Grand Terrace City Council
May 13, 2025

Tuesday, May 13, 2025 1

CITY OF GRAND TERRACE
City Council
AGENDA ● May 13, 2025
Council Chambers Regular Meeting 6:00 PM
Grand Terrace Civic Center ● 22795 Barton Road

COMMENTS FROM THE PUBLIC
The public is encouraged to address the City Council on any matter posted on the agenda or on any other matter within its jurisdiction. If you wish to address the City Council, please complete a Request to Speak card located at the front entrance and provide it to the City Clerk. Speakers will be called upon by the Mayor at the appropriate time and each person is allowed three (3) minutes speaking time.

The City wants you to know that you can also submit your comments by email to [email protected]. To give the City Clerk adequate time to print out your comments for consideration at the meeting, please submit your written comments prior to 5:00 p.m.; or if you are unable to email, please call the City Clerk’s Office at (909) 954-5207 by 5:00 p.m.

If you wish to have your comments read to the City Council during the appropriate Public Comment period, please indicate in the Subject Line “FOR PUBLIC COMMENT” and list the item number you wish to comment on. Comments that you want read to the City Council will be subject to the three (3) minute time limitation (approximately 350 words).

Pursuant to the provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may direct staff to investigate and/or schedule certain matters for consideration at a future City Council meeting.

PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 1st Floor Lobby Area and 2nd Floor Reception Area during regular business hours and on the City’s website www.grandterrace-ca.gov. For further information regarding agenda items, please contact the office of the City Clerk at (909) 954-5207, or via e-mail at [email protected].

Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’s office at City Hall located at 22795 Barton Road during normal business hours. In addition, such documents will be posted on the City’s website at www.grandterrace-ca.gov.

AMERICANS WITH DISABILITIES ACT
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office, (909) 954-5207 at least 48 hours prior to the advertised starting time of the meeting. This will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Later requests will be accommodated to the extent feasible [28 CFR 34.102.104 ADA Title II].

Tuesday, May 13, 2025 2
Call to Order
Invocation
Pledge of Allegiance
AB 2449 Disclosures
Remote participation by a member of the legislative body for just cause or emergency circumstances.

Roll Call
A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA B. PUBLIC COMMENT
This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda, but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting.

C. SPECIAL PRESENTATIONS
D. CONSENT CALENDAR
The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent calendar for discussion.
1) Waive Full Reading of Ordinances on Agenda
DEPARTMENT: City Clerk
2) Approval of Minutes - Regular Meeting - April 8, 2025 DEPARTMENT: City Clerk
3) Mayor authority to Sign LOS for Private Entities & Legislative Offices DEPARTMENT: City Manager
4) Auditor's Annual Financial Report and Related Documents for the Fiscal Year Ended June 30, 2024
DEPARTMENT: Finance

Tuesday, May 13, 2025 3
5) Housing Successor Agency Annual Financial Report for the Year Ended June 30, 2024 DEPARTMENT: Finance
6) Measure I Fund Annual Financial & Compliance Report for the Year Ended June 30, 2024 DEPARTMENT: Finance
7) Approval of the March-2025 Check Register in the Amount of $559,751.44 DEPARTMENT: Finance
8) Thirty-Second Amendment to Law Enforcement Services Contract No. 94-797 with the County of San Bernardino to Provide Law Enforcement Services for Fiscal Year 2025- 2026 to the City of Grand Terrace
DEPARTMENT: City Manager
9) Award Contracts for CIP 2025-26
DEPARTMENT: Public Works
10) Amendment No. 2 to Hirsch & Associates to Amended and Restated Agreement DEPARTMENT: Public Works
11) Award Contract for NPDES Support Services
DEPARTMENT: Public Works
12) Professional Services Agreement Amendment No. 1 Between the City of Grand Terrace and Lance, Soll & Lunghard, LLP for Financial Auditing Services DEPARTMENT: Finance
13) Professional Services Agreement Amendment No. 1 Between the City of Grand Terrace and HDL Companies for Business License Auditing and Administration Services DEPARTMENT: Finance
14) Amendment No. 2 to Agreement with EZ Sunnyday for Citywide Landscape Services DEPARTMENT: Public Works
15) Amendment No. 1 to Superior Building Maintenance Contract for Facility Janitorial Services
DEPARTMENT: Public Works
16) Award Contract to Athletic Field Specialist for Richard Rollins Field Maintenance DEPARTMENT: Public Works

Tuesday, May 13, 2025 4
17) 2025-2026 Landscape & Lighting Assessment District 89-1 Public Hearing Intent DEPARTMENT: Public Works
18) 2025-2026 Trash and Sewer Special Assessments: Intent to Levy and Schedule Public Hearing
DEPARTMENT: Public Works
19) Intent to Update Facility Use Fees
RECOMMENDATION: Approve the intent to hold a public hearing on the revised Facility Use Agreement, which includes clarifying applicant responsibilities, implementing a setup and breakdown fee, and restricting rentals to individuals or organizations listed on the original agreement. The public hearing is scheduled for May 27, 2025.

DEPARTMENT: Public Works
20) Approval of a Public Convenience or Necessity for an Off-Sale General (Type 21) Alcoholic Beverage Retail License issued by the California Department of Alcoholic Beverage Control (ABC) for the Applicant, Mr. Ghatas Roumah, for their business the Grand Terrace Market located at 12490 Michigan Avenue, Grand Terrace, CA 92313 (APN 116718111)
DEPARTMENT: Planning & Development Services
21) Zoning Code Amendment (ZCA) 24-04: Second Reading and Adoption of an Ordinance Amending the Grand Terrace Municipal Code Chapter 5.06 (Home Occupation Permits); Chapter 5.40 (Garage Sales); Chapter 5.42 (Integrated Waste Management); Chapter

5.48 (Massage Parlors and Massage Technicians); Chapter 8.108 (Noise); Chapter 8.112 (Fireworks); Chapter 9.05 (Vending on City Sidewalks); Chapter 10.16 (Storage of Vehicles – Intersection Obstruction); Chapter 12.32 (Conduct on Public Property – Parks); Chapter 12.56 (Wireless Telecommunications Facilities in the Public Right-Of-Way); Chapter 15.56 (Water Efficient Landscape); Chapter 18.10 (Residential Districts); Chapter

18.53 (AG Agricultural Overlay District); Chapter 18.56 (AG-2 Agricultural 2 Overlay District); Chapter 18.64 (Objective Design Standards); Chapter 18.80 (Signs); and Chapter

18.82 (Standards for Specified Land Uses and Activities), and a Determination That ZCA 24-04 is Exempt From CEQA Pursuant to CEQA Guidelines Section §15061(b)(3) – Common Sense Exemption.)
DEPARTMENT: Planning & Development Services
22) Authorization to Install Security Gates at City Hall and Public Parks DEPARTMENT: Public Works
E. PUBLIC HEARINGS
23) Public Hearing to Form Community Facilities District No. 2025-1 (Public Maintenance Services)

Tuesday, May 13, 2025 5
RECOMMENDATION:

1. Adopt Resolution No. 2025-XX, forming Community Facilities District (CFD) No. 2025-1.

2. Adopt Resolution No. 2025-XX, calling a special election for CFD No. 2025-1.

3. Adopt Resolution No. 2025-XX, declaring the results of the special election and directing the recording of a Notice of Special Tax Lien for CFD No. 2025-1.

4. Adopt Ordinance No. XXXX, authorizing the levy of a special tax within Community Facilities District No. 2025-1 (Public Maintenance Services) to finance certain services.

DEPARTMENT: Public Works
F. UNFINISHED BUSINESS
G. NEW BUSINESS
24) Introduction and First Reading by Title Only, with Further Reading Waived an Ordinance Amending Section 8.112.180 (Establishment of A No Fireworks Safety Zone) of Title 8 (Health And Safety) of the Grand Terrace Municipal Code RECOMMENDATION: Direct the City Attorney to read by title only, waive reading of, and introduce "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA AMENDING SECTION 8.112.180 (ESTABLISHMENT OF A NO FIREWORKS SAFETY ZONE) OF TITLE 8 (HEALTH AND SAFETY) OF THE GRAND TERRACE MUNICIPAL CODE, WHICH AMENDS THE CITY’S FIREWORKS REGULATIONS"
DEPARTMENT: City Manager
H. FUTURE AGENDA ITEMS
At this time, the City Council may propose items for discussion and/or action at a future duly agendized City Council meeting. A consensus of a majority of the quorum is required to place an item on a future agenda.

I. CITY COUNCIL COMMUNICATIONS
Council Member Matt Brown
Council Member Jeff Allen
Council Member Doug Wilson
Mayor Pro Tem Michelle Sabino
Mayor Bill Hussey
J. CITY MANAGER COMMUNICATIONS

Tuesday, May 13, 2025 6
K. CLOSED SESSION

1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR – GOVERNMENT CODE SECTION 54956.8 Property: Palm & Barton Rd., 22795 Barton Rd., Grand Terrace, CA 92313, APN 0276-202-47 Property Negotiators: Anthony & Angeline Petta Agency Negotiators: Konrad Bolowich, City Manager, and Adrian Guerra, City Attorney Under Negotiation: Price and Terms of Payment

2. CONFERENCE WITH REAL PROPERTY NEGOTIATOR – GOVERNMENT CODE SECTION 54956.8 Property: Palm & Barton Rd., 22795 Barton Rd., Grand Terrace, CA 92313, APN 0276-202-61 Property Negotiators: Anthony & Angeline Petta Agency Negotiators: Konrad Bolowich, City Manager, and Adrian Guerra, City Attorney Under Negotiation: Price and Terms of Payment

3. CONFERENCE WITH REAL PROPERTY NEGOTIATOR – GOVERNMENT CODE SECTION 54956.8 Property: Palm & Barton Rd., 22757 Barton Rd., Grand Terrace, CA 92313, APN 0276-202-31 Property Negotiators: Anthony & Angeline Petta Agency Negotiators: Konrad Bolowich, City Manager, and Adrian Guerra, City Attorney Under Negotiation: Price and Terms of Payment
L. ADJOURN
The next Regular City Council Meeting will be held on May 27, 2025, at 6:00 PM. Any request to have an item placed on a future agenda must be made in writing and submitted to the City Clerk’s office.

CITY OF GRAND TERRACE
City Council
MINUTES ● April 8, 2025
Council Chambers Regular Meeting 6:00 PM
Grand Terrace Civic Center ● 22795 Barton Road
Call to Order
Mayor Bill Hussey convened the Regular Meeting of the City Council for Tuesday, April 8, 2025 at 6:00 PM.

Invocation
The Invocation was given by Pastor Leroy Rodriguez from New City Church.

Pledge of Allegiance
The Pledge of Allegiance was led by Mayor Pro Tem Michelle Sabino.

AB 2449 Disclosures
None.

Roll Call

Present: Mayor Bill Hussey
Mayor Pro Tem Michelle Sabino
Council Member Doug Wilson
Council Member Jeff Allen
Council Member Matt Brown

Absent:

A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA
None.

B. PUBLIC COMMENT
Jason Greeley, Grand Terrace Resident, provided details on the upcoming 41st Annual Art Show on May 3rd and Coffee Connections at Woody's on April 9th.

C. SPECIAL PRESENTATIONS
Scott Ward, Communications Director with the San Bernardino County Board of Supervisors, presented a Plaque of Recognition to Lieutenant Bryan Lane. He thanked him for 30 years of service with the Sheriff's Department and for his commitment to public safety. Scott also wished him a long and happy retirement.

Mayor Bill Hussey and City Council presented a Retirement Recognition plaque to Lieutenant Bryan Lane for 29 years of dedication and service to the City of Grand Terrace.

PUBLIC COMMENT
Johan Gallo, Grand Terrace Resident, expressed his gratitude to Lieutenant Bryan Lane.

Toni Rosales, Field Representative, on behalf of the Office of Assembly Woman Leticia Castillo, would like to thank Lieutenant Bryhan Lane for his 29 years of service to San Bernardino County and the City of Grand Terrace.

Mayor Hussey called a short recess at 6:37 p.m. to close out the special presentation.

Mayor Hussey reconvened the meeting at 6:49 p.m.

D. CONSENT CALENDAR

PUBLIC COMMENT
None.

Council Member Allen motioned with a second by Council Member Brown to approve items #1-6 from the Consent Calendar.
1) Waive Full Reading of Ordinances on Agenda
2) Approval of Minutes - Regular Meeting - March 25, 2025 3) (23) Quitclaim Deed Certificates of Acceptance
4) Parks and Recreation Committee Appointment - Domon
5) Gateway at Grand Terrace Specific Plan EIR Addendum
6) Opposition to AQMD Rule 1111 and Rule 1121
7) Mayor Authority to Sign Letters of Support - Private Entities Consent Item was pulled for discussion by Council Member Allen. Council Member Allen suggested that any future legislation be broad enough so that council members' support or opposition would not be specific to just one piece of legislation. Council Member Matt Brown would like to see this policy amended.

After discussion, Council Member Allen withdrew his motion to approve item #7, and it was suggested that Adrian, City Attorney, bring the item back at a future meeting with the recommendations provided by the City Council.

RECEIVE& FILE

E. PUBLIC HEARINGS
8) CONTINUED PUBLIC HEARING
Zoning Code Amendment (ZCA) 24-04: Introduction and First Reading of an Ordinance Amending the Grand Terrace Municipal Code
Gabriel Arguelles, Assistant Planner, gave the PowerPoint presentation for this item.

Mayor Husssey opened the Public Hearing at 7:26 p.m.

PUBLIC COMMENT
None.

Mayor Husssey closed the Public Hearing at 7:26 p.m.

Adrian Guerra, City Attorney, read the Introduction and First Reading of an Ordinance Amending the Grand Terrace Municipal Code, and also announced that there was a typo in the word "Ordinance" and that it be corrected by staff.

RESULT: APPROVED - UNANIMOUS
MOVER: Council Member Brown
SECONDER: Council Member Allen
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
F. UNFINISHED BUSINESS - NONE
G. NEW BUSINESS - NONE
H. FUTURE AGENDA ITEMS
Council Member Jeff Allen requested that a discussion be held on creating a Special District to support the Parks and Recreation.

RESULT: APPROVED - UNANIMOUS
MOVER: None
SECONDER: Council Member Allen
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None

Council Member Jeff Allen requested that a discussion be held on officially forming a Fire-Wise council in the community.

RESULT: APPROVED - UNANIMOUS
MOVER: None
SECONDER: Council Member Allen
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
Mayor Hussey requested that a discussion be held on what state laws are in place regarding residents having an auto shop or repair shop in their homes and using it as a business.

RESULT: APPROVED - UNANIMOUS
MOVER: None
SECONDER: Council Member Allen
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
Mayor Hussey requested that a discussion be held on increasing the dollar amount of fines that are in place for commercial truck parking violations within the city neighborhoods and city businesses.

RESULT: APPROVED - UNANIMOUS
MOVER: None
SECONDER: Council Member Allen
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
I. CITY COUNCIL COMMUNICATIONS
Council Member Matt Brown reported on the following:

None.

Council Member Jeff Allen reported on the following:
• March 27, 2025 - Attended the Riverside Highland Water Company Board of Directors Meeting
• April 1, 2025 - Attended the Southern California Edison Workshop held at the Senior Center

• April 2, 2025 - Attended the San Bernardino County Office of Homeless Services Central Valley Regional Steering Committee Board Meeting • April 12, 2025 - Announced the Veterans and Community Resource fair at the Rancho Cucamonga Sports Center
• April 17, 2025 - Announced the upcoming Annual Military Appreciation Dinner at the Orange Show
Council Member Doug Wilson reported on the following:
• April 1, 2025 - Attended the Southern California Edison Workshop held at the Senior Center
• Expressed his concerns about noise within the City and relayed his concerns to the Sheriff
Mayor Pro Tem Michelle Sabino reported on the following:
• Announced Earth Day taking place on April 26, 2025
• Announced that she will be traveling to Sacramento for the Cal Cities City Leaders Summit
Mayor Bill Hussey reported on the following:
• April 1, 2025 - Attended the Southern California Edison Workshop held at the Senior Center, and provided an update on the wiring of the circuits in the City • April 9, 2025 - Announced that he will participate in career day at Terrace Hills Middle School
• Provided an update on the new Director of San Bernardino County Transportation Agency, who is Carrie Shindler, upon Dr. Wolfe's retirement • April 3, 2025 - Attended the Southern California Association of Governments Committee meeting
J. CITY MANAGER COMMUNICATIONS
None.

K. CLOSED SESSION - NONE
L. ADJOURN
Mayor Hussey adjourned the Regular Meeting of the City Council at 7:58 p.m. The next Regular City Council Meeting will be held on Tuesday, May 13, 2025, at 6:00 p.m. _______________________________ _______________________________ Bill Hussey, Mayor Daysi Alcocer, City Clerk

AGENDA REPORT
MEETING DATE: May 13, 2025
TITLE: Mayor authority to Sign LOS for Private Entities & Legislative Offices PRESENTED BY: Konrad Bolowich, City Manager
RECOMMENDATION: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA AMENDING SECTION 3.6 OF

CHAPTER III OF THE CITY OF GRAND TERRACE COUNCIL

PROCEDURES SUCH THAT THE MAYOR MAY SIGN LETTERS IN
SUPPORT OF PRIVATE BUSINESS ENTITIES’ AND STATE
LEGISLATIVE OFFICES’ POSITIONS ON LEGISLATION PENDING

BEFORE THE STATE LEGISLATURE OR THE VOTERS
2030 VISION STATEMENT:

This staff report supports Goal Number 3: Developing and Implementing Successful Partnerships.

BACKGROUND:

The Mayor is authorized to respond to requests for support from government agencies such as the League of California Cities, the California Joint Powers Insurance Authority relating to the respective organizations’ position on legislation before the State legislature or the voters by signing a letter in support of the respective organizations’ position on such legislation, on behalf of the City Council, without a formal vote of the City Council. Prior to signing the aforementioned letter of support, the request for support from government agencies shall be distributed to all members of the City Council.

Unless the Mayor or City Manager receives a request from a Council member to place the request for support on a council agenda within seventy-two hours of the aforementioned documents being sent, the Mayor may sign the requested letter of support and cause it to be returned to government agencies.

DISCUSSION:

Private business entities are various business organizations or groups that are not governmentaffiliated and are privately owned, either by an individual or group. From time to time, private business entities send requests to the city in support of its position on certain legislation that is before the State Legislature or before the voters. The City Council wishes to provide a method for a quick response to the aforementioned request for support by authorizing the Mayor to sign letters of support on behalf of the City Council, without the necessity of calendaring the letters on a City Council Agenda for a formal vote.

On April 8, 2025, this item was presented to the City Council, and after discussion, the City Council directed the City Attorney's office to draft language authorizing the Mayor to sign letters of support for legislative offices, and present the item for further Council consideration.

The proposed Guidelines include amended language for Mayor authorization to sign letters of support for private business entities and state legislative offices.

ENVIRONMENTAL IMPACT:

None.

FISCAL IMPACT:

None.

01247.0001 2004962.1 5/9/2025
RESOLUTION NO. 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAND TERRACE, CALIFORNIA AMENDING SECTION 3.6 OF

CHAPTER III OF THE CITY OF GRAND TERRACE COUNCIL

PROCEDURES SUCH THAT THE MAYOR MAY SIGN LETTERS
IN SUPPORT OF PRIVATE BUSINESS ENTITIES’ AND STATE
LEGISLATIVE OFFICES’ POSITIONS ON LEGISLATION

PENDING BEFORE THE STATE LEGISLATURE OR THE
VOTERS
WHEREAS, private business entities are various business organizations or groups that are not government affiliated and are privately owned, either by an individual or group; and,
WHEREAS, from time to time private business entities send requests to the city for support of its position on certain legislation that is before the State Legislature or before the voters; and,
WHEREAS, state legislative offices often propose legislation impacting the City of Grand Terrace, and may require the City to take a position on the legislation before the State Legislature or the voters; and
WHEREAS, the City Council wishes to provide a method for a quick response to the aforementioned request for support by authorizing the Mayor to sign letters of support, on behalf of the City Council, without the necessity of calendaring the letters on a City Council Agenda for a formal vote; and,
WHEREAS, the City Council on August 10, 2006, adopted the City of Grand Terrace Council Procedures, which the Council revised on September 27, 2022, to set forth rules of procedure for the conduct the business of the City Council.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. Section 3.6 of Chapter III of the City of Grand Terrace Council Procedures is hereby amended as follows:

3.6 AUTHORITY TO SIGN LETTERS OF SUPPORT – The Mayor is authorized to respond to requests for support from the League of California Cities, the California Joint Powers Insurance Authority, a legislative office, and various private business entities relating to the respective organizations’ position on legislation before the State legislature or the voters by signing a letter in support on behalf of the City Council, without

01247.0001 2004962.1 5/9/2025
a formal vote of the City Council. Prior to signing the aforementioned letter of support, the request for support from League of California Cities, the California Joint Powers Insurance Authority, a legislative office, and/or private business entity shall be distributed to all members of the City Council. Unless the Mayor or City Manager receives a request from a Council member to place the request for support on a council agenda within seventy-two hours of the aforementioned documents being sent, the Mayor may sign the requested letter of support and cause it to be returned to the League of California Cities, the California Joint Powers Insurance Authority, the legislative office, and/orprivate business entity.

SECTION 2. The City Clerk shall certify to the passage and adoption of this Resolution, and it shall take effect immediately and be in full force and effect.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 13th day of May 2025. ________________________________
Bill Hussey
Mayor
ATTEST:
________________________________
Daysi Alcocer
City Clerk
APPROVED AS TO FORM:
________________________________
Adrian R. Guerra
City Attorney

City of Grand Terrace
Council Procedures
Adopted August 10, 2006
Revised 01/13/2015, 06/25/2019, 05/25/2021, 09/27/2022, and 10/10/23

TABLE OF CONTENTS

MEETINGS

1.1 Regular Meetings...............................................................................................4

1.2 Adjourned Meetings ...........................................................................................4

1.3 Special Meetings................................................................................................4

1.4 Emergency Meetings........................................................................................4

1.5.Closed Sessions-Matters of Discussion ............................................................4

1.6 Closed Session-Report of Action/Statement of Reasons ..................................5

1.7 Quorum ..............................................................................................................5

1.8 Meeting End Time ............................................................................................5

ORDER OF BUSINESS

2.1 Agenda .....................................................................................................................5

2.2 Requests for Future Agenda Items by the Public …..........................................7

2.3 Call to Order…… ...............................................................................................7

2.4 Roll Call..............................................................................................................7

2.5 Absence of City Clerk.........................................................................................7

2.6 Preparation/Approval of Minutes........................................................................8

2.7 Public Hearings..................................................................................................8

2.8 Resolutions...............................................................................................................9

2.9 Ordinances ...............................................................................................................9

2.10 Urgency Ordinances (Emergency....................................................................10

2.11 Consideration of Items not on the City Council Agenda ..................................10

2.12 Adjournment ...........................................................................................................10

III PRESIDING OFFICER

3.1 Presiding Officer.................................................................................................10

3.2 Participation of Presiding Officer........................................................................11

3.3 Question (Motion) to be Stated.........................................................................11

3.4 Signing of Document..........................................................................................11

3.5 Maintenance of Order.......................................................................................11

3.6 Authority to Sign Resolutions of Support..........................................................11

IV RULES, DECORUM, AND ORDER

4.1 Points of Order...................................................................................................11

4.2 Decorum and Order - Council Members............................................................12

4.3 Decorum and Order – Employees .....................................................................12

4.4 Decorum and Order – Public .............................................................................12

4.5 Personal Interest...............................................................................................14

4.6 Limitation of Debate ...........................................................................................14

4.7 Dissent and Protest............................................................................................14

4.8 Procedures and Rule .........................................................................................14

4.9 Sergeant at Arms .............................................................................................14

4.10 Meeting Disruptions........................................................................................14

4.11 Enforcement ...................................................................................................14

V ADDRESSING THE COUNCIL

5.1 Manner of Addressing the Council ....................................................................20

5.2 Time Limitation...................................................................................................21

5.3 Addressing the Council After Motion is Made...................................................21

5.4 Written Communication .....................................................................................21

VI MOTIONS

6.1 General Procedure of Acting on Agenda Items ..............................................21

6.2 Processing of Motions. ......................................................................................22

6.3 Division of Motion ..............................................................................................22

6.4 Order of Motions ................................................................................................22

6.5 Particular Motions, Purpose, and Criteria..........................................................22

VII VOTING

7.1 Voting Procedure ...............................................................................................23

7.2 Voting........................................................................................................................23

7.3 Failure to Vote....................................................................................................23

7.4 Reconsideration .................................................................................................24 VIII ROSENBERG’S RULES OF ORDER .........................................................................25

4 I

MEETINGS
The Ralph M. Brown Act, commencing at Government Code Section 54950 et seq., (“Brown Act”) governs the meetings of the City Council. Except for very limited circumstances, the Brown Act requires that all City Council meetings be conducted in open session.

