Loading...
HomeMy WebLinkAbout05-29-1981 CITY COUNCIL AGENDACITY OF SARATCGA AGENDA BILL NO. DATE: May 27, 19 81 DEPARIMFr: P 1 ann i n Initial: Dept. Hd. C. Atty A ------------------------------------7----------- SUBJ=: Criteria for Referral to Adjacent Cities and the County (IGC) -------------------------------------------------------------------------------- - - - - -- Issue Summary The Intergovernmental Council established a city referral program by which each community would be advised of major projects.in adjoining cities. There are four (4) sets of criteria which define the type of project to- be forwarded for review. Recommendation Approve the concept of a city referral project. Fiscal Impacts None Exhibits/Attachments (1) Background Report dated May 27, 1981 (2) IGC Report Council Action Approved concept 4 -0. o� SAR�9 REPORT TO MAYOR AND CITY COUNCIL DATE: S -27 -81 COUNCIL MEETING: 6-03-81 SUBJECT- Criteria for Referral to Adjacent Cities and the County (IGC) ---------------------------------------------------------------------- - - - - -- BACKGROUND In early 1981, the Intergovernmental Council (IGC) General Plan Implementation Subcommittee met to discuss the issue of project referral to adjacent cities and the County. The subcommittee solicited the support of Bob Quinlan, Cupertino, Bruce Liedstrand and Glen Gentry of Mountain View, to assist them with development of criteria to be used in referring projects to adjacent communi- ties. The subcommittee developed four sets of criteria for referral to adjacent communities, non - adjacent jurisdictions, school districts and special district. In addition to the criteria, a fee schedule was developed by the subcommittee for subscription to non -con- tiguous cities items. (Please refer to attached sheets) The intent behind the IGC referral system is to insure that each community within Santa Clara County is aware of projects that could affect their community. Furthermore, Chairman Nichols stated "The theory in developing the referral process was that if cities.found something occurring, they would have technical information available and could bring the matter to the IGC." (Minutes 4/2/81) The fees mentioned in the packet are for those communities who wish to receive referrals from non - contiguous cities. The fees would be paid directly to that city. There will be no fee for referrals from the immediately adjacent cities. StaTT has a very good working relationship with Cupertino, Los Gatos, Monte Sereno and San Jose; therefore, we anticipate no problems with our neighboring cities. In fact, we have been receiving and sending referrals to these communities for over a year. Staff does not recommend that Saratoga subscribe to a non -con- tiguous cities referral program. However, we support the concept Report to City Council May 27, 1981 RE: IGC Page 2 and find the.criteria to be reasonable. - r-,Zzzm_ Submitted by J. Way e Dernetz S. Robinson, Jr. City anager Planning Director RSR:cd Enclosures Criteria for Referral to Adjacent Cities and the County I. All of the following projects*or actions will be referred between and among adjacent cities and the County a. General Plan Amendments b. Rezonings c. Residential projects over 300 dwelling units d. Commercial projects over 250,000 square feet of floor area or 1,000 parking spaces e. Lodging projects over 250 rooms f. Industrial or office projects over 125,000 square feet g. Upon mutual agreement, two or more cities may refer residential, commer- cial, industrial, or office projects of a lesser magnitude to each other. 2. It' is the recommendation of this Task Team that all of the jurisdictions involved in the referral process adopt a policy that whenever one of them sends notice of a legally required public hearing to property owners in another jurisdiction, they also send notice to the city (or County) in which the property is located. Criteria for Referral to Non - Adjacent Jurisdictions A non - adjacent city jurisdiction may be placed on the noticing list of any jurisdiction if its legislative body first makes a formal request to that jurisdiction, in writing, to so include them. If a jurisdiction should choose to avail itself of the opportunity to be placed on the noticing list of another jurisdiction, it will receive all of the various notices sent out by that jurisdiction and not a select few - (this is necessary in order to keep the administrative costs associated with noticing to a minimum). In order to defray the additional costs of .sending notices to non - adjacent jurisdictions, the attached fee schedule has been established. Criteria for Referral To and From School Districts All jurisdictions will refer planning projects and actions as defined in Section I, item I, sub -items "a" through "f" to the school district(s) in which the project or action will occur. When a school district is itself considering a planning project or action which may have an impact on the operations or facilities of a city or the County, the school .district should directly notify the affected jurisdictions. IV. Criteria for Referral To and From Special Districts When, in the opinion of an originating jurisdiction, a planning project or action may have a significant impact on the operations or facilities of a special district, the jurisdiction considering the project or action will send notice of it to the appropriate special district(s). Those specific items which should be referred include those items defined in Section I, item I, sub -items "a" through "f ". (Attached is a list of special districts and their addresses.) When a special district is considering a planning project or action which may have an impact on the residents, operations or facilities of a city or the County, the special district should directly notify the affected jurisdiction. Adjacent cities are defined as cities that share common boundaries. The County is an adjacent city as.to all cities. FEE - SCHEDULE FOR RECEIVING PROJECT NOTIFICATION FROM NON- ADJACENT JURISDICTIONS Notification to Non - Adjacent Jurisdictions From San Jose $500 per year Santa Clara $250 per year Milpitas Mountain View Sunnyvale Palo Alto Cupertino Santa Clara County Los Gatos Saratoga . Monte Sereno Campbell Los Altos Los Altos Hi 1 1's Gilroy Morgan Hill $150 per year r SANTA CLARA COUNTY INTERGOVERNMENTAL COUNCIL NOTIFICATION OF PROPOSED PROJECT /ACTION THAT MAY HAVE INTERJURISDICTIONAL IMPACTS Date of Referral: Any response should be in writing and filed by Originating Jurisdiction: Contact Person /Agency /Phone Number: Type of Project /Action: (eg. General Plan Amendment, Rezoning, Residential, Commercial, Office.or Industrial Development) File No: Brief Description of Proposed Project /Action: (If Res, # of du's; if Ind. or Office, # of square feet, # of employees per shift (if known), # of shifts (if known); if Comm. # of square feet S parking spaces) Site Location and Size: Location: Assessor's Parcel Number: Acreage: General Plan Designation: Existing: Proposed: Zonin : Existing: Proposed: Land Use: Existing: Proposed: CEQA (Environmental Impact) Status: Categorically Exempt Negative Declaration Pending EIR Being Prepared EIR Available for Review No Decision Yet Made ventral Fire Protection Dist. ;071- Driftwood Or ;an Jose, CA 95128 ?hone No. 378 -4010 FIRE PROTECTION DISTRICTS Fremont Fire Protection-Dist. P.O. Box 4730 Mountain View, CA 94040 Phone No. 987 -3604 Saratoga Fire Protection Dist. South Santa Clara County 14380 Saratoga Av Fire Protection Dist. ;aratoga, CA 95070 ' 15670 Monterey Rd 'hone No. 867 -9001 Morgan Hill, CA 95037 Phone No. 779 -2121 4idercroft Heights County Dater District P.O. Box 51 ioly City, CA 95026 Phone No. 353 -1905 Santa Clara Valley Water Dist. 5750 Almaden Expressway San Jose, CA 95118 Phone No. 265 -2600 Burbank Sanitary District 90' Boston Av San Jose, CA 95128 Phone No. 294 -4951 County Sanitation District No. 2 -3 c/o Clerk, Bd. of Supervisors 70 W. Hedding St San Jose, CA 95110 Contact: Harry F. Avmack, Jr. Phone No. 295 -2425 WATER DISTRICTS Los Altos County Fire Protection Dist. 10 Almond Av Los Altos, CA 94022 Phone No. 948 -24x4 Gavilan Water Conservation Dist. Purissima Hills County 7901 E. Westwood Or Water District Gilroy, CA 95020 26375 Fremont Rd Phone No. 847 -7881 Los Altos Hills, CA 94022 Phone No. 948 -1217 SANITARY DISTRICTS Cupertino Sanitary District 20005 Stevens Creek Blvd. Room 204 Cupertino, CA 95014 Phone No. 253-7071 COUNTY SANITATION DISTRICTS District Manager /Engineer Sunol Sanitary District 470 Meridian Av San Jose, CA 95126 County Sanitation Dist. No. 4 100 E. Sunnyoaks Av Campbell, CA 95008 Phone No. 378 -2407 RESOURCE CO` ISE:RVAi ION. DIS TR I. TS :vergreen Resource Conservation Loma Prieta Conservation Dist. i s t r i ct P.O. Box 1627 ;ivic Center Office Bldg. Morgan Hill, CA 95037 388 N. 1st St., Room 220 Phone No. 779 -9363 )an Jose, CA 95112 'hone No. 288 -5888 PARK AND RECREATION DISTRICTS 'lid- peninsula Regional Open Rancho Rinconada Recreation apace District and Park District 375 Distel Circle, Ste. D -1 18525 Bollinger Rd Los Altos, CA 94022 Cupertino, CA 95014 Phone No. 965 -4717 phone No. 252 -3660 ROAD MAINTENANCE DISTRICTS Oakmont Drive Road Maintenance District c/o Clk. of the Bd. of Suprs. 70 W. Hedding St San Jose, CA 95110 Phone No. 299 -2608 (Ron Shields - Road Operations) Poindexter Road Maintenance District c/o Clk of the.Bd. of Suprs. 70 W. Hedding St San Jose, CA 95110 Phone No. 299 -2608 (Ron Shields - Road Operations) Overlook Road Maintenance District c/o Clk. of the Bd. of Suprs. 70 W. Hedding St San Jose, CA 95110 Phone No. 299 -2608 (Ron Shields - Road Operations) MISCELLANEOUS DISTRICTS ,ay Area Air Quality Management District County'Lighting Service Area )39 Ellis St Transportation Agency ;an Francisco, CA 94109 1555 Berger Dr 'hone No. 771 -6000, Ext. 941o9 San Jose,'CA 95112 Phone No..299 -2177 :1 Camino Hospital District '500 Grant Rd lountain View, CA 94042 Tanta Clara County Transit District 555 Berger Dr pan Jose, CA 95112 south Santa Clara Valley lemorial District 14 W. Sixth St ;ilroy, CA 95020 'hone No. 842 -4913 Sol ado -Fa i ry i ew Resource : onservation District :/o The U.S. Department of Agriculture )oil Conservation Service '.0. Box 1627 ilroy, CA 95020 hone No. 847 -4161 San Felipe Resource Conservation District 7143 Lovers Ln -lol 1 i ster, CA 95023 )'hone No. 637 -2169 Reclamation District 1663 (Santa Clara LAFCO for .INFO) Saratoga Cemetery District 14766 Oak St Saratoga, CA 95070 Phone No. 867 -3717 San Benito County Districts (Having area within Santa Clara County) Pacheco Pass State Water District P.O. Box 1382 Hollister, CA 95023 Phone-No. 637 -5781 Pacheco Storm Water Drainage and Maintenance District 8247 Lovers Ln- Hollister, CA 95023 Phone No. 637 -5014 CITY OF SARATOGA AGENDA BILL NO. DATE: 81 DEPARTMENT: City Manager SUBJECT: City support 'of Senate Bill 573 Issue Summary Initial Dept. f C. Atty C. Mgr. SB No. 573 introduced'by Senator Mills contains provisions which continue Transportation Development Act, Article 4.5 funding for Community Transit Services, otherwise scheduled to be repealed July 1, 198.2. Recomnendation Adoption of Resolution No. Senator Dan O'Keefe. Fiscal Impacts , and transmittal of same by Mayor to The combined cities of Saratoga and Monte Sereno and the Town of Los Gatos receive $84,714 for FY 1981 -82 of Transportation Development Act, Article-i::­- 4.5 monies for the operation of the Transit ASSIST (elderly - disabled para- transit service) program. Loss of this funding source would severly jeopordize the viability of the City continuing to provide this service. Exhibits /Attachments Letter from Roy Lave to Mayor Callon SB No. 573 Council Action Passed 4 -0. , ._'"' f !'t'i,' :�'4f 44`: si,Fk°:Ht} stku "iy r�s :- sn,-+r .. - ----.++ -. —. x�1F; -1 ..,- •--•7, -, ;,::�_.