HomeMy WebLinkAbout2018/03/06 - Agenda Packet - Planned Communities Citizens' Oversight Committee /r r rte,
CITY OF RANCHO r y!
MARCH 6, 2018
PLANNED COMMUNITIES CITIZENS' OVERSIGHT COMMITTEE AGENDA
PUBLIC WORKS SERVICE CENTER
8794 LION STREET
RANCHO CUCAMONGA, CA 91730
Al. Pledge of Allegiance
A2. Roll Call: Jaime Garcia, Chair
Otis Greer
Christina Macias
Ruth McMillan
Demeke Muarega
Pete Peterson
A3. Approval of Minutes: April 18, 2017
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This is the time and place for the general public to address the Planned Communities Citizens'
Oversight Committee on any item listed or not listed on the agenda. State law prohibits the
Committee from addressing any issue not previously included on the Agenda. The Committee
may receive testimony and set the matter for a subsequent meeting. Comments are to be limited
to five minutes per individual.
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Cl. Election of Committee Chair and Vice-Chair
C2. Review and Discussion of Annual Independent Report.
C3. Review and Approval of Annual Written Report to the City Council.
C4. Review the Hiring of a New Maintenance Coordinator to Oversee Landscape Maintenance
Contracts, Trails, Pesticide Applications, and Water Management Throughout the Planned
Communities Districts
C5. Planned Communities District Updates.
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1, Melinda Garcia,Administrative Secretary of the City of Rancho Cucamonga, hereby certifies that a true,
accurate copy of the foregoing agenda was posted on March 1, 2018 at 5:30pm per Government Code
Section 54954.2 at 10500 Civic Center Drive and 8794 Lion Street, Rancho Cucamonga, CA 91730.
Melinda Garcia
CITY OF RANCHO CUCAMONGA
PLANNED COMMUNITIES CITIZENS' OVERSIGHT COMMITTEE
ANNUAL MEETING MINUTES
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The City of Rancho Cucamonga Planned Communities Citizens' Oversight Committee held their Annual
Meeting on Tuesday, April 18, 2017 at the Rancho Cucamonga City Yard, 8794 Lion Street, Rancho
Cucamonga, California. Deputy City Manager/Administrative Services called the meeting to order at
3:00 p.m.
Al. Pledge of Allegiance:
Led by Committee Member McMillan
A2. Roll Call:
Present: Jaime Garcia, Christina Macias, Ruth McMillan and Pete Peterson.
Absent: Demeke Muarega
Staff Present: Tamara Layne, Finance Director; Bill Wittkopf, Public Works Director; Noah
Daniels, Finance Manager; Chris Bopko, Management Analyst III; Kelly Guerra, Special Districts
Technician; Frank Kikuchi, City Auditor; and Melinda Garcia, Administrative Secretary.
A3. Approval of Minutes:
Committee Member Peterson motioned to approve the minutes from the meeting of March 8,
2016. The motion was seconded by Committee Member Macias.
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No public communications were made.
Cl. Review and Discussion of Annual Independent Report.
The City Auditor, Rich Kikuchi, provided detailed information about the role of the auditor,
procedures, the various letters that they issue, and results. A discussion ensued regarding
rates, fund balances, uses of funds, administrative costs, reserves and the budget. Staff
provided information explaining what is permitted within the special districts and what is not.
C2. Review and Approval of Annual Written Report to the City Council.
Following the discussion, Committee Member McMillan motioned to approve the Annual
Report to the City Council. The motion was seconded by Committee Member Peterson.
Committee Member agreed to present the report to the City Council. The Committee
recommended the report be presented to the City Council at a meeting in May. Staff to follow-
up with a date.
C3. Planned Communities District Updates.
PW Director Wittkopf provided a list of numerous projects throughout the City. A discussion
ensued concerning lighting, the expansion drought tolerant landscaping and contract services.
Committee Member Garcia motioned to adjourn the meeting. The motion was seconded by
Committee Member Peterson. The meeting adjourned at 7:05 p.m.
Respectfully submitted,
Jaime Garcia, Chair
Date:
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INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Planned Communities Citizens'Oversight Committee
City of Rancho Cucamonga, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the statement of revenues, expenditures and
changes in fund balances of Landscape Maintenance Districts #2 Victoria, #4R Terra Vista, #6R Caryn
Community,and#7 North Etiwanda of the City of Rancho Cucamonga,California,(collectively,the Districts)
for the year ended June 30, 2017, and the related notes to the statement of revenues, expenditures and
changes in fund balances, and have issued our report thereon dated January 29, 2018.
