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HomeMy WebLinkAbout2008/06/12 - Agenda Packet - Special Budget~,1 .-: ~'~~~~. AGENDA REDEVELOPMENT AGENCY FIRE PROTECTION DISTRICT CITY COUNCIL SPECIAL MEETING Thursday, June 12, 2008 ~ 6:00 p.m. Rancho Cucamonga City Hall ~ Council Chambers 10500 Civic Center Drive ~ Rancho Cucamonga, CA 91730-3801 A. CALL TO ®RDER 1. Pledge of Allegiance 2. Roll Call: Chairman/PresidentlMayor Kurth Vice ChairmanNice President/Mayor Pro Tem Michael Agency/Board/Councilmembers Gutierrez, Spagnolo and Williams B. PUBLIC COMMUNICATIONS This is the time and place for the general public to address the Redevelopment Agency, Fire Protection District and City Council on any item listed on the agenda. State law prohibits the Agency, Fire Board or City Council from addressing any issue not previously included on the Agenda. The Agency, Fire Board or City Council may receive testimony and set the matter for a subsequent meeting. Comments are to be limited to five minutes per individual or less, as deemed necessary by the Chair, depending upon the number of individuals desiring to speak. All communications are to be addressed directly to the Agency, Fire Board or City Council, not to the members of the audience. This is a professional business meeting and courtesy and decorum are expected. Please refrain from any debate between audience and speaker, making loud noises, or engaging in any activity which might be disruptive to the decorum of the meeting. The public communications period will not exceed one hour prior to the commencement of the business portion of the agenda. During this one hour period, all those who wish to speak on a topic contained in the business portion of the agenda will be given priority, and no further speaker cards for these business items (with the exception of public hearing items) will be accepted once the business portion of the agenda commences. Any other public communications which have not concluded during this one hour period may resume after the regular business portion of the agenda has been completed. C. CONSENT CALENDAR -REDEVELOPMENT AGENCY The following Consent Calendar items are expected to be routine and non-controversial. They will be acted upon by the Agency at one time without discussion. Any item may be removed by a Boardmember for discussion. APPROVAL OF ANNUAL LOAN TRANSACTION BETWEEN THE CITY OF RANCHO - Pg. 7 [1] 2. APPROVAL OF A RESOLUTION IN ACCORDANCE WITH.HEALTH AND SAFETY CODE SECTION 33445 WHICH AUTHORIZES THE REDEVELOPMENT AGENCY TO EXPEND FUNDS FOR LAND AND PUBLIC IMPROVEMENTS THAT ARE OF BENEFIT TO THE PROJECT AREA - Pg. 2 RESOLUTION NO. RA 08-008 Pg. 3 A RESOLUTION.OF THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY, RANCHO CUCAMONGA, CALIFORNIA, REGARDING PROJECTS BENEFITTING ITS RANCHO REDEVELOPMENT PROJECTAND MAKING CERTAIN FINDINGS IN REGARD 3. APPROVAL OF MODIFICATIONS TO THE AGENDA FORMAT - Pg. 6 RESOLUTION NO. RA 81-001 E Pg. 7 A RESOLUTION OF THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY, RANCHO CUCAMONGA, CALIFORNIA, DETERMINING THE DAYS, TIME AND PLACE OF THE REGULAR MEETINGS OF THE REDEVELOPMENT AGENCY C. CONSENT CALENDAR -FIRE PROTECTION DISTRICT The following Consent Calendar items are expected to be routine and non-controversial. They will be acted upon by the Fire Board at one time without discussion. Any item may be removed by a Boardmember for discussion. 4. APPROVAL OF A RESOLUTION TO REAFFIRM THE LEVEL OF FISCAL RESERVES FOR THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT - Pg. 9 RESOLUTION NO. FD 08-019 Pg. 70 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, 5AN BERNARDINO COUNTY, CALIFORNIA, REAFFIRMING THE LEVEL OF FISCAL RESERVES FOR THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT 5. APPROVAL OF MODIFICATIONS TO THE AGENDA FORMAT - Pg. 77 RESOLUTION NO. FD 89-001 E Pg. 72 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, DETERMINING THE DAYS, PLACE AND TIME FOR HOLDING REGULAR MEETINGS OF THE BOARD OF DIRECTORS 6. APPROVAL OF THE FOLLOWING ACTIONS PERTAINING TO THE CITY'S AND THE FIRE DISTRICT'S OTHER POST EMPLOYMENT BENEFITS (OPEB} ACTUARIAL LIABILITY IN ACCORDANCE WITH GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) STATEMENT N0.45: 1) RECEIVE AND FILE THE CITY'S AND THE DISTRICT'S RETIREE HEALTHCARE PAN JUNE 30, 2008 ACTUARIAL VALUATION; 2) APPROVE THE REQUIRED AGREEMENT AND FORMS TO ESTABLISH AND FUND AN IRREVOCABLE TRUST WITH CALPERS THROUGH THEIR CALIFORNIA EMPLOYERS' RETIREE BENEFIT TRUST (CERBT} PROGRAM; 3) AUTHORIZE STAFF TO COMPLETE THE INITIAL PREFUNDING OF THE TRUST IN THE AMOUNT OF $2 MILLION PLUS THE FULL ANNUAL REQUIRED CONTRIBUTION (ARC) DURING FY 2008/09; THE PAYMENT OF FUTURE YEARS' ARC; AND THE PREFUNDING OF THE REMAINING UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) WITH THE PROCEEDS FROM THE GUARANTEED INVESTMENT CONTRACT (GIC}WHICH MATURES IN OCTOBER 2009; AND 4) APPROVE AND AUTHORIZE THE EXECUTION OF A PROMISSORY NOTE BETWEEN THE CITYAND THE DISTRICT STATING THAT ANY ASSETS REMAINING IN THE TRUST AT THE CONCLUSION OF THE PAN WILL REVERT BACK TO FUND 025 - Pg. 14 RESOLUTION NO. FD 08-020 Pg. 39 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, DELEGATING AUTHORITY TO REQUEST DISBURSEMENTS FROM THE CALPERS CALIFORNIA EMPLOYERS' RETIREE BENEFIT TRUST (CERBT) FOR THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT'S RETIREE HEALTHCARE PLAN 7. APPROVAL OF ANNUAL SALARY RESOLUTION NOS. 06-209, 06-238(8), FD 06-003, FD 06- 038 AND FD 06-049 FOR FY 2008-2009 Pg. 41 RESOLUTION NO. FD 08-021 Pg. 42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING SECTION 1, EXHIBITS "E" AND "F" OF SALARY RESOLUTION NUMBERS FD 06-003, FD 06-038 AND FD 06-049 FOR FISCAL YEAR 2008/2009 C. CONSENT CALENDAR -CITY COUNCIL The following Consent Calendar items are expected to be routine and non-controversial. Theywill be acted upon by the City Council at one time without discussion. Any item may be removed by a Councilmember for discussion. 8. APPROVAL OF ANNUAL LOAN TRANSACTION BETWEEN THE CITY OF RANCHO CUCAMONGA AND THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY, AND SETTING THE INTEREST RATE ON THE LOAN, ASWELL ASINTER-FUND LOANS - Pg. 51 9. APPROVAL OF A RESOLUTION TO REAFFIRM THE LEVEL OF FISCAL RESERVES FOR THE CITY OF RANCHO CUCAMONGA - Pg. 52 RESOLUTION NO. 08-130 Pg. 53 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUGAMONGA, CALIFORNIA, REAFFIRMING THE LEVEL OF FISCAL RESERVES FOR THE CITY OF RANCHO CUCAMONGA 10. APPROVAL OF A RESOLUTION IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 33445 WHICH AUTHORIZES THE REDEVELOPMENT AGENCY TO EXPEND FUNDS FOR LAND'- AND PUBLIC IMPROVEMENTS THAT ARE OF BENEFIT TO THE ' PROJECT AREA - Pg. 55 RESOLUTION NO. 08-131 Pg. 56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, REGARDING PROJECTS BENEFITTING THE RANCHO REDEVELOPMENT PROJECT AND MAKING CERTAIN FINDINGS IN REGARD 11. APPROVAL OF ANNUAL SALARY RESOLUTION NOS. 06-209, 06-238(8}, FD 06-003, FD 06- 038 AND FD 06-049 FOR FY 2008-2009 - Pg. 59 RESOLUTION NO. 08-132 Pg. 60 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING SECTION 1, EXHIBITS "E" AND "F" OF SALARY RESOLUTION NUMBERS 06-209 AND 06-238(6) FOR FISCAL YEAR 2008/2009 12. APPROVAL OF ANNUAL REVIEW AND AMENDMENT TO MEDICAL SAVINGS AGREEMENT MSA - Pg. 72 13. APPROVAL OF MODIFICATIONS TO THE AGENDA FORMAT - Pg. 77 RESOLUTION NO. 90-227D Pg. 7& A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, DETERMINING THE DAYS, TIME AND PLACE OF REGULAR MEETINGS OF THE CITY COUNCIL 0 14. APPROVAL OF THE FOLLOWING ACTIONS PERTAINING TO THE CITY'S AND THE FIRE DISTRICT'S OTHER POST EMPLOYMENT BENEFITS (OPEB) ACTUARIAL LIABILITY IN ACCORDANCE WITH GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB~ STATEMENT N0.45: 1) RECEIVE AND FILE THE CITY'S AND THE DISTRICT'S RETIREE HEALTHCARE PAN JUNE 30, 2008 ACTUARIAL VALUATION; 2~ APPROVE THE REQUIRED AGREEMENT AND FORMS TO ESTABLISH AND FUND AN IRREVOCABLE TRUST WITH CALPERS THROUGH THEIR CALIFORNIA EMPLOYERS' RETIREE BENEFIT TRUST (CERBT) PROGRAM; 3~ AUTHORIZE STAFF TO COMPLETE THE INITIAL PREFUNDING OF THE TRUST IN THE AMOUNT OF $2 MILLION PLUS THE FULL ANNUAL REQUIRED CONTRIBUTION (ARC) DURING FY 2008/09; THE PAYMENT OF FUTURE YEARS' ARC; AND THE PREFUNDING OF THE REMAINING UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) WITH THE PROCEEDS FROM THE GUARANTEED INVESTMENT CONTRACT (GIC) WHICH MATURES IN OCTOBER 2009; AND 4~ APPROVE AND AUTHORIZE THE EXECUTION OF A PROMISSORY NOTE BETWEEN THE CITY AND THE DISTRICT STATING THAT ANY ASSETS REMAINING IN THE TRUST AT THE CONCLUSION OF THE PAN WILL REVERT BACK TO FUND 025 - Pg. 80 15. APPROVAL OF SHERIFF'S FISCAL YEAR 2008/2009 SCHEDULE "A" AMENDMENT TO THE LAW ENFORCEMENT CONTRACT (CO 94-017) - Pg. 905 D. CITY MANAGER'S STAFF REPORTS - REDEVELOPMENT AGENCY The following items have no legal publication or posting requirements. 1. CONSIDERATION TO ADOPT THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY'S ANNUAL BUDGET FOR FISCAL YEAR 2008/2009 - Pg. 190 RESOLUTION NO. RA 08-009 Pg. 112 A RESOLUTION OF THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY, CALIFORNIA, ADOPTING THE AGENCY'S FISCAL YEAR 2008/2009 BUDGET D. CITY MANAGER'S STAFF REPORTS - FIRE PROTECTION DISTRICT The following items have no legal publication or posting requirements. 2. CONSIDERATION TO ADOPT THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT GENERAL FUND PRELIMINARY BUDGET IN THE AMOUNT OF $20,973,080 FOR FISCAL YEAR 2008/2009 AND SET FINAL APPROVAL OF FINAL BUDGET FOR JULY 16, 2008 - Pg. 114 3. CONSIDERATION TO ADOPT THE FISCAL YEAR 2008/2009 GENERAL FUND'S ARTICLE XIIIB APPROPRIATIONS LIMIT - Pg. 115 RESOLUTION NO. FD 08-022 Pg. 116 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, ADOPTING A GENERAL FUND APPROPRIATIONS LIMIT FOR FISCAL YEAR 2008/2009 PURSUANT TO ARTICLE XIII-B OF THE CALIFORNIA CONSTITUTION 4. CONSIDERATION OF APPROVAL OF RESOLUTIONS ADOPTING A BUDGET IN THE AMOUNT OF $5,965,090, AND ESTABLISHING THE MAXIMUM SPECIAL TAX THAT COULD BE LEVIED IN MELLO-BOOS COMMUNITY FACILITIES DISTRICT NO. 85-1 FOR FISCAL YEAR 2008/2009 - Pg, 117 8 120 RESOLUTION NO. FD 08-023 Pg. 119 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, APPROVING AND ADOPTING A BUDGET FOR MELLO-BOOS COMMUNITY FACILITIES DISTRICT NO. 85-1 FOR FISCAL YEAR 2008!2009 RESOLUTION NO. FD 08-024 Pg. 122 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, ESTABLISHING THE MAXIMUM SPECIAL TAX WHICH COULD BE LEVIED IN MELLO-BOOS COMMUNITY FACILITIES DISTRICT NO. 85-1 FOR FISCAL YEAR 2008!2009 5. CONSIDERATION OF ADOPTION OF FISCAL YEAR 2008/09 ARTICLE XIIIB APPROPRIATIONS LIMIT FOR COMMUNITY FACILITIES DISTRICT ~CFD) N0.85-1 -Pg. 725 RESOLUTION NO. FD 08-025 Pg. 126 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, ADOPTING AN APPROPRIATIONS LIMIT FOR MELLO-RODS COMMUNITY FACILITIES DISTRICT NO. 85-1 FOR FISCAL YEAR 2008/2009 PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION 6. CONSIDERATION OF APPROVAL OF RESOLUTIONS ADOPTING A BUDGET IN THE AMOUNT OF $1,792,020 AND APPROVING THE APPROPRIATIONS LIMIT IN THE AMOUNT OF $2,442,996 FOR FISCAL YEAR 2008!2009 IN COMMUNITY FACILITIES DISTRICT NO. 88-1 - Pg. 128 RESOLUTION NO. FD 08-026 Pg. 130 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, APPROVING AND ADOPTING A BUDGET FOR COMMUNITY FACILITIES DISTRICT NO. 88-1 FOR FISCAL YEAR 200$/2009 RESOLUTION NO. FD 08-027 Pg. 131 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, APPROVING APPROPRIATIONS LIMIT FOR COMMUNITY FACILITIES DISTRICT NO. 88-1 FOR FISCAL YEAR 2008/2009 D. CITY MANAGER'S -3TAFF REPORTS - CITY COUNCIL The following items have no legal publication or posting requirements. ADOPTION OF FISCAL YEAR 2008/2009 BUDGET AND ARTICLE XIII-B APPROPRIATIONS LIMIT - Pg. 133 RESOLUTION NO. 08-133 Pg. 135 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ADOPTING THE CITY'S FISCAL YEAR 2008/2009 BUDGET RESOLUTION NO. 08-134 Pg. 137 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ESTABLISHING AN APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIII-B OF THE CALIFORNIA STATE CONSTITUTION FOR FISCAL YEAR 2008/2009 E. ADJOURNMENT I, Debra J. Adams, City Clerk of the City of Rancho Cucamonga, hereby certify that a true, accurate copy of the foregoing agenda was posted on June 5, 2008, per Government Code 54954.2 at 10500 Civic Center Drive, Rancho Cucamonga, California. ^7 STAFF REPORT REDEVELOPMENT AGENCY' Date: June 12, 2008 To: Chairman and Members of the Redevelopment Agency Board Mayor and Members of the City Council Jack Lam, AICP, Executive Director/City Manager From: Linda D. Daniels, Redevelopment Director RANCHO C,UCAMONGA Subject: APPROVAL OF ANNUAL LOAN TRANSACTION BETWEEN THE CITY OF RANCHO CUCAMONGA AND THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY, AND SETTING THE INTEREST RATE ON THE LOAN, AS WELL AS INTER-FUND LOANS RECOMMENDATION: Approve the repayment and re-borrowing of the annual loan amount between the City of Rancho Cucamonga and the Rancho Cucamonga Redevelopment Agency and setting the interest rate on the loan. as well as anv inter-fund Aaencv loans. BACKGROUND/ANALYSIS: In order to receive tax increment revenue, the principal source of redevelopment funding, a Redevelopment Agency must demonstrate existing debt, which will be repaid by the tax increment received. For this purpose, when the Project Area was established in Fiscal Year 1982/83, the City loaned money to the• Redevelopment Agency in order to establish initial debt, as well as to provide monies for operations. For debt purposes, the City and Agency have continued to maintain this loan agreement, thus ensuring the Agency's receipt of its full tax increment revenue. During fiscal year 2007/08 the Redevelopment Agency will pay to the City $6,000,000 towards the principal and interest on the City/Agency loan. At the same time, it is also necessary for the Agency to continue its loan agreement with the City, in order to show sufficient debt and receive the full amount of tax increment revenue. Therefore, it is necessary for the City to authorize the Agency to re-borrow the amount of $6,000,000. For the upcoming fiscal year, the interest rate on the total loan between the City and the Agency will be equal to the Local Agency Investment Fund (LAIF) rate as of July 1, 2008. This item appears on both the Agency and City Council Agendas. Respectfully submitted, Linda D. Daniels Redevelopment Director P1 P2 STAFF REPORT - REDEVELOPNfENT AGENCP RANCHO Date: June 12, 2008 C,UCAMONGA To: Chairman and Members of the Redevelopment Agency Jack Lam, AICP, Executive Director From: Linda D. Daniels, Redevelopment Director Subject: APPROVAL OF A RESOLUTION IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 33445 WHICH AUTHORIZES THE REDEVELOPMENT AGENCY TO EXPEND FUNDS FOR LAND AND PUBLIC IMPROVEMENTS THAT ARE OF BENEFIT TO THE PROJECT AREA RECOMMENDATION Approve the attached Resolution, which authorizes the Redevelopment Agency to expend Agency funds on public improvements that are of benefit to the Project Area. BACKGROUND Health and Safety Code Section 33445 requires both the Redevelopment Agency and the City Council adopt Resolutions that indicate the intent on spending Agency funds on land and public improvements (including buildings, facilities, structures or other improvements that are to be publicly owned). ANALYSIS The attached Resolution complies with the requirements of Health and Safety Code Section 33445 and makes the necessary findings: that the projects are of benefit to the Project Area; there is no other reasonable means of financing the projects; and the improvements will assist in the elimination of blight within the Project Area. The Resolution includes Appendix 1, which outlines the public improvement projects that the Agency plans to fund. This item also appears on the City Council agenda. Respectfully submitted, Linda D. Daniels Redevelopment Director Attachment: 33445 Resolution P3 RESOLUTION NO. ~ ~ 8 - ~~ A RESOLUTION OF THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY, RANCHO CUCAMONGA, CALIFORNIA, REGARDING PROJECTS BENEFITING iT5 RANCHO REDEVELOPMENT PROJECT AND MAHING CERTAIN FINDINGS IN REGARD A. Recitals. (i) The Community Redevelopment Law of the State of California (Health and Safety Code Sections 33000 et seq.), among other provisions granting powers to redevelopment agencies, contains Section 33445 which provides that a redevelopment agency, with the consent of the legislative body, may pay all or part of the value of land for and the cost of installation and construction of any buildings, facilities, structures or other improvements which are publicly owned either within or without a project area, upon a determination by such agency and such legislative body by resolution that such buildings, facilities, structures or other improvements are of benefit to such project area; that no other means of financing the same are available to the community; and, that the payment of funds for same will assist in the elimination of one or more blighting conditions inside the project area. (ii) The officially adopted Rancho Redevelopment Plan of the Rancho Cucamonga Redevelopment Agency (the "Agency"), including all amendments, provides in part for the construction of these community and cultural facilities to serve said project area. (iii) Attached as Appendix "1" is a document which provides for the Agency's funding of certain capital projects from tax increment resources in estimated amounts (the "Public Projects"). (iv) All legal prerequisites to the adoption of this Resolution related to the Public Projects have occurred. B. Resolution. NOW, THEREFORE, the Rancho Cucamonga Redevelopment Agency does hereby find, determine and resolve as follows: Section 1. This Agency hereby finds that the facts set forth in the Recitals, Part A, of this Resolution are true and correct. Section 2. The Agency hereby specifically finds and determines that the construction of the Public Projects and this Agency's funding thereof as specified in Appendix "1"hereto will be of benefit to this Agency's Rancho Redevelopment Project. Section 3. This Council hereby specifically finds and determines that no other reasonable means of financing is available to the community to construct the Public P4 Projects other than through this Agency's funding thereof in the amounts specified in Appendix "1"hereto. Section 4. This Agency hereby specifically finds that the financial obligations that it will undertake to construct the Public Projects will not impair its ability to dischazge any financial obligation previously undertaken by it with respect to its Rancho Redevelopment Project. Section 5. This Agency hereby specifically finds and determines that the construction of the Public Projects specified in Appendix "1" and this Agency's funding thereof will assist in the elimination of one or more blighting conditions inside the project area and is consistent with this Agency's implementation plan adopted pursuant to Health and Safety Code section 33490. Section 6. The Chairman and Executive Director of this Agency hereby are authorized and directed to take any and all actions necessary to cause this Agency to fund the construction of the Public Projects, and any and all funds heretofore expended by this Agency for that purpose hereby are ratified. Section 7. The Executive Director shall certify to the adoption of this Resolution. PASSED, APPROVED, and ADOPTED this 12`h day of June, 2008. AYES: NOES: ABSENT: ABSTAINED: Donald J. Kurth, M.D., Chairman ATTEST: Jack Lam, Secretary I, JACK LAM, SECRETARY, of the Rancho Cucamonga Redevelopment Agency, California, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Rancho Cucamonga, Califomia, at a regular meeting of said City Council, held on the 12`h day of June, 2008. Executed this 13`h day of June, 2008 at Rancho Cucamonga, California. Jack Lam, Secretary P5 APPENDIX 1 Project Location Estimated Cost Anticipated Source(s) of Fundin Metrolink Transit Facility East side of Milliken $2,000,000 Tax Increment and Parking area Avenue, north of 6`h Tax Allocation Bond Funds Street Family Sports Center South side of San $2,110,000 Tax Increment Bernardino Road, east Tax Allocation Bond Funds of Vineyard Avenue Family Resource Center South side of Arrow $1,000,000 Tax Increment Highway, east of Tax Allocation Bond Funds Archibald Avenue Anima] Care and North side of Arrow $2,000,000 Tax Increment Adoption Center Highway, west of Tax Allocation Bond Funds Rochester Avenue East Avenue Storm Drain East Avenue between $16,000,000 Tax Increment Avow and 4~h Street Tax Allocation Bond Funds Demens Basin No. 2 South of Hillside $2,500,000 Tax Increment reclamation Avenue, west side of Tax Allocation Bond Funds Hellman Avenue Chaffey Isle House West side of Etiwanda $100,000 Tax Increment Restoration Avenue, north of Base Tax Allocation Bond Funds Line Road STAFF REPORT CITY 1\'LAN~IGER'S OFFICE Date: June 12, 2008 To: From By: Subject: Chairman and Members of the Redevelopment Agency President and Members of the Fire Board Mayor and Members of the City Council Jac m,,A~IC~P, City Manager Pa . E' aster, Assistant City Manager MO 1 (CATIONS TO REDEVELOPMENT COUNCIL AGENDAS RANCHO C,UCAMONGA AGENCY, FIRE BOARD AND CITY In the interest of streamlining the Redevelopment Agency, Fire Board and City Council agenda meetings, it is recommended that the "Agency/Fire Board/Council responses to Public Comments" section of the Agenda be deleted from the Agenda. P6 Additionally, attached is a Resolution to change the closed session start time to 5:00 p.m. The remainder of the meeting will continue to start at 7:00 p.m. P7 RESOLUTION NO. RA 81-001E A RESOLUTION OF THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, DETERMINING THE DAYS, TIME AND PLACE OF REGULAR MEETINGS OF THE REDEVELOPMENT AGENCY WHEREAS, the Rancho Cucamonga Redevelopment Agency does hereby resolve as follows: SECTION 1: Regular Meetings of the Rancho Cucamonga Redevelopment Agency shall be held in the Council Chambers at the Civic Center complex located at 10500 Civic Center Drive, Rancho Cucamonga, California, on the first and third Wednesday of each month. Each such regular meeting, commencing with the meeting of June 18, 2008, shall commence at 5:00 p.m. in the Tapia Room on the upper level of the Civic Center for purposes of conducting an Executive Session only. The remainder of each such meeting shall commence and be conducted at 7:00 p.m. in the Council Chambers of the Civic Center. SECTION 2: Said regular meetings shall continue to occur on the first and third Wednesday of each month in the Council Chambers as stated above. Please see fhe following page for formal adoption, certification and signatures P8 RESOLUTION NO. RA 81-001 E Page 2 of 2 PASSED, APPROVED, AND ADOPTED this 12`h day of June 2008. L. Dennis Michael, Vice Chairman ATTEST: Jack Lam, Secretary I, JACK LAM, SECRETARY of th of the City of Rancho Cucamonga, California, c was duly passed, approved, and adopted by the Cucamonga, California, at a Special Meeting of day of June 2008. Rancho Cucamonga Redevelopment Agency ~ hereby certify that the foregoing Resolution Redevelopment Agency of the City of Rancho said Redevelopment Agency held on the 12'" Executed this 16'" day of June 2008, at Rancho Cucamonga, California. Jack Lam, Secretary P9 Staff Report DATE: June 12, 2008 TO: President and Members of the Board of Directors of the Rancho Cucamonga Fire Protecti istrict FROM: Jack Lam, City M er BY: Tamara L. Layne, Finance Director SUBJECT: RESOLUTION TO REAFFIRM THE LEVEL OF FISCAL RESER~ RECOMMENDATION Staff recommends that the Fire Board approved the attached resolution to reaffirm the level of fiscal reserves for the Rancho Cucamonga Fire Protection District. BACKGROUND The most recent fiscal audit conducted for the District was as of June 30, 2007. Annually, the Fire Board approves the attached resolution reaffirming the level of reserves included in the Comprehensive Annual Financial Report (CAFR) as of June 30, 2007. Respectfully submitted, Jack Lam City Manager I:Ifinancelbudget20091City Council staff reportslreaffirming level of reserves-Fire District 08-09.doc P10 RESOLUTION NO. FD 08-~ I RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, REAFFIRMING THE LEVEL OF FISCAL RESERVES FOR THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT WHEREAS, the Rancho Cucamonga Fire Protection District Board desires to protect existing services, and; WHEREAS, the Rancho Cucamonga Fire Protection District Board desires to be prepared for emergencies, and; WHEREAS, the Rancho Cucamonga Fire Protection District Board desires to maintain good fiscal management and fiscal structure to operate a municipal corporation, and; NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District, San Bernardino County, California, does hereby resolve on this 12`h day of June 2008 that the level of fiscal reserves maintained by the Rancho Cucamonga Fire Protection District as stated in the Comprehensive Annual Financial Report dated June 30, 2007 are hereby reaffirmed. PASSED, APPROVED, AND ADOPTED this 12`" day of June 2008. AYES: NOES: ABSENT: ABSTAINED: Donald J. Kurth, M.D., President ATTEST: Debra J. Adams, City Clerk STAFF REPORT CI'Il" l~~t:AN:1G8R'S ~3~FICE Date: June 12, 2008 To: From: By: Subject Chairman and Members of the Redevelopment Agency President and Members of the Fire Board Mayor and Members of the City Council Jack m,,A~IC~P, City Manager Pa ~E' aster, Assistant City Manager MO IFICATIONS TO REDEVELOPMENT COUNCIL AGENDAS P11 ~~ ~ ~~J ~~~ RANCHO C,,UCAMONGA AGENCY, FIRE BOARD AND CITY In the interest of streamlining the Redevelopment Agency, Fire Board and City Council agenda meetings, it is recommended that the "Agency/Fire Board/Council responses to Public Comments" section of the Agenda be deleted from the Agenda. Additionally, attached is a Resolution to change the closed session start time to 5:00 p.m. The remainder of the meeting will continue to start at 7:00 p.m. P12 RESOLUTION NO. FD 89-001E A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DETERMINING THE DAYS, PLACE AND TIME FOR HOLDING REGULAR MEETINGS OF THE BOARD OF DIRECTORS WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve as follows: SECTION 1: Regular Meetings of the Rancho Cucamonga Rancho Cucamonga Fire Protection District shall be held in the Council Chambers at the Civic Center complex located at 10500 Civic Center Drive, Rancho Cucamonga, California, on the first and third Wednesday of each month. Each such regular meeting, commencing with the meeting of June 18, 2008, shall commence at 5:00 p.m. in the Tapia Room on the upper level of the Civic Center for purposes of conducting an Executive Session only. The remainder