•,i WIN Y of = ARATOGA 13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 (408) 867 -3438 May 27, 1981 Mr. Dan O'Keefe, Senator 10020 N. DeAnza Blvd. Cupertino, California 95014 Dear Mr. O'Keefe: Attached please find City of Saratoga City Council Resolution No. in support of Senate Bill No. 573, containing provisions which would continue the funding of Community Transit Services under Article 4.5 of the Transportation Development Act. The City of Saratoga in cooperation with the Town of Los Gatos, the City of Monte Sereno and Santa Clara County ( Paratransit Coordinating Council) operate the "Transit ASSIST" program, a 4.5 funded service which provides transportation deficient residents of the community with the ability to live more inde- pendently. Transit ASSIST provides demand responsive and scheduled service to the elderly and disabled residents of the participating jurisdictions at affordable rates. Transit ASSIST was created in response to the identified trans- portation needs of the elderly and disabled watidents within its service area. Since its beginning seireral years ago, program ridership has steadily increased, were it not for the availability of TDA, Article 4.5 funding it is highly -{,o -Cro�rsit ASSIST program could remain a viable sommunity service. Your support of SB 573 would be most appreciated hnd City with the ability.to continue to offer excellent service to the elderly and handicapped residents of Very truly yours, Linda Callon Mayor /da provide the paratransit our community. ' ! • Transportation Agency • ���� �itA J�r �� (j 1555 Berger Drive County of Santa Clara �J San Jose, California 95112 California PARATRANSIT COORDINATING COUNCIL Honorable Linda Callon, Mayor City of Saratoga City Hall 13777 Fruitvale Avenue Saratoga, CA 95070 May 8, 1981 Dear Mayor Callon, aco The Transportation Development Act Article 4.5 Fund is the greatest identifiable source of paratransit monies in Santa Clara County. The programs provided by the cities assist in meeting the transportation needs of approximately 30,000 elderly and handicapped persons. But, this source of money is due to expire next year. The passage of Proposition 13 has severly limited the cities' ability to provide many services for residents. Without monies from Article 4.5 many, if not all, of the cities would not be financially able to continue these services. State Senate Bill 573 contains provisions that would continue funding of Community Transit Services under Article 4.5 of the Transportation Development Act. At the present time the City of Saratoga, Town of Los Gatos, and City of Monte Sereno claim $84,719 from this source to provide special needs transportation to elderly and handicapped residents of your city. In order to preserve and improve upon these services the Paratransit Coordinating Council of Santa Clara County has en- dorsed SB 573. The PCC requests that your Council take similar action and support those provisions of SB 573 that would continue Community Transit Services. The PCC also requests that you communicate your support to your State Senator as soon as possible. The Paratransit Coordinating Council appreciates your antici- pated support. If further information is desired please contact Dennis Guinaw, Paratransit Coordinator, 299 -4141. Sincerely, Roy Lave Chair Paratransit RL: DG: dv M Coordinating Council An Equal Opportunity Employer SENATE BILL No. 573 Introduced by Senator Mills March 12, 1981 An act to amend Sections 99232, 99233.7, 99234, 99275.5, 99400, and 99405 of, to add Section 99275.7 to, and to repeal Sections 99279, 99279.5, and 99400 of, the Public Utilities Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST SB 573, as introduced, Mills. Transportation. (1) The Mills - Alquist - Deddeh Act requires apportionments in areas served by a public transportation . r1 system in counties with a population of 500,000 or more, as �-� determined by the 1970 decennial census, to be available solely for claims for transit and related purposes, but excludes counties with more than 4,500 miles of maintained county roads. This bill would exclude counties with more than 4,500 miles of maintained county roads as of 1970. (2) The act authorizes allocation of funds for community transit services until July 1, 1982. The bill would delete the July 1, 1982 repeal date. (3) Under the act, money may be allocated for the construction of facilities for the exclusive use of pedestrians and bicycles. PThe bill would also authorize allocation of money for the. maintenance of those facilities. (4) Under the act, a claimant for an allocation for community transit services is required to hive a marketing program for those services. The bill would delete this requirement. (5) The act requires operators to maintain a specified ratio Hof fare revenues to operating cost in order to be eligible for funds under the act. 99 N) • • SB 573 —2— The bill would specify that local f fnds other th provided Ifor allocated under the act, and federal persons, may be subsidizing fares for elderly and p nsit considered fare revenue for purposes of the community elderly traand services provided exclusively for handicapped. 6) Under the act, counties and cities in a co,rltoy eShmaytbe funds may funds s by the for ansportat transportation inning agency to allocated funds y contract for public transportation or for transportation services for groups requiring special transportation assistance until July 1, 1983. The bill would delete the July 1, 1983, repeal date meats ldr also authorize counties and to costs receive with respect to their administrative and planning transportation services under those coin a county where the (7) Under the act, a city or county funds may be allocated for street and f d ro public transportation er to be eligible for funds to .cont rots s requiring special for transportation services for groups to maintain a specified transportation assistance, are req ratio of fare revenues to operating cost. The bill would provide that funduma to available contracts for Older American Act of 1965 and purposes of meeting the those services are fare revenues for p ur p fare revenues to operating cost requirement. provisions. (8) The bill would delete obsolete p r Vote: majority. Appropriation: no. Fiscal committee: yes. State - mandated local program: no. E :7 The people of the State of California do enact as follows: 1 SECTION 1. Section 99232 of the Public Utilities 2 Code is amended to read: o ulation of 500,000 or 3 99232. For counties with P 970 federal decennial 4 more, as determined by the 5 census, but excluding counties with more than 4,500 miles 6 of maintained county roads as of 1970, the amount 7 representing the apportionments for of claims fors Sectio 1® 8 operators shall be available solely ;u -3 — S 11 57 :3 1 99234 purposes and for Article 4 (commencing with 2 Section 99260) and Article 4.5 (coin melicing with Section 3 99275) purposes, and any seek of those moneys not 4 allocated in any year shall be available for rftr those 5 claims in subsequent years. 6 SEC. 2. Section 99233.7 of the Public Utilities Code is 7 amended to read: 8 99233.7. Up to 5 percent of the remaining inoiley it, 9 the fund shall be made available to cities, comities, and 10 operators for claims filed pursuant to Article 4.5 11 (commencing with Section 99275) in those areas where 12 claims may not be filed for those purposes specified in 13 Article 8 (commencing with Section 99400), and may be 14 made available to consolidated transportation service 15 agencies, unless the transportation planning agency, or u 16 county transportation commission created pursuant to 17 Division 12 (commencing with Section 130000), having 18 jurisdiction finds, after considering the claims pursuant to 19 subdivision (c) of Section 99275.5, that such allocations of i 20 money could be used to better advantage for the 21 purposes stated in Article 4 (commencing with Section 22 99260) in the development of a balanced transportation 23 system. l 24 The money may be allocated without respect to 25 Section 99231 and shall not be included in determining 26 the apportionment to a city or county for purposes of 27 Sections 99233.8 and 99233.9. 28 T4is see4eft ski retnain in effeet et* et44 Y4Y ; 1382; 29 aed as of 4uc date i-9 fepealed, unless a 1 30 st4tite, •eh is elm #tefed e }ttl-y 4; 148-2, deletes of 31 extends seek dam 32 SEC. 3. Section 99234 of the Public Utilities Code is 33 amended to read: 34 99234. (a) Claims for facilities provided for the 35 exclusive use of pedestrians and bicycles shall be filed in 36 the same manner as are claims filed for the purposes of 37 subdivision (a) of Section 99400. 38 (b) The money shall be allocated for the construction, 39 and maintenance of sttek those facilities pursuant to a 40 priority list of sir those facilities prepared by the ' • 99 100 SB 573 —4— 1 transportation planning agency for the area within its 2 jurisdiction. 3 (c) The money may be allocated without respect to 4 Section 99231 and shall not be included in determining . 5 the .apportionments to a city or county for purposes of 6 Sections 99233.7 to 99233.9, inclusive. 7 (d) The transportation planning agency shall review 8 its allocations made pursuant to Section 99233.3 within 30 9 days after receiving a request for etreh a review from any 10 city or county in the area within the jurisdiction of the 11 transportation planning agency. 12 SEC. 4. Section 99275.5 of the Public Utilities Code is 13 amended to read: 14 99275.5. (a) Claims, for purposes of this article, shall 15 be filed in' the same manner as claims are filed for 16 purposes of Article 4 (commencing with Section 99260) . 17 (b) The transportation planning agencies shall adopt 18 criteria, rules, and regulations for the evaluation of. claims 19 filed under this article and the determination of. the cost 20 effectiveness of the proposed community transit services VW 21 to be provided under the claims. 22 (c) Prior to approving a claim filed under this article, 23 the transportation planning agency shall make all of the 24 following findings: 25 (1) That the proposed community transit service is 26 responding to a transportation need currently not being 27 met in the community of the claimant. 28 (2) That the service shall be integrated with existing 29 transit services, if appropriate. 30 (3) T-h4 t-he elaitnant hits tiff ttdequate ffiftnageffiE ., 31 systeffi to faeilitate eyt}l t to 32. 33 Seetien 99279. {4} That the claimant has prepared an estimate of 34 revenues, operating costs, and patronage ttffd ft 35g per- 36 JE+ 37 (4) That the claimant is in compliance with Section 38 99268.3, 99268.4, 99268.5, or 99268.9, whichever., is 39 applicable to it. 40 SEC. 5. Section 99275.7 is added to the Public Utilities ' ,Y4 140 0 0 99 11% —5— SB 573 1 Code, to read: 2 99275.7. When funds are allocated for purposes of this 3 article, local funds other than funds allocated under this 4 chapter, and federal funds provided for the purpose of 5 subsidizing fares for the elderly and handicapped 6 persons, may be considered fare revenue for purposes of 7 Section 99268.5. 8 SEC. 6. Section 99279 of the Public Utilities Code is 9 repealed. 10 99279. T-4e Auditer Genera! shall ate a-n 11 evakt&4en 4 this pfegtftffi 4 eer y, tr-ansit 4e1 s 12 net hAef than July 4; 1989. Atneng 4 e €eeters to be 13 i �' e `' }n the afe e€ the 14 eperati-ng east per passed epenttittg eest pef Miele 15 16 serwiee hetr_; peT- serN iee hetf -, pffegeffg-em pef Yehiele ser-yiee fnile; and Yehiele hatirs 17 pef efp as defined in Seetien 992'1 fey the � 18 eeffttnuftity transit seFwiee and leeal 19 e�� of tie needs caret by tl3e A rehart Is 20 eittsi .. attd reeaffiffiendtitieiiq g6tt4 be 21 subfitted to the T =giskttttre not lief then }anuar-y 4; 22 23 1981. - SEC. 7. Section 99279.5 of the Public Utilities Code is 24 repealed. 25 99279.5e his article sl}all min in effeet enly until 26 4; 1982; and as of std date is repealed, unless a late 27 enaeted statute; whieh is el3aptered befere jttly 4-,41_)8&, 28 deletes er extends fuel date' 29 SEC. 8. Section 99400 of the Public Utilities Code, as 30 amended by Chapter 296 of the Statutes of 1980, is 31 amended to read: 32 99400. Claims may be filed with the transportation 33 planning agency by eities aftd counties and cities under 34 this article for the following purposes: 35 (a) Local streets and roads, including facilities 36 provided for exclusive use by pedestrians and bicycles. 37 (b) Payments to the National Railroad Passenger 38 Corporation for passenger rail service under Section 39 403 (b) of the Federal Rail Passenger Service Act of 1970 040 (45 U.S.C., Sec. 563(b)). 99 11% 0 0 S B 573 —6— 1 (c) Payment to any of the following entities which are 2 under contract with a county or a city for public 3 transportation or for transportation services for any 4 group, as determined by the transportation planning 5 agency, requiring special transportation assistance: 6 (1) A common carrier, as defined in Section 211, 7 engaged in the transportation of persons, as defined in 8 Section 208. 9 (2) A private entity operating under a franchise or 10 license. 11 (3) A nonprofit corporation organized pursuant to 12 Division 2 (commencing with Section 9000) of Title 1 of 13 the Corporations Code. 14 (4) An operator. 15 (5) A county service area. 16 (6) A community services district. 17 (7) A recreation and park district. 18 (8) A public utility district. 19 If the county or the city is being served by an operator, 20 the contract entered into by such a county or city with an 21 entity specified in paragraph (1), (2), (3), (5), (6), (7), 22 or (8) of subdivision (c) shall specify, the level of ; ervice 23 to be provided, the operating plan to implement that 24 service, and how that service is to be coordinated with 25 the public transportation service provided by the 26 operator. Prior to approving any claim filed under this 27 section, the transportation planning agency, or the 28 county transportation commission in a county with such 29 a commission, shall make a finding that the transportation 30 services contracted for under subdivision (c) are 31 responding to a transportation need not currently being 32 met within the community or jurisdiction of the claimant 33 and that, where appropriate, the services are integrated 34 with the existing transportation service. 