICE 6:00 P.M. COUNCIL CHAMBERS OCT 1 0 2002 11330 BULLIS ROAD, LYNWOOD, CA 90262 ~ F.. T81yIwWl~l~S~415~~ ARTURO REYES PRESIDENT ,Ga~~-~- ~~ FERNANDO PEDROZA LOUIS BYRD~~ VICE PRESIDENT MEMBER PAUL H. RICHARDS, II RAMON RODRIGUEZ MEMBER MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER ' 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING, (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) 4. MINUTES OF PREVIOUS MEETING None 5. Homeland Security Block Grant Act Comments: One of the grave effects felt throughout local govemments, due to the September 11th ten-orist attacks on the United States of America, is that many communities are finding themselves financially distressed in dealing with the war against terrorism. Heightened security alerts by the federal government have caused public safety costs to dramatically increase over the past year. In an effort to provide some federal relief to communities facing these costs, Senator Hillary Clinton has introduced the Homeland Security Block Grant Act (S. 1737) that would provide $3 billion to local governments. Recommendation: Staff respectfully requests that the President & Members of the Lynwood Public Finance Authority receive and file this item and authorize letters of support to be generated for expedient authorization and implementation of the Homeland Security Block Grant Act. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON NOVEMBER 5, 2002 AT 6:00 P.M., 1N THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. MEMORANDUM DATE: October 15, 2002 TO: HONORABLE PRESIDENT AND MEMBERS OF THE LYNWOOD PUBLIC FINANCE AUTHORITY FROM: Faustin Gonzales, Chief Administrative Officer BY: Autra C. Adams, Program Development Coordinator SUBJECT: Homeland Security Block Grant Act PURPOSE: To inform the President & Members of the Lynwood Public Finance Authority of this pending legislation and recommend authorization for letters of support to be generated for expedient authorization and implementation of the Homeland Security Block Grant Act. BACKGROUND: One of the grave effects felt throughout local governments, due to the September 11 m terrorist attacks on the United States of America, is that many communities are finding themselves financially distressed in dealing with the war against. terrorism. Heightened security alerts by the federal government have caused public safety costs to dramatically increase over the past year. ANALYSIS: There are currently several "key" legislative items included in the President's Homeland Security Plan that are being debated at the federal level. However, none of these items if legislatively enacted and funded would provide any direct relief to units of local government for their increased fiscal burden for costs associated with heightened security alerts. In an effort to provide some federal relief to communities facing these costs, Senator Hillary Clinton has introduced the Homeland Security Block Grant Act. Homeland Securifv Block Grant Act (S. 1737) This legislation will provide $3 billion to local governments beginning. 70% of the funds will go directly to qualifying local governments. The remaining 30% will be sent to the states, which will serve as a pass through for funds directed to smaller non-qualifying communities. Local governments will be required to provide 10% in matching funds of the amount of the grant awarded. The Act requires that any metropolitan area or urban county interested in receiving funds must prepare a statement of homeland security objectives and projected use of funds that shows how the funds will improve public safety in preparation and response to terrorist threats. :: Activities that are eligigle for assistance under this Act include: 1. Funding for additional law enforcement, fire and emergency resources, including overtime expenses; 2. Purchasing and refurbishing personal protective equipment for fire, police, and emergency personnel and state-of-the-art technology to improve communication and streamline efforts; 3. Cyber and infrastructure security, including water treatment plants, distribution systems, nuclear power plants and other energy systems, tunnels and bridges, oil and gas pipelines, chemical plants, and the transportation of hazardous substances; 4. Local Emergency Planning Committees to design, review, and improve disaster response systems; 5. Coordinated efforts to share information proactively with all relevant agencies involving terrorism preparedness as well as timely notification systems that enable jurisdiction to communicate with each other when a threat emerges; 6. Communication systems to provide information to citizens in a timely manner about facts of any threat and the precautions the public should take; and 7. Devising a homeland security plan. Several national organizations have endorsed this legislation including the U.S. Conference of Mayors, The National Association of Police Organizations, the National League of Cities and the International Association of Fire Fighters. This legislation was originally introduced in late 2001, but has had very little movement through the legislative process because it is not regarded as a priority of the Administration. RECOMMENDATION: Staff respectfully requests that the President & Members of the Lynwood Public Finance Authority receive and file this item and authorize letters of support to be generated for expedient authorization and implementation of the Homeland Security Block Grant Act. ATTACHMENT S 1737 IS 107th CONGRESS lst Session S. 1737 To provide for homeland security block grants. IN THE SENATE DF THE UNITED STATES November 28, 2001 Mrs. CLINTON (for herself, Ms. MIKULSKI, Mrs. FEINSTEIN, Mr. DUBBIN, and Mr. SCHUMER) introduced the following bill; which was read twice and referred to the Committee on the Judiciary A BILL To provide for homeland security block grants. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) SHORT TITLE- This Act may be cited as the 'Homeland Security Block Grant Act'. (b) TABLE OF CONTENTS- Sec. 1. Short title; table of contents. Sec. 2. Findings. Sec. 3. Definitions. Sec. 4. Grants to States, units of general local government and Indian tribes; authorizations. Sec. S. Statement of activities and review. Sec. 6. Activities eligible for assistance. Sec. 7. Allocation and distribution of funds. Sec. 8. Nondiscrimination in programs and activities. Sec. 9. Remedies for noncompliance with requirements. Sec. 10. Reporting requirements. Sec. 11. Consultation by Attorney General.. Sec. 12. Interstate agreements or compacts; purposes. Sec. 13. Matching requirements; suspension of requirements for economically distressed areas. SEC. 2. FINDINGS. Congress makes the following findings: (1) In the wake of the September 11, 2001, terrorist attacks on our country, communities all across American now find themselves on the front lines in the war against terrorism on http://thomas.loc.gov/cgi-bin/query/C?c 107:./temp/~-c 107UPMw8U 10/8!02 United States soil. (2) We recognize that these communities will be forced to shoulder a significant portion of the burden that goes along with that responsibility. We believe that local governments should not have to bear that responsibility alone. (3) Our homeland defense will only be as strong as the weakest link at the State and local level. By providing our communities with the resources and tools they need to bolster emergency response efforts and provide for other emergency response initiatives, we will have abetter-prepared home front and a stronger America. SEC. 3. DEFINITIONS. (a) DEFINITIONS- In this Act: (1) ATTORNEY GENERAL- The term 'Attorney General' means the United States Attorney General. (2) CITY- The term 'city' means-- (A) any unit of general local government that is classified as a municipality by the United States Bureau of the Census; or (B) any other unit of general local government that is a town or township and which, in the determination of the Attorney General-- (i) possesses powers and performs functions comparable to those associated with municipalities; (ii) is closely settled; and (iii) contains within its boundaries no incorporated places as defined by the United States Bureau of the Census that have not entered into cooperation agreements with such town or township to undertake or to assist in the performance of homeland security objectives. (3) EXTENT OF POVERTY- The term 'extent of poverty' means the number of persons whose incomes are below the poverty level. Poverty levels shall be determined by the Attorney General pursuant to criteria provided by the Office of Management and Budget taking into account and making adjustments, if feasible and •appropriate and in the sole discretion of the Attorney General, for regional or area variations in income and cost of living, and shall be based on data referable to the same point or period in time. (4) FEDERAL GRANT-IN-AID PROGRAM- The term 'Federal grant-in-aid program' means a program of Federal financial assistance other than loans and other than the assistance provided by this Act. {5) INDIAN TRIBE- The term 'Indian tribe' means any Indian tribe, band, group, and nation, including Alaska Indians, Aleuts, and Eskimos, and any Alaskan Native Village, of the United States, which is considered an eligible recipient under the Indian Self- Determination and Education Assistance Act (Public Law 93-638) or was considered an eligible recipient under chapter 67 of title 31, United States Code, prior to the repeal of such chapter. (6) METROPOLITAN AREA- The term 'metropolitan area' means a standard metropolitan statistical area as e$tablished by the Office of Management and Budget. (7) METROPOLITAN CITY- The term 'metropolitan city' means-- (A) a city within a metropolitan area that is the central city of such area, as defined and used by the Office of Management and Budget; or (B) any other city, within a metropolitan area, which has a population of fifty thousand or more. Any city that was classified as a metropolitan city for at least 2 years pursuant to the first http://thomas.loc.gov/cgi-bin/query/C?c 107:./temp/~c 107UPMw8U 10/8/02 sentence of this paragraph shall remain classified as a metropolitan city. Any unit of general local government that becomes eligible to be classified as a metropolitan city, and was not classified as a metropolitan city in the immediately preceding fiscal year, may, upon submission of written notification to the Attorney General, defer its classification as a metropolitan city for all purposes under this Act, if it elects to have its population included in an urban county under subsection (d). Notwithstanding the second sentence of this paragraph, a city may elect not to retain its classification as a metropolitan city. Any unit of general local government that was classified as a metropolitan city in any year, may, upon submission of written notification to the Attomey General, relinquish such classification for all purposes under this Act if it elects to have its population included with the population of a county for purposes of qualifying for assistance (for such following fiscal year) under section 5(e) as an urban county {8) NONQUALIFYING COMMUNITY- The term 'nonqualifying community' means an area that is not a metropolitan city or part of an urban county and does not include Indian tribes. (9) POPULATION- The term 'population' means total resident population based on data compiled by the United States Bureau of the Census and referable to the same point or period of time. (10) STATE- The term 'State' means any State of the United States, or any instrumentality thereof approved by the Governor; and the Commonwealth of Puerto Rico. (1 i) UNIT OF GENERAL LOCAL GOVERNMENT- The term 'unit of general local government' means any city, county, town, township, parish, village, or other general purpose political subdivision of a State; a combination of such political subdivisions is recognized by the Secretary; and the District of Columbia. (12) URBAN COUNTY- The term 'urban county' means any county within a metropolitan area. (b) BASIS AND MODIFICATION OF DEFINITIONS- Where appropriate, the definitions in subsection (a) shall be based, with respect to any fiscal year, on the most recent data compiled by the United States Bureau of the Census and the latest published reports of the Office of Management and Budget available ninety days prior to the beginning of such fiscal year. The Attorney General may by regulation change or otherwise modify the meaning of the terms defined in subsection (a) in order to reflect any technical change or modification thereof made subsequent to such date by the United States Bureau of the Census or the Office of Management and Budget. (c) DESIGNATION OF PUBLIC AGENCIES- One or more public agencies, including existing local public agencies, maybe designated by the chief executive officer of a State or a unit of general local government to undertake activities assisted under this Act. (d) LOCAL GOVERNMENTS, INCLUSION IN URBAN COUNTY POPULATION- With respect to program years beginning with the program year for which grants are made available from amounts appropriated for fiscal year 2002 under section 4, the population of any unit of general local government which is included in that of an urban county as provided in subsection (a)(6) shall be included in the population of such urban county for three program years beginning with the program year in which its population was first so included and shall not otherwise be eligible for a grant as a separate entity, unless the urban county does not receive a grant for any year during such three-year period. {e) URBAN COUNTY- Any county seeking qualification as an urban county, including any urban county seeking to continue such qualification, shall notify, as provided in this subsection, each unit of general local goverrunent, which is included therein and is eligible to elect to have its population excluded from that of an urban county, of its opportunity to make such an election. Such notification shall, at a time and in a manner prescribed by the Attorney General, be provided so as to provide a reasonable period for response prior to the period for which such qualification is sought. The population of any unit of general local government which is provided such notification and which does not inform, at a time and in a manner prescribed by the Attorney General, the county of its election to exclude its population from that of the county shall, if the county qualifies as an urban county, be included in the population of such urban county as provided in subsection (d). http://Thomas.loc.gov/cgi-bin/query/C?c 107:./temp/~c 107UPMw8U 10!8/02 SEC. 4. GRANTS TO STATES, UNITS OF GENERAL LOCAL GOVERNMENT AND INDIAN TRIBES; AUTHORIZATIONS. The Attorney General is authorized to make grants to States, units of general local government, and Indian tribes to carry out activities in accordance with the provisions of this Act. For purposes of assistance under section 7, there is authorized to be appropriated $3,000,000,000 in fiscal year 2002, and such additional sums as are authorized thereafter. SEC. 5. STATEMENT OF ACTIVITIES AND REVIEW. (a) APPLICATION- Prior to the receipt in any fiscal year of a grant under section 7(b) by any metropolitan city or urban county, under section 7(d) by any State, or under section 7(d)(2) by any unit of general local government, the grantee shall have indicated its interest in receiving funds by preparing a statement of homeland security objectives and projected use of funds and shall have provided the Attorney General with the certifications required in subsection (b) and, where appropriate, subsection (c). In the case of metropolitan cities and urban counties receiving grants pursuant to section 7(b) and in the case of units of general local government receiving grants pursuant to section 7(d}(2), the statement of projected use of funds shall consist of proposed homeland security activities. In the case of States receiving grants pursuant to section 7(d), the statement of projected use of funds shall consist of the method by which the States will distribute funds to units of general local government. In preparing the statement, the grantee shall consider any view of appropriate law enforcement, and emergency response authorities and may, if deemed appropriate by the grantee, modify the proposed statement. A copy of the final statement shall be furnished to the Attorney General and the Office of Homeland Security together with the certifications required under subsection (b) and, where appropriate, subsection (c). Any final statement of activities may be modified or amended from time to time by the grantee in accordance with the same procedures required in this paragraph for the preparation and submission of such statement. (b) CERTIFICATION OF ENUMERATED CRITERIA BY GRANTEE TO SECRETARY- Any grant under section 7 shall be made only if the grantee certifies to the satisfaction of the Attorney General that-- (1) it has developed a homeland security plan pursuant to section 5 that identifies both short- and long-term homeland security needs that have been developed in accordance with the primary objective and requirements of this Act; and (2) the grantee will comply with the other provisions of this Act and with other applicable laws. (c) SUBMISSION OF ANNUAL PERFORMANCE REPORTS, AUDITS AND ADJUSTMENTS- (1) IN GENERAL- Each grantee shall submit to the Attorney General, at a time determined by the Attorney General, a performance and evaluation report concerning the use of funds made available under section 7, together with an assessment by the grantee of the relationship of such use to the objectives identified in the grantee's statement under subsection (a). The Attorney General shall encourage and assist national associations of grantees eligible under section 7, national associations of States, and national associations of units of general local government in nonqualifying areas to develop and recommend to the Attorney General, within 1 year after the effective date of this sentence, uniform recordkeeping, performance reporting, evaluation reporting, and auditing requirements for such grantees, States, and units of general local government, respectively. Based on the Attorney General's approval of these recommendations, the Attorney General shall establish such requirements for use by such grantees, States, and units of general local government. (2) REVIEWS AND AUDITS- The Attorney General shall, at least on an annual basis, , make such reviews and audits as may be necessary or appropriate to determine-- (A) in the case of grants made under section 7(b), whether the grantee has carved out its activities and, where applicable, whether the grantee has carried out those activities and its certifications in accordance with the requirements. and the primary objectives of this Act and with other applicable laws, and whether the grantee has a continuing capacity to carry out those activities in a timely manner; and (B) in the case of grants to States made under section 7(d), whether the State has http://thomas.loc.gov/cgi-bin/query/C?c 107:./temphc 107UPMw8U 10/8/02 distributed funds to units of general local government in a timely manner and in conformance to the method of distribution described in its statement, whether the State has carried out its certifications incompliance with the requirements of this Act and other applicable laws, and whether the State has made such reviews and audits of the units of general local government as may be necessary or appropriate [o determine whether they have satisfied the applicable performance criteria described in subparagraph (A}. (3) ADNSTMENTS- The Attorney General may make appropriate adjustments in the amount of the annual grants in accordance with the Attorney General's findings under this subsection. Wirth respect to assistance made available to