of each such meeting shall commence and be conducted at 7:00 p.m. in the Council Chambers of the Civic Center. SECTION 2: Said regular meetings shall continue to occur on the first and third Wednesday of each month in the Council Chambers as stated above. Please see the following page for formal adoption, certit,cation and signatures Resolution No. FD 89-001 E Page 2 of 2 PASSED, APPROVED, AND ADOPTED this 12'" day of June 2008. L. Dennis Michael, Vice President ATTEST: Debra J. Adams, Secretary I, DEBRA J. ADAMS, SECRETARY of the Rancho Cucamonga Fire Protection District, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the Board of Directors of the Rancho Cucamonga Fire Protection District, at a Special Meeting of said Board held on the 12`h day of June 2008. Executed this 16"' day of June 2008 at Rancho Cucamonga, California. P13 Debra J. Adams, Secretary STAFF REPORT ADMINISTRATIVE SERVICES DEPARTMENT ' RANCHO Date: June 12, 2008 C,UCAMONGA To: Mayor and Members of the City Council President and Members of the Board of Directors Jack Lam, City Manager From: John Gillison, Deputy•City Manager/Administrative Services By: Tamara L. Layne, Finance Director Subject: AUTHORIZATION FOR THE FOLLOWING ACTIONS PERTAINING TO THE CITY'S AND THE FIRE DISTRICT'S OTHER POST EMPLOYMENT BENEFITS (OPEB) ACTUARIAL LIABILITY IN ACCORDANCE WITH GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) STATEMENT NO. 45: 1) RECEIVE AND FILE THE CITY'S AND THE DISTRICT'S RETIREE HEALTHCARE PLAN JUNE 30, 2008 ACTUARIAL VALUATION; 2) APPROVE THE REQUIRED AGREEMENT AND FORMS TO ESTABLISH AND FUND AN IRREVOCABLE TRUST WITH CaIPERS THROUGH THEIR CALIFORNIA EMPLOYERS' RETIREE BENEFIT TRUST (CERBT) PROGRAM; 3) AUTHORIZE STAFF TO COMPLETE THE INITIAL PREFUNDING OF THE TRUST IN THE AMOUNT OF $2 MILLION PLUS THE FULL ANNUAL REQUIRED CONTRIBUTION (ARC) DURING FY 2008/09; THE PAYMENT OF FUTURE YEARS' ARC; AND THE PREFUNDING OF THE REMAINING UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) WITH THE PROCEEDS FROM THE GUARANTEED INVESTMENT CONTRACT (GIC) WHICH MATURES IN OCTOBER 2009; AND 4) APPROVE AND AUTHORIZE THE EXECUTION OF A PROMISSORY NOTE BETWEEN THE CITY AND THE DISTRICT STATING THAT ANY ASSETS REMAINING IN THE TRUST AT THE CONCLUSION OF THE PLAN WILL REVERT BACK TO FUND 025. RECOMMENDATION Staff respectfully recommends that the Council and the Board provide authorization for the following actions pertaining to the City's and the Fire District's Other Post Employment Benefits (OPEB) actuarial liability in accordance with Governmental Accounting Standards Board (GASB) Statement No. 45, "Accounting and Financial Reporting by Employers for Post Employment Benefits Other Than Pensions": 1) Receive and file the City's and the District's Retiree Healthcare Plan June 30, 2008 Actuarial Valuation; 2) Approve the required agreement and forms to establish and fund an irrevocable trust with CaIPERS through their California Employers' Retiree Benefit Trust (CERBT) Program; 3) Authorize staff to complete the initial prefunding of the trust in the amount of $2 million plus the full annual required contribution (ARC) during FY 2008109; the payment of future years' ARC; and the prefunding of the remaining unfunded actuarial accrued liability (UAAL) with the proceeds from the Guaranteed Investment Contract (GIC) which matures in October 2009; and 4) approve and authorize the execution of a promissory note between the City and the District stating that any assets remaining in the trust at the conclusion of the Plan will revert back to Fund 025. P14 P15 ALJ'I'HORIZATIONFQR VARIOUS ACIYONS PERTAINING TO THE DISTRICT'S PncE 2 IMPLEMENTATION OF GASB45 TUNE 12.2008 BACKGROUND/ANALYSIS GASB Statement No. 45 (GASB 45) establishes standards for the measurement, recognition, and display of OPEB expense/expenditures, and related liabilities (assets), note disclosures, and, if applicable, required supplementary information in the financial reports of state and local governmental employers. The City and the District are required to implement GASB 45 for fiscal year 2008/09. The City has a stand alone medical program for its active employees. Employees who retire from the City at age 55 or later with at least 10 years of service may choose to continue participating in the medical plan until age 65. There is no cash contribution from the City toward retiree healthcare benefits. An actuarial study, using a PERS approved actuary (Bartel Associates, LLC), was completed to determine if the City had any actuarial liability for the City's retiree healthcare plan under GASB 45. The study determined the City had no actuarial liability. The District's Retiree Healthcare Plan (the Plan) provides 100% of the medical insurance premium for Tier 1 employees (date of hire before November 17, 1994). In 1994, however, the District capped its liability by negotiating an MOU that provided only the legally required PEMHCA minimum contribution towards medical insurance for Tier 2 employees (date of hire on or after November 17, 1994). Historically, the City/District has accounted for retiree healthcare benefits as they were paid. GASB 45 will require the City/District to account for this promise on an accrual basis (as benefits are earned). An actuarial study, using a PERS approved actuary (Bartel Associates, LLC), was completed to determine the present value of these benefits and determine what, if any, liability needs to be reflected in the City/District financial statements. Kev Definitions for Actuarial Stud Actuarial Accrued Liability The portion of the present value of benefits that participants have earned (on an actuarial, not actual, basis) through the valuation date. Normal Cost The portion of the present value of benefits expected to be earned (on an actuarial, not actual, basis) in the coming year. Annual Required Contribution (ARC) The current employer Normal Cost, plus the amortized unfunded actuarial accrued liability or less the amortized excess assets. Simply put, this contribution is the value of benefits earned during the year plus something to move the plan toward being on track for funding. Action #1 The District contracted with Bartel Associates, LLC to perform an actuarial valuation for the District's Retiree Healthcare Plan as of June 30, 2008. Staff is requesting that the Board receive and file this actuarial report (Executive Summary attached) which will be used as a tool to determine the District's ARC, establish the irrevocable trust with CaIPERS (discussed in Action #2 below), and will be used for financial statement disclosure in conjunction with the financial audit for fiscal year 2008/09 and future fiscal years. Staff is also requesting that the Council receive and file P16 AUI'I IORIZATIONFOR VARIOUS ACTIONS PERTAINING TO THE DISTRICT'S PAGE 3 IMPLEMENTATION OF GASB45 JUNE 12, 2008 the City's actuarial report (Executive Summary attached), showing no actuarial liability, to demonstrate compliance with GASB 45. Action #2 In order to reduce or eliminate the Unfunded Actuarial Accrued Liability (UAAL) that is required to be disclosed in the District's audited financial statements beginning in fiscal year 2008/09, the District must deposit all or a portion of the UAAL into an irrevocable trust. The full ARC must also be contributed to the trust in order for the plan to be considered fully funded in accordance with GASB 45. Because the District's healthcare program has historically been provided through CaIPERS; the City/District has selected CaIPERS' Employers' Retiree Benefit Trust (CERBT) Program as the recommended vehicle for pre-funding the required trust. The assets contributed to the trust cannot be legally used for any purpose other than to pay retiree healthcare benefits. The initial prefunding of $2 million plus the Annual Required Contribution (ARC) will reduce the amount of the UAAL disclosed in the fiscal year 2008/09 financial statements. The subsequent funding of the UAAL in October 2009 as a result of the City's GIC maturing will eliminate the UAAL completely, thus requiring no additional disclosure for the UAAL. CaIPERS requires the following agreement and forms to be completed and submitted to them for review and acceptance in order for the District to make contributions to the trust: 1. CERBT Agreement and Election of the Rancho Cucamonga Fire Protection District to Prefund Other Post Employment Benefits Through CaIPERS (attached, two signed originals required) 2. Actuarial Valuation Report (provided to CaIPERS by the District's actuary -Executive Summary attached) 3. Summary of Actuarial Information (provided to CaIPERS in electronic format by the District's actuary) 4. Certification of OPEB Actuarial Information (completed by the District's actuary) 5. Certification of OPEB Funding Policy and GASB 43/45 Reporting Compliance (attached) 6. Delegation of Authority to Request Disbursement (Resolution FD 08-_) (attached) The forms required to be completed by the District are attached for the Board's review and approval. All other required forms from the District's actuary will be provided directly to CaIPERS. Action #3 The City will transfer funds to the District during fiscal year 2008/09 and again in October 2009 to cover the prefunding that the District will place into the irrevocable trust. As consideration for these transfers for the prefunding, the City has eliminated its annual $535,640 transfer to the District beginning in fiscal year 2008/09, and continuing in perpetuity, which was otherwise used to fund Fire District plan check services. This amount is approximately equal to the GIC contribution over the expected term of the trust. Additionally, pursuant to a separately executed promissory note (discussed in Action #4 below), any assets remaining in the trust at the conclusion of the Plan will revert back to Fund 025. Staff is requesting the City Council's authorization to complete these transfers at the appropriate time and the Board's authorization to accept the transfers and forward P17 AUTHORIZATIONFORVARTOUS ACTIONS PERTAINING TO THE DISTRICTS PAGE 4 IMPLEMENTATION OF GASB45 JUNE tz,zoos the prefunding amounts to the trust. Staff is also requesting the Board's authorization to fund the annual ARC for the District. Action #4 As noted in Action #3 above, any assets remaining in the trust at the conclusion of the Plan will revert back to Fund 025. In order to formalize this agreement, staff is requesting that the Council and the Board approve and authorize the execution of a promissory note between the City and the District, to be separately drafted by the City Attorney, that will memorialize the terms noted in this report and ensure that at the expiration of the trust any remaining assets are returned to Fund 025. Staff requests that the Board and the Council approve and authorize Actions #1 through #4 above to facilitate the implementation of GASB 45 for the City and the District during fiscal year 2008/09. Respectfully submitted, Gilli Deputy City Manager/Administrative Services Attachments P18 Rancho Cucamonga Fire Protection District p A ~ ~ ~ _.. ~ ~.._ ~ 12etiree IJealthcare Plan June 30, 2007 Actuarial Valuation Executive Summary June 2008 P19 Executive Summary Rancho Cucamonga Fire Protection District Retiree Healthcare Plan June 30, 2007 Actuarial Valuation On June 21, 2004, the Governmental Accounting Standards Board approved Statement No. 45 (GASB 45), Accounting Standards for Other (than pensions) Post Employment Benefits (OPEB). This report is based on the financial reporting standards established under GASB 45. We understand the District is required to implement GASB 45 for its 2008/09 fiscal yeai . Historically the District has accounted for retiree healthcare benefits as they were paid, projected to be approximately $0.7 million for the 2007/08 fiscal year and $0.8 million for the 2008/09 fiscal year. GASB 45 will require the District to account for this promise on an accrual basis (as benefits are earned). a t ~ ~i ~ .., ~ y e- .ryt;. ~,.!_ a c ~ :". .=STUDY RESULTS 2 , ~... .. , n. ~ ~ . Funded Status: The plan funded status is equal to the Actuarial Accrued Liability (see definitions and assumptions section below) less plan assets. When assets equal liabilities, a plan is considered on track for funding. To consider a retiree healthcare plan funded for GASB 45 purposes, assets must be set aside in a trust that cannot legally be used for any purpose other than to pay retiree healthcare benefits. The District's retiree healthcare plan is not currently funded. This has important implications for the discount rate assumption used to calculate plan liabilities (see definitions and assumptions section below). We have prepared valuation results under 2 scenarios: ^ No Pre-Funding -Benefits paid from the District's general fund which is assumed to eam a 4.50% long-term rate of return. ^ Pre-Funding -Contributions made to an irrevocable trust through CaIPERS with diversified assets which are assumed to earn a 7.75% long-term return. The following table summarizes the plan's June 30, 2007 funded status (OOOs omitted): No Prc-Funding Yre-Funding 4.50% 7.75% ^ Actuarial Accrued Liability (AAL) • Actives $11,648 $ 7,131 • Retirees 14,070 9 384 • Total $25,7]8 $16,515 ^ Plan Assets 0 0 ^ Unfunded AAL (UAAL) $25,718 $16,515 ~ Assumes the District was a Phase I] GASB 34 implementer. t ~)`~ June 4, 2008 P20 Executive Summary Rancho Cucamonga Fire Protection District Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Page 2 Annual Required Contribution (ARC): GASB 45 doesn't require an agency make up any shortfall (unfunded liability) itnmediately, nor does it allow an immediate credit for any excess assets. Instead, the difference is amortized over time. An agency's Annual Required Contribution is nothing more than the current employer Normal Cost, plus the amortized unfunded liability or less the amortized excess assets. Simply put, this contribution is the value of benefits earned during the year plus something to move the plan toward being on track for funding. For the District's valuation we calculated the 2008/09 ARC as the Normal Cost plus a 30-yeah amortization (as a level percent of pay) of the Unfunded Actuarial Accrued Liability (OOOs omitted): No Pre-Funding Pre-Funding 4.50% 7.75% ^ Normal Cost $ 658 $ 298 ^ UAAL Amortization 1.107 1,084 ^ 2008/09 Annual Required Contribution $ 1,765 $ 1,382 ^ Annual Required Contribution as a percentage of estimated 2008/09 payroll 22.7% 17.8% ^ Estimated 2008/09 Payroll $7,769 $7,769 Net OPEB Obligation (NOO): An agency's Net OPEB Obligation is the historical difference (from implementation)' between actual contributions made and the Annual Required Contributions°. If an agency has always contributed the required contribution, then the Net OPEB Obligation equals zero. However, an agency has not "made" the contribution unless it has been set aside and cannot legally be used For any other purpose. Annual OPEB Cast (AOC): GASB 45 requires the Annual OPEB Cost equal the Annual Required Contribution, except when an agency has a Net OPEB Obligation at the beginning of the year.. When that happens an agency's Annual OPEB Cost will equal the ARC, adjusted for expected interest on the Net OPEB Obligation and reduced by an amortization of the Net OPEB Obligation (OOOs omitted): No Pre-Funding Pre-Funding 4.50% 7.75% ^ 2008/09 Annual Required Contribution $ 1,765 $ 1,382 ^ Interest on Net OPEB Obligation 0 0 ^ Amortization of Net OPEB Obligation 0 0 ^ Tota] 2008/09 Annual OPEB Cost $ ],765 $ 1,382 ~ Maximum allowed under GASB 45. r GASB 45 specifies the initial Net OPEB Obligation (at implementation) be set to zero. ° Benefits paid for current retirees are considered contributions. ~.i June 4, 2008 ~'tU P21 Executive Summary Rancho Cucamonga Fire Protection District Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Page 3 The following illustrates the District's June 30, 2009 Net OPEB Obligation if the District adopts GASB 45 for the 2008/09 fiscal year (OOOs omitted): No Pre-funding Pre-funding 4.5% 7.75% ^ June 30, 2008 Net OPEB Obligation $ 0 $ 0 ^ 2008/09 Annual OPEB Cost 1,765 1,382 ^ 2008/09 Contributions 778 s 1 382 b ^ June 30, 2009 Net OPEB Obligation $ 987 $ 0 The District's actual June 30, 2009 Net OPEB Obligation will differ slightly from the above because actual benefit payments will be different from estimated. Cash and Accrual Projection: Following are District contribution illustrations for three funding approaches assuming the number of active District employees remains constant (OOOs omitted): ^ No Pre-Funding: The District contributes only the pay-as-you-go cost ^ Pre-funding Scenario A: The District will contribute 100% of ARC with two additional lump sum contributions: $2 million in 2008/09 and $15.] million in 2009/10. Note that the $15.1 million was determined to pay off the entire UAAL at 6/30/10. ^ Pre-funding Scenario B: The District will contribute $17.6 million in 2008/09, in addition to the pay-as-you-go cost. The District will contribute full ARC thereafter. Note that the $17.6 million was determined to pay off the entire UAAL at 6/30/09. Pay-As-You- Pre-Fundine Year Go Cost Scenario A Scenario B 2008/09 $ 778 $ 3,382 $ 18,345 2009/10 882 16,418 308 2010/]1 983 318 318 2011/12 1,087 328 328 2012/13 1,187 339 339 2013/14 1,299 350 350 2014/15 1,412 361 361 2015/16 1,532 373 373 2016/17 1,661 385 385 2017/18 1,770 397 397 If the District chooses to continue the pay-as-you-go method, the Net OPEB Obligation will increase to approximately $8.9 million at June 30, 2018. Sensitivity: The above results are based on a 30-year amortization of the unfunded liability. Following illustrates the impact of changing the amortization period to 20 years (OOOs omitted): s Estimated 2008/09 benefit payments. c Assumes full ARC is contributed. ``~ ~ June 4, 2008 ~~.+ v P22 Executive Summary Rancho Cucamonga Fire Protection District Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Page 4 No Pre-Funding Pre-Funding 4.50% 7.75% ^ 30-year amortization • Total 2008/09 ARC $ $ 1,765 $ 1,382 • Total 2008/09 ARC % 22.7% 17.8% ^ 20-year amortization • Total 2008/09 ARC $ $ 2,226 $ 1,662 • Total 2008/09 ARC % 28.7% 21.4% 'i'= l ; . June 4, 2008 ~~% P23 Executive Summary Rancho Cucamonga Fire Protection District Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Page 5 BASIC,DEFIIVITION$ AND ASSUMPTIONS "' 1 ' . . .. '. A Present Value of Benefits: When an actuary prepares an actuarial valuation, (s)he first gathers participant data (including active employees, former employees not in payment status, participants and beneficiaries in payment status) at the valuation date (for example June 30, 2007). Using this data and actuarial assumptions, (s)he projects future benefit payments. (The assumptions predict, among other things, when people will retire, terminate, die or become disabled, as well as what salary increases, general (and healthcare) inflation and investment return might be.) Those future benefit payments aze discounted, using expected future investment return, back to the valuation date. This discounted present value is the plan's present value of benefits. It represents the amount the plan needs as of the valuation date to pay all future benefits - if all assumptions are met and no future contributions (employee or employer) are made. The District's June 30, 2007 retiree healthcare Present Value of Benefits is $31.1 million using a 4.50% discount rate ($18.5 million using a 7.75% discount rate), with $14.1 million of this for former employees who have already retired ($9.4 million using a 7.75% discount rate). Actuarial Accrued Liability: This represents the portion of the presto[ value of benefits that participants have earned (on an actuarial, not actual, basis) through the valuation date. The District's June 3Q, 2007 retiree healthcare Actuarial Accmed Liability is $25.7 million using a 4.50% discount rate ($16.5 million using a 7.75% discount rate), with $14.1 million of this for former employees who have already retired ($9.4 million using a 7.75% discount rate). Normal Cost: The Normal Cost represents the portion of the present value of benefits expected to be earned (on an actuarial, not actual, basis) in the coming year. The District's 2008/09 retiree healthcare Normal Cost is 50.7 million (8.5% of payroll) using a 4.50% discount rate and $0.3 million using a 7.75% discount rate (3.8% of payroll). Actuarial Cost Method: This determines the method in which benefits are actuarially earned (allocated) to each year of service. It has no effect on the Present Value of Benefits, but has significant effect on the Actuarial Accmed Liability and Normal Cost. The District's June 30, 2007 retiree healthcare valuation was prepared using the Entry Age Normal level percentage of pay cost method. Actuarial Assumptions: Under GASB 45, an actuary must follow current actuarial standazds of practice, which generally call for explicit assumptions -meaning each individual assumption represents the actuary's best estimate. GASB 45 requires that the discount rate is based on the source of funds used to pay benefits. This means the underlying expected long-term rate of return on plan assets for funded plans. Furthermore, since the source of funds for an unfunded plan is usually the genera] fund and California law restricts agencies' investment vehicles, this valuation uses a relatively low, 4.50%, discount rate. If the District establishes a Trust (that could only be used to pay plan benefits) using CaIPERS Section I ] 5 Tmst then the discount rate would be based on the Trust's expected long-term investmem return (established by CaIPERS at 7.75%). Another key assumption is future healthcare inflation rates. The inflation rate for HMO's starts at 10.4% (the increase in 2008 premiums over 2007) and grades down to 4.5% (2017 premiums over 2016) and r ~-~._~ ~ June 4, 2008 ~~' - P24 Executive Summary Rancho Cucamonga Fire Protection District Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Page 6 remains at 4.5% into the future. The inflation rate for PPO's starts at 1 ].3% (the increase in 2008 premiums over 2007) and grades down to 4.5% (2017 premiums over 20 ] 6) and remains a[ 4.5% into [he future. This assumption means healthcaze is assumed to increase, on the average, 7.4% for HMO's and 7.9% for PPO's a year for the next 10 years. Furthermore, since the valuation's general inflation assumption is 3%, it also means healthcare is assumed to level off at 1.5% over general inflation. 5 ~.., w ... .. ..~ .{,. ` BENEFIT PROMISE ., ~'' ^ Eligibility • Full time employees service and disability retirement from the District • Continue participating in PEMHCA after retirement • Ca1PERS service retirement - 50& 5 Tire 1 Tier 2 ^ Medical Benefit DOH<ll/17!94 DOH>ll/17/94 • District pays 100% of • Retirees pay ful] cost for medical insurance premium medical insurance through for participant and family PEMHCA • District pays PEMHCA rninimum employer contribution • 2007 PEMHCA min: 580.80/month ^ Surviving Spouse • Contribution continues to surviving spouse and dependents Benefit ^ Dental, Vision, Life None t I ~.)