35 (d) Payments to counties and cities for the:'r 36 administrative and planning cost with respect to 37 transportation services under subdivision (c). 38 T4+is seti ien sl ++i 4i e Weet om4y t -1- 4s)g . 39 ate tts 4 4tftt doe is repeti}ec-, ttnless f eneeted 40 statute, ~ • is a }t4y -I; +983; des eT- 99 21X1 1 09 • —7— • SB 573 99 230 1 emends ffueft &6-- 2 SEC. 9. Section 99400 of the Public Utilities Code, as 3 amended by Section 27 of Chapter 1002 of the Statutes of 4 1979, is repealed. 5 99480- Qtti nis y be fited the 6 planning ttgeney by eitieg ati4 eomntieg under- 445 at:tiele 7 fef the €ellevtg pare— - 8 -(a} Ieeaf sheets ate r-eads; ineluding 9 pr-eN,ided feT- the . ttse by pedestrians awl 10 bieyeles. 11 +b} Payffien is to 4 e National Railroad Passenger- 12 fet pttssenget- fail s?rwiee under See.tian 13 403 (b) e€ t4-,e Ra4l Passenger Semi ee reel -(-4a 14 U.S. G., See- 663 (b) )- 15 T4iis seetien sl3ttll beeetne epet:4iN,e eft }ttl�, 4; 1988. 16 SEC. 10. Section 99405 of the Public Utilities Code is 17 amended to read: 18 99405. (a) Except as otaerwise provided in this 19 20 section, the allocation for any purpose specified in Section 99400 may in no year exceed 50 percent of the 21 amount required to meet the city's or county's total 22 proposed expenditures for that purpose. 23 (b) With respect to budgeted capital requirements for 24 major new facilities, the transportation planning agency, 25 notwithstanding the 50- percent limitation, may allocate 26 up to the amount so budgeted, if the construction of stt---6 27 the facilities has been found to be not inconsistent with 28 the transportation planning agency's regional 29 transportation plan. 30 (c) The 50- percent limitation shall not apply to the 31 allocation to a city or county-for services under contract 32 pursuant to subdivision (c) of Section 99400. The city or 33 county shall be subject to Section 99268.3, 99268.4, 99268.5, 34 or 99268.9, as the case may be, and shall be deemed an 35 operator for purposes of those sections ; however, fienf: s 36 made a vailable under the Older American Act of 1965 (42. 37 U.S.C. Sec. 3001 et seq.) and used for fielding those 38 services tinder contract pursuant to subdivision (c) of 39 Section 99400 are fare revenues for purposes of those 40 sections. 99 230 • SB 573 —8— 1 (d) The 50- percent limitation shall not apply to funds 2 allocated under this article to a city or county with a 3 population of less than 5,000. r., CITY OF SARATOGP, Initial: AGENDA BILL NO. Dept. Hd. DATE: 5/29/81 C. Att DEPART=: City Manager C. Mgr. ------------------------------------------------------------------- - - - - -- ----- - - - - -- SUBJECT: Improvement of Internal Financial Management System Issue Summary The independent audit report for the year ending June 30, 1980,,.has indicated the need for certain improvements in the City's accounting and financial management systems. These needs continue to exist, but time is running short for making these improvements by the end of the current year. Also, additional skills and experience are needed to make these changes and to train present staff. The City':,s.needs for an effective accounting and financial management system are more critical under the current economic and fiscal conditions. Recommendation 1. Approve the Proposal of Arthur Andersen & Co. for consulting services to assist with the improvements needed immediately, at a cost not to exceed $11,500. 2. Appropriate this sum from the General Fund Reserve to the City Manager budget account to cover the expense. Fiscal Impacts City's direct expense should not exceed $11,500.. This expenditure will provide the City with an improved capability to manage and conserve its financial resources and maintain a more active investment program. This is a one -time only expenditure. Exhibits /Attachments 1. Report to Council from City Manager, 5/28/81 2. Attachments to Report Council Action Approved 3 -0 (Watson abstained). of � AR<9 REPORT TO MAYOR AND CITY COUNCIL DATE: 5/28/81 COUNCIL MEETING: 6/3/81 SUBJECT ' Program for Improvement of Internal Financial Management System Summary At the Council work session on May 9, 1981, we reviewed the financial report and management letter prepared by the City's independent auditors for the year ending June 30, 1980. The management letter raised concerns about the adequacy of the present accounting and financial management systems. You directed me to prepare recommendations for correcting the specific problems described by the Auditors and for preventing a recurrence. My conclusions are: 1. There is immediate need to revise and install adequate accounting and control procedures, train existing personnel, and bring the City's accounting records up to date. The work should be completed as soon as possible, and I recommend the use of consulting services for completing it. This work can and should be completed by the end of July. The cost estimated for this work ranges from $11,500 to $16,000. 2. There is a need, though less urgent, for adequate supervision, staffing and data processing. These needs must be further defined and alternatives identified . based upon the requirements that will result from the work described in 1. above. These needs should be identified by October and recommended actions implemented by the end of December of this year. The costs for this work cannot be estimated at this time. It is possible that existing personnel, if adequately trained and assigned, can satisfy these needs. It is now almost certain that alternative data processing capability will be required. Problem Description The independent audit and financial report for the year ending June 30, 1980, was not received until the end of April, 1981. The report was delayed approximately six months because of the necessity to make numerous corrections and adjusting entries Page Two to the City's accounting records and books. The Management Letter prepared by the auditors contained several very significant comments regarding.inadequacies and weaknesses in the City's accounting procedures, along with recommendations that corrective measures be taken. The major problems identified were: inadequate controls on cash receipts and disburse:= meets; inadequate control on account entries to assure completeness and accuracy; and lack of timeliness in making entries to assure that records are kept up to date. The sources of these problems were also noted and included: 1. The City's dependence upon a data processing system that did not prove sufficiently reliable nor provide sufficient documentation for tracing errors; and 2. the lack of adequately trained and experienced personnel (both supervisory and clerical) on the City staff to monitor problems and initiate corrective measures. The above problems and their causes notwithstanding, the independent audit revealed no evidence of any misappropriation or other misuse of public monies. Further, the financial report revealed that the City ended the fiscal year with a very good financial condition. My review of the(i-ty's operations during the period since June 30, 1980, indicates that conditions have not changed from those examined by the independent auditors; the same problems and their causes continue. Further, I would add two additional concerns. The City's investment of idle monies has not been as aggressive and effective as it could have been. The City's budget management and control procedures are much more complex than need be. Without an accurate and up- to-date supporting accounting system, maintaining budget control and management is quite impractical. These two concerns have led to an underutilization of the City's resources, in tenors both of revenue generation and service capability. This coming fiscal year, beginning July 1, 1981, will present scxme very significant financial challenges. 1. City revenues continue to increase at a rate of half or less that of inflation in the City's costs. 2. The City has lost much of its.ability to adjust its own revenues as a result of Proposition 13 and does not have direct control over major expense items (such as law enforcement) . 3. The State is now faced with its own fiscal problems in the coming year, indirectly resulting from Proposition 13, and now has under consideration budget bills that threaten major reductions in revenues to Saratoga. Traditionally, Saratoga has relied heavily on these revenues to support its services to the community. For the City to meet these and other challenges effectively, it must have an adequate financial management system; one that is capable of maintaining adequate controls, providing accurate and timely information, and which is inexpensive and simple to operate. Page Three Reccnunended Action We are just one month from the end of the current fiscal year. Therefore, the most pressing needs are to bring our current accounts up to date, prepare for the year- end closing, and develop the annual financial report. Now is the time to make the necessary changes and improvements in our accounting procedures. These changes should be made coincidental with the opening of the new fiscal year. This work cannot be accomplished with present staff. It will require a concentrated effort by knowledgeable and experienced people. Informally, I have requested proposals from two consulting firms to do the specific work needed within the time available. Copies of the proposals received are attached for the City Council's review. I believe either firm can perform the work in a completely satisfactory manner, within the time available. I recommend the City Council accept the proposal of Arthur Andersen & Co., at a cost not to exceed $11,500 and that the firm be given immediate authorization to proceed. The advantages offered by selection of Arthur Andersen & Co. are: 1. Having performed the independent audits for the City over the past two years, the firm is already familiar with the problems and conditions of the work to be performed. 2. The firm is under contract to perform the independent audit for the current fiscal year, and the work will dovetail with the audit preparations. 3. The estimated costs for the work is less and includes a greater amount of time dedicated to procedures improvement. 4. Present staff are familiar with and have worked effectively with some members of the consulting team. Future Actions During the course of the work contemplated above, determination will be made of City's supervision and staffing requirements for the accounting operations. Also, determination will be made whether these requirements can be fulfilled with present staff. The results of these findings and conclusions with recommendations will be reported back to the City Council in July or August. At about the same time or sooner, I will reccmend to the City Council further steps for determining the City's data processing requirements. The present data processing service, in addition to its inherent problems discussed earlier, has notified the City it is about to discontinue the current system. P.M Attachments (Councilmembers only) be ARTHUR ANDERSEN & CO. 99 ALMADEN .BOULEVARD SAN JOSE, CALIFORNIA 95113 (408) 998 -2112 May 28, 1981 Mr. J. Wayne Dernetz City Manager City of Saratoga 13777 Fruitvale Avenue Saratoga, California 95070 Dear Mr. Dernetz: At your request, we are pleased to submit this addendum to our proposal, dated May 27, 1981, to assist the City of Saratoga with its short -term financial planning and reporting. This addendum expands on certain items included in our proposal. Scope of Our Work Additional information on the scope of our work on this project is as follows: - Reviewing the existing accounting and reporting functions. This activity would include a review of each of the City's major processing cycles including: - General ledger entry. - Accounts payable posting, including encumbrance processing. - Accounts receivable posting, including revenue recognition. - Treasury, investments and cash management. - Expenditure and revenue subsidiary ledger posting, including labor distribution. - Chart of accounts and funds structures. A by- product of this review function would be an analysis of the City's financial staff organization. We would assist you in determining what changes need to be made in the short -term with respect to staffing levels, organization and experience requirements. ARTHUR ANDERSEN & CO. -2- - Formally documenting the accounting and reporting activities. The result of this