HomeMy WebLinkAbout2012/06/14 - Agenda Packet - Special"~~ city of ,~j
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AGENDA
CITY COUNCIL AND FIRE PROTECTION DISTRICT
SPECIAL MEETING
Thursday, June 14, 2012 ~ 6:00 p.m.
City Hall ~ Tri-Communities Room
10500 Civic Center Drive ~ Rancho Cucamonga, CA 91730
A. CALL TO ORDER:
A1. Pledge of Allegiance
A2. Roll Call: Mayor Michael
Mayor Pro Tem Spagnolo
Council Members Alexander, Buquet and Williams
B. COMMUNICATION FROM THE PUBLIC:
This is the time and place for the general public to address the Fire Protection District and City Council on any item listed
on the agenda. State law prohibits the Fire Board or City Council from addressing any issue not previously included on
the Agenda. The Fire Board or City Council may receive testimony and set the matter for a subsequent meeting.
Comments are to be limited to five minutes per individual or less, as deemed necessary by the Mayor,
depending upon the number of individuals desiring to speak. All communications are to be addressed directly
to the Mayor and not to the members of the audience. This is a professional business meeting and courtesy
and decorum are expected. Please refrain from any debate between audience and speaker, making loud
noises, or engaging in any activity which might be disruptive to the decorum of the meeting.
C. ITEMS OF DISCUSSION:
C1. DISCUSSION AND CONSIDERATION OF PROPOSED BUDGETS FOR FISCALYEAR
2012113
D. ADJOURNMENT
I, Debra L. McKay, Records ManagerlAssistantGty Clerk, of the City of Rancho Cucamonga, hereby certify that
a true, accurate copy of the foregoing agenda was posted on June 7, 2012, per Government Code 54954.2 at
10500 Civic Center Drive, Rancho Cucamonga, California.
Hand delivered to City Council - 6PM Tues June 12, 2012
STAFF REPORT
CITY OF RANCHO CUCAMONGA
RANCHO
Date: June 14, 2012 (;UCAMONGA
To: Honorable Mayor and Members of the City Council
From: John R. Gillison, City Manager
Subject: FY 2012-13 Budget -City Council Questions
BACKGROUND
On June 7, 2012, the City of Rancho Cucamonga held a Budget Workshop to review the FY
2012-13 Draft Budget. During the workshop, Councilmember Alexander indicated he had a
number of questions and concerns regarding the FY 21012-13 Draft Budget; he requested that
the City Council provide him an opportunity to meet with the City Manager and present his
questions and concerns before adopting a final budget. Accordingly, the City Council held over
the FY 2012-13 Draft Budget until a second workshop could be held on June 14, 2012.
ANALYSIS
After meeting with Councilmember Alexander to review his questions/concerns and comments
regarding the FY 2012-13 Draft Budget, a summary list (seen below) of the questions was
prepared. Following each question is staff's response including any requested information for
the City Council's consideration.
Police
1. With the increase in the County Admin Fee for the Sheriff' contract; the City should
consider reducing the number of deputies who are present at City Council meetings to
save money.
a. The uniformed personnel who are present are there to provide overall routine
security and focused response as needed and include a sergeant who can
answer any complaints about deputies, police responses, training, experience
and knowledge. The Police Chief is present as a department head, the same as
all other department heads are present at City Council meetings in the event any
questions or concerns arise regarding their department. Any plain clothes
deputies are there to handle problems or complaints that require long-term follow
up or additional work to respond. All staff for City Council Meetings are on
adjusted schedules and little or no overtime is used.
Fire
1. We should not be changing the title of the current Fire Investigator(s) to Captain
Specialist(s); this change is not warranted and will have long term PERS and salary
costs; it does not result in a change in current services, and is unwarranted.
a. Statistically the position has had a major impact at reducing drawdown of fire-
paramedic resources, Haz Mat responses, fire alarms, outside investigations,
and helicopter coordination/LZ. The positions allows for quick release and or
F1' 2012-13 BUDGIE I' -CITY COUNCIL QUESTIONS
JUNE 14, 20]2
PAGE 2
cancellation of fire medic resources. Further, the position is extremely effective
working with City departments, acting as after hour/weekend Building and Safety
rep, liaison with County Health and Haz Mat, Sheriff, Arson Bomb, incident
command aid and or safety officer (NFPA 1710 requirements). A critical
component of the District's partnership with the City in dealing with haz mat clean
up and disposal is cost-recovery. Recently the City saved over $10,000 on
several recent illegal dumps through follow up investigation and relationships
with outside agencies, all of which were accomplished by the subject positions.
b. The title investigator has a much broader connotation than it sounds; it
encompasses more than just fire /cause and origin, but deals with other illegal
activity, cost recovery, haz mat, outside investigations, illegal burning,
trespassing, and wildland /canyon patrols. The position is one of the most
scrutinized and visible jobs- it works directly with all crews, Battalion Chiefs and
special assignments from the Deputy Chief and Fire Chief. The current
incumbents are highly qualified for the position, even at the upgraded title. One
individual successfully passed a BC exam; another individual holds a Safety
Officer position on a national management team and has experience on large
fires, Katrina and the Space Shuttle disaster. Both positions are Haz Mat
Specialist and POST certified.
c. The recommendation to upgrade the current Fire Investigator(s) to Captain
Specialist(s) is innovative and objective driven, based on strategically reinforcing
the District's risk reduction and response platform in a fiscally conservative
method. This position's enhancement alleviates the immediate need for an 8`"
engine by freeing up current resources to respond to other calls and minimizing
drawdown of resources. The current expectations for this position require
decisions, autonomy and fire district representation/responsibility at an officer/
captain level which need to be comparatively compensated and our outside of
the job classification as originally written. Anew job description and re-
classification will accurately capture the current responsibilities and duties of the
position as supervised by the Duty Battalion Chief.
2. How much is spent on Uniform Badges for Fire (FD 32, Line Item 5200)?
a. In the current fiscal year (2011/12) expenditures for badges were $2,466.62. The
increase this year is due to a policy change that now requires hat badges be
worn with Class A uniforms. Additional hat badges were required to be
purchased for those who did not have one. In addition, funding is maintained to
provide for replacement badges and new badges for
hires/promotions/retirements during each fiscal year.
Library
1. What is the amount of savings from reducing budgets for books and special event
supplies for Biane and Archibald Libraries?
a. Reducing the book budget results in $20,000 savings and scaling back or
eliminating certain special programs will result in $7,500 savings in program
materials, contract services and supplies. The overall impact of these changes is
that fewer new materials will be purchased at each Library, and craft supplies
FY 2012-13 BUDGIs I'-CITY COUNCIL QUESTIONS PAGii 3
JuNi14, 2012
and materials, and contract entertainers will be cut back or eliminated at many
Library programs.
2. What is the amount of savings from reducing the child and adult literacy program at the
Library?
a. The Children's (Back 2 Basics) literacy program will only be offered two times a
week at each Library (rather than four times a week) resulting in a savings of
$20,000 in part-time salaries. The overall impact is that fewer children can be
enrolled in this popular program.
b. The Adult literacy will be scaled back, focusing only on the core service of
providing one-on-one Literacy tutoring. With the retirement of the City's Literacy
Coordinator, the position will be frozen for a savings of $45,000. Cuts to
Literacy program are necessitated because of the elimination of all funding from
California State Library, which previously provided approximately 30% of the
funding for this program. The overall impact is that literacy programs such as
computer literacy, the Adult Learner Leadership Institute and involvement in the
Southern California Library Literacy Network and Inland Library System Literacy
Coalition will be curtailed.
3. What is the amount of savings from reducing the scope of the virtual library?
a. Eliminating certain electronic databases results in a savings of $13,900. This
cut is necessitated by elimination of the RDA which previously provided funding
for electronic databases for the Virtual Library. The Virtual Library is now 100%
funded by the Library's regular budget. The overall impact is that fewer
electronic databases will be offered to the public via the Virtual Library. The
databases that were eliminated were based on use statistics and were the least
popular overall.
Community Services
1. What is the amount of savings from reducing the special event programming for teens,
seniors and adults at the Family Resource Center, Central Park, Senior Center and
Lions West?
a. The overall total savings is $8,700 for FY 2012-13. In some cases the savings
will come from part-time staff and City volunteers taking over certain functions,
on a reduced scope, that were previously done by outside volunteer
organizations but were subsequently dropped due to resource issues by those
organizations. In other instances the City is eliminating certain events or
programming which is duplicated by other entities such as the school districts,
non-profits or the private sector, or which were supposed to be funded by non-
profit partners but never happened. Some items are merely being deferred so
they will not happen on a yearly basis. Lastly, some of the events that were
eliminated are as a result of several years of declining full and part-time staffing
in which personnel resources have reached the point where the current workload
cannot be continued.
FY 2012-13 BUDGET -CITY COUNCIL QUESTIONS
1uNE 14, 2012
PAGE 4
2. What is the amount of savings from reducing the Founder's Day Parade special event
celebration?
a. This will save a total of $7,890 through reduced contract services, operations
and maintenance costs and part-time staffing. This reduction preserves all
funding for the Parade, but cuts the celebration element and parade awards that
were held in the courtyard of the Cultural Center after the event. The Parade
itself is a community staple and rather than cut and trim that event to the point it
would lessen its quality (no floats or balloons, etc.), it was determined that the
celebration, which was added in later years, be eliminated.
3. Why are we doing the CSD Needs Assessment now, how much does it cost, and why
can we not wait until things improve?
a. The last needs assessment was done in 2000/2001. The information in this study
is of course outdated and cannot be used to create a comprehensive plan for
programs, services and parks in the future. With shrinking resources, increased
emphasis on partnerships, changing community demographics, and less and
less open space available, the City needs to be sure that future resources are
allocated to meet the greatest need. When updating the recreation element of the
general plan it was more apparent than ever that updated information was
necessary. This was adopted as Council goal for FY 2012-13. The cost is
estimated at $60,000 which includes hiring a company with expertise in
community surveys and statistical analysis. This is a large undertaking which
requires up to 12 months to complete. Since the last assessment many parks,
Central Park and the Cultural Center have been constructed. However, demands
remain high for quality programs and services. The assessment does not just
address physical parks, centers and amenities, but programs and services. In
fact, the ideal time for planning is right now, so that when things do improve the
City already has updated information and can appropriately restructure services
and programs, as well as apply for grants and funding that reflect community
needs.
Public Works
1. What is the amount of savings from reducing street sweeping to once per month on
arterial and commercial/industrial streets?
a. This option is the result of an early retirement of one Equipment Operator and will
result in overall savings of $104,430. The current program uses four operators,
however, with the retirement, program staffing would be reduced to three
operators. During the heavy season, mid October through January, a fourth
operator would be pulled from another crew to augment the staffing levels so that
sweeping can be done two times per month to keep up with the increased
sweeping needs associated with leaf litter.
2. What is the amount of savings from eliminating graffiti abatement on Sunday?
a. There is nominal savings associated with this change based primarily on fuel and
equipment maintenance savings. The largest benefit to this change is to increase
staff on Wednesday and Thursday to help augment the changes resulting from
the reduction in force in Public Works. This will allow the supervisors to better
manage their workload during the week.