1.1 REGULAR MEETINGS. The Regular City Council Meetings are held on the second and fourth Tuesday of every month, beginning at 6:00 p.m.

1.2 ADJOURNED MEETINGS. Any regular or adjourned meeting may be adjourned to a time, place, and date certain, but not beyond the next regular meeting.

1.3 SPECIAL MEETINGS. A special meeting may be called at any time by the Presiding Officer of the legislative body of a local agency, or by a majority of the members of the legislative body, by delivering written notice to each member of the legislative body and to each local newspaper of general circulation and radio or television station requesting notice in writing. The notice shall be delivered personally, by fax or e-mail or by any other means and shall be received at least 24-hours before the time of the meeting as specified in the notice. The call and notice shall specify the time and place of the special meeting and the business to be transacted or discussed. No other business shall be considered at these meetings by the legislative body. The written notice may be dispensed with as to any member who at, or prior to, the time the meeting convenes files with the clerk or secretary of the legislative body a written waiver of notice. The waiver may be given by telegram, fax or e-mail. The written notice may also be dispensed with as to any member who is actually present at the meeting at the time it convenes.

The call and notice shall be posted at least 24 hours prior to the special meeting in a location that is freely accessible to members of the public.

1.4 EMERGENCY MEETINGS. In the case of an emergency situation involving matters upon which prompt action is necessary due to the disruption or threatened disruption of public facilities, a legislative body may hold an emergency meeting without complying with either the 24-hour notice requirement or the 24-hour posting requirement of Government Code Section 54956, or both of the notice and posting requirements.

1.5 CLOSED SESSIONS - MATTERS OF DISCUSSION. Any matter proposed to be considered in closed session must appear on the posted agenda unless added on an emergency basis in the same manner as required for items on the open agenda. Closed session item descriptions shall generally comply with Government Code Section 54954.5. Following the conclusion of closed session, any action taken shall be reported in open session if required by Government Code Section 54957.1. All meetings of the Council shall be open to the public; however, the Council may hold Closed Sessions, from which the public may be excluded, for consideration of the following subjects:

5 a. Pending litigation;
b. Threatened or anticipated litigation against the local agency; c. Commencement of litigation;
d. Real estate negotiations;
e. Public Employment; and
f. Labor Negotiations

1.6 CLOSED SESSIONS - REPORT OF ACTION/STATEMENT OF REASONS.

Any matter proposed to be considered in closed session must appear on the posted agenda unless added on an emergency basis in the same manner as required for items on the open agenda. Closed session item descriptions shall generally comply with Government Code Section 554954.5. Following the conclusion of closed session, any action taken shall be reported in open session if required by Government Code Section 54957.1. Prior to, or after, a Closed Session, the Council shall state the general reason, or reasons, for the Closed Session. The Council may consider only those items covered in the statement.

1.7 QUORUM. A majority of the Council (three members) shall be sufficient to conduct business. In the absence of a majority of the Council Members from a regular or adjourned meeting, the City Clerk may declare the meeting adjourned to a stated day and hour.

Motions may be passed by a 2-1 vote if only three Members are present.

However, the following matters require a minimum of three affirmative votes:
a. Ordinances (emergency/urgency ordinances require four affirmative votes); b. Resolutions;
c. Orders for payment of money;
d. Selection of Officers (exclusive of Presiding Officer).

1.8 MEETING END TIME. Except as to matters discussed in closed session in compliance with the Brown Act, City Council meetings shall conclude at 10:00 P.M. If the City Council desires to continue after 10:00 P.M., then a motion may be made to extend the meeting after 10:00 P.M., provided that such a motion shall specify the proposed meeting end time and shall require a second (e.g., “I move to extend the meeting end time to 11:00 P.M.”).

This motion shall require approval of a majority of the City Council members then voting in order to pass.

II

ORDER OF BUSINESS

2.1 AGENDA. The order of business of Council meetings will be listed in the Agenda prepared by the City Clerk. The Council will follow the order of business in the prepared Agenda; items of general, or special, interest may be taken out of order by the Chair or by a majority vote of the Council.

6 a. Consent Calendar. Consent Calendar items are considered by Council to be routine and noncontroversial and will all be enacted by one motion in the form listed. There will be no separate discussion of these items prior to the time the Council votes on the motion to adopt unless members of the Council, Staff, or the public request specific items be removed from the Consent Calendar for separate action. The Check Register will routinely appear on the Consent Calendar.

Any Council Member may request that an item be removed from the Consent Calendar. Removed items will be heard immediately after approval of the remaining items on the Consent Calendar or later in the meeting. If a Council Member removes an item from the Consent Calendar, then he or she shall have the responsibility to make a motion on the item (e.g., a motion to approve, deny, continue, etc.).

No request for funds from the City may be considered on Consent Calendar.
b. Public Comment. This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss, or act on, any item not on the agenda, but may briefly respond to statements made or ask a question for clarification. The Chair may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting.

Public Comment shall be placed on the agenda immediately after conducting Roll Call.
c. Requests for Future Agenda Items by City Council. At this time, the City Council may propose items for discussion and/or action at a future duly agendized City Council meeting. A consensus of a majority of the quorum is required to place an item on a future agenda.
d. Public Comment on Agenda Items. Members of the public will be given an opportunity to address items on the agenda, before action is taken on the items, by filing out a speaker card indicating their desire to speak on a specific agenda item.
e. City Council Communications. This section shall be placed at the end of the Council Agenda, but immediately before the “City Manager Communications” section. This is an opportunity for the Mayor and Council Members to report on their activities and the actions of the Committees

7 upon which they sit and to bring a matter to the attention of the full Council and staff. When a Council Member travels at the City’s expense serving as a representative of the City at a committee meeting or conference, the Council Member must provide an update report on that activity at the next Council meeting. Any matter that was considered during the public hearing portion is not appropriate for discussion in this section of the agenda. NO ACTION CAN BE TAKEN AT THIS TIME.
f. City Manager Communications. This is an opportunity for the City Manager to make any City-related announcements to the Council and members of the public.

2.2 REQUESTS FOR FUTURE AGENDA ITEMS BY THE PUBLIC. Any request to have an item placed on a future agenda must be made in writing and submitted to the City Clerk’s office. The City Clerk will provide copies of the request to Council Members prior to the next Council meeting; however, it is the City Manager's, or majority of Council's, discretion whether to place the item on the next regular Agenda.

2.3 CALL TO ORDER. The meeting of the Council shall be called to order by the Chair or, in his/her absence, the Vice Chair. (See Section 3.1 for absence of Chair and Vice Chair.) In the absence of all Council Members, the City Clerk shall call the meeting to order and declare the same adjourned to a stated day and hour. The meetings will be opened with invocation and the Pledge of Allegiance.

2.4 ROLL CALL. A roll call of Chair and Council Members will be conducted by the City Clerk, who enters the names of those present and those absent in the Minutes.

2.5 ABSENCE OF CITY CLERK. If the City Clerk is absent from a Council meeting, the Deputy City Clerk acts in the Clerk's behalf. If there is no Clerk or Deputy present, the Chair shall appoint a Council Member to serve as City Clerk Pro Tempore (Gov’t Code § 36804).

2.6 PREPARATION/APPROVAL OF MINUTES. It is the City Clerk's responsibility to maintain a record (Minutes) of Council meetings. The Clerk shall have exclusive responsibility for preparation of the Minutes, and any directions for changes in the Minutes may be made only by Council action.

In order to maintain a full and true Minute record, the Minutes shall consist of a clear and concise statement of each and every Council action including motions made and the vote thereon. Items may be included if considered to be particularly relevant or otherwise necessary by the Clerk. Action Minutes will be taken of all City Council meetings (Regular, Special; Emergency) by the City Clerk, or designee. Any Council Member may request a statement be included in the Minutes by indicating "for the record."

8 The Minutes shall also include hyperlinks to allow access to staff reports, attachments and any presentation materials (e.g., PowerPoint presentations) presented to the City Council.

2.7 PUBLIC HEARINGS. It is the policy of the Council to assure that the due process rights of all persons are protected during City hearings. A “quasi-judicial” hearing is a hearing that requires a higher level of procedural due process because of the potential impact on life, liberty or property). Usually, quasi-judicial hearings involve a single parcel of land and apply facts and evidence in the context of existing law.

Findings must be stated to explain the evidentiary basis for the Council’s decision.

The following procedure is suggested for conducting public hearings in which there is an applicant (e.g., land use applications:
a. Chair states the Public Hearing Item.
b. Announcement of any ex parte communications, conflicts of interest, and/or recusals.
c. Staff Presentation and recommendation on the Public Hearing Item. d. Council asks questions of Staff.
e. Open the Public Hearing.

1. Applicant’s presentation on the Public Hearing Item.

2. Council asks questions of the Applicant.

3. Public Testimony in favor and against the Public Hearing Item.

4. Applicant’s rebuttal.
f. Close the Public Hearing.
g. Council deliberates on the Public Hearing item.
h. Council votes.

The following procedure is suggested for conducting public hearing in which there is no applicant (e.g., a City-initiated change to the Development Code):
a. Chair states the Public Hearing Item.
b. Announcement of any ex parte communications, conflicts of interest, and/or recusals.
c. Staff Presentation and recommendation on the Public Hearing Item. d. Council asks questions of Staff.

9 e. Open the Public Hearing to allow public testimony in favor and against the Public Hearing Item.
f. Close the Public Hearing.
g. Council deliberates on the Public Hearing Item.
h. Council votes on the item.

Council Members should also refrain from asking questions or, in any way, interfere with the “public testimony” portion of the Public Hearing section.

2.8 RESOLUTIONS
Resolutions Not Prepared in Advance of a City Council meeting: When a resolution has not been prepared in advance of a City Council meeting, the procedure shall be to instruct the City Attorney to prepare a resolution for presentation at the next Council Meeting.

Urgency Resolutions: In matters of urgency, a resolution may be presented verbally, with specific instructions to the City Attorney and staff for written preparation of the urgency resolution. After the resolution has been verbally stated, the resolution may be adopted by three affirmative votes. Urgency resolutions shall be avoided except when absolutely necessary.

2.9 ORDINANCES
Consent Calendar Agenda Item #1, on the City Council agenda shall waive full reading of all ordinances on the City Council agenda.

Council will approve the introduction, or first reading, of the ordinance, by title only and if approved, the adoption and second reading will be scheduled for the following Council meeting.

The first reading of a proposed ordinance will be placed under the “New Business” or “Public Hearing” sections of the agenda pursuant to applicable law. The second reading of a proposed ordinance will be placed on the Consent Calendar except as otherwise required by applicable law.

With the exception of urgency (emergency) ordinances, no ordinance shall be adopted by the Council on the date of introduction, nor within five days thereafter, nor at any time other than a regular or adjourned regular meeting. An ordinance must be adopted, at its second reading, by at least three affirmative votes, and becomes effective 30 days thereafter (an urgency ordinance requires a minimum of four affirmative votes and becomes effective immediately, Ref: Sec. 2.10).

If an ordinance is altered after first reading, a motion for an amended first reading

10 is required. The ordinance shall not be considered for adoption until five days thereafter. Correction of a typographical or clerical error does not constitute alteration of the ordinance.

2.10 URGENCY ORDINANCES (EMERGENCY). An ordinance which is necessary to go into effect immediately and requires a four-fifths vote to do so. It is required, however, to be on the regular posted City Council agenda.

2.11 CONSIDERATION OF ITEMS NOT ON THE CITY COUNCIL AGENDA. No matters, other than those appearing on the Agenda, will be acted upon by the City Council, except matters which are deemed to be of an emergency nature requiring action prior to the next regular meeting and which arose after the posting of the Agenda. Adding such items requires a four-fifths vote of the City Council.

2.12 ADJOURNMENT. Adjournment of the meeting to the next regular meeting does not require a motion. A motion is required to adjourn a meeting to an adjourned meeting specifying the date, time, and place of said adjourned meeting.

III

PRESIDING OFFICER

3.1 PRESIDING OFFICER. The Chair shall be the Presiding Officer at all meetings of the Council. In the absence of the Chair, the Vice Chair shall preside. In the absence of both the Chair and Vice Chair, the Council shall elect a temporary Presiding Officer to serve until the arrival of the Chair or Vice Chair, or until adjournment.

The terms "Presiding Officer," "Mayor," and "Chair" shall be used interchangeably within this manual.

3.2 PARTICIPATION OF PRESIDING OFFICER. The Presiding Officer is, primarily, responsible for the conduct of the meeting; may move, second, and debate from the Chair, subject only to such limitations of debate as are imposed on all Council Members; and shall not be deprived of any such rights and privileges.

3.3 QUESTION (MOTION) TO BE STATED. The Presiding Officer shall verbally restate each motion immediately prior to calling for the vote. Following the vote, the City Clerk shall announce whether the motion carried or was defeated. In cases where the action of the Council may be unclear for those in the audience, the Chair shall summarize the action of the Council before proceeding to the next item of business.

3.4 SIGNING OF DOCUMENT. Subject to Council policy, the Chair shall sign ordinances, resolutions, and contracts approved by the Council at meetings at which he/she is in attendance. In the event of his/her absence, the Vice Chair

11 shall sign all such documents approved and adopted by Council.

3.5 MAINTENANCE OF ORDER. The Chair is responsible for the maintenance of order and decorum at all times. No person shall be allowed to speak who has not first been recognized by the Chair. All questions and remarks shall be addressed to the Chair.

3.6 AUTHORITY TO SIGN RESOLUTIONS OF SUPPORT. The Mayor is authorized to respond to requests for support by the League of California Cities and, the California Joint Powers Insurance Authority, a legislative office, and various private business entities of itsrelating to the respective organization’s position on legislation before the State legislature or the voters with a signed resolution and/or letterby signing a letter in support , on behalf of the City Council, without a formal vote of the City Council. Prior to signing the aforementioned letter of resolution and/or of support, the request for support from League of California Cities, and/or the California Joint Powers Insurance Authority, a legislative office, and/or private business entity will shall be distributed to all members of the City Council. Unless the Mayor or City Manager receives a request from a Council member to place the request for support on a council agenda within seventy-two hours of the aforementioned documents being sent, the Mayor shall may sign the resolution/letterrequested letter of support and cause it to be returned to the League of California Cities, and/or the California Joint Powers Insurance Authority, the legislative office, and/or private business entity.

IV

RULES, DECORUM, AND ORDER

4.1 POINTS OF ORDER. The Presiding Officer shall determine all Points of Order subject to the right of any Council Member to appeal to the Council. If any appeal is taken, the question shall be in the following form: “Shall the decision of the Presiding Officer be sustained?" In this event, a majority vote shall govern and conclusively determine such question of order.

12 4.2 DECORUM AND ORDER – COUNCIL MEMBERS

1. Every Council Member desiring to speak shall address the Presiding Officer and, upon recognition by the Presiding Officer, shall confine himself/herself to the question under debate.

2. Every Council Member desiring to question the administrative staff shall address questions to the City Manager or City Attorney, who shall be entitled to either answer the inquiry or designate a member of staff for that purpose.

3. A Council Member who is recognized to speak by the Presiding Officer shall not be interrupted except in the following circumstances: (i) a point of order is raised by another Council Member; or (ii) the recognized Council Member yields to questions from another Council Member.

4. A Council Member who is called to order while speaking shall cease speaking until the question of order is determined. If ruled to be not in order, the Council Member shall remain silent or shall alter the remarks so as to comply with rules of the Council.

5. The Chair and Council Members shall accord the utmost courtesy to each other, to City employees, and to the public appearing before the Council and shall refrain at all times from rude and derogatory remarks, reflections as to integrity, abusive comments, and statements as to motives and personalities.

6. Any Council Member may move to require the Chair to enforce the rules, and the affirmative vote of a majority of the Council shall require the Chair to so act.

4.3 DECORUM AND ORDER – EMPLOYEES. Members of the Administrative staff and employees of the City shall observe the same rules of procedure and decorum applicable to members of the Council. The City Manager shall ensure that all City Employees observe such decorum.

Any Staff member, including the City Manager, desiring to address the Council shall first be recognized by the Chair. All remarks shall be addressed to the Chair, and not to anyone individual Council Member or public member.

4.4 DECORUM AND ORDER – PUBLIC. The City Council, elected by the public, must be free to discuss issues confronting the City in an orderly environment. a. Any member of the public who engages in disorderly behavior that actually disrupts, disturbs or otherwise impedes the orderly conduct of any City Council meeting shall, upon an order by the Presiding Officer or a majority of the City Council, be barred from further audience before the City Council during that meeting, pursuant to the provisions of subsection (c), below. b. Disorderly behavior under subsection (a) may include, but is not limited to, the following:

13 1. Speaking without being recognized by the Presiding Officer.

2. Continuing to speak after the allotted time has expired.

3. Speaking on an item at a time not designated for discussion by the public of that item.

4. Throwing objects.

5. Clapping, booing, or making any other noises that disrupt the meeting.

6. Speaking on an issue that is not within the jurisdiction of the City Council.

7. Attempting to engage the audience rather than the City Council.

8. Refusing to modify conduct after being advised by the Presiding Officer that the conduct is disrupting the meeting or disobeying any other lawful order of the Presiding Officer or a majority of the City Council c. Enforcement. The rules of conduct while addressing the City Council set forth above shall be enforced in the following manner:

1. Call to order and warning to desist. Whenever practicable, the Presiding Officer or a majority of the City Council shall give a warning to the person who is breaching the rules of conduct to be orderly and to comply with the rules of conduct hereunder. Such a warning shall articulate the rule of conduct being violated and the manner in which the person must comply.

A warning shall not be necessary when it would not be effective under the circumstances, including when, but not limited to, the disturbance is such that the warning cannot be heard above the noise, or the conduct of the person or persons constitutes an immediate threat to public safety, such as the throwing of objects or specific threats of harm and the apparent, present ability to carry out such threats. A warning shall also not be necessary when an individual violates the rules of conduct more than once during a Council meeting, or continuously violates the rules of conduct Council meeting after Council meeting.

2. Order barring person from meeting. A person who engages in disorderly behavior shall be barred from the remainder of that council meeting by the Presiding Officer or a majority of the City Council when that person:
(i) continues the disorderly behavior after receiving a warning pursuant to subsection (c)(1); (ii) ceases the disorderly behavior upon receiving a warning pursuant to subsection (c)(1), but later in the same council meeting resumes such disorderly behavior; or (iii) engages in disorderly behavior and no warning is practicable under the circumstances, pursuant to subsection (c)(1).

The continuation of disorderly behavior after receiving a warning, repeated disorderly behavior during a Council meeting, disorderly behavior at Council meeting after Council meeting, or disorderly behavior that is so significant that a warning cannot be given,

14 constitutes the type of behavior that actually disrupts, disturbs or otherwise impedes the orderly conduct of a City Council meeting.

3. Removal. If the person barred from the meeting does not voluntarily remove him/herself upon being instructed to do so by the Presiding Officer or a majority of the City Council, the Presiding Officer or the majority of the City Council may direct the sergeant-at-arms to remove that person from the Council Chamber.

4.5 PERSONAL INTEREST - No Council Members prevented from voting by legal conflict of interest shall remain at the Council dais during the debate and vote on any such matter. In the event of such conflict, the Council Members shall state for the record the basis for the conflict of interest and leave the Council dais prior to the commencement of discussion of the issue.

4.6 LIMITATION OF DEBATE - No Council Member shall be allowed to speak more than once upon anyone subject until every other Council Member choosing to speak has spoken. Merely asking a question or making a suggestion is not considered as speaking.

4.7 DISSENT AND PROTEST - Any Council Member shall have the right to express dissent from, or protest to, any action of the Council and request that the reason be entered into the Minutes.

4.8 PROCEDURES AND RULES - In a rule to govern a point of procedure, Rosenberg’s Rules of Order shall govern, unless there is a conflict between the rules set forth herein in Sections 1.1 through 7.4, at which point Sections 1.1 through 7.4 shall govern.

4.9 SERGEANT AT ARMS – The assigned Deputy of the San Bernardino County Sheriff’s Department who attends the City Council Meeting is designated the Sergeant of Arms.

4.10 MEETING DISRUPTIONS – In the event that there is a disruption that results in the Council not being able to conduct its business, the Chair may immediately recess the meeting for a defined period of time. In the event that the disruption continues in a manner that prevents the Council from conducting its business after reconvening, then the Chair may order the Sergeant-at-Arms to remove the disruptive members of the public from the Council Chambers.

4.11 ENFORCEMENT – In order for the public to maintain a reasonable modicum of reliance upon the rules and regulations of a civil administration whose purpose it is to provide necessary services and protect the freedom of the governed, it is necessary for elected and appointed representatives to conduct the public business in accordance with established oaths, protocols, standards, policies, rules, resolutions, and laws. While ordered discussion and debate is a necessary product of communication between the public and their representatives to ensure

15 the needs of the community are properly served, no real purpose may be served in an atmosphere of chaos. Therefore, the violation of civil administration, albeit the nature of which is largely self-enforced, must carry certain consequences to remind parties that disorder contravenes progress and the fruit that proper behavioral procedure yields.
a. For the purposes of this Section 4.11, the following definitions apply unless context dictates otherwise:
“Legislative Body” shall mean the City Council, its boards, commissions, and committees as applicable.
“Member” shall mean a member of the Legislative Body as applicable. b. Oath of Office
Tradition dictates the espousal of certain conventions that bear historical and moral significance in the hearts of generations. Oaths are intended to impress upon the mind of the swearer a sense of gravity appurtenant to vesting oneself in selfless service for the benefit of others. The following Oath of Office is consistent with that provided under Article XX of the California Constitution and is in similar form to that which has been voiced since the First United States Congress of 1789, and fulfills the spirit of Article VI of the United States Constitution and the Judiciary Act of 1789. “I, ___________, do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter, so help me God.”
The phrase “so help me God” in the above shall be optional. Failure to state the phrase “so help me God” shall not affect an individual’s ability to hold office. c. Acceptable Code of Conduct
Incident to the Oath of Office is an Acceptable Code of Conduct, because to simply swear to defend is insufficient. A Member cannot be responsible for that which he or she is not aware. Cohesive conduct and order among Members are necessary elements of parliamentary procedure when conducting public business. When conducting business under color of authority, or representing their Legislative Body in general, Members shall comply with the Acceptable Code of Conduct which requires Members to do the following:

1. Read and examine the agenda, agenda packet materials, appurtenant reference documents, and exhibits in preparation for the public

16 meeting.

2. Respect the order of the agenda and meeting format.

3. Perform to the best of my ability to represent the interests of his or her constituents.

4. Maintain an impartial and open mind throughout the process.

5. Recuse himself or herself in the event of conflicts of interest.

6. Contribute his or her best effort to maintain order and foster trust.

7. Speak in restrained tones to encourage civility.

8. Address a topic only when granted the floor by the Chair.

9. Restrict his or her comments to the subject at hand.

10. Avoid discussion on topics that have not been noticed on the agenda.

11. Exercise common courtesy and decorum when dealing with fellow Members, City staff, and the general public.

12. Avoid bullying, pursing personal attacks, engaging in character assassination, or indulging in verbal insults against his or her colleagues, staff or the public.

13. Support freedom of expression that is absent disruptive intent.

14. Attend all necessary meetings and workshops.

15. Provide proper advance notice in the event of an emergency that might affect his or her ability to attend meetings.

16. Foster participation in the process, facilitate discussion, and promote good decision making.

17. Form a basic understanding of correct parliamentary procedure and operate subject to the premise that the majority rules.

18. Proceed efficiently, fairly, and effectively.

19. Respect the chain of authority and refuse to circumvent the City Manager.

20. Comply with all laws, including the laws of the City of Grand Terrace.

17 d. Censure of Legislative Body Members

1. General
A violation of any condition of office as specified within the Oath of Office, the Acceptable Code of Conduct, or established protocols, standards, policies, rules, resolutions, and laws, by any sitting Member, shall constitute grounds for progressively stronger admonishment, ultimately leading to public censure by the City Council.