units of general local government under section 7(d), the Attorney General may adjust, reduce, or withdraw such assistance, or take other action as appropriate in accordance with the Attorney General's reviews and audits under this subsection, except that funds already expended on eligible activities under this Act shall not be recaptured or deducted from future assistance to such-units of general local government. (d) AUDITS- Insofar as they relate to funds provided under this Act, the financial transactions of recipients of such funds may be audited by the General Accounting Office under such rules and regulations as may be prescribed by the Comptroller General of the United States. The representatives of the General Accounting Office shall have access to all books, accounts, records, reports, files, and other papers, things, or property belonging to or in use by such recipients pertaining to such financial transactions and necessary to facilitate the audit. (e) METROPOLITAN CITY AS PART OF URBAN COUNTY- In any case in which a metropolitan city is located, in whole or in part, within an urban county; the Attorney General may, upon the joint request of such city and county, approve the inclusion of the metropolitan city as part of the urban county for purposes of submitting a statement under section 5 and carrying out activities under this Act. SEC. 6. ACTIVITIES ELIGIBLE FpR ASSISTANCE. Activities assisted under this Act may include only-- (1) funding additional law enforcement, fire, and emergency resources, including covering overtime expenses; (2) purchasing and refurbishing personal protective equipment for fire, police, and emergency personnel and acquire state-of--the-art technology to improve communication and streamline efforts;. (3) improving cyber and infrastructure security by improving-- (A) security for water treatment plants, distribution systems, and other water infrastructure; nuclear power plants and other power infrastructure; (B) tunnels and bridges; (C) oil and gas pipelines and storage facilities; and (D) chemical plants and transportation of hazardous substances; (4) assisting Local Emergency Planning Committees so that local public agencies can design, review, and improve disaster response systems; (5) assisting communities in coordinating their efforts and sharing information with all relevant agencies involved in responding to terrorist attacks; (6) establishing timely notification systems that enable communities to communicate with each other when a threat emerges; {7) improving communication systems to provide information to the public in a timely manner about the facts of any threat and the precautions the public should take; and (8) devising a homeland security plan, including determining long-term goals and short- term objectives, evaluating the progress of the plan, and carrying out the management, http://thomas.loc.gov/cgi-bin/query/C?c 107:./temp/~c 107UPMw8U 10/8/02 coordination, and monitoring of activities necessary for effective planning implementation. SEC. 7. ALLOCATION AND DISTRIBUTION OF FUNDS. (a) ALLOCATION AND DISTRIBUTION OF FUNDS; SET-ASIDE FOR INDIAN TRIBES- (1) ALLOCATION- For each fiscal year, of the amount approved in an appropriation Act under section 4 for grants in a year (excluding the amounts provided for use in accordance with section 6), the Attorney General shall reserve for grants to Indian tribes 1 percent of the amount appropriated under such section. The Attorney General shall provide for distribution of amounts under this paragraph to Indian tribes on the basis of a competition conducted pursuant to specific criteria for the selection of Indian tribes to receive such amounts. The criteria shall be contained in a regulation promulgated by the Attorney General after notice and public comment. (2) REMAINING ALLOCATION- Of the amount remaining after allocations pursuant to paragraph (1), 70 percent shall be allocated by the Attorney General to metropolitan cities and urban counties. Except as otherwise specifically authorized, each metropolitan city and urban county shall be entitled to an annual grant, to the extent authorized beyond fiscal year 2002, from such allocation in an amount not exceeding its basic amount computed pursuant to paragraph (1) or (2) of subsection (b). (b) COMPUTATION OF AMOUNT ALLOCATED TO METROPOLITAN CITIES AND URBAN COUNTIES- (1) IN GENERAL- The Attorney General shall determine the amount to be allocated to each metropolitan city based on the population of that metropolitan city. (2) URBAN COUNTIES- The Attorney General shall determine the amount to be allocated to each urban county based on the population of that urban county. (3) EXCLUSIONS- In computing amounts or exclusions under this section with respect to any urban county, there shall be excluded units of general local government located in the county the populations that are not counted in determining the eligibility of the urban county to receive a grant under this subsection, except that there shall be included any independent city (as defined by the Bureau of the Census} which-- (A) is not part of any county; (B) is not eligible for a grant pursuant to subsection (b)(1); (C) is contiguous to the urban county; (D) has entered into cooperation agreements with the urban county which provide that the urban county is to undertake or to assist in the undertaking of essential community development and housing assistance activities with respect to such independent city; and (E) is not included as a part of any other unit of general local government for purposes of this section. Any independent city that is included in any fiscal year for. purposes of computing amounts pursuant to the preceding sentence shall not be eligible to receive assistance under subsection (d) with respect to such fiscal year. (4) INCLUSIONS- In computing amounts under this section with respect to any urban county, there shall be included all of the area of any unit of local government which is part of, but is not located entirely within the boundaries of, such urban county if the part of such unit of local government which is within the boundaries of such urban county would otherwise be included in computing the amount for such urban county under this section, and if the part of such unit of local government that is not within the boundaries of such urban county is not included as a part of any other unit of local government for the purpose of this section: Any amount received by such urban county under this section may be used with respect to the part of such unit of local government that is outside the boundaries of such urban county. http://thomas.loc.gov/cgi-bin/query/C?c 107:./temp/~c 107UPMw8U 10/8/02 (5) POPULATION- (A) Where data are available, the amount determined under paragraph (1) for a metropolitan city that has been formed by the consolidation of one or more metropolitan cities with an urban county shall be equal to the sum of the amounts that would have been determined under paragraph (1) for the metropolitan city or cities and the balance of The consolidated government, if such consolidation had not occurred. This paragraph shall apply only to any consolidation that-- (i) included all metropolitan cities that received grants under this section for the fiscal year preceding such consolidation and that were located within the urban county; (ii) included the entire urban county that received a grant under this section for the fiscal year preceding such consolidation; and (iii) took place on or after Jariuary 1, 2002. (B) The population growth rate of all metropolitan cities referred to in section 3 shall be based on the population of-- (i) metropolitan cities other than consolidated governments the grant for which is determined under this paragraph; and (ii) cities that were metropolitan cities before their incorporation into consolidated governments. For purposes of calculating the entitlement share for the balance of the consolidated government under this paragraph, the entire balance shall be considered to have been an urban county. (c) REALLOCATION- (1) IN GENERAL- Except as provided in paragraph (2), any amounts allocated to a metropolitan city or an urban county pursuant to the preceding provisions of this section that are not received by the city or county for a fiscal year because of failure to meet the requirements of subsections (a) and (b) of section 5, or that otherwise became available, shall be reallocated in the succeeding fiscal year to the other metropolitan cities and urban counties in the same metropolitan area that certify to the satisfaction of the Attorney General that they would be adversely affected by the loss of such amounts from the metropolitan area. The amount of the share of funds reallocated under this paragraph for any metropolitan city or urban county shall bear the same ratio to the total of such reallocated funds in the metropolitan area as the amount of funds awarded to the city or county for the fiscal year in which the reallocated funds become available bears to the total amount of funds awarded to all metropolitan cities and urban counties in the same metropolitan area for that fiscal year. (2) TRANSFER- Notwithstanding the provisions of paragraph {1), the Attorney General may upon request transfer responsibility to any metropolitan city for the administration of any amounts received, but not obligated, by the urban county in which such city is located if-- (A) such city was an included unit of general local government in such county prior to the qualification of such city as a metropolitan city; (B) such amounts were designated and received by such county for use in such city prior to the qualification of such city as a metropolitan city; and (C) such city and county agree to such transfer of responsibility for the administration of such amounts. r(d) ALLOCATION TO STATES ON BEHALF OF NON-QUALIFYING COMMUNITIES- (1) IN GENERAL- Of the amount approved in an appropriation Act under section 4 that remains after allocations pursuant to paragraphs (i) and (2) of subsection (a), 30 percent shall be allocated among the States for use in nonqualifying areas. The allocation for each State shall be based on the population of that State, factoring in the population of qualifying communities in that State, and the population of qualifying communities of all States. The Attorney General shall, in order to compensate for The discrepancy between the total of the amounts to be allocated under this paragraph and the total of the amounts available under such paragraph, make a pro rata reduction of each amount allocated to the nonqualifying http://thomas.loc.gov/cgi-bin/query/C?c 107:./temp/~c 107UPMw8U 10/8/02 communities in each State under such paragraph so that the nonqualifying communities in each State will receive an amount that represents the same percentage of the total amount available under such paragraph as the percentage which the nonqualifying areas of the same State would have received under such paragraph if the total amount available under such .paragraph had equaled the total amount which was allocated under such paragraph. (2) DISTRIBUTION- (A) Amounts allocated under paragraph (1) shall be distributed to units of general local government located in nonqualifying areas of the State to carry out activities in accordance with the provisions of this Act-- (i) by a State that has elected, in such manner and at such time as the Attorney General shall prescribe, to distribute such amounts consistent with the statement submitted under section 5(a); or (ii) by the Attorney General, in any case described in subparagraph (B), for use by units of general local government in accordance with paragraph (3)(B). (B) The Attorney General shall distribute amounts allocated under paragraph (1) if the State has not elected to distribute such amounts. (C) To receive and distribute amounts allocated under paragraph (1), the State must certify that it, with respect to units of general local government in nonqualifying areas-- (i) provides or will provide technical assistance to units of general local government in connection with homeland security initiatives; {ii) will not refuse to distribute such amounts to any unit of general local government on the basis of the particular eligible activity selected by such unit of general local government to meet its homeland security objectives, except that this clause may not be considered to prevent a State from establishing priorities in distributing such amounts on the basis of the activities selected; and (iii) has consulted with local elected officials from among units of general local government located in nonqualifying areas of that State in determining the method of distribution of funds required by subparagraph (A). (D) To receive and distribute amounts allocated under paragraph (1), the State shall certify that each unit of general local government to be distributed funds will be required to identify its homeland security objectives, and the activities to be undertaken to meet such objectives. (3) ADMINISTRATION- (A) If the State receives and distributes such amounts, it shall be responsible for the administration of funds so distributed. The State shall pay from its own resources all administrative expenses incurred by the State in carrying out its responsibilities under this Act, except that from the amounts received for distribution in nonqualifying areas, the State may deduct an amount to cover such expenses and its administrative expenses not to exceed the sum of $150,000 plus 50 percent of any such expenses under this Act in excess of $150,000. Amounts deducted in excess of $150,000 shall not exceed 2 percent of the amount so received. (B) If the Attorney General distributes such amounts, the distribution shall be made in accordance with determinations of the Attorney General pursuant to statements submitted and the other requirements of section 5 (other than subsection (c)) and in accordance with regulations and procedures prescribed by the Attorney General. (C) Any amounts allocated for use in a State under paragraph (1) that are not received by the State for any fiscal year because of failure to meet the requirements of subsection (a) or (b) of section 5 shall be added to amounts allocated to all States under paragraph (1) for the succeeding fiscal year. (D) Any amounts allocated for use in a State under paragraph (1) that become available as a result of the closeout of a grant made by the Attorney General under this section in nonqualifying areas of the State shall be added to amounts allocated to the State under paragraph (1) for the fiscal year in which the amounts become so available. (4) SINGLE UNIT- Any combination of units of general local governments may not be http://thomas.loc.gov/cgi-bin/query/C?c 107:./temp/~c 107UPMw8U 10/8/02 required to obtain recognition by the Attorney General pursuant to section 3(2) to be treated as a single unit of general local government for purposes of this subsection. (5) DEDUCTION- From the amounts received under paragraph (1) for distribution in nonqualifying areas, the State may deduct an amount, not to exceed 1 percent of the amount so received, to provide technical assistance to local governments. (6) APPLICABILITY- Any activities conducted with amounts received by a unit of general local government under this subsection shall be subject to the applicable provisions of this Act and other Federal law in the same manner and to the same extent as activities conducted with amounts received by a unit of general local government under subsection (a). (e) QUALIFICATIONS AND DETERMINATIONS- The Attorney General may fix such qualification or submission dates as he determines are necessary to permit the computations and determinations required by this section to be made in a timely manner, and all such computations and determinations shall be final and conclusive. (f) PRO RATA REDUCTION AND INCREASE- If the total amount available for distribution in any fiscal year to metropolitan cities and urban counties under this section is insufficient to provide the amounts to which metropolitan cities and urban counties would be entitled under subsection (b), and funds are not otherwise appropriated to meet the deficiency, the Attorney General shall meet the deficiency through a pro rata reduction of all amounts determined under subsection (b). If the total amount available for distribution in any fiscal year to metropolitan cities and urban counties under this section exceeds the amounts to which metropolitan cities and urban counties would be entitled under subsection {b), the Attorney General shall distribute the excess through a pro rata increase of all amounts determined under subsection (b). SEC. 8. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES. No person in the United States shall on the ground of race, color, national origin, religion, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this Act. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.) or with respect to an otherwise qualified handicapped individual as provided in section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) shall also apply to any such program or activity. SEC. 9. REMEDIES FOR NONCOMPLIANCE WITH REQUIREMENTS. If the Attorney General finds after reasonable notice and opportunity for hearing that a recipient of assistance under this Act has failed to comply substantially with any provision of this Act, the Attorney General, until he is satisfied that there is no longer any such failure to comply, shall-- (1) terminate payments to the recipient under this Act; {2) reduce payments to the recipient under this Act by an amount equal to the amount of such payments which were not expended in accordance with this Act; or (3) limit the availability of payments under this Act to programs, projects, or activities not affected by such failure to comply. SEC. 10. REPORTING REQUIREMENTS. (a) IN GENERAL- Not later than 180 days after the close of each fiscal year in which assistance under this Act is furnished, the Attorney General shall submit to Congress a report which shall .contain-- (1) a description of the progress made in accomplishing the objectives of this Act; (2) a summary of the use of such funds during the preceding fiscal year; and (3) a description of the activities carried out under section 7. (b) REPORTS TO THE ATTORNEY GENERAL- The Attorney General is authorized to require recipients of assistance under this Act to submit to him such reports and other information as may be necessary in order for the Attorney General to make the report required by subsection (a). http://thomas.loc.gov/cgi-bin/query/C?c 107:./temp/~c 107UPMw8U 10/8/02 SEC. 11. CONSULTATION BY ATTORNEY GENERAL. In carrying out the provisions of this Act including the issuance of regulations, the Attorney General shall consult with the Office of Homeland Security and other Federal departments and agencies administering Federal grant-in-aid programs. SEC. 12. INTERSTATE AGREEMENTS OR COMPACTS; PURPOSES. The consent of the Congress is hereby given to any two or more States to enter into agreements or compacts, not in conflict with any taw of the United States, for cooperative effort and mutual assistance in support'of homeland security planning and programs carried out under this Act as they pertain to interstate areas and to localities within such States, and to establish such agencies, joint or otherwise, as they may deem desirable for making such agreements and compacts effective. SEC. 13. MATCHING REQUIREMENTS; SUSPENSION OF REQUIREMENTS FOR ECONOMICALLY DISTRESSED AREAS. (a) REQUIREMENT- Grant recipients shall contribute from funds, other than those received under this Act, 10 percent of the total funds received under this Act. Such funds shall be used in accordance with the grantee's statement of homeland security objectives. (b) ECONOMIC DISTRESS- Grant recipients that are deemed economically distressed shall be waived from the matching requirement set forth in this section. END http://thomas.loc.gov/cgi-bin/query/C?c 107:./temp/-c 107UPMw8U 10/8/02 This Agenda contains a brief general descripfion of each item to be considered. Copies of the 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. A person who has a question concerning any of the agenda items may call the Cify Manager at (310) 603- 0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERATION P~-~ t I I~1 ARTURO REYES C~ O~ PRESIDENT ~-~'~`J FERNANDO PEDROZA LOUIS BYRD VICE PRESIDENT MEMBER PAUL H. RICHARDS, II RAMON RODRIGUEZ MEMBER MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY AT THE SPECIAL MEETING OF ~ ~ ~;, ~ I V i` ,,, THE LYNWOOD PUBLIC FINANCE AUTHORITY, CfTY OP LYNWOOU TO BE HELD ON OCTOBER 14, 2002 f CITY CLERKS OFFICE I 6:00 P.M. DCT 1 f1 ?Of~ COUNCIL CHAMBERS 11330 Bullis Road, Lynwood, CA 90262 $ uIWN+~~1. 