Internal Control over Financial Reporting
In planning and performing our audit of the statement of revenues, expenditures and changes in fund
balances,we considered the Districts'internal control over financial reporting(internal control)to determine
the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions
on the statement of revenues, expenditures and changes in fund balances, but not for the purpose of
expressing an opinion on the effectiveness of the Districts'internal control.Accordingly,we do not express
an opinion on the effectiveness of the Districts' internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees,in the normal course of performing their assigned functions,to prevent,or detect and correct,
misstatements on a timely basis.A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity's
statement of revenues, expenditures and changes in fund balances will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention by
those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Districts'statement of revenues,expenditures
and changes in fund balances are free from material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the determination of statement of revenues, expenditures and
changes in fund balances amounts. However, providing an opinion on compliance with those provisions
was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
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To the Planned Communities Citizens'Oversight Committee
City of Rancho Cucamonga, California
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Districts' internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Districts' internal control and compliance.
Accordingly,this communication is not suitable for any other purpose.
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Brea, California
January 29, 2018
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January 29, 2018
To the Planned Communities Citizens'Oversight Committee
City of Rancho Cucamonga, California
We have audited the revenues, expenditures and changes in fund balances of the Landscape
Maintenance Districts #2 Victoria, #4R Terra Vista, #6R Caryn Community, and #7 North Etiwanda
(collectively, the Districts) of the City of Rancho Cucamonga for the year ended June 30, 2017.
Professional standards require that we provide you with information about our responsibilities under
generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as
well as certain information related to the planned scope and timing of our audit. We have communicated
such information in our letter to the City Council of Rancho Cucamonga dated May 24, 2017. Professional
standards also require that we communicate to you the following information related to our audit.
Significant Audit Findinas
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the Districts are described in the notes to the financial statements. No new
accounting policies were adopted that impacted the statement of revenues, expenditures and changes in
fund balances of the Districts, and the application of existing policies was not changed during Fiscal Year
2016/17.
We noted no transactions entered into by the Districts during the fiscal year for which there is a lack of
authoritative guidance or consensus. All significant transactions have been recognized in the financial
statements in the proper period.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management. No
misstatements were found.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor's report. We are pleased to report that no such disagreements arose during the
course of our audit.
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To the Planned Communities Citizens'Oversight Committee
City of Rancho Cucamonga, California
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated January 29, 2018.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a"second opinion" on certain situations. If a consultation involves application
of an accounting principle to the Districts' statement of revenues, expenditures and changes in fund
balances or a determination of the type of auditor's opinion that may be expressed on those statements,
our professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. To our knowledge, there were no such consultations with other
accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the Districts' auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
Other Matters
We applied certain limited procedures to the audit. These procedures include, but are not limited to, the
following:
Proposed Segmentation of the Engagement
We utilize a governmental audit program which we will tailor to the Districts' operations. The
tailoring is necessary to accommodate specific client circumstances and to recognize differences
in organizational structure. Our audit programs are organized by financial statement category.
This approach takes full advantage of our accumulated experience. The primary benefit is that
the risk of omitting important procedures is substantially reduced. We believe that this approach
tends to be the most effective and efficient for an entity such as the Districts. The audit
procedures are listed in the most logical sequence which improves efficiency. The savings in
effort and time gained by using our audit program can free an auditor's attention for unusual or
difficult situations that may arise. The audit programs are designed to increase audit efficiency by
linking financial statement assertions, audit objectives, and procedures that are basic to most
governmental audit engagements.
Sample Size and Extent of Statistical Sampling
Our approach may be to utilize statistical sampling in the areas of receipts, disbursements, utility
billing and payroll. Here we develop a statistical conclusion based upon an initial computer
selected random sample which is based on the population and other risk factors identified. If
errors are noted in the sample, the sample size will be expanded. We believe that a random
selection can be efficient, while providing each item in the population an equal chance of being
selected. Additionally, we may select a stratified sample of all transactions over a specified
dollar limit for review. This allows us to cover all high dollar value transactions not otherwise
selected in the random sample. Our samples are selected randomly utilizing IDEA data analysis
software.