However, it should be noted that the aim of admonishment is not punitive. The aim of admonishment is to enable good people to pause and reflect. Therefore, a Member may not be made the subject of a motion for censure vote without first being given notice of the violation and an opportunity to correct the violation, if it can reasonably be corrected. For the purposes of participation in local governance, one must assume the best in each other, and a common foundation constitutes the best path to civil and productive discourse. In order to model unity, as well as civility, Members should treat each other and members of the public with dignity and respect.

2. Who May file a Statement of Charges
A sitting City Council member may initiate corrective action regarding the behavior of a fellow sitting City Council member by initiating the censure process described in this Section 4.11.

Furthermore, a sitting City Council member may initiate corrective action by the censure process described in this Section 4.11 against any sitting member of any City board, commission, or committee. For example, a sitting City Council member may initiate corrective action against a sitting member of the City’s Planning Commission/Site and Architectural Review Board. However, members of City boards, commissions, or committees may not initiate any corrective action pursuant to this Section X against any City Council members, because such boards, commission, and committees are subordinate to the City Council.

3. Censure Procedure
Procedures. Censure of a Member shall proceed as follows:
(i) Opportunity to Correct. To initiate the process, a charging Member shall first provide a charged Member notice of the alleged violation. The charged Member shall be provided an opportunity to correct such alleged violation, if it can reasonably be corrected.
(ii) Statement of Charges. If the charged Member does not correct the alleged violation, then a Statement of Charges shall be prepared and delivered by the charging Member to the charged

18 Member, with a conformed copy delivered concurrently to the City Clerk and other Members. The charging Member shall also concurrently provide a proof of service of the Statement of Charges to the charged Member, the City Clerk, and other Members. In the case of a City Council member delivering a Statement of Charges to a Member of a City board, commission, or committee, then such Statement of Charges and proof of service shall be delivered to the charged Member, the City Clerk, other City Council members, and other members of the relevant board, commission, or committee. A proper Statement of Charges shall be served as provided above a minimum of 10 days prior to the meeting when the motion for censure shall be made, and shall include:

A. The specifics of the violation (including the rule,
regulation, law, etc. that was violated), and
B. A statement of the date, place, and time of the
occurrence, and
C. A description of the unsatisfactory behavior.
(iii) Response to Statement of Charges. The charged Member may respond to the Statement of Charges in writing within seven (7) days after delivery of the Statement of Charges by delivering it to the charging Member, with a conformed copy delivered concurrently to the City Clerk and other Members. The charged Member shall also concurrently provide a proof of service of the Response to Statement of Charges to the charging Member, City Clerk and other Members. In the case of a City Council member delivering a Statement of Charges to a Member of a City board, commission, or committee, then such response and proof of service shall be delivered to the charging Member, the City Clerk, other City Council members, and other members of the relevant board, commission, or committee. The charged Member may also choose to defer a written response in favor of a verbal response at the hearing on the motion for censure.

Nothing herein shall prevent a charged Member to respond both in writing and at the hearing on the motion for censure. (iv) Hearing of Motion for Censure. The motion for censure shall be heard at the first regular meeting of the City Council ten (10) days after the Statement of Charges is served upon the charged Member and City Clerk. A continuance is allowed only if any City Council member is absent. The hearing shall adhere to the following the general process:

A The Chair (or, if absent or is the charged Member, then

19 the Vice Chair) shall conduct the hearing in open session.

B The charging Member shall read the Statement of
Charges and may present witnesses and evidence.

C The charged Member may rebut and may present
witnesses and evidence.

D Members of the public may comment on the Statement
of Charges and any witnesses and evidence presented.

E The remaining City Council members may
address/comment on the charges.

F A motion for censure may be made.

G The City Council deliberates on the motion for censure and votes on the same.

Motion for Censure - Consideration and Passage. Motion for censure passage requires a majority vote of the City Council in open session. If the Statement of Charges includes multiple charges, then the City Council may consider and vote upon each charge individually. If the motion for censure or a particular charge fails to obtain a majority vote, no new motion on the same grounds may be commenced against the same Member for a period of one (1) year.

If the motion for censure passes, then the motion for censure and Statement of Charges shall become a part of the public record and record of proceedings. The motion for censure and Statement of Charges shall be disclosable pursuant to the California Public Records Act.

Request for Defense or Indemnification. When evaluating a request for defense or indemnification made by a censured Member in litigation arising from the censured conduct, the record of the censure shall be considered by the City Council, but shall not be determinative. Failure of the City Council to censure the conduct of a Member does not constitute waiver of the City Council’s right to refuse to indemnify or defend the Member in an action.

4. Grounds for Censure
The basis for a motion of censure under this Section 4.11 may include, but are not limited to, the following acts by a Member:
(i) Serial unexcused absences of three or more from his or her regular Legislative Body meetings.
(ii) Violating laws and regulations relating to conflicts of interest.

20 (iii) Actions taken against established Legislative Body policy or the Grand Terrace 2030 Vision (as may be amended).
(iv) Harassment.
(v) Creating a hostile work environment.
(vi) Any violation of federal, State, or local laws, rules, regulations, or ordinances, including applicable laws relating to conflict of interest and any City laws, rules, regulations, or ordinances. (vii) Violation of the Acceptable Code of Conduct or the Oath of Office.
e. Removal from Office

1. City Council
While City Council members may censure one another as provided above, the City Council may not remove a sitting Council Member from office. State law provides the sole mechanisms for removal from office for City Council members.

These include:
(i) A Recall Petition submitted by members of the public pursuant to Cal Const. Art II, §19 and Elections Code Sections 11000- 11386.
(ii) The seat becomes vacant pursuant to Government Code Section 1770.
(iii) Quo Warranto proceedings pursuant to Code of Civil Procedure Section 803 brought or authorized by the Attorney General to challenge the right to hold a particular office (this can work in tandem with Government Code Section 1770).
(iv) Removal proceedings pursuant to Government Code Section 3060 for certain kinds of misconduct (initiated by grand jury/district attorney).

2. Appointed Members of City Boards, Commissions, and Committees Members of City boards, commissions, and committees who are appointed by the City Council serve at the pleasure of the City Council and may be removed at any time, with or without cause, by the City Council. Without limitation, the City Council may use any of the Grounds for Censure (including violations of the Acceptable Code of Conduct) set forth above as a basis for removal with cause.

V

21 ADDRESSING THE COUNCIL

5.1 MANNER OF ADDRESSING THE COUNCIL - Any person desiring to address the Council shall fill out a request to speak form and wait to be recognized by the Chair, and after being recognized shall proceed to the podium, or microphone.

Such persons are requested to state for the record his or her name and address.

Remarks are to be limited to the subject under discussion.

5.2 TIME LIMITATION - Any public member addressing the Council shall limit his or her address to three (3) minutes. The Chair or a Council Member may move to extend the time limitation which shall be extended upon a majority vote of the Council. When any group of persons wishes to address the Council on the same subject matter, it shall be proper for the Chair to request that a spokesperson be chosen to represent the group, so as to avoid unnecessary repetition. A speaker may not yield time to another speaker.

5.3 ADDRESSING THE COUNCIL AFTER MOTION IS MADE - After a motion has been made, no person shall address the Council without securing permission by a majority consensus of the Council.

5.4 WRITTEN COMMUNICATION - Unless specifically requested otherwise, the City Manager is authorized to receive and open all mail addressed to the City Council and take any immediate administrative action required between Council meetings, which does not require specific Council action. Any communication requiring Council action will be reported to the Council at the next possible meeting, together with a report and recommendation of the City Manager.

VI

MOTIONS

6.1 GENERAL PROCEDURE OF ACTING ON AGENDA ITEMS – The following procedure is suggested for Council’s consideration non-Public Hearing Agenda Items:
a. Chair states the Item to be considered.
b. Announcement of any ex parte communications, conflicts of interest, and/or recusals.
c. Staff Presentation and recommendation on the Item.
d. Council asks questions/clarifications of Staff.
e. Open Public Comments for the Item.

22 f. Close Public Comments for the Item.
g. At Council’s direction, City Manager and/or Staff respond to any questions from Public Comment.
h. Chair asks, “Do I have a motion?”
i. If a motion is made, Chair asks “Do I have a second?” j. If there is a motion and a second, then Council proceeds with deliberation.
k. After deliberation, the Council votes on the item.

6.2 PROCESSING OF MOTIONS - When a motion is made and seconded, it shall be restated by the Presiding Officer before debate. A motion shall not be withdrawn by the mover without the consent of the Council Member seconding it and the approval of Council.

6.3 DIVISION OF MOTION - If a motion contains two or more divisible propositions, the Chair may, and upon request of a Council Member shall (unless appealed by another Council Member), divide the motion.

6.4 ORDER OF MOTIONS - When multiple motions are before the body, the last motion is voted on first.

Non-Debatable Motions:
a. Adjourn,
b. Recess
c. Fix the time to adjourn
Super Majority Votes: (2/3 vote required)
a. Limit debate
b. Close nominations
c. Object to the consideration of an item
d. Suspend the rules
e. Reconsider – (A member of the majority of the previous vote must motion at the same or next meeting.)

6.5 PARTICULAR MOTIONS, PURPOSE, AND CRITERIA

1. Motion to Adjourn:

Purpose - To terminate a meeting.

Debatable or Amendable - No, except a motion to adjourn to another time is debatable and amendable as to the time to which the meeting is to be

23 2. Motion to Refer to Commission, Committee, or Staff:

Purpose - To refer the question before the Council to a commission, committee, or to the City Staff for the purpose of investigating or studying the proposal and to make a report back to the Council.

If the motion fails, discussion or vote on the question resumes.

Debatable or Amendable -Yes.

3. Motion to Amend:

Purpose - To modify or change a motion that is being considered by the Council so it will express more satisfactorily the will of the members. If there are two amendments, the second amendment is voted upon first if it carries, it automatically cancels the first amendment, and the vote is taken on the amended motion. An amendment motion relating to a different matter shall not be in order.

Debatable or Amendable - Yes.

4. Postpone Indefinitely:

Purpose - To prevent further discussion and voting on the main motion. If the motion fails, discussion and voting on the main motion resumes. If it passes, the subject of main motion shall not be brought up again for the remainder of the meeting.

Debatable or Amendable - It is debatable but not amendable.

5. Main Motion:

Purpose - The primary proposal or question before the Council for discussion and decision. Debatable or Amendable - Yes.

VII
VOTING

7.1 VOTING PROCEDURE - Motions will be adopted by either electronic voting system, voice or roll call vote. The results of the vote shall be entered in full in the minutes.

7.2 VOTING - Every ordinance, resolution, and payment of money requires three affirmative votes. Emergency ordinances require four affirmative votes. Unless otherwise required by law, all other actions of the Council require a majority vote of the Council Members present.

7.3 FAILURE TO VOTE - Every Council Member should vote unless disqualified for a personal conflict of interest.

24 Self-disqualification, without cause, which results in a tie vote shall be avoided; but no Council Member shall be forced to vote. A Council Member who abstains shall, in effect, consent that a majority of the quorum may act for him or her. Tie votes shall be lost motions and may be reconsidered.

7.4 RECONSIDERATION - After motion and vote by the Council, such action may be reconsidered or rescinded only in the following manner:

Reconsideration:

A motion to set aside a vote (to reconsider) on a main motion shall always be in order at the same meeting or at the next regular Council meeting following the action. The motion can be made by any Council Member who voted affirmatively on the matter. If the motion to reconsider passes, the effect thereof is to overrule and cancel the prior action and rehear the original subject.

Lost Motion:

A lost motion is one that fails to receive the necessary number of votes to carry.

Tie votes result in a lost motion. A tie vote which has resulted from there being present less than a full Council shall be automatically reconsidered at the next Council meeting at which all members are present. Lost motions may be renewed at any subsequent Council meeting. To revive a lost motion at the same meeting, the proper action is a motion to reconsider (discussed above).

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Rosenberg’s Rules of Order
REVISED 2011
Simple Rules of Parliamentary Procedure for the 21st Century By Judge DaveRosenberg
VIII

ROSENBERG'S RULES OF ORDER

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2 Introduction
The rules of procedure atmeetingsshould be simple enough for most people to understand. Unfortunately, that has not always been the case. Virtually all clubs, associations, boards, councils and bodies followa set ofrules—Robert’sRules ofOrder—which are embodied in a small, but complex, book. Virtually no one I know has actually read this book cover to cover. Worse yet, the book was written for another time and for another purpose. If one is chairing or running a parliament, then Robert’s Rules of Order is a dandy and quite useful handbook for procedure in that complex setting. On the other hand, if one is running a meeting of say, a five-member body with a few members of the public in attendance, a simplified version of the rules of parliamentary procedure is in order.

Hence, the birth of Rosenberg’s Rules of Order.

What follows is my version of the rules of parliamentary procedure, based on my decades of experience chairing meetings in state and local government. These rules have been simplified for the smaller bodieswe chair orinwhichwe participate,slimmed down forthe 21st Century, yet retaining the basic tenets of order to which we have grown accustomed. Interestingly enough, Rosenberg’s Rules has found a welcoming audience. Hundreds of cities, counties, special districts, committees, boards, commissions, neighborhood associations and private corporations and companies have adopted Rosenberg’s Rules in lieuofRobert’sRulesbecause theyhavefoundthempractical, logical, simple, easy to learn and user friendly.

This treatise on modern parliamentary procedure is built on a foundation supported by the following four pillars:

1. Rulesshould establish order.The first purpose ofrules of parliamentary procedure is to establish a framework for the orderly conduct of meetings.

2. Rulesshould be clear. Simple ruleslead towider understanding and participation.Complex rules create two classes:those who understand and participate; and those who do not fully understand and do not fully participate.

3. Rulesshould be user friendly.Thatis,the rulesmust be simple enough that the public is invited into the body and feels that it has participated in the process.

4. Rules should enforce the will of the majority while protecting the rights of the minority. The ultimate purpose of rules of procedure is to encourage discussion and to facilitate decision making by the body. In a democracy, majority rules. The rules must enable the majority to express itself and fashion a result, while permitting the minority to also express itself, but not dominate,while fully participating in the process.

Establishing a Quorum
The starting point for a meeting is the establishment of a quorum.

A quorum is defined as the minimum number of members of the body who must be present at a meeting for business to be legally transacted. The default rule is that a quorum is one more than half the body. For example, in a five-member body a quorum is three.

When the body has three members present, it can legally transact business.If the body has less than a quorum of members present, it cannot legally transact business.And even if the body has a quorum to begin the meeting, the body can lose the quorum during the meeting when a member departs (or even when a member leaves the dais). When that occurs, the body loses its ability to transact business until and unless a quorum is reestablished.

Thedefaultrule,identifiedabove,however,givesway toa specific rule of the body that establishes a quorum. For example, the rules of a particular five-member body may indicate that a quorum is four members for that particular body. The body must follow the rules it has established for its quorum.In the absence of such a specific rule, the quorum is one more than half the members of the body.

The Role of the Chair
While allmembers ofthe body should knowand understand the rules of parliamentary procedure, it isthe chair of the body who is charged with applying the rules of conduct of the meeting. The chair should be well versed in those rules. For all intents and purposes, the chair makes the final ruling on the rules every time the chair states an action. In fact, all decisions by the chair are final unless overruled by the body itself.

Since the chair runs the conduct of the meeting, it is usual courtesy forthe chairto play a less active role in the debate and discussion than othermembers of the body.This does not mean that the chair should not participate in the debate or discussion. To the contrary, as a member of the body, the chair has the full right to participate in the debate, discussion and decision-making of the body. What the chair should do, however, is strive to be the last to speak at the discussion and debate stage. The chair should not make or second a motion unless the chair is convinced that no other member of the body will do so at that point in time.

The Basic Format for an Agenda Item Discussion
Formal meetings normally have a written, often published agenda.

Informal meetings may have only an oral or understood agenda. In either case, the meeting is governed by the agenda and the agenda constitutes the body’s agreed-upon roadmap for the meeting. Each agenda item can be handled by the chair in the following basic format:

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First, the chairshould clearly announce the agenda item number and should clearly state what the agenda item subject is. The chair should then announce the format (which follows) that will be followed in considering the agenda item.

Second, following that agenda format, the chair should invite the appropriate person or persons to report on the item, including any recommendation that they might have. The appropriate person or persons may be the chair, a member of the body, a staff person, or a committee chair charged with providing input on the agenda item.

Third, the chair should ask members of the body if they have any technical questions of clarification. At this point, members of the body may ask clarifying questions to the person or persons who reported on the item, and that person or personsshould be given time to respond.

Fourth, the chairshould invite public comments, or if appropriate at a formal meeting,should open the public meeting for public input.

If numerousmembersofthe public indicate a desire tospeak to the subject, the chair may limit the time of public speakers.At the conclusion of the public comments, the chair should announce that public input has concluded (or the public hearing, as the case may be, is closed).

Fifth, the chair should invite a motion. The chair should announce the name of the member of the bodywho makesthe motion.

Sixth, the chair should determine if any member of the body wishes to second the motion. The chair should announce the name of the member of the body who seconds the motion. It is normally good practice for amotion to require a second before proceeding to ensure that it is not just one member of the body who is interested in a particular approach. However, a second is not an absolute requirement, and the chair can proceed with consideration and vote on a motion even when there is no second. This is a matter left to the discretion of the chair.

Seventh, if the motion is made and seconded,the chairshould make sure everyone understandsthe motion.

Thisis done in one of threeways:

1. The chair can ask the maker of the motion to repeat it;

2. The chair can repeat the motion; or

3. The chair can ask the secretary or the clerk of the body to repeat the motion.

Eighth, the chair should now invite discussion of the motion by the body. If there is no desired discussion, or after the discussion has ended, the chair should announce that the body will vote on the motion.If there has been no discussion or very brief discussion, then the vote on the motion should proceed immediately and there is no need to repeat the motion. If there has been substantial discussion, then itis normally besttomake sure everyone understandsthe motion by repeating it.

Ninth, the chair takes a vote. Simply asking for the “ayes” and then asking for the “nays” normally does this. If members of the body do not vote, then they “abstain.” Unless the rules of the body provide otherwise (or unless a super majority isrequired as delineated later in these rules), then a simple majority (as defined in law or the rules of the body as delineated later in these rules) determines whether the motion passes oris defeated.

Tenth, the chair should announce the result of the vote and what action (if any) the body has taken. In announcing the result, the chair should indicate the names of the members of the body, if any, who voted in the minority on the motion. This announcement might take the following form: “The motion passes by a vote of 3-2, with Smith and Jones dissenting. We have passed the motion requiring a 10-day notice for all futuremeetings of this body.”
Motions in General
Motions are the vehicles for decision making by a body.It is usually best to have a motion before the body prior to commencing discussion of an agenda item.This helpsthe body focus.

Motions are made in a simple two-step process. First, the chair should recognize the member of the body. Second, the member of the body makes a motion by preceding the member’s desired approachwith thewords“Imove…”
A typical motion might be: “I move that we give a 10-day notice in the future for all our meetings.”
The chair usually initiatesthe motion in one of three ways:

1. Inviting the members of the body to make a motion, for example, “A motion at this time would be in order.”

2. Suggesting a motion to the members of the body, “A motion would be in order that we give a 10-day notice in the future for all our meetings.”

3. Making the motion. As noted, the chair has every right as a member of the body to make a motion, but should normally do so only if the chair wishes to make a motion on an item but is convinced that no other member of the body is willing to step forward to do so at a particular time.

The Three Basic Motions
There are three motions that are the most common and recur often at meetings:

The basic motion. The basic motion isthe one that putsforward a decision for the body’s consideration. A basic motion might be: “I move that we create a five-member committee to plan and put on our annual fundraiser.”

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The motion to amend. If a member wants to change a basic motion that is before the body,they would move to amend it.A motion to amend might be: “I move that we amend the motion to have a 10-member committee.” A motion to amend takes the basic motion that is before the body and seeksto change it in someway.

The substitute motion. If a member wants to completely do away with the basic motion that is before the body, and put a new motion before the body, they would move a substitute motion. A substitute motion might be: “I move a substitute motion that we cancel the annual fundraiser this year.”
“Motionsto amend” and “substitute motions”are often confused, but they are quite different, and their effect(if passed) is quite different. A motion to amend seeks to retain the basic motion on the floor, but modify it in some way. A substitute motion seeks to throw out the basic motion on the floor, and substitute a new and different motion for it. The decision as to whether a motion is really a “motion to amend” or a “substitute motion” is left to the chair. So if a member makes what that member calls a “motion to amend,” but the chair determines that it is really a “substitute motion,” then the chair’s designationgoverns.

A “friendly amendment” is a practical parliamentary tool that is simple, informal,savestime and avoids bogging a meeting down with numerous formal motions. It works in the following way: In the discussion on a pending motion, it may appear that a change to the motion is desirable or may win support for the motion from some members. When that happens, a member who has the floor may simply say, “I want to suggest a friendly amendment to the motion.” The member suggests the friendly amendment, and if the maker and the personwho seconded themotionpendingon the floor accepts the friendly amendment, that now becomes the pending motion on the floor. If either the maker or the person who seconded rejects the proposed friendly amendment, then the proposer can formally move to amend.

Multiple Motions Before the Body
There can be up to three motions on the floor at the same time.

The chair can reject a fourthmotion until the chair has dealt with the three that are on the floor and has resolved them. This rule has practical value. More than three motions on the floor at any given time is confusing and unwieldy for almost everyone, including the chair.

When there are two or three motions on the floor (after motions and seconds) at the same time, the vote should proceed first on the last motion that is made. For example, assume the first motion is a basic “motion to have a five-member committee to plan and put on our annual fundraiser.” During the discussion of this motion, a member mightmake a secondmotion to“amend themainmotion to have a 10- member committee, not a five-member committee to plan and put on our annual fundraiser.” And perhaps, during that discussion, a member makes yet a third motion as a “substitute motion that we not have an annual fundraiser this year.” The proper procedure would be asfollows:

First, the chair would deal with the third (the last) motion on the floor, the substitute motion. After discussion and debate, a vote would be taken first on the third motion. If the substitute motion passed, it would be a substitute for the basic motion and would eliminate it. The first motion would be moot, as would the second motion (which sought to amend the first motion), and the action on the agenda item would be completed on the passage by the body of the third motion (the substitute motion). No vote would be taken on the first orsecond motions.

Second, ifthe substitutemotion failed,the chairwould then deal with the second (nowthe last)motion on the floor,themotion to amend.The discussion and debatewould focusstrictly on the amendment (should the committee be five or 10 members). If the motion to amend passed, the chair would then move to consider the main motion (the first motion) as amended. If the motion to amend failed, the chair would then move to consider the main motion (the first motion) in its original format, not amended.

Third, the chair would nowdeal with the first motion that was placed on the floor.The original motionwould either be in its original format (five-member committee), or if amended, would be in its amended format (10-member committee). The question on the floor for discussion and decision would be whether a committee should plan and put on the annual fundraiser.

To Debate or Not to Debate
The basic rule of motions is that they are subject to discussion and debate.Accordingly, basic motions, motions to amend, and substitute motions are all eligible, each in their turn, for full discussion before and by the body. The debate can continue as long as members of the body wish to discuss an item, subject to the decision of the chair that it is time to move on and take action.

There are exceptions to the general rule of free and open debate on motions. The exceptions all apply when there is a desire of the body to move on. The following motions are not debatable (that is,when the following motions are made and seconded,the chair must immediately call for a vote of the body without debate on the motion):

Motion to adjourn.Thismotion, if passed,requiresthe body to immediately adjourn to its next regularly scheduled meeting. It requires a simple majority vote.

Motion to recess. This motion, if passed, requires the body to immediately take a recess. Normally, the chair determines the length of the recess which may be a few minutes or an hour. It requires a simple majority vote.

Motion to fix the time to adjourn. This motion, if passed,requires the body toadjourn themeeting atthe specific time setin the motion.

For example,the motion might be:“I movewe adjourn this meeting at midnight.” It requires a simple majority vote.

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Motion to table. This motion, if passed, requires discussion of the agenda item to be halted and the agenda item to be placed on “hold.” The motion can contain a specific time in which the item can come back to the body.“I move we table this item until our regular meeting inOctober.”Orthemotion can contain no specific time forthe return of the item, in which case a motion to take the item off the table and bring it back to the body will have to be taken at a future meeting. A motion to table an item (or to bring it back to the body) requires a simple majority vote.

Motionto limit debate.Themost common formofthismotion isto say,“I move the previous question”or “I move the question”or “I call the question” or sometimes someone simply shouts out “question.” As a practical matter, when a member calls out one of these phrases, the chair can expedite matters by treating it as a “request” rather than as a formal motion. The chair can simply inquire of the body, “any further discussion?” If no one wishes to have further discussion, then the chair can go right to the pending motion that is on the floor.