~-i R~ June 4, 2008 ~(L% P25 City of Rancho Cucamonga . ,-. Retiree Healthcare Plan June 3Q, 2007 Actuarial Valuation Executive Summary June 2008 P26 Executive Summary City of Rancho Cucamonga Retiree Healthcare Plan June 30, 2007 Actuarial Valuation On June 21, 2004, the Governmental Accounting Standazds Board approved Statement No. 45 (GASB 45), Accounting Standards for Other (than pensions) Post Employment Benefits (OPEB). GASB 45 will require agencies account for retiree medical benefits on an accmal basis (as benefits are earned). This report summarizes the results of our GASB 45 actuarial study for the City. <~. __ __ '~... :STUDY RESULTS -- _ - - -., _ _ Background: The City has a stand alone medical program for its active employees. Employees who retire from the City at age SS or later with at least ]0 years of service may choose to continue participating in the medical plan until age 65. There is no cash contribution from the City toward retiree healthcare benefits. The City hired Bartel Associates [o prepare the June 30, 2007 actuarial valuation for GASB 45 required reporting and disclosure information. Our initial valuation, based on 2007 premium structure, showed a GASB 45 liability related to the implied subsidy. An implied subsidy exists when the premium for retirees are determined by aggregating the experience of the actives and retirees, resulting in lower retiree premiums than if the retiree premiums were determined independently. For example, assume the average premium for actives and non-Medicare eligible retirees is $600 per month. The underlying medical cost varies by age and gender and might actually be $300 per month fora 40 year-old active employee and $900 per month fora 60 year-old retiree. In this case, the premium for the younger employee is subsidizing $300 of the older retiree's cost. New 2008 Premium Rates: Early in 2008, the City asked us to determine whether an implied subsidy still exists using new 2008 premium rates for Kaiser (effective January 1, 2008) and Blue Cross (effective June 1, 2008). The new premium rates for early retirees are much higher than those for active employees. We performed the implied subsidy analysis for the new 2008 premium rates. Conclusion: We conclude there is no actuarial liability for the City's retiree healthcare plan under GASB 45. This conclusion may change in the future depending on future premium rates and participants coverage election. I~ ~~ ~ June 4, 2008 ~~ ~) P27 Executive Summary City of Rancho Cucamonga Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Pagc 2 .., ` ? ~, BENEFIT SUNIMARY,~ ;,. •~ ;; q_ ^ Eligibility • Full time employees directly retire from the City • Service or disability retirement • Age 55 and ]0 years of City service ^ Medical Benefit • Retirees allowed to participate in the City's health plan up to age 65 • No City contribution ^ Surviving Spouse Benefit • None ^ Dental, Vision, Life • None l~. ~ f June 4, 2008 ~~ P28 CALIFORNIA EMPLOYER'S RETIREE BENEFIT TRUST PROGRAM ("CERBT") AGREEMENT AND ELECTION OF Rancho Cucamonga Fire Protection District TO PREFUND OTHER POST EMPLOYMENT BENEFITS THROUGH CaIPERS WHEREAS (1) Government Code Section 22940 establishes in the State Treasury the Annuitants' Health Care Coverage Fund for the prefunding of health care coverage for annuitants (Prefunding Plan); and WHEREAS (2) The California Public Employees' Retirement System (CaIPERS) Board of Administration (Board) has sole and exclusive control and power over the administration and investment of the Prefunding Plan (sometimes also referred to as CERBT), the purposes of which include, but are not limited to (i) receiving contributions from participating employers and establishing separate Employer Prefunding Accounts in the Prefunding Plan for the performance of an essential governmental function (ii) investing contributed amounts and income thereon, if any, in order to receive yield on the funds and (iii) disbursing contributed amounts and income thereon, if any, to pay for costs of administration of the Prefunding Plan and to pay for health care costs or other post employment benefits in accordance with the terms of participating employers' plans; and WHEREAS (3) Rancho Cucamonga Fire Protection District (NAME OF EMPLOYER) (Employer) desires to participate in the Prefunding Plan upon the terms and conditions set by the Board and as set forth herein; and WHEREAS (4) Employer may participate in the Prefunding Plan upon (i) approval by the Board and (ii) filing a duly adopted and executed Agreement and Election to Prefund Other Post Employment Benefits (Agreement) as provided in the terms and conditions of the Agreement; and WHEREAS (5) The Prefunding Plan is a trust fund that is intended to perform an essential governmental function within the meaning of Section 115 of the Internal Revenue Code as an agent multiple-employer plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 43 consisting of an aggregation of single-employer plans, with pooled administrative and investment functions; Rev 04/25/2008 P29 NOW, THEREFORE, BE IT RESOLVED THAT EMPLOYER HEREBY MAKES THE FOLLOWING REPRESENTATION AND WARRANTY AND THAT THE BOARD AND EMPLOYER AGREE TO THE FOLLOWING TERMS AND CONDITIONS: A. Representation and Warranty Employer represents and warrants that it is a political subdivision of the State of California or an entity whose income is excluded from gross income under Section 115 (1) of the Internal Revenue Code. B. Adoption and Approval of the Agreement; Effective Date; Amendment (1) Employer's governing body shall elect to participate in the Prefunding Plan by adopting this Agreement and filing with the CaIPERS Board a true and correct original or certified copy of this Agreement as follows: Filing by mail, send to: CaIPERS Constituent Relations Office CERBT(OPEB) P.O. Box 942709 Sacramento, CA 94229-2709 Filing in person, deliver to: CaIPERS Mailroom Attn: Employer Services Division 400 O Street Sacramento, CA 95814 (2) Upon receipt of the executed Agreement, and after approval by the Board, the Board shall fix an effective date and shall promptly notify Employer of the effective date of the Agreement. (3) The terms of this Agreement may be amended only in writing upon the agreement of both CaIPERS and Employer, except as otherwise provided herein. Any such amendment or modification to this Agreement shall be adopted and executed in the same manner as required for the Agreement. Upon receipt of the executed amendment or modification, the Board shall fix the effective date of the amendment or modification. (4) The Board shall institute such procedures and processes as it deems necessary to administer the Prefunding Plan, to carry out the purposes of this Agreement, and to maintain the tax exempt status of the Prefunding Plan. Employer agrees to follow such procedures and processes. Rev 04/25/2008 P30 C. Actuarial Valuation and Employer Contributions (1) Employer shall provide to the Board an actuarial valuation report on the basis of the actuarial assumptions and methods prescribed by the Board. Such report shall be for the Board's use in financial reporting, shall be prepared atleast as often as the minimum frequency required by GASB Statement No. 43, and shall be: (a) prepared and signed by a Fellow or Associate of the Society of Actuaries who is also a Member of the American Academy of Actuaries or a person with equivalent qualifications acceptable to the Board; (b) prepared in accordance with generally accepted actuarial practice and GASB Statement Nos. 43 and 45; and, (c) provided to the Board prior to the Board's acceptance of contributions for the valuation period or as otherwise required by the Board. (2) The Board may reject any actuarial valuation report submitted to it, but shall not unreasonably do so. In the event that the Board determines, in its sole discretion, that the actuarial valuation report is not suitable for use in the Board's financial statements or if Employer fails to provide a required actuarial valuation, the Board may obtain, at Employer's expense, an actuarial valuation that meets the Board's financial reporting needs. The Board may recover from Employer the cost of obtaining such actuarial valuation by billing and collecting from Employer or by deducting the amount from Employer's account in the Prefunding Plan. (3) Employer shall notify the Board of the amount and time of contributions which contributions shall be made in the manner established by the Board. (4), Employer contributions to the Prefunding Plan may be limited to the amount necessary to fully fund Employer's actuarial present value of total projected benefits, as supported by the actuarial valuation acceptable to the. Board. As used throughout this document, the meaning of the term "actuarial present value of total projected benefits" is as defined in GASB Statement No. 45. If Employer's contribution causes its assets in the Prefunding Plan to exceed the amount required to fully fund the actuarial present value of total projected benefits, the Board may refuse to accept the contribution. (5) The minimum Employer contribution will be at least $5000 or be equal to Employer's Annual Required Contribution, whichever is less, as that term is defined in GASB Statement No. 45. Contributions can be made at any time following the seventh day after the effective date of the Agreement provided that Employer has first complied with the requirements of Paragraph C. Rev oaizsizooa 3 P31 D. Administration of Accounts, Investments, Allocation of Income (1) The Board has established the Prefunding Plan as an agent plan consisting of an aggregation ofsingle-employer plans, with pooled administrative and investment functions, under the terms of which separate accounts will be maintained for each employer so that Employer's assets will provide benefits only under employer's plan. (2) All Employer contributions and assets attributable to Employer contributions shall be separately accounted for in the Prefunding Plan (Employer's Prefunding Account). (3) Employer's Prefunding Account assets may be aggregated with prefunding account assets of other employers and may be co-invested by the Board in any asset classes appropriate for a Section 115 Trust. (4) The Board may deduct the costs of administration of the Prefunding Plan from the investment income or Employer's Prefunding Account in a manner determined by the Board. (5) Investment income shall be allocated among employers and posted to Employer's Prefunding Account as determined by the Board but no less frequently than annually. (6) If Employer's assets in the Prefunding Plan exceed the amount required to fully fund the actuarial present value of total projected benefits, the Board, in compliance with applicable accounting and legal requrements, may return such excess to Employer. E. Reports and Statements (1) Employer shall submit with each contribution a contribution report in the form and containing the information prescribed by the Board. '(2) The Board shall prepare and provide a statement of Employer's Prefunding Account at least annually reflecting the balance in Employer's Prefunding Account, contributions made during the period and income allocated during the period, and such other information as the Board determines. F. Disbursements (1) Employer may receive disbursements not to exceed the annual premium and other costs of post employment healthcare benefits and other post employment benefits as defined in GASB 43. (2) Employer shall notify CaIPERS in writing in the manner specified by CaIPERS of the persons authorized to request disbursements from the Prefunding Plan on behalf of Employer. Rev 04/25/2008 4 P32 (3) Employer's request for disbursement shall be in writing signed by Employer's authorized representative, in accordance with procedures established by the Board. The Board may require that Employer certify or otherwise establish that the monies will be used for the purposes of the Prefunding Plan. (4) Requests for disbursements that satisfy the requirements of paragraphs (2) and (3) that are received on or after the first of a month will be processed by the 15r" of the following month. (For example, a disbursement request received on or between March 1st and March 31st will be processed by April 15th; and a disbursement request received on or between April 1 st and April 30th will be processed by May 15th.) (5) CaIPERS shall not be liable for amounts disbursed in error if it has acted upon the instruction of an individual authorized by Employer to request disbursements. In the event of any other erroneous disbursement, the extent of CaIPERS' liability shall be the actual dollar amount of the disbursement, plus interest at the actual earnings rate but not less than zero. (6) No disbursement shall be made from the Prefunding Plan which exceeds the balance in Employer's Prefunding Account. G. Costs of Administration Employer shall pay its share of the costs of administration of the Prefunding Plan, as determined by the Board. H. Termination of Employer Participation in Prefunding Plan (1) The Board may terminate Employer's participation in the Prefunding Plan if: (a) Employer gives written notice to the Board of its election to terminate; (b) The Board finds that Employer fails to satisfy the terms and conditions of this Agreement or of the Board's rules or regulations. (2) If Employer's participation in the Prefunding Plan terminates for any of the foregoing reasons, all assets in Employer's Prefunding Account shall remain in the Prefunding Plan, except as otherwise provided below, and shall continue to be invested and accrue income as provided in Paragraph D. (3) After.Employer's participation in the Prefunding Plan terminates, Employer may not make contributions to the Prefunding Plan. Rev 04/25/2008 5 P33 (4) After Employer's participation in the Prefunding Plan terminates, disbursements from Employer's Prefunding Account may continue upon Employer's instruction or otherwise in accordance with the terms of this Agreement. (5) After thirty-six (36) months have elapsed from the effective date of this Agreement: (a) Employer may request a trustee to trustee transfer of the assets in Employer's Prefunding Account. Upon satisfactory showing to the Board that the transfer will satisfy applicable requirements of the Internal Revenue Code and the Board's fiduciary duties, then the Board shall effect the transfer within one hundred twenty (120) days. The amount to be transferred shall be the amount in the Employer's Prefunding Account as of the disbursement date and shall include investment earnings up to the investment earnings allocation date immediately preceding the disbursement date. In no event shall the investment earnings allocation date precede the transfer by more than 120 days. (b) Employer may request a disbursement of the assets in Employer's Prefunding Account. Upon satisfactory showing to the Board that all of Employer's obligations for payment of post employment health care benefits and other post employment benefits and reasonable administrative costs of the Board have been satisfied, then the Board shall effect the disbursement within one hundred twenty (120) days. The amount to be disbursed shall be the amount in the Employer's Prefunding Account as of the disbursement date and shall include investment earnings up to the investment earnings allocation date immediately preceding the disbursement date. In no event shall the investment earnings allocation date precede the disbursement by more than 120 days. (6) After Employer's participation in the Prefunding Plan terminates and at such time that no assets remain in Employer's Prefunding Account, this Agreement shall terminate. (7) If, for any reason, the Board terminates the Prefunding Plan, the assets in Employer's Prefunding Account shall be paid.to Employer after retention of (i) amounts sufficient to pay post employment health care benefits and other post employment benefits to annuitants for current and future annuitants described by the employer's current substantive plan (as defined in GASB 43), and (ii) amounts sufficient to pay reasonable administrative costs of the Board. (8) If Employer ceases to exist but Employer's Prefunding Plan continues to exist and if no provision has been made by Employer for ongoing payments to pay post employment health care benefits and other post employment benefits to annuitants for current and future annuitants, the Board is authorized to and shall appoint a third party administrator to carry out Employer's Prefunding Plan. Any and all costs associated Rev 04/25/2008 6 P34 with such appointment shall be paid from the assets attributable to contributions by Employer. (g) If Employer should breach the representation and warranty set forth in Paragraph A., the Board shall take whatever action it deems necessary to preserve the tax-exempt status of the Prefunding Plan. I. General Provisions (1) Books and Records. Employer shall keep accurate books and records connected with the performance of this Agreement. Employer shall ensure that books and records of subcontractors, suppliers, and other providers shall also be accurately maintained. Such books and records shall be kept in a secure location at the Employer's office(s) and shall be available for inspection and copying by CaIPERS and its representatives. (2) Audit. (a) During and for three years after the term of this Agreement, Employer shall permit the Bureau of State Audits, CaIPERS, and its authorized representatives, and such consultants and specialists as needed, at all reasonable times during normal business hours to inspect and copy, at the expense of CaIPERS, books and records of Employer relating to its performance of this Agreement. (b) Employer shall be subject to examination and audit by the Bureau of State Audits, CaIPERS, and its authorized representatives, and such consultants and specialists as needed, during the term of this Agreement and for three years after final payment under this Agreement. Any examination or audit shall be confined to those matters connected with the performance of this Agreement, including, but not limited to, the costs of administering this Agreement. Employer shall cooperate fully with the Bureau of State Audits, CaIPERS, and its authorized representatives, and such consultants and specialists as needed, in connection with any examination or audit. All adjustments, payments, and/or reimbursements determined to be necessary by any examination or audit shall be made promptly by the appropriate party. (3) Notice. (a) Any notice, apprdval, or other communication required or permitted under this Agreement will be given in the English language and will be deemed received as follows: Rev 04/25/2008 ~ P35 Personal delivery. When personally delivered to the recipient. Notice is effective on delivery. 2. First Class Mail. When mailed first class to the last address of the recipient known to the party giving notice. Notice is effective three delivery days after deposit in a United States Postal Service office or mailbox. Certified mail. When mailed certified mail, return receipt requested. Notice is effective on receipt, if delive ry is confirmed by a return receipt. 4. Overnight Delivery. When delivered by an overnight delivery service, charges prepaid or charged to the sender's account, Notice is effective on delivery, if delivery is confirmed by the delivery service. Telex or Facsimile Transmission. When sent by telex or fax to the last telex or fax number of the recipient known to the party giving notice. Notice is effective on receipt, provided that (i) a duplicate copy of the notice is promptly given by first-class or certified mail or by overnight delivery, or (ii) the receiving party delivers a written confirmation of receipt. Any notice given by telex or fax shall be deemed received on the next business day if it is received after 5:00 p.m. (recipient's time) or on a nonbusiness day. 6. E-mail transmission. When sent bye-mail using software that provides unmodifiable proof (i) that the message was sent, (ii) that the message was delivered to the recipient's information processing system, and (iii) of the time and date the message was delivered to the recipient along with a verifiable electronic record of the exact content of the message sent. Addresses for the purpose of giving notice are as shown in Paragraph B.(1) of this Agreement. (b) Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an actor omission of the party to be notified shall be deemed effective as of the first date that said notice was refused, unclaimed, or deemed undeliverable by the postal authorities, messenger or overnight delivery service. (c) Any party may change its address, telex, fax number, ore-mail address by giving the other party notice of the change in any manner permitted by this Agreement. Rev 04/25/2008 P36 (d) All notices, requests, demands, amendments, modifications or other communications under this Agreement shall be in writing. Notice shall be sufficient for all such purposes if personally delivered, sent by first class, registered or certified mail, return receipt requested, delivery by courier with receipt of delivery, facsimile transmission with written confirmation of receipt by recipient, ore-mail delivery with verifiable and unmodifiable proof of content and time and date of sending by sender and delivery to recipient. Notice is effective on confirmed receipt by recipient or 3 business days after sending, whichever is sooner. (4) Modification This Agreement may be supplemented, amended, qr modified only by the mutual agreement of the parties. No supplement, amendment, or modification of this Agreement shall be binding unless it is in writing and signed by the party to be charged (5) Survival All representations, warranties, and covenants contained in this Agreement, or in any instrument, certificate, exhibit, or other writing intended by the parties to be a part of their Agreement shall survive the termination of this Agreement until such time as all amounts in Employer's Prefunding Account have been disbursed. (6) Waiver No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy shall be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. (7) Necessary Acts, Further Assurances The parties shall at their own cost and expense execute and deliver such further documents and instruments and shall take such other actions as may be reasonably required or appropriate to evidence or carry out the intent and purposes of this Agreement. Rev 04/25/2008 n P37 A majority vote of Employer's Governing Body at a public meeting held on the 12~n day of the month of June in the year 2~~8 ,authorized entering into this Agreement. Signature of the Presiding Officer: Printed Name of the Presiding Officer: L. Dennis Michael, Vice President Name of Governing Body: Name of Employer: Date: Board of Directors Rancho Cucamonga Fire Protection District BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY KENNETH W. MARZION ACTUARIAL AND EMPLOYER SERVICES BRANCH CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM To be completed by CaIPERS The effective date of this Agreement is: Rev 04/25/2008 ~ O P38 CERTIFICATION OF OPEB FUNDING POLICY & GASB 43/45 REPORTING COMPLIANCE C As the employer, I certify that our funding policy is to contribute consistently an amount at least equal to 100 % of the ARC. The California Employers' Retiree Benefit Trust (CERBT) fund plan includes more than 200 members. We understand that, under GASB 43, paragraph 33, as an employer participating in the CaIPERS CERBT, we must obtain an actuarial valuation on at least a biennial basis. We understand that we will be asked to provide accounting information to CaIPERS as required in order to facilitate CaIPERS compliance with GASB 43 reporting requirements, and we agree to make any information requested available to CaIPERS on a timely basis. Our contact information is noted below. We understand that CaIPERS will report aggregated GASB 43 information in the Schedule of Funding Progress and Schedule of Employer Contributions Rancho Cucamonga Fire Protection District Name of Employer Jack Lam, Executive Director Printed Name and Title of Person Signing the Form Signature Tamara L. Layne, Finance Director Designated Employer Contact Name for GASB Reporting (909) 477-2700, ext. 2430 Tamara.Lavne(a~citvofrc.us Phone # Email Address Rev 01/28/2008 P39 RESOLUTION NO. FD 08-~o~O A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, DELEGATING AUTHORITY TO REQUEST DISBURSEMENTS FROM THE CaIPERS CALIFORNIA EMPLOYERS' RETIREE BENEFIT TRUST (CERBT) FOR THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT'S RETIREE HEALTHCARE PLAN WHEREAS, the Rancho Cucamonga Fire Protection District is required to implement Governmental Accounting Standards Board (GASB) Statement No. 45 for fiscal year 2008/09; and WHEREAS, the District must deposit all or a portion of its Unfunded Actuarial Accrued Liability (UAAL) into an irrevocable trust in order to reduce or eliminate the UAAL that is required to be disclosed in the District's audited financial statements beginning in fiscal year 2008/09; and WHEREAS, the District has selected the CaIPERS California Employers' Retiree Benefit Trust (CERBT) Program as the trustee for the District's Retiree Healthcare Plan. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, HEREBY RESOLVES, that the Board delegates to the incumbents in the positions of FINANCE DIRECTOR and SENIOR ACCOUNTANT authority to request on behalf of the Employer disbursements from the Other Post Employment Prefunding Plan and to certify as to the purpose for which the disbursed funds will be used. Please see the following page /or formal adoption, certification and signatures Resolution No. FD OS-_ Page 2 of 2 PASSED, APPROVED, AND ADOPTED this 12`h day of June 2008. AYES: NOES: ABSENT: ABSTAINED: Donald J. Kurth, M.D., President ATTEST: Debra J. Adams, CMC, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the Board of Directors of the Rancho Cucamonga Fire Protection District, at a Special Meeting of said Board of Directors held on the 12`~ day of June 2008. Executed this _ day of June 2008, at Rancho Cucamonga, California. P40 Debra J. Adams, CMC, City Clerk T H E C I T Y O F RANCHOCUCAMO~NGA Staff Report DATE: June 12, 2008 TO: Mayor and Members of the City Council President and Members of the Fue District Board Jack Lam, City Manager FROM: John R..Gillison, Deputy City Manager/Administrative Services SUBJECT: Approval of Annual Salary Resolutions No. 06-209, 06-238 (B), FD 006-003, FD 06-038 and FD 06-049 for FY 2008-2009 Recommendation Staff recommends that the City Council/Board approve the annual salary resolutions consistent with all applicable MOU's and classifications. Res ttully Submitted John R. Gillison Deputy City Manager/Administrative Services P41 Staff Report 2008-09 Reclassifications P42 RESOLUTION NO. FD 08- ~~"r) A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT APPROVING SECTION 1, EXHIBITS "E" AND "F" OF SALARY RESOLUTION NUMBERS FD 06-003, FD 06-038 AND FD 06-049 FOR FISCAL YEAR 2008/2009. WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District has determined that it is necessary for the efficient operation and management of the District that policies be established prescribing salary ranges, benefits and holidays and other policies for employees of the Rancho Cucamonga Fire Protection District; and WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District has adopted salary resolutions in Resolution No.'s FD 06-003, FD 06-038 and FD 06-049 that established salary ranges, benefits and other terms of employment for employees of the Rancho Cucamonga Fire Protection District; and WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District recognizes that it is necessary from time to time to amend the salary resolution to accommodate changes in position titles, classifications salary ranges, benefits and other terms of employment; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Rancho Cucamonga Fire Protection District to amend Section 1, Exhibits "E" and "F" of Resolution No.'s FD 06-003, FD 06-038 and FD 06-049. PASSED, APPROVED, AND ADOPTED this day of June 2008. AYES: NOES: ABSENT: ABSTAINED: Donald J. Kurt, MD, President ATTEST: Debra J. Adams, CMC, Secretary P43 Resolution No. FD 06-003 Page 39 of 40 SALARY SCHEDULE AS OF JULY 1, 2008 Adopted at the ~~"• v, zoos Fire Board meeting A B C D E FIRE CAPTAIN 27.10 28.45 29.87 31.37 32.94 Hourly 3,034.82 3,186.56 3,345.88 3,513.18 3,688.84 Bi-Weekly 6,575.43 6,904.20 7,249.41 7„611.89 7,992.48 Monthly FIRE ENGINEER 23.10 24.25 25.46 26.74 28.07 Hourly 2,586.79 2,716.13 2,851.93 2,994.53 3,144.26 Bi-Weekly 5,604.71 5,884.94 6,179.19 6,488.15 6,812.56 Monthly FIREFIGHTER 20.19 21.19 22.25 23.37 24.54 Hourly 2,260.79 2,373.83 2,492.52 2,617.15 2,748.00 Bi-Weekly 4,898.38 5,143.30 5,400.46 5,670.48 5,954.01 Monthly FIRE INSPECTOR 23.10 24.25 25.46 26.74 28.07 Hourly 2,586.79 2,716.13 2,851.93 2,994.53 3,144.26 Bi-Weekly 5,604.71 5,884.94 6,179.19 6,488.15 6,812.56 Monthly HAZARDOUS MATERIAL STIPEND (5 % of Fire Engr. Step E) 1.40 1.40 1.40 1.40 1.40 Hourly 157.21 157.21 157.21 157.21 157.21 Bi-Weekly 340.63 340.63 340.63 340.63 340.63 Monlhly PARAMEDIC STIPEND ( 12.13% of Fire En gr. Step El 3.41 3.41 3.41 3.41 3.41 Hourly 381.40 381.40 381.40 381.40 381.40 Bi-Weekly 826.36 826.36 826.36 826.36 826.36 Monthly CANINE STIPEND (5 % of Fire Engr. Step El ' 1.40 1.40 1.40 1.40 1.40 Hourly 157.21 157.21 157.21 157.21 15721 Bi-Weekly 340.63 340.63 340.63 340.63 340.63 Monthly EXHIBIT "E" P44 Resolution No. FD 06-003 Page 40 of 40 SALARY SCHEDULE AS OF JANUARY 1, 2009 Adopted ai the ~an• 17, 2006 Fire Board meeting A B C D E FIRE CAPTAIN 27.64 29.02 30.47 32.00 33.59 Hourly 3,095.51 3,250.29 3,412.80 3,583.44 3,762.61 Bi-Weekly 6,706.94 7,042.29 7,394.40 7,764.12 6,152.33 Monthly FIRE ENGINEER 23.56 24.74 25.97 27.27 28.64 Hourly 2,638.52 2,770.45 2,908.97 3,054.42 3,207.14 Bi-Weekly 5,716.80 6,002.64 6,302.77 6,617.91 6,948.81 Monthly FIREFIGHTER 20.59 21.62 22.70 23.83 25.03 Hourly 2.306.00 2,421.31 2,542.37 2,669.49 2,802.96 Bi-Weekly 4,996.34 5,246.16 5,508.47 5,783.89 6,073.09 Monthly FIRE INSPECTOR 23.56 24.74 25.97 27.27 28.64 Hourly 2,638.52 2,770.45 2,908.97 3,054.42 .3,207.14 Bi-Weekly 5,716.80 6,002.64 6.302.77 6,617.91 6,948.81 Monlhly HAZARDOUS MATERIAL STIPEND IS % o f Fire Enar. Step E) 1.43 1.43 1.43 1.43 7.43 Hourly 160.36 160.36 160.36 760.36 160.36 Bi-Weekly 347.44 347.44 347.44 347.44 347.44 Monthly , PARAMEDIC STIPEND (12.1 3% of Fire Enar. Step E) 3.47 3.47 3.47 3.47 3.47 Hourly 389.03 389.03 389.03 389.03 389.03 Bi-Weekly 842.89 842.89 842.89 842.89 642.89 Monthly CANINE STIPEND (5 % of Fire En gr. Step E) 1.43 1.43 1.43 1.43 7.43 Hourly 160.36 160.36 160.36 160.36 160.36 Bi-Weekly 347.44 347 44 347.44 347.44 347.44 Monthly EXHIBIT "F" P45 EXHIBIT "E" Resolution No. FD 06-038 FIRE SUPPORT SERVICES ASSOCIATION SALARY SCHEDULE AS OF JULY 1, 2008 Adopted at the August 3 , 2006 Fire Board meeting and amended on June 25, 2007. A B C D E COMMUNICATIONS TECHNICIAN 24.38 25.60 26.86 28.23 29.64 Hourly 1,950.59 2,048.12 2,150.52 2,258.05 2,370.96 Bi-Weekly 4,226.27 4,437.60 4,659.47 4,892.44 .5,137.07 Monthly EMERGENCY MEDICAL SERVICES 37.51 39.38 41.35 43.42 45.59 Hourly ADMINISTRATOR" 3,000.67 3,150.71 3,308.24 3,473.66 3,647.34 Bi-Weekly 6,501.46 6,826.53 7,167.86 7,526.25 7,902.57 Monthly FIELD TRAINING OFFICER 37.94 99.83 41.82 43.91 46.11 Hourly 3,034.81 3,186.55 3,345.88 3,513.18 3,688.84 Bi-Weekly 6,575.43 6,904.20 7,249.41 7,611.89 7,992.48 Monthly FIRE EQUIPMENT MECHANIC 23.22 24.38 25.60 26.88 28.23 Hourly 1,857.70 1,950.59 2,048.12 2,150.53 2,258.05 Bi-Weekly 4,025.02 4,226.27 4,437.59 4,659.47 4,892.45 Monthly FIRE INFORMATION SYSTEMS 22.91 24.05 25.26 26.52 27.84 Hourly TECHNICIAN 1,832.60 1,924.23 2,020.44 2,121.46 2,227.54 Bi-Weekly 3,970.63 4,169.16 4,377.62 4,596.50 4,826.33 Monthly FIRE MARSHAL" 43.93 46.12 48.43 50.85 53.39 Hourly 3,514.19 3,689.90 3,874.39 4,068.12 4,271.52 Bi-Weekly 7,614.08 7,994.78 8,394.52 8,814.25 9,254.96 Monthly FIRE PREVENTION ASSISTANT 10.24 10.75 11.29 11.85 12.44 Hourly TEMPORARY/PART-TIME 818.91 859.85 902.85 947.99 995.39 l3i-Weekly 1,774.30 1,863.02 1,956.17 2,053.98 2,156.68 Monthly FIRE PREVENTION SPECIALIST 24.16 25.36 26.63 27.96 29.36 Hourly INSPECTION 1 1,932.49 2,029.11 2,130.57 2,237.10 2,348.96 Bi-Weekly 4,187.06 4,396.41 4,616.24 4,847.05 5,089.40 Monthly FIRE PREVENTION SPECIALIST 26.63 27.96 29.36 30.83 32.37 Hourly INSPECTION II 2,130.57- 2,237.10 2,348.95 2,466.41 2,589.72 Bi-Weekly 4,616.23 4,847.05 5,089.40 5,343.88 5,611.06 Monthly MAINTENANCE OFFICER 34.92 36.67 38.50 40.42 42.45 Hourly 2,793.57 2,933.25 3,079.92 3,233.91 3,395.61 Bi-Weekly 6,052.74 6,355.38 6,673.15 7,006.81. 