814~5~6 PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM iS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT 1S ALL -RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) 4. PROPOSED FY 02-03 BUDGET PLAN r Comments: The Budget Process started in early April when staff presented athree-year projection of all funds based upon current expenditure level. The April numbers showed annual expenditures at a higher level #han the annual revenues in the General Fund. This results in the reliance on the General Fund reserves to sustain on-going operations. To reverse this trend, the Department Directors scrutinized their departmental operation and ascertained areas to streamline without critically impacting services as well as to continue to meet our obligations. Base on those meetings the following corrective actions were formulated, which embody the proposed budget: ^ Decrease operational cost, ^ Reorganization of Departments for greater efficiency, • Enhancement of ongoing revenues, ^ One Time Potential Revenue Sources, and ^ Scheduling of payback of general fund liabilities, If the proposed budget is adopted, the City can reduce the spending above revenues to a level which when coupled with future new revenues sources wilt assure a healthy financial environment for the City. Recommendation: Staff recommends that the Members of the Lynwood Public Finance Authority review, discuss and provide direction on the proposed draft budget. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON OCTOBER 15, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the OfFce of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603- 0220, ext. 200. Procedures for Addressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A` FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE SPECIAL MEETING OF ~- -~L`~~ ~~~ THE LYNWOOD PUBLIC FINANCE AUTHORITY gtT~j,o LYNIr` ~ ~'" TO BE HELD ON OCTOBER 10, 2002 ~ crry ~LFRxs ~ ~~~ f 9:00 A.M. ,~~,; COUNCIL CHAMBERS t~ ~' ?i;; ; 11330 Bullis Road, Lynwood, CA 90262 ~~g~`~I~t4f'~/1 ~ Pik - t~lgl~-F ARTURO REYES ~~`~~~ PRESIDENT Q~ ~~ FERNANDO PEDROZA LOUIS BYRD VICE PRESIDENT MEMBER PAUL H. RICHARDS, II RAMON RODRIGUEZ MEMBER MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, li Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS {Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part lll, Paragraph 5.) 4. PROPOSED FY 02-03 BUDGET PLAN Comments: The Budget Process started in early April when staff presented athree-year projection of all funds based upon current expenditure level. The April numbers showed annual expenditures at a higher level than the annual revenues in the General Fund. This results in the reliance on the General Fund reserves to sustain on-going operations. To reverse this trend, the Department Directors scrutinized their departmental operation and ascertained areas to streamline without critically impacting services as well as to continue to meet our obligations. Base on those meetings the following corrective actions were formulated, which embody the proposed budget: ^ Decrease operational cost, • Reorganization of Departments for greater efficiency, • Enhancement of ongoing revenues, • One Time Po#ential Revenue Sources, and ^ Scheduling of payback of general fund liabilities, If the proposed budget is adopted, the City can reduce the spending above revenues to a level which when coupled with future new revenues sources will assure a healthy financial environment for the City. Recommendation: Staff recommends that the Members of the Lynwood Public Finance Authority review, discuss and provide direction on the proposed draft budget. PARKING & TRAFFIC ENFORCEMENT WORKSHOP Comments: In its meeting of October 1, 2002, the members of the Public Finance Authority directed staff to conduct a workshop relative to parking. In this workshop staff has prepared a presentation to cover the following areas: 1. Status of the Parking Meter and Collection Program 2. Status of the Vehicles for Sale Ordinance 3. Establishment of a Parking Authority or Parking District 4. Current staffing level for the in-house parking enforcement program The following are topic areas that the members of the Public Finance Authority may wish to cover by staff: 1. Service option 2. Contract services for Los Angeles County Sheriff and its cost 3. In-house option 4. City prosecutorial services. 5. Towing options 6. Storage options 7. Review and provide direction on use and acquisition of internal and contractual services The following documents will also be provided at this workshop: 1. Copies of all ordinances and codes relating to traffic, parking and towing 2. Proposals and letters form those who provide this service 3. All reports prepared by the parking division Recommendation: Staff recommends for the members of the Public Finance Authority to receive a presentation from staff and to provide staff with further directions on this matter ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON OCTOBER 15, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE;CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in .the OfFce of the Cify Cleric and are available for public inspection. A person who has 'a question concerning any of the agenda items may call the City Manager at (310) 603- 0220, ext. 200. Procedures forAddressina the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FJLL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN iT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A :FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. $-~~ `=AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE SPECIAL MEETING OF CITY OF LYNWOOD THE LYNWOOD PUBLIC FINANCE AUTHORITY CITY CLERKS OFFICE TO BE HELD ON OCTOBER 9, 2002 ~ OCT 0 8 2002 ~ 9:00 A.M. COUNCIL CHAMBERS 7~81~1 _ j 11330 Bullis Road, Lynwood, CA 90262 L~, r~ ~ l~ ARTURO REYES PRESIDENT FERNANDO PEDROZA VICE PRESIDENT LOUIS BYRD MEMBER PAUL H. RICHARDS, II MEMBER RAMON RODRIGUEZ MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, It Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) 4. PROPOSED FY 02-03 BUDGET PLAN Comments: The Budget Process started in early April when staff presented athree-year projection of all funds based upon current expenditure level. The April numbers showed annual expenditures at a higher level than the annual revenues in the General Fund. This results in the reliance on the General Fund reserves to sustain on-going operations. To reverse this trend, the Department Directors scrutinized their departmental operation and ascertained areas to streamline without critically impacting services as well as to continue to meet our obligations. Base on those meetings the following corrective ac#ions were formulated, which embody the proposed budget: ^ Decrease operational cost, ^ Reorganization of Departments for greater efficiency, • Enhancement of ongoing revenues, ^ One Time Potential Revenue Sources, and • Scheduling of payback of general fund liabilities, if the proposed budget is adopted, the City can reduce the spending above revenues to a level which when coupled with future new revenues sources will assure a healthy financial environment for the City. Recommendation: Staff recommends that the Members of the Lynwood Public Finance Authority review, discuss and provide direction on the proposed draft budget. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON OCTOBER 15, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on f!!e in the Ofhce of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda ifems may call the City Manager at {310) 603- 0220, ext. 200. Procedures for Addressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING .THE COUNCIL 1N THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE SPECIAL MEETING OF THE LYNWOOD PUBLIC f1NANCE AUTHORITY TO BE HELD ON OCTOBER 7, 2002 ' 9:30 A.M. COUNCIL CHAMBERS 11330 B I' RE EiVtL y CITY Oi= LYNWOOU { CITY CLERKS OFFICE QCT C ; 2~it.,. u lis Road, Lynwood, CA 90262 pk Pd ~'e8 i~ I~ W E u~11%C~~l4 r 5, 6 ARTURO REYES ~~~ ~~ , i./ ~. _, PRESIDENT ~~~'~ `~" FERNANDO PEDROZA LOUIS BYRD VICE PRESIDENT MEMBER PAUL H. RICHARDS, li MEMBER RAMON RODRIGUEZ MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd - Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) r 4. PROPOSED f=Y 02-03 BUDGET PLAN Comments: The Budget Process started in early April when staff presented athree-year projection of all funds based upon current expenditure level. The April numbers showed annual expenditures at a higher level than the annual revenues in the General Fund. This results in the reliance on the General Fund reserves to sustain on-going operations. To reverse this trend, the Department Directors scrutinized their departmental operation and ascertained areas to streamline without critically impacting services as well as to continue to meet our obligations. Base on those meetings the following corrective actions were formulated, which embody the proposed budget: ^ Decrease operational cost, ^ Reorganization of Departments for greater efficiency, ^ Enhancement of ongoing revenues, ^ One Time Potential Revenue Sources, and ^ Scheduling of payback of general fund liabilities, If-the proposed budget is adopted, the City can reduce the spending above revenues to a level which when coupled with future new revenues sources will assure a healthy financial environment for. the City. Recommendation: Staff recommends that the Members of the Lynwood Public Finance Authority review, discuss and provide direction on the proposed draft budget. 5. PARKING & TRAFFIC ENFORCEMENT WORKSHOP Comments: In its meeting of October 1, 2002, the members of the Public Finance Authority directed staff to conduct a workshop relative to parking. In this workshop staff has prepared a presentation to cover the following areas: 1. Status of the Parking Meter and Collection Program 2. Status of the Vehicles for Sale Ordinance 3. Establishment of a Parking Authority or Parking District 4. Current staffing level for the in-house parking enforcemen# program The following are topic areas that the members of the Public Finance Authority may wish to cover by staff: 1. Service option 2. Contract services for Los Angeles County Sheriff and its cost 3. In-house option 4. City prosecutorial services 5. Towing options 6. Storage options 7. Review and provide direction on use and acquisition of internal and contractual services The following documents will also be provided at this workshop: 1. Copies of all ordinances and codes relating to traffic, parking and towing 2. Proposals and letters form those who provide this service 3. All reports prepared by the parking division Recommendation: Staff recommends for the members of the Public Finance Authority to receive a presentation from staff and to provide staff with further directions on this matter ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON OCTOBER 15, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other~writfen 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. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603- 0220, ext. 200. Procedures for Addressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. i?-: ,~-GENDA ITEMS ON FILE FOR CONSIDERATION ` AT THE REGULAR MEETING OF C C THE LYNWOOD PUBLIC FINANCE AUTHORITY ciTY of LYr~woor~ CITY CLERKS OFFICE TO BE HELD ON OCTOBER 1, 2002 ~ SEP 2 6 200) ~ 6:00 P.M. COUNCIL CHAMBERS 7~glyt>rv~li~u111;T Si4i5~6 11330 BULLIS ROAD, LYNWOOD, CA 90262 ~~~~~' ~` ARTURO REYES C`_~'~~~~~~-- PRESIDENT ~, ;~\. <; ~,; _ FERNANDO PEDROZA LOUIS BYRD VICE PRESIDENT MEMBER PAUL H. RICHARDS, II RAMON RODRIGUEZ MEMBER MEMBER CHIEF ADMINISTRATIVE OFFICER FINANCE DIRECTOR FAUSTIN GONZALES ALFRETTA EARNEST SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) 4. MINUTES OF PREVIOUS MEETING Regular Meeting, September 3, 2002 Special Meeting, September 4, 2002 Regular Meeting, September 17, 2002 5. PUBLIC WORKS PROJECTS -RUBBERIZED ASPHALT CONCRETE GRANTS Comments: The City of Lynwood finances public works projects and other capital improvements through a variety of sources annually including the general fund and various intergovemmentaf transfers from the Federal and State Government. SB 1346 (Kuehl) authorizes the CIWMB to create a grant program through June 30, 2006 to local agencies including ci#ies, counties, and special districts for funding of public works projects that utilize rubberized asphalt concrete. SB 1346 was approved by Governor Davis on September 17, 2002 and will go into effect on January 1, 2003. Recommendation: Staff respectfully requests that the President and Members of the Lynwood Public Finance Authority receive and file this information. ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD ON OCTOBER 15, 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING SEPTEMBER 3, 2002 The Public Finance Authority of the City of Lynwood met in a Regular Meeting at 11330 Bullis Road on the above date at 6:53 p.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez, and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Interim City Attorney Montgomery, Secretary Hooper, and City Treasurer Pygatt Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4: MINUTES OF PREVIOUS MEETING It was moved by Vice President Pedroza, seconded by Member Byrd'and carried to approve the following minutes. •:• Regular Meeting, August 7, 2002 Special Meeting, August 8, 2002 :• Special Meeting, August 10, 2002 :• Special Meeting, August 19, 2002 Special Meeting, August 20, 2002 Regular Meeting, August 20, 2002 Item #5: PROPOSITION 46 -HOUSING AND EMERGENCY SHELTER TRUST FUND ACT OF 2002 The current attempt to provide additional financial assistance for housing programs was prompted by the three state agencies currently administering such programs forecasting that the- financing of these programs would be committed and nearly depleted by the end of the 2001-2002 fiscal year. Senator Burton drafted and successfully passed through the Legislature, SB1227, the Housing and Emergency Shelter Trust Fund Act of 2002. Essential SB 1227, will appear in the form of Proposition 46 that will place $2.1 Billion in general obligation bonds on the ballot for the November 2002 statewide election, that would be used for various housing programs. The passage of this bond measure provides another mechanism of financial assistance via the state, for local governments to meet state mandated housing goals as well as address housing infrastructure needs facing individual communities. It was moved by Vice President Pedroza, seconded by. Member Rodriguez and carried to receive and file this item. ~ A(3EIVVA ~~ j~ t j =~ ADJOURNMENT Having no further discussion, it was moved by Vice President Pedroza, seconded by Member Byrd and carved to adjourn the meeting at 6:55 p.m. Arturo Reyes, President Andrea L. Hooper, Secretary LYNWOOD PUBLIC FINANCE AUTHORITY SPECIAL MEETING SEPTEMBER 4, 2002 The Public Finance Authority of the City of Lynwood met in a Special Meeting at 11330 Bullis Road on the above date at 9:16 a.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative OfFicer Gonzales, Secretary Hooper and City Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC. ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORAL COMMUNICATIONS Item #4: PROPOSED FY 2002-2003 BUDGET PLAN Assistant City Manager Lorry Hempe reported that City Treasurer Pygatt inquired about the Deputy City Treasurer position. City Treasurer Pygatt questioned the Members regarding the Deputy City Treasurer position she had proposed on her budget. Chief Administrative Officer Gonzales stated that the Deputy City Treasurer position was not included in her budget since the same organizational chart was used from last year. City Treasurer Pygatt explained that she needs a Deputy City Treasurer to assist with her duties. Stated that the Election Code book states that she is required to have an Assistant to perform some of her duties and feels that her rights are being violated by not having a Deputy City Treasurer. Stated that if she had an Assistant there would be no need for the Chiet Administrative Officer or the President to sign any checks when she is not available to perform this job. Stated that there's a lot of reading involved and has to do this at home and also works on her owned computer because she has no staff. Also asked the Members to reconsider her request. Vice President Pedroza questioned City Treasurer Pygatt regarding her current budget. Member Rodriguez inquired as to what would be the duties of a Deputy City Treasurer. City Treasurer Pygatt responded that the Deputy City Treasurer would assist with preparing financial reports for the State and the Members, to keep up with the City's revenues, and any record keeping assignments.. Member Rodriguez asked if City Treasurer gets reports from the Finance Department. Chief Administrative Officer Gonzales reported that Director of Finance Alfretta Earnest staff provides her with assistance as requested. Vice President Pedroza inquired if the Finance Department keeps track of all income revenues that come into the City. Ms. Earnest responded that her staff does keep track of all revenues that come into the City. Member Rodriguez asked if City Treasurer was provided with accounts information. Ms. Earnest stated that #hey only provide what she requests. Vice President Pedroza stated that the City Treasurer is responsible to invest. Chief Administrative Officer Gonzales stated that the City Treasurer has all the support, as needed, and staff is also available to assist her. Member Byrd stated City Treasurer needs a Deputy City Treasurer to keep up with everything relative to accounts and city revenues. President Reyes commented that in the past, recruitments were conducted for a Deputy City Treasurer and questioned why didn't a Deputy City Treasurer get selected. City Treasurer Pygatt read Election Code sections from 1-6, which states that she is responsible to keep up with all, receive monies, deposit and secure funds, disbursements, monies report as well as written reports. Also stated that the Legislative Body has not complied with her request. City Treasurer Pygatt continued by saying that every time she needs assistance adifferent person is assigned to her, and she needs someone that she can #rained to perform her duties. Member Richards stated that City Treasurer needs a Deputy City Treasurer to be responsible to perform the assign duties of the City Treasurer, which would act as her assistant. City Treasurer has been requesting a Deputy City Treasurer for about 11 years and feels that it's about time that she gets one now, since the budget is being discussed. Member Byrd agreed with Member Richards' comments. City Treasurer Pygatt reported that she is responsible to keep up with 23 accounts and feels that she needs an assistant. Vice President Pedroza asked City Treasurer the pay salary for the Deputy City Treasurer. City Treasurer Pygatt responded that it would be $3,500/month. Vice