However, if even one person wishes to discuss the pending motion further, then at that point, the chair should treat the call for the “question” as a formal motion, and proceed to it.

When a member of the body makes such a motion (“I move the previous question”), the member is really saying: “I’ve had enough debate. Let’s get on with the vote.”When such a motion is made, the chair should ask for a second,stop debate, and vote on the motion to limit debate. The motion to limit debate requires a two-thirds vote of the body.

Note: A motion to limit debate could include a time limit. For example: “I move we limit debate on this agenda item to 15 minutes.” Even in thisformat, the motion to limit debate requires a twothirds vote of the body. A similar motion is a motion to object to consideration of an item. This motion is not debatable, and if passed, precludes the body from even considering an item on the agenda. It also requires a two-thirds vote.

Majority and Super Majority Votes
In a democracy, a simple majority vote determines a question.A tie votemeansthemotion fails.So in a seven-member body, a voteof 4- 3 passesthe motion.Avote of 3-3with one abstention meansthe motion fails. If one member is absent and the vote is 3-3, the motion still fails.

All motions require a simple majority, but there are a few exceptions.

The exceptions come up when the body is taking an action which effectively cuts off the ability of a minority of the body to take an action or discuss an item.These extraordinary motionsrequire a twothirds majority (a super majority) to pass:

Motion to limit debate. Whether a member says, “I move the previous question,” or “I move the question,” or “I call the question,” or “I move to limit debate,” it all amounts to an attempt to cut off the ability of the minority to discuss an item, and it requires a two-thirds vote topass.

Motion to close nominations. When choosing officers of the body (such as the chair), nominations are in order either from a nominating committee or from the floor of the body. A motion to close nominations effectively cuts off the right of the minority to nominate officers and it requires a two-thirds vote to pass.

Motiontoobjecttotheconsiderationofaquestion.Normally,such a motion is unnecessary since the objectionable item can be tabled or defeated straight up. However, when members of a body do not even want an item on the agenda to be considered,then such a motion is in order.It is not debatable, and it requires a two-thirds vote to pass.

Motion to suspend the rules. This motion is debatable, butrequires a two-thirds vote to pass. If the body has its own rules of order, conduct or procedure, this motion allows the body to suspend the rules for a particular purpose. For example, the body (a private club) might have a rule prohibiting the attendance at meetings by non-club members.A motion to suspend the rules would be in orderto allow a non-club member to attend a meeting of the club on a particular date or on a particular agenda item.

Counting Votes
The matter of counting votes starts simple, but can become complicated.

Usually, it’s pretty easy to determine whether a particular motion passed or whether it was defeated.If a simple majority vote is needed to pass a motion, then one vote more than 50 percent of the body is required. For example, in a five-member body, if the vote is three in favor and two opposed, the motion passes. If it is two in favor and three opposed,themotion is defeated.

If a two-thirds majority vote is needed to pass a motion, then how many affirmative votes are required? The simple rule of thumb is to count the “no”votes and double that count to determine how many “yes” votes are needed to pass a particular motion. For example, in a seven-member body,if twomembers vote“no”then the“yes”vote of at least four members is required to achieve a two-thirds majority vote to passthemotion.

What about tie votes?In the event of a tie, the motion alwaysfailssince an affirmative vote isrequired to pass anymotion.For example, in a five-member body, if the vote is two in favor and two opposed, with onemember absent,themotion is defeated.

Vote counting starts to become complicated when members vote“abstain”or in the case of a written ballot, cast a blank (or unreadable) ballot. Do these votes count, and if so, how does one count them? The starting point is alwaysto check the statutes.

In California, for example, for an action of a board of supervisors to be valid and binding, the action must be approved by a majority of the board. (California Government Code Section 25005.) Typically, this means three of the fi e members of the board must vote affir matively in favor of the action. A vote of 2-1 would not be sufficient. A vote of 3-0with two abstentionswould be sufficient.In general lawcitiesin

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California, as another example, resolutions or orders for the payment of money and all ordinances require a recorded vote of the total members of the city council. (California Government Code Section 36936.) Cities with charters may prescribe their own vote requirements. Local elected officials are always well-advised to consult with their local agency counsel on how state law may affect the vote count.

After consulting state statutes, step number two is to check the rules of the body. If the rules of the body say that you count votes of “those present” then you treat abstentions one way. However, if the rules of the body say that you count the votes of those “present and voting,” then you treat abstentions a different way. And if the rules of the body are silent on the subject, then the general rule of thumb (and default rule) is that you count all votes that are “present and voting.” Accordingly, under the “present and voting” system, you would NOT count abstention votes on the motion. Members who abstain are counted for purposes of determining quorum (they are “present”), but you treat the abstention votes on the motion as if they did not exist (they are not “voting”). On the other hand, if the rules of the body specifically say that you count votes of those “present” then you DO count abstention votes both in establishing the quorum and on the motion. In this event, the abstention votes act just like “no” votes.

How does this work in practice?
Hereareafewexamples.

Assume that a five-member city council is voting on a motion that requires a simple majority vote to pass and assume further that the body has no specific rule on counting votes. Accordingly, the default rule kicks in and we count all votes of members that are “present and voting.” If the vote on the motion is 3-2, the motion passes. If the motion is 2-2 with one abstention, the motion fails.

Assume a five-member city council voting on a motion that requires a two-thirds majority vote to pass, and further assume that the body has no specific rule on counting votes. Again, the default rule applies. If the vote is 3-2, the motion fails for lack of a two-thirds majority. If the vote is 4-1, the motion passes with a clear two-thirds majority. A vote of three “yes,” one “no” and one “abstain” also results in passage of the motion. Once again, the abstention is counted only for the purpose of determining quorum, but on the actual vote on the motion, it is as if the abstention vote never existed — so an effective 3-1 vote is clearly a two-thirds majority vote.

Now, change the scenario slightly. Assume the same five-member city council voting on a motion that requires a two-thirds majority vote to pass, but now assume that the body DOES have a specific rule requiring a two-thirds vote of members “present.” Under this specific rule, we must count the members present not only for quorum but also for the motion. In this scenario, any abstention has the same force and effect as if it were a “no” vote. Accordingly, if the votes were three “yes,” one “no” and one “abstain,” then the motion fails. The abstention in this case is treated like a “no” vote and effective vote of 3-2 is not enough to pass two-thirds majority muster.

Now, exactly how does a member cast an “abstention” vote? Any time a member votes “abstain” or says, “I abstain,” that is an abstention. However, if a member votes “present” that is also treated as an abstention (the member is essentially saying,“Count me for purposes of a quorum, but my vote on the issue is abstain.”) In fact, any manifestation of intention not to vote either “yes” or “no” on the pending motion may be treated by the chair as an abstention. If written ballots are cast, a blank or unreadable ballot is counted as an abstention as well.

Can a member vote “absent” or “count me as absent?” Interesting question. The ruling on this is up to the chair. The better approach is for the chair to count this as if the member had left his/her chair and is actually “absent.” That, of course, affects the quorum. However, the chair may also treat this as a vote to abstain, particularly if the person does not actually leave the dais.

TheMotiontoReconsider
There is a special and unique motion that requires a bit of explanation all by itself; the motion to reconsider. A tenet of parliamentary procedure is finality. After vigorous discussion, debate and a vote, there must be some closure to the issue. And so, after a vote is taken, the matter is deemed closed, subject only to reopening if a proper motion to consider is made and passed.

A motion to reconsider requires a majority vote to pass like other garden-variety motions, but there are two special rules that apply only to the motion to reconsider.

First, is the matter of timing. A motion to reconsider must be made at the meeting where the item was first voted upon. A motion to reconsider made at a later time is untimely. (The body, however, can always vote to suspend the rules and, by a two-thirds majority, allow a motion to reconsider to be made at another time.)
Second, a motion to reconsider may be made only by certain members of the body. Accordingly, a motion to reconsider may be made only by a member who voted in the majority on the original motion. If such a member has a change of heart, he or she may make the motion to reconsider (any other member of the body
— including a member who voted in the minority on the original motion — may second the motion). If a member who voted in the minority seeks to make the motion to reconsider, it must be ruled out of order. The purpose of this rule is finality. If a member of minority could make a motion to reconsider, then the item could be brought back to the body again and again, which would defeat the purpose of finality.

If the motion to reconsider passes, then the original matter is back before the body, and a new original motion is in order. The matter may be discussed and debated as if it were on the floor for the first time.

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Courtesy and Decorum
The rules of order are meant to create an atmosphere where the members of the body and the members of the public can attend to business efficiently, fairly and with full participation. At the same time, it is up to the chair and the members of the body to maintain common courtesy and decorum. Unlessthe setting is very informal, it is always bestfor only one person at a time to have the floor, and it is always best for every speaker to be first recognized by the chair beforeproceeding tospeak.

The chair should always ensure that debate and discussion of an agenda item focuses on the item and the policy in question, not the personalities of the members of the body.Debate on policy is healthy, debate on personalities is not. The chair has the right to cut off discussion that istoo personal, istoo loud, oristoo crude.

Debate and discussion should be focused, but free and open.In the interest of time, the chair may, however, limit the time allotted to speakers, including members of the body.

Can a member of the body interrupt the speaker? The general rule is “no.” There are, however, exceptions. A speaker may be interrupted forthe following reasons:

Privilege. The proper interruption would be,“point of privilege.” The chair would then ask the interrupter to “state your point.” Appropriate points of privilege relate to anything that would interfere with the normal comfort of the meeting. For example, the room may be too hot or too cold, or a blowing fan might interfere with a person’s ability to hear.

Order. The proper interruption would be,“point of order.” Again, the chair would ask the interrupter to“state your point.”Appropriate points of order relate to anything that would not be considered appropriate conduct of the meeting. For example, if the chair moved on to a vote on a motion that permits debate without allowing that discussion or debate.

Appeal. If the chair makes a ruling that a member of the body disagrees with, that member may appeal the ruling of the chair. If the motion is seconded, and after debate, if it passes by a simple majority vote,then the ruling of the chair is deemed reversed.

Call for orders of the day. This is simply another way of saying, “return to the agenda.” If a member believes that the body has drifted from the agreed-upon agenda, such a call may be made. It does not require a vote, and when the chair discoversthat the agenda has not been followed, the chair simply reminds the body to return to the agenda item properly before them.If the chair fails to do so, the chair’s determination may be appealed.

Withdraw a motion. During debate and discussion of a motion, the maker of the motion on the floor, at any time, may interrupt a speaker to withdraw his or her motion from the floor. The motion is immediately deemed withdrawn, although the chair may ask the person who seconded the motion if he or she wishes to make the motion, and any other member may make the motion if properly recognized.

Special Notes About Public Input
The rules outlined above will help make meetings very publicfriendly. But in addition, and particularly for the chair, it is wise to remember three special rules that apply to each agenda item:

RuleOne:Tellthe publicwhat the bodywill be doing.

RuleTwo:Keepthe public informedwhile the body is doing it.

Rule Three: When the body has acted, tell the public what the body did.

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City of Grand Terrace
Council Procedures
Adopted August 10, 2006
Revised 01/13/2015, 06/25/2019, 05/25/2021, 09/27/2022, and 10/10/23

TABLE OF CONTENTS

MEETINGS

1.1 Regular Meetings...............................................................................................4

1.2 Adjourned Meetings ...........................................................................................4

1.3 Special Meetings................................................................................................4

1.4 Emergency Meetings........................................................................................4

1.5.Closed Sessions-Matters of Discussion ............................................................4

1.6 Closed Session-Report of Action/Statement of Reasons ..................................5

1.7 Quorum ..............................................................................................................5

1.8 Meeting End Time ............................................................................................5

ORDER OF BUSINESS

2.1 Agenda .....................................................................................................................5

2.2 Requests for Future Agenda Items by the Public …..........................................7

2.3 Call to Order…… ...............................................................................................7

2.4 Roll Call..............................................................................................................7

2.5 Absence of City Clerk.........................................................................................7

2.6 Preparation/Approval of Minutes........................................................................8

2.7 Public Hearings..................................................................................................8

2.8 Resolutions...............................................................................................................9

2.9 Ordinances ...............................................................................................................9

2.10 Urgency Ordinances (Emergency....................................................................10

2.11 Consideration of Items not on the City Council Agenda ..................................10

2.12 Adjournment ...........................................................................................................10

III PRESIDING OFFICER

3.1 Presiding Officer.................................................................................................10

3.2 Participation of Presiding Officer........................................................................11

3.3 Question (Motion) to be Stated.........................................................................11

3.4 Signing of Document..........................................................................................11

3.5 Maintenance of Order.......................................................................................11

3.6 Authority to Sign Resolutions of Support..........................................................11

IV RULES, DECORUM, AND ORDER

4.1 Points of Order...................................................................................................11

4.2 Decorum and Order - Council Members............................................................12

4.3 Decorum and Order – Employees .....................................................................12

4.4 Decorum and Order – Public .............................................................................12

4.5 Personal Interest...............................................................................................14

4.6 Limitation of Debate ...........................................................................................14

4.7 Dissent and Protest............................................................................................14

4.8 Procedures and Rule .........................................................................................14

4.9 Sergeant at Arms .............................................................................................14

4.10 Meeting Disruptions........................................................................................14

4.11 Enforcement ...................................................................................................14

V ADDRESSING THE COUNCIL

5.1 Manner of Addressing the Council ....................................................................20

5.2 Time Limitation...................................................................................................21

5.3 Addressing the Council After Motion is Made...................................................21

5.4 Written Communication .....................................................................................21

VI MOTIONS

6.1 General Procedure of Acting on Agenda Items ..............................................21

6.2 Processing of Motions. ......................................................................................22

6.3 Division of Motion ..............................................................................................22

6.4 Order of Motions ................................................................................................22

6.5 Particular Motions, Purpose, and Criteria..........................................................22

VII VOTING

7.1 Voting Procedure ...............................................................................................23

7.2 Voting........................................................................................................................23

7.3 Failure to Vote....................................................................................................23

7.4 Reconsideration .................................................................................................24 VIII ROSENBERG’S RULES OF ORDER .........................................................................25

4 I

MEETINGS
The Ralph M. Brown Act, commencing at Government Code Section 54950 et seq., (“Brown Act”) governs the meetings of the City Council. Except for very limited circumstances, the Brown Act requires that all City Council meetings be conducted in open session.

1.1 REGULAR MEETINGS. The Regular City Council Meetings are held on the second and fourth Tuesday of every month, beginning at 6:00 p.m.

1.2 ADJOURNED MEETINGS. Any regular or adjourned meeting may be adjourned to a time, place, and date certain, but not beyond the next regular meeting.

1.3 SPECIAL MEETINGS. A special meeting may be called at any time by the Presiding Officer of the legislative body of a local agency, or by a majority of the members of the legislative body, by delivering written notice to each member of the legislative body and to each local newspaper of general circulation and radio or television station requesting notice in writing. The notice shall be delivered personally, by fax or e-mail or by any other means and shall be received at least 24-hours before the time of the meeting as specified in the notice. The call and notice shall specify the time and place of the special meeting and the business to be transacted or discussed. No other business shall be considered at these meetings by the legislative body. The written notice may be dispensed with as to any member who at, or prior to, the time the meeting convenes files with the clerk or secretary of the legislative body a written waiver of notice. The waiver may be given by telegram, fax or e-mail. The written notice may also be dispensed with as to any member who is actually present at the meeting at the time it convenes.

The call and notice shall be posted at least 24 hours prior to the special meeting in a location that is freely accessible to members of the public.

1.4 EMERGENCY MEETINGS. In the case of an emergency situation involving matters upon which prompt action is necessary due to the disruption or threatened disruption of public facilities, a legislative body may hold an emergency meeting without complying with either the 24-hour notice requirement or the 24-hour posting requirement of Government Code Section 54956, or both of the notice and posting requirements.

1.5 CLOSED SESSIONS - MATTERS OF DISCUSSION. Any matter proposed to be considered in closed session must appear on the posted agenda unless added on an emergency basis in the same manner as required for items on the open agenda. Closed session item descriptions shall generally comply with Government Code Section 54954.5. Following the conclusion of closed session, any action taken shall be reported in open session if required by Government Code Section 54957.1. All meetings of the Council shall be open to the public; however, the Council may hold Closed Sessions, from which the public may be excluded, for consideration of the following subjects:

5 a. Pending litigation;
b. Threatened or anticipated litigation against the local agency; c. Commencement of litigation;
d. Real estate negotiations;
e. Public Employment; and
f. Labor Negotiations

1.6 CLOSED SESSIONS - REPORT OF ACTION/STATEMENT OF REASONS.

Any matter proposed to be considered in closed session must appear on the posted agenda unless added on an emergency basis in the same manner as required for items on the open agenda. Closed session item descriptions shall generally comply with Government Code Section 554954.5. Following the conclusion of closed session, any action taken shall be reported in open session if required by Government Code Section 54957.1. Prior to, or after, a Closed Session, the Council shall state the general reason, or reasons, for the Closed Session. The Council may consider only those items covered in the statement.

1.7 QUORUM. A majority of the Council (three members) shall be sufficient to conduct business. In the absence of a majority of the Council Members from a regular or adjourned meeting, the City Clerk may declare the meeting adjourned to a stated day and hour.

Motions may be passed by a 2-1 vote if only three Members are present.

However, the following matters require a minimum of three affirmative votes:
a. Ordinances (emergency/urgency ordinances require four affirmative votes); b. Resolutions;
c. Orders for payment of money;
d. Selection of Officers (exclusive of Presiding Officer).

1.8 MEETING END TIME. Except as to matters discussed in closed session in compliance with the Brown Act, City Council meetings shall conclude at 10:00 P.M. If the City Council desires to continue after 10:00 P.M., then a motion may be made to extend the meeting after 10:00 P.M., provided that such a motion shall specify the proposed meeting end time and shall require a second (e.g., “I move to extend the meeting end time to 11:00 P.M.”).

This motion shall require approval of a majority of the City Council members then voting in order to pass.

II

ORDER OF BUSINESS

2.1 AGENDA. The order of business of Council meetings will be listed in the Agenda prepared by the City Clerk. The Council will follow the order of business in the prepared Agenda; items of general, or special, interest may be taken out of order by the Chair or by a majority vote of the Council.

6 a. Consent Calendar. Consent Calendar items are considered by Council to be routine and noncontroversial and will all be enacted by one motion in the form listed. There will be no separate discussion of these items prior to the time the Council votes on the motion to adopt unless members of the Council, Staff, or the public request specific items be removed from the Consent Calendar for separate action. The Check Register will routinely appear on the Consent Calendar.

Any Council Member may request that an item be removed from the Consent Calendar. Removed items will be heard immediately after approval of the remaining items on the Consent Calendar or later in the meeting. If a Council Member removes an item from the Consent Calendar, then he or she shall have the responsibility to make a motion on the item (e.g., a motion to approve, deny, continue, etc.).

No request for funds from the City may be considered on Consent Calendar.
b. Public Comment. This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss, or act on, any item not on the agenda, but may briefly respond to statements made or ask a question for clarification. The Chair may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting.

Public Comment shall be placed on the agenda immediately after conducting Roll Call.
c. Requests for Future Agenda Items by City Council. At this time, the City Council may propose items for discussion and/or action at a future duly agendized City Council meeting. A consensus of a majority of the quorum is required to place an item on a future agenda.
d. Public Comment on Agenda Items. Members of the public will be given an opportunity to address items on the agenda, before action is taken on the items, by filing out a speaker card indicating their desire to speak on a specific agenda item.
e. City Council Communications. This section shall be placed at the end of the Council Agenda, but immediately before the “City Manager Communications” section. This is an opportunity for the Mayor and Council Members to report on their activities and the actions of the Committees

7 upon which they sit and to bring a matter to the attention of the full Council and staff. When a Council Member travels at the City’s expense serving as a representative of the City at a committee meeting or conference, the Council Member must provide an update report on that activity at the next Council meeting. Any matter that was considered during the public hearing portion is not appropriate for discussion in this section of the agenda. NO ACTION CAN BE TAKEN AT THIS TIME.
f. City Manager Communications. This is an opportunity for the City Manager to make any City-related announcements to the Council and members of the public.

2.2 REQUESTS FOR FUTURE AGENDA ITEMS BY THE PUBLIC. Any request to have an item placed on a future agenda must be made in writing and submitted to the City Clerk’s office. The City Clerk will provide copies of the request to Council Members prior to the next Council meeting; however, it is the City Manager's, or majority of Council's, discretion whether to place the item on the next regular Agenda.

2.3 CALL TO ORDER. The meeting of the Council shall be called to order by the Chair or, in his/her absence, the Vice Chair. (See Section 3.1 for absence of Chair and Vice Chair.) In the absence of all Council Members, the City Clerk shall call the meeting to order and declare the same adjourned to a stated day and hour. The meetings will be opened with invocation and the Pledge of Allegiance.

2.4 ROLL CALL. A roll call of Chair and Council Members will be conducted by the City Clerk, who enters the names of those present and those absent in the Minutes.

2.5 ABSENCE OF CITY CLERK. If the City Clerk is absent from a Council meeting, the Deputy City Clerk acts in the Clerk's behalf. If there is no Clerk or Deputy present, the Chair shall appoint a Council Member to serve as City Clerk Pro Tempore (Gov’t Code § 36804).

2.6 PREPARATION/APPROVAL OF MINUTES. It is the City Clerk's responsibility to maintain a record (Minutes) of Council meetings. The Clerk shall have exclusive responsibility for preparation of the Minutes, and any directions for changes in the Minutes may be made only by Council action.

In order to maintain a full and true Minute record, the Minutes shall consist of a clear and concise statement of each and every Council action including motions made and the vote thereon. Items may be included if considered to be particularly relevant or otherwise necessary by the Clerk. Action Minutes will be taken of all City Council meetings (Regular, Special; Emergency) by the City Clerk, or designee. Any Council Member may request a statement be included in the Minutes by indicating "for the record."

8 The Minutes shall also include hyperlinks to allow access to staff reports, attachments and any presentation materials (e.g., PowerPoint presentations) presented to the City Council.

2.7 PUBLIC HEARINGS. It is the policy of the Council to assure that the due process rights of all persons are protected during City hearings. A “quasi-judicial” hearing is a hearing that requires a higher level of procedural due process because of the potential impact on life, liberty or property). Usually, quasi-judicial hearings involve a single parcel of land and apply facts and evidence in the context of existing law.

Findings must be stated to explain the evidentiary basis for the Council’s decision.

The following procedure is suggested for conducting public hearings in which there is an applicant (e.g., land use applications:
a. Chair states the Public Hearing Item.
b. Announcement of any ex parte communications, conflicts of interest, and/or recusals.
c. Staff Presentation and recommendation on the Public Hearing Item. d. Council asks questions of Staff.
e. Open the Public Hearing.

1. Applicant’s presentation on the Public Hearing Item.

2. Council asks questions of the Applicant.

3. Public Testimony in favor and against the Public Hearing Item.

4. Applicant’s rebuttal.
f. Close the Public Hearing.
g. Council deliberates on the Public Hearing item.
h. Council votes.

The following procedure is suggested for conducting public hearing in which there is no applicant (e.g., a City-initiated change to the Development Code):
a. Chair states the Public Hearing Item.
b. Announcement of any ex parte communications, conflicts of interest, and/or recusals.
c. Staff Presentation and recommendation on the Public Hearing Item. d. Council asks questions of Staff.

9 e. Open the Public Hearing to allow public testimony in favor and against the Public Hearing Item.
f. Close the Public Hearing.
g. Council deliberates on the Public Hearing Item.
h. Council votes on the item.

Council Members should also refrain from asking questions or, in any way, interfere with the “public testimony” portion of the Public Hearing section.

2.8 RESOLUTIONS
Resolutions Not Prepared in Advance of a City Council meeting: When a resolution has not been prepared in advance of a City Council meeting, the procedure shall be to instruct the City Attorney to prepare a resolution for presentation at the next Council Meeting.

Urgency Resolutions: In matters of urgency, a resolution may be presented verbally, with specific instructions to the City Attorney and staff for written preparation of the urgency resolution. After the resolution has been verbally stated, the resolution may be adopted by three affirmative votes. Urgency resolutions shall be avoided except when absolutely necessary.

2.9 ORDINANCES
Consent Calendar Agenda Item #1, on the City Council agenda shall waive full reading of all ordinances on the City Council agenda.

Council will approve the introduction, or first reading, of the ordinance, by title only and if approved, the adoption and second reading will be scheduled for the following Council meeting.

