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Home My WebLink About2020/04/14 - Agenda Packet - Community Parks and Landscape Citizens' Oversight CommitteeMayor L. Dennis Michael I Mayor Pro Tern Lynne B. Kennedy Council Members Ryan A. Hutchison, Kristine D. Scott, Sam 5pagnolo City Manager John R. Gillison 10500 Civic Center Drive I Rancho Cucamonga, CA 91730 1909.477.2700 1 www.CityofRC.us AGENDA COMMUNITY PARKS & LANDSCAPE CITIZENS' OVERSIGHT COMMITTEE Tuesday, April 14, 2020 Pursuant to Governor Newsom's Executive Order N-25-20, members of the Community Parks & Landscape Citizens' Oversight Committee or staff will be participating in this meeting via a teleconference. In the interest of maintaining appropriate social distancing, members of the public will participate in the meeting remotely, either telephonically or electronically. Members of the public can observe and offer comment at this meeting remotely by dialing (669) 900-6833, meeting code 502-203-325, or electronically via https://zoom.us/i/502203325. If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act ("ADA"), please contact Melinda Garcia at Mel inda.GarciaCa_CityofRC.us or (909) 774-2402, at least 48-hours prior to the meeting for assistance. A. 6:00 P.M. -CALL TO ORDER Al. Pledge of Allegiance A2. Roll Call: David DeMauro Karen Hruby Jaime Garcia Theresa Marji Denise Garzaro April McAllister Velma Gilbert Lisa Morgan-Perales Otis Greer Dave Terry A3. Approval of Minutes: October 29, 2019 February 29, 2020 March 17, 2020 B. PUBLIC COMMUNICATIONS This is the time and place for the general public to address the Community Parks & Landscape 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 three minutes per individual. Community Parks & Landscape Citizens' Oversight Committee Agenda April 14, 2020 Page 2 C. ITEMS FOR DISCUSSION C1. Review and Discussion of Annual Independent Auditors' Report Page 8-26 C2. Review and Approval of Annual Written Report to the City Council Page 27-28 C3. Review and Discussion of Trail Bridge Project Staff Report Page 29-53 C4. Community Parks and Landscape Committee Updates D. ADJOURNMENT 7 I, Melinda Garcia, Executive Assistant of the City of Rancho Cucamonga, hereby certify that a true, accurate copy of the foregoing agenda was posted on April 8, 2020 at 5:30pm per Government Code Section 54954.2 at 10500 Civic Center Drive, Rancho Cucamonga, CA 91730. Melinda Garcia Page 3 CITY OF RANCHO CUCAMONGA COMMUNITY PARKS AND LANDSCAPE CITIZENS' OVERSIGHT COMMITTEE MEETING MINUTES IF A. CALL TO ORDER - CITY HALL - TRI-COMMUNITIES ROOM The City of Rancho Cucamonga Community Parks and Landscape Citizens' Oversight Committee held a meeting on Tuesday, October 29, 2019 at the Rancho Cucamonga City Hall, Tri- Communities Room, 10500 Civic Center Drive, Rancho Cucamonga, California. Finance Manager Noah Daniels called the meeting to order at 6:00 p.m. Al. Pledge of Allegiance: Led by Otis Greer A2. Roll Call: Present Committee Members: David DeMauro, Jaime Garcia, Denise Garzaro, Velma Gilbert, Otis Greer, Karen Hruby, April McAllaster, Lisa Morgan-Perales, Pete Peterson, and Dave Terry Absent Committee Member: Theresa Marji Staff Present: Janice Reynolds, City Clerk; Linda Troyan, City Clerk Services Director; Lori Sassoon, Deputy City Manager; Tamara Layne, Finance Director; Bill Wittkopf, Public Works Services Director; Noah Daniels, Finance Manager; and Kelly Guerra, Special Districts Analyst. A3. Approval of Minutes: Former West -Side Committee Members: David DeMauro motioned to approve the minutes from the meeting of March 18, 2019. The motion was seconded by Committee Member Garzaro and was unanimously approved by the former West -Side Committee. Former Planned Communities Committee Members: Jaime Garcia motioned to approve the minutes from the meetings of March 25, 2019. The motion was seconded by Committee Member Greer and was unanimously approved by the former Planned Communities Committee. IF-- B. PUBLIC COMMUNICATIONS B1. No public communications were made. IF-- C. ITEM(S) OF DISCUSSION Cl. Swearing -in of Committee Members Finance Manager Daniels introduced the staff and City Clerk Reynolds and City Clerk Services Director Troyan. All the Committee Members except for Theresa Marji; were sworn into office simultaneously. Page 4 COMMUNITY PARKS AND LANDSCAPE CITIZENS' OVERSIGHT COMMITTEE MEETING MINUTES OCTOBER 29, 2019 PAGE 2 C2. Election of Committee Chair and Vice -Chair Finance Manager Daniels recommended that item C2 be moved to item C6 to allow the Committee Members an opportunity to introduce each other. All Committee Members unanimously approved. C3. Committee Member Introduction The introduction began with Finance Manager Daniels explaining the introductory activity of writing two truths and one lie on the 3x5 cards provided for them to share with the rest of the Committee. Also, the Committee's names were written on post -its and placed on a map of the City to illustrate where each Committee member lives amongst the districts visually. C4. Discussion of Committee Role Deputy City Manager Sassoon and Finance Manager Daniels provided an overview of the Committee's role and duties outlined in an informational packet provided to Committee Members. The information packet included Resolution 19-075 and the accompanying staff report for the formation of the Community Parks and Landscape Committee Staff Report by the City Council; a Fact Sheet created by the former West -Side Citizens' Oversight Committee; the Fiscal Year 2017/18 Audit Report for the former Planned Communities Citizens' Oversight Committee; the Fiscal Year 2017/18 Audit Report for the former West -Side Citizens' Oversight Committee; a map of the districts and assessment rates; published district newsletters; survey questions and results from community outreached performed by the former West -Side Citizens' Oversight Committee; and the term limits for the Community Parks and Landscape Citizens' Oversight Committee. All the questions and concerns from the Committee Members were addressed by the City staff. C5. Overview of Special Districts As an introduction to Special Districts, a PowerPoint presentation was given to the Committee Members by Finance Manager Daniels and Public Works Services Director Wittkopf. Finance Manager Daniels discussed the history, assessment rates, and the impacts of Proposition 218 concerning the financial status of the districts. Public Works Services Director Wittkopf reviewed how each district is maintained, the service levels, and the cost