President Pedroza stated that this would require additional money of $70,000 in her budget. Member Richards discussed legal services being over paid to the Deputy City Attorney and stated that he is not aware of that many cases being dealt with. President Reyes stated that he doesn't have a problem with City Treasurer getting an assistant but feels that the Deputy City Treasurer should obtain the proper training to perform the duties. City Treasurer Pygatt stated that at this point, she has no one in mind for the job but will need someone with experience and a background in Accounting, and also interviews would be conducted to select the most qualified person. , President Reyes informed City Treasurer Pygatt that Council would reconsider her request and recommendations will be made. Member Richards int~uired as to what legal services is Deputy City Attorney working on, and what aspect generates one of the invoices. Member Reyes directed Chief Administrative Officer to provide the Members copies of all legal services invoices. Member Richards discussed possible savings in legal services so that money could be used toward the Deputy City Treasurer position. President Reyes stated that he would consult with the Chief Administrative Officer to see if Deputy City Attorney legal services are needed during the Members meetings. Member Byrd stated that in the years he's been in City Council they never needed a second Attorney present, and doesn't know why she's needed in every meeting. President Reyes stated that the Chief Administrative Officer will evaluate the situation and then will make a report to see if Deputy City Attorney Sylva services are needed. Chief Administrative Officer Gonzales explained that all Departments have presented budget presentations to the Members. Staff has since adjusted the estimates and refined the three-year projection. CITY COUNCIL President Reyes discussed the reduction of $198,000 that was made in the Members budget. Assistant City Manager Lorry Hempe explained that the reduction consisted in different areas such as in equipment, operating supplies, professional contract services and one-time expenditures. Member Richards asked about the breakdown of categories that show where the reductions are being made. Stated that it's very difficult to talk about reductions when you can't even see the breakdown. Stated that they need to see a comparison of last year's budget to this year's budget, in order #o make a decision. Chief Administrative Officer Gonzales stated they went through the process of budget presentations two months ago and if the Members desire, they can prepare the budget line items. President Reyes stated that he personally was ready to approve the Members budget. It was moved by President Reyes to reduce the Members budget. Motion died due to lack of a second. Member Richards insisted that he would like to see the budget line items first, before he makes a decision because he might not agreed with the reductions. Vice President Pedroza asked the Chief Administrative Officer that how long would it take to prepare the budget line items. Chief Administrative Officer Gonzales responded that it would take approximately two weeks to prepare the budget line items. President Reyes stated that the City's budget has not balanced for years. Member Richards requested to see documents where cuts are taking place, and s#ated that the Members need every tool that is required to make good decisions. Discussed the possible savings of legal fees and unpredicted expenditures. It was moved by President Reyes, seconded by Member Rodriguez to go with proposed cut in the Members Budget of $188,000. Vice President Pedroza inquired as to why they couldn't see the budget line items. Chief Administrative Officer Gonzales responded that the budget line items would be prepared. ROLL CALL: AYES: MEMBERS RODRIGUEZ, AND REYES NOES: MEMBERS BYRD, PEDROZA, AND RICHARDS ABSTAIN: NONE ABSENT: NONE Motion died. Vice President. Pedroza stated that he would rather wait two weeks to make sure that he makes the right decision in the budget. Member Richards left at 10:42 a.m. The Members continued to discuss budget issues President Reyes commented about the comment made at last night's meeting regarding full agendas not being available to the public, and stated that full agendas are available at the front desk of the City Manager's Office. Vice President Pedroza stated that residents should not be given the runaround to obtain full agendas. Member Rodriguez stated the Members has met with Chief Administrative Officer on budget issues and feels that is an embarrassment to keep rescheduling the budget. Member Richards returned at 10:50 a.m. Member Richards inquired about the proposed cuts and budget line items, and stated that the new Members have a right to see documents where proposed cuts are being made. Stated that they always had prepared budget line items to review. Mayor Reyes stated that a budget line item is prepared after recommendations are made Member Richards questioned why this year the Members wasn't provided with proposed budget line items. Chief Administrative. Officer responded to his question. After further discussion, it was moved by Member Rodriguez to continue the budget meeting until the proposed budget information has been prepared and bring it back in two weeks for the Members review, seconded by Vice President Pedroza. ROLL CALL: AYES: MEMBERS BYRD, PEDROZA, RICHARDS, RODRIGUEZ, NOES: NONE ABSTAIN: NONE ABSENT: MEMBER REYES Motion passed. ADJOURNMENT Having no further discussion, it was moved by Vice President Pedroza, seconded by Member Byrd and carried to adjourn the meeting at 11:05 a.m. Arturo Reyes, President Andrea L. Hooper, Secretary LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING SEPTEMBER 17, 2002 The Public Finance Authority of the City of Lynwood met in a Regular Meeting at 11330 Bullis Road on the above date at 7:31 p.m. President Reyes presiding. Members Byrd, Pedroza, Richards, Rodriguez, and Reyes answered the joint roll call for all agencies. Also present were Chief Administrative Officer Gonzales, Interim City Attorney Montgomery, Secretary Hooper, and City Treasurer Pygatt Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4: MINUTES OF PREVIOUS MEETING None Item #5: UPDATE ON THE STATE BUDGET On September 5, 2002, Governor Davis signed the State budget. The League of California Cities reports that the budget appropriates a total of $98.9 billion, $2.4 billion less then the $101.3 billion appropriated in the 2001-02 fiscal year. Total Genera] Fund contributions fell to $76.7 billion, down from $76.9 billion in last year's budget. The League further reports that although certain budget items impacting local governments remained intact the counties will experience $1 billion cuts and program costs shifts, which would have a direct impact on city residents. Furthermore, a $75 million one-year ERAF shift of property taxes from redevelopment agencies to the State will also impact redevelopment agencies. It was moved by Member Rodriguez, seconded by Member Pedroza and carried to receive and file this item. Member Richards questioned the status of the parking meters. Assistant City Manager Lorry Hempe will provide the information to Councilman Richards. Joe Wang, Director of Environmental Services stated the Supervisor reported last week that they collected $1,400 in just one zone. Member Richards discussed the possibility of monitoring citations and monies collected from citations and to keep a tracking system of revenue sources. Also addressed issues of enforcing citations, towing vehicles, impounding of vehicles, and the collection of coins. Stated that he would like to obtain answers to these issues at the next meeting. Mr. Wang informed Council that originally Phase I was approved which includes the areas of Long Beach Boulevazd, pazking areas of St. Francis and around Lynwood Park, and the intend is to report back to Council the success of this program. Vice President Pedroza inquired that there is no public parking on State Street, and is it possible to install pazking meters to allow parking on this street. President Reyes stated that L.U.S.D. employees continue to park at Lynwood City Hall, which limits the parking availability to Lynwood residents. ADJOURNMENT Having no further discussion, it was moved by Vice President Pedroza, seconded by Member Byrd and carried to adjourn the meeting at 7:37 p.m. Arturo Reyes, President Andrea L. Hooper, Secretary MEMORANDUM DATE: October 1, 2002 TO: HONORABLE PRESIDENT AND MEMBERS OF THE LYNWOOD PUBLIC FINANCE AUTHORITY FROM: Faustin Gonzales, Chief Administrative Officer BY: Autra C. Adams, Program Development Coordinator SUBJECT: Public Works Projects -Rubberized Asphalt Concrete Grants PURPOSE: To have the President & Members of the Lynwood Public Finance Authority receive and file this item. BACKGROUND: The City of Lynwood finances public works projects and other capital improvements through a variety of sources annually including the general fund and various intergovernmental transfers from the Federal and State Government. ANALYSIS: The primary material that is utilized in the construction of public works projects is conventional concrete. The California Integrated Waste Management Board (CIWMB) encourages the usage of rubberized asphalt concrete for these projects because #his type of concrete includes recyclable materials. In addition, CIWMB asserts that the usage of rubberized asphalt concrete leads to decreased maintenance costs and traffic noise in the long run. The drawback is that the rubberized asphalt concrete has higher up front costs than conventional concrete. SB 1346 (Kuehl) This legislation authorizes the CIWMB to create a grant program through June 30, 2006 to local agencies including cities, counties, and special districts for funding of public works projects that utilize rubberized asphalt concrete. The specific program authorized by SB 1346 is as follows: - Grants are limited to projects that are projected to generate between 2,500 and 20,000 tons of rubberized asphalt concrete during the life of the project and that uses 20 pounds or more of crumb rubber per ton of rubberized asphalt concrete; - The amount of a grant that qualifies shall be equal to $2.50 for each ton of rubberized asphalt projected to be generated by the project; and - The total amount of a grant that qualifies is between $6,250 and $50,000. SB 1346 was approved by Governor Davis on September 17, 2002 and will go into effect on January 1, 2003. RECOMMENDATION: Staff respectfully requests that the President & Members of the Lynwood Public Finance Authority receive and file this information. r---- +~ r AGENllA ~Er•: ATTACHMENT 1 I~ --- - -- - -- ...b.. . .. a i BILL NUMBER: SB 134b CHAPTERED BILL TEXT CHAPTER 671 FILED WITH SECRETARY OF STATE SEPTEMBER 18, 2002 APPROVED BY GOVERNOR SEPTEMBER 17, 2002 PASSED THE SENATE AUGUST 29, 2002 PASSED THE ASSEMBLY AUGUST 25, 2002 AMENDED IN ASSEMBLY AUGUST 23, 2002 AMENDED IN SENATE MAY 23, 2002 AMENDED IN SENATE MAY 8, 2002 AMENDED IN SENATE APRIL 9, 2002 INTRODUCED HY Senator Kuehl (Coauthors: Senators McPherson, Romero, and Torlakson) (Coauthors: Assembly Members Aroner, Koretz, Lowenthal, Pavley, Simitian, and Washington) FEBRUARY 4, 2002 An act to amend Section 42885.5 of, and to add and repeal-Section 42872.5 of, the Public Resources Code, relating to solid waste. LEGISLATIVE COUNSEL'S DIGEST SB 1346, Kuehl. Solid waste: tire recycling program: rubberized asphalt concrete: public works projects. The existing California Tire Recycling Act requires the California Integrated Waste Management Board to administer a tire recycling program that promotes and develops alternatives to the landfill disposal of used whole tires. The board is authorized to implement various grant, subsidy, and loan programs to encourage the recycling of waste tires. The board is required to adopt and biennially update a 5-year plan to establish goals and priorities for the waste fire program, including specified program elements. The budget for implementation of the act and the funding of the tire recycling program are based upon the 5-year plan. This bill would authorize the board to implement a program, until June 30, 2006, to award grants to cities, counties, districts, and other local governmental agencies for the funding of public works projects that use rubberized asphalt concrete. The grants would be funded by an appropriation in the annual Budget Act from the California Tire Recycling Management Fund. The bill would require the board, in cooperation with its Rubberized Asphalt Concrete Technology Centers, to create, annually update, and post on each center's Internet Web site a data base of public works projects that include rubberized asphalt concrete that were completed by local agencies. The bill would require the Department of Transportation to post on its public Internet Web site data and descriptions regarding state public works projects .using rubberized asphalt concrete. The board would be required to post on its public Internet Web site links to connect to all of this information. The bill would require the board to include the rubberized asphalt concrete technology grant program as a program element in the S-year plan. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 42872.5 is added to the Public Resources Code, to read: 42872.5. (a) In addition to the purposes listed in Section 42872, the'tire recycling program may include the awarding of grants to cities, counties, districts, and other local governmental agencies for the funding of public: works projects that use rubberized asphalt concrete. In addition to the factors listed in Sections 42874 and 42875, a grant for a public works project that uses rubberized asphalt concrete shall be awarded subject to all of the following: (1) A grant shall be limited to a project that is both projected to generate between 2,500 and 20,000 tons of rubberized asphalt concrete during the life of the project and that uses 20 pounds or more of crumb rubber per ton of rubberized asphalt concrete. (2) The amount of a grant that qualifies under paragraph (1) shall be equal to two dollars and fifty cents ($2.50) for each ton of rubberized asphalt concrete projected to be generated by the project. http://www.ieginfo.ca.gov/pub/bilUsen/sb_1301-1350/sb_1346 bill_20020918_chaptered.html 9/26/02 ..b.... v~ ... (3) The total amount of a grant that qualifies under paragraph (1) shall be. six thousand two hundred fifty dollars ($6,250) or more, but not more than fifty thousand dollars ($50,000), as determined pursuant to paragraph (2). (b) Grants made under this section shall be funded by an appropriation in the annual Budget Act from the California Tire Recycling Management Fund established pursuant to Section 42885. To the extent possible, depending on the number of qualified applications and whether there is a sufficient supply of crumb rubber, funds allocated pursuant to this section shall be equal to 16 percent of the funds budgeted pursuant to this chapter for market development and new technology activities for used tires and waste tires. (c) In order to provide outreach to local agencies regarding the use of rubberized asphalt concrete in public works projects, all of the following shall occur: (1) The board, in cooperation with its Rubberized Asphalt Concrete Technology Centers, shall create, annually update, and post on each center's Internet Web site a data base of public works projects that include rubberized asphalt concrete that were completed by local agencies. {2) The Department of Transportation shall post on its public Internet Web site data and descriptions regarding state public works projects using rubberized asphalt concrete. (3) The board shall post on its public Internet Web site a link to connect to the data base created under paragraph (1) and the data and descriptions provided under paragraph (2). (d) This section shall become inoperative on June 30, 2006, and, as of January 1, 2007, is repealed, unless a later enacted statute that is enacted before January 1, 2007, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 2. Section 42885.5 of the Public Resources Code is amended to read: 42885.5. (a) The board shall adopt a five-year plan, which shall be updated every two years, to establish goals and priorities for the waste fire program and each program element. (b) On or before July 1, 2001, and every two years thereafter, the board shall submit the adopted five-year plan to the appropriate policy and fiscal committees of the Legislature. The board shall include, in the plan, programmatic and fiscal issues including, but not limited to, the hierarchy used by the board to maximize productive uses of waste and used tires and the performance objectives and measurement criteria used by the board to evaluate the success of its waste and used fire recycling program. Additionally, the plan shall describe each program element's effectiveness, based upon performance measures developed by the board, including, but not limited to, the following: (1) Enforcement and regulations relating to the storage of waste and used tires. (2) Cleanup, abatement, or other remedial action related to waste fire stockpiles throughout the state. (3) Research directed at promoting and developing alternatives to the landfill disposal of waste tires. (4} Market development and new technology activities for used tires and waste tires. (5) The waste and used fire hauler program and manifest system. (6) Until June 30, 2006, the grant program authorized under Section 42872.5 to encourage the use of rubberized asphalt concrete technology in public works projects. (c) The board shall base the budget for the California Tire Recycling Act and program funding on the plan. http://www.leginfo.ca.gov/pub/bilUsen/sb_1301-1350/sb_1346 bill_20020918_chaptered.html 9/26/02 -Y This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred fo on the Agenda are on frle in the Offrce of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603-0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING ,THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. ~~( AGENDA ITEMS ON FILE FOR CONSIDERATION ~ I ~ AT THE REGULAR MEETING OF CRY OF LYNWOOU THE LYNWOOD INFORMATION INC. CITY CLERKS OFFICE TO BE HELD ON NOVEMBER 5, 2002 6:00 P.M QCT j ? 2002 COUNCIL CHAMBERS 7 St°'t~Wiu~1~~1415 6 11330 BULLIS ROAD, LYNWOOD, CA 90262 C~~~~~ ~ ~ ARTURO REYES ' ~ CHAIRMAN FERNANDPEDROZA L DIIRECTOR VICE-CHA MAN PAUL H. RICHARDS, II RAMON RODRIGUEZ DIRECTOR DIRECTOR CITY MANAGER INTERIM CITY ATTORNEY FAUSTIN GONZALES MICHAEL B. MONTGOMERY CITY CLERK CITY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES CALL TO ORDER 2. ROLL CALL OF DIRECTORS Fernando Pedroza Louis Byrd Paul H. Richards, II Ramon Rodriguez Arturo Reyes CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE COUNCIL, BUT IT IS ALL RIGHT FOR COUNCIL TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.} PUBLIC HEARING 4. FY 2002-03 ANNUAL OPERATING BUDGET Comments: The purpose of this i#em is to have the Agency Board Members: 1. Conduct a Public Nearing on the FY 2002-03 Proposed Annual Operating Budget 2. Adopt resolution approving the Lynwood Information, Inc. Annual Operating Budget for FY 2002-03. Recommendation: Staff respectfully recommends that the Agency Board Members adopt resolution entitled: "A RESOLUTION OF THE LYNWOOD INFORMATION ,INC. OF THE CITY OF LYNWOOD ADOPTING THE ANNUAL OPERATING BUDGET FOR FISCAL YEAR 2002-03. CONSENT CALENDAR 5. MINUTES OF PREVIOUS MEETING: Special Meeting, October 1,2002 Regular Meeting, October 1,2002 Special Meeting, October 7,2002 Special Meeting, October 9,2002 6. FEDERAL COMMUNICATIONS COMMISSION'S FORUM ON PUBLIC RIGHTS-OF-WAY ISSUES Comments: To update the Board of Directors of Lynwood Information Incorporated concerning the recent forum held by the Federal Communications Commission to discuss the management of public rights-of--way. Recommendation: Staff respectfully requests that the Board of Directors of Lynwood Information Incorporated receive and file this item. 7. TREASURER'S QUARTERLY INVESTMENT REPORT Comments: The purpose of this item is to have the Lynwood Information Inc. review the Treasurer's Quarterly Investment Report as required by recently enacted State statues. Recommendation: The city Treasurer respectfully recommends that the Lynwood Information Inc. receive and file the attached quarterly Investment Report for the quarter ending June 30, 2002. 