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To the Planned Communities Citizens' Oversight Committee
City of Rancho Cucamonga, California
Extent of EDP Software
Our traditional approach is to"audit around"the computer, which means that we verify output by
agreeing it, through our audit tests, with corresponding source input transactions. We do not
choose to use audit software that runs through the Districts' computer system, such as a test
deck. Like other aspects of the internal control structure, computer controls are documented in
our memoranda and questionnaires. We will consider whether specialized skills are needed to
consider the effect of computer processing on the audit, to understand the internal control
structure policies and procedures or to design and perform audit procedures.The decision to use
a computer specialist in audit planning is a matter of our professional judgment. We will consider
the complexity of the computer system and assess whether we can identify the types of
misstatements that might occur. LSL's IT Specialist will be involved in the planning and
performance of the audit and also in assessing the IT controls of the Districts.
Analytical Procedures
We use analytical procedures as an overall review of the financial information in the preliminary
and final stages of the audit. These procedures are designed to assist us in planning our audit
and in assessing the propriety of the conclusions reached and in the evaluation of the overall
financial statement presentation. The procedures to be utilized consist of determining
expectations for percentage increases and decreases between significant revenue, expenditure
and balance sheet accounts, reading the financial statements and related notes, and we focus on
overall relationships within the financial statements. Once determined, these are reviewed to
determine if the changes appear reasonable or require further analysis. For all significant
differences, explanations are obtained as to why the situation occurred and additional
substantive procedures may be applied and related evidence gathered to resolve concerns and
questions.
Approach to Understanding Districts' Internal Control Structure
To gain an understanding of the Districts' internal control structure, we will perform procedures
as required by the new Auditing Standards, primarily SAS 104-111.This will include documenting
the major transaction classes, purpose of funds, the structure of the Districts and to quantify
materiality. We will review and make recommendations on the internal control structure, which
consists of Control Environment, Accounting System and Control Procedures. We will review
internal controls in the area of cash; investments; revenues and receivables; expenditures and
accounts payable; payroll; inventories; property and equipment, debt and debt service; insurance
and claims. Based on the result of our review, we will issue a formal internal control report
(SAS 115 Letter) that will identify any significant deficiencies and or material weaknesses which
we identify. This report is required by the Government Auditing Standards issued by the
Comptroller General of the United States. In addition, we will also issue a separate
communication letter directly to the City Council.
This letter would communicate any significant deficiencies or material weaknesses we identify in
the internal control system and other matters that we feel should be communicated to the
governing board.All internal control issues will initially also be discussed with management of the
Districts.
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To the Planned Communities Citizens'Oversight Committee
City of Rancho Cucamonga, California
Approach to Determining Laws and Regulations Subject to Audit
The Laws and Regulations that will be subject to audit test work are determined from the
applicable laws, regulations, contracts, and grant agreements which we identify through the
understanding we obtain of the Districts and our extensive experience with governmental entities.
Approach to be Taken in Drawing Audit Samples
For the purpose of tests of controls and tests of compliances with laws and regulations, we use
audit sampling. Tests of controls are procedures directed towards determining the effectiveness
of the design or operation of an internal structure policy or procedures. Normally, audit sampling
is used for tests of controls that involve inspection of documents and reports indicating
performance of the policy or procedures and, in many cases, re-performance of the application of
the policy or procedures. These sampling procedures test the operating effectiveness of an
internal control structure policy or procedures by determining how the policy or procedure was
applied, the consistency with which it was applied during the audit period, and by whom it was
applied. To achieve this goal, we draw samples in the area of disbursements, receipts, utility
billing and payroll. Each document selected will be tested for various attributes that are designed
to verify compliance with different aspects of internal controls. Additionally, each sample item will
be tested for coding to the proper accounts and posting to the general ledger.
New Accounting Standards
The following new Governmental Accounting Standards Board (GASB) pronouncements were effective
for Fiscal Year 2016/2017 audit:
GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets
That Are Not within the Scope of GASB Statement No. 68, and Amendments to Certain
Provisions of GASB Statement Nos. 67 and 68.
GASB Statement No. 74, Financial Reporting for Post-Employment Benefit Plans Other Than
Pension Plans.