increases and saving measures for each district. All the questions and concerns by the Committee Members were addressed by the City staff. C6. Election of Committee Chair and Vice -Chair Committee Member Greer motioned for Committee Member Garcia to be the Chair of the Committee. The motion unanimously approved by the Committee. Committee Member DeMauro motioned for Committee Member Garzaro to be the Vice -Chair. The motion was unanimously approved by the Committee. Page 5 COMMUNITY PARKS AND LANDSCAPE CITIZENS' OVERSIGHT COMMITTEE MEETING MINUTES OCTOBER 29, 2019 PAGE 3 11 D. ADJOURNMENT Chair Garcia motioned to adjourn the meeting. The motion was seconded by Committee Member Vice -Chair Garzaro. The meeting adjourned at 7.50 p.m. Respectfully submitted, Jaime Garcia, Chair Date: Page 6 CITY OF RANCHO CUCAMONGA COMMUNITY PARKS AND LANDSCAPE CITIZENS' OVERSIGHT COMMITTEE MEETING MINUTES A. CALL TO ORDER - PUBLIC WORKS SERVICE CENTER The City of Rancho Cucamonga Community Parks and Landscape Citizens' Oversight Committee held a meeting on Saturday, February 29, 2020 at the Rancho Cucamonga City Yard, Lobby Conference Room, 8794 Lion Street, Rancho Cucamonga, California. Finance Manager Noah Daniels called the meeting to order at 8:00 a.m. Al. Pledge of Allegiance: Led by Denise Garzaro A2. Roll Call: Present Committee Members: David DeMauro, Denise Garzaro, Velma Gilbert, Karen Hruby, April McAllaster, and Dave Terry Absent Committee Member: Jaime Garcia, Otis Greer, Theresa Marji, and Lisa Morgan-Perales. Staff Present: Bill Wittkopf, Public Works Services Director and Noah Daniels, Finance Manager; A3. Tour around City Public Works Services Director Wittkopf and Finance Manager Noah Daniels led Committee Members on a tour of various district parks at 8:10 a.m. The parks that were visited were Old Town Park, Coyote Canyon Park, Windrows Park, Heritage Park, Confluence Park Trail Rest, and Los Amigos Park. B. PUBLIC COMMUNICATIONS B1. No public communications were made. C. ITEM(S) OF DISCUSSION Cl. No items for Discussion. D. ADJOURNMENT Committee Member Hruby motioned to adjourn the meeting. The motion was seconded by Committee Member Terry. The meeting adjourned at 10:50 a.m. Respectfully submitted, Denise Garzaro, Vice -Chair Date: Page 7 CITY OF RANCHO CUCAMONGA MARCH 17, 2020 COMMUNITY PARKS AND LANDSCAPE CITIZENS' OVERSIGHT COMMITTEE MEETING MINUTES A. CALL TO ORDER - CITY HALL - TRI-COMMUNITIES ROOM The Regular meeting of the Community Parks and Landscape Citizens' Oversight Committee was scheduled on Tuesday, March 17, 2020 at the Rancho Cucamonga City Hall, Tri-Communities Room, 10500 Civic Center Drive, Rancho Cucamonga, California. Al. Pledge of Allegiance: A2. Roll Call: A3. Approval of Minutes: B. PUBLIC COMMUNICATIONS B1. No public communications were made. C. ITEM(S) OF DISCUSSION Cl. Review and Discussion of Annual Independent Auditors' Report C2. Review and Approval of Annual Written Report to the City Council C3. Review and Discussion of Trail Bridge Project Staff Report C4. Community Parks and Landscape Committee Updates D. ADJOURNMENT Due to lack of quorum, Finance Manager Noah Daniels adjourned the meeting at 6:02 p.m. Respectfully submitted, Noah Daniels, Finance Manager Date: Page 8 DATE: March 17, 2020 TO: Community Parks and Landscape Citizens' Oversight Committee FROM: Lori Sassoon, Deputy City Manager/Administrative Services BY: Noah Daniels, Finance Manager SUBJECT: SUMMARY OF FISCAL YEAR 2018/19 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE DISTRICTS. iTsgKC]30111"a Established by Resolution No. 19-075, the Community Parks and Landscape Citizens' Oversight Committee's core purpose is to review the annual financial audit of the Districts after it is completed and report the results of its review to the City Council and the community. The Committee accomplishes this task by reviewing the results of the audit with City staff and the the City's independent auditors, including matters required to be communicated to the Committee under generally accepted auditing standards. The purpose of an audit is for the auditor to provide an opinion on whether the financial statements are presented accurately and are in accordance with the applicable financial reporting framework. In other words, the auditor's purpose is to provide a degree of confidence in the financial statements. As the basis for the auditor's opinion, the auditor must obtain a high level of assurance that the financial statements are free from a material error by obtaining sufficient audit evidence. Audit evidence includes both information contained in accounting records underlying the financial statements and other information and is measured by both the quantity and quality. The Committee has neither budgetary or operational decision -making authority, nor the authority to allocate financial resources or direct staff. ANALYSIS: While the Committee is not directly involved with the audit or the examination of accounting records, the Committee's responsibility is to provide community oversight of the financial reporting process. At the meeting, dialogue with the auditors and City staff are encouraged so that you can learn more about the audit process and the financial reports. The Statement of Revenues, Expenditures and Changes in Fund Balances for the Fiscal Year Ended June 30, 2019, report the operating results for the Districts. In summary, the Districts reported positive changes in fund balance for the reporting period, and the following are some highlights to accompany the report: • The City's General Fund contributed, through a general benefit equivalent as described in Note 3, $135,820 to LMD #1 General City; $60,370 to LMD #6R Caryn Community; $188,420 to SLD #2 Residential; and $214,250 to PD-85. Unlike the general benefit contribution of $299,540 to LMD #2 Victoria, which is required by the measure that was approved by the property owners, the general benefit equivalent is set by City Council policy to provide a level Page 1 of 2 Page 9 of assistance a district that lacks sufficient financial resources. However, these general benefit equivalent contributions are limited by Council policy so that there is general equity across the districts. In the instance of LMD #1 General City and PD-85, where there are service level reductions, the general benefit equivalent provides for the funding to build reserves for maintenance and capital projects. It also funds the operation of the PD-85 Red Hill Water Feature in its entirety, which is seen as a