8. APPROVAL OF THE WARRANT REGISTER Comments: City of Lynwood warrant register dated November 5, 2002 for FY 2002- 2003. Recommendation: Staff recommends for the Lynwood Information Inc. members to approve the warrant register. ADJOURNMENT THE NEXT REGULAR MEETING WILL BE HELD ON NOVEMBER 19, 2002 AT 6:00 P.M. IN COUNCIL CHAMBER ROOM, CITY-HALL, CITY OF LYNWOOD, CALIFORNIA. DATE: November 5, 2002 TO: The Honorable Chairman Members of the Bo FROM: Faustin Gonzales, City Manager SUBJECT: F.Y. 2002-03 Annual Operating Budget PURPOSE: The purpose of this item is to have the Agency Board Members: 1) Conduct a Public Hearing on the F.Y. 2002-03 Proposed Annual Operating Budget. 2) Adopt attached resolutiomapproving the Lynwood Information, Inc. Annual Operating Budget for F.Y. 2002-03. BACKGROUND: Lynwood Information, Ina (LII) is anon-profit organization formed in April 1981 for the purpose of educating and providing public access media to residents relative to activities/events occurring in the City of Lynwood. The Operating Budget is prepared annually to account for: • The City's contribution to LII for media services. • Media service expenses (i.e. monthly newsletter, cable programming, public relations, etc.). A copy of the F.Y. 2002-03 Budget has been made available for public review in the City Clerk's Office. Several budget workshops were held to discuss the Agency's current year goals and objectives, allocate resources and proactively identify and address key promotional issues relative to Lynwood Information, Inc. ANALYSIS: Lynwood Information, Inc. Annual Operating Budget represents the sources and uses of funds relating to public access media. The agency's primary revenue resource is a contribution of $1'70,500 from the City of Lynwood. The current year's expenditure budget of $231,350 includes allocations for the newsletter (Lynwood N Perspective), development of a City brochure, and the taping of various community programs/events. RECOMMENDATION: Staff respectfully recommends that the Agency Chairman and Board Members adopt the attached resolution entitled: "A RESOLUTION OF THE LYNWOOD INFORMATION, [NC. OF THE CITY OF LYNWOOD ADOPTING THE ANNUAL OPERATING BUDGET FOR FISCAL YEAR 2002-03". ~~r-,T , f L-lLr.JL4 s~2:. Ll.:_~`e3:: ___~ RESOLUTION NO. A RESOLUTION OF THE LYNWOOD INFORMATION, INC. OF THE CITY OF LYNWOOD ADOPTING THE ANNUAL OPERATING BUDGET FOR FISCAL YEAR 2002-03 WHEREAS, The City Manager has submitted a Proposed Annual Operating Budget for the Fiscal Year 2002-03; and WHEREAS, the Board of Directors have reviewed the Proposed Budget; and WHEREAS, the Proposed Annual Operating Budget accounts for resources and allocations relative to media services; and - WHEREAS, the Proposed Budget was made available for public review in the City Clerk's Office. NOW THEREFORE, the Board of Directors of Lynwood Information Incorporated, do hereby find, proclaim, order and resolve as follows: Section 1. The Annual Operating Budget for Fiscal Year 2002-03 is hereby approved. Section 2. The City Manager or his designee is hereby authorized to approve any transfer between accounts, provided that: 1. They are within the same general group of accounts. 2. They do not exceed $10,000 per transfer. Section 3. This resolution shall go into effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED this 5th day of November 2002. ARTURO REYES, CHAIRMAN Lynwood Information, Inc. ATTEST: Andrea L. Hooper Secretary APPROVED AS TO FORM: APPROVED AS TO CONTENT: City Attorney Faustin Gonzales, City Manager LYNWOOD INFORMATION, INC. REGULAR MEETING OCTOBER 1, 2002 The Lynwood Information, Inc. of the City of Lynwood met in a Regular Meeting in the Council Chambers, 11330 Bullis Road on the above date at 7:15 a.m. Chairman Reyes presiding. Directors Byrd, Pedroza, Richazds, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were City Manager Gonzales, City Attorney Montgomery, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS Item #4: MINUTES OF PREVIOUS MEETINGS It was moved by Director Rodriguez, seconded by Director Richards and carried to approve the following minutes: Regulaz Meeting, September 3, 2002 Special Meeting, September 4, 2002 Regular Meeting, September 17, 2002 Item #5: EXPANSION OF STATE OF CALIFORNIA E-GOVERNMENT SERVICES The importance of the role that technology plays in our society is rapidly increasing and the State of California is currently one of the most advanced states in the country in regards to providing E-Government services to constituents. The state provides a myriad of information on vazious services. With one of the most frequently accessed websites being the Department of Motor Vehicles, with nearly 2 Million visits a month, and the increasing Latino population in the state, on September 18, 2002 Governor Gray Davis announced the availability of the Department of Motor Vehicles website in Spanish. It was moved by Director Rodriguez, seconded by Vice Chairman Pedroza and carried to receive and file this information. Item #6: APPROVAL OF THE WARRANT REGISTER It was moved by Director Byrd, seconded by Director Richards to adopt Resolutions: RESOLUTION NO. 2002.022 ENTITLED: A RESOLUTION OF THE LYNWOOD INFORMATION INC. LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND ORDERING WARRANTS THEREFORE. ~~~ ____~_ y _.~,,..~..__Y. ,_,.._ ROLL CALL: AYES: DIRECTOR BYRD, PEDROZA, RICHARDS, RODRIGUEZ, REYES NOES: NONE ABSTAIN: NONE ABSENT: NONE ADJOURNMENT It was moved by Director Rodriguez, seconded by Vice Chairman Pedroza and carried to adjourn the Regular Council Meeting at 7:20 p.m. Arturo Reyes, Chairman Andrea L. Hooper, Secretary LYNWOOD INFORMATION, INC. SPECIAL MEETING OCTOBER 7, 20x2 The Lynwood Information, Inc. of the City of Lynwood met in a Special Meeting in the Council Chambers, 11330 Bullis Road on the above date at 9:40 a.m. Chairman Reyes presiding. Directors Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were City Manager Gonzales, City Attorney Montgomery, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda [terns Only) NONE PUBLIC ORALS COMMUNICATIONS Item #4: PROPOSED FY 2002-2003 BUDGET PLAN Director Richards -Moved to have a Special meeting for the Proposed FY 2002-2003 Budget Plan for October 9, 2002 at 9:00 a.m. It was second by Director Byrd. ROLL CALL: AYES: DIRECTOR BYRD, PEDROZA, RICHARDS NOES: DIRECTOR RODRIGUEZ, REYES ABSTAIN: NONE ABSENT: NONE ADJOURNMENT It was moved by Director Rodriguez, seconded by Director Byrd and carried to adyourn the Special Council Meeting at 12:20 p.m. Arturo Reyes, Chairman Andrea L. Hooper, Secretary LYNWOOD INFORMATION, INC. SPECIAL MEETING OCTOBER 9, 2002 The Lynwood Information, Inc. of the City of Lynwood met in a Special Meeting in the Council Chambers, 11330 Bullis Road on the above date at 9:15 a.m. Chairman Reyes presiding. Directors Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present was Secretary Hooper. City Manager Gonzales was absent. City Attorney Montgomery was absent. City Treasurer Pygatt was absent. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE For the record these minutes are verbatim from the recorded tape Director Richards -Stated to the Chairman that he had called yesterday and advised the City Manager that he has a pending emergency today and it has been our practice when a Member has an emergency or over this passed year if there has been any reason the body is in fit to reschedule any meeting, for example in our last budget sessions when it was known that a Member was not going to be available we simply rescheduled meetings and we have even had occasions were one or two Members have not showed up for a meeting. You knew well in advance that I had a pending emergency this morning and yet you still saw fit to direct staff to prepare for this morning meeting and I see that you have the Deputy City Attorney, Assistant City Manager, Head Department and Staff and I am really disturb by your action. Chairman Reyes -Stated to Director Richards that if he was not going to show up for this meeting then he will be excused, the Directors voted to have this Special Meeting stated he did not vote to have ihis Special Meeting, you should have advised your Members who voted with you not to show up then there would have not been a meeting. Director Richards - Stated that there is no need to play any games, because if there is a desire to have a full body and to have all Members present which we have done in the past then I would not move forward with this charade, so any way I have said what I had to say now I ask to be excused at this time, but to me it is just a high of classlessness to move forward with this. Chairman Reyes -Stated to Director Richards that he made the motion to hold this meeting and if he had told his body Members who voted with him that he was not going to be able to come, then there would have been no meeting. Director Richards -Stated to the Chairman that if this is what it is about the fact that it was a three to two vote it is only a commend courtesy or dignity to indicate to provide the opportunity to reschedule the meeting at a later time. Director Richards -Also stated to the Chairman that he has canceled meetings and no one has showed up but me and Director Byrd and the meetings have not gone forward no staff has been present because every one knew except us and yet you have rescheduled when you knew we had to move forward but this morning when you are fully aware that I have a pending emergency my mother is in surgery you did not have the commend courtesy and respect to allow this meeting to continue, that is wrong and I do not care what you say I am really angered because this is a personal attack and I do not appreciate it. Chairman Reyes -Stated to Director Richards that this is not a personal attack, you guys made a decision and I respect it. Director Richards -Moved to have a Special Meeting on Thursday October 10,2002 at 9:00 a.m. and to include all items that were Listed on Monday's Agenda. Director Byrd -Second the motion. Director Rodriguez -Moved to make an amended motion to have the Special Meeting on Thursday October 10, 2002 at 6:00 p.m. Chairman Reyes -Second the motion. Amended Motion Failed: ROLL CALL: AYES: DIRECTOR RODRIGUEZ, REYES NOES: DIRECTOR BYRD, PEDROZA, RICHARDS ABSTAIN: NONE ABSENT: NONE Main Motion Approved: ROLL CALL: AYES: DIRECTOR BYRD, PEDROZA, RICHARDS NOES: DIRECTOR RODRIGUEZ, REYES ABSTAIN: NONE ABSENT: NONE ADJOURNMENT It was moved by Director Byrd, seconded by Director Rodriguez and carried to adjourn the Special Council Meeting at 9:35 a.m. Arturo Reyes, Chairman Andrea L. Hooper, Secretary MEMORANDUM DATE: November 5, 2002 TO: HONORABLE CHAIRMAN AND DIRECTORS OF LYNWOOD INFORMATION INCORPORATED /' FROM: Faustin Gonzales, City Manager /,~~ SUBJECT: Federal Communications Commission's Forum On Public Rights-of-Way Issues PURPOSE: To have the Board of Directors of the Lynwood Information Incorporated receive and file this item. BACKGROUND: The Federal Communications Commission recently held a forum to discuss issues relative to public rights-of-way management, consisting of panelists from the telecommunications industry and state and focal government. ANALYSIS: The forum included the discussion of jurisdictional conflicts between local and federal authori#y, reasonable compensation for use of rights-of-way, and policy approaches for managing rights-of-way The forum debate is highlighted as follows: • Universal access to broadband services is in the best interests of local government constituents, business and residen#ial. • Local governments can not support a national policy which commits to broadband "at any cost" which could possibly mean taxpayers subsidizing private industry. • Section 253 of the Telecommunications Act of 1996, preserves the rights of local government to manage their own rights-of-way and charge appropriate and reasonable compensa#ion for the access. By enacting this section, Congress achieved a balance to the deployment of rights-of-way services. • The telecommunications industry is urging the Federal Communications Commission to set national guidelines for rules and pricing governing local rights-of-way use; however, local governments rebut that based on current law, the Federal Communications Commission has no jurisdiction over rights-of-way management. • The national consensus is that rights-of-way disputes must be resolved before broadband can advance to the projections made by the telecommunications industry. ~'-' --- ' A4ENDA TT~• RECOMMENDATION: Staff respectfully requests that the Board of Directors of Lynwood Information Incorporated receive and file this item. ATTACHMENT FCC Nolds Forum on Public Rights-of-Way Issues ~~~ Last week the Federal Com- munications Commission (FCC) held a forum on issues relating to public rightsvf--way (ROW) management The all- day forum rnoaisted of three panels of representatives from the industry and state and local governments. Issues that were addressed by the panelists included juris- dictional canllids between local and federal authority, fair end reasonable compensation for use of ROW, and policy approaches for managing ROW. Mayor Ken Fellman, Arva- da, Colo., represented the National League of Cities. at the forum. Fellman stressed a number of strong messages to the com- misaion, Congress, state Icgis- latures and state regulators. The messages include: • Local government offi- cials want, need and promote the universal availability of broadband services. Universal access to broadband services is in the best interests of our rnn- stituents, both business and aeidmtial. • Because state and local elected officials have a fiducia- ry responsibility Lo their citi- zens - the, taxpayers - to manage all public property for its greatest potential utiliza- tion and value, we cannot sup- port anational policy of blind loyalty and commitment to broadband "at any cost" Such an unbalanced approach of unfettered broadband deploy- ment results in taxpayers at the Local level aubsiduing pri- vate industry. • Congress achieved a bal- anced approach to the deploy- ment of such services when it enacted Section 253 of the Telecommunications Act of 1996. Section 253 preserves the rights of local government W manage their own rightsoC- way sad chazge just and rea- sonable compensation for such access. Mayor Fellman, who is also chair of the FCC's Local and State Advisory Committee, closed his remarks by further stressing thaC "local govern- ment is committed !o examin- ing how ii might streamline Lhe rights-of-way process so long as such streamlining does not prejudice local government decision-making.' Both sides of the debate remained deeply divided dur- ing discussions, disaA icing nn whe±her the FCC eveh has a role in the debau:. The telecommunications industry made clear that it wants the FCC to set national "Local government is committed to examining how it might streamline the rights-of--way process so long as such streamlining does not prejudice local government decision-making." guidelines for rules and pricing governing local "rights of way" use, claiming that problems are slowing the deployment of high-speed Internet cervices. Local governments argued that current law denies the FCC jurisdiction over tighbof--way management, and that the industry is merely trying to win a lobbying battle at the FCC that it lost in Congress when the 1996 Telecommu¢i- catioas Act was written. fill the FCC needs to know: It is not your job," said Don Knight, Dallas assistant city attorney. He cited an Oct. 81et- ter Crum Rep. Bart Sfiipak, (D- MichJ, , larifying Congression- al intern on the issue and tilling the FCC not to preempt hwxl authnnig~ over right.-of- way management. StupaF authored the amendment M the 199fi net t.bat affirmed state and la:aljw~iadichun "There is a national cnneen- sus Lhat rights-of-wa~• disputez must be resolved," said Chris Melcher, Qwest Communica- tions corporate counsel, "because the industry and the economy are desperate to see (broadband)advance.° City officials agree that there Gave been problems with local rules, but they said difli- cuities arise in only a small amount of rases. Blaming the telecom indus- tr}~s demise on local govern- ments is "like suggesting that. with enough duct tape in the right places, you could have prevented the Tita nu: from sinking," Knight said. The fees that cities charge companies for rights-of-way access also ur in dispute. SRC Communications maintains that the only acceptable c, - pensation is Ferv directly eclat ed to actual and incrunental costa fur managing the righte- nf--way and ibr ropainng dano age door during installation of infr strurture, .,aid Sand-: Sakanlutu, a alaL:mL ~ el":d counsel at S$C. -MOyOf 1(tll F2~'Iga, AfWdO, ~0+~0. Nees based on percentage in revenue, in-kind compensaticn or the mazket value of the pu6•- lic land should be prohibited„ she said. Knight argued that; _ telecom companies always have paid a percentage of gross revenue to use the rights-nt- way. He also noted that such a fee. structure, fasters competition because startup Arms with lower revenue pay less than established firms. Representing the Bush AdminisLrxtion.Noncy J. Victo- ry adminisl.ratnr of the NnLion- al Telecommunications and Information Administration i NT1A1 said, "Nn issue is more fiunlmnrntxlly important to the deployment of broadband o thou right.