The first reading of a proposed ordinance will be placed under the “New Business” or “Public Hearing” sections of the agenda pursuant to applicable law. The second reading of a proposed ordinance will be placed on the Consent Calendar except as otherwise required by applicable law.

With the exception of urgency (emergency) ordinances, no ordinance shall be adopted by the Council on the date of introduction, nor within five days thereafter, nor at any time other than a regular or adjourned regular meeting. An ordinance must be adopted, at its second reading, by at least three affirmative votes, and becomes effective 30 days thereafter (an urgency ordinance requires a minimum of four affirmative votes and becomes effective immediately, Ref: Sec. 2.10).

If an ordinance is altered after first reading, a motion for an amended first reading

10 is required. The ordinance shall not be considered for adoption until five days thereafter. Correction of a typographical or clerical error does not constitute alteration of the ordinance.

2.10 URGENCY ORDINANCES (EMERGENCY). An ordinance which is necessary to go into effect immediately and requires a four-fifths vote to do so. It is required, however, to be on the regular posted City Council agenda.

2.11 CONSIDERATION OF ITEMS NOT ON THE CITY COUNCIL AGENDA. No matters, other than those appearing on the Agenda, will be acted upon by the City Council, except matters which are deemed to be of an emergency nature requiring action prior to the next regular meeting and which arose after the posting of the Agenda. Adding such items requires a four-fifths vote of the City Council.

2.12 ADJOURNMENT. Adjournment of the meeting to the next regular meeting does not require a motion. A motion is required to adjourn a meeting to an adjourned meeting specifying the date, time, and place of said adjourned meeting.

III

PRESIDING OFFICER

3.1 PRESIDING OFFICER. The Chair shall be the Presiding Officer at all meetings of the Council. In the absence of the Chair, the Vice Chair shall preside. In the absence of both the Chair and Vice Chair, the Council shall elect a temporary Presiding Officer to serve until the arrival of the Chair or Vice Chair, or until adjournment.

The terms "Presiding Officer," "Mayor," and "Chair" shall be used interchangeably within this manual.

3.2 PARTICIPATION OF PRESIDING OFFICER. The Presiding Officer is, primarily, responsible for the conduct of the meeting; may move, second, and debate from the Chair, subject only to such limitations of debate as are imposed on all Council Members; and shall not be deprived of any such rights and privileges.

3.3 QUESTION (MOTION) TO BE STATED. The Presiding Officer shall verbally restate each motion immediately prior to calling for the vote. Following the vote, the City Clerk shall announce whether the motion carried or was defeated. In cases where the action of the Council may be unclear for those in the audience, the Chair shall summarize the action of the Council before proceeding to the next item of business.

3.4 SIGNING OF DOCUMENT. Subject to Council policy, the Chair shall sign ordinances, resolutions, and contracts approved by the Council at meetings at which he/she is in attendance. In the event of his/her absence, the Vice Chair

11 shall sign all such documents approved and adopted by Council.

3.5 MAINTENANCE OF ORDER. The Chair is responsible for the maintenance of order and decorum at all times. No person shall be allowed to speak who has not first been recognized by the Chair. All questions and remarks shall be addressed to the Chair.

3.6 AUTHORITY TO SIGN RESOLUTIONS OF SUPPORT. The Mayor is authorized to respond to requests for support by the League of California Cities, the California Joint Powers Insurance Authority, a legislative office, and various private business entities relating to the respective organization’s position on legislation before the State legislature or the voters by signing a letter in support on behalf of the City Council, without a formal vote of the City Council. Prior to signing the aforementioned letter of support, the request for support from League of California Cities, the California Joint Powers Insurance Authority, a legislative office, and/or private business entity shall be distributed to all members of the City Council.

Unless the Mayor or City Manager receives a request from a Council member to place the request for support on a council agenda within seventy-two hours of the aforementioned documents being sent, the Mayor may sign the requested letter of support and cause it to be returned to the League of California Cities, the California Joint Powers Insurance Authority, the legislative office, and/or private business entity.

IV

RULES, DECORUM, AND ORDER

4.1 POINTS OF ORDER. The Presiding Officer shall determine all Points of Order subject to the right of any Council Member to appeal to the Council. If any appeal is taken, the question shall be in the following form: “Shall the decision of the Presiding Officer be sustained?" In this event, a majority vote shall govern and conclusively determine such question of order.

12 4.2 DECORUM AND ORDER – COUNCIL MEMBERS

1. Every Council Member desiring to speak shall address the Presiding Officer and, upon recognition by the Presiding Officer, shall confine himself/herself to the question under debate.

2. Every Council Member desiring to question the administrative staff shall address questions to the City Manager or City Attorney, who shall be entitled to either answer the inquiry or designate a member of staff for that purpose.

3. A Council Member who is recognized to speak by the Presiding Officer shall not be interrupted except in the following circumstances: (i) a point of order is raised by another Council Member; or (ii) the recognized Council Member yields to questions from another Council Member.

4. A Council Member who is called to order while speaking shall cease speaking until the question of order is determined. If ruled to be not in order, the Council Member shall remain silent or shall alter the remarks so as to comply with rules of the Council.

5. The Chair and Council Members shall accord the utmost courtesy to each other, to City employees, and to the public appearing before the Council and shall refrain at all times from rude and derogatory remarks, reflections as to integrity, abusive comments, and statements as to motives and personalities.

6. Any Council Member may move to require the Chair to enforce the rules, and the affirmative vote of a majority of the Council shall require the Chair to so act.

4.3 DECORUM AND ORDER – EMPLOYEES. Members of the Administrative staff and employees of the City shall observe the same rules of procedure and decorum applicable to members of the Council. The City Manager shall ensure that all City Employees observe such decorum.

Any Staff member, including the City Manager, desiring to address the Council shall first be recognized by the Chair. All remarks shall be addressed to the Chair, and not to anyone individual Council Member or public member.

4.4 DECORUM AND ORDER – PUBLIC. The City Council, elected by the public, must be free to discuss issues confronting the City in an orderly environment. a. Any member of the public who engages in disorderly behavior that actually disrupts, disturbs or otherwise impedes the orderly conduct of any City Council meeting shall, upon an order by the Presiding Officer or a majority of the City Council, be barred from further audience before the City Council during that meeting, pursuant to the provisions of subsection (c), below. b. Disorderly behavior under subsection (a) may include, but is not limited to, the following:

13 1. Speaking without being recognized by the Presiding Officer.

2. Continuing to speak after the allotted time has expired.

3. Speaking on an item at a time not designated for discussion by the public of that item.

4. Throwing objects.

5. Clapping, booing, or making any other noises that disrupt the meeting.

6. Speaking on an issue that is not within the jurisdiction of the City Council.

7. Attempting to engage the audience rather than the City Council.

8. Refusing to modify conduct after being advised by the Presiding Officer that the conduct is disrupting the meeting or disobeying any other lawful order of the Presiding Officer or a majority of the City Council c. Enforcement. The rules of conduct while addressing the City Council set forth above shall be enforced in the following manner:

1. Call to order and warning to desist. Whenever practicable, the Presiding Officer or a majority of the City Council shall give a warning to the person who is breaching the rules of conduct to be orderly and to comply with the rules of conduct hereunder. Such a warning shall articulate the rule of conduct being violated and the manner in which the person must comply.

A warning shall not be necessary when it would not be effective under the circumstances, including when, but not limited to, the disturbance is such that the warning cannot be heard above the noise, or the conduct of the person or persons constitutes an immediate threat to public safety, such as the throwing of objects or specific threats of harm and the apparent, present ability to carry out such threats. A warning shall also not be necessary when an individual violates the rules of conduct more than once during a Council meeting, or continuously violates the rules of conduct Council meeting after Council meeting.

2. Order barring person from meeting. A person who engages in disorderly behavior shall be barred from the remainder of that council meeting by the Presiding Officer or a majority of the City Council when that person:
(i) continues the disorderly behavior after receiving a warning pursuant to subsection (c)(1); (ii) ceases the disorderly behavior upon receiving a warning pursuant to subsection (c)(1), but later in the same council meeting resumes such disorderly behavior; or (iii) engages in disorderly behavior and no warning is practicable under the circumstances, pursuant to subsection (c)(1).

The continuation of disorderly behavior after receiving a warning, repeated disorderly behavior during a Council meeting, disorderly behavior at Council meeting after Council meeting, or disorderly behavior that is so significant that a warning cannot be given,

14 constitutes the type of behavior that actually disrupts, disturbs or otherwise impedes the orderly conduct of a City Council meeting.

3. Removal. If the person barred from the meeting does not voluntarily remove him/herself upon being instructed to do so by the Presiding Officer or a majority of the City Council, the Presiding Officer or the majority of the City Council may direct the sergeant-at-arms to remove that person from the Council Chamber.

4.5 PERSONAL INTEREST - No Council Members prevented from voting by legal conflict of interest shall remain at the Council dais during the debate and vote on any such matter. In the event of such conflict, the Council Members shall state for the record the basis for the conflict of interest and leave the Council dais prior to the commencement of discussion of the issue.

4.6 LIMITATION OF DEBATE - No Council Member shall be allowed to speak more than once upon anyone subject until every other Council Member choosing to speak has spoken. Merely asking a question or making a suggestion is not considered as speaking.

4.7 DISSENT AND PROTEST - Any Council Member shall have the right to express dissent from, or protest to, any action of the Council and request that the reason be entered into the Minutes.

4.8 PROCEDURES AND RULES - In a rule to govern a point of procedure, Rosenberg’s Rules of Order shall govern, unless there is a conflict between the rules set forth herein in Sections 1.1 through 7.4, at which point Sections 1.1 through 7.4 shall govern.

4.9 SERGEANT AT ARMS – The assigned Deputy of the San Bernardino County Sheriff’s Department who attends the City Council Meeting is designated the Sergeant of Arms.

4.10 MEETING DISRUPTIONS – In the event that there is a disruption that results in the Council not being able to conduct its business, the Chair may immediately recess the meeting for a defined period of time. In the event that the disruption continues in a manner that prevents the Council from conducting its business after reconvening, then the Chair may order the Sergeant-at-Arms to remove the disruptive members of the public from the Council Chambers.

4.11 ENFORCEMENT – In order for the public to maintain a reasonable modicum of reliance upon the rules and regulations of a civil administration whose purpose it is to provide necessary services and protect the freedom of the governed, it is necessary for elected and appointed representatives to conduct the public business in accordance with established oaths, protocols, standards, policies, rules, resolutions, and laws. While ordered discussion and debate is a necessary product of communication between the public and their representatives to ensure

15 the needs of the community are properly served, no real purpose may be served in an atmosphere of chaos. Therefore, the violation of civil administration, albeit the nature of which is largely self-enforced, must carry certain consequences to remind parties that disorder contravenes progress and the fruit that proper behavioral procedure yields.
a. For the purposes of this Section 4.11, the following definitions apply unless context dictates otherwise:
“Legislative Body” shall mean the City Council, its boards, commissions, and committees as applicable.
“Member” shall mean a member of the Legislative Body as applicable. b. Oath of Office
Tradition dictates the espousal of certain conventions that bear historical and moral significance in the hearts of generations. Oaths are intended to impress upon the mind of the swearer a sense of gravity appurtenant to vesting oneself in selfless service for the benefit of others. The following Oath of Office is consistent with that provided under Article XX of the California Constitution and is in similar form to that which has been voiced since the First United States Congress of 1789, and fulfills the spirit of Article VI of the United States Constitution and the Judiciary Act of 1789. “I, ___________, do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter, so help me God.”
The phrase “so help me God” in the above shall be optional. Failure to state the phrase “so help me God” shall not affect an individual’s ability to hold office. c. Acceptable Code of Conduct
Incident to the Oath of Office is an Acceptable Code of Conduct, because to simply swear to defend is insufficient. A Member cannot be responsible for that which he or she is not aware. Cohesive conduct and order among Members are necessary elements of parliamentary procedure when conducting public business. When conducting business under color of authority, or representing their Legislative Body in general, Members shall comply with the Acceptable Code of Conduct which requires Members to do the following:

1. Read and examine the agenda, agenda packet materials, appurtenant reference documents, and exhibits in preparation for the public

16 meeting.

2. Respect the order of the agenda and meeting format.

3. Perform to the best of my ability to represent the interests of his or her constituents.

4. Maintain an impartial and open mind throughout the process.

5. Recuse himself or herself in the event of conflicts of interest.

6. Contribute his or her best effort to maintain order and foster trust.

7. Speak in restrained tones to encourage civility.

8. Address a topic only when granted the floor by the Chair.

9. Restrict his or her comments to the subject at hand.

10. Avoid discussion on topics that have not been noticed on the agenda.

11. Exercise common courtesy and decorum when dealing with fellow Members, City staff, and the general public.

12. Avoid bullying, pursing personal attacks, engaging in character assassination, or indulging in verbal insults against his or her colleagues, staff or the public.

13. Support freedom of expression that is absent disruptive intent.

14. Attend all necessary meetings and workshops.

15. Provide proper advance notice in the event of an emergency that might affect his or her ability to attend meetings.

16. Foster participation in the process, facilitate discussion, and promote good decision making.

17. Form a basic understanding of correct parliamentary procedure and operate subject to the premise that the majority rules.

18. Proceed efficiently, fairly, and effectively.

19. Respect the chain of authority and refuse to circumvent the City Manager.

20. Comply with all laws, including the laws of the City of Grand Terrace.

17 d. Censure of Legislative Body Members

1. General
A violation of any condition of office as specified within the Oath of Office, the Acceptable Code of Conduct, or established protocols, standards, policies, rules, resolutions, and laws, by any sitting Member, shall constitute grounds for progressively stronger admonishment, ultimately leading to public censure by the City Council.

However, it should be noted that the aim of admonishment is not punitive. The aim of admonishment is to enable good people to pause and reflect. Therefore, a Member may not be made the subject of a motion for censure vote without first being given notice of the violation and an opportunity to correct the violation, if it can reasonably be corrected. For the purposes of participation in local governance, one must assume the best in each other, and a common foundation constitutes the best path to civil and productive discourse. In order to model unity, as well as civility, Members should treat each other and members of the public with dignity and respect.

2. Who May file a Statement of Charges
A sitting City Council member may initiate corrective action regarding the behavior of a fellow sitting City Council member by initiating the censure process described in this Section 4.11.

Furthermore, a sitting City Council member may initiate corrective action by the censure process described in this Section 4.11 against any sitting member of any City board, commission, or committee. For example, a sitting City Council member may initiate corrective action against a sitting member of the City’s Planning Commission/Site and Architectural Review Board. However, members of City boards, commissions, or committees may not initiate any corrective action pursuant to this Section X against any City Council members, because such boards, commission, and committees are subordinate to the City Council.

3. Censure Procedure
Procedures. Censure of a Member shall proceed as follows:
(i) Opportunity to Correct. To initiate the process, a charging Member shall first provide a charged Member notice of the alleged violation. The charged Member shall be provided an opportunity to correct such alleged violation, if it can reasonably be corrected.
(ii) Statement of Charges. If the charged Member does not correct the alleged violation, then a Statement of Charges shall be prepared and delivered by the charging Member to the charged

18 Member, with a conformed copy delivered concurrently to the City Clerk and other Members. The charging Member shall also concurrently provide a proof of service of the Statement of Charges to the charged Member, the City Clerk, and other Members. In the case of a City Council member delivering a Statement of Charges to a Member of a City board, commission, or committee, then such Statement of Charges and proof of service shall be delivered to the charged Member, the City Clerk, other City Council members, and other members of the relevant board, commission, or committee. A proper Statement of Charges shall be served as provided above a minimum of 10 days prior to the meeting when the motion for censure shall be made, and shall include:

A. The specifics of the violation (including the rule,
regulation, law, etc. that was violated), and
B. A statement of the date, place, and time of the
occurrence, and
C. A description of the unsatisfactory behavior.
(iii) Response to Statement of Charges. The charged Member may respond to the Statement of Charges in writing within seven (7) days after delivery of the Statement of Charges by delivering it to the charging Member, with a conformed copy delivered concurrently to the City Clerk and other Members. The charged Member shall also concurrently provide a proof of service of the Response to Statement of Charges to the charging Member, City Clerk and other Members. In the case of a City Council member delivering a Statement of Charges to a Member of a City board, commission, or committee, then such response and proof of service shall be delivered to the charging Member, the City Clerk, other City Council members, and other members of the relevant board, commission, or committee. The charged Member may also choose to defer a written response in favor of a verbal response at the hearing on the motion for censure.

Nothing herein shall prevent a charged Member to respond both in writing and at the hearing on the motion for censure. (iv) Hearing of Motion for Censure. The motion for censure shall be heard at the first regular meeting of the City Council ten (10) days after the Statement of Charges is served upon the charged Member and City Clerk. A continuance is allowed only if any City Council member is absent. The hearing shall adhere to the following the general process:

A The Chair (or, if absent or is the charged Member, then

19 the Vice Chair) shall conduct the hearing in open session.

B The charging Member shall read the Statement of
Charges and may present witnesses and evidence.

C The charged Member may rebut and may present
witnesses and evidence.

D Members of the public may comment on the Statement
of Charges and any witnesses and evidence presented.

E The remaining City Council members may
address/comment on the charges.

F A motion for censure may be made.

G The City Council deliberates on the motion for censure and votes on the same.

Motion for Censure - Consideration and Passage. Motion for censure passage requires a majority vote of the City Council in open session. If the Statement of Charges includes multiple charges, then the City Council may consider and vote upon each charge individually. If the motion for censure or a particular charge fails to obtain a majority vote, no new motion on the same grounds may be commenced against the same Member for a period of one (1) year.

If the motion for censure passes, then the motion for censure and Statement of Charges shall become a part of the public record and record of proceedings. The motion for censure and Statement of Charges shall be disclosable pursuant to the California Public Records Act.

Request for Defense or Indemnification. When evaluating a request for defense or indemnification made by a censured Member in litigation arising from the censured conduct, the record of the censure shall be considered by the City Council, but shall not be determinative. Failure of the City Council to censure the conduct of a Member does not constitute waiver of the City Council’s right to refuse to indemnify or defend the Member in an action.

4. Grounds for Censure
The basis for a motion of censure under this Section 4.11 may include, but are not limited to, the following acts by a Member:
(i) Serial unexcused absences of three or more from his or her regular Legislative Body meetings.
(ii) Violating laws and regulations relating to conflicts of interest.

20 (iii) Actions taken against established Legislative Body policy or the Grand Terrace 2030 Vision (as may be amended).
(iv) Harassment.
(v) Creating a hostile work environment.
(vi) Any violation of federal, State, or local laws, rules, regulations, or ordinances, including applicable laws relating to conflict of interest and any City laws, rules, regulations, or ordinances. (vii) Violation of the Acceptable Code of Conduct or the Oath of Office.
e. Removal from Office

1. City Council
While City Council members may censure one another as provided above, the City Council may not remove a sitting Council Member from office. State law provides the sole mechanisms for removal from office for City Council members.

These include:
(i) A Recall Petition submitted by members of the public pursuant to Cal Const. Art II, §19 and Elections Code Sections 11000- 11386.
(ii) The seat becomes vacant pursuant to Government Code Section 1770.
(iii) Quo Warranto proceedings pursuant to Code of Civil Procedure Section 803 brought or authorized by the Attorney General to challenge the right to hold a particular office (this can work in tandem with Government Code Section 1770).
(iv) Removal proceedings pursuant to Government Code Section 3060 for certain kinds of misconduct (initiated by grand jury/district attorney).

2. Appointed Members of City Boards, Commissions, and Committees Members of City boards, commissions, and committees who are appointed by the City Council serve at the pleasure of the City Council and may be removed at any time, with or without cause, by the City Council. Without limitation, the City Council may use any of the Grounds for Censure (including violations of the Acceptable Code of Conduct) set forth above as a basis for removal with cause.

V

21 ADDRESSING THE COUNCIL

5.1 MANNER OF ADDRESSING THE COUNCIL - Any person desiring to address the Council shall fill out a request to speak form and wait to be recognized by the Chair, and after being recognized shall proceed to the podium, or microphone.

Such persons are requested to state for the record his or her name and address.

Remarks are to be limited to the subject under discussion.

5.2 TIME LIMITATION - Any public member addressing the Council shall limit his or her address to three (3) minutes. The Chair or a Council Member may move to extend the time limitation which shall be extended upon a majority vote of the Council. When any group of persons wishes to address the Council on the same subject matter, it shall be proper for the Chair to request that a spokesperson be chosen to represent the group, so as to avoid unnecessary repetition. A speaker may not yield time to another speaker.

5.3 ADDRESSING THE COUNCIL AFTER MOTION IS MADE - After a motion has been made, no person shall address the Council without securing permission by a majority consensus of the Council.

5.4 WRITTEN COMMUNICATION - Unless specifically requested otherwise, the City Manager is authorized to receive and open all mail addressed to the City Council and take any immediate administrative action required between Council meetings, which does not require specific Council action. Any communication requiring Council action will be reported to the Council at the next possible meeting, together with a report and recommendation of the City Manager.

VI

MOTIONS

6.1 GENERAL PROCEDURE OF ACTING ON AGENDA ITEMS – The following procedure is suggested for Council’s consideration non-Public Hearing Agenda Items:
a. Chair states the Item to be considered.
b. Announcement of any ex parte communications, conflicts of interest, and/or recusals.
c. Staff Presentation and recommendation on the Item.
d. Council asks questions/clarifications of Staff.
e. Open Public Comments for the Item.

22 f. Close Public Comments for the Item.
g. At Council’s direction, City Manager and/or Staff respond to any questions from Public Comment.
h. Chair asks, “Do I have a motion?”
i. If a motion is made, Chair asks “Do I have a second?” j. If there is a motion and a second, then Council proceeds with deliberation.
k. After deliberation, the Council votes on the item.

6.2 PROCESSING OF MOTIONS - When a motion is made and seconded, it shall be restated by the Presiding Officer before debate. A motion shall not be withdrawn by the mover without the consent of the Council Member seconding it and the approval of Council.

6.3 DIVISION OF MOTION - If a motion contains two or more divisible propositions, the Chair may, and upon request of a Council Member shall (unless appealed by another Council Member), divide the motion.

6.4 ORDER OF MOTIONS - When multiple motions are before the body, the last motion is voted on first.

Non-Debatable Motions:
a. Adjourn,
b. Recess
c. Fix the time to adjourn
Super Majority Votes: (2/3 vote required)
a. Limit debate
b. Close nominations
c. Object to the consideration of an item
d. Suspend the rules
e. Reconsider – (A member of the majority of the previous vote must motion at the same or next meeting.)

6.5 PARTICULAR MOTIONS, PURPOSE, AND CRITERIA

1. Motion to Adjourn:

Purpose - To terminate a meeting.

Debatable or Amendable - No, except a motion to adjourn to another time is debatable and amendable as to the time to which the meeting is to be

23 2. Motion to Refer to Commission, Committee, or Staff:

Purpose - To refer the question before the Council to a commission, committee, or to the City Staff for the purpose of investigating or studying the proposal and to make a report back to the Council.

If the motion fails, discussion or vote on the question resumes.

Debatable or Amendable -Yes.

3. Motion to Amend:

Purpose - To modify or change a motion that is being considered by the Council so it will express more satisfactorily the will of the members. If there are two amendments, the second amendment is voted upon first if it carries, it automatically cancels the first amendment, and the vote is taken on the amended motion. An amendment motion relating to a different matter shall not be in order.

Debatable or Amendable - Yes.

4. Postpone Indefinitely:

Purpose - To prevent further discussion and voting on the main motion. If the motion fails, discussion and voting on the main motion resumes. If it passes, the subject of main motion shall not be brought up again for the remainder of the meeting.

Debatable or Amendable - It is debatable but not amendable.

5. Main Motion:

Purpose - The primary proposal or question before the Council for discussion and decision. Debatable or Amendable - Yes.

VII
VOTING

7.1 VOTING PROCEDURE - Motions will be adopted by either electronic voting system, voice or roll call vote. The results of the vote shall be entered in full in the minutes.

7.2 VOTING - Every ordinance, resolution, and payment of money requires three affirmative votes. Emergency ordinances require four affirmative votes. Unless otherwise required by law, all other actions of the Council require a majority vote of the Council Members present.

7.3 FAILURE TO VOTE - Every Council Member should vote unless disqualified for a personal conflict of interest.

24 Self-disqualification, without cause, which results in a tie vote shall be avoided; but no Council Member shall be forced to vote. A Council Member who abstains shall, in effect, consent that a majority of the quorum may act for him or her. Tie votes shall be lost motions and may be reconsidered.