GASB Statement No. 77, Tax Abatement Disclosures.
GASB Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit
Pension Plans.
GASB Statement No. 80, Blending Requirements for Certain Component Units-an Amendment of
GASB Statement No. 14.
GASB Statement No. 82, Pension Issues an Amendment of GASB Statements No. 67, No. 68,
and No. 73.
The following Governmental Accounting Standards Board (GASB) pronouncements are effective in the
following Fiscal Year audit and should be reviewed for proper implementation by management:
Fiscal Year 2017/2018
GASB Statement No. 75, Accounting and Financial Reporting for Post-Employment Benefits
Other Than Pensions.
GASB Statement No. 81, Irrevocable Split Interest Agreements.
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To the Planned Communities Citizens'Oversight Committee
City of Rancho Cucamonga, California
GASB Statement No. 85, Omnibus 2017.
GASB Statement No. 86, Certain Debt Extinguishment Issues.
Fiscal Year 2018/2019
GASB Statement No. 83, Certain Assets Retirement Obligations.
Fiscal Year 2019/2020
GASB Statement No. 84, Fiduciary Activities.
Restriction on Use
This information is intended solely for the use of the Landscape Maintenance Districts Citizens' Oversight
Committee and management of the Districts and is not intended to be, and should not be, used by
anyone other than these specified parties.
Very truly yours,
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Brea, California
LANDSCAPE MAINTENANCE DISTRICTS
#2 VICTORIA,#4R TERRA VISTA,
#6R CARYN COMMUNITY,AND
#7 NORTH ETIWANDA
CITY OF RANCHO CUCAMONGA, CALIFORNIA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2017
LANDSCAPE MAINTENANCE DISTRICTS#2 VICTORIA,#4R TERRA VISTA,
#6R CARYN COMMUNITY,AND#7 NORTH ETIWANDA
CITY OF RANCHO CUCAMONGA, CALIFORNIA
YEAR ENDED JUNE 30,2017
TABLE OF CONTENTS
Page
Number
INDEPENDENT AUDITORS' REPORT............................................................................................... 1
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES....................................................................................................................3
NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
INFUND BALANCES....................................................................................................................4
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INDEPENDENT AUDITORS' REPORT
To the Planned Communities Citizen's Oversight Committee
City of Rancho Cucamonga, California
Report on the Statement of Revenues, Expenditures and Changes in Fund Balances
We have audited the accompanying statement of revenues, expenditures and changes in fund balances
of Landscape Maintenance Districts #2 Victoria, #4R Terra Vista, #6 Caryn Community and
#7 North Etiwanda of the City of Rancho Cucamonga (collectively, the Districts), for the year ended
June 30, 2017, and the related notes to the statement of revenues, expenditures and changes in fund
balances, as listed in the table of contents.
Management's Responsibility for the Statement of Revenues, Expenditures and Changes in Fund
Balances
Management is responsible for the preparation and fair presentation of the statement of revenues,
expenditures and changes in fund balances in accordance with accounting principles generally accepted
in the United States of America; this includes the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of the statement of revenues, expenditures and
changes in fund balances that are free from material misstatement,whether due to fraud or error.
Auditors'Responsibility
Our responsibility is to express opinions on the statement of revenues, expenditures and changes in fund
balances based on our audit. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and the State
Controller's Minimum Audit Requirements for California Special District. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the statement of revenues,
expenditures and changes in fund balances are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the statement of revenues, expenditures and changes in fund balances. The procedures selected depend
on the auditor's judgment, including the assessment of the risks of material misstatement of the statement
of revenues, expenditures and changes in fund balances, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity's preparation and fair
presentation of the statement of revenues, expenditures and changes in fund balances in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the statement of revenues, expenditures and changes in fund balances.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
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To the Planned Communities Citizen's Oversight Committee
City of Rancho Cucamonga, California
Opinions
In our opinion, the statement of revenues, expenditures and changes in fund balances referred to above
present fairly, in all material respects, the respective financial position of the revenues, expenditures and
changes in fund balances of Landscape Maintenance Districts #2 Victoria, #4R Terra Vista,
#6 Caryn Community and #7 North Etiwanda of the City of Rancho Cucamonga for the year then ended
June 30, 2017, in accordance with accounting principles generally accepted in the United States of
America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
January 29, 2018 on our consideration of the District's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District's internal control over
financial reporting and compliance.