-o(-way.' r'`We have x long way to gu buf rr• uchirving broad baud's pntenti:d: ,urJ R01V plays an important role in our progres \'iunn~ said Shr soled I:hat. see page i I, tnl. [" October 2 i, 2002 i i i Righh-of-Way, (rompagea NTIA had focused considerably on ROW issues over the last year. She highlight- ed the progress of the federal ROW working group, which is headed by NTIA. NLC has been invited to join the working group. According to Victory, the mission of the working group is to develop adminis- trative processes to improve the way the federal government manages ROW issues in order to become a model for other levels of government. The group has focused on improving four areas: (1) the collection of informa- tion, (2) timely processing of applications and addressing appeals, (3) finding rea- sonable approaches For collecting fees, and (4) remediation and maintenance. The group will issue a report on its find- ings later. Victory said she had a number of ini- tial impressions from that work, first of which was that "there are legitimate arguments" on both sides of the issue and "the tenor of the relationship between rights-of--way managers and the industry needs to change." On one side, industries argue that restrictions and fees imposed by federal, state and local land managers on rights- of-way or tower sites might be inhibiting or at least delaying broadband construc- tion. On the other side, officials who are stewards of public property must ensure that rights-of-way are used appropiiate- l y. "Federal, state and local officials sometimes view broadband providers as trespassers who should be kept out, rather than customers who should be invited in," Victory said. ".4 more respon- sive, customer-oriented approach to "Amore responsive, customer-oriented approach to rights-of--way management is essential to removing barriers to broadband deployment, but just as storekeepers don't permit inappropriate behavior in their stores, government officials must be allowed to place reasonable limits. on broadband providers' activities." - Nanry J. Y~lay, admi~slrabr of the National Telecommunicafiatsond Infomwlan Administration rights-of-way management is essential to removing barriers to broadband deployment, but just as storekeepers don't permit inappropriate behavior N their stores, government officials must be allowed to place reasonable limits on broadband providers' activities." Victory later said NTIA was seeking more cemmunities as examples for case studies on best practices. °Rights-of--way challenges have been with us forever," said FCC Chairman Michael K. Powell in opening remarks. He said it was important to protect the history of ROW, while facilitating the advancement of technology. Powell described last week's forum as part of a continuing dialogue on ROW issues. Powell also said he wanted to focus on solutions. Noting that state and local govern- ments were a "vital part" of the solu- tions, he said it was necessary to `strike a balance" between state and local inter- ests and the responsibility of the federal government to facilitate the spread of advanced communications. Commissioner Kathleen Q. Abernathy said it was necessary °to obtain a clear scope" of federal authority over ROW. She expressed interest in hearing about ways to speed-the processing of ROW applications. "This is an old problem wrapped in new technologies," said Commissioner Michael J. Copps. He stressed that state and local governments played a °historic, legitimate and important role' in ROW issues. Because broadband deploymenf is integral to the rebound of the telecom industry, `any impediments to this must 6e addressed and solved," he said. "'Phe availability of advanced telecom- munications is critical 1q the ecomm~y,' said Commissioner Kevin J. Martin. "All governments should do what they can Lc not impede the deployment of broad- band." He added he would like Lo see a set of"best practices" developed from the ideas presented during the forum. • DATE: November 5, 2002 TO: THE HONORABLE CHAIRMAN AND DIRECTORS OF THE LYNWOOD INFORMATION INC. //;.~ FROM: Iris Pygatt, City Treasurer f; SUBJECT: TREASURER'S QUARTERLY INVESTMENT REPORT PURPOSE: The purpose of this item is to have Lynwood Information Inc. review the Treasurer's Quarterly Investment Report as required by recently enacted State Statues. BACKGROUND: to response to the crisis caused by the Orange County investment pool, the State Legislature in 1995 enacted SB564 and S6866. These laws were enacted as State Statutes to impose certain mandates regarding investment with public funds. The statutes have imposed the following mandates: 1. Annual adoption of an Investment Policy that incorporates changes mandated by the State. 2. Quarterly Investment Reports presented to the Legislative Body or Board Members. 3. Restriction on the use of certain investment instruments. The attached Treasurer's Report have been prepared to provide the following information: 1. Types of investments (including principal, market value rates, and maturity dates). 2. List of various bank accounts with banking institutions. 3. Statement informing each Agency (City, LRA, LPFA and LII) that is expected to have sufficient liquid funds to meet its pooled expenditure requirements for the next six (6) months. 4. Statement informing the Lynwood Information Inc. that the investment portfolio conforms with the adopted investment policy. RECOMMENDATION: The City Treasurer respectfully recommends that the Lynwood Information Inc. receive and file the attached quarterly Investment Report for the quarter ending June 30, 2002. ~ Ai}ENTl)A 1'17ti. '"~ // TREASURER' S QUARTERLY 1~~TVE S TMENT REPORT JUNE 30, 2002 CITY OF LYNWOOD PORTFOLIO MASTER SUMMARY JUNE 30, 2002 AVERAGE BOOK PERCENTAGE (%) .DAYS TO INVESTMENTS VALUE PORTFOLIO MATURITY --- YTM --- 360 365 EQUIVALENT MANAGED POOL INVESTMENT $ 16,872,563.66 Certificate of Deposit $ 3,882,965.67 81.29 1 1 1 18.71 N/A N/A N/A TOTAL INVESTMENTS AND AVERAGES 20,755,529.33 100% CASH Passbook/Checking - No Yield Totals (not included in yield calculations) TOTAL INVESTMENTS 20,755,528.33 .`~', , I certify that this report accurately reflects all pooled investment policy statements IRIS PYGATT adopted by the City Council on August 15, 1995. A copy of this policy is available at the office of the City Clerk. The CITY TREASURER Investment Program herein shown provides sufficient cash flow liquidy to meet 3 months estimated expenditures. The pricing of the securities are done by Union Bank of California, US Bank, and Interactive Data Services. CITY OF LYNWOOD INVESTMENT PORTFOLIO DETAILS SUMMARY JUNE 30, 2001 INVESTMENT BOOK FACE MARKET STATED --- YTM --- MATURITY DAYS ISSUER VALUE VALUE VALUE RATE 350 365 DATE TO MAT. MANAGE POOL INVESTMENTS LAIF GEN'L CITY $15,317,343.70 $15,317,343.70 $15,317,343.70 2.96% 1 1 1 LAIF LRA $1,436,145.57 $1,436,145.57 $1,436,145.57 2.96% 1 1 1 U.S. HIGHMARK $119,074.39 $119,074.39 $119,074.39 1.71% 1 1 1 TOTAL $16,872,563.66 E16,872,563.66 $18,872,563.66 Certificate of Deposit US BANK Certificate of Deposit 3,877,926.05 3,877,926.05 3,877,926.05 5,039.62 TOTAL 3,877,926.05 3,882,965.67 CITY OF LYNWOOD RECEIVED INTEREST PAYMENT BY ISSUER JUNE 30, 2002 CURRENT STATED DATE AMOUNT INVESTMENT ISSUER BALANCE RATE RECD RECD LAI F-CITY $15, 317, 343.70 2.96% 1 /15/2002 $93, 011.14 LAIF - LRA $1,436,145.57 2.96°~ 1/15/2002 $5,466.67 U.S. HIGHMARK $119,074.39 1.71% 3/1/2002 $455.47 TOTAL $16,872,563.66 $98,933.28 CITY OF LYNWOOD RECEIVED INTEREST PAYMENT BY ISSUER JUNE 30, 2002 INVESTMENT CURRENT MATURITY STATED INTEREST ISSUER BALANCE DATE RATE RECEIVED US Bank CD CLOSED CLOSED CLOSED $5,039.62 US Bank CD 3,877,926.05 N/A 1.340% $14,974.09 TOTAL 3,877,926.05 SZ0,013.71 CITY OF LYNWOOD RECEIVED INTEREST PAYMENT BY ISSUER JUNE 30, 2002 FACE AVERAGE MATURITY STATED INVESTMENTS VALUE BOOK VALUE DATE RATE INTEREST PASSBOOKS/CHECKING CITY -US BANK CI`CY - US BANK HCDA CITY - US BANK HOME PROGRAM CITY - US BANK LYNWOOD TTEES. HUD LRA - US BANK ALAMEDA TAX INC. LRA - US BANK LYN. TR. CENTER UNF. WORKERS ACC. LRA - BANK OF AMERICA LII - US BANK TOTAL $1,936.34 $1,936.34 0.77% $4.87 $280, 952.35 $280, 952.35 1.24% $3, 461.46 $188,156.78 $188,156.78 1.80% $84.43 $48,004.29 $48,004.29 1.24% $149.97 $58,294.75 $58,294.75 1.24% $181.91 $2, 988.30 $2, 988.30 1.25°!0 $6.02 $136,700.96 $136,700.96 $148,644.26 $148,644.26 $865,678.03 $865,678.03 0.50% $172.56 0.18% $463.86 $4,525.08 CITY OF LYNWOOD INVESMENT PORTFOLIO DETAILS JUNE 30, 2002 CHECKING ACCOUNTS CITY ACCOUNTS 1. GENERAL ACCOUNT 2. PAYROLL ACCOUNT 3. PETTY CASH ACCOUNT 4. WORKERS COMPENSATION 5. CITY OF LYNWOOD FLEXIBLE SPENDING ACCOUNT 6. ARNORLD LITKE FOUNDATION 7. LRA - ALAMEDA PROJECT 8. LRA - AREA A TAX INCREMENT 9. REDEVELOPMENT FUND 10. LII - CHECKING ACCOUNT CITY OF LYNWOOD FISCAL AGENT INVESTMENTS JUNE 30, 2002 TRUSTEE ACCOUNTS PURCHASE PAR MARKET DATE VALUE VALUE Tax Allocation Bonds, Series 1999, Alameda Oct-99 $1,310,000.00 $108,476.52 U S Bank Coporate Trust Services Lynwood Public Financing Authority May-93 $8,650,000.00 $1,484,124.49 Revenue Bonds, 1993 Series A US Bank Coporate Trust Services Lynwood Public Financing Authority Oct-95 $4,500,000.00 $2,315,562.22 Water System Improvement Project, Series 1995 U S Bank Corporate Trust Services Lynwood Public Financing Authority Oct-99 $10,235,000.00 $801,593.37 Tax Allocation Bonds, Series 1999,Series A U S Bank Corporate Trust Services Lynwood Public Financing Authority Oct-99 $3,425,000.00 $266,996.93 Tax Allocation Bonds, Series B U S Bank Corporate Trust Services Lynwood Public Financing Authority Water System Improvement Project, Series 1999 US Bank Coporate Trust Services Oct-99 $5,850,000.00 $5,070,908.61 Tn~ ~~r~~ e~rt~11AITC PURCHASE PAR DATE VALUE MARKET VALUE Lynwood Public Financing Authority Oct-99 $376,000.00 Lease Revenue Bonds, Series 1999 US Bank Corporate Trust Services Lynwood Public Financing Authority Sep-96 $1,500,000.00 Revenue Bonds -Civic Project Series 1996 US Bank Corporate Trust Services $1,493,649.05 $672,067.26 __. _RESOLUTIlaN NQ. __.LII A RESC)LUTION OE_THE LYNWOOD INFORMATION INC ._ LYNWOOD, CALIFORNIA ALLOWING AND APPROVING TWE DEMANDS AND ORDERING WARRANTS THEREFOR The Lynwood Information Inc. does hereby resolve as follows: Section 1. That the demands presented, having been regularly audited, are hereby allowed and approved, and t hat warra~;ts ordered drawn therefor by the Agency Treasure to the payee and in the amounts indicated. WARRANT#/DATE PAYEE DESC AMOUNT 3514 11-OS-02 U. S. POSTAL SERVICE POSTAGE 2,000 .00 3515 11-p 5--02 ATL<T BROADDAND CABLE SVCS 199. 26 3516 it-OS-02 AT&<T DROADBAND CABLE SVC5 136. 42 3517 11-05-02 ATy<T BROADBAND GABLE SVCS 343. 45 3518 11-OS-0~ ATYxT DROADDAtJD CABLE SVC5 1, 011. 06 3519 11-05~-0~' AT?.T WIRELESS SERVICE WIRELESS SVCS 364. 27 3520 li-OS--02 AUTOMATED BINDING ~< MAILING CO MAILItJG/NEWSLETTER 234. 55 3521 11-05-02 DRENDA J. PETERSON °< A550C. NEWSLETTER/DESIGN 1,233. 74 3522 it-OS-02 LANGUAGE NETWORK TRANSLATION SVGS 390. 83 3523 11-05-02 MYBAR PRINTING INC. PRINTING/NEWSLETTER 5,236. 63 , #+e TOTAL 1 1, 174. 41 Section 2. That the Agency Secretary shall certify to the adoption of the resolution and shall deliver a certified copy to the Agency Treasure and shall retain a copy thereof for the record. PASSED, APPROVED AND ADOPTED THE day of 2002 ~T_sT; `~ ~ . ARTURO REYES CHAIRMAN. Lynwood Information Inc. This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Ofhce of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603-0220, ext. 200. Procedures forAddressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. ~ AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE REGULAR MEETING OF S~ITYflF LYNWOpD THE LYNWOOD INFORMATION INC. CITY CLERKS OFFICE TO BE HELD ON NOVEMBER 19, 2002 N0V 1 4 2002 6:00 P.M IW pY COUNCIL CHAMBERS 7~8-yt'~~`lull~3~516 1111330 BULLIS ROAD, LYNWOOD, CA 90262 1~~~~"" Off' 1~~,?.~~~"~"9r, ARTURO REYES ~'`;"~ ° ~~e:~-~ CHAIRMAN FERNANDO PEDROZA VICE-CHAIRMAN PAUL H. RICHARDS, II DIRECTOR CITY MANAGER FAUSTIN GONZALES CITY CLERK ANDREA L. HOOPER LOUIS BYRD DIRECTOR RAMON RODRIGUEZ DIRECTOR INTERIM CITY ATTORNEY MICHAEL B. MONTGOMERY CITY TREASURER IRIS PYGATT OPENING CEREMONIES CALL TO ORDER ROLL CALL OF DIRECTORS Fernando Pedroza Louis Byrd Paut H. Richards, II Ramon Rodriguez Arturo Reyes 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD 8E NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE COUNCIL, BUT 1T 1S ALL RIGHT FOR COUNCIL TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph 5.) CONSENT CALENDAR 5. MINUTES OF PREVIOUS MEETING: Regular Meeting, October 1, 2002 Special Meeting, October 7, 2002 Special Meeting, October 9, 2002 Special Meeting, October 10, 2002 Special Meeting, October 14, 2002 Regular Meeting, October 15, 2002 Special Meeting, October 23, 2002 6. GEOGRAPHIC INFORMATION SYSTEMS DAY Comments: A Geographic Information System (GIS) is a collection of computer hardware, software and geographic data that allows a user the ability to capture, store, update, manipulate, analyze and display several forms of information in the form of a map. Local governments use GIS in numerous methods including emergency response, economic development, environmental protection, crime mapping, infrastructure inventory, and land use. GIS Day is an annual event intended to highlight the industries technological significance, whereby several GIS users and vendors are hosting open houses for various audiences to showcase the real world capabilities and applications of GIS. This year November 20th will be recognized as GIS Day. Recommendation: Staff respectfully requests that the Chairman and Members of the Lynwood Information Incorporated receive and file this item. 7. APPROVAL OF THE WARRANT REGISTER Comments: City of Lynwood warrant register dated November 19, 2002 for FY 2002- 2003. Recommendation: Staff recommends for the Lynwood Information Inc. members to approve the warrant register. ADJOURNMENT THE NEXT REGULAR MEETING WILL BE HELD ON DECEMBER 3, 2002 AT 6:00 P.M. IN COUNCIL CHAMBER ROOM, CITY HALL, CITY OF LYNWOOD, CALIFORNIA. LYNWOOD INFORMATION, INC. REGULAR MEETING OCTOBER 1, 2002 The Lynwood Information, Inc. of the City of Lynwood met in a Regular Meeting in the Council Chambers, 11330 Bullis Road on the above date at 7:15 a.m. Chairman Reyes presiding. Directors Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were City Manager Gonzales, City Attorney Montgomery, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS Item #4: MINUTES OF PREVIOUS MEETINGS It was moved by Director Rodriguez, seconded by Director Richards and carried to approve the following minutes: Regular Meeting, September 3, 2002 Special Meeting, September 4, 2002 Regular Meeting, September 17, 2002 Item #5: EXPANSION OF STATE OF CALIFORNIA E-GOVERNMENT SERVICES The importance of the role that technology plays in our society is rapidly increasing and the State of California is currently one of the most advanced states in the country in regards to providing E-Government services to constituents. The state provides a myriad of information on various services. With one of the most frequently accessed websites being the Department of Motor Vehicles, with nearly 2 Million visits a month, and the increasing Latino population in the state, on September 18, 2002 Governor Gray Davis announced the availability of the Department of Motor Vehicles website in Spanish. It was moved by Director Rodriguez, seconded by Vice Chairman Pedroza and carried to receive and file this information. Item #6: APPROVAL OF THE WARRANT REGISTER It was moved by Director Byrd, seconded by Director Richards to adopt Resolutions: RESOLUTION NO. 2002.022 ENTITLED: A RESOLUTION OF THE LYNWOOD INFORMAT[ON INC. LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND ORDERING WARRANTS THEREFORE. rw I ~-'~ 1~'w ~"--~-_ ROLL CALL: AYES: DIRECTOR BYRD, PEDROZA, RICHARDS, RODRIGUEZ, REYES NOES: NONE ABSTAIN: NONE ABSENT: NONE ADJOURNMENT It was moved by Director Rodriguez, seconded by Vice Chairman Pedroza and carried to adjourn the Regular Council Meeting at 7:20 p.m. Arturo Reyes, Chairman Andrea L. Hooper, Secretary LYNWOOD INFORMATION, INC. SPECIAL MEETING OCTOBER 7, 2002 The Lynwood Information, Inc. of the City of Lynwood met in a Special Meeting in the Council Chambers, 11330 Bullis Road on the above date at 9:40 a.m. Chairman Reyes presiding. Directors Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were City Manager Gonzales, City Attorney Montgomery, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS Item #4: PROPOSED FY 2002-2003 BUDGET PLAN Director Richards -Moved to have a Special meeting for the Proposed FY 2002-2003 Budget Plan for October 9, 2002 at 9:00 a.m. It was second by Director Byrd. ROLL CALL: AYES: DIRECTOR BYRD, PEDROZA, RICHARDS NOES: DIRECTOR RODRIGUEZ, REYES ABSTAIN: NONE ABSENT: NONE ADJOURNMENT It was moved by Director Rodriguez, seconded by Director Byrd and carried to adjourn the Special Council Meeting at 12:20 p.m. Arturo Reyes, Chairman Andrea L. Hooper, Secretary LYNWOOD INFORMATION, INC. SPECIAL MEETING OCTOBER 9, 2002 The Lynwood Information, Inc. of the City of Lynwood met in a Special Meeting in the Council Chambers, 11330 Bullis Road on the above date at 9:15 a.m. Chairman Reyes presiding. Directors Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present was Secretary Hooper. City Manager Gonzales was absent. City Attorney Montgomery was absent. City Treasurer Pygatt was absent. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE For the record these minutes are verbatim from the recorded tape Director Richards -Stated to the Chairman that he had called yesterday and advised the City Manager that he has a pending emergency today and it has been our practice when a Member has an emergency or over this passed year if there has been any reason the body is in fit to reschedule any meeting, for example in our last budget sessions when it was known that a Member was not going to be available we simply rescheduled meetings and we have even had occasions were one or two Members have not showed up for a meeting. You knew well in advance that I had a pending emergency this morning and yet you stilt saw fit to direct staff to prepare for this morning meeting and I see that you have the Deputy City Attorney, Assistant City Manager, Head Department and Staff and I am really disturb by your action. Chairman Reyes -Stated to Director Richards that if he was not going to show up for this meeting then he will be excused, the Directors voted to have this Special Meeting stated he did not vote to have this Special Meeting, you should have advised your Members who voted with you not to show up then there would have not been a meeting. Director Richard: -Stated that there is no need to play any games, because if there is a desire to have a full body and to have all Members present which we have done in the past then I would not move forward with this charade, so any way I have said what I had to say now I ask to be excused at this time, but to me it is just a high of classlessness to move forward with this. Chairman Reyes -Stated to Director Richards that he made the motion to hold this meeting and if he had told his body Members who voted with him that he was not going to be able to come, then there would have been no meeting. Director Richards -Stated to the Chairman that if this is what it is about the fact that it was a three to two vote it is only a commend courtesy or dignity to indicate to provide the opportunity to reschedule the meeting at a later time. Director Richards -Also stated to The Chairman that he has canceled meetings and no one has showed up but me and Director Byrd and the meetings have not gone forward no staff has been present because every one knew except us and yet you have rescheduled when you knew we had to move forward but this morning when you are fully aware that I have a pending emergency my mother is in surgery you did not have the commend courtesy and respect to allow this meeting to continue, that is wrong and I do not care what you say I am really angered because this is a personal attack and I do not appreciate it. Chairman Reyes -Stated to Director Richards that this is not a personal attack, you guys made a decision and I respect it. Director Richards -Moved to have a Special Meeting on Thursday October 10,2002 at 9:00 a.m. and to include all items that were listed on Monday's Agenda. Director Byrd -Second the motion. Director Rodriguez -Moved to make an amended motion to have the Special Meeting on Thursday October 10, 2002 at 6:00 p.m. Chairman Reyes -Second the motion. Amended Motion Failed: ROLL CALL: AYES: DIRECTOR RODRIGUEZ, REYES NOES: DIRECTOR BYRD, PEDROZA, RICHARDS ABSTAIN: NONE ABSENT: NONE Main Motion Approved: ROLL CALL: AYES: DIRECTOR BYRD, PEDROZA, RICHARDS NOES: DIRECTOR RODRIGUEZ, REYES ABSTAIN: NONE ABSENT: NONE ADJOURNMENT It was moved by Director Byrd, seconded by Director Rodriguez and carried to adjourn the Special Council Meeting at 9:35 a.m. Arturo Reyes, Chairman Andrea L. Hooper, Secretary LYNWOOD INFORMATION, INC. SPECIAL MEETING OCTOBER 10, 2002 The Lynwood Information, Inc. of the City of Lynwood met in a Special Meeting in the Council Chambers, 11330 Bullis Road on the above date at 9:15 a.m. Chairman Reyes presiding. Directors Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were City manager Gonzales, City Attorney Montgomery, Secretary Hooper and City Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4: PROPOSED FY 2002-2003 BUDGET PLAN City Manager Gonzales -Stated the Budget Process started in early April when staff presented athree-year projection of all funds based upon current expenditure level. The April numbers showed annual expenditures at a higher level than the annual