community -wide amenity. • Use of Money and Property includes interest earnings and other rental or lease income, but also unrealized gains that are the result of a temporary adjustment in the value of the investment portfolio to market value at the end of the fiscal year. There could be unrealized losses or gains for any reporting period, but there is no actual gain or loss unless the investment is sold before it matures. These temporary adjustments contribute to the bottom -line of the Districts and account for the following increased revenues: $26,393 in LMD #1 General City; $71,980 in LMD #2 Victoria; $100,855 in LMD #4R Terra Vista; $10,241 in LMD #6R Caryn Community; $22,774 in LMD #7 North Etiwanda; $13,654 in SLD #2 Residential; and $33,968 in PD-85. Unfortunately, a portion of the positive net change in fund balances in LMD #2 Victoria and LMD #4R Terra Vista is due to unacceptable work from the primary landscape contractor. As a result, the City has withheld payments to the vendor until the work is completed to an "A" level of service. Consequently, funds that were budgeted were not spent, and the assessment revenues collected have been retained in the district's fund balance for payment at a later time. City staff expects as a result of this unanticipated savings, that assessment rates will remain unchanged for Fiscal Year 2020/21. SLD #2 Residential reports a negative fund balance for Fiscal Year 2018/19 as a result of the interfund loan advance from the City's General Fund for the purchase of the street lights from SCE several years ago. The outstanding balance of the interfund loan advance at June 30, 2019, is $3,913,622, which decreases the overall financial position of the district; however, the purchase of the streetlights and installation of the LED lighting has significantly decreased the operating expenditures of the district. As illustrated in the report, the district's annual revenues were more than sufficient to cover the annual expenditures. As a result of budget balancing measures over the past several years, there is growth in the fund balances of LMD #1 General City and PD-85. However, the fund balances are still being closely monitored as the general benefit equivalent contributions from the City's General Fund still make up a significant portion of the positive increases to fund balances. Due to service reductions and contributions from the City, these districts have been able to slowly establish a capital replacement reserve for emergency repairs and long-term capital maintenance. However, at the rate in which these reserves grow, any large capital expenditure or significant increases in operating costs could quickly deplete the reserves. Not reflected in the financial statements is an extensive list of deferred maintenance and capital repairs. These items will ultimately result in a significant costs, likely in the millions, that these districts are currently financially incapable of providing. Thus, any significant expenditure must be cafefully evaluated on a case by case basis. Page 2 of 2 Page 10 LSU19 !o• 10*• 99 December 9, 2019 To the Community Parks and Landscape Citizens' Oversight Committee City of Rancho Cucamonga, California We have audited the statement of revenues, expenditures and changes in fund balances of Landscape Maintenance Districts #1 General City, #2 Victoria, #4R Terra Vista, #6R Caryn Community, and #7 North Etiwanda, Street Lighting District #2 Residential, and Park and Recreation Improvement District #85 (collectively, the Districts) of the City of Rancho Cucamonga for the year ended June 30, 2019. 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 July 16, 2019. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings 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 statement of revenues, expenditures and changes in fund balances. 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 2018/19. 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 statement of revenues, expenditures and changes in fund balances in the proper period. The statement of revenues, expenditures and changes in fund balances 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. o5 PrimeGlobal Page 11 LSL:::: To the Community Parks and Landscape Citizens' Oversight Committee City of Rancho Cucamonga, California 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 statement of revenues, expenditures and changes in fund balances or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 9, 2019. 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' 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 New Accounting Standards The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for Fiscal Year 2018/19 audit: GASB Statement No. 83, Certain Assets Retirement Obligations. GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowing and Direct Placements. 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 2019/20 GASB Statement No. 84, Fiduciary Activities. GASB Statement No. 90, Majority Equity Interests - an Amendment of GASB Statement Nos. 14 and 61. Fiscal Year 2020/21 GASB Statement No. 87, Leases. Page 12 LSL:::: To the Community Parks and Landscape Citizens' Oversight Committee City of Rancho Cucamonga, California GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. Fiscal Year 2021/22 GASB Statement No. 91, Conduit Debt Obligations. Restriction on Use This information is intended solely for the use of the Community Parks and Landscape 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, �� Brea, California LS Goo LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2 VICTORIA, #4R TERRA VISTA, #6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA, STREET LIGHTING DISTRICT #2 RESIDENTIAL, AND PARK AND RECREATION IMPROVEMENT DISTRICT #85 CITY OF RANCHO CUCAMONGA, CALIFORNIA STATEMENT OF REVENUES, EXPENDITURES YEAR ENDED JUNE 30, 2019 AND CHANGES IN FUND BALANCES Focused on YOU __`jd Page 14 LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2 VICTORIA, #4R TERRA VISTA, #6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA, STREET LIGHTING DISTRICT #2 RESIDENTIAL, AND PARK AND RECREATION IMPROVEMENT DISTRICT #85 CITY OF RANCHO CUCAMONGA, CALIFORNIA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2019 Page 15 LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2 VICTORIA, #4R TERRA VISTA, #6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA, STREET LIGHTING DISTRICT #2 RESIDENTIAL, AND PARK AND RECREATION IMPROVEMENT DISTRICT #85 CITY OF RANCHO CUCAMONGA, CALIFORNIA YEAR ENDED JUNE 30, 2019 TABLE OF CONTENTS Page Number INDEPENDENT AUDITORS' REPORT............................................................................................... 