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Brea, California
January 29, 2018
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LANDSCAPE MAINTENANCE DISTRICTS#2 VICTORIA,#411 TERRA VISTA,
#6R CARYN COMMUNITY,AND#7 NORTH ETIWANDA
CITY OF RANCHO CUCAMONGA
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2017
Landscape
Landscape Landscape Maintenance Landscape
Maintenance Maintenance District#6R Maintenance
District#2 District#4R Caryn District#7
Victoria Terra Vista Community North Etiwanda
Revenues:
Taxes $ 3,312,506 $ 2,884,665 $ 483,758 $ 942,746
Charges for services 2,862 1,085 - 2,804
Use of money and property 3,911 10,389 525 28,665
Contributions from City 276,640 - 31,880 50,000
Total Revenues 3,595,919 2,896,139 516,163 1,024,215
Expenditures:
Current:
Community development:
Personnel services 785,601 886,159 17,848 182,262
Operating costs:
Operations and maintenance 57,763 170,104 5,941 19,685
Contract services 1,143,559 485,364 194,020 303,953
Tree maintenance 130,560 71,365 27,000 7,090
Utilities 721,137 312,472 128,906 242,629
Assessment administration 34,870 22,990 7,020 15,430
General overhead allocation 269,020 213,750 32,490 82,860
Interfund allocation 70,000 - - -
Capital outlay 160,120 263,628 - -
Total Expenditures 3,372,630 2,425,832 413,225 853,909
Excess(Deficiency)of Revenues
Over(Under)Expenditures 223,289 470,307 102,938 170,306
Fund Balance,Beginning of Year 3,304,845 4,427,352 317,045 964,968
Fund Balance, End.of Year $ 3,528,134 $ 4,897,659 $ 419,983 $ 1,135,274
See Notes to Financial Statements 3
LANDSCAPE MAINTENANCE DISTRICTS#2 VICTORIA,#4R TERRA VISTA,
#6R CARYN COMMUNITY,AND#7 NORTH ETIWANDA
CITY OF RANCHO CUCAMONGA, CALIFORNIA
NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30,2017
Note 1: Description of the Reporting Entity
The City of Rancho Cucamonga was incorporated on November 30, 1977,under the laws of the
State of California and enjoys all the rights and privileges applicable to a General Law City. It is
governed by an elected five-member board.
The City of Rancho Cucamonga, California, has formed certain maintenance districts and
authorized the levy of assessments pursuant to the terms and provisions of the"Landscaping and
Lighting Act of 1972," being Division 15, Part 2 of the Streets and Highways Code of the
State of California (commencing with Section 22500). The City levies annual assessments to
finance the costs and expenses necessary for maintenance and improvements in each
assessment district.
The City cannot levy and collect annual assessments within an assessment district without
complying with the procedures specified in the Landscaping and Lighting Act of 1972. On an
annual basis,an Engineer's Report must be prepared for each assessment district which contains
a full and detailed description of the improvements and the proposed assessments upon
assessable lots and parcels of land within the district.
The City Council must also adopt a resolution of intention which:
• Declares the intention of the City Council to levy and collect assessments within the
assessment district for the fiscal year stated therein.
• Generally describes the existing and proposed improvements and any substantial
changes proposed to be made in existing improvements.
• Refers to the assessment district by its distinctive designation and indicates the general
location of the district.
• Refers to the Engineer's Report for a full and detailed description of the improvements,
the boundaries of the assessment district and any zones therein, and the proposed
assessments upon assessable lots and parcels of land within the district.
• Gives notice of the time and place for public hearing by the City Council on the levy of the
proposed assessment.
• States whether the assessment is proposed to increase from the previous year.
The improvements for the maintenance districts include,but are not limited to turf,ground cover,
planter beds,shrubs,plants and trees,landscape lighting,irrigation systems,electrical energy for
irrigation controllers, hardscapes, entry signs, sound walls, and all associated appurtenant
facilities.A description of the specific improvements to be maintained and serviced within each
assessment district is set forth in the Annual Engineer's Report. Maintenance may include the
furnishing of services and materials for the ordinary and usual maintenance, operation, and
servicing of any improvement, including repair, removal,or replacement of all or any part of any
improvement; providing for the life, growth, health, and beauty of landscaping, including
cultivation,irrigation,trimming,spraying,fertilizing,or treating for disease or injury;the removal of
trimmings,rubbish,debris,and other solid waste;the cleaning,sandblasting,and painting of walls
and other improvements to remove or cover graffiti.Service may include the furnishing of electric
current or energy, gas, or other illuminating agent for the lighting or operation of any
improvements;and water for the irrigation of any landscaping,the operation of any fountains,or
the maintenance of any other improvements.