7,357.16 Monthly MANAGEMENT ANALYST II"' 31.56 33.14 34.80 36.54 38.37 Hourly 2,525.07 2,651.32 2,783.88 2,923.08 3,069.23 Bi-Weekly 5,470.98 5,744.52 6,031.74 6,333.34 6,650.00 Monthly P46 Resolution No. FD 06-038 A B C D E OFFICE SPECIALIST I 14.95 15.69 16.48 17.30 18.17 Hourly 1,195.70 1,255.49 1,318.26 1,384.18 1,453.39 Bi-Weekly 2,590.69 2,720.23 2,856.24 2,999.05 3,149.00 Monthly OFFICE SPECIALIST 11 16.52 17.34 18.21 19.12 20.08 Hourly 1,321.39 1,387.46 1,456.83 1,529.67 1,606.16 Bi-Weekly 2,863.01 3,006.16 3,156.47 3,314.29 .3,480.00 Monthly PLANS EXAMINER -FIRE 32.08 33.68 35.37 37.13 38.99 Hourly 2,566.22 2,694.54 2,829.26 2,970.73 3,119.26 Bi-Weekly 5,560.15 5,838.16 6,130.07 6,436.57 6,758.39 Monthly PUBLIC EDUCATION 26.63 27.96 29.36 30.83 32.37 Hourly SPECIALIST 2,130.57 2,237.10 2,348.95 2,466.41 2,589.72 Bi-Weekly 4,616.23 4,847.05 5,089.40 5,343.88 5,611.06 Monthly QUALITY IMPROVEMENT 27.79 29.18 30.64 32.77 33.78 Hourly SPECIALIST (Part Time) 2,222.72 2,333.86 2,450.55 2,573.08 2,701.73 Bi-Weekly 4,815.90 5,056.70 5,309.53 5,575.01 5,853.76 Monthly SECRETARY 18.90 19.84 20.83 21.87 22.97 Hourly 1,511.62 1,587.20 1,666.56 1,749.89 1,837.38 Bi-Weekly 3,275.18 3,438.93 3,610.88 3,791.42 3,981.00 Monthly SENIOR ADMINISTRATIVE 24.25 25.47 26.74 28.08 29.48 Hourly SECRETARY 1,939.93 2,036.93 2,138.77 2,245.72 2,358.00 Bi-Weekly 4,203.19 4,413.35 4,634.02 4,865.72 5,109.00 Monthly "Receive 50 hrs. Management Leave per fiscal year, and deferred compensation of 2% base pay. P47 EXHIBIT "F" FIRE SUPPORT SERVICES ASSOCIATION SALARY SCHEDULE AS .OF JANUARY 1, 2009 Adopted at the August 3, 2006 Fire Board meeting and amended on June 25, 2007. A B C D E COMMUNICATIONS TECHNICIAN 24.38 25.60 26.88 28.23 29.64 Hourly 1,950.59 2,048.12 2,150.52 2,258.05 2,370.96 Bi-Weekly 4,226.27 4,437.60 4,659.47 4,892.44 5,137.07 Monthly EMERGENCY MEDICAL SERVICES 37.51 39:38 41.35 43.42 45.59 Hourly ADMINISTRATOR" 3,000.67 3,150.71 3,308.24 3,473.65 3,647.34 Bi-Weekly 6,501.46 6,826.53 7,167.86 7,526.25 7,902.56 Monthly FIELD TRAINING OFFICER 38.69 40.63 42.66 44.79 47.03 Hourly 3,095.51 3,250.29 3,412.80 3,583.44 3,762.61 Bi-Weekly 6,706.94 7,042.29 7,394.40 7,764.12 8,152.33 Monthly FIRE EQUIPMENT MECHANIC 23.22 24.38 25.60 26.88 28.23 Hourly 1,857.70 1,950.59 2,048.12 2,150.53 2,258.05 Bi-Weekly 4,025.02 4,226.27 4,437.59 4,659.47 4,892.45 Monthly FIRE INFORMATION SYSTEMS 23.14 24.29 25.51 26.78 28.12 Hourly TECHNICIAN 1,850.93 1,943.47 2,040.64 2,142.68 2,249.81 Bi-Weekly 4,010.34 4,210.85 4,421.40 4,642.47 4,874.59 Monthly FIRE MARSHAL" 43.93 46.12 48.43 50.85 53.39 Hourly 3,514.19 3,689.90 3,874.39 4,068.12 4,271.52 Bi-Weekly 7,614.08 7,994.78 8,394.52 8,814.25 9,254.96 Monthly FIRE PREVENTION ASSISTANT 10.24 10.75 11.29 11.85 12.44 Hourly TEMPORARYIPART•TIME 818.91 859.85 902.85 947.99 995.39 Bi-Weekly. 1,774.30 1,863.02 1,956.17 2,053.98 2,156.68 Monthly FIRE PREVENTION SPECIALIST 24.49 25.72 27.00 28.35 29.77 Hourly INSPECTION I 1,959.35 2,057.32 2,160.19 2,268.20 2,381.61 Bi-Weekly 4,245.26 4,457.52 4,680.40 4,914.42 5,160.15 Monthly FIRE PREVENTION SPECIALIST 27.00 28.35 29.77 31.26 32.82 Hourly INSPECTION II 2,160.18 2,268.19 2,381.60 2,500.69 2,625.72 Bi-Weekly 4,680.40 4,914.42 5,160.14 5,418.16 5,689.06 Monthly MAINTENANCE OFFICER 34.92 36.67 38.50 40.42 42.45 Hourly 2,793.57 2,933.25 3,079.92 3,233.91 3,395.61 Bi-Weekly 6,052.74 6,355.38 6,673.15 7,006.81 7,357.16 Monthly MANAGEMENT ANALYST 11"'" 32.04 33.64 35.33 37.09 38.95 Hourly 2,563.42 2,691.59 2,826.16 2,967.47 3,115.85 Bi-Weekly 5,554.07 5,831.77 6,123.35 6,429.53 6,751.00 Monthly P48 A B C D E OFFICE SPECIALIST I 15.25 16.01 16.81 17.65 18.54 Hourly 1,220.01 1,281.01 1,345.06 1,412.31 1,482.93 Bi-Weekly 2,643.35 2,775.51 2,914.29 3,060.00 3,213.00 Monthly OFFICE SPECIALIST II 16.85 17.69 18.58 19.51 20.48 Hourly 1,347.97 1,415.36 1,486.13 1,560.44 1,638.46 Bi-Weekly 2,920.59 3,066.62 3,219.95 3,380.95 3,550.00 Monthly PLANS EXAMINER -FIRE 32.08 33.68 35.37 37.13 38.99 Hourly 2,566.22 2,694.54 2,829.26 2,970.73 3,119.26 Bi-Weekly 5,560.15 5,838.16 6,130.07 6,436.57 6,758.39 Monthly PUBLIC EDUCATION 27.00 28.35 29.77 31.26 32.82 Hourly SPECIALIST 2,160.18 2,268.19 2,381.60 2,500.69 2,625.72 Bi-Weekly 4,680.40 4,914.42 5,160.14 5,418.16 5,689.06 Monthly QUALITY IMPROVEMENT 27.79 29.18 30.64 32.17 33.78 Hourly SPECIALIST (Part Time) 2,222.72 2,333.86 2,450.55 2,573.08 2,701.73 Bi-Weekly 4,815.90 5,056.70 5,309.53 5,575.01 5,853.76 Monthly SECRETARY 19.09 20.04 21.04 22.09 23.20 Hourly 1,526.81 1,603.15 1,683.31 1,767.47 1,855.85 Bi-Weekly 3,308.09 3,473.50 3,647.17 3,829.53 4,021.00 Monthly SENIOR ADMINISTRATIVE 24.49 25.73 27.01 28.36 29.77 Hourly SECRETARY 1,959.30 2,057.26 2,160.12 2,268.13 2,381.54 Bi-Weekly 4,245.15 4,457.40 4,680.27 4,914.29 5,160.00 Monthly "Receive 50 hrs. Management Leave per fiscal year, and deferred compensation of 2% base pay. P49 Resolution No. FD 06-049 Page 45 of 46 SALARY SCHEDULE AS OF JULY 1, 2008 Adopted at the October 18, 2006 Fire Board meeting for Fire Management personnel A B C D E F SAFETY FIRE CHIEF 66.94 70.28 73.80 77.49 81.36 85.43 Hourly 5,354.87 5,622.61 5,903.74 6,198.93 6,508.88 6,634.32 Bi-Weekly 11,602.22 12,182.33 12,791.44 13,431.01 14,102.57 14,807.69 Monthly FIRE DEPUTY CHIEF 58.23 61.14 64.20 67.41 70.78 74.32 Hourly 4,658.44 4,891.37 5,135.93 5,392.73 5,662.37 5,945.49 Bi-Weekly 10,093.29 10,597.96 11,127.86 11,684.24 12,268.46 12,881.89 Monthly FIRE BATTALION CHIEF 36.98 38.82 40.77 42.80 44.94 N/A (56 Hour Workweek) 4,141.29 4,348.36 4,565.77 4,794.06 5,033.77 8,972.60 9,421.44 9,892.51 10,387.14 10,906.49 FIRE BATTALION CHIEF 51.77 54.35 57.07 59.93 62.92 N/A (40 Hour Workweek) 4,141.29 4,348.36 4,565.77 4,794.06 5,033.77 8,972.80 9,421.44 9,892.51 10,387,14 10,906.49 EXHIBIT "E" P50 Resolution No. FD 06-049 Page 46 of 46 SALARY SCE-aEDULE AS OF JANUARY 1, 2009 Adopted at the October 18, 2006 Fire Board meeting for Fire Management personnel A B C D E F SAFETY FIRE CHIEF 68.94 72.39 76.01 79.81 5,515.5'1 11 950.28 5,791.29 12 547 80 6,080.86 1 6,384.90 6,704.84 7,039.35 Bi-Weekly , , . 3,175.19 13,833.95 14,525.64 15,251.92 Monthly FIRE DEPUTY CHIEF 59.40 62.36 65.48 68 76 4,751.61 4,989.19 5,238.65 . 5,500.56 72 20 5 775 61 75'80 Hourly 10,295.16 10,809.92 11,350.41 11,917.92 , . 12 513 83 0 kly nf , . 13,1 39.53 Mo hly FIRE BATTALION CHIEF 36.98 36 82 (56 Hour Workweek) 4,141.29 . 4,346.36 40.77 4 565 77 42.80 44.94 N/A 8,972.80 9,421.44 , . 9,892.51 4,794.06 10,367.14 5,033.77 10,906.49 FIRE BATTALION CHIEF 51.77 54.35. 57 07 (40 Hour Workweek) 4,141.29 4,348.36 . 4 565 77 59.93 62.92 N/A 8,972.80 9,421.44 , . 9,892.51 4;794.06 10,387.14 5,033.77 10,906.49 EXHIBIT "F" STAFF REPORT REDEVELOPMENT AGENCY Date: June 12, 2008 To: Chairman and Members of the Redevelopment Agency Board Mayor and Members of the City Council Jack Lam, AICP, Executive Director/City Manager From: Linda D. Daniels, Redevelopment Director RANCHO CUCAMONGA Subject: APPROVAL OF ANNUAL LOAN TRANSACTION BETWEEN THE CITY OF RANCHO CUCAMONGA AND THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY, AND SETTING THE INTEREST RATE ON THE LOAN, AS WELL AS INTER-FUND LOANS RECOMMENDATION: Approve the repayment and re-borrowing of the annual loan amount between the City of Rancho Cucamonga and the Rancho Cucamonga Redevelopment Agency and setting the interest rate on the loan, as well as any inter-fund Agency loans. BACKGROUND/ANALYSIS: In order to receive tax increment revenue, the principal source of redevelopment funding, a Redevelopment Agency must demonstrate existing debt, which will be repaid by the tax increment received. For this purpose, when the Project Area was established in Fiscal Year 1982/83, the City loaned money to the Redevelopment Agency in order to establish initial debt, as well as to provide monies for operations. For debt purposes, the City and Agency have continued to maintain this loan agreement, thus ensuring the Agency's receipt of its full tax increment revenue. During fiscal year 2007/08 the Redevelopment Agency will pay to the City $6,000,000 towards the principal and interest on the City/Agency loan. At the same time, it is also necessary for the Agency to continue its loan agreement with the City, in order to show sufficient debt and receive the full amount of tax increment revenue. Therefore, it is necessary for the City to authorize the Agency to re-borrow the amount of $6,000,000. For the upcoming fiscal year, the interest rate on the total loan between the City and the Agency will be equal to the Local Agency Investment Fund (LAIF) rate as of July 1, 2008. This item appears on both the Agency and City Council Agendas. Respectfully submitted, Linda D. Daniels P51 Redevelopment Director P52 Stiff Report DATE: June 12, 2008 TO: Mayor and Members of City Council FROM: Jack Lam, City M BY: Tamara L. Layne, Finance Director SUBJECT: RECOMMENDATION Staff recommends that the City Council approved the attached resolution to reaffirm the level of fiscal reserves for the City of Rancho Cucamonga. BACKGROUND The most recent fiscal audit conducted for the City was as of June 30, 2007. Annually, the City Council approves the attached resolution reaffirming the level of reserves included in the Comprehensive Annual Financial Report (CAFR) as of June 30, 2007. Respectfully submitted, Jack Lam City Manager I:Ifinancelbudget20091City Council staffreportslreaffirming level of reserves-City 08-09.doc P53 RESOLUTION NO. 08-~30 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA REAFFIRMING THE LEVEL OF FISCAL RESERVES FOR THE CITY OF RANCHO CUCAMONGA WHEREAS, the Rancho Cucamonga City Council desires to protect existing services, and; WHEREAS, the Rancho Cucamonga City Council desires to be prepared for emergencies, and; WHEREAS, the Rancho Cucamonga City Council desires to maintain good fiscal management and fiscal structure to operate a municipal corporation, and; WHEREAS, the Rancho Cucamonga City Council desires to maintain the financial strength required to obtain beneficial bond ratings for the City; NOW, THEREFORE, the City Council of the City of Rancho Cucamonga, California does hereby resolve on this 12`h day of June 2008 that the level of fiscal reserves maintained by the City of Rancho Cucamonga as stated in the Comprehensive Annual Financial Report dated June 30, 2007 are hereby reaffirmed. BE IT FURTHER RESOLVED, the funding goal for the Changes in Economic Circumstances reserve is hereby reaffirmed at a level of a minimum six- month operating reserve in the City's General Fund; the funding goal for the City Facilities' Capital Repair reserve is 15% of capital assets value; and the funding goal of the Working Capital reserve is 5% of the City's General Fund budget for the upcoming fiscal year. P54 Resolution No. 08- Page 2 PASSED, APPROVED, AND ADOPTED this 12~h day of June 2008. AYES: NOES: ABSENT: ABSTAINED: Donald J. Kurth, M.D., Mayor ATTEST: Debra J. Adams, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at an adjourned meeting of said City Council held on the 12~h day of June 2008. Executed this _ day of June 2008, at Rancho Cucamonga, California. Debra J. Adams, City Clerk i:Ifinancel6udget20081City Council staff reportslresolution reaffirming level of reserves-City 07-08.doc STAFF REPORT CITY OF RANCHO CUCAMONGA RANCHO Date: June 12, 2008 C,,UCAMONGA To: Mayor and Members of the City Council Jack Lam, AICP, City Manager From: Linda D. Daniels, Redevelopment Director Subject: APPROVAL OF A RESOLUTION IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 33445 WHICH AUTHORIZES THE REDEVELOPMENT AGENCY TO EXPEND FUNDS FOR LAND AND PUBLIC IMPROVEMENTS THAT ARE OF BENEFIT TO THE PROJECT AREA RECOMMENDATION Approve the attached Resolution, which authorizes the Redevelopment Agency to expend Agency funds on public improvements that are of benefit to the Project Area. BACKGROUND Health and Safety Code Section 33445 requires both the Redevelopment Agency and the City Council adopt Resolutions that indicate the intent on spending Agency funds on land and public improvements (including buildings, facilities, structures or other improvements that are to be publicly owned). ANALYSIS The attached Resolution complies with the requirements of Health and Safety Code Section 33445 and makes the necessary findings: that the projects are of benefit to the Project Area; there is no other reasonable means of financing the projects; and the improvements will assist in the elimination of blight within the Project Area. The Resolution includes Appendix 1, which outlines the public improvement projects that the Agency plans to fund. This item also appears on the Redevelopment Agency agenda. `R~eLs'p'ectfully submitted, ~~/ ~SCLPa.J ~. Linda D. Daniels Redevelopment Director P55 Attachment: 33445 Resolution RESOLUTION NO. ~ + I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, REGARDING PROJECTS BENEFITING THE RANCHO REDEVELOPMENT PROJECT AND MAHING CERTAIN FINDINGS IN REGARD A. Recitals. (i) The Community Redevelopment Law of the State of California (Health and Safety Code Sections 33000 et seq.), among other provisions granting powers to redevelopment agencies, contains Section 33445 which provides that a redevelopment agency, with the consent of the legislative body, may pay al] or part of the value of land for and the cost of installation and construction of any buildings, facilities, structures or other improvements which are publicly owned either within or without a project area, upon a determination by such agency and such legislative body by resolution that such buildings, facilities, structures or other improvements are of benefit to such project area; that no other means of financing the same are available to the community; and, that the payment of funds for same will assist in the elimination of one or more blighting conditions inside the project area. (ii) Attached as Appendix "1" is a document which provides for the Agency's funding of certain capital projects from tax increment resources in estimated amounts (the "Public Projects"). (iii) The officially adopted Rancho Redevelopment Plan of the Rancho Cucamonga Redevelopment Agency (the "Agency"), including all amendments, provides in part for the construction of these community and cultural facilities to serve said project area. (iv) All legal prerequisites to the adoption of this Resolution related to the Public Projects have occurred. B. Resolution. NOW, THEREFORE, the City Council of the City of Rancho Cucamonga does hereby find, determine and resolve as follows: Section 1. This Council hereby finds that the facts set forth in the Recitals, Part A, of this Resolution are true and correct. Section 2. The City of Rancho Cucamonga hereby consents to the Rancho Cucamonga Redevelopment Agency's funding of the costs and expenses related to the Public Projects specified in Appendix "1" hereto pursuant to Health and Safety Code Section 33445. P56 Section 3. This Council hereby specifically finds and determines that the construction of the Public Projects by and through Agency's funding will be of benefit to the Agency's Rancho Redevelopment Project. P57 Section 4. The Council hereby specifically finds and determines that no other reasonable means of financing is available to the community to construct the Public Projects other than through the Agency's funding thereof and consented to herein. Section 5. This Council hereby specifically finds and determines that the construction of the Public Projects specified in Appendix "1" and this Agency's funding thereof will assist in the elimination of one or more blighting conditions inside the project area and is consistent with this Agency's implementation plan adopted pursuant to Health and Safety Code section 33490. Section 6. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, and ADOPTED this 12th day of June, 2008 AYES: NOES: ABSENT: ABSTAINED: Donald J. Kurth, M.D., Mayor ATTEST: Debra J. Adams, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Rancho Cucamonga, California, at a regular meeting of said City Council, held on the 12`h day of June, 2008. Executed this 13`h day of June, 2008 at Rancho Cucamonga, California. Debra J. Adams, City Clerk P58 APPENDIX 1 Project Location Estimated Cost Anticipated Source(s) of Fundin Metrolink Transit Facility East side of Milliken $2,000,000 Tax Increment and Parking area Avenue, north of 6`h Tax Allocation Bond Funds Street Family Sports Center South side of San $2,110,000 Tax Increment Bernardino Road, east Tax Allocation Bond Funds of Vineyard Avenue Family Resource Center South side of Arrow $1,000,000 Tax Increment Highway, east of Tax Allocation Bond Funds Archibald Avenue Animal Care and North side of Arrow $2,000,000 Tax Increment Adoption Center Highway, west of Tax Allocation Bond Funds Rochester Avenue East Avenue Storm Drain East Avenue between $16,000,000 Tax Increment Arrow and 4`h Street Tax Allocation Bond Funds Demens Basin No. 2 South of Hillside $2,500,000 Tax Increment reclamation Avenue, west side of Tax Allocation Bond Funds Hellman Avenue Chaffey Isle House West side of Etiwanda $100,000 Tax Increment Restoration Avenue, north of Base Tax Allocation Bond Funds Line Road P59 Staff Report DATE: June 12, 2008 TO: Mayor and Members of the City Council President and Members aFthe Fne Dishid Board Jack Lam, City Manager FROM: John R. Gillison, Deputy City Manager/Administrative Services SUBJECT: Approval of Annual Salary Resolutions No. 06-209, 06-238 (B), FD 006-003, FD 06-038 and FD 06-049 for FY 2008-2009 Recommendation Staff recommends that the City Council/Board approve the annual salary resolutions consistent with all applicable MOU's and classifications. Res ecttully Submitted ~i~ John R. Gillison Deputy City Manager/Administrative Services Staff Report 2008-09 Reclassifications P60 RESOLUTION NO. O8- I°~,, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING SECTION 1, EXHIBITS "E" AND "F" OF SALARY RESOLUTION NUMBERS 08-209 AND O6-238(6) FOR FISCAL YEAR 2008/2009. WHEREAS, the City Council of the City of Rancho Cucamonga has determined that it is necessary for the efficient operation and management of the City that policies be established prescribing salary ranges, benefits and holidays and other policies for employees of the City of Rancho Cucamonga; and WHEREAS, the City Council of the Ciry of Rancho Cucamonga has adopted salary resolutions in Resolution No.'s 06-209 and 06-238(6) that established salary ranges, benefits and other terms of employment for employees of the City of Rancho Cucamonga; and WHEREAS, the City Council of the City of Rancho Cucamonga recognizes that it is necessary from time to time to amend the salary resolution to accommodate changes in position titles, classifications salary ranges, benefits and other terms of employment; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rancho Cucamonga, California to amend Section 1, Exhibits "E" and "F" of Resolution No.'s 06-209 and 06-238(6). PASSED, APPROVED, AND ADOPTED this day of June 2008. AYES: NOES: ABSENT: ABSTAINED: Donald J. Kurt, MD, Mayor ATTEST: Debra J. Adams, CMC, City Clerk P61 EXHIBIT E SECTION 1: Salary Ranges Effective July 2008 ASSIGNMENTS OF EXECUTIVE CLASSIFICATIONS TO PAY RANGES Minimum Control Point Maximum Class Title Step Amount Step Amount Step Amount Animal Services Director 1562 7,310 1602 8,924 1632 10.364 Assistant Cit Clerk/ Records M r. 1514 5,754 1554 7,024 1584 8,158 Assistant Cit Mana er 1637 10,626 1677 12,972 1707 15,066 Buildin 8~ Safe Official 1577 7,878 1617 9,617 1647 11,169 Cit Mana er 1734 17,238 1774 21.044 1804 24,440 Communit Services Director 1595 8,618 1635 10,521 1665 12,219 Deput Cit Mana er/Admin.Serv. 1615 9,522 1655 11,624 1685 13,500 De ut Ci Mana er/Comm.Dev. 1615 9,522 1655 11,624 1685 13,500 En Svs Director/Ci En ineer 1596 8,661 1636 10,573 1666 12,280 Finance Director 1597 8,704 1637 10,626 166T 12,341 Human Resources Director 1579 7,957 1619- 9.714 1649... 11,281 Libra Director 1579 7,957 :: 1619 9,714 1649 11,281 Plannin Director 1589 8,364 1629 10,210 1659 11,858 Public Works Services Director 1577 7,878 1617 9,617 1647 11,169 Redevelopment Director 1608 9.195 1648 11,225 1678 13,037 Fire Chief A 11.602.22 F 14.807.69 EXHIBIT F SECTION 1: Salary Ranges Effective January 2009 ASSIGNMENTS OF EXECUTIVE CLASSIFICATIONS TO PAY RANGES Minimum Control Point Maximum Class Title Step Amount Step Amount Step Amount Animal Services Director 1562 7,310 1602 8,924 1632 10.364 Assistant Cit Clerk/ Records M r. 1514 5,754 1554 7,024 1584 8,158 Assistant Cit Mana er 1637 10,626 1677 12.972 1707 15.066 Buildin & Safet Official 1577 7,878 1617 9,617 1647 11,169 Cit Mana er 1734 17,238 1774 21.044 1804 24,440 Communit Services Director 1595 8,618 1635 10,521 1665 12.219 Deput Ci Mana er/Admin.Serv. 1615 9.522 1655 11,624 1685 13.500 Deput Ci Mana er/Comm.Dev. 1615 9,522 1655 11,624 1685 13,500 En Svs Director/Cit En ineer 1596 8,661 1636 10,573 1666 12,280 Finance Director 1597 8,704 1637 10,626 1667 12,341 Human Resources Director 1579 7.957 1619 9,714 1649 11.281 Libra Director 1579 7,957 1619 9,714 1649 11,281 Plannin Director 1589 8,364 1629 10,210 1659 11,858 Public Works Services Director 1577 7.878 1617 9,617 1647 11,169 Redevelo ment Director 1612 9,380 1652 11,452 1682 13.300 Fire Chief A 1 i ,950.28 F 15,251.92 Executive Amended July 2008 P62 EXHIBIT E Resolution No. SECTION 1: (B) Salary Ranges Effective July 2008 (As Amended June 2008) ASSIGNMENTS OF CLASSIFICATIONS TO PAY RANGES Minimum Control Point Maximum Class Title ~ Step Amount Step Amount Step Amount Account Clerk 4375 2,850 4415 3,480 ~ 4425 3,658 Account Technician 4420 3,568 4460' 4,355 4470. 4,578 Accountant# 3465 4,462 3505 ; , 5,448 3515 5,726 Accounting Manager* 2525 6,019 2565 7,348 2575 7,724 Administrative Secreta ' 4422 3,603 4462..: 4,399 4472 4,624 Administrative Technician 4434. 3,826 4474. 4,670 4484 4,909 Animal Care Attendant 4345 2,454 `4385 ` 2,996 4395 3,149 Animal Caretaker - 4378 2,893 4418 3,532 4428 _ 3,713 Animal Center Manager ` 2506 5,475 2546 6,684 :2556 7,026 Animal Handler 4388: 3,041 4428 3,713 _4438. 3,903 Animal Services Dispatcher 4365 2,712 4405 ~ 3,310 4415 3,480 Animal Services Officer 4441 3,962 4481 4,836 4491 5,084 Assistant City Clerk # 3480 4,809 .3520 5,871 3530 6,171 Assistant City Engineer'' .2590 8,324 2630 10,162 2640 10,682 Assistant Electrician 5430- 3,747 5470 4,574 5480 .; 4,808 Assistant Engineer# ~ 3488 5,005 3528 6,110 3538 6,422 Assistant Library Director* 2572 7,610 2612 9,290 2622 9,765 Assistant Planner# 3468. ' 4,530 - 350.8 5,530 3518, 5,813 Assistant Planning Director* 25$3 8,039 2623 9,814 2633. 10,315 Assistant to the City Manager'' 2548 6,751 2588 8,242 2598 8,663 Associate Engineer# 3518 5,813 3558- 7,096 3568 7,459 Associate Planner# 3487 4,980 3527 6,079 3537 6,390 Benefits Technician 4395 3,149 :4435 3,845 4445 4,041 Box Office Coordinator ~ 4450' 4,143 .4490 5,058 4500 5,317 Budget Analyst# 3495 5,183 3535 6,327 3545 6,650 Buildin Ins ection Su ervisor##2 ~ 3501 ' 5,340 3541 6,519 3551 6,852 Buildin Ins ector2 4461 4,377 4501 5,344 4511 5,617 Business License Clerk 4378 2,893 -4418 3,532 4428 3,713 Business License Inspector 4418 3,532 4458 4,312 4468 4,533 Business License Program Coordinator# :3432 3,785 3472 4,621 3482 4,857 Business License Technician ' 4408 3,360 4448. 4,102 4458 4,312 Buyer I ~ 4411- 3,411 .4451 4,164 4461 4,377 Buyer II # 3433 3,804 3473. 4,644 3483 4,882 Code Enforcement Officer 4441 3,962 4481 4,836 4491- 5,084 Code Enforcement Su ervisor#2 3481 4,833 3521 5,900 3531 6,202 July 2008 (Amended June 2008) P63 Community Programs Coordinator :4450. 4,143 -4490 5,058 4500. 5,317 Community Programs Specialist 4434 3,826 ; 4474 4,670 `4484 4,909 Community Services Coordinator 4450. 4,143 -4490 5,058 4500 5,317 Community Services Marketing Coord 4450 4,143 4490 5,058 4500 5,317 Community Services Superintendent* 2536.. 6,359 2576 7,763 .2586 8,160 Community Services Supervisor# 3480 4,809 `3520 5,871 3530 6,171 Community Services Technician 4434 3,826 4474 4,670 4484 4,909 Community Svc Marketing Manager* 2536 6,359 2576 _` 7,763 2586 8,160 Deputy City Clerk# 3430 3,748 3470 4,575 3480 4,809 Economic Development Manager* 2537 6,391 2577.. 