FY 2012-13 BUDGET -CITY COUNCIL QUESTIONS
TUNE 14, 2012
PAGE 5
City Management
1. What is the amount of savings from discontinuing crossing guards at 6 unwarranted
intersections?
a. The elimination of unwarranted crossing guards at six (6) intersections out of
fifty-three (53) total will save $45,800. Staff will continue to review crossing
guards on a regular basis with the goal of eliminating unwarranted crossing
guards and achieving a more equitable cost share for this service between the
City and the various school districts, similar to what exists in other surrounding
jurisdictions.
2. What is the amount of savings from reducing funding for the RC Chamber of
Commerce?
a. The reduction in funding for the Rancho Cucamonga Chamber of Commerce
contract will save $21,000. Due to the elimination of RDA and the refusal by the
State Department of Finance to approve further expenditures in this regard,
reduced funding picked up by the General Fund is the only viable alternative.
Depending on available funding the contract may be reduced further in the future.
3. What is the amount of savings from reducing funding for Small Business Development?
a. The reduction in funding for Small Business Development will save $5,000. Due
to the elimination of RDA and the refusal by the State Department of Finance to
approve further expenditures in this regard, reduced funding picked up by the
General Fund is the only viable alternative.
4. What is the amount of savings from reducing funding for RCTV3 Programming?
a. The reduction in funding for RCTV3 programming will save $20,000. Due to the
elimination of RDA and the refusal by the State Department of Finance to
approve further expenditures in this regard, reduced funding picked up by the
General Fund is the only viable alternative.
5. Can the City Attorney sue the State of California over the Vehicle License Fee
takeaway?
a. The League of California Cities has already filed a lawsuit in this regard and a
hearing on the merits will be held in Superior Court in Sacramento in the very
near future.
6. How much do we budget for goal setting and why do we use a contractor?
a. We budget $5,000 for a professional facilitator. The use of a professional
facilitator is a recommended best practice for goal setting of elected boards and
commissions. It ensures that a neutral third party is available to collect
information from everyone, manage the meeting, guide discussion to ensure
equal participation, and provide objective meeting facilitation which allows City
Staff and the City Council to participate equally in the meeting. For staff to try
and fill this role, when the meeting is about developing goals for staff to work on
for the next year, would be counterproductive.
7. Please show how the City Management division has really attrited staff, it only appears
that they have grown and there has been no reduction.
a. The original staff level included the City Manager, Assistant City Manager and
two (2) Deputy City Managers, as well as an Assistant to the City Manager, one
Management Analyst II, one Management Analyst III, two (2) interns, and five (5)
clerical, for a total of 14 individuals, all funded in the General Fund.
FI' 2012-13 BUDCI 1'- CI"17 COUNCIL QUESTIONS
JUNE 14, 2012
PAGE 6
b. At the present time the staffing includes the City Manager, Assistant City
Manager, one Deputy City Manager, one Principal Management Analyst, one
Management Analyst II, and three (3) clerical, for a total of 8 individuals funded in
the General Fund. An additional Deputy City Manager (Economic and
Community Development) is proposed, however, it is being funded by eliminating
the Planning Director position. The current Healthy RC staff (1 contract and 1 full
time) are funded through grants, not the General Fund, and the one additional
Management Analyst I position that was added for FY 12-13 was done to partially
mitigate the reduction in force from the loss of Redevelopment. Even if all
positions are counted, this is only 12 individuals (to a previous total of 14) with far
less of a General Fund impact than existed previously.
City Council
1. Are there any City Council goals that can be placed on hold until things get better to
save money during the current tough times?
a: Staff identified the following goals that could be deferred, primarily to save staff
time as there will be little or no actual operational savings. All other goals are
already complete, or substantially in progress, such that deferral would strand the
resources already expended.
i. Complete construction drawings for a training facility at Jersey Station
(174).
ii. Present to City Council alive-year master drainage capital improvement
priority list.
iii. Advance Foothill Boulevard Street Widening and Bridge Improvement
Project (Grove Avenue to Vineyard Avenue) for bidding and complete
construction. (already on hold due to loss of funding)
iv. Provide (4) Public Safety education meetings to RC mobile home park
residents through amulti-departmental partnership between Building and
Safety, Police, and Fire.
Administrative Services
1. How much do we budget for Employee Assistance Programs?
a. EAP is budgeted at $25,600 for the City. On the Fire District side, the District
spends approximately $10,000 for EAP with a different provider through its
contract with PASIS. The City and Fire District have provided EAP services for
many years. This is a benefit offered by many if not most employers. Rancho
Cucamonga has a very typical program providing a specified number of
psychological counseling visits to assist employees and their family members it
dealing with personal and professional issues. Among the situations
encountered are marital issues, drug and alcohol problems, financial problems,
anger management, child rearing, stresses at work, etc. These programs are
designed to assist with short term crisis issues. If there are ongoing problems,
counselors transition employees to a provider within their medical insurance
plan. These programs have proven helpful to employees in dealing with
problems of everyday life. Often these problems manifest themselves in the
workplace through poor performance, attendance problems and bad behavior.
Experience has shown that when employees have an option for dealing with
FY 2012-13 BUDGET-CITY COUNCIL QUESTIONS PAGI: 7
JUNE ]4, 20]2
these issues they are less likely to have problems at work. Current usage is
running at an average of 13 sessions per month under each plan. The City is
presently evaluating alternative service providers which may further reduce our
costs in this regard.
2. Couldn't we save money by discontinuing the City's Mobile Application RC2G0 since all
the services are duplicated by the private sector and the City's application has
inaccurate data?
a. The cost of the RC2C0 application is a one-time expense. There are no charges
for maintaining the app on the Apple website. Discontinuing the application will
not save money. The application uses data that is not available to the private
sector -specifically, our business license data, land use data, and other internal
data sources - to provide different services than those available through free
online search engines. There is no private sector application that will allow
residents to conveniently submit service requests via mobile app. This is an
important customer service tool for how a certain demographic of residents
expects to communicate with the City in this new era of the smart phone. While
the traditional print publications (like the Grapevine) reach a certain segment of
the population, the younger generations expect to communicate information via
mobile apps. RC2G0 provides important functionality for emergency information
that has not previously existed. The app allows the City to communicate in real
time to a large segment of the population. Most recently at the request of the
school districts the City has added new functionality to allow individuals to
determine what school district they are in and which school their child would
attend. This is another example of functionality not available on commercial
applications.
3. Why does the County charge the City money to put information to the tax roll? This is
wasteful, bureaucratic nonsense if we are supposed to be partners.
a. Under state law, the Counties are empowered to maintain the tax roll and collect
the various property taxes and assessments that are enacted by the state,
county, cities, school districts, and special districts. The counties then remit these
to those agencies based on the applicable laws. Most of the funds that counties
collect are collected on behalf of these other entities. All counties charge an
administrative fee for these services. Administration of the tax roll is a significant
task requiring manpower and technology to implement and maintain and the fees
charged help offset that cost.
Review the FY 2012-13 Draft Budget as presented and provide staff with direction regarding
any desired changes. Staff recommends the City Council review and approve the FY 2012-13
Final Budget for formal adoption on June 21, 2012, as originally submitted.
MEMORANDUM
CITY MANAGERS OFFICE RANCHO
G'UCAMONGA
Date: June 12, 2012
To: Mayor and Members of the City Council
By: John R. Gillison, City Manager
Subject: PROPOSED FISCAL YEAR (FY) 2012-13 BUDGET
Last year we said, 'Things can't go on like this', and they
didn't, they got worse. -w~u Rogers
The nationwide economic downturn that essentially began in FY 2009-10 has caused
fiscal challenges for all levels of government. The impacts of the economic downturn
are still with us and the proposed budget for the City of Rancho Cucamonga for FY
2012-13 reflects the ongoing, cumulative impacts of the downturn. In addition to the
economic impacts, actions that are taking place at the Federal and State levels are
exacerbating the negative fiscal impacts on local government. It is expected that, as a
result, the fiscal challenges and service delivery impacts of the last several years will
continue at least through the end of FY 2012-13.
Traditionally, economists use what are called leading and lagging economic indicators
to track what the economy is doing, or is going to do in the near future. A leading
economic indicator is a measurable economic factor that changes before the economy
starts to follow a particular pattern or trend. Leading indicators are used to predict
changes in the economy. Retail sales, building permits and the housing market are
considered key leading economic indicators. During FY 2009-10, retail sales began to
decline and Christmas of 2009 was weaker than expected. By the end of the fiscal
year, it was clear that building permit activity was far weaker than forecast and the
housing market [bubble] was beginning to burst as prices peaked and demand dropped.
Unfortunately, local government revenues are a mix of leading indicators (sales tax) and
lagging indicators. A lagging indicator is a measurable economic factor that changes
after the economy has already begun to follow a particular pattern or trend. With
respect to local government, revenues such as property taxes, business license fees
and franchise fees are lagging indicators in that by the time actual measurable declines
set in, the economy is already substantially trending downward. Unemployment is a
typical lagging indicator because by the time it rises, layoffs have already begun as a
result of downward trending sales and manufacturing. Additionally, because of the rise
in entitlement programs, as well as the ever increasing dependence of local government
Page 1
on State (COPS monies, vehicle license fees) and Federal (CDBG, infrastructure
funding) monies, the "lagging" impacts of a deep recession are prolonged and continue
sometimes for several years after the economy finally stops actually receding and
begins to stabilize.
This is the period that we, all of us in local government, now find ourselves in. At the
Federal level, as talk of deficit reduction, tax burdens and stimulating business growth
reaches a fever pitch during this election season, the result at the local level is
dramatically decreased CDBG funding, increasing Medicare costs which affect health
care costs overall, and decreasing grants for Homeland Security and infrastructure
improvements. The inability to agree on modifications to the gas tax, combined with
improving fuel economy and higher gas prices, is also reducing this traditional revenue
source used for local road repairs and maintenance.
At the State level the situation is even grimmer. As of April 2012, unemployment in
California stood at 10.9%, some 2.8% higher than the national average and among the
highest in the United States other than the State of Nevada. On top of high
unemployment, the level of real estate foreclosures, defaults and bank owned
properties in Southern California is also the highest in the nation outside of Las Vegas.
With high unemployment and the loss of valuable assets such as real estate come
decreasing personal and corporate income taxes, which are the primary funding source
for the State of California. As has become a perennial event with both Republicans and
Democrats, much like the swallows coming home to San Juan Capistrano, the
Governor's May Revise Budget for FY 2012-13 is projecting amulti-billion dollar deficit
($15.7 billion), much worse of course than was originally forecasted earlier this year.
On top of all these anchors on the State economy, Governor Brown with the assistance
of the Legislature was finally successful in his quest to eliminate the single remaining
economic development tool still available to local government -Redevelopment. The
California Supreme Court upheld AB X1 26 in December of 2011, effectively eliminating
some 400+ redevelopment agencies statewide by February of 2012. This action
resulted in increasing layoffs in the public sector as city employees were laid off due to
the loss in funding. Ironically, the elimination of funding for infrastructure and economic
development also negatively impacted private sector businesses such as architects,
engineers, contractors and the real-estate market resulting in additional layoffs in those
sectors also. As a result, the $1 billion plus that the Governor had counted on to
balance the State budget has yet to materialize, and the fiscal chaos resulting from
unorganized, poorly thought out, and contradictory actions by Sacramento continues to
wreak more, not less, havoc at the local government level statewide.