7.4 RECONSIDERATION - After motion and vote by the Council, such action may be reconsidered or rescinded only in the following manner:

Reconsideration:

A motion to set aside a vote (to reconsider) on a main motion shall always be in order at the same meeting or at the next regular Council meeting following the action. The motion can be made by any Council Member who voted affirmatively on the matter. If the motion to reconsider passes, the effect thereof is to overrule and cancel the prior action and rehear the original subject.

Lost Motion:

A lost motion is one that fails to receive the necessary number of votes to carry.

Tie votes result in a lost motion. A tie vote which has resulted from there being present less than a full Council shall be automatically reconsidered at the next Council meeting at which all members are present. Lost motions may be renewed at any subsequent Council meeting. To revive a lost motion at the same meeting, the proper action is a motion to reconsider (discussed above).

01247.0001 2001339.3 25
Rosenberg’s Rules of Order
REVISED 2011
Simple Rules of Parliamentary Procedure for the 21st Century By Judge DaveRosenberg
VIII

ROSENBERG'S RULES OF ORDER

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2 Introduction
The rules of procedure atmeetingsshould be simple enough for most people to understand. Unfortunately, that has not always been the case. Virtually all clubs, associations, boards, councils and bodies followa set ofrules—Robert’sRules ofOrder—which are embodied in a small, but complex, book. Virtually no one I know has actually read this book cover to cover. Worse yet, the book was written for another time and for another purpose. If one is chairing or running a parliament, then Robert’s Rules of Order is a dandy and quite useful handbook for procedure in that complex setting. On the other hand, if one is running a meeting of say, a five-member body with a few members of the public in attendance, a simplified version of the rules of parliamentary procedure is in order.

Hence, the birth of Rosenberg’s Rules of Order.

What follows is my version of the rules of parliamentary procedure, based on my decades of experience chairing meetings in state and local government. These rules have been simplified for the smaller bodieswe chair orinwhichwe participate,slimmed down forthe 21st Century, yet retaining the basic tenets of order to which we have grown accustomed. Interestingly enough, Rosenberg’s Rules has found a welcoming audience. Hundreds of cities, counties, special districts, committees, boards, commissions, neighborhood associations and private corporations and companies have adopted Rosenberg’s Rules in lieuofRobert’sRulesbecause theyhavefoundthempractical, logical, simple, easy to learn and user friendly.

This treatise on modern parliamentary procedure is built on a foundation supported by the following four pillars:

1. Rulesshould establish order.The first purpose ofrules of parliamentary procedure is to establish a framework for the orderly conduct of meetings.

2. Rulesshould be clear. Simple ruleslead towider understanding and participation.Complex rules create two classes:those who understand and participate; and those who do not fully understand and do not fully participate.

3. Rulesshould be user friendly.Thatis,the rulesmust be simple enough that the public is invited into the body and feels that it has participated in the process.

4. Rules should enforce the will of the majority while protecting the rights of the minority. The ultimate purpose of rules of procedure is to encourage discussion and to facilitate decision making by the body. In a democracy, majority rules. The rules must enable the majority to express itself and fashion a result, while permitting the minority to also express itself, but not dominate,while fully participating in the process.

Establishing a Quorum
The starting point for a meeting is the establishment of a quorum.

A quorum is defined as the minimum number of members of the body who must be present at a meeting for business to be legally transacted. The default rule is that a quorum is one more than half the body. For example, in a five-member body a quorum is three.

When the body has three members present, it can legally transact business.If the body has less than a quorum of members present, it cannot legally transact business.And even if the body has a quorum to begin the meeting, the body can lose the quorum during the meeting when a member departs (or even when a member leaves the dais). When that occurs, the body loses its ability to transact business until and unless a quorum is reestablished.

Thedefaultrule,identifiedabove,however,givesway toa specific rule of the body that establishes a quorum. For example, the rules of a particular five-member body may indicate that a quorum is four members for that particular body. The body must follow the rules it has established for its quorum.In the absence of such a specific rule, the quorum is one more than half the members of the body.

The Role of the Chair
While allmembers ofthe body should knowand understand the rules of parliamentary procedure, it isthe chair of the body who is charged with applying the rules of conduct of the meeting. The chair should be well versed in those rules. For all intents and purposes, the chair makes the final ruling on the rules every time the chair states an action. In fact, all decisions by the chair are final unless overruled by the body itself.

Since the chair runs the conduct of the meeting, it is usual courtesy forthe chairto play a less active role in the debate and discussion than othermembers of the body.This does not mean that the chair should not participate in the debate or discussion. To the contrary, as a member of the body, the chair has the full right to participate in the debate, discussion and decision-making of the body. What the chair should do, however, is strive to be the last to speak at the discussion and debate stage. The chair should not make or second a motion unless the chair is convinced that no other member of the body will do so at that point in time.

The Basic Format for an Agenda Item Discussion
Formal meetings normally have a written, often published agenda.

Informal meetings may have only an oral or understood agenda. In either case, the meeting is governed by the agenda and the agenda constitutes the body’s agreed-upon roadmap for the meeting. Each agenda item can be handled by the chair in the following basic format:

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First, the chairshould clearly announce the agenda item number and should clearly state what the agenda item subject is. The chair should then announce the format (which follows) that will be followed in considering the agenda item.

Second, following that agenda format, the chair should invite the appropriate person or persons to report on the item, including any recommendation that they might have. The appropriate person or persons may be the chair, a member of the body, a staff person, or a committee chair charged with providing input on the agenda item.

Third, the chair should ask members of the body if they have any technical questions of clarification. At this point, members of the body may ask clarifying questions to the person or persons who reported on the item, and that person or personsshould be given time to respond.

Fourth, the chairshould invite public comments, or if appropriate at a formal meeting,should open the public meeting for public input.

If numerousmembersofthe public indicate a desire tospeak to the subject, the chair may limit the time of public speakers.At the conclusion of the public comments, the chair should announce that public input has concluded (or the public hearing, as the case may be, is closed).

Fifth, the chair should invite a motion. The chair should announce the name of the member of the bodywho makesthe motion.

Sixth, the chair should determine if any member of the body wishes to second the motion. The chair should announce the name of the member of the body who seconds the motion. It is normally good practice for amotion to require a second before proceeding to ensure that it is not just one member of the body who is interested in a particular approach. However, a second is not an absolute requirement, and the chair can proceed with consideration and vote on a motion even when there is no second. This is a matter left to the discretion of the chair.

Seventh, if the motion is made and seconded,the chairshould make sure everyone understandsthe motion.

Thisis done in one of threeways:

1. The chair can ask the maker of the motion to repeat it;

2. The chair can repeat the motion; or

3. The chair can ask the secretary or the clerk of the body to repeat the motion.

Eighth, the chair should now invite discussion of the motion by the body. If there is no desired discussion, or after the discussion has ended, the chair should announce that the body will vote on the motion.If there has been no discussion or very brief discussion, then the vote on the motion should proceed immediately and there is no need to repeat the motion. If there has been substantial discussion, then itis normally besttomake sure everyone understandsthe motion by repeating it.

Ninth, the chair takes a vote. Simply asking for the “ayes” and then asking for the “nays” normally does this. If members of the body do not vote, then they “abstain.” Unless the rules of the body provide otherwise (or unless a super majority isrequired as delineated later in these rules), then a simple majority (as defined in law or the rules of the body as delineated later in these rules) determines whether the motion passes oris defeated.

Tenth, the chair should announce the result of the vote and what action (if any) the body has taken. In announcing the result, the chair should indicate the names of the members of the body, if any, who voted in the minority on the motion. This announcement might take the following form: “The motion passes by a vote of 3-2, with Smith and Jones dissenting. We have passed the motion requiring a 10-day notice for all futuremeetings of this body.”
Motions in General
Motions are the vehicles for decision making by a body.It is usually best to have a motion before the body prior to commencing discussion of an agenda item.This helpsthe body focus.

Motions are made in a simple two-step process. First, the chair should recognize the member of the body. Second, the member of the body makes a motion by preceding the member’s desired approachwith thewords“Imove…”
A typical motion might be: “I move that we give a 10-day notice in the future for all our meetings.”
The chair usually initiatesthe motion in one of three ways:

1. Inviting the members of the body to make a motion, for example, “A motion at this time would be in order.”

2. Suggesting a motion to the members of the body, “A motion would be in order that we give a 10-day notice in the future for all our meetings.”

3. Making the motion. As noted, the chair has every right as a member of the body to make a motion, but should normally do so only if the chair wishes to make a motion on an item but is convinced that no other member of the body is willing to step forward to do so at a particular time.

The Three Basic Motions
There are three motions that are the most common and recur often at meetings:

The basic motion. The basic motion isthe one that putsforward a decision for the body’s consideration. A basic motion might be: “I move that we create a five-member committee to plan and put on our annual fundraiser.”

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The motion to amend. If a member wants to change a basic motion that is before the body,they would move to amend it.A motion to amend might be: “I move that we amend the motion to have a 10-member committee.” A motion to amend takes the basic motion that is before the body and seeksto change it in someway.

The substitute motion. If a member wants to completely do away with the basic motion that is before the body, and put a new motion before the body, they would move a substitute motion. A substitute motion might be: “I move a substitute motion that we cancel the annual fundraiser this year.”
“Motionsto amend” and “substitute motions”are often confused, but they are quite different, and their effect(if passed) is quite different. A motion to amend seeks to retain the basic motion on the floor, but modify it in some way. A substitute motion seeks to throw out the basic motion on the floor, and substitute a new and different motion for it. The decision as to whether a motion is really a “motion to amend” or a “substitute motion” is left to the chair. So if a member makes what that member calls a “motion to amend,” but the chair determines that it is really a “substitute motion,” then the chair’s designationgoverns.

A “friendly amendment” is a practical parliamentary tool that is simple, informal,savestime and avoids bogging a meeting down with numerous formal motions. It works in the following way: In the discussion on a pending motion, it may appear that a change to the motion is desirable or may win support for the motion from some members. When that happens, a member who has the floor may simply say, “I want to suggest a friendly amendment to the motion.” The member suggests the friendly amendment, and if the maker and the personwho seconded themotionpendingon the floor accepts the friendly amendment, that now becomes the pending motion on the floor. If either the maker or the person who seconded rejects the proposed friendly amendment, then the proposer can formally move to amend.

Multiple Motions Before the Body
There can be up to three motions on the floor at the same time.

The chair can reject a fourthmotion until the chair has dealt with the three that are on the floor and has resolved them. This rule has practical value. More than three motions on the floor at any given time is confusing and unwieldy for almost everyone, including the chair.

When there are two or three motions on the floor (after motions and seconds) at the same time, the vote should proceed first on the last motion that is made. For example, assume the first motion is a basic “motion to have a five-member committee to plan and put on our annual fundraiser.” During the discussion of this motion, a member mightmake a secondmotion to“amend themainmotion to have a 10- member committee, not a five-member committee to plan and put on our annual fundraiser.” And perhaps, during that discussion, a member makes yet a third motion as a “substitute motion that we not have an annual fundraiser this year.” The proper procedure would be asfollows:

First, the chair would deal with the third (the last) motion on the floor, the substitute motion. After discussion and debate, a vote would be taken first on the third motion. If the substitute motion passed, it would be a substitute for the basic motion and would eliminate it. The first motion would be moot, as would the second motion (which sought to amend the first motion), and the action on the agenda item would be completed on the passage by the body of the third motion (the substitute motion). No vote would be taken on the first orsecond motions.

Second, ifthe substitutemotion failed,the chairwould then deal with the second (nowthe last)motion on the floor,themotion to amend.The discussion and debatewould focusstrictly on the amendment (should the committee be five or 10 members). If the motion to amend passed, the chair would then move to consider the main motion (the first motion) as amended. If the motion to amend failed, the chair would then move to consider the main motion (the first motion) in its original format, not amended.

Third, the chair would nowdeal with the first motion that was placed on the floor.The original motionwould either be in its original format (five-member committee), or if amended, would be in its amended format (10-member committee). The question on the floor for discussion and decision would be whether a committee should plan and put on the annual fundraiser.

To Debate or Not to Debate
The basic rule of motions is that they are subject to discussion and debate.Accordingly, basic motions, motions to amend, and substitute motions are all eligible, each in their turn, for full discussion before and by the body. The debate can continue as long as members of the body wish to discuss an item, subject to the decision of the chair that it is time to move on and take action.

There are exceptions to the general rule of free and open debate on motions. The exceptions all apply when there is a desire of the body to move on. The following motions are not debatable (that is,when the following motions are made and seconded,the chair must immediately call for a vote of the body without debate on the motion):

Motion to adjourn.Thismotion, if passed,requiresthe body to immediately adjourn to its next regularly scheduled meeting. It requires a simple majority vote.

Motion to recess. This motion, if passed, requires the body to immediately take a recess. Normally, the chair determines the length of the recess which may be a few minutes or an hour. It requires a simple majority vote.

Motion to fix the time to adjourn. This motion, if passed,requires the body toadjourn themeeting atthe specific time setin the motion.

For example,the motion might be:“I movewe adjourn this meeting at midnight.” It requires a simple majority vote.

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Motion to table. This motion, if passed, requires discussion of the agenda item to be halted and the agenda item to be placed on “hold.” The motion can contain a specific time in which the item can come back to the body.“I move we table this item until our regular meeting inOctober.”Orthemotion can contain no specific time forthe return of the item, in which case a motion to take the item off the table and bring it back to the body will have to be taken at a future meeting. A motion to table an item (or to bring it back to the body) requires a simple majority vote.

Motionto limit debate.Themost common formofthismotion isto say,“I move the previous question”or “I move the question”or “I call the question” or sometimes someone simply shouts out “question.” As a practical matter, when a member calls out one of these phrases, the chair can expedite matters by treating it as a “request” rather than as a formal motion. The chair can simply inquire of the body, “any further discussion?” If no one wishes to have further discussion, then the chair can go right to the pending motion that is on the floor.

However, if even one person wishes to discuss the pending motion further, then at that point, the chair should treat the call for the “question” as a formal motion, and proceed to it.

When a member of the body makes such a motion (“I move the previous question”), the member is really saying: “I’ve had enough debate. Let’s get on with the vote.”When such a motion is made, the chair should ask for a second,stop debate, and vote on the motion to limit debate. The motion to limit debate requires a two-thirds vote of the body.

Note: A motion to limit debate could include a time limit. For example: “I move we limit debate on this agenda item to 15 minutes.” Even in thisformat, the motion to limit debate requires a twothirds vote of the body. A similar motion is a motion to object to consideration of an item. This motion is not debatable, and if passed, precludes the body from even considering an item on the agenda. It also requires a two-thirds vote.

Majority and Super Majority Votes
In a democracy, a simple majority vote determines a question.A tie votemeansthemotion fails.So in a seven-member body, a voteof 4- 3 passesthe motion.Avote of 3-3with one abstention meansthe motion fails. If one member is absent and the vote is 3-3, the motion still fails.

All motions require a simple majority, but there are a few exceptions.

The exceptions come up when the body is taking an action which effectively cuts off the ability of a minority of the body to take an action or discuss an item.These extraordinary motionsrequire a twothirds majority (a super majority) to pass:

Motion to limit debate. Whether a member says, “I move the previous question,” or “I move the question,” or “I call the question,” or “I move to limit debate,” it all amounts to an attempt to cut off the ability of the minority to discuss an item, and it requires a two-thirds vote topass.

Motion to close nominations. When choosing officers of the body (such as the chair), nominations are in order either from a nominating committee or from the floor of the body. A motion to close nominations effectively cuts off the right of the minority to nominate officers and it requires a two-thirds vote to pass.

Motiontoobjecttotheconsiderationofaquestion.Normally,such a motion is unnecessary since the objectionable item can be tabled or defeated straight up. However, when members of a body do not even want an item on the agenda to be considered,then such a motion is in order.It is not debatable, and it requires a two-thirds vote to pass.

Motion to suspend the rules. This motion is debatable, butrequires a two-thirds vote to pass. If the body has its own rules of order, conduct or procedure, this motion allows the body to suspend the rules for a particular purpose. For example, the body (a private club) might have a rule prohibiting the attendance at meetings by non-club members.A motion to suspend the rules would be in orderto allow a non-club member to attend a meeting of the club on a particular date or on a particular agenda item.

Counting Votes
The matter of counting votes starts simple, but can become complicated.

Usually, it’s pretty easy to determine whether a particular motion passed or whether it was defeated.If a simple majority vote is needed to pass a motion, then one vote more than 50 percent of the body is required. For example, in a five-member body, if the vote is three in favor and two opposed, the motion passes. If it is two in favor and three opposed,themotion is defeated.

If a two-thirds majority vote is needed to pass a motion, then how many affirmative votes are required? The simple rule of thumb is to count the “no”votes and double that count to determine how many “yes” votes are needed to pass a particular motion. For example, in a seven-member body,if twomembers vote“no”then the“yes”vote of at least four members is required to achieve a two-thirds majority vote to passthemotion.

What about tie votes?In the event of a tie, the motion alwaysfailssince an affirmative vote isrequired to pass anymotion.For example, in a five-member body, if the vote is two in favor and two opposed, with onemember absent,themotion is defeated.

Vote counting starts to become complicated when members vote“abstain”or in the case of a written ballot, cast a blank (or unreadable) ballot. Do these votes count, and if so, how does one count them? The starting point is alwaysto check the statutes.

In California, for example, for an action of a board of supervisors to be valid and binding, the action must be approved by a majority of the board. (California Government Code Section 25005.) Typically, this means three of the fi e members of the board must vote affir matively in favor of the action. A vote of 2-1 would not be sufficient. A vote of 3-0with two abstentionswould be sufficient.In general lawcitiesin

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California, as another example, resolutions or orders for the payment of money and all ordinances require a recorded vote of the total members of the city council. (California Government Code Section 36936.) Cities with charters may prescribe their own vote requirements. Local elected officials are always well-advised to consult with their local agency counsel on how state law may affect the vote count.

After consulting state statutes, step number two is to check the rules of the body. If the rules of the body say that you count votes of “those present” then you treat abstentions one way. However, if the rules of the body say that you count the votes of those “present and voting,” then you treat abstentions a different way. And if the rules of the body are silent on the subject, then the general rule of thumb (and default rule) is that you count all votes that are “present and voting.” Accordingly, under the “present and voting” system, you would NOT count abstention votes on the motion. Members who abstain are counted for purposes of determining quorum (they are “present”), but you treat the abstention votes on the motion as if they did not exist (they are not “voting”). On the other hand, if the rules of the body specifically say that you count votes of those “present” then you DO count abstention votes both in establishing the quorum and on the motion. In this event, the abstention votes act just like “no” votes.

How does this work in practice?
Hereareafewexamples.

Assume that a five-member city council is voting on a motion that requires a simple majority vote to pass and assume further that the body has no specific rule on counting votes. Accordingly, the default rule kicks in and we count all votes of members that are “present and voting.” If the vote on the motion is 3-2, the motion passes. If the motion is 2-2 with one abstention, the motion fails.

Assume a five-member city council voting on a motion that requires a two-thirds majority vote to pass, and further assume that the body has no specific rule on counting votes. Again, the default rule applies. If the vote is 3-2, the motion fails for lack of a two-thirds majority. If the vote is 4-1, the motion passes with a clear two-thirds majority. A vote of three “yes,” one “no” and one “abstain” also results in passage of the motion. Once again, the abstention is counted only for the purpose of determining quorum, but on the actual vote on the motion, it is as if the abstention vote never existed — so an effective 3-1 vote is clearly a two-thirds majority vote.

Now, change the scenario slightly. Assume the same five-member city council voting on a motion that requires a two-thirds majority vote to pass, but now assume that the body DOES have a specific rule requiring a two-thirds vote of members “present.” Under this specific rule, we must count the members present not only for quorum but also for the motion. In this scenario, any abstention has the same force and effect as if it were a “no” vote. Accordingly, if the votes were three “yes,” one “no” and one “abstain,” then the motion fails. The abstention in this case is treated like a “no” vote and effective vote of 3-2 is not enough to pass two-thirds majority muster.

Now, exactly how does a member cast an “abstention” vote? Any time a member votes “abstain” or says, “I abstain,” that is an abstention. However, if a member votes “present” that is also treated as an abstention (the member is essentially saying,“Count me for purposes of a quorum, but my vote on the issue is abstain.”) In fact, any manifestation of intention not to vote either “yes” or “no” on the pending motion may be treated by the chair as an abstention. If written ballots are cast, a blank or unreadable ballot is counted as an abstention as well.

Can a member vote “absent” or “count me as absent?” Interesting question. The ruling on this is up to the chair. The better approach is for the chair to count this as if the member had left his/her chair and is actually “absent.” That, of course, affects the quorum. However, the chair may also treat this as a vote to abstain, particularly if the person does not actually leave the dais.

TheMotiontoReconsider
There is a special and unique motion that requires a bit of explanation all by itself; the motion to reconsider. A tenet of parliamentary procedure is finality. After vigorous discussion, debate and a vote, there must be some closure to the issue. And so, after a vote is taken, the matter is deemed closed, subject only to reopening if a proper motion to consider is made and passed.

A motion to reconsider requires a majority vote to pass like other garden-variety motions, but there are two special rules that apply only to the motion to reconsider.

First, is the matter of timing. A motion to reconsider must be made at the meeting where the item was first voted upon. A motion to reconsider made at a later time is untimely. (The body, however, can always vote to suspend the rules and, by a two-thirds majority, allow a motion to reconsider to be made at another time.)
Second, a motion to reconsider may be made only by certain members of the body. Accordingly, a motion to reconsider may be made only by a member who voted in the majority on the original motion. If such a member has a change of heart, he or she may make the motion to reconsider (any other member of the body
— including a member who voted in the minority on the original motion — may second the motion). If a member who voted in the minority seeks to make the motion to reconsider, it must be ruled out of order. The purpose of this rule is finality. If a member of minority could make a motion to reconsider, then the item could be brought back to the body again and again, which would defeat the purpose of finality.

If the motion to reconsider passes, then the original matter is back before the body, and a new original motion is in order. The matter may be discussed and debated as if it were on the floor for the first time.

31 01247.0001 2001339.3
Courtesy and Decorum
The rules of order are meant to create an atmosphere where the members of the body and the members of the public can attend to business efficiently, fairly and with full participation. At the same time, it is up to the chair and the members of the body to maintain common courtesy and decorum. Unlessthe setting is very informal, it is always bestfor only one person at a time to have the floor, and it is always best for every speaker to be first recognized by the chair beforeproceeding tospeak.

The chair should always ensure that debate and discussion of an agenda item focuses on the item and the policy in question, not the personalities of the members of the body.Debate on policy is healthy, debate on personalities is not. The chair has the right to cut off discussion that istoo personal, istoo loud, oristoo crude.

Debate and discussion should be focused, but free and open.In the interest of time, the chair may, however, limit the time allotted to speakers, including members of the body.

Can a member of the body interrupt the speaker? The general rule is “no.” There are, however, exceptions. A speaker may be interrupted forthe following reasons:

Privilege. The proper interruption would be,“point of privilege.” The chair would then ask the interrupter to “state your point.” Appropriate points of privilege relate to anything that would interfere with the normal comfort of the meeting. For example, the room may be too hot or too cold, or a blowing fan might interfere with a person’s ability to hear.

Order. The proper interruption would be,“point of order.” Again, the chair would ask the interrupter to“state your point.”Appropriate points of order relate to anything that would not be considered appropriate conduct of the meeting. For example, if the chair moved on to a vote on a motion that permits debate without allowing that discussion or debate.

Appeal. If the chair makes a ruling that a member of the body disagrees with, that member may appeal the ruling of the chair. If the motion is seconded, and after debate, if it passes by a simple majority vote,then the ruling of the chair is deemed reversed.

Call for orders of the day. This is simply another way of saying, “return to the agenda.” If a member believes that the body has drifted from the agreed-upon agenda, such a call may be made. It does not require a vote, and when the chair discoversthat the agenda has not been followed, the chair simply reminds the body to return to the agenda item properly before them.If the chair fails to do so, the chair’s determination may be appealed.

Withdraw a motion. During debate and discussion of a motion, the maker of the motion on the floor, at any time, may interrupt a speaker to withdraw his or her motion from the floor. The motion is immediately deemed withdrawn, although the chair may ask the person who seconded the motion if he or she wishes to make the motion, and any other member may make the motion if properly recognized.

Special Notes About Public Input
The rules outlined above will help make meetings very publicfriendly. But in addition, and particularly for the chair, it is wise to remember three special rules that apply to each agenda item:

RuleOne:Tellthe publicwhat the bodywill be doing.