7,802 2587 8,201 Electrician 5457 4,287 5497 5,234 5507 5,502 Engineering Aide 4421 3,585 4461 4,377 4471 4,601 Engineering Technician 4441: 3,962 4481 4,836 4491 5,084 Environmental Pro rams Ins ecto~ 4460 ~ 4,355 4500 5,317 4510 5,589 Environmental Programs Manager" .2539. 6,455 2579. 7,880 2589 8,283 E ui ment O erator2 5421 3,583 5461 4,374 5471 4,597 Executive Assistant* 2458 ,': 4,309 2498 5,261 2508 5,530 Facilities Superintendent* 2536 ` 6,359 " 2576 ~ 7,763 2586 8,160 Fleet Su ervisor#2 3480 4,809 3520 5,871 3530 6,171 GIS Analyst 4456 4,269 4496 5,212 4506 5,479 GIS Technician 4436 3,864 4476 4,717 4486 4,958 GIS/Special District Manager* 2538 6,423 2578 7,841 2588, 8,242 Housing Projects Manager* 2537 6,391 2577 ` 7,802 2587 8,201 Human Resources Officer* ~ 2584 8,079 2624, 9,863 2634 10,367 Information Services Analyst I# 3505 5,448 3545 6,650 3555 6,991 Information Services Analyst II# 3520 ' 5,871 3560 7,167 3570 7,534 Information Services Manager* 2584 8,079 2624 9,863 2634 10,367 Information Services Projects Coord# 3505 ; 5,448 3545. 6,650 .3555 6,991 Information Services Specialist I 4456 4,269 4496 5,212 ~ 4506 5,479 Information Services Specialist II 4471 4,601 4511 5,617 4521,. 5,904 Invento S ecialist E ui ment/Matz 5389 3,054 5429 3,729 5439 3,919 Lead Maintenance Worker2 - 5429 3,729 5469 4,552 5479 4,785 Lead Mechanic 5440 3,939 5480 4,808 5490 5,054 Librarian I# 3435 3,842 3475 4,691 3485 4,930 Librarian II# :.3457 4,288 3497 5,235 3507 5,502 Library Assistant t# 3373 2,820 3413 ' 3,443 3423 3,619 Library Assistant II# 3414 3,460 .3454,: 4,224 3464 4,440 Library Clerk 4356 2,593 4396 3,165 4406 3,327 Library Page 4241 1,461 4281 1,784 4291 1,875 Library Page II 4290 1,865 4330 2,277 4340 2,394 Library Services Manager* 2506 5,475 2546 6,684 2556 7,026 Maintenance Coordinator 5448 4,099 5488 5,004 5498 5,260 Maintenance Su ervisor#z 3484 4,906 3524 5,989 3534 6,295 July 2008 (Amended June 2008) P64 Maintenance Worker2 5391. 3,085 5431 3,766 5441 3,958 Management Aide 4436 3,864 4476 4,717 4486 4,958 Management Analyst I# 3466 4,485 3506 5,475 3516 5,755 Management Analyst II# 3495 5,183 3535 6,327 3545 6,650 Management Analyst III# 3512 5,641 3552 6,887 3562 7,239 Mechanic2 •.5430.- 3,747 5470 4,574 5480 4,808 Office Services Clerk 4365 2,712 4405. 3,310 4415 3,480 Office Specialist I 4345 2,454 4385 2,996 4395 3,149 Office Specialist II 4365 2,712 4405 3,310 4415 3,480 Park/Landsca a Maintenance Su t*2 2536 6,359 2576 7,763 2586 8,160 Personnel Clerk 4385 2,996 4425 3,658 4435- 3,845 Personnel Services Coordinator# 3467 4,507 3507 5,502 3517 5,784 Plan Check 8~ Inspection Manager* 2533 ` 6,264 2573 7,648 2583: 8,039 Planning Commission Secretary#$ 3442 3,979 3482 4,857 3492. 5,106 Planning Specialist 4443 4,001 4483 4,885 4493 5,135 Planning Technician 4423 3,621 ~ 4463 4,421 4473 4,647 Plans Examiner# 3482 4,857 3522 5,930 3532 6,233 Principal Librarian* 2495 5,183 2535 6,327 2545 6,651 Principal Management Analyst* 2540 6,487 2580 7,919 2590 8,324 Principal Planner* 2537 6,391 2577 7,802 2587 8,201 Public Services Technician I 4409 3,377 4449 4,123 4459 4,334 Public Services Technician II 4419 3,550 .4459. 4,334 4469 4,555 Public Services Technician III 4439 3,922 4479 4,788 4489 5,033 Public Works Ins ector 12 4440 3,942 4480 4,812 4490. 5,058 Public Works Ins ector 112 4460 4,355 4500. 5,317 4510 5,589 Public Works Maintenance Manager* .2566 7,385 2606 9,016 2616 9,477 Public Works Safe Coordinator #2 3468 4,530 3508 5,530 3518 5,813 Purchasing Clerk 4374 2,836 ~ 4414 3,462 4424. 3,640 Purchasing Manager* 2530 6,171 2570 7,534 2580 7,919 Records Clerk 4354. 2,567 4394 3,134 .4404 3,294 Records Coordinator 4382 2,952 4422. 3,603 4432 3,788 Redevelopment Analyst I # - ~ 3468 4,530 3508 5,530 3518 5,813 Redevelopment Analyst II # 3487 4,980 3527 6,079 3537 6,390 Risk Management Coordinator# 3466 4,485 3506 5,475 3516 5,755 Secreta ' 4392 3,103 4432 3,788 4442 3,981 Senior Account Clerk 4395 3,149 4435 3,845 4445. 4,041 Senior Account Technician 4443 4,001 4483 4,885 4493 5,135 SeniorAccountant# 3495 5,183 3535 6,327 3545 6,650 Senior Administrative Secreta ' 4442 3,981 .4482 4,860 4492 5,109 Senior Animal Services Officer# 3461 4,374 3501 5,340 3511 5,613 Senior Buildin Ins ector#2 3481 4,833 3521 5,900 .3531 6,202 Senior Buyer# 3463 4,418 3503 5,394 3513 5,669 Senior Civil Engineer* 2547 6,717 2587 8,201 2597 8,620 July 2008 (Amended June 2008) P65 Senior Code Enforcement Officer# 3461 4,374 3501 5,340 3511 5,613 Senior Electrician # 3485 4,930 3525 6,019 3535 6,327 Senior GIS Technician # 3484 4,906 -3524 5,989 3534 6,295 Senior Information Services Analyst# 3535 6,327 .:3575. 7,724 3585. 8,119 Senior Information Services Specialist 4493 5,135 4533 6,268 4543 6,589 Senior Librarian# 3468 4,530 3508 5,530 3518 5,813 Senior Maintenance Workerz 5401 3,243 5441 3,958 545 4,161 Senior Park Planner# 3500 5,313 3540 6,487 3550 6,818 Senior Planner* 2517 5,784 2557 7,061 2567 7,422 Senior Plans Examiner# 3497 5,235 3537 6,390 3547 6,717 Senior Special Districts Technician 4440 3,942 4480 4,812 4490 5,058 Si nal 8~ Li htin Coordinator2 5475 4,690 551.5 5,726 5525: 6,018 Signal & Lighting Technician 5448 ., 4,099 5488 5,004 5498 5,260 Special Districts Analyst# 3495' 5,183 3535 6,327 3545 6,650 Special Districts Technician '" 4434 ' 3,826 4474 4,670 4484 - 4,909 Street/Storm Drain Maintenance Su t*2 2536 6,359 2576 7,763 2586 8,160 Su ervisin Public Works Ins ector#2 3490 5,055 3530 6,171 3540 6,487 Technical Production Coordinator 4460 4,355 4500 5,317 4510 5,589 Traffic Engineer* 2565 7,348 2605 8,971 2615 9,430 Theatre Technician III 4423 3,621 4463 4,421 .4473 4,647 Utility Operations Manager* :2524 5,989 2564 7,312 2574 7,686 Veterinarian* 2577 7,802 2617 ~ 9,524 2627. 10,011 Veterinary Assistant ~ 4404 3,294 4444 4,021 4454 4,227 Veterinary Technician 4434. 3,826 ` 4474 4,670 4484- 4,909 July 2008 (Amended June 2008) P66 Minimum Control Point Maximum Part Time Positions Ste Amount Ste Amount -, :Ste Amount Account Clerk .6368 ` 15.87 6408 19.37 6418 20.36 Administrative Intern 6320 12.48 6360 15.24 6370: 16.03 Animal Services Officer 6441 - 22.84 6481 27.88 6491. 29.31 Assistant Pool Mana er 6305 11.60 6345 14.16 6355 14.87 Box Office Assistant- 6290 10.76 6330 13.13 6340 13.81 Box Office S ecialist 6311. 11.95 6351 14.58 6361. 15.33 Business License Clerk 6378 16.69 6418 20.38 6428 21.42 Environmental Resources Intern 6280 10.23 6320. 12.48 6330 13.13 Instructor/Guard I 6240:... 8.38 6280 10.23 6290 10.76 Instructor/Guard II 6280 10.23 6320 12.48 6330 13.13 Libra Aide 623.7. 8.25 6277. 10.09 6287. 10.59 Librarian I 6433:. 21.95 6473 26.79 ..6483 28.16 Libra Assistant I -6362 , 15.41 6402 18.81 6412 19.77 Libra Assistant II 6404 ~; 18.99 6444. 23.20 6454 24.37 Libra Clerk 6346 14.22 6386 17.37 6396 18.25 Libra Pa e 6237 8.25 6277 10.09 6287 10.59 Libra Pa a II 6280 10.23 6320 12.48 6330 13.13 Maintenance Technician2 X280 10.23 6320 12.48 6330 13.13 Office S ecialist I 6332 ~ ' 13.25 6372 16.19 6382 17.02 Office S ecialist II :6352:'' 14.65 :6392 17.89 6402. 18.80 Outreach Technician ~ 6311 ._ 11.95 6351 14.58 6361. 15.33 Plannin Aide 6320 12.48 6360 15.24 6370 16.03 Pool Mana er 6329 13.07 6369 15.95 6379 16.76 Pro ram S ecialist 6311 11.95 6351 14.58 6361 15.33 Purchasing Clerk 6368 15.87 6408 19.37 6418 20.37 Receptionist 6342 13.94 6382 17.02 6392 17.89 Records Clerk 6344 14.08 6384 17.19 6394 18.08 Records Coordinator 6372 16.19 6412 19.77 6422 20.78 Recreation Attendant 6237 8.25 6277 10.09 6287 10.59 Recreation Assistant 6266.... 9.54 6306 11.65 6316 12.26 Recreation Leader 6290"`: 10.76 6330 13.13 6340 13.81 Senior Civil En ineer 6543 37.99 6583 46.37 6.593 48.75 Theatre Technician I 6311' 11.95 6351 14.58 6361 15.33 Theatre Technician II ~ 6372 16.19 6412. 19.77 6422 20.78 Veterina Assistant 6404 19.00 6444 23.20 6454 24.39 Veterina Technician ~ 6434 22.06 6474 26.93 6484 28.31 ~' When acting as Clerk to Commissions $50 paid per night or weekend day meeting. Compensatory time off can be substituted in lieu of $50 at the option of the employee. 2' Up to $200 provided annually toward purchase of approved safety footwear from a city designated vendor. $ Denotes $50.00 paid per night or weekend day meeting; discontinues when this position is vacated as long as this position is classified "Supervisory/Professional." # Denotes SupervisorylProfessional Class Denotes Management Class July 2008 (Amended June 2008) P67 EXHIBIT F Resolution No. SECTION 1: (B) Salary Ranges Effective January 2009 (As Amended June 2008) ASSIGNMENTS OF CLASSIFICATIONS TO PAY RANGES Minimum Control Point Maximum Class Title Step Amount Step... Amount Step Amount Account Clerk 4375 ' 2,850 4415 3,480 4425 3,658 Account Technician 4423. 3,621 4463 4,421 4473 4,647 Accountant# 3465 4,462 3505 " 5,448 3515 5,726 Accounting Manager* ` -2525'.. 6,019 2565 7,348 2575 ~ 7,724 Administrative Secreta ' 4424 3,640 4464 4,443 4474. 4,670 Administrative Technician 4437 3,883 4477 4,741 -_4487 4,983 Animal Care Attendant 4349 2,504 4389 3,057 4399 ~ 3,213 Animal Caretaker 4378 2,893 4418 3,532 4428 3,713 Animal Center Manager'` 2506 ~ 5,475 2546'.. 6,684 2556 7,026 Animal Handler 4388 3,041 4428 3,713 .4438 - 3,903 Animal Services Dispatcher 4369 2,766 4409 ~ 3,377 .4419. 3,550 Animal Services Officer 4441 3,962 .4481 4,836 4491 5,084 Assistant City Clerk # 3480 4,809 3520 5,871 3530. 6,171 Assistant City Engineer* 2590 I 8,324 2630, 10,162 2640 10,682 Assistant Electrician 5430 3,747 5470 4,574 5480. 4,808 Assistant Engineer# 3488 5,005 3528 6,110 3538 6,422 Assistant Library Director* Assistant Planner# 2572 3468.- 7,610 4,530 2612 3508 9,290 5,530 2622 3518 9,765 5,813 Assistant Planning Director` 2583 8,039 2623 9,814 2633 10,315 Assistant to the City Manager'` 2548 6,751 25.88 8,242 2598 8,663 Associate Engineer# 3518 5,813 3558 7,096 3568 7,459 Associate Planner# 3487 4,980 3527 6,079 3537 6,390 Benefits Technician .4399 3,213 4439 3,922 4449 4,123 Box Office Coordinator 4450 4,143 4490 5,058 4500. 5,317 Budget Analyst# 3498 5,261 3538 6,422 3548 6,751 Buildin Ins ection Su ervisor#2 3504 5,421 3544. 6,617 3554 6,956 Buildin Ins ector2 4464 4,443 4504 5,424 4514 5,702 Business License Clerk 4378 2,893 4418 3,532 4428 3,713 Business License Inspector 4418 3,532 4458 4,312 4468 4,533 Business License Program Coordinator# 3432 3,785 3472 4,621 3482 4,857 Business License Technician 4408 3,360 4448 4,102 4458 4,312 Buyer I ~ 4411 3,411 4451 4,164 4461 4,377 Buyer II # 3433 3,804 3473 4,644 3483 4,882 Code Enforcement Officer 4441 3,962 4481. 4,836 4491 5,084 Code Enforcement Su ervisor#2 3481.. 4,833 3521 5,900 3531 6,202 January 2009 (Amended June 2008) P68 Community Programs Coordinator 4450 4,143 4490 5,058 4500 5,317 Community Programs Specialist 4437 3,883 4477 4,741 4487. 4,983 Community Services Coordinator .4450 4,143 ~ `4490- 5,058 4500 5,317 Community Services Marketing Coord 4450 4,143 4490 5,058 4500 5,317 Community Services Superintendent* 2536 6,359 2576 7,763 2586 8,160 Community Services Supervisor# 3480 4,809 3520. 5,871 3530 6,171 Community Services Technician 4437: 3,883 4477 4,741 4487 4,983 Community Svc Marketing Manager* 2536 6,359 ' ` 2576 7,763 2586. 8,160 Deputy City Clerk# 3430 3,748 3470 4,575 3480 4,809 Economic Development Manager* 2537 6,391 2577' 7,802 2587 8,201 Electrician 5457. 4,287 `• 5497 5,234 ~ 5507 5,502 Engineering Aide 4421 3,585 ` 4461 4,377 4471. 4,601 Engineering Technician 4441" 3,962 4481 4,836 4491. 5,084 Environmental Pro rams Ins ectorz 4464 4,443 4504 5,424 .4514 5,702 Environmental Programs Manager* 2539 6,455 2579 7,880 2589 8,283 E ui ment O eratorz 5425 3,655 5465 4,462 5475 4,690 Executive Assistant* ~ 2460 4,353 _,: 2500 5,314 2510 5,585 Facilities Superintendent* 2536 6,359 2576 7,763 2586 8,160 Fleet Su ervisor#z 3480, 4,809 3520 ` 5,871 3530 6,171 GIS Analyst 4456 4,269 4496 5,212 4506 5,479 GIS Technician 4436 3,864 4476 4,717 4486 4,958 GIS/Special District Manager* 2538 6,423 2578 7,841 .2588 8,242 Housing Projects Manager ' - 2537 6,391 2577 7,802 2587 8,201 Human Resources Officer* 2584 8,079 2624 9,863 ..2634 10,367 Information Services Analyst I# 3505 5,448 3545 6,650 3555 6,991 Information Services Analyst II# 3520 5,871 3560 7,167 3570. 7,534 Information Services Manager* 2584 8,079 - 2624 9,863 2634 10,367 Information Services Projects Coord# 3508 5,530 3548 6,751 3558 7,096 Information Services Specialist I 4456 4,269 4496- 5,212 4506 5,479 Information Services Specialist II 4471 4,601 4511 5,617 4521 5,904 Invento S ecialist E ui ment/Matz 5389. 3,054 5429 3,729 5439 3,919 Lead Maintenance WorkerZ 5429 3,729 .5469 4,552 5479 4,785 Lead Mechanic 5440 3,939 5480 > 4,808 .5490 5,054 Librarian I# 3435 3,842 3475 4,691 ~ 3485 4,930 Librarian II# 3457 4,288 3497 5,235 3507 5,502 Library Assistant I# 3373 2,820 3413. 3,443 3423 3,619 Library Assistant II# 3414 3,460 3454. 4,224 3464 4,440 Library Clerk 4356 2,593 4396 3,165 4406 3,327 Library Page 4244 1,483 4284 1,810 4294. 1,903 Library Page II 4293 1,894 4333 2,312 4343 2,430 Library Services Manager* .2506 5,475 2546 6,684 2556 7,026 Maintenance Coordinator 5452 4,182 5492 5,105 5502 5,366 Maintenance Su ervisor#~ 3488 5,005 3528 6,110 3538 6,422 January 2009 (Amended June 2008) P69 Maintenance Workerz " 5391 3,085 5431 ~ 3,766 5441: 3,958 Management Aide 4440 3,942 4480 4,812 4490 5,058 Management Analyst I# '3470: 4,575 3510- 5,585 3520 5,871 Management Analyst II# 3498 5,261 3538 6,422 3548' 6,751 Management Analyst III# 3515 5,726 - 3555 - 6,991 3565 7,348 Mechanic2 5430: 3,747 _.5470 4,574 5480 4,808 Office Services Clerk 4369 2,766 ` 4409 3,377 4419 3,550 Office Specialist I 4349 '< 2,504 4389 3,057 4399 3,213 Office Specialist II 4369 2,766 4409 3,377 4419 3,550 Park/Landsca a Maintenance Su t*z 2536: 6,359 2576 7,763 2586 8,160 Personnel Clerk 4389. ':` 3,057 4429: 3,731 4439, " 3,922 Personnel Services Coordinator# 3471 " 4,598 3511 5,613 3521, - 5,900 Plan Check & Inspection Manager'' 2533 6,264 ' 2573 7,648 2583 8,039 Planning Commission Secretary#$ 3444 4,019 3484 4,906 3494 5,157 Planning Specialist 4443 4,001 4483 4,885 4493 5,135 Planning Technician -4423 " 3,621 4463 4,421 447.3 4,647 Plans Examiner# -3482 4,857 " 3522 5,930 35,32,. 6,233 Principal Librarian* 2495: 5,183 2535 6,327 2545 6,651 Principal Management Analyst* 2543 6,585 2583 8,039 2.593 8,450 Principal Planner* ~ 2537 6,391 2577 7,802 2587 8,201 Public Services Technician I 4413 3,445 4453 4,206 4463 4,421 Public Services Technician II 4423 3,621 4463 4,421 4473 4,647 Public Services Technician III 444.3 4,001 4483 4,885 4493 5,135 Public Works Ins ector 12 4444 4,021 4484 4,909 4494 5,160 Public Works Ins ector 112 -.. 4464 4,443 4504 5,424 4514 5,702 Public Works Maintenance Manager* 2566 7,385 2606 9,016 2616 9,477 Public Works Safe Coordinator #z 3468 4,530 3508 5,530 3518 5,813 Purchasing Clerk 4374 2,836 4414 - 3,462 4424 3,640 Purchasing Manager* `2530 ~ 6,171 2570 ' 7,534 2.580 7,919 Records Clerk '~ 4358 2,619 43.98 3,197 4408 , 3,360 Records Coordinator 4386`' 3,011 " 4426 3,676 4436 3,864 Redevelopment Analyst I # - '- 3468 4,530 `3508 5,530 351.8 5,813 Redevelopment Analyst II # ~ 348'7 4,980 3527 6,079 3537 6,390 Risk Management Coordinator# 3470- 4,575 3510 5,585 3.520 5,871 Secreta ' 4394 3,134 4434 3,826 4444- 4,021 Senior Account Clerk 4395 3,149 ..4435. 3,845 4445 4,041 Senior Account Technician 4446 4,062 4486 4,958 4496. 5,212 Senior Accountant# 3498 5,261 3538 6,422 3548 6,751 Senior Administrative Secreta ' 4444 4,021 4484 4,909 4494 5,160 Senior Animal Services Officer# ~ 3461 4,374 -3501 5,340 3511: 5,613 Senior Buildin Ins ector#2 3484 4,906 3524 5,989 3534 6,295 Senior Buyer# 3463 4,418 3503 5,394 3513. 5,669 Senior Civil Engineer* 2547 6,717 2587 8,201 2597 8,620 January 2009 (Amended June 2008) P70 Senior Code Enforcement Officer# 3461 4,374 3501 5,340 3511 5,613 Senior Electrician # 3485 4,930 3525.. 6,019 3535 6,327 Senior GIS Analyst # 3484 4,906 3524 5,989 - 3534 6,295 Senior Information Services Analyst# 3535 6,327 3575 7,724 35$5 8,119 Senior Information Services Specialist 4493 5,135 4533 6,268 4543. 6,589 Senior Librarian# 3468 4,530 3508 5,530 3518 5,813 Senior Maintenance Worker2 5401 3,243 5441 3,958 5451 4,161 Senior Park Planner# 3500- 5,313 3540 6,487 -3550 6,818 Senior Planner* 2517 5,784 2557 7,061 2567 7,422 Senior Plans Examiner# .3497 5,235 3537 6,390 3547 6,717 Senior Special Districts Technician .4443 4,001 4483 4,885 4493 5,135 Si nal & Li htin Coordinator2 5479 4,785 5519 5,841 5529 6,140 Signal & Lighting Technician 5452 4,182 5492 5,105 5502 5,366 Special Districts Analyst# 3498 5,261 3538 6,422 _3548. 6,751 Special Districts Technician 4437 3,883 4477 4,741 4487_ 4,983 Street/Storm Drain Maintenance Su t"2 2536 6,359 2576 7,763 2586 8,160 Su ervisin Public Works Ins ector#2 .3494 5,157 3534 6,295 3544 6,617 Technical Production Coordinator 4460 4,355 4500 5,317 4510 5,589 Theatre Technician III 4423 3,621 4463 4,421 4473 4,647 Traffic Engineer* 2569 7,496 2609 9,152 2619 9,620 Utility Operations Manager* 2524. 5,989 2564. 7,312 2574 7,686 Veterinarian* 2579 7,880 2619 9,620 .2629. 10,112 Veterinary Assistant 4407. 3,344 4447 4,082 4457 4,291 Veterinary Technician 4437 3,883 4477. 4,741 4487 4,983 January 2009 (Amended June 2008) P71 Minimum Control Point Maximum Part Time Positions Ste Amount Ste Amount - Ste Amount Account Clerk 6368- 15.87 6408 19.37 6418 20.36 Administrative Intern 6320 12.48 6360 15.24 6370 16.03 Animal Services Officer 6441 22.84 6481 27.88 6491: 29.31 Assistant Pool Mana er 6305 11.60 6345 14.16 6355 14.87 Box Office Assistant 6290 10.76 6330 13.13 6340 13.81 Box Office S ecialist 6311 11.95 6351 14.58 63.61 15.33 Business License Clerk 6378 ` 16.69 6418 20.38 6428 ~ 21.42 Environmental Resources Intern 6280 10.23 6320 12.48 6330 13.13 Instructor/Guard I 6240 8.38 6280 10.23 6290 10.76 Instructor/Guard II 6280 ~ 10.23 6320 12.48 6330 13.13 Libra Aide ~' 6237 ,. 8.25 6277 10.09 6287. ` 10.59 Librarian I 6433 21.95 6473 ` 26.79 6483 28.16 Libra Assistant I 6362. 15.41 6402 18.81 6412.. 19.77 Libra Assistant II 6404 18.99 6444,- 23.20 6454, 24.37 Libra Clerk 6346` 14.22 6386. 17.37 6396 18.25 Libra Pa e 6237 8.25 6277 10.09 6287 10.59 Libra Pa a II 6280. 10.23 6320 12.48 6330 13.13 Maintenance Technician2 ` 6280 % 10.23 ~ 6320 12.48 6330 13.13 Office Specialist I - 6332 13.25 6372 16.19 6382 17.02 Office S ecialist II ' 6352 14.65 6392 17.89 6402 18.80 Outreach Technician 6311 11.95 6351 14.58 6361 15.33 Plannin Aide 6320 12.48 6360 15.24 ~ 6370 16.03 Pool Mana er 6329 13.07 6369 15.95 6379 16.76 Pro ram S ecialist 6311 11.95 6351 14.58 6361. 15.33 Purchasing Clerk 6368 15.87 6408 19.37 .6418. 20.37 Receptionist 6342 ` `' 13.94 6382 17.02 6392.` 17.89 Records Clerk 6344 14.08 6384. 17.19 6394 18.08 Records Coordinator 6372 16.19 6412 19.77 6422 20.78 Recreation Attendant 6237 8.25 6277 10.09 6287. 10.59 Recreation Assistant 6266 9.54 6306 11.65 6316 12.26 Recreation Leader 6290 10.76 6330 13.13 6340 13.81 Senior Civil En ineer 6543 37.99 6583 46.37 6593 48.75 Theatre Technician I 631:1.. 11.95 6351 14.58 6361 15.33 Theatre Technician II ~ 6372 16.19 6412 19.77 ~ 6422 20.78 Veterina Assistant 6407 19.29 6477 23.55 6457 24.76 Veterina Technician 6434 ` 22.40 6474 27.35 6484. 28.74 ~' When acting as Clerk to Commissions $50 paid per night or weekend day meeting. Compensatory time off can be substituted in lieu of $50 at the option of the employee. 2' Up to $200 provided annually toward purchase of approved safety footwear from a city designated vendor. $ Denotes $50.00 paid per night or weekend day meeting; discontinues when this position is vacated as long as this position is classified "Supervisory/Professional." # Denotes Supervisory/Professional Class * Denotes Management Class January 2009 (Amended June 2008) ~l f- ~ Y: r~r ~i, Y'om`" T H E C I T Y O F R A N C h O C U C A M O N G A Staff Report DATE: June 12, 2008 TO: Honorable Mayor and Members of the City Council Jack Lam, AICP, City Manager FROM: John R. Gillison, Deputy City Manager/Administrative Services SUBJECT: APPROVAL OF ANNUAL REVIEW AND AMENDMENTS TO ~~'"`~~ MEDICAL SAVINGS AGREEMENT RECOMMENDATION Approve the attached annual Medical Savings Agreement (Post Employment Health Plan) for FY 2008-09 between the Rancho Cucamonga Executive Management Group and the City of Rancho Cucamonga. BACKGROUND As provided for in the 2006-09 Memorandum of Understanding, the Rancho Cucamonga Executive Management Group has entered into a Medical Savings Agreement, otherwise known as a Post Employment Health Plan, that allows members of the group to contribute the cash value of their accumulated eligible leave time to the Retiree Health Savings Account, upon separation from the City. In June of every fiscal year, the members of the Executive Management Group review the provisions of the Retiree Health Savings Account and notify the City of any changes that are desired in the contribution values of their collective accounts on or before July 1 of the following fiscal year. The Retiree Health Savings Account is administered for the participants by Nationwide Retirement Solutions and all costs related to the ongoing administration thereof are borne by plan participants, based on the fees and charges established by Nationwide Retirement Solutions, and not the City. P72 Approval of Annual Review and Amendments to Medical Savings Agreement June 12, 2008 Page 2 CONCLUSION Approve the attached annual Medical Savings Agreement (Post Employment Health Plan) for FY 2008-09 between the Rancho Cucamonga Executive Management Group and the City of Rancho Cucamonga. Attachment: 1. FY 2008-09 Post Employment Health Plan Agreement for Executive Management P73 P74 AGREEMENT BETWEEN REPRESENTATIVES OF THE RANCHO CUCAMONGA EXECUTIVE MANAGEMENT GROUP AND THE CITY OF RANCHO CUCAMONGA The purpose of this Agreement between representatives of the City of Rancho Cucamonga ("City") and the Rancho Cucamonga Executive Management Group ("Executive Management"), is to constitute a binding agreement between the City and Executive Management documenting the implementation provisions for a Retiree Health Savings Account, also known as a Post Employment Health Plan, as provided for in the July 1, 2006 -June 30, 2009 Memorandum of Understanding between the City and Executive Management. 1. Retiree Health Savings Account The members of each employee group of the Executive Management Group have unanimously agreed to implement a Retiree Health Savings Account as follows: A. Pre-1994 Employees 1. All Executive Management employees hired prior to 1994 will contribute one hundred percent (100%) of the cash value of their accumulated vacation and eligible sick leave time to the Retiree Health Savings Account, upon separation from the City. It is understood that the funds contributed are limited to paying for qualified medical premiums. 2. Pre-1994 Employees will review the provisions of the Retiree Health Savings Account on a yearly basis, in June of every fiscal year, and notify the City of any changes that are desired in the contribution values of their collective accounts on or before July 1 of the following fiscal year. Any changes must be approved by a simple majority of the Pre-1994 participants, prior to implementation. 3. The Retiree Health Savings Account will be administered for the participants by Nationwide Retirement Solutions and all costs related to the ongoing administration thereof will be borne by plan participants, based on the fees and charges established by Nationwide Retirement Solutions, which may change from time to time, and not the City. P75 B. Post-1994 Employees 1. All Executive Management employees hired subsequent to 1994 will contribute one hundred percent (100%) of the cash value of their accumulated vacation and eligible sick leave time to the Retiree Health Savings Account, upon separation from the City. It is understood that the funds contributed are limited to paying for qualified medical premiums. 2. Post-1994 Employees will review the provisions of the Retiree Health Savings Account on a yearly basis, in June of every fiscal year, and notify the City of any changes that are desired in the contribution values of their collective accounts on or before July 1 of the following fiscal year. Any changes must be approved by a simple majority of the Post-1994 participants, prior to implementation. 3. The Retiree Health Savings Account will be administered for the participants by Nationwide Retirement Solutions and all costs related to the ongoing administration thereof will be borne by plan participants, based on the fees and charges established by Nationwide Retirement Solutions, which may change from time to time, and not the City. C. Fire Chief 1. The Fire Chief will contribute one-hundred percent (100%) of the cash value of his/her accumulated vacation, administrative, holiday and eligible sick leave time (time that can be credited to PERS is not considered eligible) to the Retiree Health Savings Account, upon separation from the City. It is understood that the funds contributed are limited to paying for qualified medical premiums. 