activity would be a step -by -step procedural manual for each of the City's processing cycles. These procedures are expected to consist of written instructions and of processing flowcharts. - Training the current accounting personnel. This activity is an integral part of each of the two previous activities. - Assisting the City with the fiscal 1981 year -end closing. This activity would be accomplished both as part of the other training activities and as part of our preparation for the fiscal 1981 audit of the City's Financial Statements. Working with the City's management in developing a revised budget and financial reporting format. This activity would be accomplished by conducting interviews with the City Manager and the City Department Heads. The goal is to develop budget and financial reporting formats which allow for project accounting including revenue and cost allocations. This should result in improved financial planning information which will assist the City in operating in the new era of reduced taxes and self supporting services. - Develop, document and assist in the implementation of a formal encumbrance system. This activitiy would be accomplished along with the first three activities. - Assist the City Manager in developing a quarterly financial reporting package. The quarterly report would be a condensed version of the City's Annual Financial Report which would be revised as part of this activity and the Budget revision activity. I I r ARTHUR ANDERSEN & CO. ',ACM Project Deliverables The products of this project will include the following: - A detailed procedures manual which includes written procedures for each of the major processing cycles, including the new encumbrance system. - Training of existing accounting personnel. - Recommendations on accounting staff organization and requirements. - A fiscal year -end closing checklist. - A revised budget, annual financial reporting and accounting format. This would include recommenda- tions on revisions to the current chart of accounts and funds structure. - A quarterly reporting format which is based on the annual reporting format. Fee Estimate Our fee estimate of $11,500 is based upon our regular per diem rates plus out -of- pocket expenses, which are expected to consist of: Person Jim Hudak Jim Benson Stan Watt Terry Kayser MICD staff Hours Assigned To Proiect 40 8 40 24 person 60/ Total per -diems Expenses, including typing Total estimated costs Hourly Rate Total $106 $ 4,240 120 960 65 2,600 48 1,152 38 - -2,280 11,232 268 $11,500 I . w ARTHUR ANDERSEN & CO. -4- Our estimate reflects reductions in time require- ments anticipated to be obtained by our assigning personnel who have developed a degree of familiarity with the City's procedures in connection with our past and current examina- tions of the City's financial statements. We are pleased to have this opportunity to present this addendum to our proposal. If you have any questions concerning this addendum, please give me a call. Very truly yours, ARTHUR ANDERSEN & CO. B? �1� ps.C- Benson .. Peat, Marwick, Mitchell &Ca Mr. J. Wayne Dernetz City Manager City of Saratoga 13777 Fruitvale Avenue Saratoga, California 95070 Dear Mr. Dernetz: lih 1981 Certified Public Accountants Three Embarcadero Center San Francisco, California 94111 (415) 981 -8230 May 22, 1981 Thank you for the opportunity for Larry Batina and me to meet with you today to discuss the City of Saratoga's accounting system and procedures. Based on our discussion, we have prepared this letter which spells out our proposal of assistance to the City. In the following paragraphs, we present a discussion of the background leading to the study, our proposed approach and work program, the staffing we plan to use on the engagement, and an estimate of our fees and expenses. RACVCRnuNn The City of Saratoga is a small city on the peninsula that has recently experienced rapid population growth. The City now has a population of approximately 30,000 people, and has reached maturity in terms of residential building sites. The City has had a tradition of providing limited governmental services to its citizens, and accordingly has expended a small amount of resources on its accounting and financial management function. As you indicated in our discussion this morning, the City has recently experienced increasing difficulties in performing the accounting func- tion. Two years ago, the City's chief accounting supervisor left the City, and his position was not filled with an individual of equivalent background and understanding of governmental accounting. In the inter- vening two years, there has been considerable turnover in the Accounting Department, which has complicated an already difficult situation. The City currently uses a service bureau to perform its accounting record - keeping. The City has experienced difficulties in achieving timely and accurate service through this arrangement. In addition, it appears that the service bureau is discontinuing its governmental accounting services, and it is unclear as to how long it will provide service to the City of Saratoga. PPeatMarwick,Mitche11&Co. Mr. J. Wayne Dernetz City of Saratoga May 22, 1981 Page 2 In each of the past two fiscal years, the City's independent auditors have issued management letters which provide a series of recommended im- provements to the City's accounting procedures. The auditors' comments focused on: • required improvements to the overall control environment; • required improvements in the treasury area, including improvements in bank account reconciliations and revenue and expenditure accounting; • improvements in financial reporting and control; and • improvements to the City's automated accounting system. Against this background, the .City has decided to undertake a short -term accounting system improvement project which will focus on achieving a timely and accurate close of the accounting records for the fiscal year ended June 30, 1981. In addition, the City is interested in developing procedures that will position the City to open its books for next fiscal year in an effective manner. The remainder of this letter presents our proposed approach to providing assistance to the City of Saratoga in the improvement of its accounting system and procedures during the months of June and July. APPROACH AND WORK PROGRAM The approach we propose to follow at the City of Saratoga is consistent with the outline we discussed this morning. We have organized our work into four primary tasks which correspond to the four you outlined on the blackboard. Each of these is discussed below: Task 1 - Review and Improve Existing System and Procedures Our first task will commence with a review and assessment of your existing system and procedures. We will interview your current personnel to determine which accounting entries are posted to the accounting records, and how effectively this task is performed. We will also review the procedures for inputting data to your automated accounting system, and we will review the reports that the system produces. We also plan to examine your chart of accounts, fund structure, and budget development procedures. PPeat,Marwick, Mitchell &Ca Mr. J. Wayne Dernetz City of Saratoga May 22, 1981 Page 3 The second portion of our effort in this task will consist of developing improved procedures for posting subsidiary ledgers and the general ledger. These procedures will be documented in an outline fashion and fully explained to City Accounting personnel. Following the development of these procedures, we will conduct training sessions with City personnel to ensure that the procedures are fully understood and implemented. The third portion of our work in this task will focus on developing an encumbrance control system and procedures for implementation starting July 1, 1981. Task 2 - Improve Budget Format In this task, we will work closely with you to improve the City's budget format and the budget development process. Our goal will be to eliminate the existing excessive complexities and to integrate the accounting chart of accounts with the budget presentation. We propose to help the City develop a program oriented budget that is both (a) useful to the City Council for decision - making, and (b) practical and easy for the department heads to use in managing their operations. Task 3 - Assistance in Year -End Closin The third task will consist of providing technical as- sistance to the city accounting staff in performing the year -end closing. Our first step will be to determine the extent of the work required to close the books according to the most appropriate timeframe. We will identify all required tasks, estimate the time required to perform each. task, and assign responsibility as appropriate to City personnel. We will develop a detailed schedule and time- table chart for monitoring progress against the schedule. The second portion of our effort in this task will be providing technical assistance in key areas such as: inter - fund transfers, recording revenues and expenditures on the accrual basis of accounting, posting adjusting journal entries, and developing the general ledger trial balance by fund. PPeat,Marwick, Mitchell &Ca Mr. J. Wayne Dernetz City of Saratoga May 22, 1981 Page 4 As part of this task, we plan to examine the City's current fund structure and develop recommendations for improving it. Specifically, we believe the current fund structure is excessively detailed and can be greatly simplified. Task 4.- Assistance in Training and Development of Financial Statements Our fourth task will include assistance to the City in the development of its annual financial statements. Annual financial statements are the responsibility of management, and should be prepared by internal accounting staff. We will identify the detailed steps necessary to prepare the financial statements, and we will train City staff in the required steps. The financial statements should be devel- oped in accordance with generally accepted accounting principles (GAAP) as outlined by Governmental Accounting, Auditing, and Financial Reporting (GAAFR). We also plan to assist the City in the development of a quarterly reporting package to the City Council. This package should contain reports that compare year -to -date actual expenditures to budget. Task 5 - Develop Recommendations Regarding Staffing of the Accounting Function As part of our work in the above four tasks, we will develop recommendations regarding the appropriate staffing for the accounting function. For purposes of this proposal, we have identified this activity as a separate task. The City has a clear need for improving the supervision and management of its accounting processes. The performance of the above tasks will provide us the understanding to specify the requirements in terms of skills and experience. It is possible that the appropriate level of supervision can be provided by existing City personnel. Conversely, it may be appropriate for the. City to create and fill a new accounting supervisory position. We will examine this issue and present the City with our recommendation at approximately the mid -point of our work. pPeat'Marwick, Mitchell &Cn Mr. J. Wayne Dernetz City of Saratoga May 22, 1981 Page 5 We are confident that this work program will provide sufficient assistance to the City to effectively close this fiscal year -end and prepare for the next year. TIMETABLE We plan to conduct the work described above over a two - month period commencing June 1 and completing all work by the end of July 1981. PROJECT STAFFING As indicated in our conversation this morning, we plan to staff this project with professionals from our Management Consulting Department and our Accounting and Auditing staff from our San Francisco and San Jose offices. The specific individuals we plan'to assign to this engagement are as follows: Lawrence J. Batina Mr. Batina will serve as the Project Director for this engagement. He is a Senior Consultant in the public sector practice of our Management Consulting Department in San Francisco. He is a specialist in governmental accounting and.the development of municipal accounting systems. He is a CPA in the State of California. He has assisted many governmental clients in improving their accounting systems and procedures, including: - City of San Pablo - Port of San Francisco - Central Marin Sanitation Agency - Katharine Branson School - City of San Mateo - Oakland Unified School District - Foothill- DeAnza Community College District - City of Eugene, Oregon - Oregon Department of Transportation - State of Washington - San Francisco Housing Authority - City of San Carlos - City of South Lake Tahoe Pat, Marwick, Mitchell &Ca Mr. J. Wayne Dernetz City df Saratoga May 22, 1981 Page 6 Barbara Kaiser Ms. Barbara Kaiser will act as staff accountant on this engagement. Ms. Kaiser is an auditor with our San Jose