All of which brings me full circle to the Will Rogers quote that started this message.
After multiple years of declining revenues, we said in FY 2011-12 that it looked like
things had to change soon, and they couldn't keep going like they were. Well, the good
news is our prediction was right. The bad news is, as the famous political humorist
once noted, "things got worse."
Page 2
No More Soft Landing
During the past four years, Rancho Cucamonga, like other jurisdictions, had to endure
multiple years of revenue declines, resulting in the reduction of annual budgets to adjust
to diminished fiscal resources. Rancho Cucamonga's budgetary strategy has been to
achieve a "soft landing" through gradual, strategic budget reductions combined with the
judicious use of reserve funds so that services, while under intense fiscal pressure,
would not suffer major dislocations but have some measure of stability. All this has
been achieved through austerity measures, cutbacks in materials and supplies, staff
reductions, salary reductions through furloughs, rebidding of contracts, organizational
restructuring, re-distribution of workload, aggressive grant writing, and strategic use of
reserves. While services were somewhat "frayed around the edges," the core
components of our major public services remained relatively intact.
Unfortunately, the unprecedented complete elimination of Redevelopment with no
opportunity for an orderly wind-down, "pulled the rug" out from underneath the City's
"soft landing" approach and resulted in a "hard hit" to the organization and its services.
With the stroke of a pen, the City of Rancho Cucamonga was faced with a $4.2 million
deficit in the General Fund, or a loss of nearly 6% of revenue that had to be addressed
in the FY 2012-13 budget. The City is now operating with essentially the same General
Fund revenue it did in FY 2006-07, some seven (7) years ago. In the meantime, the
City has faced rising costs just like any business or consumer, including gasoline,
electricity, insurance, legal and pension costs. Those costs continued to escalate for
FY 2012-13. Also in FY 2011-12, the City made a commitment to stop using reserves
and create a structurally balanced budget, which includes eliminating temporary savings
measures such as furloughs. As a result of the abovementioned short-term factors, the
City made extensive changes in its FY 2012-13 budget. Some of these changes,
including reductions in operating hours and program funding, are short term and may be
reversed when the current fiscal situation improves. Other changes, such as personnel
reductions and salary/benefit adjustments, are long-term and are intended to result in
permanent cost savings.
For FY 2012-13 the principal challenges facing the City are as follows:
1. Adjust to the permanent loss of Redevelopment funding and the programs,
projects, services and personnel that were supported with those funds.
2. Provide for the orderly wind-down of the business of the City's former
Redevelopment Agency (RDA), including the payment of necessary third party
enforceable obligations, termination of contracts, completion of projects already
in process, and the elimination, modification or assumption of programs and
services previously funded by Redevelopment.
3. Proactively adjust employee salaries and benefits to offset rising CaIPERS
pension costs. In the three year time frame from FY 2010-11 to FY 2013-14, the
City will likely see between a 3.1 % and 4.6% increase in its PERS rates for
miscellaneous employees. The higher rates have been forecasted by CaIPERS
Page 3
to continue for 15-20 years to pay off the investment losses that occurred during
the recent recession.
4. Offset rising utility and fuel costs with increased efficiencies, cost savings in other
areas, or new revenues as necessary.
5. Balance the City's budget without the use of reserves for FY 2012-13 and begin
the process of rebuilding reserves used to weather the recession of 2009-2012
and achieve a "soft landing".
6. Seek the restoration (through litigation) of the Vehicle License Fee revenues
($631,240 in FY 2011-12 and $638,280 estimated in FY 2012-13) that were
stripped by the Legislature and Governor to balance the State's FY 2011-12
budget in violation of Proposition 22 as well as the Property Tax Administration
Fee increase ($1,949,100 in accrued costs) from several years ago that is also
currently in litigation.
7. Protect the City's interests in maintaining local control over City revenues, land
use and other municipal activities.
The aforementioned challenges, specifically numbers 4 through 7, are principally similar
to the challenges faced by the City during the FY 2011-12 budget process. Item
number 3 is similar in concept to the prior fiscal year; however, due to a change by
CaIPERS taken during the year to reduce the expected rate of return (discount rate) on
its investments, this challenge has grown in scope. Finally, the first two items are new
challenges that did not exist in the prior year and, indeed, only came to fruition long
after the City had adopted its FY 2011-12 budget.
The challenge identified in number 1 above is partially offset by an administrative
allowance. Under the provisions of AB 26, the RDA Successor Agency (which is the
City of Rancho Cucamonga) is entitled to an administrative allowance for each six
month Recognized Obligation Payment Schedule CROPS) cycle to pay for costs
associated with the wind down of the Redevelopment Agency. The administrative
allowance is subject to the approval of the Oversight Board.
For the ROPS cycle from January to June 2012, the Successor Agency is allowed to
receive up to 5% of the value of the property tax allocated (money which had been tax
increment) to pay for enforceable obligations. Beginning July 1, 2012, and each year
thereafter until all enforceable obligations are paid, the Successor Agency is allowed to
receive up to 3% of the value of the property tax allocated. For FY 2012-13, the
General Fund has budgeted revenue of $1.3 million for this administrative allowance.
The administrative allowance will decrease over time as the enforceable obligations are
retired. AB 26 does provide for a minimum threshold of $250,000 for each six month
ROPS cycle, or a lesser amount if it is agreed to by the Successor Agency.
Page 4
FY 2012-13 Budget Changes
Normally at this point in the Budget Message we begin to describe the City's Operating
Budget, City Council goals and Department Budgets; however, FY 2012-13 is not a
normal fiscal year. Given the tremendous complexity of the budget for a City the size of
Rancho Cucamonga, and in the interest of promoting open and good government
practices, the following section is going to list in brief form the major changes made to
balance the FY 2012-13 budget. The list is not exhaustive, and further detail can be
found in the full City budget.
With the loss in annual Redevelopment tax increment revenue which funded personnel
and expenses not only for housing and economic development, but also capital
projects, infrastructure development, allocated insurance, utilities, computer hardware
and software costs, and other associated overhead support costs, the full parameters of
this major fiscal change are only now beginning to become clear. In terms of a staffing
perspective, the City had no choice but to reduce staffing levels to match revenues. In
local government, our people are the service(s) we deliver. It is people that answer
questions at the counter, repair the streets, clean the park restrooms, respond to code
enforcement complaints, maintain our infrastructure and do all the other myriad of tasks
that make up our core public services. Indeed, personnel costs are any local
government's single biggest expenditure and no major loss in revenue can be absorbed
without some personnel impacts. Therefore, on April 26, 2012, the City issued layoff
notices to 19 employees throughout the organization. In addition, the City
restructured/downgraded and/or reassigned another 10 positions, and eliminated 11
vacant positions. Some of the restructured, reassigned, and eliminated positions were
facilitated by the early retirement of 9 people, All levels of the organization, from
Executive Management to General Employees were affected and every department was
impacted. These changes are on top of the 76 FTE positions that were eliminated over
the last several years. As a direct result of these changes the City will save over $1.5
million in the General Fund for FY 2012-13.
The City Council also reached new labor agreements with all City labor groups that
result in a restructuring of or option to restructure medical benefits, require both existing
and new employees to share in the cost of their pensions, reduce pension benefits for
new hires and continue the holiday closure of most City services. In addition, the City
Council agreed to a voluntary 10% reduction in the Council compensation as well as the
elimination of PERS for future elected officials. Efforts are ongoing to reorganize and
restructure City departments to maximize service delivery while improving cost
efficiencies. Needless to say, every department and all our employees have contributed
greatly to making all of these changes possible and we are very grateful for their
continued cooperation, which will result in labor cost savings of $680,000 over the next
two fiscal years.
In addition to personnel changes, there were other key changes in services for FY
2012-13, including:
Page 5
Facility Operation Reductions
• Reduction in library hours on weekdays, with libraries closing one hour earlier
Monday -Thursday
• Reduction in Central Park Community Center hours on weekdays, opening one
later Monday -Friday, closing one hour earlier on Saturday
• Closure of Central Park, Lions East and West and Family Resource Center on
select holidays
• Reduction in Family Resource Center hours by opening two hours later Monday -
Friday
Reduction in operating days for the Household Hazardous Waste facility for drop-
offs to every other Saturday, instead of weekly
• Reduction in security guard services citywide
• Postponing indefinitely the opening of the PE Trail restroom on Foothill and
ultimately moving the restroom to Southwest Cucamonga Park when that facility
is built
Program Operation Reductions
• Reducing the budgets for books and special event supplies for Biane and
Archibald Libraries
• Reducing the children and adult literacy program in the Library
• Reducing the scope of the Virtual Library
• Reducing special event programming for teens, seniors, and adults at the Family
Resource Center, Central Park, Senior Center, and Lions West
• Reducing Founder's Day Parade special event celebration
• Reducing the dedicated community services staff for Northtown programs
• Reducing street sweeping to once per month, instead of twice, on arterial and
collector streets (no reduction in service on residential streets)
• Elimination of graffiti abatement on Sunday
• Discontinuing crossing guards at six unwarranted intersections
• Reduction in funding for the Rancho Cucamonga Chamber of Commerce
• Reduction in funding for Small Business Development
• Reduction in funding for RCTV 3 programming
• Capping the Mobile Home Rental Assistance Program
Program Elimination
• Elimination of nearly all economic development services formerly provided
through the RDA
• Elimination of all tourism and marketing services formerly provided through the
RDA
• Elimination of the First Time Homebuyer program
• Elimination of the Holiday Banner program
Additionally, with the loss of RDA, the State will also be taking substantial RDA cash
reserves that had been set aside for capital facilities repairs. All totaled, the City will
Page 6
lose access to $22 million in capital facility reserves for Central Park, the Family
Resource Center, Victoria Gardens Cultural Center, Biane Library, the Epicenter, the
Animal Center, the Public Safety/Civic Center, Archibald Library, Biane Library, the
Rancho Cucamonga Family Sports Center, the Metrolink station and the Pacific Electric
Trail. On top of the loss of these reserves, the City will lose $27 million from its
Economic Development Reserve for Phase II of Victoria Gardens and an additional $50
million that was set aside to repay the City's origination loan that first got the
Redevelopment Agency started over 30 years ago. All of these funds will be taken by
the State for use in balancing its ongoing, ever-increasing structural deficit. With the
loss of these reserves, the City now faces the arduous task of trying to not only reduce
expenditures to match revenues but also begin the decades long process of trying to set
aside funds to rebuild these reserves in order to maintain the respective facilities as
they age. This challenge is compounded by the fact that in the last four years the City
has used $3.7 million dollars from its Changes in Economic Circumstances Reserve to
ease the impacts of the fiscal downturn. Further, the City has not added to its computer
replacement reserve since FY 2007-08 and that reserve is now nearly depleted and will
not have sufficient funding to complete the next round of computer hardware and
software replacement without replenishment. Additionally, for the last three years the
City has been using a cumulative amount of $2,574,150 in interest from the reserves to
help balance its operating budget, a practice that needs to be eliminated going forward
to ensure fiscal sustainability for the reserves. The goal for FY 2012-13 will be to end
the year with savings that can go into reserves and from this point forward try to set
aside $500,000 to $1,000,000 into reserves each year.