2. As necessary during the fiscal year, the Fire Chief will contribute one-hundred percent (100%) of the cash value of his/her excess leave (vacation, holiday, etc.) time to the Retiree Health Savings Account as provided for in the Article III -Leave, of the MOU. 3. The Fire Chief will review the provisions of the Retiree Health Savings Account on a yearly basis, in June of every fiscal year, and notify the City of any changes that are desired in the contribution value of his/her account on or before July 1 of the following fiscal year. P76 4. The Retiree Health Savings Account will be administered for the participants by Nationwide Retirement Solutions and all costs related to the ongoing administration thereof will be borne by plan participants, based on the fees and charges established by Nationwide Retirement Solutions, which may change from time to time, and not the City. 2. Implementation Date of Agreement The above Agreement shall be effective as of July 1, 2008. IT IS AGREED: EXECUTIVE MANAGEMENT PRE-1994 EXECUTIVE MANAGEMENT POST-1994 Linda Daniels Date Redevelopment Agency Director EXECUTIVE MANAGEMENT FIRE CHIEF Peter M. Bryan Fire Chief APPROVED AS TO FORM Tamara Layne Finance Director Date CITY OF RANCHO CUCAMONGA Date Jack Lam City Manager ATTEST Date James Markman Date Debra J. Adams, CMC Date City Attorney City Clerk STAFF REPORT Crn° Ma~:~GL~i's Orricr Date: June 12, 2008 To: From: By: Subject: Chairman and Members of the Redevelopment Agency President and Members of the Fire Board Mayor and Members of the City Council Jack m, AICP„City Manager PaEaster, Assistant City Manager MO IFICATIONS TO REDEVELOPMENT COUNCIL AGENDAS P77 „~ ~~-~7 RANCHO C,UCAMONGA AGENCY, FIRE BOARD AND CITY In the interest of streamlining the Redevelopment Agency, Fire Board and City Council agenda meetings, it is recommended that the "Agency/Fire Board/Council responses to Public Comments" section of the Agenda be deleted from the Agenda. Additionally, attached is a Resolution to change the closed session start time to 5:00 p.m. The remainder of the meeting will continue to start at 7:00 p.m. P78 RESOLUTION NO. 90-227D A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, DETERMINING THE DAYS, TIME AND PLACE OF REGULAR MEETINGS OF THE CITY COUNCIL WHEREAS, the City Council of the City of Rancho Cucamonga does hereby resolve as follows: SECTION 1: Regular Meetings of the Rancho Cucamonga City Council shall be held in the Council Chambers at the Civic Center complex located at 10500 Civic Center Drive, Rancho Cucamonga, California, on the first and third Wednesday of each month. Each such regular meeting, commencing with the meeting of June 18, 2008, shall commence at 5:00 p.m. in the Tapia Room on the upper level of the Civic Center for purposes of conducting an Executive Session only. The remainder of each such meeting shall commence and be conducted at 7:00 p.m. in the Council Chambers of the Civic Center. SECTION 2: Said regular meeting shall continue to occur on the first and third Wednesday of each month in the Council Chambers as stated above. Please see the following page for /orma/ atloption, certilcation and signatures P79 Resolution No. 90-227D Page 2 of 2 PASSED, APPROVED, AND ADOPTED this 12th day of June 2008. L. Dennis Michael, Mayor Pro Tem ATTEST: Debra J. Adams, CMC, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at a Special Meeting of said City Council held on the 12~h day of June 2008. Executed this 16`" day of June 2008, at Rancho Cucamonga, California. Debra J. Adams, CMC, City Clerk P80 STAFF REPORT ADMINISTRATIVE SERVICES DEPARTMENT Date: June 12, 2008 To: Mayor and Members of the City Council President and Members of the Board of Directors Jack Lam, City Manager From: John Gillison, Deputy~City Manager/Administrative Services RANCHO CUCAMONGA By: Tamara L. Layne, Finance Director Subject: AUTHORIZATION FOR THE FOLLOWING ACTIONS PERTAINING TO THE CITY'S AND THE FIRE DISTRICT'S OTHER POST EMPLOYMENT BENEFITS (OPEB) ACTUARIAL LIABILITY IN ACCORDANCE WITH GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) STATEMENT NO. 45: 1) RECEIVE AND FILE THE CITY'S AND THE DISTRICT'S RETIREE HEALTHCARE PLAN JUNE 30, 2008 ACTUARIAL VALUATION; 2) APPROVE THE REQUIRED AGREEMENT AND FORMS TO ESTABLISH AND FUND AN IRREVOCABLE TRUST WITH CaIPERS THROUGH THEIR CALIFORNIA EMPLOYERS' RETIREE BENEFIT TRUST (CERBT) PROGRAM; 3) AUTHORIZE STAFF TO COMPLETE THE INITIAL PREFUNDING OF THE TRUST IN THE AMOUNT OF $2 MILLION PLUS THE FULL ANNUAL REQUIRED CONTRIBUTION (ARC) DURING FY 2008/09; THE PAYMENT OF FUTURE YEARS' ARC; AND THE PREFUNDING OF THE REMAINING UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) WITH THE PROCEEDS FROM THE GUARANTEED INVESTMENT CONTRACT (GIC) WHICH MATURES IN OCTOBER 2009; AND 4) APPROVE AND AUTHORIZE THE EXECUTION OF A PROMISSORY NOTE BETWEEN THE CITY AND THE DISTRICT STATING THAT ANY ASSETS REMAINING IN THE TRUST AT THE CONCLUSION OF THE PLAN WILL REVERT BACK TO FUND 025. RECOMMENDATION Staff respectfully recommends that the Council and the Board provide authorization for the following actions pertaining to the City's and the Fire District's Other Post Employment Benefits (OPEB) actuarial liability in accordance with Governmental Accounting Standards Board (GASB) Statement No. 45, "Accounting and Financial Reporting by Employers for Post Employment Benefits Other Than Pensions": 1) Receive and file the City's and the District's Retiree Healthcare Plan June 30, 2008 Actuarial Valuation; 2) Approve the required agreement and forms to establish and fund an irrevocable trust with CaIPERS through their California Employers' Retiree Benefit Trust (CERBT) Program; 3) Authorize staff to complete the initial prefunding of the trust in the amount of $2 million plus the-full annual required contribution (ARC) during FY 2008/09; the payment of future years' ARC; and the prefunding of the remaining unfunded actuarial accrued liability (UAAL) with the proceeds from the Guaranteed Investment Contract (GIC) which matures in October 2009; and 4) approve and authorize the execution of a promissory note between the City and the District stating that any assets remaining in the trust at the conclusion of the Plan will revert back to Fund 025. P81 AUTHORIZATIONFOR VARIOUS ACITONS PERTAINING TO THE DISTRICTS PAGE 2 IMPLEMENTATION OF GASB45 JUNE Iz, zoos BACKGROUND/ANALYSIS GASB Statement No. 45 (GASB 45) establishes standards for the measurement, recognition, and display of OPEB expense/expenditures, and related liabilities (assets), note disclosures, and, if applicable, required supplementary information in the financial reports of state and local governmental employers. The City and the District are required to implement GASB 45 for fiscal year 2008/09. The City has a stand alone medical program for its active employees. Employees who retire from the City at age 55 or later with at least 10 years of service may choose to continue participating in t e me ica pan unti age Ei5. T ere is no cash contribution from the City toward retiree healthcare benefits. An actuarial study, using a PERS approved actuary (Bartel Associates, LLC), was completed to determine if the City had any actuarial liability for the City's retiree healthcare plan under GASB 45. The study determined the City had no actuarial liability. The District's Retiree Healthcare Plan (the Plan) provides 100% of the medical insurance premium for Tier 1 employees (date of hire before November 17, 1994). In 1994, however, the District capped its liability by negotiating an MOU that provided only the legally required PEMHCA minimum contribution towards medical insurance for Tier 2 employees (date of hire on or after November 17, 1994). Historically, the City/District has accounted for retiree healthcare benefits as they were paid. GASB 45 will require the City/District to account for this promise on an accrual basis (as benefits are earned). An actuarial study, using a PERS approved actuary (Bartel Associates, LLC), was completed to determine the present value of these benefits and determine what, if any, liability needs to be reflected in the City/District financial statements. Kev Definitions for Actuarial Study Actuarial Accrued Liability Normal Cost Annual Required Contribution (ARC) Action #1 The portion of the present value of benefits that participants have earned (on an actuarial, not actual, basis) through the valuation date. The portion of the present value of benefits expected to be earned (on an actuarial, not actual, basis) in the coming year: The current employer Normal Cost, plus the amortized unfunded actuarial accrued liability or less the amortized excess assets.' Simply put, this contribution is the value of benefits earned during the year plus something to move the plan toward being on track for funding. The District contracted with Bartel Associates, LLC to perform an actuarial valuation for the District's Retiree Healthcare Plan as of June 30, 2008. Staff is requesting that the Board receive and file this actuarial report (Executive Summary attached) which will be used as a tool to determine the District's ARC, establish the irrevocable trust with CaIPERS (discussed in Action #2 below), and will be used for financial statement disclosure in conjunction with the financial audit for fiscal year 2008/09 and future fiscal years. Staff is also requesting that the Council receive and file P82 AUTHORIZATION FOR VARIOUS ACTIONS PERTAINING TO THE DISTRICI"S PAGE 3 IMPLEMENTATION OF GASB45 TUNE 12.2008 the City's actuarial report (Executive Summary attached), showing no actuarial liability, to demonstrate compliance with GASB 45. Action #2 In order to reduce or eliminate the Unfunded Actuarial Accrued Liability (UAAL) that is required to be disclosed in the District's audited financial statements beginning in fiscal year 2008/09, the District must deposit all or a portion of the UAAL into an irrevocable trust. The full ARC must also be contributed to the trust in order for the plan to be considered fully funded in accordance with GASB 45. Because the District's healthcare program has historically been provided through Program as the recommended vehicle for pre-funding the required trust. The assets contributed to the trust cannot be legally used for any purpose other than to pay retiree healthcare benefits. The initial prefunding of $2 million plus the Annual Required Contribution (ARC) will reduce the amount of the UAAL disclosed in the fiscal year 2008/09 financial statements. The subsequent funding of the UAAL in October 2009 as a result of the City's GIC maturing will eliminate the UAAL completely, thus requiring no additional disclosure for the UAAL. ' CaIPERS requires the following agreement and forms to be completed and submitted to them for review and acceptance in order for the District to make contributions to the trust: 1. CERBT Agreement and Election of the Rancho Cucamonga Fire Protection District to Prefund Other Post Employment Benefits Through CaIPERS (attached, two signed originals required) 2. Actuarial Valuation Report (provided to CaIPERS by the District's actuary -Executive Summary attached) 3. Summary of Actuarial Information (provided to CaIPERS in electronic format by the District's actuary) 4. Certification of OPEB Actuarial Information (completed by the District's actuary) 5. Certification of OPEB Funding Policy and GASB 43/45 Reporting Compliance (attached) 6. Delegation of Authority to Request Disbursement (Resolution FD 08-_) (attached) The forms required to be completed by the District are attached for the Board's review and approval. All other required forms from the District's actuary will be provided directly to CaIPERS. Action #3 The City will transfer funds to the District during fiscal year 2008/09 and again in October 2009 to cover the prefunding that the District will place into the irrevocable trust. As consideration for these transfers for the prefunding, the City has eliminated its annual $535,640 transfer to the District beginning in fiscal year 2008/09, and continuing in perpetuity, which was otherwise used to fund Fire District plan check services. This amount is approximately equal to the GIC contribution over the expected term of the trust. Additionally, pursuant to a separately executed promissory note (discussed in Action #4 below), any assets remaining in the trust at the conclusion of the Plan will revert back to Fund 025. Staff is requesting the City Council's authorization to complete these transfers at the appropriate time and the Board's authorization to accept the transfers and forward P83 AUTHORIZATIONFOR VARIOUS ACTIONS PERTAINING TO THE DISTRICI"S . PAGE 4 IMPLEMENTATION OF GASB45 JUNE 12, 2008 the prefunding amounts to the trust. Staff is also requesting the Board's authorization to fund the annual ARC for the District. Action #4 As noted in Action #3 above, any assets remaining in the trust at the conclusion of the Plan will revert back to Fund 025. In order to formalize this agreement, staff is requesting that the Council and the Board approve and authorize the execution of a promissory note between the City and the District, to be separately drafted by the City Attorney, that will memorialize the terms noted in this report and ensure that at the expiration of the trust any remaining assets are returned to Fund 025. Staff requests that the Board and the Council approve and authorize Actions #1 through #4 above to facilitate the implementation of GASB 45 for the City and the District during fiscal year 2008/09. Respectfully submitted, i Gilli Deputy City Manager/Administrative Services Attachments P84 Rancho Cucamonga Fire Protection District 7 r t : ss C . !xJ' g. ~3R.1tu'7n 1n~t{••b' K~'%~::v, ~~ .z^..~q, 'y s t.. rr=~.'"x~ -~ •s,~ zw, , cyu: f, _) .` ~.~ ~~. I r' 1 ~ E~ ,~ . ~ , ~_. \., r~'v~r., .v< ~ti:.c ~rsS.+,.~;`_,~_1 e .,.= L~~= lr..§F"., r_..n ~.._.a~3<,.__>> Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Executive Summary June 2008 P85 Executive Summary Rancho Cucamonga Fire Protection District Retiree Healthcare Plan June 30, 2007 Actuarial Valuation On June 21, 2004, the Governmental Accounting Standards Boazd approved Statement No. 45 (GASB 45), Accounting Standards for Other (than pensions) Post Employment Benefits (GPEB). This report is based on the financial reporting standards established under GASB 45. We understand the District is required to implement GASB 45 for its 2008/09 fiscal year'. Historically the District has accounted for retiree healthcare benefits as they were paid, projected to be approximately $0.7 million for the 2007/OS fiscal year and $0.8 million for the 2008/09 fiscal year. GASB 45 will require the District to account for this promise on an accrual basis (as benefits aze earned). ~ v x'tu.' ~~'= ' a'4T' 7,~ AR~ ~ +.-.- .~ vx ~" 3JMr ~,5 ~,~-~+~_ .~`i'"... ~,~r~"`s.*~~`~ °~„~ '.:~s~t'"a~S~~LIDY~RE5L3L3''s~„~n~`.~`~'~..«~rr. ~'s ~~"hf`ke...:~c Funded Status: The plan funded status is equal to the Actuarial Accrued Liability (see definitions and assumptions section below) less plan assets. When assets equal liabilities, a plan is considered on track for funding. To consider a retiree healthcare plan funded for GASB 45 purposes, assets must be set aside in a trust that cannot legally be used for any purpose other than to pay retiree healthcare benefits. The District's retiree healthcare plan is not currently funded. This has important implications for the discount rate assumption used to calculate plan liabilities (see definitions and assumptions section below). We have prepared valuation results under 2 scenarios: ^ No Pre-Funding -Benefits paid from the District's general fund which is assumed to earn a 4.50% long-term rate of return. ^ Pre-Funding -Contributions made to an irrevocable trust through Ca1PERS with diversified assets which are assumed to earn a 7.75% long-term return. The following table summarizes the plan's June 30, 2007 funded status (OOOs omitted): No Pre-Funding Pre-Funding 4.50% 7.75% ^ Actuarial Accmed Liability (AAL) • Actives $11,648 $ 7,131 • Retirees 14.070 9.384 • Total $25,718 $16,515 ^ Plan Assets 0 0 ^ Unfunded AAL (UAAL) $25,718 $16,515 ~ Assumes the District was a Phase II GASB 34 implementer. ~`l June 4, 2008 d~ P86 Executive Summary Rancho Cucamonga Fire Protection District Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Page 2 Annual Required Contribution (ARC): GASB 45 doesn't require an agency make up any shortfall (unfunded liability) immediately, nor does it allow an immediate credit for any excess assets. Instead, the difference is amortized over time. An agency's Annual Required Contribution is nothing more than the current employer Normal Cost, plus the amortized unfunded liability or less the amortized excess assets. Simply put, this contribution is the value of benefits earned during the yeaz plus something to move the plan towazd being on track for funding. For the District's valuation we calculated the 2008/09 ARC as the Normal Cost plus a 30-yearn amortization (as a level percent of pay) of the Unfunded Actuarial Accrued Liability (OOOs omitted): Pre-Funding Pre-Funding 4.50% 7.75% ^ Normal Cost $ 658 $ 298 ^ UAALAmortization 1.107 1,084 ^ 2008/09 Annual Required Contribution $ 1,765 $ 1,382 ^ Annual Required Contribution as a percentage of estimated 2008/09 payroll 22.7% 17.8% ^ Estimated 2008/09 Payroll $7,769 $7,769 Net OPEB Obligation (NOO): An agency's Net OPEB Obligation is the historical difference (from implementation)' between actual contributions made and the Annual Required Contributions". If an agency has always contributed the required contribution, then the Net OPEB Obligation equals zero. However, an agency has not "made" the contribution unless it has been set aside and cannot legally be used for any other purpose. Annual OPEB Cost (AOC): GASB 45 requires the Annual OPEB Cost equal the Annual Required Contribution, except when an agency has a Net OPEB Obligation at the beginning of the yeaz. When that happens an agency's Annual OPEB Cost will equal the ARC, adjusted for expected interest on the Net OPEB Obligation and reduced by an amortization of the Net OPEB Obligation (OOOs omitted): Na Pre-Funding Pre-Funding 4.50% 7.75% ^ 2008/09 Annual Required Contribution $ 1,765 $ 1,382 ^ Interest on Net OPEB Obligation 0 0 ^ Amortization of Net OPEB Obligation 0 0 ^ Tota12008/09 Annual OPEB Cost $ 1,765 $ 1,382 z Maximum allowed under GASB 45. a GASB 45 specifies the initial Net OPEB Obligation (at implementation) be set to zero. ° Benefits paid for current retirees are considered contributions. t `~ 3_~ June 4,2008 P87 Executive Summary Rancho Cucamonga Fire Protection District Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Page 3 The following illustrates the District's June 30, 2009 Net OPEB Obligation if the District adopts GASB 45 for the 2008/09 fiscal yeaz (OOOs omitted): ^ June 30, 2008 Net OPEB Obligation ^ 2008/09 Annual OPEB Cost ^ 2008/09 Contributions ^ June.30, 2009 Net OPEB Obligation No Pre-funding Pre-funding 4.5% 7.75% $ 0 $ 0 1,765 1,382 $ 987 $ 0 The District's actual June 30, 2009 Net OPEB Obligation will differ slightly from the above because actual benefit payments will be different from estimated. Cash and Accrual Projection: Following aze District contribution illustrations for three funding approaches assuming the number of active District employees remains constant (OOOs omitted): . ^ No Pre-Funding: The District contributes only the pay-as-you-go cost ^ Pre-funding Scenario A: The District will contribute 100% of ARC with two additional lump sum contributions: $2 million in 2008/09 and $15.1 million in 2009/10. Note that the $15.1 million was determined to pay off the entire UAAL at 6/30/10. ^ Pre-funding Scenario B: The District will contribute $17.6 million in 2008/09, in addition to the pay-as-you-go cost. The District will contribute full ARC [hereafter. Note that the $17.6 million was determined to pay off the entire UAAL at 6/30/09. Pay-As-You- Pre-Funding Year Go Cost Scenario A Scenario B 2008/09 $ 778 $ 3,382 $ 18,345 2009/10 882 16,418 308 20]0/11 983 318 318 2011/12 1,087 328 328 2012/] 3 1, ] 87 339 339 2013/14 1,299 350 350 2014/15 1,412 361 361 2015/]6 1,532 373 373 2016/17 1,661 385 385 2017/18 1,770 397 397 If the District chooses to continue the pay-as-you-go method, the Net OPEB Obligation will increase to approximately $8.9 million at June 30, 2018. Sensitivity: The above results are based on a 30-year amortization of the unfunded liability. Following illustrates the impact of changing the amortization period to 20 yeazs (OOOs omitted): 5 Estimated 2008/09 benefit payments. 6 Assumes full ARC is contributed. l~ f )__j / 1 June 4, 2008 ~~+ ~~ P88 Executive Summary Rancho Cucamonga Fire Protection District Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Page 4 ^ 30-year amortization • Tota] 2008/09 ARC $ • Total 2008/09 ARC • Tota12008/09 ARC $ • Tota12008/09 ARC l~_~1_ June 4,2008 No Pre-Funding Pre-Funding 4.50% 7.75% $ 1,765 $ 1,382 22.7% 17.8% $ 2,226 $ 1,662 28.7% 21.4% '~„ P89 Executive Summary Rancho Cucamonga Fire Protection District Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Page 5 Present Value of Benefits; When an actuary prepazes an actuarial valuation, (s)he first gathers participant data (including active employees, former employees not in payment status, participants and beneficiazies in payment status) at the valuation date (for example June 30, 2007). Using this data and actuarial assumptions, (s)he projects future benefit payments. (The assumptions predict, among other things, when people will retire, [emanate, die or become disabled, as well as what salary increases, discounted, using expected future investment return, back to the valuation date. This discounted present value is the plan's present value of benefits. It represents the amount the plan needs as of the valuation date to pay all future benefits - if all assumptions are met and no future contributions (employee or employer) are made. The District's June 30, 2007 retiree healthcaze Present Value of Benefits is $31.1 million using a 4.50% discount rate ($18.5 million using a 7.75% discount rate), with $14.1 million of this for former employees who have already retired ($9.4 million using a 7.75% discount rate). Actuarial Accrued Liability: This represents the portion of the present value of benefits that participants have earned (on an actuarial, not actual, basis) through the valuation date. The District's June 30, 2007 retiree healthcare Actuarial Accrued Liability is $25J million using a 4.50% discount rate ($16.5 million using a 7.75% discount rate), with $14.1 million of this for former employees who have already retired ($9.4 million using a 7.75% discount rate). Normal Cost: The Normal Cost represents the portion of the present value of benefits expected to be earned (on an actuarial, not actual, basis) in the coming year. The District's 2008/09 retiree healthcare Normal Cost is $0.7 million (8.5% of payroll) using a 4.50% discount rate and $03 million using a 7.75% discount rate (3.8% of payroll). Actuarial Cost Method: This determines the method in which benefits are actuarially earned (allocated) to each year of service. It has no effect on the Present Value of Benefits, but has significant effect on the Actuarial Accrued Liability and Normal Cost. The District's June 30, 2007 retiree healthcare valuation was prepazed using the Entry Age Normal level percentage of pay cost method. Actuarial Assumptions: Under GASB 45, an actuary must follow current actuarial standazds of practice, which generally call for explicit assumptions -meaning each individual assumption represents the actuary's best estimate. GASB 45 requues that the discount rate is based on the source of funds used to pay benefits. This means the underlying expected long-term rate of return on plan assets for funded plans. Furthermore, since the source of funds for an unfunded plan is usually the general fund and California law restricts agencies' investment vehicles, this valuation uses a relatively low, 4.50%, discount rate. If the District establishes a Tmst (that could only be used to pay plan benefits) using CaIPERS Section 115 Trust then the discount rate would be based on the Trust's expected long-term investment return (established by CaIPERS at 7.75%). Another key assumption is future healthcaze inflation rates. The inflation rate for HMO's starts at 10.4% (the increase in 2008 premiums over 2007) and grades down to 4.5% (2017 premiums over 2016) and tti Il: June 4, 2008 ~~ P90 Executive Summary Rancho Cucamonga Fire Protection District Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Page 6 remains at 4.5% into the future. The inflation rete for PPO's starts at ] 1.3% (the increase in 2008 premiums over 2007) and grades down to 4.5% (2017 premiums over 2016) and remains at 4.5% into the future. This assumption means healthcaze is assumed to increase, on the average, 7.4% for HMO's and 7.9% for PPO's a year for the next 10 years. Furthermore, since the va]uation's general inflation assumption is 3%, it also means healthcaze is assumed to level off at ].5% over general inflation. ^ Eligibility • Full time employees service and disability retirement from the District • Continue participating in PEMHCA after retirement • Ca1PERS service retirement - 50& 5 : , 7'tre ] r` ~ '' '' Tier 2 t = ~ ' ^ Medical Benefit _ ,DOH<ll/17%94` ~ ~ ' " ~ , ,:.DOH>ll/19%94 • District pays 100% of • Retirees pay full cost for medical insurance premium medical insurance through for participant and family PEMHCA • District pays PEMHCA minimum employer contribution • 2007 PEMHCA min: $80.80/month ^ Surviving Spouse • Contribution continues to surviving spouse and dependents Benefit ^ Dental, Vision, Life • None l June 4,2008 F P91 City of Rancho Cucamonga ~:%~~~ ILL F .~ \ ,ti (,..` t~ ~ .,. Tl F ~ I ~ C ~ a r.E r< f k,„, !, yj, .~ ':. }a x S 4u }~, k,~+ u SF% u v `Y:'S _. __. ...a`..~.:&';~- ~.,. ,. ;,n .~~ ~,r::v:.c.kS_ .,., 4;:_ s., ..:,z ___v.