1 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES................................................................ NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES........................................................................................................ Page 16 LSUI* sii 10*! !! INDEPENDENT AUDITORS' REPORT To the Community Parks and Landscape Citizens' 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 #1 General City, #2 Victoria, #4R Terra Vista, #6R Caryn Community, and #7 North Etiwanda, Street Lighting District #2 Residential, and Park and Recreation Improvement District #85 of the City of Rancho Cucamonga (collectively, the Districts), for the year ended June 30, 2019, and the related notes to 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 Districts' 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 Districts' 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. C PrimeGlobal lnrlepandn�it drwuretlrty Ptrm4 Page 17 LSL7000 To the Community Parks and Landscape Citizens' 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 #1 General City, #2 Victoria, #4R Terra Vista, #6R Caryn Community, and #7 North Etiwanda, Street Lighting District #2 Residential, and Park and Recreation Improvement District #85 of the City of Rancho Cucamonga for the year ended June 30, 2019, 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 December 9, 2019 on our consideration of the Districts' 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 Districts' internal control over financial reporting and compliance. Brea, California December 9, 2019 2 Page 18 LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2 VICTORIA, #4111 TERRA VISTA, #6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA, STREET LIGHTING DISTRICT #2 RESIDENTIAL, AND PARK AND RECREATION IMPROVEMENT DISTRICT #85 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2019 Landscape Landscape Landscape Landscape Maintenance Maintenance Maintenance Maintenance District #6R District #1 District #2 District #4R Terra Caryn General City Victoria Vista Community Revenues: Taxes $ 1,247,026 $ 3,525,898 $ 2,740,411 $ 511,315 Charges for services 13,635 820 445 - Use of money and property 86,817 140,596 205,682 20,880 Contributions from City General benefit contribution General benefit equivalent Miscellaneous Total Revenues Expenditures: Personnel services Operating costs: Operations and maintenance Contract services Tree maintenance Utilities Assessment administration Interfund allocation General overhead allocation Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year - 299,540 135,820 - 20 16,876 - 60,370 10,100 - 1,483,318 3,983,730 2,956,638 592,565 28,899 774,380 893,188 15,973 91,073 253,393 62,964 7,139 547,579 999,135 365,620 226,392 52,500 163,192 74,970 34,850 366,181 763,021 342,899 141,174 56,230 31,390 18,770 5,980 - 78,000 - - 46,370 280,010 228,600 33,350 66,738 84,731 24,269 - 464,858 2,011,280 1,255,570 3,427,252 227,748 556,478 945,358 127,707 1,571,579 3,691,489 5,654,713 550,532 $ 1,799,327 $ 4,247,967 $ 6,600,071 $ 678,239 See Notes to Statement of Revenues, Expenditures and Changes in Fund Balances 3 Page 19 LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2 VICTORIA, #4R TERRA VISTA, #6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA, STREET LIGHTING DISTRICT #2 RESIDENTIAL, AND PARK AND RECREATION IMPROVEMENT DISTRICT #85 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2019 Revenues: Taxes Charges for services Use of money and property Contributions from City General benefit contribution General benefit equivalent Miscellaneous Total Revenues Expenditures: Personnel services Operating costs: Operations and maintenance Contract services Tree maintenance Utilities Assessment administration Interfund allocation General overhead allocation Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Landscape Park and Maintenance Street Lighting Recreation District #7 District #2 Improvement North Etiwanda Residential District #85 $ 950,706 $ 375,689 $ 1,164,316 4,474 - 23,652 90,571 13,654 197,009 - 188,420 214,250 36,870 215,424 - 1,082,621 793,187 1,599,227 187,330 - 181,080 15,283 90,663 50,684 351,517 2,937 304,373 25,090 - 3,167 267,208 204,416 275,970 14,430 34,070 129,370 89,410 2,540 45,890 - 1,120 29,860 - 215,938 - - 40,264 - 950,268 591,948 1,020,394 132,353 201,239 578,833 1,262,012 (3,519,030) 1,893,025 $ 1,394,365 $ (3,317,791) $ 2,471,858 See Notes to Statement of Revenues, Expenditures and Changes in Fund Balances 4 Page 20 LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2 VICTORIA, #4R TERRA VISTA, #6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA, STREET LIGHTING DISTRICT #2 RESIDENTIAL, AND PARK AND RECREATION IMPROVEMENT DISTRICT #85 CITY OF RANCHO CUCAMONGA, CALIFORNIA NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2019 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 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 5 Page 21 LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2 VICTORIA, #4R TERRA VISTA, #6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA, STREET LIGHTING DISTRICT #2 RESIDENTIAL, AND PARK AND RECREATION IMPROVEMENT DISTRICT #85 CITY OF RANCHO CUCAMONGA, CALIFORNIA NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2019 Note 1: Description of the Reporting Entity (Continued) 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. The accompanying statement of revenues, expenditures and changes in fund balances contains information relative only to the Landscape Maintenance Districts #1 General City, #2 Victoria, #4R Terra Vista, #6R Caryn Community, and #7 North Etiwanda, Street Lighting District #2 Residential, and Park and Recreation Improvement District #85 of the City of Rancho Cucamonga, which are an integral part of the City of Rancho Cucamonga. Landscape Maintenance District No. 1 General City (LMD 1) was formed in 1979 and consists of 8,338 single family homes, 10,282 multi -family units, and 8.83 acres of vacant land, seven parks, and trails. Landscape improvements provided in LMD 1 may include, but are not limited to: turf, ground cover, shrubs and trees, sprinkler and irrigation systems, ornamental lighting, drainage systems, masonry walls, entryway monuments, and associated appurtenances. These improvements include all necessary services; operations; administration; and