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LANDSCAPE MAINTENANCE DISTRICTS#2 VICTORIA,#4R TERRA VISTA,
#6R CARYN COMMUNITY,AND#7 NORTH ETIWANDA
CITY OF RANCHO CUCAMONGA,CALIFORNIA
NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
(CONTINUED)
FOR THE YEAR ENDED JUNE 30,2017
Note 1: Description of the Reporting Entity(Continued)
The accompanying statement of revenues,expenditures and changes in fund balances contains
information relative only to the Landscape Maintenance Districts#2 Victoria, #4R Terra Vista,
#6R Caryn Community,and#7 North Etiwanda of the City of Rancho Cucamonga,which are an
integral part of the City of Rancho Cucamonga.
Victoria Neighborhood Parks and Landscape Maintenance District(LMD 2)was formed in
1982 and consists of 5,890 single family homes, 592 condominiums, 589 multi-family units,
42.33 acres of commercialfindustrial, 70.27 acres of public service parcels, and 36.99 acres of
vacant land,six parks,and trails.On June 5,2013,a Proposition 218 ballot proceeding was held
and residents approved a rate increase.The assessment rates are as follows:
Fiscal Year Fiscal Year Percentage
2016/17 2017/18 Change
Single family home $ 476.19 $ 489.17 2.73%
Condominium unit 350.65 360.21 2.73%
Multi-family unit 333.33 342.42 2.73%
Commerciallndustrial parcel per acre 2,251.08 2,312.44 2.73%
Public service parcel per acre 129.87 133.41 2.73%
Undeveloped parcel per acre 95.24 97.83 2.73%
Landscape Maintenance District No.4R (LMD 4R)was formed in 1984 and consists of
2,652 single family homes, 1,227 condominiums, 3,809 multi-family, 35.41 acres of schools,
177.60 acres of commercial/industrial,and 75.68 acres of vacant land.On December 2,2009,a
Proposition 218 ballot proceeding was held and residents approved a rate increase. The
assessment rates are as follows:
Fiscal Year Fiscal Year Percentage
2016/17 2017/18 Change
Single family home $ 418.05 $ 397.15 -5.00%
Condominium unit 334.44 317.72 -5.00%
Multi-family unit 292.64 278.01 -5.00%
Commercial/industrial parcel per acre 1,358.66 1,290.74 -5.00%
Undeveloped parcel per acre 104.51 99.29 -5.00%
School parcel per acre 104.51 99.29 -5.00%
Landscape Maintenance District No.6R(LMD 6R) was formed in 1986 and consists of
963 single family homes in Zone 1,310 single family homes in Zone 2,5.35 acres of schools,and
0.54 acres of vacant land. On September 1,2010,a Proposition 218 ballot proceeding was held
and residents approved a rate increase. The assessment rates are as follows:
Fiscal Year Fiscal Year Percentage
2016/17 2017/18 Change
Single family home-Zone 1 $ 402.65 $ 413.57 2.71%
Single family home-Zone 2 301.99 310.18 2.71%
School parcel per acre 100.66 103.39 2.71%
Undeveloped parcel per acre 100.66 103.39 2.71%
5
LANDSCAPE MAINTENANCE DISTRICTS#2 VICTORIA,#411 TERRA VISTA,
#611 CARYN COMMUNITY,AND#7 NORTH ETIWANDA
CITY OF RANCHO CUCAMONGA,CALIFORNIA
NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
(CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2017
Note 1: Description of the Reporting Entity(Continued)
Landscape Maintenance District No.7(LMD 7)was formed in 1989 and currently consists of
3,073 single family homes.The assessment rates are as follows:
Fiscal Year Fiscal Year Percentage
2016/17 2017/18 Change
Single family home $ 307.05 $ 307.05 0.00%
Note 2: Measurement Focus, Basis of Accounting and Financial Statement Presentation
The statement of revenues,expenditures and fund balances is reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available. Revenues are considered to be
available when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the government considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period. Expenditures
are generally recorded when a liability is incurred, as under accrual accounting. However,debt
service expenditures,as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Assessment Revenue
Assessment revenue is recognized on the modified accrual basis,that is,in the fiscal year for
which the assessments have been levied providing they become available.Available means
then due,or past due and receivable within the current period and collected within the current
period or expected to be collected soon enough thereafter to be used to pay liabilities of the
current period.The County of San Bernardino collects the assessments for the Landscape
Maintenance Districts.Assessment liens attach annually as of 12:01 A.M.on the first day in
January proceeding the fiscal year for which the assessments are levied.Assessments are
levied on real property as it exists on that date.The assessment levy covers the fiscal period
July 1 to June 30. One-half of the assessment is due November 1; the second half of the
assessment is due February 1. All assessments are delinquent if unpaid on December 10
and April 10, respectively.