+-,. ;~2.n5~,w~1',.. ...... .,.. _ _~'. .._.r rs: Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Executive Summary June 2008 P92 Executive Summary City of Rancho Cucamonga Retiree Healthcare Plan June 30, 2007 Actuarial Valuation On June 21, 2004, the Govermnental Accounting Standazds Boazd approved Statement No. 45 (GASB 45); Accounting Standards for Other (than pensions) Post Employment Benefits (OPEB). GASB 45 will require agencies account for retiree medical benefits on an accmal basis (as benefits aze earned). This report summarizes the results of our GASB 45 actuarial study for the City. Background: The City has a stand alone medical program for its active employees. Employees who retire frotr~th~Ci_ty_at_age 55~~later ~viIh_at_leastSO years_oLsenice_may_Choose_to_continue participating in [he medical plan until age 65. There is no cash contribution from the City toward retiree healthcare benefits. The City hired Bartel Associates to prepare the June 30, 2007 actuarial valuation for GASB 45 required reporting and disclosure information. Our initial valuation, based on 2007 premium structure, showed a GASB 45 liability related to the implied subsidy. An implied subsidy exists when the premium for retirees aze determined by aggregating the experience of the actives and retirees, resulting in lower retiree premiums than if the retiree premiums were determined independently. For example, assume the average premium for actives and non-Medicare eligible retirees is $600 per month. The underlying medical cost varies by age and gender and might actually be $300 per month fora 40 yeaz-old active employee and $900 per month fora 60 yeaz-old retiree. In this case, the premium for the younger employee is subsidizing $300 of the older retiree's cost. New 2008 Premium Rates: Early in 2008, the City asked us to determine whether an implied subsidy still exists using new 2008 premium rates for Kaiser (effective January 1, 2008) and Blue Cross (effective June 1, 2008). The new premium rates for early retirees are much higher than those for active employees. We performed the implied subsidy analysis for the new 2008 premium rates. Conclusion: We conclude there is no actuarial liability for the City's retiree healthcare plan under GASB 45. This conclusion may change in the future depending on future premium rates and participants coverage election. >~ =i ~ June 4, 2008 ~ , P93 Executive Summary City of Rancho Cucamonga Retiree Healthcare Plan June 30, 2007 Actuarial Valuation Page 2 ^ Eligibility • Full time employees directly retire from the City • Service or disability retirement • Age 55 and ]0 years of City service ^ Medical Benefit • Retirees allowed to participate in the City's health plan up to age 65 • No City contribution ^ Surviving Spouse Benefit • None ^ Dental, Vision, Life • None l bf~ ~ , June 4,2008 P94 CALIFORNIA EMPLOYER'S RETIREE BENEFIT TRUST PROGRAM ("CERBT") AGREEMENT AND ELECTION OF Rancho Cucamonga Fire Protection District (NAME OF EMPLOYER) TO PREFUND OTHER POST EMPLOYMENT -- BENEFITS THROUGH CaIPERS WHEREAS (1) Government Code Section 22940 establishes in the State Treasury the Annuitants' Health Care Coverage Fund for the Prefunding of health care coverage for annuitants (Prefunding Plan); and WHEREAS (2) The California Public Employees' Retirement System (CaIPERS) Board of Administration (Board) has sole and exclusive control and power over the administration and investment of the Prefunding Plan (sometimes also referred to as CERBT), the purposes of which include, but are not limited to (i) receiving contributions from participating employers and establishing separate Employer Prefunding Accounts in the Prefunding Plan for the performance of an essential governmental function (ii) investing contributed amounts and income thereon, if any, in order to receive yield on the funds and (iii) disbursing contributed amounts and income thereon, if any, to pay for costs of administration of the Prefunding Plan and to pay for health care costs or other post employment benefits in accordance with the terms of participating employers' plans; and WHEREAS (3) Rancho Cucamonga Fire Protection District (NAME OF EMPLOYER) (Employer) desires to participate in the Prefunding Plan upon the terms and conditions set by the Board and as set forth herein; and WHEREAS (4) Employer may participate in the Prefunding Plan upon (i) approval by the Board and (ii) filing a duly adopted and executed Agreement and Election to Prefund Other Post Employment Benefits (Agreement) as provided in the terms and conditions of the Agreement; and WHEREAS (5) The Prefunding Plan is a trust fund that is intended to perform an essential governmental function within the meaning of Section 115 of the Internal Revenue Code as an agent multiple-employer plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 43 consisting of an aggregation of single-employer plans, with pooled administrative and investment functions; Rev 04/25/2008 P95 NOW, THEREFORE, BE IT RESOLVED THAT EMPLOYER HEREBY MAKES THE FOLLOWING REPRESENTATION AND WARRANTY AND THAT THE BOARD AND EMPLOYER AGREE TO THE FOLLOWING TERMS AND CONDITIONS: A. Representation and Warranty Employer represents and warrants that it is a political subdivision of the State of California or an entity whose income is excluded from gross income under Section 115 (-1) of the Internal Revenue-Code. B. Adoption and Approval of the Agreement; Effective Date; Amendment (1) Employer's governing body shall elect to participate in the Prefunding Plan by adopting this Agreement and filing with the CaIPERS Board a true and correct original or certified copy of this Agreement as follows: Filing by mail, send to: CaIPERS Constituent Relations Office CERBT(OPEB) P.O. Box 942709 Sacramento, CA 94229-2709 Filing in person, deliver to: CaIPERS Mailroom Attn: Employer Services Division 400 O Street Sacramento, CA 95814 (2) Upon receipt of the executed Agreement, and after approval by the Board, the Board shall fix an effective date and shall promptly notify Employer of the effective date of the Agreement. (3) The terms of this Agreement may be amended only in writing upon the agreement of both CaIPERS and Employer, except as otherwise provided herein. Any such amendment or modification to this Agreement shall be adopted and executed in the same manner as required for the Agreement. Upon receipt of the executed amendment or modification, the Board shall fix the effective date of the amendment or modification. (4) The Board shall institute such procedures and processes as it deems necessary to administer the Prefunding Plan, to carry out the purposes of this Agreement, and to maintain the tax exempt status of the Prefunding Plan. Employer agrees to follow such procedures and processes. Rev 04/25/2008 P96 C. Actuarial Valuation.and Employer Contributions (1) Employer shall provide to the Board an actuarial valuation report on the basis of the actuarial assumptions and methods prescribed by the Board. Such report shall be for the Board's use in financial reporting, shall be prepared atleast as often as the minimum frequency required by GASB Statement No. 43, and shall be: (a) prepared and signed by a Fellow or Associate of the Society of Actuaries - .____ -_ _who is_also a_Member_of_the_American.Academy-of-Actuaries or-a-person-- with equivalent qualifications acceptable to the Board; (b) prepared in accordance with generally accepted actuarial practice and GASB Statement Nos. 43 and 45; and, (c) provided to the Board prior to the Board's acceptance of contributions for the valuation period or as otherwise required by the Board. (2) The Board may reject any actuarial valuation report submitted to it, but shall not unreasonably do so. In the event that the Board determines, in its sole discretion, that the actuarial valuation report is not suitable for use in the Board's financial statements or if Employer fails to provide a required actuarial valuation, the Board may obtain, at Employer's expense, an actuarial valuation that meets the Board's financial reporting needs. The Board may recover from Employer the cost of obtaining such actuarial valuation by billing and collecting from Employer or by deducting the amount from Employer's account in the Prefunding Plan. (3) Employer shall notify the Board of the amount and time of contributions which contributions shall be made in the manner established by the Board. (4) Employer contributions to the Prefunding Plan may be limited to the amount necessary to fully fund Employer's actuarial present value of total projected benefits, as supported by the actuarial valuation acceptable to the. Board. As used throughout this document, the meaning of the term "actuarial present value of total projected benefits" is as defined in GASB Statement No. 45. If Employer's contribution causes its assets in the Prefunding Plan to exceed the amount required to fully fund the actuarial present value of total projected benefits, the Board may refuse to accept the contribution. (5) The minimum Employer contribution will be at least $5000 or be equal to Employer's Annual Required Contribution, whichever is less, as that term is defined in GASB Statement No. 45. Contributions can be made at any time following the seventh day after the effective date of the Agreement provided that Employer has first complied with the requirements of Paragraph C. Rev 04/25/2008 3 P97 D. Administration of Accounts, Investments, Allocation of Income (1) The Board has established the Prefunding Plan as an agent plan consisting of an aggregation ofsingle-employer plans, with pooled administrative and investment functions, under the terms of which separate accounts will be maintained for each employer so that Employer's assets will provide benefits only under employer's plan. (2) All Employer contributions and assets attributable to Employer contributions shall be separately accounted fgr in the Prefunding_Plan (Employer's_Prefunding_Account). _ - - _ _ _..- _. (3) Employer's Prefunding Account assets may be aggregated with prefunding account assets of other employers and may be co-invested by the Board in any asset classes appropriate for a Section 115 Trust. (4) The Board may deduct the costs of administration of the Prefunding Plan from the investment income or Employer's Prefunding Account in a manner determined by the Board. (5) Investment income shall be allocated among employers and posted to Employer's Prefunding Account as determined by the Board but no less frequently than annually. (6) If Employer's assets in the Prefunding Plan exceed the amount required to fully fund the actuarial present value of total projected benefits, the Board, in compliance with applicable accounting and legal requrements, may return such excess to Employer. E. Reports and Statements (1) Employer shall submit with each contribution a contribution report in the form and containing the.information prescribed by the Board. (2) The Board shall prepare and provide a statement of Employer's Prefunding Account at least annually reflecting the balance in Employer's Prefunding Account, contributions made during the period and income allocated during the period, and such other information as the Board determines. F. Disbursements (1) Employer may receive disbursements not to exceed the annual premium and other costs of post employment healthcare benefits and other post employment benefits as defined in GASB 43. (2) Employer shall notify CaIPERS in writing in the manner specified by CaIPERS of the persons authorized to request disbursements from the Prefunding Plan on behalf of Employer. Rev 04/25/2008 4 P98 (3) Employer's request for disbursement shall be in writing signed by Employer's authorized representative, in accordance with procedures established by the Board. The Board may require that Employer certify or otherwise establish that the monies will be used for the purposes of the Prefunding Plan. (4) Requests for disbursements that satisfy the requirements of paragraphs (2) and (3) that are received on or after the first of a month will be processed by the 15a' of the following month. (For example, a disbursement request received on or between March 1 st and March 31 st will be processed by April-15th; and a disbursement request __ _ _ _ received on or between April 1 st and April 30th will be processed by May 15th.) (5) CaIPERS shall not be liable for amounts disbursed in error if it has acted upon the instruction of an individual authorized by Employer to request disbursements. In the event of any other erroneous disbursement, the extent of CaIPERS' liability shall be the actual dollar amount of the disbursement, plus interest at the actual earnings rate but not less than zero. (6) No disbursement shall be made from the Prefunding Plan which exceeds the balance in Employer's Prefunding Account. G. Costs of Administration Employer shall pay its share of the costs of administratioh of the Prefunding Plan, as determined by the Board. H. Termination of Employer Participation in Prefunding Plan (1) The Board may terminate Employer's participation in the Prefunding Plan if: (a) Employer gives written notice to the Board of its election to terminate; (b) The Board finds that Employer fails to satisfy the terms and conditions of this Agreement or of the Board's rules or regulations. (2) If Employer's participation in the Prefunding Plan terminates for any of the foregoing reasons, all assets in Employer's Prefunding Account shall remain in the Prefunding Plan, except as otherwise provided below, and shall continue to be invested and accrue income as provided in Paragraph D. (3) After Employer's participation in the Prefunding Plan terminates, Employer may not make contributions to the Prefunding Ptan. R~ oaizs~zooa 5 P99 (4) After Employer's participation in the Prefunding Plan terminates, disbursements from Employer's Prefunding Account may continue upon Employer's instruction or otherwise in accordance with the terms of this Agreement. (5) After thirty-six (36) months have elapsed from the effective date of this Agreement: (a) Employer may request a trustee to trustee transfer of the assets in Employer's Prefunding Account. Upon satisfactory showing to the Board that the transfer will satisfy applicable requirements of the Internal Revenue Code and the Board's fiduciary duties, then the Board shall effect the transfer within one hundred twenty (120) days. The amount to be transferred shall be the amount in the Employer's Prefunding Account as of the disbursement date and shall include investment earnings up to the investment earnings allocation date immediately preceding the disbursement date. In no event shall the investment earnings allocation date precede the transfer by more than 120 days. (b) Employer may request a disbursement of the assets in Employer's Prefunding Account. Upon satisfactory showing to the Board that all of Employer's obligations for payment of post employment health care benefits and other post employment benefits and reasonable administrative costs of the Board have been satisfied, then the Board shall effect the disbursement within one hundred twenty (120) days. The amount to be disbursed shall be the amount in the Employer's Prefunding Account as of the disbursement date and shall include investment earnings up to the investment earnings allocation date immediately preceding the disbursement date. In no event shall the investment earnings allocation date precede the disbursement by more than 120 days. (6) After Employer's participation in the Prefunding Plan terminates and at such time that no assets remain in Employer's Prefunding Account, this Agreement shall terminate. (7) If, for any reason, the Board terminates the Prefunding Plan, the assets in Employer's Prefunding Account shall be paid.to Employer after retention of (i) amounts sufficient to pay post employment health care benefits and other post employment benefits to annuitants for current and future annuitants described by the employer's current substantive plan (as defined in GASB 43), and (ii) amounts sufficient to pay reasonable administrative costs of the Board. (8) If Employer ceases to exist but Employer's Prefunding Plan continues to exist and if no provision has been made by Employer for ongoing payments to pay post employment health care benefits and other post employment benefits to annuitants for current and future annuitants, the Board is authorized to and shall appoint a third party administrator to carry out Employer's Prefunding Plan. Any and all costs associated Rev 04/25/2008 ~ P100 with such appointment shall be paid from the assets attributable to contributions by Employer. (9) If Employer should breach the representation and warranty set forth in Paragraph A., the Board shall take whatever action it deems necessary to preserve the tax-exempt status of the Prefunding Plan. I. General Provisions (1) Books and Records. Employer shall keep accurate books and records connected with the performance of this Agreement. Employer shall ensure that books and records of subcontractors, suppliers, and other providers shall also be accurately maintained. Such books and records shall be kept in a secure location at the Employer's office(s) and shall be available for inspection and copying by CaIPERS and its representatives. (2) Audit. (a) During and for three years after the term of this Agreement, Employer shall permit the Bureau of State Audits, CaIPERS, and its authorized representatives, and such consultants and specialists as needed, at all reasonable times during normal business hours to inspect and copy, at the expense of CaIPERS, books and records of Employer relating to its performance of this Agreement. (b) Employer shall be subject to examination and audit by the Bureau of State .Audits, CaIPERS, and its authorized representatives, and such consultants and specialists as needed, during the term of this Agreement and for three years after final payment under this Agreement. Any examination or audit shall be confined to-those matters connected with the performance of this Agreement, including, but not limited to, the costs of administering this Agreement. Employer shall cooperate fully with the Bureau of State Audits, CaIPERS, and its authorized representatives, and such consultants and specialists as needed, in connection with any examination or audit. All adjustments, payments, and/or reimbursements determined to be necessary by any examination or audit shall be made promptly by the appropriate party. (3) Notice. (a) Any notice, apprdval, or other communication required or permitted under this Agreement will be given in the English language and will be deemed received as follows: Rev 04/25/2008 P101 Personal delivery. When personally delivered to the recipient. Notice is effective on delivery. 2. First Class Mail. When mailed first class to the last address of the recipient known to the party giving notice. Notice is effective three delivery days after deposit in a United States Postal Service office or mailbox. 3. Certified mail. When mailed certified mail, return receipt requested. Notice is effective on receipt, if delive ry is confirmed by a return receipt. 4. Overnight Delivery. When delivered by an overnight delivery service, charges prepaid or charged to the sender's account, Notice is effective on delivery, if delivery is confirmed by the delivery service. . Telex or Facsimile Transmission. When sent by telex or fax to the last telex or fax number of the recipient known to the party giving notice. Notice is effective on receipt, provided that (i) a duplicate copy of the notice is promptly given by first-class or certified mail or by overnight delivery, or (ii) the receiving party delivers a written confirmation of receipt. Any notice given by telex or fax shall be deemed received on the next business day if it is received after 5:00 p.m. (recipient's time) or on a nonbusiness day. 6. E-mail transmission. When sent bye-mail using software that provides unmodifiable proof (i) that the message was sent, (ii) that the message was delivered to the recipient's information processing system, and (iii) of the time and date the message was delivered to the recipient along with a verifiable electronic record of the exact content of the message sent. Addresses for the purpose of giving notice are as shown in Paragraph B.(1) of this Agreement. (b) Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an act or omission of the party to be notified shall be deemed effective as of the first date that said notice was refused, unclaimed, or deemed undeliverable by the postal authorities, messenger or overnight delivery service. (c) Any party may change its address, telex, fax number, ore-mail address by giving the other party notice of the change in any manner permitted by this Agreement. Rev 04/25/2008 P102 (d) All notices, requests, demands, amendments, modifications or other communications under this Agreement shall be in writing. Notice shall be sufficient for all such purposes if personally delivered, sent by first class, registered or certified mail, return receipt requested, delivery by courier with receipt of delivery, facsimile transmission with written confirmation of receipt by recipient, or a-mail delivery with verifiable and unmodifiable proof of content and time and date of sending by sender and delivery to recipient. Notice is effective on confirmed .receipt by recipient or 3 business days after sending, whichever is sooner. (4) Modification This Agreement may be supplemented, amended, qr modified only by the mutual agreement of the parties. No supplement, amendment, or modification of this Agreement shall be binding unless it is in writing and signed by the party to be charged (5) Survival All representations, warranties, and covenants contained in this Agreement, or in any instrument, certificate, exhibit, or other writing intended by the parties to be a part of their Agreement shall survive the termination of this Agreement until such time as all amounts in Employer's Prefunding Account have been disbursed. (6) Waiver No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy shall be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. (7) Necessary Acts, Further Assurances The parties shall at their own cost and expense execute and deliver such further documents and instruments and shall take such other actions as may be reasonably required or appropriate to evidence or carry out the intent and purposes of this Agreement. Rev 04/25/2008 0 P103 A majority vote of Employer's Governing Body at a public meeting held on the t 2m day ofthe month of June into this Agreement. Signature of the Presiding Officer: in the year 200$ ,authorized entering Printed Name of the Presiding Officer: L. Dennis Michael, Vice President Name of Governing Body: Board of Directors Name of Employer: Rancho Cucamonga Fire Protection District Date: BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY KENNETH W. MARZION ACTUARIAL AND EMPLOYER SERVICES BRANCH CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM To be completed by CaIPERS The effective date of this Agreement is: Rev 04/25/2008 ~ ~ P104 CERTIFICATION OF OPEB FUNDING POLICY & GASB 43/45 REPORTING COMPLIANCE C As the employer, I certify that our funding policy is to contribute consistently an amount at least equal to 100 % of the ARC. The California Employers' Retiree Benefit Trust (CERBT) fund plan includes more than 200 members. We understand that, under GASB 43, paragraph 33, as an employer participating in the CaIPERS CERBT, we must obtain an actuarial valuation on at least a biennial basis. We understand that we will be asked to provide accounting information to CaIPERS as required in order to facilitate Ca1PERS compliance with GASB 43 reporting requirements, and we agree to make any information requested available to CaIPERS on a timely basis. Our contact information is noted below. We understand that CaIPERS will report aggregated GASB 43 information in the Schedule of Funding Progress and Schedule of Employer Contributions Rancho Cucamonga Fire Protection District Name of Employer Jack Lam, Executive Director Printed Name and Title of Person Signing the Form Signature Date Tamara L. Layne, Finance Director Designated Employer Contact Name for GASB Reporting (909) 477-2700, ext. 2430 Tamara.Lavne(a~cityofrc.us Phone # Email Address Rev 01/28/2008 MEMORANDUM CITY IVL~INAGER'S OFFICE Date: June 12, 2008 To: Mayor and Members of the City Council From: Jack La ,City Mana er By: Pamela s er, Assistant City Manager Subject: Approval of FY 2008-09 Sheriffs Schedule "A" Contract Amendment Recommendation RANCHO cUCAMONGA It is recommended that the City Council approve the Fiscal Year (FY) 2008/09 San Bernardino County Sheriff's Contract Schedule "A" Amendment and direct the City Manager to execute the document on behalf of the City. The Contract Schedule is for the provision of law enforcement services to the City of Rancho Cucamonga by the San Bernardino County Sheriff's Department. For the upcoming year, the Contract is for $25,958,263. Background Annually, the Sheriff's Department provides the City with a Contract Amendment, called "Schedule A", that identifies the upcoming Fiscal Year cost of providing services to the community -that is in keeping with the staffing and levels of service goals established by the City Council and reflected in the FY 2008-09 City Budget. The Finance Department has reviewed the proposed Contract Amendment. P105 Attachment FOR COUNTY USE ONLY ~~ ~;~n County of San Bernardino FAS STANDARD CONTRACT New Vendor Code Dept. Contract Number X Change SC SHR A 94-524 A-24 Cancel County Department Dept. Orgn. Contractor's License No. SHERIFF SHR SHR County Department Contract Representative Telephone Total Contract Amount DENNIS J. CASEY, CAPTAIN 909 387-0640 $25,958,263 Contract Type I~ Revenue ^ Encumbered ^ Unencumbered ^ Other: If not encumbered or revenue contract type, provide reason: Commodity Code Contract Start Date Contract End Date Original Amount Amendment Amount $25,958,263 Fund Dept. Organization Appr. Obj/Rev Source GRC/PROJ/JOB No. Amount AAA SHR SHR 9565 RANCHO $25.958.263 Fund Dept. Organization Appr. Obj/Rev Source GRC/PROJ/JOB No. Amount Fund Dept. Organization Appr. Obj/Rev Source GRC/PROJ/JOB No. Amount Project Name Estimated Payment Total by Fiscal Year Contract Law Enforcement FY Amount I/D FY Amount I/D 2ooe-o9 - - THIS CONTRACT is entered into in the State of California by and between the County of San Bernardino, herelnafter called the County, and Name City of Rancho Cucamonga Address 10500 Civic Center Drive Rancho Cucamonga CA 91730 Telephone Federal ID No. or Social Security No. (909) 477-2700 hereinafter called CITY IT IS HEREBY AGREED AS FOLLOWS: (Use space below and atlditional bond sheets. Set forth service to be rendered amount to be paid manner of payment, time for performance or completion, determination of satisfactory performance and cause for termination, other terms and conditions, and attach plans, specifications, and addenda, if any.) TWENTY-FOURTH AMENDMENT Contract No. 94-524 providing law enforcement service to the City of Rancho Cucamonga is hereby amended, effective July 1, 2008, by replacing Schedule A, referred to in Paragraph IV, with the Schedule A attached hereto and incorporated herein by reference. Except as amended, all other terms and conditions of this contract remain as stated therein. P106 Page 1 of 2 P107 This page intentionally left blank] COUNTY OF SAN BERNARDINO Paul Biane, Chairman, Board of Supervisors Dated SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD Dena M. Smith Clerk of the Board of Supervisors of the County of San Bernardino. By as to Legal Form Reviewed by Contract County Counsel, by Kevin L. Norris, Deputy D t Date for Department Head Date ae Auditor/Controller-Recorder Use Onl ^ Contract Database ^ FAS Input Date Keyed By Page 2 of 2 City of Rancho Cucamonga (Pont or type name of corporation, company, contractor, etc.) By - Name (Authorized signature -sign in blue ink) Title (Pont or type name of person signing contract) (Pont or Type) Dated: Address: 10500 Civic Center Drive Rancho ('ucamonga, C:A 41730 SCHEDULE A LAW ENFORCEMENT SERVICES CONTRACT CITY OF RANCHO CUCAMONGA 2008-09 Additions Effective 711108: 2-Marked Units, 2-Unmarked Units, 1 -Midsize Truck w/MDC FY2008-09 LEVEL OF SERVICE COST ' 1 - Captain $ 263,737 2 - Lieutenant 377,335 ' ~ 13 - Sergeant 2,137,686 16 - Detective/Corporal 2,248,342 ' 101 - Deputy Sheriff 12,964,262 ' 10 - Deputy Sheriff -Motorcycle 1,331,698 ' 20 - Sheriff's Service Specialist 1,266,374 ' 1 - Supervising Office Specialist 69,686 ' 1 - Crime Analyst 90,161 ~ 2 - Secretary 116,068 18 - Office Specialist 1,044,615 ' 2 - Motor Pool Services Assistant 117,672 z 46 - Marked Unit 572,930 z 3 - Crown Vic -Slick Top (2-effective 7/1/08) 36,459 31 - Unmarked Unit (2-effective 7/1/08) 200,663 z z 1 - Mini Van (Non-Code 3) 4,371 z 7 - Mid-size Pickup (1-effective 7/1/08) 28,035 1 - Full Size Pickup 5,933 z 3 1 - Rapid Incident Response Vehicle (Equip Only) 1,238 z 12 - Motorcycle 94,824 s 1 - Suburban (Homeland Security) 1,271 a 4 - Citizen Patrol 5,084 a 2 - Bicycle 8 MATT Van 2,542 a 2 - SRO Van 3,270 ' Dispatch Services 1,357,768 111 - HTs (Equipment cost) (5-effective 7/1/08) 53,502 156 - HTs (Access & Maint Only) (5-effective 7/1/08) 97,344 9 - Additional MDCs (1-effective 7/1/08) 24,390 152 - Taser Replacement (Amortized over 4-years) 40,584 Administrative Support 114,427 Office Automation 62,408 Vehicle Insurance 80,555 Personnel.Liability & Bonding 434,290 County Administrative Cost 704,995 Startup Costs 3,744 TOTAL COST: $ 25,958,263 ' Monthly Payment Schedule: 1st payment due July 15, 2008: $2,163,195 2nd through 12th payments due 5th of each month: $2,163,188 t Personnel costs include salary and benefits and are subject to change by Board of Supervisors' action. 