maintenance required to keep the abovementioned improvements in healthy, vigorous, and satisfactory working condition. The assessment rates are as follows: Fiscal Year Fiscal Year Percentage 2018/19 2019/20 Change Single family home $ 92.21 $ 92.21 0.00% Condominium unit 46.11 46.11 0.00% Multi -family unit 46.11 46.11 0.00% Commercial/industrial parcel per acre 184.42 184.42 0.00% 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 commercial/industrial, 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: Single family home Condominium unit Multi -family unit Commercial/industrial parcel per acre Public service parcel per acre Undeveloped parcel per acre 2018/19 2019/20 Change $ 503.80 $ 503.80 0.00% 370.98 370.98 0.00% 352.66 352.66 0.00% 2,381.60 2,381.60 0.00% 137.40 137.40 0.00% 100.76 100.76 0.00% 0 Page 22 LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2 VICTORIA, #4R TERRA VISTA, #6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA, STREET LIGHTING DISTRICT #2 RESIDENTIAL, AND PARK AND RECREATION IMPROVEMENT DISTRICT #85 CITY OF RANCHO CUCAMONGA, CALIFORNIA NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2019 Note 1: Description of the Reporting Entity (Continued) Landscape Maintenance District No. 4R Terra Vista (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, 176.41 acres of commercial/industrial, and 75.79 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: Single family home Condominium unit Multi -family unit Commercial/industrial parcel per acre Undeveloped parcel per acre School parcel per acre Fiscal Year Fiscal Year Percentage 2018/19 2019/20 Change $ 397.15 $ 397.15 0.00% 317.72 317.72 0.00% 278.01 278.01 0.00% 1,290.74 1,290.74 0.00% 99.29 99.29 0.00% 99.29 99.29 0.00% Landscape Maintenance District No. 6R Caryn Community (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 2018/19 2019/20 Change Single family home - Zone 1 $ 425.97 $ 438.75 3.00% Single family home - Zone 2 319.48 329.06 3.00% School parcel per acre 106.49 109.69 3.00% Undeveloped parcel per acre 106.49 109.69 3.00% Landscape Maintenance District No. 7 North Etiwanda (LMD 7) was formed in 1989 and currently consists of 3,085 single family homes. The assessment rates are as follows: Fiscal Year Fiscal Year Percentage 2018/19 2019/20 Change Single family home $ 307.05 $ 307.05 0.00% Street Lighting Maintenance District No. 2 Residential (SLD 2) was formed in August 1983 and consists of 7,257 single family homes, 2,049 multi -family units, and 35.16 acres of non-residential land. The SLD 2 assessments pay for energy and maintenance for streetlights within the public right-of-way and dedicated easements within the boundaries of SLD 2. 7 Page 23 LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2 VICTORIA, #4R TERRA VISTA, #6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA, STREET LIGHTING DISTRICT #2 RESIDENTIAL, AND PARK AND RECREATION IMPROVEMENT DISTRICT #85 CITY OF RANCHO CUCAMONGA, CALIFORNIA NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2019 Note 1: Description of the Reporting Entity (Continued) The assessment rates are as follows: Fiscal Year Fiscal Year Percentage 2018/19 2019/20 Change Single family home $ 39.97 $ 39.97 0.00% Multi -family unit 39.97 39.97 0.00% Commercial/industrial parcel per acre 79.94 79.94 0.00% Park and Recreation Improvement District No. 85 Red Hill and Heritage Park District (PD 85) was formed in April 1985. PD 85 is a combination Improvement and Maintenance District. This special tax was issued to pay for bonds that were sold in 1985 and refinanced in 1993. The bonds that were sold for the construction of the parks have been paid off as of 2005. However, all parcels in PD 85 will continue to be assessed for the on -going maintenance of both parks. The boundary of PD 85 is citywide except properties within the planned communities. The assessment rates are as follows: Fiscal Year Fiscal Year Percentage 2018/19 2019/20 Change Single family home $ 31.00 $ 31.00 0.00% Condominium unit 31.00 31.00 0.00% Multi -family unit 31.00 31.00 0.00% Commercial/industrial parcel <1.50 acres 15.50/Lot 15.50/Lot 0.00% 1.51 - 3.50 acres 46.50/Lot 46.50/Lot 0.00% 3.51 - 7.00 acres 108.50/Lot 108.50/Lot 0.00% 7.01 - 14.00 acres 217.00/Lot 217.00/Lot 0.00% 14.01 - 25.00 acres 434.00/Lot 434.00/Lot 0.00% >25.01 acres 775.00/Lot 775.00/Lot 0.00% Note 2: Measurement Focus, Basis of Accounting and Financial Statement Presentation The statement of revenues, expenditures and changes in 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. 0 Page 24 LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2 VICTORIA, #4R TERRA VISTA, #6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA, STREET LIGHTING DISTRICT #2 RESIDENTIAL, AND PARK AND RECREATION IMPROVEMENT DISTRICT #85 CITY OF RANCHO CUCAMONGA, CALIFORNIA NOTES TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2019 Note 2: Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) 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 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 The Landscape Maintenance District #1 General City, #2 Victoria, #4R Terra Vista, #6 Caryn Community, and #7 North Etiwanda, and Street Lighting District #2 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. The Park and Recreation Improvement District #85 fund included in this report is accounted for in the City's financial records as an agency fund. Agency funds are used to account for assets held by the City as trustee of agent for individuals, private organizations, or other governmental unites, and/or other funds. Note 3: Contributions from City A General Benefit Contribution quantifies the dollar value of a general benefit to parcels within a district which is required by law to be funded from sources other than special assessments. This general benefit is contributed from general revenues by the City's General Fund. In the event a district is operating at a deficit, lacks the resources for necessary maintenance or maintains insufficient operating reserves, a General Benefit Equivalent may be authorized by the City Council through the annual budget process. Per City policy, the amount of the General Benefit Equivalent will not exceed 11 % of the adjusted total budget of the district under consideration for the subsidy. Note 4: Advances from City On August 16, 2017, the City Council authorized an advance of $4,286,054 from the General Fund to the Street Lighting District #2 Fund to provide funding for the purchase and acquisition of Southern California Edison owned streetlights, the installation of LED lighting to streetlights, and other one-time costs necessary to inventory the streetlights. The advance was completed in phases and bears interest at 1.0% on the outstanding balance. The advance is payable in monthly installments and the final payment will occur in August 2037. At June 30, 2019, the outstanding balance amounted to $3,913,622. 