office. Over the last two years, Ms. Kaiser has had significant experience in auditing governmental clients. Among her most recent engagements include the audits of San Luis Obispo County and the City of Mountain View, both the general purpose audit and the Community Development Block Grant audit. Thomas W. Allen Overall partnership supervision of this project will be provided by Thomas W. Allen, Partner -in- Charge of the Firm's Public Sector Practice in Northern California. Mr. Allen, also a CPA, has assisted a wide variety of governmental clients in the area of accounting and financial management. His past and current clients include: - City of Burlingame - City of Millbrae - City of Union City - Cupertino Unified School District - Oakland Unified School District - New Haven Unified School District - City of San Francisco - Stockton Unified School District - City of Sunnyvale - Livermore Unified School District - Port of San Francisco - Central Marin Sanitation Agency - City of Seattle Engineering Department - State of Washington - Oregon Department of Transportation - North Santa Clara County Joint Powers Authority (Lead Agency: City of Palo Alto) - West County Agency Resumes for Messrs. Batina and Allen are provided in Appendix A. Pat, Marwick, Mitchell &Ca Mr. J. Wayne Dernetz City of Saratoga May 22, 1981 Page 7 We are confident that this project team possesses the appropriate skills and experience required for this project. PMM &C0. QUALIFICATIONS AND REFERENCES In Appendix B to this letter, we have provided descriptions, of recent similar projects and client references. ESTIMATED FEES AND EXPENSES Our fees are based on the amount of time spent on an engagement by members of our professional staff, each of whom charges at a standard hourly rate that is commensurate with his or her level of experience, education, and position in the Firm. In addition, we are reimbursed for out -of- pocket expenses such as mileage, subsistence, typing, report reproduction, telephone and the like. Our estimated budget for this project is as follows: Governmental T. W. Allen L. J. Batina Accountant Total Task 1 4 16 62 82 Task 2 4 20 16 40 Task 3 4 12 62 78 Task 4 4 12 40 56 Hours 16 60 180 266 Rate $ 175 73 40 $ 2,800 4 380 ;;7,200 14;380 Expenses @ 10% 1,438 $15,818 PPeat,Marwick,Mitchell &Co. Mr. J. Wayne Dernetz City of Saratoga May 22, 1981 Page 8 We propose to conduct this engagement at the level of effort described above for an amount that will not exceed $15,000. Of course, if less time is required to perform the work, we will spend less time and our fees will be commensurately lower. Thank you again for the opportunity to submit this proposal to the City of Saratoga. We look forward to being of assistance to you in the performance of this important work. Very truly yours, PEAT, MARWICK, MITCHELL & CO. o a Thomas W. LA111n Partner TWA:bk A P P E N D I X RESUMES THOMAS W. ALLEN Mr. Allen is a Partner in the San Francisco office of Peat, Marwick, Mitchell & Co. He is responsible for the Firm's management consulting practice with public sector clients in the area served by the San Francisco Bay Area, Portland, and Seattle offices. During the past nine years, Mr. Allen has conducted studies in accounting and financial management, management information systems design, personnel, management training and assistance, and related areas for a variety of public sector and commercial clients. Mr. Allen recently served as the Engagement Manager on a major performance audit project for the Metropolitan Transportation Commission, the regional transportation planning agency of the San Francisco Bay Area. In this project, PMM &Co. developed performance indicators and a draft Performance Audit Guide for conducting audits of transit properties. The guide was then field- tested through four pilot performance audits of major Bay Area properties, then significantly modified and reissued to MTC. He also recently completed a project to develop performance budgeting and auditing procedures for the City of Sunnyvale. Mr. Allen served as the Project Manager on an engagement to design and implement a Financial Information and Resources Management (FIRM) System for the City and County of San Francisco. This system includes an auto- mated accounting and financial reporting system as well as performance and program budgeting capabilities. Mr. Allen participated on the design of an Engineering Financial Information System for the Engineering Department of the City of Seattle. This system will include full capabilities in fund accounting and financial reporting as well as project management and cost accounting reporting. Mr. Allen conducted a project with the Municipal Finance Officers Associa- tion which investigated new techniques for integrating cities' grants management processes with their regular budgeting and financial management. Participating in the study was a consortium of eight U.S. cities. Mr. Allen participated in the development of a large -scale computerized cost information reporting system for the U.S. maritime industry, in a project jointly sponsored by the Maritime Administration and the Federal Maritime Commission. The system is designed to facilitate uniform industry regulatory reporting by U.S. flag steamship companies. PMM &Co. performed all aspects of the engagement from conceptual design through detail design, programming, testing, and prototype implementation. Other representative engagements in which he has participated include: an analysis of the financial and accounting system in the City of Burlingame, California; Thomas W. Allen Page 2 • a management survey of five functional areas in the business operations of the Stockton Unified School District; • an operations improvement program for the Oakland Unified School District that included the analysis of all major finance and accounting functions; • a review of cost allocation procedures for the City of Millbrae, California; • a financial feasibility study for a community college that was considering a large potential real estate investment; • management assistance in various projects for the U.S. Department of Labor (DOL) and Office of Economic Opportunity (OEO); • a study of full service cost requirements for several nonprofit cultural organizations, in an engagement performed for the National Research Center of the Arts in New York City; • performance as Pool Accountant for a pooling agree- ment of 27 Pacific Basin steamship companies, foreign and domestic, including the design of a computerized statistical reporting system; and the conceptual design of a computerized "on— line" container control system for a large U.S. West Coast steamship company. Prior to joining PMM &Co., Mr. Allen served as a consultant with.Fry Con- sultants Incorporated, a large international management consulting firm headquartered in New York. For two years, he was a Credit Officer with Wells Fargo Bank, responsible for the installment lending activities of a major metropolitan office. Later, Mr. Allen served as a consultant to the Bank. Mr. Allen served for two years as a line officer in the U.S. Navy, with two deployments to Vietnam aboard a heavy cruiser. Mr. Allen is a member of the Municipal Finance Officers Association, the International City Management Association, and the Association of Government Accountants. He is also active in community affairs, currently serving Thomas W. Allen Page 3 on the Board of Trustees of the San Francisco Ballet, as well as partici- pating as an active member of the San Francisco Planning and Urban Research Association (SPUR) and the U.S. Navy League. Mr. Allen received his Bachelor of Arts degree from the University of Pennsylvania, and his Master of Business Administration degree in Finance from Stanford University. He is a Certified Public Accountant in the State of California, a member of the American Institute of Certified Public Accountants, and a member of the California Society of CPAs. He is also a member of the Governmental Accounting Committee of the San Francisco chapter of the California Society of CPAs. LAWRENCE J. BATINA Mr. Batina is a Senior Consultant in the San Francisco office of Peat, Marwick, Mitchell & Co. specializing in management consulting for public sector clients. His areas of expertise include accounting and management information systems, financial management, cost accounting and perfor- mance /organizational reviews. Mr. Batina has played a significant role on a variety of engagements in- cluding the following: Conducted a performance audit of the primary transit operator in the Soth Lake Tahoe Basin. This engage- ment included evaluating performance against stat- istical and management benchmarks, program compliance with Federal and State guidelines and developing a time - phased set of recommendations for transit improvement. Assisted in the design of a statewide financial management system for the State of Washington's Office of Financial Management. This engagement involved developing the conceptual framework and general slystem design for an agency financial reporting system to meet the management information requirements of the State's various agencies. Prepared an indirect cost allocation plan for the City of Eugene, Oregon, to recover indirect costs of central service activities and developed a financial management improvement program to evaluate the Finance Department's organization structure. Developed and implemented an accounting system conceptual design for a new joint powers agency in Marin County, California. A related engagement included defining the organizational structure requirements for this new agency and preparing position descriptions for the positions of general manager and chief financial officer. Assisted the Port of San Francisco in implementation of a new financial management informatin system. This engagement involved adapting the accounting system conceptual design developed in an earlier project into a system which provides for strengthened internal management reports and timely periodic financial reporting to the Port Commission. Lawrence J. Batina Page 2 Designed a user charge /industrial cost recovery accounting and management information system for the Metropolitan Wastewater Management Commission of Lane County, Oregon. This engagement involved estab- lishing several accounting sub - systems to integrate with the financial reporting system as well as identifying EDP requiremtns and training Commission management and staff. Assisted in the implementation of a computerized financial management system for the Bay Area Rapid Transit District. This engagement emphasized de- fining and developing the management information requirements of BART department heads. Prior to his transfer to the Management Consulting Department, Mr. Batina spent two years in Peat, Marwick, Mitchell & Co.'s Audit Department. During this period, approximately 50% of his time involved in the audits of not - for- profit clients. Engagements in which Mr. Batina had primary respon- sibility include: • Oakland Housing Authority; • Redevelopment Agency of San Pablo; • City of San Mateo (general audit and audit of the Community Development Block Grant Program); and • San Francisco Housing Authority. Mr. Batina received a Master of Business Administration degree from the Harvard University Graduate School of Business and a Bachelor of Science Degree in Business Administration degree from the University of California at Berkeley. While at U.C. Berkeley, his emphasis was accounting, finance and computer science. Mr. Batina is a Certified Public Accountant in the State of California. A P P E N D I X QUALIFICATIONS, EXPERIENCE AND REFERENCES APPENDIX B PMM &C0. QUALIFICATIONS, EXPERIENCE AND REFERENCES This appenidx of our proposal describes the background and capabilities of PMM&Co., provides a sample of relevant engagements and provides a list of references. BACKGROUND AND CAPABILITIES Peat, Marwick, Mitchell & Co. is a large and diversified multinational Firm offering audit, tax, and management consulting services to approximately 50,000 clients throughout the world. It maintains 300 offices in the United States and abroad and employs more than 20,000 professional staff. PMM &Co.'s Management Consulting Department was started as a specialized segment of the Firm's client services in 1906. It has grown to over 1,500 professional staff worldwide with more than 1,000 full -time management con- sultants in the United States. PMM &Co.'s Management Consulting Department, by itself, is one of the largest and most diversified consulting organiza- tions in the world. The professional staff consists of industry specialists in varied management and technical disciplines. The Firm maintains Manage- ment Consulting Departments in a number of offices strategically located around the world, including most major U.S. cities. PMM &Co. provides its