Beyond the changes noted above, which primarily affect General Fund facilities,
programs and departments, the City will be continuing to stay the course with reductions
in landscaping and park maintenance, and landscaping attrition in LMDs 2 and 8 where
the voters indicated their preference in Proposition 218 elections for reduced service
levels rather than increased assessments. Also in FY 2012-13, staff will be bringing
before the City Council for public discussion and consideration of possible Proposition
218 elections, a review of operations in LMDs 1 and 2 and SLDs 1, 2, 3, 5, and 7. In
each case, the respective districts have not had an increase in the current per parcel
assessment rate since 1996 and due to 16 years of increasing utility costs, personnel
costs, and contract service costs, they have finally reached a point where there is a
structural fiscal deficit that must be addressed with either reduced services or increased
revenue.
The City will continue to work with and through our individual legislators, as well as the
League of California Cities, to obtain clean up legislation or legal action, if necessary,
that will provide for the orderly wind-down of the business of the City's former
Redevelopment Agency, including the payment of necessary third party enforceable
obligations, termination of contracts and completion of projects already in process. Key
items on the aforementioned list include completion of the City Public Works Crew
building already under construction, completion of the Hellman Storm Drain Phase II
south of the railroad tracks to Fourth Street, completion of the Base Line/I-15 freeway
interchange, and, if possible, completion of the Foothill Boulevard street widening
Page 7
improvements from Baker Avenue to the westerly city limits. With the adoption of this
budget and the changes summarized previously, the City will have taken action to
eliminate or reduce most of the programs and services previously funded by
Redevelopment. Those programs not othenrvise eliminated, such as the Armed
Services Banner Program, Wayfinding Signs and various internal operational costs, to
name just a few, are being assumed in the City's General Fund as a part of regular
operations. This also includes anon-enumerated list of personnel that were previously
funded by Redevelopment.
With respect to the loss of Vehicle License Fees, efforts are undervvay through legal
action filed by the League of California Cities regarding the Vehicle License Fee
takeaway to seek the return of the funding that previously was an integral part of
Rancho Cucamonga's, and most other local agencies, budgets. Those actions have
resulted in the filing of a Writ of Mandate in Sacramento County Superior Court. It is
expected that a decision will be reached sometime during FY 2012-13.
To offset the rising cost of utilities, the City has embarked upon an aggressive effort to
conserve water, electricity and gasoline to the maximum extent possible. New vehicles
are either fully electric, compressed natural gas, hybrid gasoline/electric, or as a last
resort on certain heavy duty vehicles, clean diesel. These efforts have substantially
improved fleet fuel economy. The City has over 50 clean fuel vehicles in its fleet and
their fuel economy (25.1 mpg) is more than double the vehicles they replaced (11.1
mpg). This saves the City thousands of gallons of fuel each year. In addition, after
testing two fully electric vehicles for a year now, a Nissan Leaf and a Mitsubishi i-MIEN,
the City will be replacing all sedans on a go fon!vard basis with electric vehicles. These
vehicles have more than sufficient range for one day of driving, use no gasoline, and
recharge at night when electricity costs are lower. An additional advantage is that the
City can take advantage of the use of MSRC/AQMD grant funds to help offset the costs
of these vehicles, and related infrastructure to support their use, which preserves the
City's general funds for other uses. Further, the City has embarked on aggressive
replacement of the HVAC control system at City Hall with more efficient systems that
include a centralized control station and digital controls on all HVAC distribution and
monitoring equipment.
The City has implemented a new Cost Allocation Plan (CAP) for FY 2012-13. In order
to ensure that the City of Rancho Cucamonga is utilizing comprehensive overhead rates
and accurately accounting for the true cost of providing various services within the City
operations, a process was initiated to solicit a qualified firm to prepare an overhead cost
allocation plan. The plan has two components: 1) a plan that is in compliance with
OMB Circular A-87 for Federal and State grant reimbursement purposes; and 2) a full
cost allocation plan to recapture both internal and external central service costs from
end user City departments and to provide overhead cost rates to be incorporated into
the City's fee structure. It has been several years since the City's last cost allocation
plan was prepared and the City's departmental structure and operations have grown
and changed significantly over the years further warranting the need for an updated
study. The updated study was completed during FY 2011-12.
Page 8
The cost allocations to end user City departments is reflected in the FY 2012-13 budget
as an Admin/General Overhead Charge in each of the benefitting department's budgets
with the allocated costs being shown as a Cost Allocation Plan Offset within each of the
City's central service departments in the City's General Fund.
Strategic Goals
In addition to the short term organizational factors noted above that influenced the
development of the Proposed FY 2012-13 Budget, there are a number of longer-term
strategic goals that the City operates under as it develops work programs, strategic
plans, and long term goals and objectives. These longer-term strategic goals are
evaluated and updated each year in January by the City Council at a special all-day
workshop. The goals are then formally adopted for that calendar year as City Council
Goals. Under each goal are a series of objectives, many of them multi-year objectives,
which specify how each goal will be realized. The full list of 2012 City Council Goals
and Objectives can be found at the end of this Budget message as Attachment A. The
main over-arching goals for 2012, however, which City staff used to guide the
development of the FY 2012-13 budget, are:
• PUBLIC SAFETY -Proactively develop public safety programs and facilities to
meet community needs.
• PARKS AND RECREATION DEVELOPMENT -Proceed with planning and
development of major parks and recreational projects.
• ENHANCING PREMIER COMMUNITY STATUS - As the community matures,
undertake programs and projects to enhance Rancho Cucamonga's position as
the premier community in our region.
• MID AND LONG RANGE PLANNING -Develop mid-range and long-term goals
and vision for the City.
• OTHER -Engage in the multi-year process of revising and/or implementing
major City documents and systems.
It is worthwhile to note also that as part of the last two City Council Goals (Mid and Long
Range Planning and Other), the City utilizes the Council's strategic goals in a variety of
other planning processes. Recently, the City finished a major update to the General
Plan and is currently in the process of completing a substantial update to the
Development Code. Both of these documents are critical long-term planning
documents that contain the goals and vision of the City in the planning context. On a
more internal organizational level, departments have recently undertaken the
development of a five year Strategic Services Plan that will help to evolve and create
the necessary organizational structure to deliver services to the public, both now and
into the future as service delivery needs change.
Page 9
In addition to the City Council Goals, the key guiding principles for staff in developing
and providing services, programs, goals, objectives and a budget document that
corresponds to all of those elements, are the Vision Statement, Mission Statement and
Values for all City employees. Collectively, the City employees are referred to as Team
RC which reflects the value and emphasis the City places on teamwork as the desired
mode for delivery of services. Team RC has adopted a Vision and Mission Statement,
as well as Values, all of which have been approved by the City Council. The Vision
Statement, Mission Statement and Values are:
Vision Statement
Team RC exceeds expectations of those we serve with pride in the delivery of quality
services and programs in an environment of employee excellence and innovation,
empowered by inspired leadership, opportunity and a collaborative spirit.
Mission Statement
Team RC delivers superior service to all who live, work and play in our community.
Values - S.P.I.R.I.T.
SERVICE: We are committed to providing a superior level of services and going above
and beyond individual duties to better serve both fellow team members and the
community.
PEOPLE: Our respect for each other is demonstrated by empowering and valuing one
another while also encouraging personal growth and enhanced health and wellbeing.
We embrace a healthy life/work balance and are continuously striving to ensure the
highest quality of life for our employees.
INDIVIDUAL EXCELLENCE: Individual excellence is achieved through recognizing
workforce strengths. It is fostered through individuals who possess a strong work ethic,
sense of pride and commitment, and who value honesty, integrity and personal growth.
RANCHO WAY: The Rancho Way is fostered through maintaining a high level of
professionalism, producing quality work products and striving to retain the public's trust
through fiscal discipline and accountability.
INNOVATION: Embrace and appreciate technology; use technology to bring innovation
and a creative spirit to our current work and to help anticipate the challenges of
tomorrow.
TEAMWORK: Teamwork is encouraged and reinforced through collaboration,
communication and leadership at all levels. Unwavering unity, common goals and a
positive attitude are embodied by all.
Page 10
Operating Budstets
The following sections describe the different operating budgets and the reduction in the
use of reserves over time. Departments and employees have contributed greatly to
make it all work.
The operating budgets in Rancho Cucamonga are comprised of the following:
• City General Fund
Fire District Operational Funds
• Library Operational Fund
In addition, the complete City budget includes the Special Funds, many of which are
restricted from use for general municipal operations.
Operating Budget Comparisons
Citv General Fund. The City General Fund budget, which supports the majority of City
services, is made up of a number of major revenue sources. General Fund revenue for
FY 2012-13 is projected to be $63,414,270, which is $311,240 or 0.49% higher than in
FY 2011-12. Key City General Fund revenues include:
• Sales Tax
• Vehicle License Fees (VLF and Property Tax In Lieu of VLF)
• Franchise Fees
• Property Tax
• Development Fees
• Business Licenses
• Transient Occupancy Tax (TOT)
The most significant revenue source in the City General Fund is sales tax. Sales tax,
which represents 37% of total General Fund revenues, has just begun to show signs of
some growth again, although very modest. The sales tax forecast (including Prop 172)
for FY 2012-13 is $1,777,490 or 7.9% higher than FY 2011-12.
Vehicle License Fees and Property Tax In Lieu of VLF have decreased $680,970 or
4.5% from FY 2011-12 due primarily to the State's takeaway of Vehicle License Fees.
Franchise fees have increased $40,050 or 0.7% from FY 2011-12. Property Tax
revenues have decreased slightly overall by $44,380 or 1.1% from FY 2011-12.
However, the FY 2012-13 budget includes additional post-RDA property tax revenues of
$772,190.
Development fees have decreased $312,800 (excludes special services fees) or 9.9%
from FY 2011-12. Business Licenses revenue has increased $46,300 or 2.1 % from FY
2011-12. The Transient Occupancy Tax (TOT) has increased $92,370 or 5.3% from FY
Page 11
2011-12. Increases in Business Licenses and TOT indicate a slight improvement in the
local economy.
Overall, the combination of some small revenue increases, paired with other decreases,
results in a slight upward trend (excluding the loss of RDA revenue); however, the
increases in revenue are largely offset by corresponding increases in fixed costs,
including fuel, water, utility costs and labor-related cost increases.
Changes in Operating Budget and Reserves -City General Fund
$75,000,000
$70,000,000
$65,000,000
$60,000,000
$55,000,000
$50,000,000
$45,000,000
ti°~~\o~ ti°~e\o~ ti°~~\o~ ti°~~`o~ ti°~~\~o ti°~~\~~'L°~~\~~ ti°~~~~
^ City General Fund
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
2007/08 2008109 2009110 2010N 1 2011112 2012113
^ Econ Circ Rsrv ^ Int fr Fund 025 ^ Ins Reimb fr Fund 025
Page 12
City General Fund Revenue
Fiscal Year 2012-13
^ Taxes
^ Licenses & Permits
^ Fines & Forfeits
^ Use of Money &
Prop.
^ Charges for Services
^ Intergov't
^ Other
Fire District and Library Funds. The principle revenue source for the Fire District and
Library budgets is property tax. Property tax revenues are more important to the Fire
District and the Library as their respective shares of each property tax dollar are greater
than what the City General Fund receives. This is because as apost-Proposition 13
City, Rancho Cucamonga is a low property tax city.