0 Page 25 LSU's !!! !.0! !! 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 Community Parks and Landscape 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 #1 General City, #2 Victoria, #4R Terra Vista, #6R Caryn Community, and #7 North Etiwanda, Street Lighting District #2 Residential, and Park and Recreation Improvement District #85 of the City of Rancho Cucamonga, California, (collectively, the Districts) for the year ended June 30, 2019, and the related notes to statement of revenues, expenditures and changes in fund balances, and have issued our report thereon dated December 9, 2019. 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 Districts' 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. o5 PrimeGlobal Page 26 LSL:::: To the Community Parks and Landscape Citizens' Oversight Committee City of Rancho Cucamonga, California 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. 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. 'o,-44a, C�� Brea, California December 9, 2020 Page 27 DATE: March 17, 2020 TO: Mayor and Members of the City Council FROM: Community Parks and Landscape Citizens' Oversight Committee BY: Lori Sassoon, Deputy City Manager/Administrative Services SUBJECT: SUMMARY OF REVIEW OF RESULTS OF ANNUAL INDEPENDENT AUDIT CONCERNING FISCAL YEAR 2018/19 EXPENDITURES IN LANDSCAPE MAINTENANCE DISTRICTS #1 GENERAL CITY, #2 VICTORIA, #4R TERRA VISTA, #6R CARYN COMMUNITY, AND #7 NORTH ETIWANDA, STREET LIGHTING DISTRICT #2 RESIDENTIAL, AND PARK AND RECREATION IMPROVEMENT DISTRICT #85. RECOMMENDATION: It is recommended that the City Council receive and file this report. BACKGROUND: Established by Resolution 19-075, the Community Parks and Landscape Citizens' Oversight Committee is made up of members of the public that reside, and own property, within Landscape Maintenance Districts #1 General City, #2 Victoria, #4R Terra Vista, #6R Caryn Community, and #7 North Etiwanda, Street Lighting District #2 Residential, and Park And Recreation Improvement District #85 (collectively "the Districts"), and do not serve on any other standing City Commission or Committee. A primary purpose of the Committee is to review the annual audit after it is prepared and report the results of its review to the City Council and the community on an annual basis. The Committee has neither budgetary or operational decision -making authority, nor the authority to allocate financial resources or direct staff. ANALYSIS: At our meeting of March 17, 2020, Finance Director Tamara Layne and Rick Kikuchi, Audit Partner of Lance, Soll & Lunghard, LLP, provided an overview of the audit for the Districts for Fiscal Year 2018/19. The reports generated by the audit include: • Audit Communication Letter • Independent Auditors' Report on Statement of Revenues, Expenditures, and Changes in Fund Balances • Independent Auditors' Report on Internal Control Over Financial Reporting It was noted that in accordance with the law, each of the Districts 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 maintenance and operations are spent to the benefit of each District. The auditors and City Finance staff confirmed that the revenues received have been Page 1 of 2 Page 28 expended appropriately on maintenance, operations, and capital improvements in each of the Districts. We appreciate the opportunity to serve our community on this Committee. If you have any questions regarding our annual meeting, members of the Committee will be present at the City Council meeting to present this report and discuss those questions with you. FISCAL IMPACT: There is no fiscal impact. COUNCIL GOAL ADDRESSED: This item addresses the City Council's goal to ensure the fiscal sustainability of the City's special districts. ATTACHMENTS: Attachment 1 — Audit Communication Letter Attachment 2 — Statement of Revenues, Expenditures and Changes in Fund Balances for the Districts for the year ended June 30, 2019 Attachment 3 — Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Page 2 of 2 Page 29 STAFF REPORT DATE: March 17, 2020 TO: Community Parks and Landscape Citizens' Oversight Committee Members FROM: Jason C. Welday, Director of Engineering Services/City Engineer INITIATED BY: Gianfranco Laurie, Senior Civil Engineer SUBJECT: Heritage Park Bridges Update RECOMMENDATION: Staff recommends that the Community Parks and Landscape Citizens' Oversight Committee recommend replacement of the three parallel bridges to the Equestrian Center with a single bridge structure with physically separated pedestrian/equestrian/and vehicle uses, while leaving the two westerly bridges in place with regular monitoring, and forward that recommendation to the City Council. BACKGROUND: An initial bridge evaluation of seven bridges in and around Heritage Park (Bridges A through G) was completed in March 2011. The initial bridge evaluation recommended replacement of the bridges though it also identified minor repairs for each bridge to extend their useful life. In 2019, an updated bridge report reassessed the five bridges at Heritage Park (Bridges C through G). The report analyzed various bridge alternatives which included new concrete bridges, combining the existing three parallel bridges into one bridge (while separating the pedestrian, equestrian, and vehicle traffic), and replacing bridges with an in -kind construction material. An estimate to replace all five bridges was prepared and costs were estimated to be as high as $1,840,000 for design and construction. The report concluded by recommending future restorations or replacement measures for each bridge. On October 30, 2019, staff shared the report with the Public Works Subcommittee. An option recommended was replacing the three parallel bridges (Bridges E, F & G) with a single bridge with a barrier separating vehicles from pedestrians and equestrians. This option estimated at $1.2 million. One advantage of a single underlying bridge structure is that it leverages an option not otherwise available to allow Fire District reserves to assist with funding up to 50% of the structure, given that this is the only emergency vehicle access point to the facility which is utilized as