clients with consulting services in almost every signi- ficant operating and administrative area. Some of the areas most frequently involved include: General Management - Establishment of operational goals and objectives, development of organizational structures and preparation of organizational manuals, statements of operational policies of policies and procedures and reviews of administrative codes. Performance Auditing - Design of performance audit systems, development of performance audit guides, handbooks and manuals, conduct of management audits and performance audits, technical assistance in per- formance of audit programs, and development of perfor- mance measurement criteria and performance standards. Organization Planning & Review - The planning and /or reviewing of the policies, objectives and goals, short - term and long -range plans, management audits, etc., at the top executive level of either the parent, subsidi- ary, or major division of a corporation. Also includes organization structure design, charts and manuals. Personnel Productivity Studies - Addresses productivity improvement in organizations with large administrative and clerical staffs, using a combination of various B -2 industrial engineering techniques. A specialized metho- dology is applied to personnel in the electronic data processing organization. Emphasis is on improvement of the efficiency and effectiveness of operations and /or the reduction of costs. Accounting Systems - Design of general accounting systems, cost accounting procedures, indirect cost allocation reports, account coding structures, internal controls and financial reporting. Management Information and Reporting Systems - Determination of information systems requirements, responsibility reporting, performance measurement, cost studies and budgetary control procedures. Data Processing - Feasibility studies, systems design and installation, equipment evaluations, existing equipment configuration studies, equipment utiliza- tion studies and telecommunication studies. Financial Management - Cash forecasts and cash flow analysis, treasury and cash control, short- and long -range financial planning, annual and capital budgets, program budgeting, cost - effectiveness stud- ies and internal control reviews. Personnel Management - Executive search, position classification and job evaluation studies, wage and salary surveys, pension and employee benefits plan- ning, actuarial studies, personnel record procedures and systems, personnel administration programs and training and development seminars. Office Management - Administrative practices, record retention programs, paperwork simplifications, pro- cedures manuals, and forms and reports design and control. Purchasing, Stores and Equipment - Organization and procedures reviews, specification policy reviews, inventory and property control procedures, and equipment utilization and reporting systems. Planning, Programming and Budgeting - Definition of quantifiable objectives, assistance in formu- lating program structures, trade -off analysis and cost - effectiveness studies, translation of resource allocations and multi -year program requirements into annual organizational budgets, and development and implementation of resource management systems. , r• � B -3. Management Sciences - Operations research studies and analysis, simulation and forecasting, including technological forecasting, application of decision theory, development of models, application of quan- titative theory and mathematical techniques to a wide range of analytical studies, planning and control systems design, and computer simulations. Management Seminars - Development and conduct of special - purpose training designs to meet the needs of public and private groups, development and con- duct of seminars relating to new management concepts. Relations with Federal Agencies - Cost reporting procedures, utilization of matching funds, grant application preparation, utilization control of block grants, performance auditing and researching for potential subventions. Facilities Planning - Economic feasibility studies, site location analysis, organizational space require- ments, work flow pattern analysis, interdepartmental relationships and adjacency requirements, capacity requirements, methods analysis and layout design. RELEVANT EXPERIENCE This section presents examples of engagements in which we have assisted both governmental and non - profit clients, showing our commitment to the public sector practice. City of Union City PMM &Co. recently completed an evaluation of the City's finance function, encompassing organization staffing, accounting procedures, and a review of data processing alternatives. The final report contained current and recommended organization structures, management position descriptions, and recommended action plans for improving the finance function, including detailed requirements for establishing a fixed assets system. PMM&Co. recommended that the City upgrade its essentially manual accounting system to an automated one, and we are currently providing the City with computer hardware and software selection and acquisition assistance, as well as implementation assistance. Reference: Ms. Zenda James Finance Officer (415) 471 -3232 0- City of Burlingame, California B-4 PMM &Co. completed a major review of the City of Burlingame's Finance Depart- ment, concentrating on improving the operations of the Department and the financial information it provided to the City Council, the City Manager, other City departments and the public. During the course of our review, we developed recommendations in the following areas: Finance Department organization and staffing, accounting procedures, financial reporting, management reporting, and financial information processing. In addition, we provided guidelines for the implementation of our key recommendations in these areas. Reference: Mr. David N. Millican Finance Director (Now at City of South Lake Tahoe) (916) 541 -2900 City of Sunnyvale PMM &Co. has conducted an engagement to develop a performance audit program for the Department of Public Safety, City of Sunnyvale, California. This engagement was performed as part of a test conducted by the International City Management Association, in conjunction with the U.S. General Account- ing Office (GAO), to test the practical application of GAO's Standards for Audit of Governmental Organizations, Programs, Activities and Functions. The engagement entailed a comprehensive survey of laws, policies, programs and operations; assisted in developing suitable goals and evaluative cri- teria; and prepared a detailed audit program which encompassed the elements of financial, compliance, economy and efficiency, and program results. PMM &Co. has therefore played a leading role in illustrating that the GAO standards can be applied to local government operations, and significantly contributed to the state of the art in goal setting and performance auditing. Reference: Mr. Ed Coli Finance Director (408) 738 -5481 New Haven Unified School District PMM &Co. performed a management audit for the New Haven Unified School District that included a review and analysis of the following functional areas: organization and staffing of the business services department 1 ti • B -5 • data processing hardware, systems, and future plans; • budget preparation and presentation; • financial services; • review of internal controls and special audit of - federally funded programs; and • nonfinancial services. As part of this engagement, we developed recomendations for the District to follow upgrading its data processing hardware and system capabilities Reference: Mr. Pat R. Gibbons Director of Business Services (415) 471 -1100 Marin Community College District PMM &Co. recently completed a major project at Marin Community College District that focused on improving the District's accounting system and and procedures and data processing operation. PMM &Co. performed the following tasks: • analyzed the key accounting transaction cycles and developed recommendations for improvements in poli- cies and procedures; • analyzed the accounting and data processing organiza- tional structures and recommended new organizational structures; • assisted the District in developing closing proce- dures and methodology for preparing accurate and timely annual financial statements; • analyzed the automated components of the accounting system and made recommendations for immediate improve- ment; analyzed data processing operating procedures and controls and made recommendations for immediate improvement, and conducted two data processing workshops for the Board of Trustees and key top management administrators that explained their current data processing situa- tion and provided recommendations for developing a long -range planning capability. i B -6 Reference: Ms. Delores A. Sanford Business Manager now at Marin Municipal Water District (415) 924 -4600 Central Marin Sanitation Agency PMM &Co. has provided this new joint powers agency with a variety of services including: organizational analysis and design; development of position descriptions; accounting system design and implementation; and other finan- cial and management services. In developing the organizational design and position descriptions, PMM &Co. surveyed similar agencies to ascertain information such as compensation practices and experience requirements. Reference: Mr. Leo T. Cronin Chairman (415) 981 -1777 City of Petersburg, Alaska PMM &Co. conducted a review of the City of Petersburg's financial management system and organization structure. The objectives of this study were to: • review the accounting, financial management, and financial reporting activities of the City; • assess the feasibility of steps to consolidate the accounting and data processing functions, and to improve the reporting of key information to the City Manager and the City Council; • review the organization and planning structure of the City; • develop recommendations for improvement where possi- ble; and develop work programs for remaining tasks. Reference: Mr. H. D. Scougal Retired City Manager (907) 772 -3712 State of California Department of Transportation B -7 This engagement represents PMM &Co.'s experience in conducting an organiza- tion and management effectiveness study for a state -wide agency charged with construction and maintenance of California's extensive highway and road system as well as mass transit development, among others. This study covered administrative and support functions, as well as management infor- mation systems related to the central office and the multiple district offices. The final report presented recommendations designed to strengthen the ability of top management to control operations throughout the state. Central to this analysis was an assessment of the desirability of central- ization vs. decentralization of various functions. Reference: Ms. Adriana Gianturco Director (916) 445 -2201 Chapman College This recently completed top management organization study had the objective of assisting the new President to identify the key strategic issues and management challenges facing the college and to reorganize top management to address those priorities. In -depth interviews were conducted with all members of the management team. The final report included the definition of responsibilities for all key positions, as well as a series of organizational structures designed to move the college to the ideal structure over a three - year time horizon. The study also involved more in -depth examination of management effectiveness in a number of selected functional areas including the Business Office. Reference: Mr. G. T. Smith President (805) 548 -7484 Livermore Unified School District PMM&Co. performed a comprehensive organization study covering all functional areas of school district operations. The project involved interviews of all management personnel to the first -line supervisor level as well as use of questionnaires with all staff. The objectives for the study included identi- fication of opportunities for cost savings; provision for improved training, supervision and succession; and clarified delineation of functional respon- sibilities. Interim and long -term organization structures were recommended, as were detailed staffing requirements. Reference: Mr. Leo R. Croce Superintendent (415) 447 -9500 CITY OF r'r /�. Initial: AGENDA BILL NO. 3i� Dept. Bd. DATE: 5/29/81 C. Atty. DEPARTMENT: City Manager C. Mgr. suB EcT :Provision for City Manager Housing Assistance Issue Summary In recruiting for the City Manager position, the City Council was aware of the very high cost of living in Saratoga and the increasing practice among cities to provide some form of housing assistance for City Managers moving into the community. The City, therefore, advertised its willingness