The Fire District General Fund Property Tax revenue has increased slightly by $30,260
or 0.2% from FY 2011-12, excluding the effect of the additional post-redevelopment
property tax which now comes through as regular property tax revenue instead of
protected pass-through revenue for capital and infrastructure replacement. Property
Tax revenue for the Fire District's two Community Facilities Districts (CFDs) remained
re-atively constant compared to FY 2011-12 with no increase in CPI required.
Additionally, with the maturation of the Fire District Inspection Program, there has been
a slight increase in inspection revenue as more business are being inspected on an
annual basis. The Fire District also has no unfunded post employment benefit liabilities.
Page 13
Changes in Operatinu Budget and Reserves -Fire District
$27,000,000
$26,500,000
$26,000,000
$25,500,000
$25,000,000
$24,500,000
o Fire District Budget
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$-
^ Use of Fire District Operating Reserves
The Library's Property Tax has declined $117,540 or 3.6% from FY 2011-12. However,
the FY 2012-13 budget includes additional post-RDA property tax revenues of $133,810
to help offset this general decline. Additionally, the Library is experiencing further
declines due to State takeaways.
Page 14
2008109 2009110 2010N 1 2011112 2012113
2007/08 2008/09 2009!10 2010111 2011/12 2012/13
Changes in Operating Budget -Library Fund
$a,soo,ooo
$4,400, 000
$4,200,000
$4,000,000
$3,800,000
$3,600,000
^ Library Budget
Operating Budgets Analysis
As noted above, the City is seeing the first sustained signs that the substantial declines
of the past few years have leveled off, including some areas of small revenue growth.
At the same time, however, there are certain unavoidable fixed operating cost increases
which are occurring. These include fuel, utilities (gas, water, electricity), contract
services, and labor-related costs such as healthcare. Staff is working to offset these
increases to the degree possible by improving water efficiency and drought tolerant
landscaping, switching to hybrid, electric and CNG vehicles where possible, and
implementing a second and lower cost pension tier for new employees as well as
reaching agreements with all labor groups to have existing employees contribute to their
PERS pension costs. Further, staff reductions are currently at the 107.5 FTE level.
After readjusting and aligning expenditures to minimize staffing costs, incorporating all
eligible one-time funding as well as [negotiated] labor cost savings [over $345,600
citywide), and identifying the known challenges still outstanding, the following are
recommendations for the FY 2012-13 Operating Budget:
City General Fund Budget Overall, the FY 2012-13 General Fund Budget is
$63,414,270 and does not require the use of primary General Fund reserves.
The operating budget represents a $311,240 or 0.49% increase from FY 2011-
12. In fact, were it not for an increase of $1.4 million in the Sheriffs contract,
which is attributable to increased public safety pension and labor costs and a
66% increase in the County's Administration Fee, the City's overall General Fund
Budget would actually have been less than FY 2010-11. The recommended
expenditure levels still provides for a continuation of essential public services,
including critical public safety services as outlined in the following pages.
Page 15
2008/09 2009!10 2010!11 2011112 2012!13
• Fire District Budget The recommended FY 2012-13 operating budget for the
Fire Department is $26,472,670. This is a $664,870 or 2.5% increase over FY
2011-12. The budget is balanced without the use of reserves. The budget
incorporates fixed operating cost increases and redistributes operating expenses
in various areas. The budget preserves sworn first responder positions including
accommodating the staffing for a full year for the recently opened Hellman Fire
Station through a reallocation of existing personnel. Further, the Fire District will
continue its innovative use of the on-shift Fire Inspector by adjusting that position
to aCaptain-Specialist. This 24/7 single-staffed resource will be able to do
greater patrol and enforcement functions in support of a variety of City
departments and areas of special concern thereby freeing engine and truck
companies to be available for more serious incidents, and enhancing
collaboration with City Departments. Similarly, the elimination of two part-time
positions in order to help fund the creation of a full-time Fire Prevention Specialist
will enable the Fire Prevention Bureau to expand its ability to handle technical fire
inspections and continue to explore ways to reduce the risk for fires in
commercial/industrial and multi-family occupancies and achieve state-mandated
inspection standards.
• Library Budget The FY 2012-13 Library budget is $3,924,980 which represents
a reduction of $49,230 or 1.2% from 2011-12. Like the Fire District, Library
revenues are primarily property tax related. However, the Library has absorbed
anticipated losses of State funding in the amount of $180,000 from the CLSA
Direct Loan and Public Library Foundation programs. Keeping a number of
positions vacant and implementing successful grant programs have helped
shore-up services. The Library has also reduced its book replacement budget
but, otherwise, has been able to keep its hours fully intact at this time.
City Operating Budgets
City General Fund, Fire District Funds and Library Fund
Animal Care Governance Building & Safety
Fire & Services 194% 2.83%Community
2 87% Admin. Services
28.22°-~ ] 0 90% Development
0.18%
Community
Services
4.47%
Engineering
Services
1.96%
Public Works
Ponce Planning Services
30.84% Library 1.94% 9.62%
4.18%
Page 16
Special Funds Summary
• Special Districts. The City's special districts include various CFD or Mello-Roos
districts, 11 different landscape maintenance districts (LMDs) and 8 different lighting
districts. Revenues in the City's various special districts continue to fluctuate but
overall appear to be flat-lining and in some cases showing small signs of
improvement as foreclosed properties are re-sold and their delinquent assessments
brought current. Unfortunately, and as reported to the Council earlier this year, the
lighting and landscape districts, most of which were created prior to Proposition 218
in 1996 and thus have no index to adjust for rising costs, are showing significant
signs of stress as a result of recent water rate increases and the impact of overall
rising costs. With the increases in water rates and other costs, residents in the
LMDs will see a direct impact as this change will hasten the need for Proposition 218
elections in those districts without inflation indexes.
During the 2010-11 fiscal year, staff began the process of bringing Landscape
Maintenance District 2, one of the larger landscape maintenance districts in the City,
to the voters for the potential Proposition 218 assessment increase. This was voted
down by the residents. As a result, City Council has asked staff to look at potentially
decommissioning some areas within the boundary of LMD 2 as a cost saving
measure to effectively lower the maintenance costs. Staff will be presenting this at a
special City Council workshop on July 12, 2012. Staff is also exploring the feasibility
of dividing LMD 1 into smaller, more fiscally manageable districts and will be
conducting study sessions with the City Council. Other districts will follow in future
years and those districts whose voters choose to maintain their assessments at their
[current] 1996 levels will likely require enhanced fiscal austerity measures including
different landscape maintenance levels and potentially even reducing some
landscaping as recently occurred in LMD 8.
All actions are intended to provide the best results possible while ensuring each
LMD maintains self-sufficiency. The costs for maintaining the Street Lighting
Districts (SLD) are also being reviewed to ensure that each district can remain self
sufficient; however, it is expected that in the very near future staff will also need to
take some of these districts for a Proposition 218 assessment increase.
• Capital Improvement Program (CIP). The CIP contains priorities for improvements
to the City's infrastructure over a 5 to 10 year period of time. It is annually reviewed
and updated and its implementation is dependent upon the availability of capital and
special funds. Since these special funds are legally restricted, they must remain
separate from and cannot be utilized for general operating costs. While these
special funds can be eroded by economic conditions, the fiscal impacts are different
from those in the operating funds. Capital projects often span many years, as they
move from design and environmental review to plan check and ultimately
construction. Some of the capital improvements that are planned to begin or
continue in the upcoming fiscal year include: completion of the Hellman Avenue
storm drain to the Cucamonga Creek Channel; completion of the Household
Page 17
Hazardous Waste facility; undergrounding of utilities on Arrow Route and Base Line
Road; and several pedestrian connections which will be funded by the Safe Routes
to School grant program.
Department Bud4ets
Police Department
In FY 2011-12, because of large operational contract labor cost increases, special
programs and support operations were reduced to maintain an emphasis on patrol
services and keep the contract cost-neutral except for non-personnel increases that
were unavoidable. Many special programs were reduced or eliminated. The Department
adapted by implementing special hours of work, modified beat patterns and creative
shift adjustments whenever possible. COPS grant funding was utilized to support
special projects requiring overtime, including Parolee Compliance, Sex Registrant
Compliance, Bike Patrol (P.E. Trail and shopping centers), Special Investigations,
Tactical Response and Holiday Shopping Patrol Enhancement. The Department also
kept overtime costs to a minimum regardless of personnel injuries and mandatory court
overtime to stay within budget. Overall, the Police Department managed the contract
within budget despite all the aforementioned challenges and still managed to maintain
or lower the City's crime rate in key areas.
For FY 2012-13, the San Bernardino County CEO has unexpectedly and without
advance discussion to the contract cities implemented a 66% increase in the
Countywide Cost Allocation Plan administrative expense, increasing the current rate of
3% to a new rate of 5%, which will result in an unanticipated increase in administrative
costs to the contract in the amount of $483,080. At the time of printing this increase
was still being contested, however, if implemented this additional administrative
expense will prevent the City from increasing sworn personnel as originally planned.
Additionally, the impact of rising fuel costs will likely also prove to be significant for FY
2012-13. Although there were some decreases in personnel liability and vehicle
equipment costs, these savings will be more than offset by increases in the
administration charge and fuel costs.
The City's plan to implement a dedicated Probation Compliance Team to address the
impacts resulting from the Governor's implementation of AB 109 realignment, and the
early release to county probation of criminals in State prison to reduce the State's
overcrowding prison issues, will have to be modified. Instead of adding 2 to 4 new
additional personnel, the City will likely re-task existing deputies or other specialized
officers to take on these new duties. The department is also currently maintaining 10
vacant sworn positions. The Department will also continue to utilize grant monies to
supplement equipment needs and continue to move forward regardless of operating
cost challenges. Projects involving video networks and plate readers will allow the
Department to grow in efficiency, despite a lack of personhel increases by acting as
Page 18
force multipliers. Further, the Department will redouble efforts to remain creative in
communications outreach within the constraints of a challenging budget.
Fire District
The Fire District enters FY 2012-13 with a balanced budget that does not rely upon
reserves. In addition, the Fire District will be able to fund its operations without an
increase in Community Facilities District assessments (CFD). The budget for FY 2012-
13 shows a significant increase in revenues as well as expenditures largely as a result
of the elimination of Redevelopment; the monies that were previously protected under a
pass-through agreement with the Rancho Cucamonga Redevelopment Agency will now
come directly to the Fire District as part of their regular property tax revenue. The spirit
and intent of the pass thru, however, will remain and the Fire District will set these
additional funds aside, largely into reserves to fund future equipment replacement and,
capital repairs. A perfect example of the importance of these reserves is the purchase
of $1.9 million in new engines/ladder trucks in the FY 2012-13 budget detailed further
below. Proper funding of the reserves will allow the Fire District to continue providing
premier emergency response and risk reduction services to the community. The Fire
District's "pay as you go" approach to funding services will keep the organization
positioned to implement strategic improvements to its service plafforrn as identified
through continuous analysis and review of its effectiveness and efficiency.
Other highlights for FY 2012-13 include the opening of the Hellman Fire Station in
January 2012 which has resulted in improved response times to emergencies in the
northwest portion of the community. The Fire District will complete the landscaping for
the Hellman Station in FY 2012-13 and will utilize this opportunity to provide an example
of fire wise landscaping for the community who live in the Wildland Fire Hazard area.