Fund Type
All of the funds included in this report are accounted for in the City's financial records as
special revenue funds.Special revenue funds account for and report the proceeds of specific
revenue sources that are restricted or committed to expenditures for specified purposes.
Special revenue funds are designed to help determine and demonstrate resources that must
be used for a specified purpose are, in fact, used for that purpose.
6
a
.p D
CITY OF RANCHO CUCAMONGA
STAFF REPORT
PLANNED COMMUNITIES CITIZENS' OVERSIGHT COMMITTEE
DATE: March 21, 2018
TO: Mayor and Members of the City Council
FROM: Planned Communities Citizens' Oversight Committe
BY: Lori Sassoon, Deputy City Manager/Administraf rvices
SUBJECT: SUMMARY OF REVIEW OF RESULTS OF L INDEPENDENT AUDIT
CONCERNING FY 2016/17 EXPENDIT MDs 2 (VICTORIA), 4
(TERRA VISTA), 6 (CARYN), AND 7 ETI A)
RECOMMENDATION:
It is recommended that the City Council receive idle this re
BACKGROUND:
In 2013, during the public engage cess rega the Victoria Park and Landscape
Maintenance District (LMD 2), fiscal and acc ility were the theme of many
discussions. To that end, when propert n ved n es in LMD 2 in June 2013, as
part of that action a Citizens' Oversight mitte stab by the City Council. The
purpose of this Committee meet a Ily n ual audit after it is prepared,
and confirm that the re ved fro sessm : were spent appropriately. The
Committee has neith getary peratio ecision-making authority, nor the authority to
allocate financial r es or dire aff.
As established in Res 1 i is made up of at least five members of the
public wl a le en yea and own property within any LMD under the
oversig itte March of 201 , the Council adopted an additional resolution
ame a scop a ittee to add LMD 4-R (Terra Vista) and LMD 6-R (Caryn
Coil ities). This ch was a in recognition that property owners in these districts had
also ved new rates in th t several years. On November 17, 2015, City Council
elected lude LMD 7 ( h Etiw nda) to the purview of the Committee. The City Council
determine LMD 7 is a nned community facing fiscal challenges and could benefit from
this Committ view an dback.
ANALYSIS:
At our meeting of Mar 6, 2018, Finance Director Tamara Layne and a representative from the
accounting firm of Lance, Soll & Lunghard LLP provided an overview of the audit for these LMDs
for FY 2016/17. The reports generated by the audit include:
o Audit Communication Letter(Attachment A)
o Independent Auditors'Report on Statement of Revenues, Expenditures, and Changes in Fund
Balance (Attachment B)
o Independent Auditors'Report on Internal Control Over Financial Reporting (Attachment C)
Page 1 of 2
SUMMARY OF REVIEW OF RESULTS OF ANNUAL INDEPENDENT AUDIT CONCERNING FY
2016/17 EXPENDITURES IN LMDS 2 (VICTORIA),4(TERRA VISTA), 6(CARYN),AND 7
(NORTH ETIWANDA)
MARCH 6, 2018
It was noted that in accordance with the law, each of these LMDs accounts for its own revenue
and expenditures in its own funds. The auditor reviewed their work and a discussion was held
regarding the audit process, and how the City ensures that funds collected for LMD maintenance
and operations are spent to the benefit of each LMD. The auditors and City Finance staff
confirmed that the revenues received have been expended appropriately on maintenance,
operations, and capital improvements in each of these districts.