to consider some form of house assistance in its advertising. In selecting the present City Manager, the City Council entered into an agreement which provided certain options for direct housing assistance, pending actual requirements at the time suitable housing could be located. The City Manager has now located suitable housing and has found available financing so that direct financial assistance from the City is not necessary. However, this financing requires a loan guarantee by the City to the lender, as an added security to the lender. Recommendation Adopt Resolution No. which approves a loan guarantee agreement and authorizes the Mayor to execute the agreement on behalf of the City Council. Fiscal Impacts There are no fiscal impacts to the City unless the borrower defaults on the loan. Exhibits /Attachments 1. Resolution 2. Loan Guarantee Agreement Council Action Passed 4 -0. RESOLUTION NO. A Resolution of the City Council of the City of Saratoga approving a continuing guarantee to Pacific Valley Bank for a Housing Loan for J. Wayne Dernetz, City Manager, and Barbara P. Dernetz, Spouse. WHEREAS, on April 1, 1981, the City of $- aratoga and J. Wayne Dernetz entered into an agreement on terms and conditions under which J. Wayne Dernetz was appointed the office of City Manager; and, WHEREAS, in anticipation that J. Wayne Dernetz would establish residence within the corporate limits of the City, said agreement provided for certain options under which the City of Saratoga would directly assist in financing the purchase of a home; and, WHEREAS, in lieu of direct financing assistance, the City of Saratoga may fulfill its commitment through provision of a loan guarantee with a private lender and satisfactory loan provisions have been arranged with Pacific Valley Bank; NOW, THEREFORE, BE IT RESOLVED THAT 1. The City to Pacific Valley • ten thousand doll Dernetz (Spouse); A" being attached • Council hereby approves the continuing guarantee Bank of a Trust Deed Loan not to exceed One hundred ars ($110,000.00) to J. Wayne Dernetz and Barbara P. a copy of the continuing guarantee, marked "exhibit hereto; and, further 2. The Mayor of the City of Saratoga be and hereby is authorized to execute the Continuing Guarantee on behalf of the City of Saratoga and this City Council. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Saratoga this day of 19 by the following vote: AYES: NOES: ABSENT: ATTEST: City Clerk Mayor CORPORATE RESOLUTION AUTHORIZING GUARANTEE RESOLVED, that the President or and the Secretary or of this corporation be and they are hereby authorized and empowered, for and on behalf and in the name of this corporation to guarantee, from time to time and on such terms and conditions as Pacific Valley Bank (hereinafter called the "Bank ") may require, payment of any and all of the indebtedness (including any and all advances, debts, obligations and liabilities, present or future) of J Wayne Dernetz and Rarhara p Dernetz to the Bank, provided that the liability of this corporation upon such indebtedness shall not exceed at any one time the sum of One Hundred Ten Thousand and no /100 ($ 110,000.00 ) for principal, together with all interest upon the indebtedness or upon such part thereof as shall not exceed the foregoing limitation. RESOLVED, FURTHER, that said officers be and they are hereby authorized and empowered, for and on behalf and in the name of this corporation (1) to execute and deliver such form of guarantee or guaran- tees as the Bank may require; (2) as security therefor to convey, grant, assign, transfer, pledge, mortgage or hypothecate and deliver by such instruments in writing or otherwise as may be demanded by Bank, any of the property of this corporation as may be required by the Bank; (3) from time to time to substi- tute for said property or any part thereof, other property to be held on like terms; (4) to renew said guar- antee or guarantees in whole or in part, and to execute other or further guarantees and security instru- ments from time. to time; and (5) to perform all acts and execute and deliver all instruments which the Bank may deem necessary to carry out the purpose of this resolution; and RESOLVED, FURTHER, that this resolution will continue in full force and effect until the Bank shall receive official notice in writing from this corporation of the revocation thereof by a resolution duly adopted by the Board of Directors of this corporation and that the certification of the Secretary of this cor- poration as to the signatures of the above designated officers shall be binding on this corporation. of City of Saratoga , Secretary , a corporation duly organized and existing under law of State of California , do hereby certify that the foregoing is a full, true and correct copy of a resolution of the Board of Directors of said corporation, duly and regularly passed and adopted at a meeting of the Board of`Directors of said corporation which was duly and regularly called and held on the day of , 19_, at which meeting a quorum of the Board of Directors of said cor- poration was at all times present and acting. I further certify that said resolution is still in full force and effect and has not been amended or revoked, and that the specimen signatures appearing below are the signatures of the officers authorized to sign for this corporation by virtue of said resolution. IN WITNESS WHEREOF, I have hereunto set my hand as such Secretary, and affixed the corporate seal of said corporation this _day of , 19 SEAL (If none, (Signature) (Secretary) so state) AUTHORIZED SIGNATURES: (Title) L 11 01 -75) JCO e) CONTINUING GUARANTY (RELATING TO PAST AND FUTURE INDEBTEDNESS) For valuable consideration, the undersigned (hereinafter called Guarantors) jointly and severally unconditionally guarantee and promise to pay ------------------------- PAUE CAAI. LE Y .(3liJyK------------ .---- -_ - - -- .-(hereinafter called Bank), or order, on demand, in lawful money of the United States, any and all indebtedness of ... �al'�2ara..P- ,--- D2r112tz �; e--Dernetz----- and- - - -- (hereinafter called Borrowers) to Bank. The word "indebtedness" is used herein in its most comprehensive sense and includes any and all advances, debts, obligations and liabilities of Borrowers or any one or more of them, heretofore, now, or hereafter made, incurred or created, whether voluntary or involuntary and however arising, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, and whether Borrowers may be liable individually or jointly with others, or whether recovery upon such indebtedness may be or hereafter become barred by any.. statute of limitations, or whether such indebtedness may be or hereafter become otherwise unenforceable. The liability of Guarantors shall not exceed at any one time the sum of... ............ .ane..Handred.- Ten..ThoUsdn .d -.. --------- Qoltl�r - -- 411(t-- i1o/1QQ------- -- - -- -- ------ Dollars 110 noQ go (S-- _..- .-- i__...__ :_.....) for principal, together with all interest upon the in- debtedness or upon such part thereof as shall not exceed the foregoing limitation. Notwithstanding the foregoing, Bank may permit the indebtedness of Borrowers to exceed Guarantors' liability. This is a continuing guaranty relating to any indebtedness, including that arising under successive transactions which shall either continue the indebtedness or from time to time renew it after it has been satisfied. This guaranty shall not apply to any indebtedness created after actual receipt by Bank of written no- tice of its revocation as to future transactions. Any payment by Guarantors shall not reduce their maximum obligation here- under, unless written notice to that effect be actually received by Bank at or prior to the time of such payment. The obligations hereunder are joint and several, and independent of the obligations of Borrowers, and a separate action or actions may be brought and prosecuted against Guarantors whether action is brought against Borrowers or whether Borrowers be joined in any such action or actions; and Guarantors waive the benefit of any statute of limitations affecting their liability here- under or the enforcement thereof to the extent permitted by law. Any part payment by Borrowers or other circumstance which operates to toll any statute of limitations as to Borrowers shall operate to toll the statute of limitations as to Guarantors. Guarantors authorize Bank, without notice or demand and without affecting their liability hereunder, from time to time to (a) renew, compromise, extend, accelerate or otherwise change the time for payment of, or otherwise change the terms of the indebtedness or any part thereof, including increase or decrease of the rate of interest thereon; (b) take and hold security for the I)avment of this guaranty or the indebtedness guaranteed, and exchange, enforce, waive and release any such security; (c) apply such security and direct the order or manner of sale thereof as Bank in its discretion may determine; and (d) release or substitute any one or more of the endorsers or guarantors. Bank may without notice assign this guaranty in whole or in part. Guarantors waive any right to require Bank to (a) proceed against Borrowers; (b) proceed against or exhaust any security held from Borrowers; or (c) pursue any other remedy in Bank's power whatsoever. Bank may, at its election, exercise any right or remedy it may have against Borrowers or any security held by Bank, including without limitation the right to foreclose upon any such security by judicial or nonjudicial sale, without affecting or impairing in any way the liability of Guarantors hereunder except to the extent the indebtedness has been paid, and Guarantors waive any defense arising out of the absence, impairment or loss of any right of reimbursement or subrogation or other right or remedy of Guarantors against Borrowers or any such security, whether resulting from such election by Bank, or otherwise. Guarantors .waive any defense arising by reason of ility or other defense of Borrowers or by reason of the cessation from any cause whatsoever of the liability of any disab Borrowers. Until all indebtedness of Borrowers to Bank shall have been paid in full, even though such indebtedness is in excess of Guarantors' liability hereunder, Guarantors shall have no right of subrogation, and waive any right to enforce any remedy which Bank now has or may hereafter have against Borrowers, and waive any benefit of, and any right to participate in any se- curity now or hereafter held by Bank. Guarantors waive all presentments, demands for performance, notices of non - performance, protests, notices of protest, notices of dishonor, and notices of acceptance of this guaranty and of the existence, creation, or in- curring of new or additional indebtedness. Guarantors assume the responsibility for being' and keeping themselves informed of the financial condition of Borrowers and of all other circumstances bearing upon the risk of nonpayment of the ind fbtedness which diligent inquiry would reveal, and agree that absent a request for such information by Guarantors, Bank shall have no duty to advise Guarantors of information known to it regarding such condition or any such circumstance. In addition to all liens upon, and rights of setoff against the moneys, securities or other property of Guarantors given to Bank by law, Bank shall have a lien upon and a right of setoff against all moneys, securities and other property of Guarantors now or hereafter in the possession of or on deposit with Bank, whether held in a general or special account or deposit, or for safe- keeping or otherwise; and every such lien and right of setoff may be exercised without demand upon or notice to Guarantors. No lien or right of setoff shall be deemed to have been waived by any act or conduct on the part of Bank, or by any neglect to exercise such right of setoff or to enforce such lien, or by any delay in so doing; and every right of setoff and lien shall continue in full force and effect until such right of setoff or lien is specifically waived or released by an instrument in writing executed by Bank. Any indebtedness of Borrowers now or hereafter held by Guarantors is hereby subordinated to the indebtedness of Borrow- ers to Bank; and such indebtedness of Borrowers to Guarantors if Bank so request shall be collected, enforced and received by Guarantors as trustees for Bank and be paid over to Bank on account of the indebtedness of Borrowers to Bank but without reducing or affecting in any manner the liability of Guarantors under the other provisions of this guaranty. Where any one or more of Borrowers are corporations or partnerships it is not necessary for Bank to inquire into the powers of Borrowers or the officers, directors, partners or agents acting or purporting to act on their behalf, and any indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed hereunder. Guarantors agree to pay a reasonable attorneys' fee and all other costs and expenses which may be incurred by Bank in the enforcement of this guaranty. Any married woman who signs this guaranty hereby expressly agrees that recourse may be had against her separate property for all her obligations under this guaranty. In all cases where there is but a single Borrower or a single Guarantor, then all words used herein in the plural shall be deemed to have been used in the singular where the context and construction' so require; and when there is more than one Borrower named herein, or when this guaranty is executed by more than one Guarantor, the word "Borrowers" and the word "Guarantors" respectively shall mean all and any one or more of them. IN WITNESS WHEREOF the undersigned Guarantors have executed this guaranty this ........... day of .................. 