Additionally, the Fire District will be completing major capital repair projects at several
facilities in FY 2012-13 including Jersey, Banyan and Day Creek Fire Stations. Work
will continue towards planning for the training center at the Jersey Fire Station and
pursuing opportunities to secure property for the relocation of the San Bernardino Road
station and a possible future mid-town fire station (Station 8) per the Fire District's
Strategic Plan.
The purchase of a replacement aerial ladder truck for the Jersey Fire Station is a critical
project for FY 2012-13 as the current unit is over 10 years old. The old unit will remain
in the fleet as the District's only reserve ladder truck. Additionally, the District will look
to replace the fire engine at the East Avenue Station and the Jersey Station. Further,
the Fire District will continue its innovative use of the on-shift Fire Inspector by adjusting '
that position to aCaptain-Specialist as of midyear. This 24/7 single-staffed resource will
be able to do greater patrol and enforcement functions in support of Cucamonga
Canyon and other foothill areas, have increased capability and qualifications for
command and control on significant incidents, greater autonomy to handle incidents on
a solo basis, thus freeing engine and truck companies to be available for more serious
incidents, and enhanced collaboration with Building and Safety and Code Enforcement
for responses to after hours issues involving potential public safety concerns.
Page 19
The Fire District continues to maintain three unfunded Firefighter positions. For the
upcoming fiscal year, the District will eliminate two part-time positions in order to help
fund the creation of a full-time Fire Prevention Specialist. This position will enable the
Fire Prevention Bureau to expand its ability to handle technical fire inspections and
continue to explore ways to reduce the risk for fires in commercial/industrial and multi-
family occupancies and achieve state-mandated inspection standards. Lastly, the
District will look to expand the use of volunteers and interns to assist with clerical and
non-technical field activities thus maximizing the productivity of full-time staff at
Headquarters and the Fire Prevention Bureau.
Administrative Services
As a result of the State's elimination of the City's Redevelopment Agency, the
Administrative Services Department, along with several other City departments, has
been impacted by a loss of staffing. The Department has lost one (1) full-time and two
(2) part-time staff requiring the remaining staff to absorb these additional duties.
Nevertheless, despite this challenge, Administration Services is looking to turn this loss,
along with a recent retirement, into an opportunity for some restructuring within the
Department, providing new experiences for current staff and enhancing the team
building atmosphere of the Department through cross-training and the reallocation of
duties.
Technology enhancements continue to be a main focus of the Department. The
Information Services (IS) Division will begin the first phase of replacing the City's
desktop computer hardware and software which is approaching between 5 and 7 years
old. The IS Division will also continue working towards implementing a viable solution
for replacing the City's land management software while being mindful of the City's
limited resources. The land management software, known as Tidemark, was originally
purchased in 2001 and will be de-supported by the software maker, Accella, within the
next three to five years. Because of the critical nature of this software, which is used by
Engineering, Planning, Building and Safety and Code Enforcement, the City must
transition off this legacy platform before it becomes completely obsolete.
In a similar vein, the Purchasing Division will facilitate the upgrade of the City's
voicemail system which is coming to its end-of-life cycle this calendar year and
becoming increasingly difficult to support. The current voice mail system was original
installed in 2000 and will be de-supported in September 2012. Through a partnership
with the vendor, NEC Unified, the City will be able to utilize a targeted approach that
upgrades the current voicemail system to enhance the City's communications abilities
with unified messaging and unified communications while transitioning off the legacy
platform. Further enhancing communications, the Geographic Information Systems
(GIS) Division will continue development of an Android software version of the City's
highly acclaimed in-house developed mobile app known as RC2G0. RC2G0 provides
a listing of local attractions, Wi-Fi locations, shops, historic sites, businesses,
restaurants, parks, community centers and government building locations and much
Page 20
more. The GIS Division will also continue its mapping support functions for the City's
public safety departments.
Human Resources will continue its efforts to fill critical vacated positions. The
Department will also commence an internal audit through the City's contract labor
attorneys, Liebert, Cassidy & Whitmore, to ensure the City's compliance with the federal
Fair Labor Standards Act (ELBA). With the change in various job classifications over
time, including the most recent force reductions and restructuring, it is important that the
City remain compliant with FLSA as it relates to various overtime provisions. Violations
of the Act can result in large fines and other sanctions. Staff will be working with legal
counsel to review job titles and duties to ensure proper classification city-wide.
Lastly, the Special Districts Division will continue to monitor the fiscal health of the City's
various lighting and landscape maintenance districts to determine if and when there will
be a need for a future Proposition 218 assessment mail ballot election in those districts
without current inflation indexes. Those districts whose voters choose to maintain their
assessments at the [current] 1996 levels will likely require enhanced fiscal austerity
measures including different landscape maintenance levels and potentially further
landscape decommission as recently occurred in LMD 8. All actions are intended to
provide the best results possible while ensuring each LMD maintains fiscal self-
sufficiency.
Animal Care and Services
The Animal Care and Services Department provides care to more than 5,700 animals
per year which compares very favorably to the 4,800 animals it provided service to in
2007, the Department's first full year of operation. Additionally, the Department
responds to over 6,400 calls for service through Field Services. Under new
administration, the FY 2012-13 budget reflects an internal reorganization to allow for
more efficient use of existing staff and contract services. With the goal of building a
community in which every adoptable pet finds a home, the Animal Center's focus for
this next fiscal year will be on animal care, strengthening the overall operations of the
Department and expanding community partnerships to build a solid foundation for future
growth of programs and services that will better serve the animals and people in our
community. Also included in the budget is fundraising/donations from the Community
Foundation and usage of the spay/neuter reserve to replace cages in the cat Purr
Promenade area and purchase new stainless steel cages for the hallway and will
include related HVAC improvements to these areas. This will allow for more efficient
cleaning procedures to eliminate the spread of disease and allow for better housing for
our cats and dogs to minimize their stress levels and help them get adopted.
New for FY 2012-13 is the addition of a full time licensing canvasser position to improve
the license compliance rates in the City and increase the number of animals that have
identification and can be returned back to their owners. It will also result in a projected
increase of $50,000 in revenue for the department. In addition, the canvasser will aid in
community outreach and public education about responsible pet ownership and the
Page 21
resources available to pet owners through the Animal Center such as spay and neuter
vouchers, micro-chipping and general pet ownership information.
Building and SafetylCode Enforcement
The Building and Safety Department budget for FY 2012-13 reflects a complete
elimination of all major contract services in order to reduce costs. The department,
however, remains focused on three (3) main areas: maintaining excellent customer
service, increasing volunteerism within the department, and complying with the State
mandated mobile home park safety inspections. Due to the direct impact of the City's
budget deficit, staffing in Building and Safety/Code Enforcement has been reduced by
(3) full-time personnel; which is an overall 10% reduction in the department's staffing.
The department will continue to utilize cross training of staff so that services that are
currently provided will not be substantially impacted. Staff will also continue to work
closely with the mobile home park residents and park owners via the Mobile Home
Accord program. Finally, the Code Enforcement Division will work to increase the
number of volunteers within the department to assist with neighborhood clean-ups and
removal of illegal signage. On an as-needed basis, the Building and Safety/Code
Enforcement Department will continue to collaborate and assist with other departments
on special capital improvement and City projects or events. Examples of this
collaboration include the Grape Harvest Festival, the Freedom Courtyard project,
remodeling of the fire stations, and remodeling and repairs of other City buildings.
City Clerk/Records Management
During Fiscal Year 2012-13, the Department expects to assemble and distribute at least
36 agenda packets for the Rancho Cucamonga Successor Agency, Fire Protection
District and City Council averaging 300 pages each and attend the meetings and
provide minutes and action agendas. Similar support is provided for the 10 City Council
subcommittees that exist, and the newly formed Oversight Board, including agendas
and minutes on an as needed basis.
On an on-going basis, public records act requests are accepted and addressed
whenever possible, legal notices are published as required by law and supplements are
distributed to the Rancho Cucamonga Municipal Code as Ordinances are adopted by
the City Council. The Department accepts Campaign Financial Disclosure Statements
and Statements of Economic Interests, maintains all bonds and processes their
releases and sends documents to the County recorder. Bids for public works projects
are opened at the public counter. In addition, the Department accepts claims and
subpoenas, applications for appointment to the City's Boards, Foundations and
Commissions and calendars the appeals for Code Enforcement, Animal Services and
the Fire District.
A Municipal election is planned to be held on November 6, 2012 to fill two seats on the
City Council as well as the positions of City Clerk and City Treasurer. The nomination
period will commence on Monday, July 16, 2012 and will continue until August 10, 2012.
Page 22
If an incumbent does not file, the nomination period will be extended to August 15,
2012.
In addition to the Candidate's Handbook for the November 2012 election, which
contains the forms and information for candidates wishing to run for local elected office,
the Department will be preparing the Candidate's Manual which contains information
regarding the various Departments and their activities in the City. Both of these
publications will be prepared during the spring of 2012 and distributed in the summer of
2012 to all candidates seeking City office. During that time, the Department expects to
qualify candidates for the November election and also coordinate a candidate
orientation with the Executive Management team. In addition, voter information will be
provided before and during Election Day and the new City Council members, City Clerk
and City Treasurer will be seated in December 2012 after the votes are counted and
certified.
City Management
City Management, which was among the first departments to begin attriting personnel
several years ago when the current economic recession began, continues to lead by
example. For Fiscal Year 2012-13 the Department has attrited two more clerical
positions. Through strategic use of the savings from these attrited positions, as well as
vacant intern positions, and outside non-General Fund grants, the Department has been
able to hire afull-time Management Analyst I (formerly with the RDA) as well as a
Management Aide. These positions will allow the Department to support all current
programs and provide additional capacity for future programs because of their broader
range of duties and additional training. City Management continues to lead the way into
the future through a variety of innovative programs. The award winning Healthy RC
program, a cooperative program involving multiple departments and outside public,
private and non-profit agencies, is led and directed from City Management. Healthy RC
enters its third year of the Robert Wood Johnson grant with major initiatives to improve
access to healthy food and physical activity, such as promoting community gardens,
farmers markets and Complete Streets. Recent grant-funded additions to the Healthy
RC program include developing breast feeding friendly work policies and building the
capacity for healthy eating initiatives.
City Management also coordinates between community partners issues involving
school safety, including crossing guards and the Safe Routes to School program (also
grant funded). Staff support for the Mayor's active role on the League of California
Cities Board of Directors is provided from the office, as well as support for the Mayor
Pro Tem's leadership of the Legislative Task Force for the Inland Empire Division of the
League of California Cities, and all federal and state legislative and policy activities of
the City Council. As the City has become a more active force in the League, and
lobbying statewide, the City's position on issues becomes more and more critical.
Maintaining close working relationships with our elected State representatives is more
vital than ever. In addition, as the Mayor's role with the League Board of Directors
increases, staff is called upon to provide critical communication with the League Staff in
Page 23
Sacramento as well as locally. At the Federal level, staff monitors the annual
appropriations process and other federal issues of citywide interest.