a fire staging area to help protect the surrounding community during wildfires in the adjacent mountains. The remaining 50% would then be potentially funded with Park Development District No. 85 (PD- 85) reserves. The committee recommended the City Council consider allocating funding in the Fiscal Year 2020/21 CIP Budget for the single bridge with separated uses. Following the Public Works Subcommittee, staff re-engaged the consultant to conduct a more detailed structural evaluation of each bridge. A supplemental engineering study was prepared Page 1 of 8 Page 30 that documented exploratory investigations, structural calculations, and load demands. Significant exterior deterioration, noted delamination, fractures, and insect activity. Load demands were determined which ranged up to 2,000 pounds for the two westerly bridges (Bridges C & D) and roughly between 24,000 to 35,000 pounds for the main vehicle bridge (Bridge F). Additionally, preliminary cost estimates were included in the study using various material, such as concrete, steel and timber. The purpose of this study was to provide better structural information for decision -making as well as to discuss future bridge restorations or replacements with the City's advisory groups. On February 12, 2020, staff presented all the findings received to date to the Trails Advisory Committee. A letter furnished by the Alta Loma Riding Club (ALRC) was submitted that opposed the removal of any bridge as well as installation of one combined bridge. ALRC's feedback was that replacing all five bridges at one time is essential to maintain public access, recreational opportunities, and public safety, regardless of cost. Staff explained that based on the findings received the best option now is to replace the three parallel bridges (Bridges E, F & G) with a combined bridge, while separating the pedestrian/equestrian/vehicle uses, as the Fire District could potentially fund 50% of the anticipated costs. Moreover, the two westerly bridges (Bridge C & D) would remain open for the immediate future with regular monitoring until they reached end of life. The Trails Advisory Committee meeting concluded with a unanimous recommendation to allocate the $1.2 million and replace the three parallel bridges with a single bridge with separated uses, while leaving the two westerly bridges in place with regular monitoring. Also, the Trails Advisory Committee agreed with staff to proceed with temporary improvements such as installing new signs and striping for Bridge C, Bridge D, and Bridge F as a result from the supplemental engineering study. ANALYSIS: As mentioned previously, significant exterior deterioration has occurred to three bridges. The two westerly bridges (Bridges C & D) that serves pedestrian and equestrian traffic to access park amenities such as the adjacent wilderness area, a short-cut access to the main park, and an additional access point to the equestrian center. The third bridge with significant deterioration, the vehicle bridge (Bridge F), is one of three parallel main bridges that provide access into the equestrian center as well as serves for the Fire Districts staging area. Pictures on the subsequent pages depict insect activity, decayed wood planks, discolored wood planks, longitudinal cracks and fractures in the beam supports. Page 2of8 Page 31 Bridges C & D Close Up Bridge C Page 3 of 8 �Opw,, pm Wl ki t � �errrerrrr�r errrrrm�� rrrr IN# +�rmnrr� rrrrrnr�� rrr��r�l Vr�ilfl fz�111i Al r 1/ Page 34 Independent Bridges E, F & G Staff recommends combining the three parallel bridges (Bridge E, F & G) into one bridge that provides separation for vehicles, pedestrian, and equestrian uses. Presently all three parallel wood structures are independent with open voids in between bridges spanning longitudinally 80 feet along the Demens Creek Channel. The proposed combined bridge structure would remove the open voids with constructing one concrete superstructure spanning a total length of 50 feet across the Demens Creek Channel. This concrete bridge structure would include dedicated pathways for vehicles, pedestrians and equestrians that would keep the uses separated. A rough broom finish will be applied throughout the bridge surface to provide better traction for horses. Furthermore, constructing a concrete bridge structure will significantly reduce maintenance, extends the lifespan, and ensure uniformity with current city standards. An architectural rendering of how the proposed structure might look like is illustrated below. Combined Bridge (Uses separated) Given the current condition of the bridges, staff has developed a tentative schedule that identifies all major milestones and target dates to construct a single bridge with separated uses. The overall process from City Council approval to design and then construction will take approximately two (2) years to complete. The next steps are review by the Public Works Subcommittee and ultimate Page 6 of 8 Page 35 consideration by the City Council. A brief outline of the tentative schedule is shown on the subsequent page. Milestone Target Community Parks and Landscape Citizens' Oversight Committee March 17, 2020 Public Works Subcommittee March 18, 2020 City Council May/June 2020 Conceptual Design October 2020 (3 months) Design Drawings (PS&E) March 2021 (8 months) Permits May 2021 (10 months) Bid and Award June 2021 (3 months) Construction March 2022 (8 months) Tentative Schedule Staff recommends that the Community Parks and Landscape Citizens' Oversight Committee recommend replacement of the three parallel bridges with a single bridge with physically separated uses, while leaving the two westerly bridges in place with regular monitoring, and forward that recommendation to the City Council. FISCAL IMPACT: Combining the three parallel bridges (Bridge E, F & G) into a single bridge with separated uses will result in a total estimated cost of $1.2 million. As noted earlier, funding for the combined concrete bridge structure would be split 50% between the Fire District and the other 50% from PD-85 reserves. An estimated cost breakdown is provided below. Bridge Type Fire District PD-85 Combined Reserves Reserves Funding Single Bridge with Separate Uses (Vehicle, Pedestrian, & $420,000 $420,000 $840,000 Equestrian) Includes Prelim Eng., PS&E, $189,000 $189,000 $378,000 Inspection, & Permits Total $609,000 $609,000 $1,218,000 Estimated Costs Given the other deferred maintenance needs and aging infrastructure at both Red Hill and Heritage Parks, as well as cash flow