19 ......... City of Saratoga ................................................................. ......................... . . .... BY: FORM NO 71 4 4 -721 ./co ............................... 1 ti CORPORATE RESOLUTION AUTHORIZING GUARANTEE RESOLVED, that the President or and the Secretary or of this corporation be and they are hereby authorized and empowered, for and on behalf and in the name of this corporation to guarantee, from time to time and on such terms and conditions as Pacific Valley Bank (hereinafter called the "Bank ") may require, payment of any and all of the indebtedness (including any and all advances, debts, obligations and liabilities, present or future) of J Wayne - Dernetz and Barbara P Dernetz to the Bank, provided that the liability of this corporation upon such indebtedness shall not exceed at any one time the sum of One Hundred Ten Thousand and no /100 ($ 110, 0.00 ) for principal, together with all interest upon the indebtedness or upon such part thereof as shall not exceed the foregoing limitation. RESOLVED, FURTHER, that said officers be and they are hereby authorized and empowered, for and on behalf and in the name of this corporation (1) to execute and deliver such form of guarantee or guaran- tees as the Bank may require; (2) as security therefor to convey, grant, assign, transfer, pledge, mortgage or hypothecate and deliver by such instruments in writing or otherwise as may be demanded by Bank, any: of the property of this corporation as may be required by the Bank; (3) from time to time to substi- tute for said property or any part thereof, other property to be held on like terms; (4) to renew said guar- antee or guarantees in whole or in part, and to execute other or further guarantees and security instru- ments from time to time; and (5) to perform all acts and execute and deliver all instruments which the Bank may deem necessary to carry out the purpose of this resolution; and RESOLVED, FURTHER, that this resolution will continue' in full force and effect until the Bank shall receive official notice in writing from this corporation of the revocation thereof by a resolution duly adopted by the Board of Directors of this corporation and that the certification of the Secretary of this cor- poration as to the signatures of the above designated officers shall be binding on this corporation. of City of Saratoga Secretary , a corporation duly organized and existing under law of State of Cal i fnrni A , do hereby certify that the foregoing is a full, true and correct copy of a resolution of the Board of Directors of said corporation, duly and regularly passed and adopted at a meeting of the Board of Directors of said corporation which was duly and regularly called and held on the day of , 19_, at which meeting a quorum of the Board of Directors of said cor- poration was at all times present and acting. I further certify that said resolution is still in full force and effect and has not been amended or revoked, and that the specimen signatures appearing below are the signatures of the officers authorized to sign for this corporation by virtue of said resolution. IN WITNESS WHEREOF, I have hereunto set my hand as such Secretary, and affixed the corporate seal of said corporation this day of , 19 SEAL (If none, so state) AUTHORIZED SIGNATURES: L 11 (11 -75) JCO ature) (Secretary) CONTINUING GUARANTY" (RELATING TO PAST AND FUTURE INDEBTEDNESS) For valuable consideration, the undersigned (hereinafter called Guarantors) jointly and severally unconditionally guarantee and promise to pay ------------------- ----- P ACJF1C..V tVJLE.y -BANK --------------------------- (hereinafter called Bank), or order on demanJ in lawful money of the United States, any and all indebtedness of ------- J_Nayne ... Dernetz ---- and ----- Barbara P. Dernetz -------------------------------------------------------------------- (hereinafter called Borrowers) to Bank. The word "Indebted'ji-cs-s"-i-s- used -'herein 'in It- s most comprehensive sense and includes any and all advances, debts, obligations and liabilities of Borrowers or any one or more of them, heretofore, now, or hereafter made, incurred or created, whether voluntary or involuntary and however arising, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, and whether Borrowers may be liable individually or jointly with others, or whether recovery upon such indebtedness may be or hereafter become barred by any statute of limitations, or whether Such indebtedness may be or hereafter become otherwi6nunenfo 64�1 The liability of Guarantors shall not exceed at any one time.-the um of ...... . ..... ....one UK 6-Ten Thousand Dollars and no/100 110,000.016 ................................................ .............. ... ................................................................... Dollars (s.. ) for principal, together with all interest upon the in- debtedness or upon such part thereof as shall not exceed th"e ... foregoing _g ---- limitation. Notwithstanding the foregoing, Bank may permit the Indebtedness of Borrowers to exceed Guarantors' liability. This is a continuing guaranty I relating to any indebtedness, including that arising under successive transactions which shall either continue the indebtedness or from time to time renew it after it has been satisfied. This guaranty shall not apply to any indebtedness created after actual receipt by Bank of written no- tice of its revocation as to future transactions. Any payment by Guarantors shall not reduce their maximum obligation here- under, unless written notice to that effect be actually received by Bank at or prior to the time of such payment. The obligations hereunder are joint and several, and independent of the obligations of Borrowers, and a separate action or actions may be brought and prosecuted against Guarantors whether action brought against Borrowers or whether Borrowers be joined in any such action or actions; and Guarantors waive the benefit of any statute of limitations affecting their liability here- under or the enforcement thereof to the extent permitted by law. Any part payment by Borrowers or other circumstance which operates to toll any statute of limitations as to Borrowers shall operate to toll the statute of limitations as to Guarantors. Guarantors authorize Bank, without notice or demand and without affecting their liability hereunder, from time to time to (a) renew, compromise, extend, accelerate or otherwise change the time for payment of, or otherwise change the terms of the indebtedness or any part thereof, Including increase or decrease of the rate of interest thereon; (b) take and hold security for the nayment of this guaranty or the Indebtedness guaranteed, and exchange, enforce, waive and release any such security; (c) . apply , such security and direct the order or manner of sale thereof as Bank in its discretion may determine; and (d) release or substitute any one or more of the endorsers or guarantors. Bank may without notice assign this guaranty in whole or in part. Guarantors waive any right to require Bank to (a) proceed against Borrowers; (b) proceed against or exhaust any security ' held from Borrowers; or (c) pursue any other remedy in Bank's power whatsoever. Bank may, at its election, exercise any right or remedy it may have against Borrowers or any security held by Bank, Including without limitation the right to foreclose upon any such security by judicial or nonjudicial sale, without affecting or impairing in any way the liability of Guarantors hereunder except to the extent the Indebtedness has been paid, and Guarantors waive any defense arising out of the absence, impairment or loss of any right of reimbursement or subrogation or other right or remedy of Guarantors against Borrowers or any such security, whether resulting from such election by Bank, or otherwise. Guarantors waive any defense arising by reason of ' any disability or other defense of Borrowers or by reason of the otherwise. Guarantors any cause whatsoever of the liability of Borrowers. Until all Indebtedness of Borrowers to Bank shall have been paid in full, even though such indebtedness is in excess of Guarantors' liability hereunder, Guarantors shall have no right of subrogation, and waive any right to enforce any remedy which Bank now has or may hereafter have against Borrowers, and waive any benefit of, and any right to participate in any se- curity now or hereafter held by Bank. Guarantors waive all presentments, demands for performance, notices of non-performance, protests, notices of protest, notices of dishonor, and notices of acceptance of this guaranty and of the existence, creation, or in- curring of new or additional Indebtedness. Guarantors assume the responsibility for being' and keeping themselves informed of the financial condition of Borrowers and of all other circumstances bearing upon the risk of nonpayment of the indebtedness which diligent inquiry would reveal, and agree that absent a request for such information by Guarantors, Bank shall have no duty to advise Guarantors of information known to it regarding such condition or any such circumstance. l In addition to all liens upon, and rights of setoff against the moneys, securities or other property of Guarantors given to Bank by law, Bank shall have a lien upon and a right of set off against all moneys, securities and other property of Guarantors now or hereafter in the possession of or on deposit with Bank, whether held in a general or special account or deposit, or for safe- keeping or otherwise; and every such lien and right of setoff may be exercised without demand upon or notice to Guarantors. No 11 1 en or right of setoff shall be deemed to have been waived by any act or conduct on the part of Bank, or by any neglect to exercise such right of setoff or to enforce such lien, or by any delay in so doing; and every right of setoff and lien shall continue in full force and effect until such right of setoff or lien is specifically waived or released by an instrument in writing executed by Bank. Any Indebtedness of Borrowers now or hereafter held by Guarantors is hereby subordinated to the indebtedness of Borrow- ers to Bank; and such Indebtedness of Borrowers to Guarantors if Bank so request shall be collected, enforced and received by Guarantors as trustees for Bank and be paid over to Bank on account of the indebtedness of Borrowers to Bank but without reducing or affecting in any manner the liability of Guarantors under the other provisions of this guaranty. Where any one or more of Borrowers are corporations or partnerships it is not necessary for Bank to inquire into the powers of Borrowers or the officers, directors, partners or agents acting or purporting to act on their behalf, and any Indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed hereunder. Guarantors agree to pay a reasonable attorneys' fee and all other costs and expenses which may be incurred by Bank in the enforcement of this guaranty. I Any married woman who signs this guaranty hereby expressly agrees that recourse may be had against her separate property for all her obligations under this guaranty. In all cases where there is but a single Borrower or a single Guarantor, then all words used herein in the plural shall be deemed to have been used in the singular where the context and construction so require; and when' is more than one Borrower named herein, or when this guaranty is executed by more than one Guarantor, the word "Borrowers" and the word "Guarantors" respectively shall mean all and any one or more of them. IN WITNESS WHEREOF the undersigned Guarantors have executed this guaranty this---- - - - - -- -day of . ...... .... .. . . ... 19--- ._ - - -- .... Qi.tY ... of --S.ar-at6qd ................ .................................. ............................................ ............................................ FORM NO. 71 (4-72) JCO BY.; .............. [BY: ..................................................................................... ...............