The City's Green RC program is also led and directed from City Management and is
coordinating efforts to improve energy efficiency citywide, reduce the City's carbon
footprint, and ultimately reduce costs for the City by going green. In addition, City
Management remains closely involved with Human Resources in supporting Team RC
and coordinating the City Council Goals and Objectives for calendar year 2012. New
initiatives for FY 2012-13 include the Look-Look-Look pedestrian and traffic safety
campaign to encourage motorists, pedestrians and bicyclists to travel safely, the
Partnership for a Greener Northtown initiative, and the continued expansion of the
Green Business Recognition Program.
Community Services
The Community Services Department specializes in offering high quality recreational
and cultural programs and managing public recreational facilities for Rancho
Cucamonga residents. In FY 2012-13, the Department will continue to trim operating
costs and streamline staffing, programming and operations to meet budgetary
challenges. Like all departments, Community Services has lost full-time personnel due
to downsizing and budgetary restrictions. Compared to FY 2011-12 the Department
has lost 20 personnel and will be working towards restructuring and reorganization of its
existing personnel.
A significant new initiative that will be undertaken in FY 2012-13 is a Community Wide
Needs Assessment. The last Needs Assessment was completed over 10 years ago,
and the new assessment will provide valuable information to guide the future direction
of programs, services, parks and facilities. The Department will also continue to place
emphasis on fund development activities and provide staffing and administrative
support to the efforts of the Rancho Cucamonga Community and Arts Foundation as
they conduct their fundraising and giving activities on behalf of the Lewis Family
Playhouse. The Department will focus on its core community programs including youth
and adult sports, family special events, youth programs, senior activities and cultural
arts. Staff is also working to form new partnerships with community based
organizations in collaborative programming efforts.
Community Services will also move forward on several currently funded park
development and capital projects in FY 2012-13. These projects include the completion
of Freedom Courtyard, the City's community funded memorial tribute to all veterans,
past, present and future which will be located at Central Park. Additionally, work is
undervvay to design, bid and construct the Central Park Pavilion which is funded through
a grant from the County of San Bernardino. Regular facility maintenance will also
continue including ADA playground replacements at Mountain View and Golden Oak
Parks. Lastly, final design and environmental work will begin for Southwest Cucamonga
Park, a $3.9 million dollar project made possible by State Park bond funds which the
City successfully competed for in FY 2010-11.
Page 24
Engineering Services
The Engineering Services Department has made a continuous effort to maintain a high
level of service to the community despite cut backs and layoffs, and is continuing to
streamline operations and restructure staff. The Department consists of Administration,
Land Development, Traffic Management, Capital Project Management, Environmental
Programs and the City's very own electric utility -the Rancho Cucamonga Municipal
Utility. Staff can often be seen cross-training and assisting other sections in the
Department, as they are needed to ensure that with the limited resources available
tasks are completed as effectively and efficiently as possible.
Despite the loss of RDA funding, and six full-time personnel who were formerly funded
by Redevelopment, the Department is moving forvvard with several major projects. The
Capital Project Management Section will continue with the second phase of the Hellman
Avenue Master Plan Storm Drain Project, which when completed will provide the public
with relief from annual reoccurring floods and help reduce flood insurance in the area.
Utility Undergrounding projects along Arrow Route and Base Line Road will be
performed. The Traffic Management Section will oversee a Traffic Signal Controller
Replacement Project and a coordinated Traffic Management Center Upgrade to provide
substantial improvements in system-wide signal timing and coordination strategies. The
Environmental Programs Section will begin to utilize a new Household Hazardous
Waste facility which will incorporate environmentally-friendly construction, such as solar
power, and will improve customer service by reducing severe weather-related closures
and will ensure adequate storage for increased usage. The Department as a whole is
also placing significant emphasis on seeking and securing more grant funding and
rebate opportunities to fund programs and improvements. The Environmental
Programs Section continues to utilize grant resources for many of its programs, and the
Capital Project Management Section has been successful in securing over $750,000 for
projects in FY 2012-13. ADA improvements to 53 existing public transportation stops
and a Pacific Electric Trail connection project at the Day Creek Channel path will be
constructed, in part, with Article 3 grant matches. Safe Routes to School grants will
partially fund bike trail improvements and a sidewalk construction project to provide
students a safe and direct route to school. Finally, various pavement rehabilitation
projects utilizing asphalt-recycled rubber hot mix will qualify for Cal Recycle rebates.
The Rancho Cucamonga Municipal Utility (RCMU) continues to be awell-managed
enterprise that encourages customers to utilize energy efficient measures available to
them, and does so through its energy efficiency rebate program. In FY 2011-12, RCMU
customers saved approximately 95,342 kilowatt hours of electricity through lighting
upgrades, and RCMU expects customers to continue that trend through the next fiscal
year and beyond. RCMU heavily markets its solar rebate program and very competitive
rebate rate in hopes of encouraging more local businesses to invest in solar
photovoltaic (PV) systems. Currently, two RCMU customers have solar PV systems
which are estimated to save 105,049 kilowatt hours of electricity per year. RCMU is
also exploring the possibility of investing in its own solar demonstration project to further
educate the community on the benefits of renewable power and to be an example to
Page 25
local residents and businesses alike. To further this effort, RCMU has been awarded a
$20,000 grant from the American Public Power Association to partner with the Biane
Public Library to design and build a Solar Photovoltaic Play and Learn Island which will
be an interactive tool for children to explore and learn about renewable power.
Library Services
The principle revenue source for the Library budget (approximately 82%) is property
tax. As in previous years, the result of increased delinquencies, overall declining
property values and new foreclosures, property tax revenues have decreased. In
addition, due to budget cuts at the State level, for the first time, the Library did not
receive any funding from the California State Library this year. This amount was
approximately $180,000 (5%) and supported many programs, including the Adult
Literacy and Back 2 Basics after-school reading program. The Library has also had to
make reductions to its book replacement budget and to certain program as well as a
slight reduction in service hours.
To address revenue issues, the Library will continue keeping a number of positions
vacant. The Library has also continued to be successful in applying for and
implementing new grants, and continues to receive strong support from both the Friends
of the Library and the Library Foundation.
Despite the fiscal challenges, the Library continues to offer over 90 programs every
month to the public, ranging from computer classes to story times to after school
reading programs to adult literacy. The Library also held a number of large, well-
attended programs celebrating Black History Month, Asian and Pacific Islander Month,
Hispanic Heritage Month and Local Historical Preservation Month. In addition, the
Library continues to pursue entrepreneurial endeavors, including the implementation of
a second passport acceptance agency at the Archibald Library as well as launching a
venture to sell its popular Play and Learn IslandsT"' to other interested libraries
throughout the country. All of these will help to strengthen revenues so that the Library
can continue to offer innovative, fun, and educational programs and services that the
community has grown to expect.
Planning Services
The Planning Department has accomplished many of its goals in FY 2011-12 and looks
forward to continuing its award winning efforts in the upcoming year. The completion of
the update to the Development Code is drawing to a conclusion and incorporates the
policies established by the Council in the 2010 General Plan. Some of the highlights of
the Development Code include: incorporating incentives for sustainable development,
providing for more applications to be reviewed and approved at the Planning Director
level, updating the land use tables and definitions, updating the sign code, and
providing more graphics and visual images to further express examples of the quality of
development that is expected in the City. Also, as is a standard practice for Rancho
Cucamonga, the Development Code update included participation from the
Page 26
development and business community through stakeholder meetings and public
workshops to gain feedback and ideas from the public.
Another area of focus for the Planning Department in the upcoming fiscal year will be
continuing to have an active role in the development of the City's Sphere of Influence.
As the City becomes built out, the interest in development in the Sphere will likely grow.
The City and the County have had a long standing cooperative relationship and the
Department will continue to work with the County to insure consistency with the City's
hillside and development standards.
In the upcoming year, staff will begin working on the update to the Housing Element as
required by the State's Department of Housing and Community Development (HCD).
The Housing Element update, which is due by October 2013, will address changes in
state law as well as updating the progress of programs in the current Housing Element
and the Development Code update (i.e., transitional housing, emergency shelters,
reasonable accommodations, etc). This update will also reflect the loss of
redevelopment and the change in programs that will occur as a result of the loss of that
funding source. All of the City's previous Housing Elements have been certified by HCD
and Planning staff will ensure the Housing Element update will be completed by the
statutory submittal deadline.
The Department will continue delivering quality development related services and
programs. The Department has already incorporated, and will continue to refine, the
recommendations made in 2011 by the Development Review Process Working Group
to further streamline the application and approval process. Although funding for
Community Development Block Grant is decreasing, staff will continue to assist with
grant funding for home improvements for low-to-moderate income homeowners. As a
result of the loss of Redevelopment this past year, the Planning Department, along with
the entire Community Development Department, will play a key role in continuing the
City's economic development efforts to promote private investment and job creation. In
order to rebuild the economic development program that was severely impacted by the
loss of Redevelopment, the FY 2012-13 budget includes the hiring of a Deputy City
Manager/Economic and Community Development who will spearhead efforts towards
rebuilding this program. This position incorporates the duties of the eliminated Planning
Director position, thus combining two jobs into one resulting in salary savings.
Public Works Services
The Public Works Services Department is responsible for maintaining the City's facilities
and infrastructure including streets, storm drains, sidewalks, City vehicles, general
landscaping, park landscaping, Landscape Maintenance Districts, and all City-owned
buildings. The Department is comprised of Facilities Maintenance, Streets and Storm
Drain Maintenance, Fleet Maintenance, Parks and Landscape Maintenance Divisions,
and Administration. Public Works maintains the city's infrastructure including
approximately 520 miles of roadway, 186 signalized intersections, 72,000 trees, 29
parks and 14 City facilities.
Page 27
Core services will continue to be a high priority for Public Works, despite the large
number of vacancies remaining as a result of recent retirements and other reductions in
force, approximately 28.1 in total including both full and part time personnel. As with all
other city departments, Public Works has continued to refine services to reduce costs
and provide the best possible service with the least amount of impact to our residents.
During FY 2012-13, Public Works will reduce the commercial and arterial sweeping
program from twice a month to one time per month. Not only will this reduction reduce
costs, it provides the least amount of impact to residents. Public Works will also be
reducing graffiti removal from seven to six days per week with no graffiti crews on
Sundays. This change will bump up staffing levels on Wednesdays and Thursdays and
actually increase efficiency, since these are higher frequency days.
The sidewalk inspection, ramping and grinding program started in January 2010 and the
process used to identify and record problem areas now includes real-time reporting and
quicker response times using the latest mobile technology which will reduce the length
of time between identifying problems and repairing sidewalks. In January 2012 Public
Works crews started sidewalk inspections of city maintained paseos. In addition,
Landscape Maintenance District (LMD) 4 residents will see a large increase in the
number of sidewalk concrete repairs being done and an improved tree trimming cycle
due to the residents' support of the Proposition 218 ballot measure put before the public
in FY 2009-10. Other LMDs (5, 9 and 10) will also see a small increase in the number
of concrete repairs and improved tree trimming cycles due to a healthy fund balance.
FY 2012-13 includes the completion of several construction and maintenance projects
from prior years such as: completion of the new Public Works Services building and
Household Hazardous Waste facility in December 2012, refinishing of several tennis
courts at various parks throughout the city, continuing the replacement of street name
signs (both regular and illuminated) throughout the city, replacement of the City Hall
lobby ceiling tile, and replacements of the shade shelters at Red Hill and Heritage
Parks.