needs, PD-85 does not presently have sufficient reserves to fund all five bridge replacements which is estimated at a cost equal to or greater than $1.8 million. Further, because PD-85 is using 30 year old assessment rates to fund current day costs, and the residents of the district have to date rejected any revenue increases, it is unlikely that PD-85 will be able to save up additional funds on its own, or repay a loan from the General Fund. Page 7 of 8 Page 36 Consistent with existing City Council policy, all landscape and park districts city wide (east and west, north and south) are intended to be self-sustaining and receive an equitable level of support from the General Fund without disproportionately favoring any one district. The only potentially fiscally viable alternative which is within existing City Council approved policy is to leave the two western bridges (Bridge C & D) open but continuously monitored for safety and concurrently combine the eastern three parallel bridges (Bridge E, F & G) into a single, use separated bridge which would then be eligible for partial funding by the Fire District. ATTACHMENTS: None. Page 8 of 8 Page 37 City of Rancho Cucamonga HERITAGE COMMUNITY PARK BRIDGE UPDATE Gianfranco Laurie, Senior Civil Engineer Engineering Services Department March 17, 2020 r? \4 BRIDGED �. r. J BEL - r s rya HILLSIDE RdAD HILLSIDE TRAIL HERITAGE PART( �.- �• EQUESTRIAN I �: CENTER I BRIDGE G I BRIDGE F luW& + F BRIDGE E HERITAGE OC COMMUNITY PARK BRIDGE C L3 CITY OF RANCHO CUCAMONGA Page 39 Evaluations • Initial Bridge Evaluation - 2011 • Determined minor bridge repairs or bridge replacement. • Updated Bridge Evaluation - 2019 • Examined design alternatives for future replacement. • Structural Capacity Assessment — Late 2019 • Revealed exterior deterioration and load demand capacities. Page 40 Explo ratory Investigations Bridge F - Figure 2- looking upstream- Girder 1 and overhanging deck plonks Bridge C- Figure 5 - Looking South-Girderl and Beam 1 - ❑ecoy on the urnderside o}deck deck -girder mterfa- s. Bridge Q - Figure S Girder 2 and overhanging deck plunks Bridge C- Figure 1- Looking upstream -Underside of bridge deek Bridge to -figure 9 - Frass above corbel at south abutment Bridge F - Figure 5 - Underside of bridge - Observation of fractures of deck plunks - r s rya BEL HILLSIDE RdAD HILLSIDE TRAIL HERITAGE PART( �.- �• EQUESTRIAN I �: CENTER I BRIDGE G I BRIDGE F luW& IW + F - -� BRIDGE E HERITAGE COMMUNITY PARK BRIDGE C CITY OF RANCHO CUCAMONGA Page 42 Bridge C Load Capacity L L LEGEND - CONDITION OF FLANKS -SEE PLAN .PORTIONS OF THE WOOD PLANKS THAT ARE SEVERELY DECAYED AND DETERIORATED .PORTIONS OF THE WOOD PLANKS THAT EXHIGrf MODERATE AMOUNT OF DECAY AND DETERIORATION r^ PORTIONS OF THE WOOD PLANKS THAT EXHIRFT MODERATE AMQUNTOF SPLJTTINGLENG7HMSE PLAN LEGEND - CONDITION OF GIRDERS - SEE SECTION A -A GIRDERS TI-ATARE HEAVILY DETERIORATED - HAVE COMPROMISED STRENGTH I E 'I . TH = - GIRDERS TFWT ARE MODERATELY DETERIORATED LE-,---: WDTH = - �:A'WQ TIMRE• L- I.:• r AC 'r.':E„:E',T 71 APPRuk. ;L SE"ON A -A BRIDGE V E H- TI Load Capacity Bridge C is approx. 2,200 Ibs in-between beam supports for equestrians/pedestrians r *Dfire ME I H1LLSiDE RdAD HILLSIDE TRAIL o HERITAGE _ PARS( EQUESTRIAN -� I - 'i CENTER / BRIDGE G I BRIDGE F + - r BRlQGE D �05 HERITAGE l ° COMMUNITY PARK BRIDGE C L3 _ AL CITY OF RANCHO CUCAMONGA Page 44 Bridge D Load Capacity L L 0 fit -E '.'l'-TH - 10' APPROX. LE- . I TH - - ''ROT{. - Tl' E t - - E E T k J T I I T I IL _ L 4`Cf'r1rW A _]:jI■Icl:211 E :H TI .. LEGEND - CONDITION OF PLANKS -SEE PLAN .PORTIONS OF THE WOOD PLANKS THAT ARE SEVERELY DECAYED AND DETERIORATED .PORTIONS OF THE WOOD PLANKS THAT EXHI9rr MODERATE AMOUNT OF DECAY AND DETERIORATION PORTIONS OF THE WOOD PLANK3 THAT EXHIRFT MODERATE AMOUNT OF SPLFTTING LENG7HMSE LEGEND - CONDITION OF GIRDERS - SEE SECTION A -A GIRDERS TI-ATARE HEAVILY DETERIORATED HAVE COMPROMISED STRENGTH . GIRDERS TFWT ARE MODERATELY DETERIORATED Load Capacity Bridge D is approx. 1,850 Ibs in-between beam supports for equestrians/pedestrians \4 I BRlQGEQ __. - J W. -4�0 BEL - r s rya HILLSIDE RdAD HILLSIDE TRAIL HERITAGE -- x PARK EQUESTRIAN CENTERBRIDGE G ' ' J I W& � 101, . lu _ + F HERITAGE OC COMMUNITY PARK BRIDGE C 3 _ _ AL F•�. CITY OF RANCHO CUCAMONGA Page 46 Bridge F Load Capacity L L L L L L L L L I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I A. I °I" is X I 1 I A fT7!';. I I 19 I I I I I A F----I ++ --� F----� r— 7 --- I I I I I I I I r----7 F----� F-- 7 L I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I 1 1 1 1 1 1 1 I r----7 r----7 r----7 r----7 r----7 r----7 r----7 r----7 r-- I I I I I I I I I I I I I I I I L-- 3� Q (D G Q (0 0 I E '.1 TH — E— ..1 .TH = ... —. . -AC PAVEMEHT Y�] f AP �N1 Y. .APPNO. f APPk L'k. APP:i Ilk. :V''NCY.. APPkOk. qL 'L Tf:'. SECTION A -A LEGEND - CONDITION OF PLANKS -SEE PLAN .PORTIONS OF THE WOOD PLANKS THAT ARE SEVERELY DECAYED AND DETERIORATED .PORTIONS OF THE WOOD PLANKS THAT EXH19Pr MODERATE AMOUNT OF DECAY AND DETERIORATION PORTIONS OF THE WOOD PLANKS THAT EXHIRFT MODERATE AMOLUNT OF SPLFTTING LENGTHWISE LEGEND - CONDITION OF GIRDERS - SEE SECTION A -A GIRDERS THATARE HEAVILY DETERIORATED HAVE COMPROMISED STRENG H GIRDERS TFWT ARE MODERATELY DETERIORATED Load Capacity Bridge F is approx. 4,300 Ibs in-between beam supports for vehicles. (Note, individual beam support can carry 41,000 Ibs.) CITY OF RANCHO CUCAMONGA Page 48 Combined Bridge . rl AL, ` 4i i E CITY OF RANCHO CUCAMONGA Page 50 Tentative Schedule q33W- Oversight Committee Public Works Subcommittee City Council Conceptual Design Design Drawings (PS&E) Permits Bid and Award Construction bTa rge March 17, 2020 March 18, 2020 May/June 2020 October 2020 (3 months) March 2021 (8 months) May 2021 (10 months) June 2021 (3 Months) March 2022 (8 Months) Page 51 Estimated Cost Combining Three Main Bridges into One Structure Single Bridge with Separate Uses (Vehicle, Pedestrian, &Equestrian) $420,000 $420,000 $840,000 Includes Prelim Eng., PS&E, I$189,000 $189,000 $378,000 Inspection, &Permits (45%) Total $609,000 $609,000 $1,218,000 Page 52 Recommendation • Staff recommends that the Community Parks and Landscape Citizens' Oversight Committee recommend replacement of the three parallel bridges to the Equestrian Center with a single bridge structure with physically separated pedestrian/equestrian/and vehicle uses, while leaving the two westerly bridges in place with regular monitoring, and forward that recommendation to the City Council. Page 53 Questions?