We appreciate the opportunity to serve our community on this Committee. If you have any
questions regarding our annual meeting, members of the Committe "II be present at the City
Council meeting to present this report and discuss those question you.
FISCAL IMPACT:
N/A
COUNCIL GOAL(S) ADDRESSED:
N/A
ATTACHMENTS:
N/A
IV
Page 2 of 2
CITY OF RANCHO CUCAMONGA
STAFF REPORT
"fPLANNED COMMUNITIES CITIZENS' OVERSIGHT COMMITTEE
DATE: March 6, 2018
TO: Planned Communities Citizens' Oversight Committee
FROM: William Wittkopf, Public Works Services Director
Lori Sassoon, Deputy City Manager/Administrative Services
SUBJECT: REVIEW THE HIRING OF A NEW MAINTENANCE COORDINATOR TO
OVERSEE LANDSCAPE MAINTENANCE CONTRACTS, TRAILS,
PESTICIDE APPLICATIONS, AND WATER MANAGEMENT THROUGHOUT
THE PLANNED COMMUNITIES' DISTRICTS
RECOMMENDATION:
It is recommended that the Planned Communities Citizens' Oversight Committee receive this
information and support hiring a new Maintenance Coordinator position. This position will oversee
landscape maintenance contracts, trail maintenance, pesticide applications, and water
management in ten (10) Landscape Maintenance Districts, concentrating on the planned
communities of the city.
BACKGROUND:
Historically, the city had two (2) Maintenance Coordinators who were responsible for contract
oversight and compliance for the city's 10 Landscape Maintenance Districts (LMD's). In 2008, the
position was eliminated due to staffing changes. As the country and city were approaching the
Great Recession, the decision was made to keep the position vacant. In addition, the city and
property owners were working together to resolve LMD funding issues because of Proposition
218, commonly known as The Right to Vote on Taxes Act. Leaving the position vacant at that
time was the fiscally responsible course of action. However, it is now time to fill this much needed
position to ensure contract compliance, manage water usage and landscape renovations, address
issues generated by an aging landscape infrastructure, new construction, the drought, resident
expectations, and the scope, size, and complexity of our landscape maintenance contracts. This
position will have the shared responsibility of overseeing three (3) landscape maintenance
contractors and five (5) contracts consisting of over 15,000,000 square feet of turf, hardscape,
and planters with annual contract amounts approaching 3 million dollars.
ANALYSIS:
By filling this position, Public Works will be able to redistribute the workload of the existing
Maintenance Coordinator who is currently providing oversight for all landscape contracts city
wide. The incumbent Maintenance Coordinator does not have the capacity to inspect all the
landscape sights as needed due to the size and complexity of the City's landscape districts. It is
important to note this position is fully funded and approved in the current budget.The Maintenance
Coordinator works directly with the landscape maintenance contractors to ensure all maintenance
activities are completed in accordance with the bid specifications. Restoring this key position will
result in improved contract accountability as the Maintenance Coordinator will conduct physical
site inspections with the contractor verifying work activities and quality. This position will closely
Page 1 of 2
PLANNED COMMUNITIES CITIZENS' OVERSIGHT COMMITTEE STAFF REPORT
HIRING OF LANDSCAPE MAINTENANCE COORDINATOR
MARCH 6, 2018
manage water usage providing oversight and direction in setting water budgets, ensuring proper
scheduling, and performance of the city wide central irrigation system. Having an additional
Maintenance Coordinator will also improve customer service by reducing response time to
resident requests. This new position will also allow for project management of renovation and
drought tolerant projects that have been placed on hold within the Landscape Maintenance
Districts due to a lack of staff oversight.
FISCAL IMPACT:
This position was approved by the City Council as part of the FY 17/18 budget adoption. No
additional funding is required to fill this vacancy. Funding will be shared by the General Fund and
eight(8) Landscape Maintenance Districts: General Fund-4%, LIVID 1-1%, LIVID 2-30%, LIVID 313-
8%, LIVID 4R-32%, LIVID 7-10%, LIVID 9-10%, LIVID 10-5% at a total cost of$91,860.
COUNCIL GOAL(S) ADDRESSED:
N/A
ATTACHMENTS:
N/A
Page 2 of 2