revenues in the General Fund. This results in the reliance on the General Fund reserves to sustain on- going operations. To reserve this trend, the Department Directors scrutinized their departmental operation and ascertained areas to streamline without critically impacting services as well as to continue to meet our obligations. Base on those meetings the following corrective actions were formulated, which embody the proposed budget. • Decrease operational cost. • Reorganization of Departments for greater efficiency. • Enhancement of ongoing revenues. • One Time Potential Revenue Sources. • Scheduling of payback of general fund liabilities. City Manager Gonzales -Also stated that if the proposed budget is adopted, the City can reduce the spending above revenues sources and will assure a healthy financial environmental for the City. Finance Director Earnest -Explained that she is here to provide the Directors with a Summary Budget of the Departments, Lynwood Redevelopment Agency and the Lynwood Information Inc. Also demonstrated to the Directors the Proposed Budget Charts. City Manager Gonzales -Stated that this Summary Plan gives the Directors and Staff an adjustment now of the expenditures of the City's revenues. Director Richards -Questioned the sales tax revenue of the Walgreen Drug Store projection. Community Development Director Morales -Explained to the Directors that the revenue is about 250.00 dollars square foot, we are looking at about 1,400.00 dollars annually. Director Richards -Questioned on the City Attorneys salary believes it is outrageous to have to pay double the amount for two City Attorneys when we have never had the need for two City Attorneys. City Manager Gonzales -Stated we have those long going cases still pending, a number of lawsuits that we are now still dealing with and those certainly have to be taken into consideration. Director Richards -Stated that even if we took a look at the pending cases the amount of projection increases in legal fees far exceeds the amount of in declaims that we have. Chairman Reyes -Stated he disagrees with Director Richards there are still a lot of cases pending and they need to be taken care of, would like to continue with the Proposed Budget presentations. COMMUNITY DEVELOPMENT PROPOSED FY 2002-2003 BUDGET PLAN: Community Development Director Morales -Introduced his departments Proposed Budget Plan explained the changes in positions, titles, and expenditure increases, salary increases and also decreases. Chairman Reyes -Stated he has no problem with the department's changes. City Manager Gonzales -Explained to the Directors the department's changes from the chart. Director Richards -Stated he would like to try to make all the positions in the department available to the staff, and would also like for every Department Head to talk to their department staff on the changes that would be made in regards to their position. Chairman Reyes -Stated he believes this discussion is very risky without the Directors having approved the changes, but we have not approved the changes how would they be able to go to the employees and tell them that their position will be reclassified or that their position is going to be deleted you are putting the management on line. Director Richards -Stated he would just like for the Department Heads to consult the changes with their staff. City Manager Gonzales -Explained to the Directors that the adoption of the Budget does not implement creation of the positions for which we do not yet have a description those descriptions will be done and brought to the Directors like we have in the past the numbers that are in the budget reflect a period of time for that implementation to take place for the discussion that are being described during the implementation period to be conducted with the employees to be conducted with the bargaining unit and monetarily that time has been built into this document. It was moved by Chairman Reyes, seconded by Director Rodriguez and carried to approve the Community Development Proposed Budget. Director Richards -Stated he has a substitute motion that the personnel from Human Resources bring back the concerning issues of reclassification of titles and positions and to hear from them first. Director Byrd, second the substitute motion. SUBSTITUTE ROLL CALL: AYES: DIRECTOR BYRD, RICHARDS NOES: DIRECTOR PEDROZA, RODRIGUEZ, REYES ABSTAIN: NONE ABSENT: NONE Motion failed. ORIGINAL ROLL CALL: AYES: DIRECTOR PEDROZA, RODRIGUEZ, REYES NOES: DIRECTOR BYRD, RICHARDS ABSTAIN: NONE ABSENT: NONE Motion passed Director Richards -Questioned if you have a budget that has twenty positions funded it would probably be two to three months before you fill in the positions so we have half a year positions with eight vacancies why would you adopt a budget for eight vacant positions are we just adding it to the budget why don't we just reduce the budget to reflect the actual amount that has been saved for this half year period. City Manager Gonzales -Explained that the budget has been built upon five months and would transpired with the old expenditures and old budget and the new one would come after the implementation period but at the moment there is no patting of the budget. CITY CLERKS PROPOSED FY 2002-2003 BUDGET PLAN City Clerk Hooper -Introduced her departments Proposed Budget explained the changes in increasing a part time to a full time position, salary increase and expenditures decrease. It was moved by Chairman Reyes, seconded by Director Rodriguez and carried to approve the City Clerks Proposed Budget. ROLL CALL: AYES: DIRECTOR BYRD, PEDROZA, RICHARDS, RODRIGUEZ, REYES NOES: NONE ABSTAIN: NONE ABSENT: NONE CITY TREASURERS PROPOSED FY 2002-2003 BUDGET PLAN City Treasurer Pygatt -Introduced her departments Proposed Budget she requested to have the Members provide her with a full time Deputy City Treasurer. Finance Director Earnest -Stated that at the last meeting it was discuss that Finance would share a person with the City Treasurer, we did budget for a half count clerk to be shared at a fifty percent with the City Treasurer her increase in salary reflects the part time employee to be Active Deputy City Treasurer. Director Byrd -Stated that he agrees with providing the City Treasurer with a full time Deputy City Treasurer it would help solve some of the Treasurers issues. Vice Chairman Pedroza -Stated that he also has no problem with providing the City Treasurer with a Deputy City Treasurer, because he does not agree with the Chairman and City Manager always having to sign checks, it would help solve this issue. Director Rodriguez -Stated he would agree with providing a Deputy City Treasurer as long as it is an in house employee working within City Hall, and it should be were she can be located, what she can account to, and what her duties are, and what she is doing even if she is under the City Treasurer. City Treasurer Pygatt -Questioned if this Deputy City Treasurer would be a full time employee based upon the salary of $35,939.20 yearly under the supervision of the City Treasurer. It was moved by Director Rodriguez, seconded by Vice Chairman Pedroza and carried to approve a Deputy City Treasurer for the City Treasurer with the conditions that it is an in house employee working within City Hall. ROLL CALL: AYES: DIRECTOR BYRD, PEDROZA, RICHARDS, RODRIGUEZ, REYES NOES: NONE ABSTAIN: NONE ABSENT: NONE City Treasurer Pygatt -Stated that she wanted to make it clear to the Directors that the City Treasurer should have the privilege of choosing the Deputy City Treasurer. Director Richards -Stated to the City Treasurer that as long as it is in the Code then there would be no problem. ADJOURNMENT Having no further discussion, it was moved by Director Rodriguez, seconded by Vice Chairman Pedroza and carried to adjourn the Special Council Meeting at 12:00 p.m. Arturo Reyes, Chairman Andrea L. Hooper, Secretary LYNWOOD INFORMATION, INC. SPECIAL MEETING OCTOBER i4, 2002 The Lynwood Information, Inc. of the City of Lynwood met in a Special Meeting in the Council Chambers, 11330 Bullis Road on the above date at 6:15 p.m. Chairman Reyes presiding. Directors Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were City manager Gonzales, City Attorney Montgomery, Secretary Hooper and City Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda [terns Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Itenn #4: PROPOSED FY 2002-2003 BUDGET PLAN City Manager Gonzales -Stated the Budget Process started in early April when staff presented athree-year projection of all funds based upon current expenditure level. The April numbers showed annual expenditures at a higher level than the annual revenues in the General Fund. This results in the reliance on the General Fund reserves to sustain on- going operations. To reserve this trend, The Department Directors scrutinized their departmental operation and ascertained areas to streamline without critically impacting services as well as to continue to meet our obligations. Base on those meetings the following corrective actions were formulated, which embody the proposed budget. • Decrease operational cost. • Reorganization of Departments for greater efficiency. • Enhancement of ongoing revenues. • One Time Potential Revenue Sources. • Scheduling of payback of general fund liabilities. City Manager Gonzales -Also stated that if the proposed budget is adopted, the City can reduce the spending above revenues sources and will assure a healthy financial environmental for the City. CITY MANAGERS PROPOSED FY 2002-2003 BUDGET PLAN: Assistant City Manager Hempe -Introduced the Proposed Budget Plan to the Directors and explained the changes that were to be made. Chairman Reyes -Questioned some of the employees working hours and working days. City Manager Gonzales -Stated he would like to change the part time employees into full time employees. Director Richards -Questioned on the Directors list why is there a full time employee position deleted and then on the add on list there is no full time position to be recovered, would like to know if this particular full time employee has a position here in the City and how would the Directors know. City Manager Gonzales -Explained to The Directors that this list is just an example of the process of improving the Budget there is no action being taken yet. Director Richards -Stated that this list is not specific relating to the changes in positions, salary increases and decreases and titles. Questioned if there was a reallocation Resolution. City Manager Gonzales -Stated that there is no reallocation Resolution at the moment Director Richards -Stated that for the record he would not vote on the Proposed Budget Plan, it is discriminating the employee's rights and it is unlawful. Director Rodriguez -Questioned the City Attorney if they were violating any employee's rights by accepting the Proposed Budget Plan. City Attorney Montgomery -Explained to the Directors that they are not violating any employee's rights, we are abiding by the rules. Also stated that this litigation would be better of if it was discussed in close session. Director Richards -Stated he would have no problem discussing this litigation in close session. It was moved by Chairman Reyes, seconded by Director Rodriguez to approve the City Managers Proposed Budget. Director Byrd -Questioned that who ele_ cted the City Manager to be the Elections Coordinator. City Managers Gonzales -Stated that he was elected by the City Council. Director Richards -Stated that the Council is not doing the right thing by adopting the Budget. Chairman Reyes -Stated that each Director individually discussed the Proposed Budget with the City Manager and the Assistant City Manager. Director Richards -Stated that every Head Department should meet with their staff and let them know what is going on with the Budget changes. Director Rodriguez -Stated that he is very comfortable with the Budget changes and would like to move forward. Director Richards -Stated that the Directors should not approve the Budget because the fundamental steps have not been taken properly with the employees. ROLL CALL: AYES: DIRECTOR PEDROZA, RODRIGUEZ, REYES NOES: DIRECTOR BYRD, RICHARDS ABSTAIN: NONE ABSENT: NONE DIRECTORS PROPOSED FY 2002-2003 BUDGET PLAN It was moved by Director Rodriguez, seconded by Vice Chairman Pedroza to approve the Directors Proposed Budget. ROLL CALL: AYES: DIRECTOR PEDROZA, RODRIGUEZ, REYES NOES: DIRECTOR BYRD, RICHARDS ABSTAIN: NONE ABSENT: NONE FINANCE & ADMINISTRATION PROPOSED FY 2002-2003 BUDGET PLAN: Finance Director Earnest -Presented to the Directors a brief presentation on the department changes in positions, titles and salaries. Chairman Reyes -Stated he would like to provide the CDBG program with a new coordinator. It was moved by Chairman Reyes, seconded by Director Rodriguez to approve the Finance & Administration Proposed Budget, and include one new position a CDBG Technician. ROLL CALL: AYES: DIRECTOR PEDROZA, RODRIGUEZ, REYES NOES: DIRECTOR BYRD, RICHARDS ABSTAIN: NONE ABSENT: NONE RECREATION & COMMUNITY SERVICES PROPOSED FY 2002-2003 BUDGET PLAN: Director of Recreation Givens -Presented to the Directors a brief presentation on the department changes in positions, titles and salaries. Director Byrd -Questioned if there would be volunteers and two part time employees running the Youth Center. Director of Recreation Givens -Stated that is correct, explained that with the Budget cuts this is what he can only provide for the Youth Center. Director Richards -Questioned on the total amount of the Dove Program how much is the cost of this program. Director of Recreation Givens -Stated it is about 2,000.00 dollars to 3,000.00 dollars It was moved by Director Rodriguez, seconded by Vice Chairman Pedroza to approve the Recreation & Community Services Proposed Budget. ROLL CALL: AYES: DIRECTOR PEDROZA, RODRIGUEZ, REYES NOES: DIRECTOR BYRD, RICHARDS ABSTAIN: NONE ABSENT: NONE ENVIRONMENTAL SERVICES PROPOSED FY 2002-2003 BUDGET PLAN: Director of Environmental Services Wang - Presented to the Directors a brief presentation on the department changes in positions, titles and salaries. Director Richards -Questioned Director Wang if he met with his staff in regards to the Budget changes. Director of Environmental Services Wang -Explained to Director Richards that he has not met with his staff because it would be better if the Budget were adopted first. Director Richards -Stated that he thought he was pretty clear to the Departments Head in regazds to meeting with the employees to discuss the Budget changes before adopting the Budget. It was moved by Chairman Reyes, seconded by Director Rodriguez to approve the Environmental Services Proposed Budget. ROLL CALL: AYES: DIRECTOR PEDROZA, RODRIGUEZ, REYES NOES: DIRECTOR BYRD, RICHARDS ABSTAIN: NONE ABSENT: NONE NEIGHBORHOOD PRESERVATION PROPOSED FY 2002-2003 BUDGET PLAN: Assistant City Manager Hempe -Presented to the Directors a brief presentation on the new departments in regards to positions, titles and salaries. City Manager Gonzales -Specified to the Directors the new department ideas. Director Byrd -Stated he does not agree with the changes being made in regards to the Proposed Budget. Chairman Reyes -Stated he would like to set up an agreement with a Service Provider negotiator to take care of all the abandon cars here in the City. Director Richards -Stated that the Directors should not adopt an agreement when we have not finish adopting the Proposed Budget. It was moved by Chairman Reyes, seconded by Director Rodriguez to direct the City Attorney to negotiate with a Service Provider and to set an agreement and bring back to the Directors. Director Richards -Stated that he has concerns regarding who has applied to become the services provider for the City, and also feels that the primarily steps have not been taken with the City employees positions, there has not been any discussion with the employees in regards to the changes that would be made in the Budget. It was moved by Director Richards, seconded by Director Byrd to move a substitute motion for a division of the original motion. ROLL CALL: AYES: DIRECTOR BYRD, RICHARDS NOES: DIRECTOR PEDROZA, RODRIGUEZ, REYES ABSTAIN: NONE ABSENT: NONE Vice Chairman Pedroza -Stated he would like to make a substitute motion for staff to bring back a report agreement for a Service Provider charging $500.00 dollars per abandon vehicle with Directors approval. It was moved by Vice Chairman Pedroza, seconded by Director Rodriguez to approve the substitute motion. Director Richards -Stated that the Directors are very unprofessional SUBSTITUTE ROLL CALL: AYES: DIRECTOR PEDROZA, RODRIGUEZ, REYES NOES: DIRECTOR BYRD, RICHARDS ABSTAIN: NONE ABSENT: NONE Chairman Reyes -Would like to make a motion to delete the Auto Allowance for all employees, other than the exception of the City Manager, Assistant City Manager, Department Directors and Elected Officials. It was moved by Chairman, seconded by Director Rodriguez to approve the deletion of the Auto Allowance. ROLL CALL: AYES: DIRECTOR PEDROZA, RODRIGUEZ, REYES NOES: DIRECTOR BYRD, RICHARDS ABSTAIN: NONE ABSENT: NONE Director Richazds -Stated that these actions are so unlawfully done the action that was just made is invalid. Chairman Reyes -Directed the City Manager to set up a retirement package plan for the City's employees who wish to retire. Director Richazds -Stated that this is outrageous, and he is not going to participate with these unlawful issues and have not been posted. Chairman Reyes -Stated he would like to continue the retirement package plan until it is posted on the Agenda as an Agenda Item. LYNWOOD REDEVELOPMENT AGENCY PROPOSED FY 2002-2003 BUDGET PLAN: Finance Director Earnest - Presented a brief presentation to the Directors on the Lynwood Redevelopment Agency proposed changes. It was moved by Chairman Reyes, seconded by Director Rodriguez to approve the Lynwood Redevelopment Agency Proposed Budget. ROLL CALL: AYES: DIRECTOR PEDROZA, RODRIGUEZ, REYES NOES: DIRECTOR BYRD, RICHARDS ABSTAIN: NONE ABSENT: NONE LYNWOOD INFORMATION INC. PROPOSED FY 2002-2003 BUDGET PLAN: Assistant City Manager Hempe - Presented a brief presentatior. to the Directors on the Lynwood Information Inc. Proposed changes. It was moved by Chairman Reyes, seconded by Director Rodriguez to approve the Lynwood Information Inc. Proposed Budget. ROLL CALL: AYES: DIRECTOR PEDROZA, RODRIGUEZ, REYES NOES: DIRECTOR BYRD, RICHARDS ABSTAIN: NONE ABSENT: NONE Chairman Reyes -Stated to the City Manager that he would like to have the ratification Proposed Budget ready for the next Regular scheduled meeting. CAPITOL IMPROVEMENT PROJECTS PROPOSED FY 2002-2003 BUDGET PLAN: Assistant Director of Environmental Services Farhadi - Presented a brief presentation to the Directors on-the Capitol Improvement Projects proposed changes. It was moved by Chairman Reyes, seconded by Director Rodriguez to approve the Capitol Improvement Projects Proposed Budget. ROLL CALL: AYES: DIRECTOR BYRD, PEDROZA, RICHARDS, RODRIGUEZ, REYES NOES: NONE ABSTAIN: NONE ABSENT: NONE ADJOURNMENT Hearing no further discussion, it was moved by Director Rodriguez, seconded by Vice Chairman Pedroza and carried to adjourn the Special Council Meeting at 8:40 p.m. Arturo Reyes, Chairman Andrea L. Hooper, Secretary LYNWOOD INFORMATION, INC. REGULAR MEETING OCTOBER 15, 2002 The Lynwood Information, Inc. of the City of Lynwood met in a Regular Meeting in the Council Chambers, 11330 Bullis Road on the above date at 7:30 p.m. Chairman Reyes presiding. Directors Byrd, Pedroza, Richards, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were City Manager Gonzales, City Attorney Montgomery, Secretary Hooper and Treasurer Pygatt. Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS Item #5: STATE OF CALIFORNIA NON-EMERGENCY TELEPHONE NUMBER SYSTEM In recent years, an overload to the "911" emergency response systems has been experienced. The Federal Communications Commission had designated "311" as a nationwide alternative to "911" for the reporting ofnon-emergency incidents. It was moved by Director Rodriguez, seconded by Vice Chairman Pedroza and carried to receive and file this information Item #6: APPROVAL OF THE WARRANT REGISTER It was moved by Director Byrd, seconded by Vice Chairman Pedroza to adopt Resolution: RESOLUTION N0.2002.023 ENTITLED: A RESOLUTION OF THE LYNWOOD INFORMATION INC. OF LYNWOOD, CALIFORNIA, ALLOWING- AND APPROVING THE DEMANDS AND WARRANTS THEREFORE. ROLL CALL• AYES: DIRECTOR BYRD, PEDROZA, RICHARDS, RODRIGUEZ, REYES NOES: NONE ABSTAIN: NONE ABSENT: NONE ADJOURNMENT Hearing no fiu-ther discussion, it was moved by Director Byrd, seconded by Vice Chairman Pedroza and carried to adjourn the Regular Council Meeting at 7:32 p.m. Arturo Reyes, Chairman Andrea L. Hooper, Secretary LYNWOOD INFORMATION, INC. SPECIAL MEETING OCTOBER 23, 2002 The Lynwood Information, Inc. of the City of Lynwood met in a Special Meeting in the Council Chambers, 11330 Bullis Road on the above date at 10:12 a.m. Chairman Reyes presiding. Directors Byrd, Pedroza, Richazds, Rodriguez and Reyes answered the joint roll call for all agencies. Also present were City Manager Gonzales, City Attorney Montgomery, City Treasurer Pygatt, and Adel Rojas, Administrative Analyst. Adel Rojas, Administrative Analyst announced that the agenda had been posted in accordance with the Brown Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4: GEOGRAPHIC INFORMATION SYSTEMS -PILOT PROJECT FOR MOBILE GOVERNMENT Staff recently received notification that of the Pilot Project for Mobile Government that will provide softwaze, hazdwaze, and training for ten municipalities to develop pilot projects that utilize GIS for mobile government services. At the present time staff is currently investigating our capacity to implement the pilot project for mobile government program within our current organizational framework and this programs ability to assist the City in our overall GIS goals and a proposed GIS Student Training. It was moved by Vice Chairman Pedroza, seconded by Director Byrd and carried to receive and file this item. ADJOURNMENT Hearing no further discussion, it was moved by Vice Chairman Pedroza, seconded by Director Byrd and carried to adjourn The Special Council Meeting at 10:13 a.m. Arturo Reyes, Chairman Andrea L. Hooper, Secretary Adel Rojas, Administrative Analyst MEMORANDUM DATE: November 19, 2002 TO: HONORABLE CHAIRMAN AND DIRECTORS OF LYMWOOD INFORMATION INCORPORATED FROM: Faustin Gonzales, City Manager ~~ BY: Autra C. Adams, Program Development Coordinator SUBJECT: Geographic Information Systems Day PURPOSE: To inform the Chairman and Members of the Lynwood Information Incorporated, of the upcoming celebration of Geographic Information Systems Day. BACKGROUND: A Geographic Information System (GIS) is a collection of computer hardware, software and geographic data that allows a user the ability to capture, store, update, manipulate, analyze and display several forms of information in the form of a map. GIS technology includes a variety of data to identify and describe locations, such as street addresses, digital imagery, civil divisions, zip code boundaries, zoning types, environmental resources, latitude and longitude coordinates and census tracts. GIS allows for several layers of data to concurrently appear on a single map for various analytical purposes. GIS is one of the fastest growing technological industries throughout the world. ANALYSIS: Local governments use GIS in numerous methods including emergency response, economic development, environmental protection, crime mapping infrastructure inventory, and land use. GIS Dav GIS Day is an annual event intended to highlight the industries technological significance, whereby. several GIS users and vendors are hosting open houses for various audiences to showcase the real world capabilities and applications of GIS. GIS Day is sponsored by the National Geographic Society, the Association of American Geographers, the University Consortium for Geographic Information Science, the United States Geological Survey, The Library of Congress, Sun Microsystems, and ESRI. This year November 20'h will be recognized as GIS Day. The theme for 2002 is America's Backyard: Exploring Your Public Lands. Numerous governmental agencies, educational institutions and private businesses are hosting GIS Day throughout the world. Two local venues hosting GIS Day events are Rio Hondo College and the City of Culver City. RECOMMENDATION: Staff respectfully requests that the Chairman and Members of the Lynwood Information Incorporated receive and file this item. ATTACHMENT ri E:~rll? .~ 1 ' ~' ~.~--- . us., GIS Day Liaks Register an Event Update Event Info. Find an Event Near You Event Volunteers GIS Day Materials The Latest News Success Stories Proclamations Event Sponsors FAQs Your T-shirt Photos Discussion Forum Send a GIS Day Postcard Subscribe to Newsletter Comments and Questions Geography Matters Home Announcements - Free ArcLessons help you plan GIS Day schoolroom activities. - Nevada GIS sponsors a multitude of GIS Day events. - Order your GIS Day Gear online today. - State of North Carolina to host GIS LIVE Web cast -GIS Day associate sponsor, the American Planning Association (APA), to ~onsor youth delegates to Smart Growth Conference - ACMLA (Association of Canadian Map Libraries and Archives) joins as a new associate sponsor. - The New. York State_Offi_ce for Technology hosted a very successful G!S Day exhibit at the Government Technology Conference in Albany at the Empire State Plaza on September 25- 27. - International Distributor Challenge information. Whaf is G1S Day? GIS Day is a grassroots event that formalizes the practice of geographic information systems (GIS) users and vendors of opening their doors to schools, businesses, and the general public to showcase real-world applications of this important technology. The event is principally sponsored by the National Geographic Society, the Association of American Geographers, University Consortium for Geographic Information Science, the United States Geological Survey, The Library of Congress, Sun Microsystems, and ESRI. GIS Day is part of the National Geographic Society's exciting new initiative, Geography Action, which is a year-long tnsfitution in Washington, DC initiative encompassing key educational achievements such as GIS Day and Geography Awareness Week. The theme for 2002 is America's Backyard: Exploring Your Public Lands. In addition to events such as GIS Day and Geography Awareness Week, there will also be many worldwide activities supporting geography action, with their goal being to engage people in learning and caring about geography. http://www.gisday.com/ 11/6/0 ...5.... The National Geographic Society has sponsored Geography Awareness Week since 1987 to promote geographic literacy in schools, communities, and organizations, with a focus on the education of children. Geography Awareness Week will be held November 17-23, 2002. GIS Day 2002 will be held the Wednesday of Geography Awareness Week, November 20. In 2001, thousands of organizations hosted GIS Day events in countries all around the world. Be sure to read about some of them on our Success Stories page. Through the combined efforts of GIS Day 2001 participants, millions of children and adults were educated on GIS technology through geography. GIS users and vendors are invited to join the National Geographic Society, the Association of American Geographers, the University Consortium for Geographic Information Science, the United States Geological Survey, The Library of Congress, Sun Microsystems, and ESRI in opening their doors for GIS Day 2002, November 20. http://www.gisday.com/ 11/6/C capabilities of G!S technology at GIS Day 2001. "? NATi~NAL GL•OGFLIPHIC '. SOC1L7Y USGS ~17te LIBRARY e,*`CONGRESS srl.nr. mra o~+e9ky..aU ' a take it to the n'" G~~~G~ \/t /~ p iJ(/~j m/LfGSf5fCm5 Reglste_r an Event Update Event Info Find an Event Near You Event Volunteers Materials Latest News Success Stones Proclamations Sponsors. FAQs Your T-shirt Photos Forum Comments Subscribe Send a_Postcard Geography Matters Home ............... Copyright ©1999-2002 ESRI Send your commerits to: Site Manager October 30, 2002 ...5., http://www.gisday.com/ 11/6/0 at" to#erna#ional GIS Day ~` Presentation/Demonstration I Agenda When? 8:30 am through (free) lunch on Wednesday, November 20, 2002 Where? Park in Lot_'A.'.Sign in on arrival in the Technology Courtyard at the North end of the ScienceBuilding. Event will begin in Room S305 ~'~' Invited? Everyone is invited including the college faculty, staff, administrators and Rio Hondo District Community, K-12, & local industries. Bring your students! Leam about o •} t pportunities to integrate innovative Geographic Information Systems (G!S) info your classroom and curriculum, or staffing, administration and maintenance, team about free resources, determine topic applications, and eam flex credit! Students interested in transferring to a CSU, they can consult with representatives from CSUP &CSULB 8:30 a.m. - 8:45 a.m. Welcome, Staff & Guest Introductions & Proclamations 8:45 a.m.-9:15 a.m. What is GIS? S305 o What is 'GIS' and`what is the importance and future of GIS? M• o Wonderful resources including for K=12, Crime, Business & census mapping & ,o The ti limited applications of GIS -stump the expert!! )~~ 0930 a m. -:Noon Worksho s & Demonstrations ~ ;Se son A ~, Room 5305 GIS t t e niversi~y ` , y,'" ~,_._,-~ G1S in Urban & Regional Planning, Cal Pol P ona Department of Planning (Rollie Lund, Cal Poly ~~,), - ~,~ Pomona) ~ s ~t `o,f GIS at CSU Long Beach (James Wood, (;,BULB) or GIS Interdisapl~nary GIS Minor at Cal Poly Pomona (Dr. Neto, Engineering) ~ ~: ~ ~ ~ ~Sessron B i ~ i ~ w ~ om 3306 GIS m Law Enforcement ~ ,,~ a4xgo Introd~cUon~So`Cnrne~rialysis and,l~lap ing Program 'Robert Feliciano ~f .. ~ t; ~ o +Usm G!S to d termmiri ~ use "~i'o"' c line in Los An eles Safa F. Egilmez ,;; ~;' '' ,elf , o~ OMEGA~G ou[p~ G/~ o i s for P I ce(~Fice & Schools '~ i~',' ~~t ~`' rF .- ~) t `lk~ { ~ "k (~~~ j t~ ~.~,'~, ,~ J IR : r ~i ~Y1. ' ., , ~Session.Ct • ~ ~> • ,i ~`Room :S3071~,f~ GIS in Fire Sa+'4~0$en e~~GIS in~Co'~~servat~on ;;~ ~ ~', tY . ~ ~ ~b, GIS in Firs '°tFIRESCOP!~ -"cover `r s ffice of Emer enc _Services OES Alfie 8 anch ~ r Using F~r~ea~n brush fi~e;>~azard'rpiti~tsort (James Wood CSULB„ ~'.: ~~` ~• i " `~, ~~~~ ~ GIS m Conseryatton Mark Abrahamson, Heal the Ba ~ ~ ""~ ~ z~`~'llr ~ ,r~ v ~H'ya Y~, ~ , ,' ;yt ~ ~ ~ tp t~d''R ._ t Yet ~ .. y) r i~~,~~' ~ '~ " eP~~'1 ~l-t ra_~ ~j~ Session D nti ~ .Room S309,~ ! :GIS ,(n Politics 1 GPS Basiis _' ,,"' ~ ~,~ no GIS in Po6ti~al Campaigns & Consti~uen~ttiO~utrteach?m~eg~slative Offjces (Gary Mender; RF~~ ° i ~ Starting G!Setn your City (ACT. GIS,~Ir~c.);~,,~~~; , ~ ,~ .%' ~ s.4~ ~ti~',~~~~, ,y.;.n,~,~,~*<°'' ';n~ ~~ ko Global Positioning Systems ~GP ~~Aad S ~ynttffic~Jason Wallace :1 ~j ~1~ ~~ C ~ ~ ~ ~ • rv ~4g Event ~ 'Model,Shop~Ra om~~~~, ~ ~ ~''~ ~.~`~'~~~ ~~~~+~jp ~'`~ ti_ i.~ `, ~, 1b r ~. '' o .Poster displays , ~ '"; , o ~•.OMine G_IS Pages,:. "' ~ 0 3D Terraifi~Modelirig ` ~`;~ Y, o^ 'ArcGIS '~ ~`^• a o Earthviewer=_"`- ~ ~~ .:, o ;~deo World m a Boxti~ fir. _ o OMEGA'Exhibiit '~ o '' W,,,"~ ~~4~; ` , ,~ ", , F. Host.Lunch`at Noon in Technolo 'Cou + .9Y rtyard ., r ~, Sttl [emaining after Lunch? Informal GIS Workshop (for G!S 8 non-GIS users) Room S305 ~+~: ~ t , n~~.` ~ , '~ _... atn International GIS Day Presenters ~; ~... ~^~ Name of Presenter To is Covered Warren Roberts o GIS in for Everyone! Rio Hondo College, GIS Coordinator / Faculty Bob Feliciano o GIS in Law Enforcement Rio Hondo College, GIS Public Safety - Coordinator ~~ Gary Mendez Rio Hondo College Trustee President o ,GIS in Political Campaigns & Constituent Outreach in Legislative Offices` '' • Safa F. Egilmez ~ .. 'o Using GIS to.determining influences Crime Anal st, Santa Monica PD Alfie Blanch ,,: ~ ~ of crime in Los An eles~ _~+ ~ Governor's Office of Emergency Services o FIRESCOPE - GIS in'Emergenc• OES q ~James~Wood ~ Cal State Long Beach ; o GIS at CSU Lo o Usi Fir i ~ _ ng e n br rd , miti ation l uin . _ ~ ~ GROUP o Complete Solutions for Fire, Police ~ & Schools ice r fie Carl b d` ; ~o Introduction to Globa( Positioning ' , s a ., .~ S stems .GP.S ~,• ',"~ r „~~~; , ~ ' ~~ na,~jl~e'p `.me -~ t. ~ - rno ~°_'040 ~ GIS Applications: in Urban & - ii Regional Pl'' nnitg i, ~ ~ ~ 4~, NeTio"~~bl~ ~ ~ ~ noha~ C vii. Engi~eenag &• o ` q~ ,~~s a l or at Cal Poly Pomona _ z _, f. I' of; Min in ~nterdis~~ p'lirfary , ,, ions ~ ' ' ~ r ~'~, 'fir \ ~ ~ ~ ? , i l :~~~ «`~k~!~w~l~r'..~ _ i~'. ` u ..~r '~ a ' -,. o 'GJ~S~Gse iq Conse~ atlon '~ s l V :'.~9 t ~+.sc latteson ;,• ~ '~~` i,,~~~ actor of Btasiness ~~1 ~4 ~ ~ a ~y .1~ !~' ~1 .. ~. ~(" (,':~o ~Sfarting~yo~t ,own cat G.IS -"'" ~ti , ~ r,~!~a ' a t"'~":~'.;~ ~': _~ ,~, J . f~~a ,.~, a~ <, ~ ,~~~ ~ ~' ~ y,e i^%r . ,~'~ Modelm ' ~ ` ~ .,r o~ Exhibit ~"~~ :.. ~Y~ ~ j, . ' i . :~ .~ • ~~ ~ o fi tf //,www sofidterrammodelm :c"om Events follow,GlS DAY+nnth-TECH FAIR-%'Open House V` ~ h ~~~. R -~ ~'~ ...,.. .. :`r ,~. ~ .. epage for updated information htto:Nwww.rh.cc ca us/ais contact wrobertsla~rh cc~°MC`a us._; on GIS in general seewoww.ais.com or about the event at www:aisday.com avai/able in Lot A roan ::."Door-to-Door Direc[io(:elrere" a~ lIL'!•C IS N YL'YIOII(1l /NQIJ- +, ;p ~s:~ 9 `~. V a ~F4 .w Please Join Us!! Please come by as we demonstrate the many applications of GIS &GPS on November 20, the 4`t' International GIS Day. Learn how it applies to YOUR interest whether you are administrating a college, providing maintenance for grounds or facilities and teaching courses to a math class or looking at social patterns within the Rio Hondo College District. Learn what resources you have right here on campus! Faculty, please encourage your students to attend GIS Day. One suggestion for faculty has been to provide students extra credit as an incentive to attend. Counselors; you will find this is a great opportunity to understand how GIS can help students transfer to universities. Administrators & staff have the opportunity to see how GIS can Here are a few ideas we would like to share with educators on how to integrate the GIS technology into the classroom: , 1. How can my students make their own census•maps to analyze demographics around RHC or the larger area? 2. How canIntegrate GPS into'anyfzeld trips? • 3. How did Rio Hondo support archeologists and geologists in map • `:oldest known human remains and why? { t~"~ 4` • `How can I display high crime locations and what a_re the pattern ~ 4 ~ ~ 5..;, How can we predict or map active f res? _.. 6. `How can GIS help combat terroras ~ ~' ~ ~ ~,-"'" ' 7. Where can.I locate my new busines , •• ~' <~ "' 1, __ 8. .Why did Lewis and Clark travel t~.e path he,took? ~ - .; e ' 9. What. is the cause of a recent salmonella outbreak? 10. Whydoes RaorHondo College have the best computer facih'tytthan any location ~.,, a ,an~thearea~ ^'''~' ~. ,..:~ l x 17~tan much morel ~ •>- ~: ~~ ' , N ~ i t 1t cy~y+ s ~t Furthermore,- w eRwo~u7d lake oar, h~~ ~ '~=~ ~_ ources we hav~, a ~c~the~„app!cataods to ~ . '' ~Counselo~rs, Staf,}`~a~d ~4dmtnas[rator an~~inoiastrate howyy&u~' anant~ the GIS ~' s techaa•ology tnto college ad~ntnist ataon:. `r~~ ;r ~ -' ~ ~~`';'~ ~~~"` - ~ "`" ,~~,,~,, { 1 1,".Where are~nuyy`''fst'udents~comangfrom?., 1~ ~~~ ~F ~If~'-•,--- 2. i What~other campusesare Itsarig GIS and what is the irknsferability~, ~~ ` 3. What:`are the cdreer, oppo~unities and what are the starting y~ages~ '~•~' ~ ~ ~_ , 4. WI{e~re~can we best.place a~ `t! ~Fte cgm , us~.clarsr,,gom?~' •rr << ~ ;.~ `~ `ww,_,~,a,:r~ } { S 'H w~c n GISsu ~,~se~~ ae, r, pr -;,~ ' ~r,4`~~vr •~', .~ ~ F ~ } 4 i.4 ppo,~t my~g~a ~a lacatron~ ~ ~~~~ q~ ~ .., a ~"~ ~ 6. -How,can I better malaage'~!~n~ `r~t`eourcollegeresources~~~ ~.~i~""~~~ ~= y `j~,; ~, ~ ~,` ~ T 'anc7 much inoref t ,mac' `t s' ~ ~~~' ~ ,~ . ti~ ~, ~~ 1~" + ~~ ,~; Stu~vn~s i'Yhy'slaould you'attend? i ~'•~'•r'~„a ~`, y ~ k_` ~;, .. ~,~ 1 barn about'the wondeafulcareer opportunities and,kpphca ion areas of GIS ~~ more im ortantl . g g ~ ~. q ' ~y,_''4 ~ ~~~:;„ p y,;...what are the,~starlin wa es.. What is re uired? ~°:~ 2What other campuses are using GIS andwhat ts,`the transferabtlety~ '~. ,~ :~ ` _~~ ~;~ 3 s a~e an opportunity for hands on GIS or try out a Global P. osttioning System a~'~`- d 4 'DtdyouknowGlS `students' can be more effective in their research rovith GIS? 4 ` , ~. 'More„marketable foryour~careerandeducationa!goals!" `~ ~`~ ~,~~` ... ~`~ .. 1 aX,G 1 City Services ~ Online Services /Forms ~ Search ~ FAO's contact us ~ Systems Development home> ciyyovernment> c~~artmenfs> information technoingy> geograUhic information system > GIS Day: Nov. 20, 2002 y Technical Services CULVER CITY TO CELEBRATE GIS DAY :=,~ Geographic Information The City of Culver City will celebrate GIS Day 2002, a global event that System (GIS) celebrates geographic information system (GIS) technology, which is revolutionizing how government, education, environmental protection, health care and many more fields conduct routine operations. The City of Culver City will host the event in the Patacchia Room at City Hall on November 20th from gam to 4pm. tutu c ~ " ` ~ The City of Culver City has incrorporated GIS technology in many municipal Y ~; ` ' S rm en applications. GIS is acomputer-based technology that combines geographic data and relevant information about specific locations This •g+~asr . technology provides a way to systematically collect and manage location- based information that is crucial to local governments. The focus of GIS Day is to educate both City employees, City residents and local schools as to the utility and efficiency of the City's GIS. GIS Day is open to the public, and involves an extensive map gallery, education, web-based interactive map training, games, and questions and answers from City staff. For more information, please call the Danielle Weintraub, GIS Analyst, at (310) 253-5976. http://www.culvercity.org/citygov/itech/gisday. asp 11 /6/C RESat_V1`I(JN NCI. L_II +'~ RE501_UTIaN ar- 'fhlE L...YNWaaI? Ii~IFaRMr'j i IaN INC. _I,,_Y111WQr_lp.._C~I,_IF'C)ftNlA._~I,_I ~{W1_hIG_.A~~IL~_AF'I'~C)VLh~lG____. .._..__,.._._..__ ....___._ IrIF Uf;::MF~PIT): ANI7 nR1)Er:zntr W~RRAP.IT~ F2EF"(]R _ _. 'f~he L.ynwnnd Ini`rar^rn•ation :Lnr, ' '~ '~iection 1.. Th at; t;hr.~_ demands " ,~;rrpro'•,t~rl, ::tnd th:5i; u!•_ir'r:3t'r'L-ss tarrlNred dr•._irurr t;i'rt. lz ,s W/~RR~OIV°f#k/I)/>tTr PF~Y]=E 14 _.._ .~..._ .. .._.._ _.. _ .... _. __.... .... ___. _. _. _. 15 1b 3 ,'sl ].1 1 ~ .0~' lJ. Li I Cli I fll_ E.f2VIl;I. _ .. _ ~~ ,~ ~~; 1L ~I~.c)' :_;PCIII F>) cr11~c;F~. 113 '3~:,:'_h 1. 7.-' 1`x--0; ~ CiF'(.1I1 .LC.) (. hllr:Ct=•. '~ ; ,;'•7 1 :L 19-°()~'. DFF'RRTMENT' C:1 F" ,JUST I(::F F? zo :.1~a~E3 11-1y-.r~1~y S'1"ATE OF C~ F'RANCr~fISF.°°. F.;- z, •35;,q _11 :~y'C'_'.__._A7PT WIItEI_ES~ ~ER!~'L('L.._...... .. L~,J;(1 zz ..1';30 t1-19--0~' OFF fCC: [)1--:. F7CIl" (:1F 1= ................ .. . __. . _ _ ac, Foll.nurs: Cy at,di.trrtL are here.~y :311uwed anrJ l,loe l:r;a,_iFaiS :and i.n the amounts indicat;cd. _._ _ ~MCIUNT a _______._.__._._ ___-- _ r, -. ... .... _._ ... _..... r,. oc.; o. oc)_ _ _. __ ... _ ra. O(.7 1G. UO _ _ _ Secti.nn L'.. ftrat, the Ayent_y Ut~rret:al•y tsh.i:l.a c:et t.i'y tt:r the adni;tiun of the re.~nlut.tan and shall , ' dt:~l.i.ver a r.:Nrtii'ir_d cnpy tt~ $I-.e Agrnr..+~l '1'`re:.:_,!~t.n•r. artil <_he~1a T'F:ta1T'1 a cofry __ thereoF for tr,c recoT•d. __ ' ._....--~ __ _ ~~ss~:i:,, f,~F~Ra~J>rn ~1NI) ~nar~r~I) l~~l..l~- ,~~y n~ _ , ~o~~ I _ > r`i t ~ ._ _ r 4 J __. _.... .. _. _ ___... AIUI)IE1'r L_. I-ICIQPF{F"t FaF''I'11F+0 RE`,~EU Jnwcrrrcl Irrf-orm~,ti.~n :Cnc. C;F16,IF'.I°1~41V, L_t ' ;3.FC;RF~ ,<rRY ,