Several new maintenance projects have also been added to the FY 2012-13 budget.
These include the design and specifications for the HVAC system in the Civic Center
Public Safety facility and parking garage ventilation system, sidewalk repairs at Vintage
Park, continuing Feld renovations at several parks, replacement of main hallway carpet
at Central Park, painting of the lobby at the Cultural Center, re-design of exterior glass
doors at City Hall, replacement of the clarifier at the Sports Complex, painting of the
parking garage parking stalls at Victoria Gardens, replacement of Sports Lighting at
Etiwanda Creek Park, additional cobble installed in LMD 9, LED lighting upgrade at
Garcia Park, security lighting upgrade and the renovation of the south softball field at
Day Creek Park, LED lighting upgrade of one paseo in LMD 4, and the replacement of
fencing at Lions Park. All of these projects are designed to replace aged equipment
including addressing deferred maintenance, meet current safety and risk management
standards and improve energy efficiency. They are the types of projects that have now
Page 28
become common throughout the City as our facilities become more mature and ongoing
maintenance becomes commonplace.
The use of Compressed Natural Gas (CNG) vehicles continues to expand. Our CNG
fleet count currently stands at 15 (9 heavy duty, 6 light duty) with 2 more on order for FY
2011-12 and 5 have been requested in the FY 2012-13 budget. The FY 2012-13
budget includes the expansion of the CNG fueling station which includes an additional
two compressors and slow fill dispensers to accommodate the expanding CNG fleet.
Staff has submitted a grant request to the MSRC/AOMD for funding assistance for four
of the vehicles ($40,000) in the FY 2012-13 budget. We received grant funding of 50%
or up to $200,000 from the same source to expand the CNG fueling station.
Fiscal Summary
The Proposed FY 2012-13 Budget is a product of continuing departmental operating
budget reductions which will eliminate budgeting for primary use of reserves. The
following is a summation of all Proposed FY 2012-13 City Budgets:
City General Fund $ 63,414,270
Library Services $ 3,924,980
Fire Protection District $ 32,573,770
Special Funds including CIP $ 68,343,940
Summary
Rancho Cucamonga remains committed to maintaining its 30+ year tradition of fiscal
stability and providing the highest quality services to its residents and businesses within
budgetary constraints. Whether through the gradual reduction of the operating budgets
along with a commensurate phase out of reserve fund use over the last several years,
or the more sudden reduction in personnel and operating funds that came with the
State's unprecedented elimination of Redevelopment in FY 2011-12, the emphasis
remains on stability of providing quality services for the community. It is clear that any
community which aspires to obtain a "world-class' standard in everything it does, must
maintain a comprehensive suite of public services. Strong and responsive public safety,
well maintained infrastructure, acareful approach to planning and engineering, high-
quality community services, animal care and library services, an active economic
development program, effective long-range planning and goal setting, and a strong
conservative fiscal reporting and budgeting approach that supports all of these services;
all of these components are necessary in a vibrant and healthy community.
Looking back from this point it is clear that the City's more conservative approach to
budgeting over the years has ensured an adequate reserve fund that has enabled the
City to structure a logical transition during this economic downturn. This has benefited
the community as well as the organization and the resulting budget provides a sound
platform for the future as the City continues to navigate through the remainder of the
downturn. The fiscal discipline that the City Council has maintained has enabled a
much better outcome for Rancho Cucamonga than in many other places, even with the
Page 29
loss of the sixth largest redevelopment agency in California. Going forward, that strong
fiscal discipline will provide a sound platform for the City as it carefully works to replace
the reserves lost to the State of California, continues to shift focus from increased
growth to increased infrastructure maintenance, and plans for an even more dynamic
next 30 years as a community. Further, the carefully nurtured cooperation and
communication with the City's labor groups has also contributed to the cost saving
budget solutions as all employees have worked hard to help sustain core city services
and have made sacrifices along the way. The employees take great pride in the work
they do and support the organization and the community in an outstanding way. That is
why the City's Team RC Mission Statement is and remains delivering superior service
to all who live, work and play in our community.
Each year, no matter how difficult, the City must balance its budget. Yet, no matter how
diligent we are, we must recognize that the State has yet to solve its own fiscal
problems. Often, as we have seen from the past, the State has an appetite for taking
away local revenues. FY 2011-12 was a particularly difficult year as the State robbed
local government of more revenue with a few strokes of the pen than it has in the last 20
years. Despite that, the City persevered and indeed, seeks to thrive despite the
reductions over which it had no control. Rancho Cucamonga must continue to make its
concerns heard and work with other jurisdictions and organizations such as the League
of California Cities to fight against any new take away of local revenues. In the
meantime, the budgets presented, while still lean, are balanced within the resources
available to our jurisdiction, without the use of operational reserves; the caveat, of
course, is that this state of balance is pending any further State impacts to local
revenues. Continued fiscal discipline cannot be overemphasized.
Page 30
f'
^ RANCHO
CUCAMONGA
(,,'A~.~voalru
These 2012 goals were developed at the January 2012 Cky Council goal-setting session. As noted many of
these programs and projects are multi year in nature in order to develop and implement.
PUBLIC SAFETY
Proactively develop public safety programs and facilities to meet community needs.
~ Establish a pilot license canvassing program to increase licensing compliance, generate educational opportunities,
and increase community interaction. Animal Care
'!P Develop an Animal Services three-year Strategic Plan. Animal Care and Services/City Manager's OHice
'IP Utilize three Safe Routes to Schools grants to improve/construct the Deer Creek Channel adjacent to the Pacific
Electric Trail, improve Valle Vista School sidewalks, and develop a Safe Routes to School Program to encourage
walking and bicycling on the Pacific Electric Trail at five targeted pilot schools in the City. Engineering
Services/City Manager's OHice
'!P Complete construction drawings for a training facility at Jersey Fire Station (174). Fire District
~ Implement a comprehensive field-based data collection system for the Fire Prevention Bureau. Fire District
'~ Implement aMulti-Agency Access Enforcement Strategy for Cucamonga Canyon. Fire District
~ Implement the Tactical Emergency Response Mapping Program at all High Schools and Middle Schools in Rancho
Cucamonga. Police
~ Develop a Probation Compliance Team (PCT) consisting of dedicated Sheriff and Probation personnel to
maximize probation compliance under AB 109. Police/City Manager's OHice
~ Present to City Council for approval policies and procedures to govern a pilot public safety video camera network
program. Police
~ Develop Phase I of a Public Safety Video Camera Network to provide as-needed video monitoring of
strategic/high-risk public areas throughout the City. Police/City Manager's Office
PARKS AND RECREATION DEVELOPMENT
Proceed with planning and development of major parks and recreational projects.
!P Complete construction drawing for the Southwest Park project funded by the 2008 Statewide Park Development
and Community Revitalization Program. Community Services
~ Complete construction drawings for the Freedom Courtyard at Central Park. Community Services
!~ Install a video signage board in the Victoria Gardens Cultural Center Imagination Courtyard. Community
Services
~ Complete the design, bid, and construction of the Etiwanda Creek Park sports lighting replacement project. Public
Works Services
ENHANCING PREMIER COMMUNITY STATUS
As the community matures, undertake programs and projeMs to enhance Raneho
Cucamonga's position as the premier community in our region.
2012 CITY COUNCIL GOALS
~ Present to Council for consideration a building permit study/update which is designed to achieve maximum
feasible cost recovery. Building and Safety
~ Develop and present to Council a Green Business Recognition Program that recognizes local businesses for their
environmentally sustainable practices. City Manager's Office
~ Expand community outreach to enhance volunteerism by increasing the number of volunteers in Code
Enforcement to four volunteers and one volunteer in Building Plan Check. Building and Safety
~ Provide four Public Safety education meetings to RC mobile home park residents through a multidepartmental
partnership between Building and Safety, Police, and Fire. Building and Safety
'If Implement grant-funded Healthy RC Kids Program to develop policies to increase opportunities for physical activity
and access to healthy food with an emphasis on southwest Rancho Cucamonga. City Manager's Office
~' Negotiate updated joint use agreements with the elementary school districts.
!P Present a report to the City Council on the feasibility of renewable energy sources (e.g. wind power, energy
storage units) as possible alternatives for RCMU. Engineering Services
~ Award construction on the East Avenue Storm Drain -from Foothill Boulevard to north of Base Line Road and
westerly on Base Line Road. Engineering Services
~ Present to City Council afive-year master drainage capital improvement priority list.
~ Advance the Foothill boulevard Street Widening and Bridge Improvement Project (Grove Avenue to Vineyard
Avenue) for bidding and complete construction. Engineering Services
~ Complete construction of a new Household Hazardous Waste (HHW) Facility to provide a permanent home far
collection of a-waste and household wastes (i.e. oil, paint, fluorescent lighting, batteries, etc.). Engineering
Services
~ Implement an educational solar demonstration project at the Biane Library at Victoria Gardens. Engineering
Services
~ Partner with Burrtec Waste Industries in a pilot Food Waste Diversion Program to help meet compliance elements
of AB 341 which includes the goal of not less than 75% of solid waste generated be source-reduced, recycled, or
composted by 2020. Under the program, food waste collected from select participating restaurants and dining halls
will be converted into compost at Burrtec's West Valley Materials Recovery Facility. Each establishment will
receive a designated bin and equipment to use in the kitchen to separate food waste from other kitchen waste. Six
establishments are currently participating, and mare will be recruited on a best-fit basis. Engineering Services
~ Work with CalTrans to install Historic Route 66 directional signs at I-15 and Foothill Boulevard exits. Engineering
Services
~ Complete retrofit of sports lighting at the Adult Sports Complex tc increase lighting levels to be in compliance with
minor league standards. Public Works Services
~ Complete construction of a new Public Works Service Center building. Public Works Services
MID AND LONG RANGE PLANNING
Begin efforts to develop mid-range and long-term goals and vision for the City.
~ Complete a professionally conducted needs assessment that updates the 2001 needs assessment and is focused
on recreational and cultural programs and facilities to be used in creating long range park development and
recreational program vision plan. Community Service/City Manager's Office
~ Complete a comprehensive update of the Development Code for Planning Commission and City Council approval.
Planning
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~ Present to the City Council proposed development incentives designed to encourage private development to
achieve energy and resource efficiency which exceeds Building Code requirements, including a specific Green
Building policy for new government (local, county, state, and federal) operated buildings and facilities. Planning
OTHER OBJECTIVES:
Begin multi-year process of revising and/or implementing major City documents and
systems, including:
'~ Revise the City Budget document to provide greater accessibility to the public and enhance its eligibility for
Government Finance Officers Association budget award. Administrative Services
~ Develop Timecard Online software for the City's payroll system to automate the City's timekeeping process,
improve accuracy, and greatly reduce staff input time. Administrative Services
'I- Review Department fee structures to determine any necessary update to ensure complete cost recovery.
Administrative Services
~ Revise the Purchasing Ordinance and Policies and Procedures to ensure consistency with recommended industry
standards and organization and community effectiveness (three year process). Administrative Services
~ Begin the meet and confer process with all City employee bargaining groups to update the City's Personnel Rules
and Regulations. Administrative Services
'!j Complete the replacement of the City's telephone infrastructure. Administrative Services
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