RuleTwo:Keepthe public informedwhile the body is doing it.

Rule Three: When the body has acted, tell the public what the body did.

01247.0001 2001339.3 32
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AGENDA REPORT
MEETING DATE: May 13, 2025
TITLE: Auditor's Annual Financial Report and Related Documents for the Fiscal Year Ended June 30, 2024
PRESENTED BY: Christine Clayton, Finance Director
RECOMMENDATION: Receive and File the Auditor's Annual Financial Report and related documents for the Fiscal Year ended June 30, 2024.
2030 VISION STATEMENT:

This staff report supports City Council Goal #1, “Ensuring Our Fiscal Viability” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations.

BACKGROUND:

Each year, the City has an independent audit conducted of its financial statements and related internal control procedures. The audit for the fiscal year ended June 30, 2024, has been completed and the Annual Financial Report issued by the City’s auditor, Lance, Soll & Lunghard, LLP.

DISCUSSION:

One of the key aspects of any annual financial audit is the Independent Auditor’s Report, which is provided on page 1 of the Annual Audit Report (Exhibit A). The Independent Auditor’s Report provides its opinion on whether or not the financial statements fairly present, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information as of the end of the fiscal year, and the respective changes in financial position and cash flows, where applicable, in conformance with Generally Accepted Accounting Principles (GAAP). The resulting “opinion letter” is either unmodified or modified. The “opinion letter” received by the City for its financial statements for the period ended June 30, 2024, is unmodified, indicating that the financial statements fairly represent the City’s financial position in accordance with GAAP.

In addition to the Annual Financial Report, the independent auditor issues other related documents, which are summarized below:
· Audit Communication Letter (Exhibit B)
The audit communications letter discusses the auditor’s responsibilities under Government Auditing Standards and any significant issues encountered during the audit that warrant disclosure. None of the misstatements detected as a result of the audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole.

The auditors indicated there were no significant difficulties dealing with management in performing and completing their audit. There were no disagreements with management in regard to financial

accounting, reporting or auditing that could be material to the financial statements taken as a whole. · Internal Control & Compliance Report (Exhibit C)
The Internal Control & Compliance Report identifies any material internal control deficiencies that impact the financial statements. The results of the tests performed by the City auditors did not identify any deficiencies in internal control that are required to be reported under Government Auditing Standards. In addition, the results of the Auditor’s tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

ENVIRONMENTAL IMPACT:

N/A
FISCAL IMPACT:

There is no fiscal impact associated with the receipt of the Annual Financial Report and related documents for the year ended June 30, 2024.

CITY OF GRAND TERRACE
FOR THE FISCAL YEAR ENDED JUNE 30, 2024 ANNUAL FINANCIAL REPORT WWW.LSLCPAS.COM

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CITY OF GRAND TERRACE

GRAND TERRACE, CALIFORNIA
Annual Financial Report
With Report on Audit By
Independent Certified Public Accountants
For the Year Ended June 30, 2024
3

CITY OF GRAND TERRACE

GRAND TERRACE, CALIFORNIA
Annual Financial Report With Report on Audit By Independent Certified Public Accountants For the Year Ended June 30, 2024
Table of Contents
FINANCIAL SECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Independent Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Management’s Discussion and Analysis (Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Basic Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Government-Wide Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Government Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position . . . . . . . . 35 Statement of Revenues, Expenditures and Changes in Fund Balances . . . . . . . . . . . . . . . . . . . . . . . . . 36 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Proprietary Fund Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Statement of Net Position - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds . . . . . . . . . . . . . 41 Statement of Cash Flows - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Notes to The Basic Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Page
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Table of Contents
FINANCIAL SECTION (continued)
Page
Required Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Schedules of Proportationate Share of Net Pension Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Schedule of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Schedule of Changes in the Total OPEB Liability/(Asset) and Related Ratios . . . . . . . . . . . . . . . . . . 74 Budgetary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

General Fund and Major Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Housing Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 ARPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Nonmajor Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances . . . . . . . . . 90 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

Nonmajor Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Street Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Storm Drain Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Park Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 AB 3229 COPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Air Quality Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 State Gas Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Traffic Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Facilities Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Measure I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 CDBG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Special Districts Landscape & Lighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Spring Mountain Ranch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Cal Recycle Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Senior Bus Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Public, Educational & Government Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 Highway Safety Improvement Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Emergency Management Preparation Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 RMRA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 National Opioid Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual:

Capital Project Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Capital Improvements - Streets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Capital Projects Bond Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Capital Projects - Parks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 Capital Projects - Commerce Way Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 5

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6

FINANCIAL SECTION
7

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8

INDEPENDENT AUDITORS’ REPORT
Independent Auditor’s Report
To Honorable Mayor and Members of the City Council
City of Grand Terrace
Grand Terrace, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Grand Terrace (the “City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2024, and the changes in financial position and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
9

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

To Honorable Mayor and Members of the City Council
City of Grand Terrace
Grand Terrace, California
10

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and required pension and other postemployment benefits schedules, as listed on the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 28, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Irvine, California
March 28, 2025
To Honorable Mayor and Members of the City Council
City of Grand Terrace
Grand Terrace, California
11

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12

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
Management’s Discussion and Analysis (Unaudited)
Financial Highlights for Year Ended June 30, 2024
13

Introduction
This Management’s Discussion and Analysis provides an overview of the City of Grand Terrace financial activities for the fiscal year ended June 30, 2024. The information presented herein should be considered in conjunction with the City’s financial statements identified in the accompanying table of contents.

Overview of Financial Statements
The Financial Section of the Annual Comprehensive financial Report includes the following sections:

1. Independent Auditor’s Report to the Honorable Mayor and Members of the City Council

2. This introductory commentary, Management’s Discussion and Analysis (MD&A)

3. Basic Financial Statements, including:
a. Government-Wide Financial Statements
b. Fund Financial Statements
c. Notes to the Financial Statements

4. Other Supplementary Information
a. Non-major governmental funds
b. Internal service funds
c. Fiduciary funds
The Financial Statements
The Basic Financial Statements are comprised of the Government-wide Financial Statements and the Fund Financial Statements. These two sets of financial statements provide two different perspectives of the City’s financial activities and financial position. The accompanying Notes to the Basic Financial Statements are an integral part of these financial statements.

The Government-wide Financial Statements provide a long-term view of the City’s activities as a whole. The Statement of Net Position provides information about financial position, including capital assets and long-term liabilities on the full accrual basis, similar to that used by commercial enterprises. The Statement of Activities provides information about the City’s revenues and expenses, also on the full accrual basis, with the emphasis on measuring the net revenues or expenses of City programs. Information is presented both in total and separately for governmental activities, which are generally tax and grant supported and business-type activities which are typically supported by user fees.

The Fund Financial Statements report the City’s operations in more detail than the government-wide statements. The City, like other state and local governments, uses fund accounting to ensure and demonstrate finance-related legal compliance. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds:
• Governmental funds account for most of the City’s basic services and focus primarily on short-term activities by measuring current revenues and expenditures and excluding capital assets and long-term obligations. The City maintains several individual governmental funds organized according to their type (special revenue and capital projects). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, Housing Authority Fund, American Rescue Plan Act Fund, which are major funds. Data from the remaining non-major governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements beginning on page 82.

CITY OF GRAND TERRACE
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
14

• Proprietary funds are generally used to account for services for which the City charges customers – either outside customers, or internal departments or programs of the City. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The City maintains the following two types of proprietary funds:
◦ Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the water utility and solid waste and recycling. The City’s Waste Water Disposal Fund is the only enterprise fund and is presented as a major fund.

Executive Summary - Financial Highlights
• The assets and deferred outflows of resources of the City of Grand Terrace exceeded its liabilities and deferred inflows of resources on June 30, 2024 by $25.6 million (net position). • The City’s net position increased by $2.4 million from the previous fiscal year from $23.2 million to $25.6 million.
• As of June 30, 2024, the City of Grand Terrace’s governmental funds had reported combined ending fund balances of $16.8 million, an increase of $2.9 million from the previous fiscal year. Of this total, approximately $9.3 million, or 55.1% of the total fund balance, are either non-spendable or restricted due to the nature of the restriction.
• The total debt of the City showed a net increase of about $0.4 million from the prior fiscal year due to the increase in both the City’s OPEB liability and net pension liability. During FY 2023-24, the OPEB obligation of the City increased by about $0.1 million from $1.2 million to $1.3 million. The City’s Net Pension Liability increased by about $0.2 million from the prior year from $5.9 million to $6.1 million in FY 2023-24. • The General Fund had a year-end fund balance of $10.5 million on June 30, 2024. This was a increase of $3.3 million.

Using the Accompanying Financial Statements
Included in the accompanying report are fund financial statements. For governmental activities, the fund financial statements explain how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City's operations in more detail than the government-wide statements by providing information about the City's most significant funds.

Overview of the Financial Statements
The annual report consists of four parts - management's discussion and analysis (this section), the basic financial statements, required supplementary information and an optional section that presents combining statements for nonmajor governmental funds. The basic financial statements include two kinds of statements that present different views of the City:
• The first two statements are government-wide financial statements that provide both long-term and shortterm information about the City's overall financial status. • The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City's operations in more detail than the government-wide statements. • The governmental funds statements explain how general government services like public safety were financed in the short term as well as what remains for future spending.

CITY OF GRAND TERRACE
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
15

• Proprietary funds statements offer short and long-term financial information about the activities the government operates like a business.
• The financial statements also include notes that provide additional explanatory information regarding the financial statements, as well as more detailed data. The statements are followed by a section of required supplementary spreadsheets that provide additional financial and budgetary information.

Reporting the City as a Whole
The accompanying government-wide financial statements include two statements that present financial data for the City as a whole. The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities. The statement of net position includes all of the City’s assets and liabilities, as well as any deferred outflows and inflows. The statement of activities includes all current year revenues and expenses regardless of when cash is received. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies.

These two statements report the City's net position and changes in net position that transpired during the fiscal year. The City's net position - the difference between assets and liabilities is one way to measure the City's financial health, or financial position. Over time, increases and decreases in the City's net position are one indicator of whether its financial health is improving or deteriorating. Other nonfinancial factors, however, should also be considered such as changes in the City's property tax or sales tax base and the condition of the City's roads, to assess the overall health of the City.

The Statement of Net Position and the Statement of Activities are divided into two types of activities:
• Governmental activities - Most of the City's basic services such as public safety, public works, community development, and general government are reported here. Sales taxes, property taxes, state subventions, and other revenues finance most of these activities.
• Business-type activity - The Waste Water Disposal Fund accounts for the remaining assets and liabilities of the fund that used to account for the provision of waste water disposal services to the residents and businesses within the City of Grand Terrace. The City of Colton/ Colton Utility Authority now provide wastewater disposal services for the City’s residents and businesses.

Reporting the City’s Most Significant Funds
The fund financial statements provide detailed information about the City's most significant funds - not the City as a whole. Some funds are required to be established by State law or by bond covenants. However, the City establishes many other funds to help it control and manage financial resources for particular purposes or to demonstrate that it is meeting oversight responsibilities for using certain taxes, grants, or other money. The City's two types of funds - governmental and proprietary - use different accounting approaches. ▪ Governmental funds - Most of the City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances remaining at year end that are available for spending. These funds are reported using the modified accrual accounting method, which measures cash and all other current financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps to determine whether there are greater or fewer financial resources that can be spent in the near future to finance the City's programs. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

CITY OF GRAND TERRACE
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
16

▪ Proprietary funds - When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City's enterprise fund is the same as the business-type activities reported in the government-wide statements, but provides more detail and additional information, such as cash flows, for the proprietary fund. The City does not use internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City's other programs and activities.

Reporting the City’s Fiduciary Responsibilities
The City is an agent for certain assets held for, and under the control of, other organizations and individuals.

These activities are excluded from the City's other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

Financial Position Summary
Table 1 - Condensed Statements of Net Position
A summarized comparison of the City’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position as of June 30, 2024 :

Governmental Activities Business-Type Activities Total
2024 2023 2024 2023 2024 2023
Assets:

Cash and investments $ 16,302,295 $ 13,345,175 $ 1,698,580 $ 1,634,002 $ 18,000,875 $ 14,979,177 Receivables and other
assets 2,819,907 3,004,011 — — 2,819,907 3,004,011
Capital assets 8,989,110 8,794,930 4,176,848 4,265,418 13,165,958 13,060,348 Total assets 28,111,312 25,144,116 5,875,428 5,899,420 33,986,740 31,043,536 Deferred outflows of
resources 2,588,367 2,693,884 — — 2,588,367 2,693,884
Liabilities:

Current and other liabilities 1,704,711 1,453,888 6,875 6,875 1,711,586 1,460,763 Long-term liabilities 7,721,604 7,199,514 — — 7,721,604 7,199,514 Total liabilities 9,426,315 8,653,402 6,875 6,875 9,433,190 8,660,277 Deferred inflows of
resources 1,542,824 1,869,978 — — 1,542,824 1,869,978
Net position:

Net investment in capital
assets 8,947,330 8,675,572 4,176,848 4,265,418 13,124,178 12,940,990 Restricted 8,050,766 8,014,295 — — 8,050,766 8,014,295
Unrestricted 2,732,444 624,753 1,691,705 1,627,127 4,424,149 2,251,880 Total net position $ 19,730,540 $ 17,314,620 $ 5,868,553 $ 5,892,545 $ 25,599,093 $ 23,207,165

CITY OF GRAND TERRACE
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
17

$13.1 million (51.3%) of the net position reflects the City's investment in capital assets, less any related debt used to acquire those assets that are still outstanding (net investment in capital assets). Since these assets are used to provide services to the citizens, they are not available for future spending. An additional $8.1 million (31.4%) represents resources that are subject to external restrictions on how they may be used. The unrestricted net position resulted in a positive amount of $4.4 million (17.3%). The City’s net position increased by $2.4 million from $23.2 million in FY 2022-23 to $25.6 million during FY 2023-24.

Activities and Changes in Net Position
Table 2 - Condensed Statement of Activities
A summarized comparison of the City’s Revenues, Expenses, Business-Type Activities, and Net Position as of June 30, 2024 :

Governmental Activities Business-type Activities Total
2024 2023 2024 2023 2024 2023
Revenues:

Program revenues:

Charges for services $ 1,330,900 $ 1,087,928 $ — $ — $ 1,330,900 $ 1,087,928 Operating grants and
contributions 1,366,881 2,141,595 — — 1,366,881 2,141,595 Capital grants and
contributions 706,959 730,607 — — 706,959 730,607
General revenues:

Property taxes 4,918,295 4,488,805 — — 4,918,295 4,488,805 Transient occupancy taxes — — — — — —
Sales taxes 3,679,516 1,441,471 — — 3,679,516 1,441,471 Franchise taxes 651,747 633,302 — — 651,747 633,302
Business license taxes 100,772 101,971 — — 100,772 101,971 Other 947,142 1,868,456 64,578 32,050 1,011,720 1,900,506 Total revenues 13,702,212 12,494,135 64,578 32,050 13,766,790 12,526,185 Expenses:

General government 2,164,876 1,514,961 — — 2,164,876 1,514,961 Public safety 2,964,772 2,809,402 — — 2,964,772 2,809,402 Economic development 597,704 5,876 — — 597,704 5,876
Cultural and recreation 1,461,227 806,394 — — 1,461,227 806,394 Public works 4,097,713 4,878,395 — — 4,097,713 4,878,395 Waste Water Disposal — — 88,570 88,570 88,570 88,570
Total expenses 11,286,292 10,015,028 88,570 88,570 11,374,862 10,103,598 Changes in net position 2,415,920 2,479,107 (23,992) (56,520) 2,391,928 2,422,587 Net position - beginning 17,314,620 14,835,513 5,892,545 5,949,065 23,207,165 20,784,578 Net position - ending $ 19,730,540 $ 17,314,620 $ 5,868,553 $ 5,892,545 $ 25,599,093 $ 23,207,165 The increase or decrease in net position can provide an indication as to whether the overall financial position of the City improved or worsened during the year. The total net position of the City on June 30, 2024 increased by $2.4 million or 10.3% compared to the net position of the City at the end of FY 2022-2023. Taken separately, the net position of governmental activities increased by $2.4 million, while the net position of business-type activities decreased by $23,992. Total expenses of $11.4 million were offset by total revenues of $13.8 million. In the Statement of Activities, expenses do not include the cost of assets capitalized during the year or payments made on principal of outstanding debt. Depreciation is shown for governmental funds on this table, but the expense is not recorded in each individual fund.

CITY OF GRAND TERRACE
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
18

After the deduction of capitalized assets, the next largest component in changes to net position is the actual increase or decrease in fund balances resulting from operations. For governmental funds there was a net increase of $2.9 million. Of this amount, a net decrease of $0.4 million is attributable to the nonmajor funds, a net increase of $6,608 to the Housing Authority, a net decrease of $38,445 to the American Recovery Plan Act Fund with the difference being a net increase to the General Fund of $3.3 million.

Governmental Activities
The following table shows the cost of each of the City’s major programs and their net cost after subtracting fees and other direct revenue generated by the activities. The net cost reflects the financial burden that was placed on the City taxpayers by each of the programs.
2024 2023
Total Cost of
Services
Net Cost of
Services
Total Cost of
Services
Net Cost of
Services
General government $ 2,164,876 $ 1,112,101 $ 1,514,961 $ (488,129) Public safety 2,964,772 2,765,517 2,809,402 2,557,601
Economic development 597,704 597,704 5,876 5,876
Cultural and recreation 1,461,227 1,364,394 806,394 721,637 Public works 4,097,713 2,041,836 4,878,395 3,257,943
Total $ 11,286,292 $ 7,881,552 $ 10,015,028 $ 6,054,928 This table shows the cost of all governmental activities this year was $11.3 million. General tax dollars paid for approximately (69.8)% percent of this cost. Fees, grants and contributions and fund balances at the beginning of the fiscal year funded the balance of the cost of governmental activities.

CITY OF GRAND TERRACE
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
19

Figure 1 - Expenditures & Program Revenues - Governmental Activities Revenues
Expenses Program Revenues
General
government
Public safety Economic
development
Cultural and
recreation
Public works
$—
$1,000,000
$2,000,000
$3,000,000
$4,000,000
Figure 2 - Revenue by Source - Governmental Activities
Charges for services, 9.7%
Operating grants and contributions, 10.0%
Capital grants and contributions, 5.2%
Property taxes, 35.9%
Other taxes, 26.9%
Grants and contributions not restricted, 4.8%
Unrestricted investment earnings, 0.7%
Other revenue, 6.9%

CITY OF GRAND TERRACE
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
20

Business-Type Activities
In March 2014, the cities of Grand Terrace and Colton entered into sewer services and lease agreements for fifty (50) years. These agreements extricated Grand Terrace from the wastewater collection business. In accordance with the Sewer Services Agreement with the City of Colton/ Colton Utility Authority, the provision of sewer services for the City’s residents and businesses are no longer being directly provided by the City of Grand Terrace. Hence, the City of Grand Terrace no longer receives sewer services revenues from the City’s residents and businesses.

Likewise, sewer- services related expenditures are also no longer being incurred and recorded in the City’s Waste Water Disposal Fund. The following were the only financial- related activities recorded in the City’s Waste Water Disposal Fund during FY 2023-24:

Annual depreciation amounting to $88,570 of all wastewater sewer capital assets which are still owned by the City.

Figure 3 - Expenditures & Program Revenues - Business-Type Activities Revenue
Expenses Program Revenues
Waste Water Disposal
$—
$20,001
$40,002
$60,003
$80,004
$100,005

CITY OF GRAND TERRACE
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
21

Figure 4 - Revenue by Source - Business-Type Activities Charges for services
Operating grants and contributions
Capital grants and contributions
Property taxes
Transient occupancy taxes
Sales taxes
Franchise taxes
Business license taxes
Utility users tax
Other taxes
Other
Financial Analysis of Funds
In addition to the statements described above, the City also maintains financial records at the funds level for budgetary control. Individual funds are generally established to track the resources and operating results for the general fund and specific restricted programs.

Governmental Funds
General Fund
The General Fund is the main operating fund of the City. At the end of FY 2023-24, the fund balance of the General Fund increased by $3.3 million from a fund balance of $7.2 million on June 30, 2023 to $10.5 million at June 30, 2024. Total fund balance in all Governmental Funds was $16.8 million.

The General Fund Revenues and Expenditures are shown below:
2023-2024 2022-2023
Increase
(Decrease) in
Fund Balance
Revenues $ 11,175,713 $ 9,314,126 $ 1,861,587
Expenditures (7,884,107) (7,353,143) (530,964)
Other Sources (Uses) (3,570) 2,873 (6,443)
Net Change in Fund Balance 3,288,036 1,963,856 1,324,180 Beginning Fund Balance 7,219,257 5,255,401 1,963,856
Ending Fund Balance $ 10,507,293 $ 7,219,257 $ 3,288,036

CITY OF GRAND TERRACE
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
22

The significant highlights in activities - revenues and expenditures of the City's General Fund from the prior year are as follows:
• General Fund expenditures and transfers out were exceeded by revenues by $3.3 million. Total General Fund revenues increased by $1.9 million or 20.0% from FY 2022-23. • Property taxes increased by 9.6% from $4.5 million to $4.9 million, a difference of about $0.4 million. • Gross Sales tax increased by $2.2 million from $1.4 million to $3.7 million compared to the previous fiscal year.
• Charges for service, including licenses and permits in FY 2023-24 increased by 14.5 percent from $1,570,988 to $1,799,008. The revenues belonging to this category which include Franchise Fees, Business License Tax, Dog License, Engineering Fees, Public Works Permits, Construction Permits, Building Safety Plan Review, Environmental Assessment Reports & Sports League Fees Surcharge were consistent with the previous year.
• Fines and forfeitures received during FY 2023-24 decreased by $5,768 or 12.7 percent from $45,441 during FY 2022-23 to $51,209, during FY 2023-24. The increase in this category resulted from increases and decreases from the collections of the various categories. • The overall operating expenditures of the General Fund increased by about 7.2% over the prior year from $7.4 million to $7.9 million. The increase of $530,964 between FY 2022-23 and FY 2023-24 was due to a combination of increased expenditures in some functional categories of government and decreased expenditures in other functional categories of government. • There was decreased spending in the following function during FY 2023-24 compared to FY 2022-23 General Government category by $124,739. However, there was increased spending during FY 2023-24 in the following functions of government over the prior fiscal year– Capital Outlay increased by $165,246, Public Works by $247,848, Debt Service by $20,617, Cultural & Recreation by $61,296 and Public Safety increased by $160,696.
• Of the total $7.9 million in General Fund operating expenditures, total general government expenditures represented 24.2%, public works expenditures represented 22.3%, public safety expenditures represented 35.0%, cultural & recreation represented 10.3%, capital outlay represented 7.0% and debt service represented 1.0%.

Other major governmental funds include the Housing Authority Fund and the American Recovery Plan Act Fund.

The fund balance of the Housing Authority Fund increased by $6,608 during FY 2023-24. This fund accounts for the housing assets because of the dissolution of community redevelopment agency of the City.

The fund balance of the American Recovery Plan Act Fund decreased by $38,445 due expenditures exceeding revenues during FY2023-24.

Nonmajor Funds
The Nonmajor funds, as listed in the table of contents of this report, include Gas Tax, Measure I, the Capital Improvement Funds, and most of the special revenue funds.

CITY OF GRAND TERRACE
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
23

Capital Assets
As of June 30, 2024, the City had invested $13.2 million in a broad range of capital assets, including buildings, parks and park improvements, computer and maintenance equipment, vehicles, sewer collection systems, streets, sidewalks and storm drains. The City is exempt by provisions of Governmental Accounting Standards Board (GASB) Statement No. 34 from including the valuation of old City infrastructure prior to the implementation of GASB Statement No. 34.

Table 3 - Summary of Activities - Capital Assets
Governmental Activities Business-type Activities Total
2024 2023 2024 2023 2024 2023
Capital assets not subject to
depreciation/amortization:

Land $ 2,199,955 $ 2,194,955 $ — $ — $ 2,199,955 $ 2,194,955 Construction in progress 1,012,310 1,008,270 — — 1,012,310 1,008,270 Depreciable capital assets: — —
Buildings 1,541,764 1,569,078 2,238,668 2,283,369 3,780,432 3,852,447 Machinery, equipment, and
vehicles 461,444 361,283 1,139,751 1,160,761 1,601,195 1,522,044 Vehicles 401,251 104,087 752,071 766,502 1,153,322 870,589 Improvements other than
buildings 1,874,908 1,899,310 46,358 54,786 1,921,266 1,954,096 Infrastructure 1,426,760 1,507,476 — — 1,426,760 1,507,476 Subscription asset 70,718 150,471 — — 70,718 150,471
Total capital assets, net $ 8,989,110 $ 8,794,930 $ 4,176,848 $ 4,265,418 $ 13,165,958 $ 13,060,348 Long-Term Debt
As of June 30, 2024, the City had long-term liabilities outstanding of $7.7 million. The City’s net pension liability increased by $0.2 million from $5.9 million in the prior fiscal year to $6.1 million at the end of June 30, 2024. The City’s other post- employment benefits (OPEB) obligations increased by $0.2 million from $1.2 million at the end of FY 2022-23 to $1.4 million at the end of FY 2023-24. The City’s liability for long-term compensated absences increased by $46,725 compared to the prior fiscal year from $0.1 million to $0.2 million at the end of June 30, 2024. The City’s liability for subscriptions payable decreased by $77,578 from $0.1 million to $41,780 at the end of June 30, 2024.

Additional information on the City’s long-term debt can be found in the notes to the accompanying financial statements.

Table 4 - Long-Term Debt
2024 2023
Increase
(Decrease)
Net OPEB Obligation $ 1,401,835 $ 1,169,969 $ 231,866
Net Pension Liability 6,098,734 5,888,367 210,367
Subscriptions Payable 41,780 119,358 (77,578)
Compensated Absences 179,255 132,530 46,725
Total Outstanding Debt $ 7,721,604 $ 7,310,224 $ 411,380

CITY OF GRAND TERRACE
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
24

Economic Outlook
The City of Grand Terrace fiscal position in 2023-24 is sustainable and the city maintains funds in a reserve account that is the equivalent of two months of expenses), allowing the city to post its sixth consecutive year of economic growth based on; fiscal responsibility; development of needed infrastructure; adequate public safety and a diligent strategy for economic independence.

The $105,000,000 interchange project, which started construction in 2017 and was completed in 2020. The project leads to the heart of the city, creating a magnificent entrance to the City and its current and future commercial corridor. The completed interchange was designed to increase circulation by 30%, allowing over 40,000 cars per day to easily access Barton Rd. The increased circulation capacity enhances the City’s appeal to retailers as a vibrant commercial corridor between the two main metropolises of Riverside and San Bernardino.

The completion of the Barton Rd Interchange is integral to the City of Grand Terrace’s Economic strategy. The economic prosperity of the City is linked directly to infrastructure. The interchange project leads to the heart of our economy with over 50% of all sales taxes generated in the City, coming from business on or adjacent to Barton Rd adjacent to the interchange. It is estimated that build out of businesses on Barton Rd within the next five years will lead to doubling of sales tax that is currently generated. Yet, during this same period, the completion of the interchange project will solidify the submittal of the 132-acre Gateway Specific Plan project, which is a mixed-use master plan project adjacent to the freeway with the ability to deliver a minimum of over $800,000 in property taxes to the City.

While the City’s core revenue sources are steady, the City will receive an additional boost in property tax because of private transactions, leading to increase tax rolls. In addition, the Successor Agency of the Community Redevelopment Agency was dissolved in March of 2022 which will lead to an increase in property tax revenues as well.

The City continues to see additional revenues materialize for Restricted/Special Purpose Funds allocated to it, after approval of the City’s Last and Final ROPS. The City will use these funds to continue to advance its longterm economic strategy with funds earmarked infrastructure, economic development, and elimination of blight. A significant amount of the funds will be used for infrastructure and economic development. SB-1 (Road Repair & Rehab Program) will allow the City to accelerate the repair of the City’s aging road infrastructure. The City has a successful track record of leveraging small amounts of general fund proceeds to go after grant programs to help build infrastructure. With the completion of the Interchange project, and the $300,000 Mount Vernon Avenue safety improvement program will enhance intersections for 5 major intersections in the City, four of which lead to most of our residential developments. We believe the improvements to these intersections will contribute to the growth and increase of property values.

Finally, to balance out the City’s goal of economic growth for our entire community, staff is anticipating a major role for the City’s Housing Successor Agency in the coming years, as the City moves to promote economic development and housing for all. The Housing Successor Agency has over $1,400,000 in cash, in addition to assets, which will allow it to carry out the agency’s policies.

Contacting Financial Management
This financial report is designed to provide our citizens, customers, investors, and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance department, at the City of Grand Terrace, 22795 Barton Road, Grand Terrace, California 92313, or call (909) 954-5200.

CITY OF GRAND TERRACE
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
25

BASIC FINANCIALS
Basic Financials
26

Government-Wide Financial Statements
See accompanying Notes to the Basic Financial Statements 27

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See accompanying Notes to the Basic Financial Statements 28

Statement of Net Position
Primary Government
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 16,302,295 $ 1,698,580 $ 18,000,875 Receivables (net of uncollectibles):

Accounts 126,009 — 126,009
Accrued interest 36,047 — 36,047
Due from other governments 925,969 — 925,969
Notes and loans 1,540,653 — 1,540,653
Prepaid costs 191,229 — 191,229
Capital assets (not being depreciated) 3,212,265 — 3,212,265 Capital assets (net of accumulated depreciation/amortization) 5,776,845 4,176,848 9,953,693 Total assets 28,111,312 5,875,428 33,986,740

DEFERRED OUTFLOWS OF RESOURCES
Pension-related 2,254,888 — 2,254,888
OPEB-related 333,479 — 333,479
Total deferred outflows of resources 2,588,367 — 2,588,367

LIABILITIES
Accounts payable 626,341 — 626,341
Accrued liabilities 45,865 — 45,865
Accrued interest payable 820 — 820
Deposits payable 1,031,685 6,875 1,038,560
Noncurrent liabilities:

Due within one year:

Compensated absences 44,814 — 44,814
Subscription 41,780 — 41,780
Total OPEB Liability 85,000 — 85,000
Due in more than one year:

Compensated absences 134,441 — 134,441
Net Pension Liability 6,098,734 — 6,098,734
Total OPEB Liability 1,316,835 — 1,316,835
Total liabilities 9,426,315 6,875 9,433,190

DEFERRED INFLOWS OF RESOURCES
Pension-related 884,445 — 884,445
OPEB-related 658,379 — 658,379
Total deferred inflows of resources 1,542,824 — 1,542,824

NET POSITION
Net investment in capital assets 8,947,330 4,176,848 13,124,178 Restricted for:

Community development projects 3,461,855 — 3,461,855
Public safety 66,493 — 66,493
Public works 3,464,681 — 3,464,681
Infrastructure projects 1,057,737 — 1,057,737
Unrestricted (deficit) 2,732,444 1,691,705 4,424,149
Total net position $ 19,730,540 $ 5,868,553 $ 25,599,093

CITY OF GRAND TERRACE
Statement of Net Position
June 30, 2024
See accompanying Notes to the Basic Financial Statements 29

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See accompanying Notes to the Basic Financial Statements 30

Statement of Activities
Program Revenues
Net (Expenses) Revenues and
Changes in Net Position
Expenses
Charges for
Services
Operating
Contributions
and Grants
Capital
Contributions
and Grants
Primary Government
Governmental
Activities
Business-Type
Activities Total
Functions/Programs:

Primary government:

Governmental activities:

General government $ 2,164,876 $ 224,989 $ 827,786 $ — $ (1,112,101) $ — $ (1,112,101) Public safety 2,964,772 11,641 187,614 — (2,765,517) — (2,765,517) Economic development 597,704 — — — (597,704) — (597,704) Cultural and recreation 1,461,227 96,833 — — (1,364,394) — (1,364,394) Public works 4,097,713 997,437 351,481 706,959 (2,041,836) — (2,041,836) Total governmental activities 11,286,292 1,330,900 1,366,881 706,959 (7,881,552) — (7,881,552) Business-type activities:

Waste Water Disposal 88,570 — — — — (88,570) (88,570)
Total business-type activities 88,570 — — — — (88,570) (88,570) Total primary government $ 11,374,862 $ 1,330,900 $ 1,366,881 $ 706,959 (7,881,552) (88,570) (7,970,122) General revenues:

General revenues:

Property taxes 4,918,295 — 4,918,295
Sales taxes 3,679,516 — 3,679,516
Franchise taxes 651,747 — 651,747
Business license taxes 100,772 — 100,772
Motor vehicle in lieu 16,233 — 16,233
Use of money and property 873,281 64,578 937,859
Miscellaneous income 57,628 — 57,628
Total general revenues 10,297,472 64,578 10,362,050
Change in net position 2,415,920 (23,992) 2,391,928
Net position-beginning 17,314,620 5,892,545 23,207,165
Net position-ending $ 19,730,540 $ 5,868,553 $ 25,599,093

CITY OF GRAND TERRACE
Statement of Activities
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements 31

Fund Financial Statements
See accompanying Notes to the Basic Financial Statements 32

Government Fund Financial Statements
See accompanying Notes to the Basic Financial Statements 33

Balance Sheet
Special Revenue Funds
Housing
Authority ARPA
Other Total
Governmental Governmental
General Fund Funds Funds
ASSETS
Cash and investments $ 9,827,257 $ 1,439,136 $ 202,894 $ 4,833,008 $ 16,302,295 Receivables (net of allowance for uncollectible): —
Accounts 125,570 — — 439 126,009
Interest 36,047 — — — 36,047
Due from other governments 297,697 — — 628,272 925,969
Notes and loans 1,027,523 513,130 — — 1,540,653
Due from other funds 602,944 — — 36,000 638,944
Prepaid costs 191,229 — — — 191,229
Advances from other funds — 168,205 — — 168,205
—
Total assets $ 12,108,267 $ 2,120,471 $ 202,894 $ 5,497,719 $ 19,929,351

LIABILITIES
Accounts payable $ 379,376 $ 6 $ 133,177 $ 113,782 $ 626,341 Accrued liabilities 45,865 — — — 45,865
Accrued interest 820 — — — 820
Due to other funds — — — 638,944 638,944
Deposits payable 1,006,708 — — 24,977 1,031,685
Advances from other funds 168,205 — — — 168,205
—
Total liabilities 1,600,974 6 133,177 777,703 2,511,860

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues — 61,130 — 523,975 585,105
—
Total deferred inflows of resources — 61,130 — 523,975 585,105

FUND BALANCES (DEFICITS)
Nonspendable 1,218,752 — — — 1,218,752
Restricted 1,057,737 2,059,335 69,717 4,863,977 8,050,766 Committed 2,369,829 — — — 2,369,829
Assigned 144,000 — — — 144,000
Unassigned 5,716,975 — — (667,936) 5,049,039
—
Total fund balances (deficits) 10,507,293 2,059,335 69,717 4,196,041 16,832,386 Total liabilities, deferred inflows of resources,
and fund balances (deficits) $ 12,108,267 $ 2,120,471 $ 202,894 $ 5,497,719 $ 19,929,351

CITY OF GRAND TERRACE
Balance Sheet
June 30, 2024
See accompanying Notes to the Basic Financial Statements 34

Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Amounts reported for governmental activities in the Statement of Net Position are different because:

Total fund balances - governmental funds $ 16,832,386
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds. 8,989,110 Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.

Deferred outflows-pension related 2,254,888
Deferred outflows-OPEB related 333,479
Deferred inflows-pension related (884,445)
Deferred inflows-OPEB related (658,379)
Total deferred outflows and inflows related to postemployment benefits 1,045,543 Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.

SBITA payable (41,780)
Compensated absences (179,255)
Net pension liability (6,098,734)
Total OPEB liability (1,401,835)
Total long-term liabilities (7,721,604)
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 585,105 Net position of governmental activities $ 19,730,540

CITY OF GRAND TERRACE
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2024
See accompanying Notes to the Basic Financial Statements 35

Statement of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds
Housing
Authority ARPA
Other Total
Governmental Governmental
General Fund Funds Funds

REVENUES
Taxes $ 8,531,762 $ — $ — $ 66,049 $ 8,597,811
Intergovernmental 133,164 — 747,544 1,337,757 2,218,465 Charges for services 1,738,765 — — 39,467 1,778,232
Use of money and property 654,151 44,932 — 174,198 873,281 Fines and forfeitures 60,243 — — 12,174 72,417
Miscellanous 57,628 — — 3,717 61,345
Total revenues 11,175,713 44,932 747,544 1,633,362 13,601,551

EXPENDITURES
Current:

General government 1,910,569 — — 193,420 2,103,989
Public safety 2,763,259 — — 1,426,976 4,190,235
Public works 1,760,630 — 785,989 84,792 2,631,411
Economic development — 38,324 — — 38,324
Cultural and recreation 815,058 — — 52,206 867,264
Capital outlay 553,207 — — 460,660 1,013,867
Debt service:

Principal retirement 77,578 — — — 77,578
Interest expense and fiscal charges 3,806 — — — 3,806
Total expenditures 7,884,107 38,324 785,989 2,218,054 10,926,474 Excess (deficiency) of revenues
over (under) expenditures 3,291,606 6,608 (38,445) (584,692) 2,675,077

OTHER FINANCING SOURCES (USES)
Transfers in 50,000 — — 1,110,383 1,160,383
Transfers out (248,695) — — (911,688) (1,160,383)
Subscriptions issued 195,125 — — — 195,125
Total other financing sources (uses) (3,570) — — 198,695 195,125 Net change in fund balances 3,288,036 6,608 (38,445) (385,997) 2,870,202 Fund balances-beginning 7,219,257 2,052,727 108,162 4,582,038 13,962,184 Fund balances-ending $ 10,507,293 $ 2,059,335 $ 69,717 $ 4,196,041 $ 16,832,386

CITY OF GRAND TERRACE
Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements 36

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Amounts reported for governmental activities in the Statement of Activities are different because:

Net change in fund balances - total governmental funds: $ 2,870,202 Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.

Capital outlay 1,008,573
Depreciation/amortization expense (814,393)
Total adjustment 194,180
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

Earned but unavailable grant revenues 1,309
Earned but unavailable other revenues (460,028)
Total adjustment (458,719)
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.

Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position.

Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.

Principal payments 77,578
Total adjustment 77,578
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

Compensated absences (46,725)
Changes in pension liabilities and related deferred outflows and inflows of resources (245,329) Changes in OPEB liabilities and related deferred outflows and inflows of resources 24,733 Total adjustment (267,321)
Change in net position of governmental activities $ 2,415,920

CITY OF GRAND TERRACE
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements 37

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See accompanying Notes to the Basic Financial Statements 38

Proprietary Fund Financial Statements
See accompanying Notes to the Basic Financial Statements 39

Statement of Net Position - Proprietary Funds
Business-Type
Activities
Waste Water
Disposal
ASSETS
Current assets:

Cash and investments $ 1,698,580
Total current assets 1,698,580
Noncurrent:

Capital assets (net of accumulated depreciation) 4,176,848 Total noncurrent assets 4,176,848
Total assets 5,875,428

LIABILITIES
Current liabilities:

Deposits received 6,875
Total current liabilities 6,875
Total liabilities 6,875

NET POSITION
Net investment in capital assets 4,176,848
Unrestricted 1,691,705
Total net position $ 5,868,553

CITY OF GRAND TERRACE
Statement of Net Position
Proprietary Funds
June 30, 2024
See accompanying Notes to the Basic Financial Statements 40

Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds Business-Type
Activities
Waste Water
Disposal

OPERATING EXPENSES
Depreciation expense $ 88,570
Total operating expenses 88,570
Operating income (loss) (88,570)

NONOPERATING REVENUES (EXPENSES)
Interest revenue 64,578
Total nonoperating revenues (expenses) 64,578
Change in net position (23,992)
Net position-beginning 5,892,545
Net position-ending $ 5,868,553

CITY OF GRAND TERRACE
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements 41

Statement of Cash Flows - Proprietary Funds
Business-Type
Activities
Waste Water
Disposal

CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings $ 64,578
Net cash provided by (used for)
investing activities 64,578
Net increase (decrease) in
cash and cash equivalents 64,578
Cash and cash equivalents-beginning 1,634,002
Cash and cash equivalents-ending $ 1,698,580

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY (USED FOR)

OPERATING ACTIVITIES
Operating income (loss) $ (88,570)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:

Depreciation/amortization expense 88,570
Total adjustments 88,570
Net cash provided by (used for)
operating activities $ —

CITY OF GRAND TERRACE
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
See accompanying Notes to the Basic Financial Statements 42

Notes to The Basic Financial Statements
43

A. Description of Entity
The City of Grand Terrace (City) was incorporated in November 1978 under the General Laws of the State of California. The City operates under a Council-Manager form of government and provides the following services:
public safety (law enforcement), highways and streets, cultural and recreational activities, public improvements, planning and zoning, building and safety, low and moderate income housing programs, and general administrative services.

As required by generally accepted accounting principles, the financial statements of the City of Grand Terrace include the financial activities of the City (the primary government), and the City of Grand Terrace Public Financing Authority (the Authority). This blended component unit is discussed below and is included in the reporting entity because of the significance of its operation and financial relationship with the City.

The Authority is legally separate from the City. However, the City of Grand Terrace’s elected officials have a continuing full or partial accountability for fiscal matters of the Authority. The financial reporting entity consists of:
1) the City, 2) organizations for which the City is financially accountable, and 3) organizations for which the nature and significance of their relationship with the City are such that exclusions would cause the City’s financial statements to be misleading or incomplete.

An organization is fiscally dependent on the primary government if it is unable to adopt a budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, component unit balances and transactions are reported in a manner similar to the balances and transactions of the City. Component units are presented on a blended basis when the component unit’s governing body is substantially the same as the City’s or the component unit provides services almost entirely to the City. The following component units of the City have been included in the financial reporting entity as blended component units.

City of Grand Terrace Public Financing Authority
The Grand Terrace Public Financing Authority (the Authority) was established on July 16, 1991, pursuant to a Joint Powers Agreement between the City of Grand Terrace and the former Community Redevelopment Agency of the City of Grand Terrace. The Authority was created to facilitate financing of public capital improvements benefiting the City and the former RDA. The City Council also acts as the governing body of the Authority. The Authority’s activities are blended with those of the City. Separate financial statements are not prepared for the Grand Terrace Public Financing Authority.

There are several other governmental agencies, including the County of San Bernardino, school districts, and others, providing services within the City of Grand Terrace. Those agencies have independently elected governing boards other than the City Council of the City of Grand Terrace and no financial accountability to the City of Grand Terrace. Consequently, financial information for these agencies is not included within this financial report.

B. Government-Wide and Fund Financial Statements
The government-wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to interfund activities, payables, and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

CITY OF GRAND TERRACE
Notes to Financial Statements
For the Year Ended June 30, 2024
504
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
44

The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions, including special assessments, that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenue are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the cash flows.

Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified-accrual basis of accounting. Under the modified-accrual basis of accounting, revenues are recognized in these funds when susceptible to accrual (i.e., when they are both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers property taxes collected after year-end as available, if they are collected within 60 days of the end of the current fiscal period. Other revenue susceptible to accrual includes sales tax, state gasoline taxes, investment income, and certain other intergovernmental revenues. Expenditures in the governmental funds are generally recognized in the accounting period in which the related fund liability is incurred, if measurable, except for unmatured principal and interest on general long-term debt, as well as compensated absences and claims and judgments, which are recognized when due.

The City reports the following major governmental funds:
• The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. • The Housing Authority Fund accounts for the housing assets transferred from the former redevelopment agency and Low and Moderate housing activities of the City. The fund activities are restricted for the same purposes as the former Low and Moderate Income Housing Fund of the Agency. • The ARPA Fund accounts for activity of federal funding under American Rescue Plan Act which is used to address ongoing COVID-19 public health crisis.

CITY OF GRAND TERRACE
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 45

The City reports the following major proprietary fund:
• The Waste Water Disposal Fund is used to account for the remaining assets and liabilities of the fund that used to account for the provision of waste water disposal services to the residences and businesses of the City. Currently, a Sewer Services Agreement is in place between the City of Colton/Colton Utility Authority and the City of Grand Terrace for the provision of waste-water disposal services by the City of Colton to residents and businesses of the City of Grand Terrace.

Additionally, the City reports the following fund types:
• Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes. • Capital Projects Funds are used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by the proprietary funds). • Permanent Fund accounts for resources that are legally restricted, to the extent that only earnings, and not principal, may be used for purposes that support the City’s program.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government's proprietary funds functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

D. Other Accounting Policies

1. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances."

2. Cash and Cash Equivalents
For the purpose of the statement of cash flows, the City considers cash and cash equivalents as short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The City follows the practice of pooling cash and investments of all funds. Since cash and investments are pooled, the City utilizes the assumption that the cash and investments in the Enterprise Fund are cash and cash equivalents.

3. Investments
The City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement.

CITY OF GRAND TERRACE
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 46

4. Property Held for Resale
Property held for resale is recorded at the lower of cost or net realizable value.

5. Compensated Absences
The short-term portion is determined to be the amount due to employees for future absences which is attributable to services already rendered and which is expected to be paid during the next fiscal year. The total amount of liability for compensated absences is segregated between short-term and long-term as indicated above and both portions are reflected in the government-wide statements.

Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment.

Normally, an employee cannot accrue more than two times his regular annual entitlement.

Sick leave is payable when an employee is unable to work because of illness. Upon termination, regular employees with 5 years continuous service will be paid 40% for any unused sick leave.

6. Capital Assets
Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), and lease and subscription assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than or equal to $5,000 (amount not rounded) and an estimated useful life of at least two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated Capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value at the time of acquisition by the City.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized.

Capital asset of the primary government, as well as the component units, are depreciated/amortized using the straight-line method over the following estimated useful lives.

Asset Type Years
Buildings 50
Machinery & Equipment 5-15
Vehicles 6-15
Improvements other than buildings 15-20
Infrastructure 20-30
Sewer Lines 90
Right-of-use subscription assets
Shorter of the assets useful life
or the subscription term

7. Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, longterm debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount.

CITY OF GRAND TERRACE
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 47

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures.

8. Net Pension Liability
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023

9. Other Post-Employment Benefits (OPEB) Liability
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024

10. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position and the governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City only has two items that qualifies for reporting in this category. Deferred outflows relating to the net pension obligation and deferred outflows related to OPEB liability reported in the government-wide statement of net position.

In addition to liabilities, the Statement of Net Position and the Governmental Balance Sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has three items, one of which, arises only under the modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenue from intergovernmental revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The other items are deferred pension related items and deferred OPEB related items.

Gains and losses related to changes in total pension or OPEB liability and their related fiduciary net position are recognized in pension or OPEB expense, respectively, systematically over time. Amounts are first recognized in pension or OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pension or OPEB and are recognized in future pension and OPEB expense, respectively.

The recognition period differs depending on the source of the gain or loss:

Net difference between projected and actual earning on pension or OPEB plan investments 5 years All plans
All other amounts are amortized over the expected average remaining service lifetime (EARSL) of the respective plan. At June 30, 2023, EARLS were:

5.7 years OPEB plan

3.7 years
Pension miscellaneous -
Cost Sharing Plan

CITY OF GRAND TERRACE
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 48

11. Subscription-Based Information Technology Arrangements The City is a subscriber for a noncancellable subscription of information technology services. The City recognizes a subscription liability and an intangible right-to-use subscription asset (subscription asset) in the governmentwide financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more.

At the commencement of a subscription, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to subscriptions include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments.
• The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscriptions.
• The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position.

12. Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.

13. Fund Balance Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied.

It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.

Unassigned fund balance is applied last.

CITY OF GRAND TERRACE
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 49

14. Fund Balance Policies
The City implemented GASB Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions”. This statement provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balance more transparent. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:
• Non-spendable – amounts that are not in a spendable form (such as inventory) or are required to be maintained intact.
• Restricted – amounts constrained to specific purposes by their providers (such as grantors, bondholders and higher levels of government), through constitutional provisions or by enabling legislation. • Committed – amounts constrained to specific purposes determined by a formal action of the City Council, the government's highest level of decision-making authority. • Assigned – amounts the City intends to use for a specific purpose; intent can be expressed by City Council or by an official or body to which the City Council delegates the authority. By resolution, the Council has authorized the City Manager and/or Finance Director to assign fund balance. • Unassigned – amounts that are for any purpose; positive amounts are reported only in the general fund.

The City Council, as the City's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently.

15. Property Tax
Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied provided they become available. Available means when due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The County of San Bernardino collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January proceeding the fiscal year for which the taxes are levied.

Taxes are levied on both real and personal property as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31.

16. Use of Estimates
The financial statements have been prepared in accordance with generally accepted accounting principles accepted in the United States of America and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts.

CITY OF GRAND TERRACE
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 50