2 No replacement cost is includetl for donated and grant-funded vehicles. 3 Vehicle costs do not include fuel and maintenance. The city is responsible for fuel and maintenance of all contract vehicles. Any fuel and maintenance costs charged to the county will be billed to the city on a quarterly invoice. P108 Page 1 of 2 SCHEDULE A LAW ENFORCEMENT SERVICES CONTRACT CITY OF RANCHO CUCAMONGA 2008-09 Additional Costs Billed Quarterly: P109 The City will be billed on a quarterly basis for the following items: Actual overtime cost. (Estimated overtime cost for 2008-09 is $330,000, actual cost billed quarterly.) Actual on-call costs. (Estimated on-call cost for 2008-09 is $56,160, actual cost billed quarterly.) • Professional services from private vendors (i.e. towing, interpreters, temporary help, etc). Services, supplies, salaries and benefits above the contract formula. Fuel and maintenance. SAFETY: GENERAL: Captain - 1 Crime Analyst - 1.00 Lieutenant - 2 Crime Scene Specialist I - 0.00 Sergeant - 13 Sheriffs Service Specialist - 20.00 Detective/Corporal - 16 Secretary I - 2.00 Deputy Sheriff - 101 Supervising Office Specialist - 1.00 Deputy Sheriff -Motor - 10 Office Specialist - 18.00 Deputy Sheriff -SRO - 0 Secretary II - 0.00 Deputy Sheriff -DARE - 0 Motor Pool Svcs Assistant - 2.00 143 Dispatcher - 18.81 62.81 VEHICLES: MISCELLANEOUS EQUIPMENT: Marked Unit - 46 CV-Slick Top - 3 H.T. Radios - 156 Unmarked Unit - 31 Full-size Truck wlMDC - 1 DONATED VEHICLES: Mini Van Non-Code 3 - 1 Chevy Van - 1 Mid-size Pickup w/MDC - 7 Volkswagen Beetle - 1 ' Suburban(Homeland SEC; - 1 Motorhome (Satelite Office) - 1 ' Motorcycle - 12 Hummer - 1 ' Rapid Inc. Resp. (Tahoe) - 1 Suzuki Enduro Motorcycle - 2 Bicycle & MATT Van - 2 Electric Vehicle - 2' SRO Van - 2 Motorcycle Trailer - 1 ' Citizen Patrol - 4 9 111 Page 2 of 2 P110 ,,, T H E C 1 T Y O F R A N C U O C U C A M O N G A Staff Report DATE: June 12, 2008 TO: Chairman and Members of the Redevelopment Agency Jack Lam, City Manager/Executive Director FROM: Linda Daniels, Redevelopment Director SUBJECT: Consideration to adopt the Rancho Cucamonga Redevelopment Agency's Annual Budget for fiscal year 2008/2009. RECOMMENDATION: Approve the attached Resolution authorizing the fiscal year budget in the amount of $294,194,040. BACKGROUND/ANALYSIS: The proposed FY 2008/2009 Redevelopment Agency budget has been previously submitted to the Board and was reviewed during the workshop held on May 29, 2008. The Agency has several types of Funds: Administrative and Project Funds; restricted ("Pass-Through") accounts subject to Agency agreements; and special Trustee Funds which have been established to handle transactions on either bond or loan programs which have been established by the Redevelopment Agency. How do these funds work? The Redevelopment Agency receives tax increment from the County of San Bernardino. The Agency, in turn, places these monies into the restricted Pass-Through Funds according to the percentages provided by the County Auditor-Controller's Office. Funds received in the Pass- Through accounts are either restricted for specific purposes such as affordable housing, fire protection facilities, or regional storm drain capital improvements; paid to the taxing entity pursuant to the Pass-Through agreement in the cases of sewer, water and non-reclaimable water; or are transferred to the Trustee for payment to debt service on bonds sold by the Agency in prior years. Project and Administration Fund accounts operate with revenues derived from loans, fund transfers, proceeds of bonds, interest income, and other revenue sources that are specifically designated for project implementation. These project funds offer more flexibility in terms of implementation of programs established by the Redevelopment Agency because they are not restricted by prior Pass-Through Agreements, which were established with other taxing entities at the time the Project Area was adopted. Additionally, as specified in Health and Safety Code Section 33334.3(d), the Agency has determined that the administrative expenses approved in the fiscal year 2008/09 budget are necessary for the production, improvement, and preservation of low- and moderate-income housing. P111 PAGE 2 STAFF REPORT - FY 200$/09 REDEVELOPPJIENTRGENCY BUDGET ADOPTION Because of the State's interest in redevelopment agency budgets, the Agency's auditor is recommending the Agency include the following policy in the budget resolution: The Agency reserve any fund equity for the projects applicable to each fund. In this way, the funds are classified as "reserved" funds, eliminating the possibility that the State could impound the excess revenues. This has no detrimental effect on the Agency budget, and is consistent with the recommendations of the California Redevelopment Association. Res~pe~ctfu~lly submitted, Linda Daniels Redevelopment Director P112 RESOLUTION NO. -~/-~ O ~ ©v RESOLUTION OF THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY, ADOPTING THE AGENCY'S FISCAL YEAR 2008/2009 BUDGET WHEREAS, the Rancho Cucamonga Redevelopment Agency held a workshop to review the appropriation requests for the fiscal year 2008/2009 on May 29, 2008 ,and; WHEREAS, the Rancho Cucamonga Redevelopment Agency held a public hearing on the Agency's Annual Budget on this 12th day of June 2008, and; WHEREAS, the Rancho Cucamonga Redevelopment Agency desires to adopt a policy relating to reserving fund equity; NOW, THEREFORE, the Rancho Cucamonga Redevelopment Agency, California does hereby resolve on this 12th day of June 2008, as follows: SECTION 1: ADOPTION OF FISCAL YEAR 2008/2009 BUDGET. The Rancho Cucamonga Redevelopment Agency budget for the fiscal year 2008/2009 on file in the office of the Finance Officer, is hereby adopted in the amount of $294,194,040. SECTION 2: TRANSFERS OF FUNDS BETWEEN AND / OR WITHIN APPROPRIATIONS. The Rancho Cucamonga Redevelopment Agency may transfer funds between funds or activities set forth in the budget. The Executive Director or designee may transfer funds between appropriations within any fund as set forth in the budget and may transfer appropriations between activities within any cost center in the same fund. SECTION 3: TRANSFERS OF FUNDS BETWEEN FUNDS. Transfers of funds between funds as shown throughout the fund transfer sections of the budget shall be made as expenditures warrant such transfers. SECTION 4: DISBURSEMENTS. The Executive Director, the Finance Officer or the duly designated representative, are hereby empowered and authorized to disburse funds pursuant to appropriations provided for in the fiscal year 2008/2009 budget, and have the responsibility to establish procedures and to administratively implement and control the budget on all matters, except direct expenditures by Agency members which require Agency approval. SECTION 5: ADDITIONAL APPROPRIATIONS. The Redevelopment Agency may amend this budget to add or delete appropriations. P113 SECTION 6: POLICY RELATING TO RESERVING FUND EQUITY. The Redevelopment Agency shall reserve all fund equity for projects applicable to each fund. PASSED, APPROVED, AND ADOPTED this 12th day of June 2008. AYES: NOES: ABSENT: ABSTAINED: Donald J. Kurth, M.D., Chairman ATTEST: Debra J. Adams, CMC, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the Rancho Cucamonga Redevelopment Agency, California, at an adjourned meeting of said City Council held on the 12th day of June 2008. Executed this _ day of June 2008, at Rancho Cucamonga, California. Debra J. Adams, CMC, City Clerk P114 STAFF REPORT - RANCHO CUCAMONGA FIRE PROTECTION DISTRICT RANCHO Date: June 12, 2008 C,UCAMONGA To: President and Members of the Board of Directors Jack Lam, A.I.C. P., City Manager From: Peter M. Bryan, Fire Chief By: Janet Walker, Management Analyst II Subject: CONSIDERATION TO ADOPT THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT GENERAL FUND PRELIMINARY BUDGET IN THE AMOUNT OF $20,973,080 FOR FISCAL YEAR 2008/09 AND SET FINAL APPROVAL OF FINAL BUDGET FOR JULY 16, 2008 RECOMMENDATION Approval to adopt the Rancho Cucamonga Fire Protection District General Fund Preliminary Budget in the amount of $20,973,080 for Fiscal Year 2008/09 and set approval of final budget for the July 16, 2008 Board Meeting. BACKGROUND The Fire District's General Fund Preliminary Budget for Fiscal Year 2008/09 is herein recommended for adoption by the Board of Directors. A budget workshop was held on May 29th, which included specific discussion regarding the preliminary budget. The General Fund budget remains relatively unchanged from FY 2007/08 with the exception of fixed cost increases. Revenues are sufficient to support District operations without the infusion of City General Fund revenues. The proposed preliminary budget provides for continuation of existing fire protection and life safety service levels. Also incorporated in the General Fire Fund Budget is the full year funding of a second Medic Squad, continued improvement of the fire inspection program, and implementation of the GPS Tracking System for District vehicles. In response to fixed cost increases and the State's ongoing budget crisis, the proposed budget incorporates belt tightening reductions that include a reduction in travel and meeting expenses and other reduced expenditures, where passible, yet protecting the District's essential services. Please refer to the City Manager's Budget Message for specific details regarding the Fire District's General Fund. The advertised public hearing for adoption of the Fire District General Fund Final Budget is set for July 16, 2008. Resp cttully s miffed, eter . Bry ~ Fire Chief P115 Staff Report DATE: June 12, 2008 TO: President and Members of the Board of Directors Jack Lam, City Manager FROM: Tamara L. Layne, Finance Director SUBJECT: ADOPTION OF FISCAL YEAR 2008/09 GENE RECOMMENDATION Staff recommends that the Board approve the attached resolution adopting the General Fund's Article XIIIB Appropriations Limit for fiscal year 2008/09. BACKGROUND The State of California Constitution, Article XIIIB, requires that an appropriations limit be established annually by the Board of Directors. The factor used to develop the appropriations limit is the C.P.I. change and the change in the city's population. The attached resolution adopts the annual appropriations limit as required by Article XIIIB of the State Constitution. Based on the factors of the Gann Limit (a C.P.I. change of 4.29% and a population change of 1.34%), the District's fiscal year 2008/09 General Fund's appropriations limit is $19,902,148. The District's fiscal year 2008/09 General Fund appropriations subject to this limit total $12,578,800. It is anticipated that the District will be at 63.2% of its Gann Limit at June 30, 2009. Respectfully submitted, `~`~r~ Tamara L. Layne Finance Director Attachments i:Ifinancelbudget20091City Council staf(reportslFire District-Appropriations Limit 2008-09.doc P116 RESOLUTION NO. FD 08-~~~ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, ADOPTING A GENERAL FUND APPROPRIATIONS LIMIT FOR FISCAL YEAR 2008/09 PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION WHEREAS, Article XIIIB of the Constitution of the State of California provides that the total annual appropriations subject to limitation of the State and of each local government for the prior year be adjusted for change in the cost of living and population except as otherwise provided in Sections (5), (7) and (8) of said Article XIII-B. These exclusions are: Debt Service Funds, Revenue Bonds, Federal Funds and Grants, Contingencies, Emergencies, Enterprise Funds, Capital Improvement Carry-Overs, Capital Equipment, Intra-Governmental Service Funds, Reserves for Workers Compensation, Long-Term Disability, Retirement, Unemployment and other reserve funds that are deemed reasonable and proper per the aforementioned sections; and WHEREAS, pursuant to said Article XIII-B of the Constitution of the State of California, the Board of Directors of the Rancho Cucamonga Fire Protection District deems it to be in the best interest of the Rancho Cucamonga Fire Protection District to establish a General Fund appropriations limit for the fiscal year 2008/09; and WHEREAS, the Rancho Cucamonga Fire Protection District has determined that said General Fund's appropriations limit for the fiscal year 2008/09 be established in the amount of $19,902,148. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Rancho Cucamonga Fire Protection District that a General Fund appropriations limit for the fiscal year 2008/09 pursuant to Article XIII-B of the Constitution of the State of California be established in the amount of $19,902,148 and the same is hereby established. BE IT FURTHER RESOLVED that said appropriations limit herein established may be changed as deemed necessary by resolution of the Board of Directors. PASSED, APPROVED, and ADOPTED this 12~h day of June 2008. AYES: NOES: ABSENT: Donald J. Kurth, M.D., President STAFF REPORT RANQ-IO CUCAMONGA FIRE PROTECTION DISTRICT P117 RANCHO Date: June 12, 2008 CUCAMONGA To: President and Members of the Board of Directors Jack Lam, A.I.C. P., City Manager From: Peter M. Bryan, Fire Chief By: Janet Walker, Management Analyst II Subject: CONSIDERATION OF APPROVAL OF A RESOLUTION ADOPTING AN ANNUAL BUDGET IN THE AMOUNT OF $5,965,090 FOR FISCAL YEAR 2008/09 IN COMMUNITIES FACILITIES DISTRICT NO. 85-1 RECOMMENDATION Approval of a resolution adopting the Mello-Roos CFD No. 85-1 annual budget for Fiscal Year 2008/09 in the amount of $5,965,090. BACKGROUND Since Fiscal Year 1986/87, the Board has annually adopted a CFD budget to provide for operations and maintenance costs attributable to providing fire protection services within CFD No. 85-1. The proposed budget for Fiscal Year 2008/09 provides funding for a portion of the personnel and operational costs necessary to maintain existing fire and life safety service levels within CFD boundaries. The remaining operational and maintenance costs within the CFD are provided through the Fire District's General Fund budget. The proposed budget reflects the Board's continuing commitment of utilizing all other available revenues (General Fund and RDA Fire Fund) in order to annually maintain the lowest possible CFD budget and associated special tax. The District and RDA completed the construction and commenced operation of the Jersey and Banyan Street fire stations during Fiscal Year 1991/92. As a result, nine additional firefighters were hired to adequately staff these stations. The Fiscal Year 2008/09 budget continues to reflect ongoing operation of these fire stations. On May 21, 2008, the Board held an advertised public hearing and approved the Ordinance which establishes the special tax levy for Fiscal Year 2008/09 necessary to meet budget objectives of maintaining existing service levels. There were no public comments regarding the special tax levy during the advertised public hearing. P118 CONSIDERATION OF APPROVAL OF A RESOLUTION ADOPTING AN ANNUAL BUDGET IN PAGE 2 THE AMOUNT OF $5,965,090 FOR FISCAL YEAR 2008/09 IN COMMUNITIES FACILITIES DISTRICT N0.85-1 JUNE 12, 2008 ANALYSIS On May 29th, the City Council/Fire District Board of Directors conducted a comprehensive public budget workshop to review, comment and receive public testimony regarding all City, Fire District and RDA budgets. As part of the workshop, the Mello-Roos Community Facilities District No. 85-1 budget was discussed and is now presented for your consideration of final adoption. Respectfully submitted, Peter M. an~ Fire Chief Attachment P119 RESOLUTION NO. FD 08- a~3 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, APPROVING AND ADOPTING A BUDGET FOR MELLO-RODS COMMUNITY FACILITIES DISTRICT NO. 85-1 FOR FISCAL YEAR 2008/09 WHEREAS, a special election was held in the Mello-Roos Community Facilities District No. 85-1 (the "Community Facilities District") of the Rancho Cucamonga Fire Protection District (formerly Foothill Fire Protection District, the "District"), on Tuesday, December 10, 1985; and WHEREAS, as a result of the election, more thantwo-thirds (2/8) of the qualifed electors voted in favor of a proposition to authorize the levy of a special tax for fire suppression services and facilities, to establish an appropriations limit based upon changes in cost of living and changes in population; and WHEREAS, the Board of Directors has received and reviewed a budget for fiscal year 20087/09 for the Community Facilities District. NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve, determine and order as follows: Section 1. Adoption of Budget. The Board of Directors hereby approves and adopts the budget designated: Mello-Roos Community Facilities District No. 85-1 Annual Budget for Fiscal Year 2008/09 a copy of said budget being on file in the office of the Community Facilities District and available for public inspection. Section 2. Filing of Budget. The Secretary is hereby authorized and directed to forward a certified copy of this resolution and a copy of the budget to the Office of the Auditor-Controller for the County of San Bernardino. PASSED, APPROVED, and ADOPTED this _ day of , 2008 P120 STAFF REPORT RANQ~O GUCAMONGA FIRE PROTECTION DISTRICT Date: June 12, 2008 To: President and Members of the Board of Directors Jack Lam, A.I.C.P., City Manager From: Peter Nl. Bryan, Fire Chief By: Janet Walker, Management Analyst II jZANCxo ~,;UCAMONGA Subject: CONSIDERATION OF APPROVAL OF A RESOLUTION ESTABLISHING THE MAXIMUM TAX WHICH COULD BE LEVIED IN COMMUNITIES DISTRICT FACLITY NO. 85-1 FOR FISCAL YEAR 2008/09 Approval of a resolution establishing the maximum tax which could be levied in Mello-Roos Community Facilities District (CDF) No. 85-1 for Fiscal Year 2008/09. BACKGROUND The Mello-Roos CFD No. 85-1 provides voter approved authorization for the District to annually adjust the maximum special tax which could be levied within CFD No. 85-1. This authorization stipulates that the board shall annually adjust the maximum special tax based upon the lesser of; (1) changes in cost of living or (2) changes in cost of living and changes in population as defined in Section 7901 of the Government Code. Each year the Board adjusts, by resolution, the maximum tax which could be levied to provide for inflationary costs associated with providing fire protection services to the CFD. This year's calculation again utilizes changes in cost of living to adjust the maximum special tax. The cost of living increase utilized is 3.3% based upon the March Los Angeles area Consumer Price Index, which is less than those changes defined in Government Code Section 7901, calculated at 4.68%. Therefore, 3.3% was applied to Fiscal Year 2007/2008's maximum authorized tax in order to calculate the maximum special tax which could be levied in CFD No. 85-1 for Fiscal Year 2008/09. The maximum special tax which could be levied during each year since formation of the CFD is provided in the following table. Exhibit A to the attached resolution sets forth the maximum special tax rate the Board is authorized to levy in Fiscal Year 2008/09. P121 CONSIDERATION OF APPROVAL OF A RESOLUTION ESTABLISHING THE MAXIMUM TAX WHICH COULD BE LEVIED IN COMMUNITIES DISTRICT FACLITY NO.85-1 FOR FISCAL YEAR 2008/09 JUNE 12.2008 Fiscal Year 86/87 87/88 88/89 89/90 90/91 91/92 92/93 93!94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Residential $ 75.00 per DU $ 77.28 per DU $ 80.32 per DU $ 84.32 per DU $ 87.87 per DU $ 91.51 per DU $ 95.35 per DU $ 98.69 per DU $100.66 per DU $102.17 per DU $103.91 per DU $105.57 per DU $106.84 per DU $109.19 per DU $112.90 per DU $116.50 per DU $119.76 per DU $124.43 per DU $126.79 per DU $131.86 per DU $138.06 per DU $143.31 per DU $148.04 per DU DU =Dwelling Unit SF =Square Feet Commercial $ 75.00 per acre + .04 SF $ 77.28 per acre + .0412 SF $ 80.32 per acre + .0428 SF $ 84.32 per acre + .0449 SF $ 87.87 per acre + .0468 SF $ 91.51 per acre + .0487 SF $ 95.35 per acre + .051 SF $ 98.69 per acre + .053 SF $100.66 per acre + .054 SF $102.17 per acre + .055 SF $103.91 per acre + .056 SF $105.57 per acre + .057 SF $106.84 per acre + .058 SF $109.19 per acre + .059 SF $112.90 per acre + .061 SF $116.50 per acre + .063 SF $119.76 per acre + .065 SF $124.43 per acre + .068 SF $126.79 per acre + .069 SF $131.86 per acre + .072 SF $138.06 per acre + .075 SF $143.31 per acre + .078 SF $148.04 per acre + .080 SF Resp ctfully submitted, Peter M. Bryan V ~ Fire Chief Industrial PAGE 2 $ 75.00 per acre + .05 SF $ 77.28 per acre + .0515 SF $ 80.32 per acre + .0535 SF $ 84.32 per acre + .0562 SF $ 87.87 per acre + .0586 SF $ 91.51 per acre + .0610 SF $ 95.35 per acre + .064 SF $ 98.69 per acre + .066 SF $100.66 per acre + .067 SF $102.17 per acre + .068 SF $103.91 per acre + .069 SF $105.57 per acre + .070 SF $106.84 per acre + .071 SF $109.19 per acre + .073 SF $112.90 per acre + .076 SF $116.50 per acre + .078 SF $119.76 per acre + .080 SF $124.43 per acre + .083 SF $126.79 per acre + .085 SF $131.86 per acre + .088 SF $138.06 per acre + .092 SF $143.31 per acre + .095 SF $148.04 per acre + .098 SF Attachment P122 RESOLUTION NO. FD 08- ~ ~~ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, ESTABLISHING THE MAXIMUM SPECIAL TAX WHICH COULD BE LEVIED IN MELLO-ROOS COMMUNITY FACILITIES DISTRICT N0.85-1 FOR FISCAL YEAR 2008/09 WHEREAS, a special election was held in the Mello-Roos Community Facilities District No. 85-1 (the "Community Facilities District") of the Rancho Cucamonga Fire Protection District (formerly Foothill Fire Protection District, the "District"), on Tuesday, December 10, 1985; and WHEREAS, as a result of the election, more than two-thirds (2/3) of the qualified electors voted in favor of a proposition to authorize the levy of a special tax for fire suppression services and facilities, to establish an appropriations limit based upon changes in cost of living and changes in population; and WHEREAS, pursuant to the authorization of the qualified electorate, this Board of Directors desires to establish the maximum special tax which could be levied in the fiscal year 2008/09. NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve, determine and order as follows: SECTION 1. Establishing Maximum Special Tax. This Board of Directors hereby determines that the maximum special tax which could be levied in the Community Facilities District for fiscal year 2008/09 is set forth on Exhibit "A" attached hereto and made a part hereof. SECTION 2. Annual Adjustment in Maximum Special Tax. Pursuant to authorization of the qualified electorate, this Board of Directors hereby declares that it shall annually adjust the maximum special tax based upon the lesser of: (a) changes in cost of living; or (b) changes in cost of living and changes in population as defined in Section 7901 of the Government Code occurring within the Community Facilities District in the immediately preceding fiscal year. Resolution No. FD 08- Page 2 of 3 PASSED, APPROVED, and ADOPTED this day of , 2008. AYES: NOES: ABSENT: ABSTAINED: ATTEST: Debra J. Adams, Secretary Donald J. Kurth, M.D., President I, DEBRA J. ADAMS, SECRETARY of the Rancho Cucamonga Fire Protection District, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the Board of Directors of the Rancho Cucamonga Fire Protection District, at a special meeting of said Board held on the _ day of _2008. Executed this day of 2008 at Rancho Cucamonga, California. P123 Debra J. Adams, Secretary P124 EXHIBIT "A" CONSUMER PRICE INDEX 3.3% STRUCTURES Residential Multi-Family Commercial Industrial MAXIMUM SPECIAL TAX FOR MELLO-ROOS COMMUNITY FACILITIES DISTRICT NO. 85-1 IN FISCAL YEAR 2008/09 RANCHO CUCAMONGA FIRE PROTECTION DISTRICT MAXIMUM SPECIAL TAX 2007/2008 BASE FOR 2008/09 $143.31 DU $148.04 DU MAXIMUM ANNUAL SPECIAL TAX ($148.04) per DU 2 DU: 1.75 ($148.04) 3 DU: 2.25 ($148.04) 4 DU: 2.65 ($148.04) 5-14 DU: 2.65 ($148.04)+{.35(TU- 4)($148.04)} 15-30 DU: 6.15 ($148.04)+{.30(TU-14)($148.04)} 31-80 DU: 10.65 ($148.04)+{.25(TU-30)($148.04)} 81-up DU: 23.15 ($148.04)+{.20(TU-80)($148.04)} ($148.04) per acre + .080per SF ($148.04) per acre + .Ogg per SF NOTE: DU =Dwelling Unit TU =Total Units SF =Square Foot Reduction Commercial and industrial structures shall be granted a .01 cent reduction in the Special Tax for the installation of complete sprinkler systems. In addition, multi-floor commercial and industrial structures shall also be granted a .01 cent reduction (not cumulative) in Special Tax for each separate floor above or below the main ground floor of the structure. 1:\Clericai\WOrd Processing DocsVtesoluuons and Ordinances\Budged85-I 08-09 ResMaxTaxLery.doc P125 R A N C H O C U C A M O N G A FIRE PROTECTI O N D I S T R I C T Staff Report DATE: June 12, 2008 TO: President and Members of the Board of Directors Jack Lam, City Manager FROM: Tamara L. Layne, Finance Director SUBJECT: ADOPTION OF FISCAL YEAR 2008/09 ARTI RECOMMENDATION Staff recommends that the Board approve the attached resolution adopting the Article XIIIB Appropriations Limit for fiscal year 2008/09 for CFD No. 85-1. BACKGROUND When the District's CFD No. 85-1 was approved by the voters in 1985, an appropriations limit was established at $1,775,000. This limit was established at 1985 costs for operations and maintenance. In order to annually adjust the maximum spending authority (appropriations limit) to meet increased costs for operations and maintenance, the voters authorized the District to annually adjust the limit. This adjustment is based upon the same methodology used in calculating public agency Prop. 4 spending limits under Article XIIIB of the State of California Constitution. The factors used to develop the appropriations limit are the C.P.I. change and the change in the city's population. The attached resolution adopts the annual appropriations limit as required by Article XIIIB of the State Constitution. Based on the factors of the Gann Limit (a C.P.I. change of 4.29% and a population change of 1.34%), the District's CFD No. 85-1 fiscal year 2008/09 appropriations limit is $10,380,919. The District's CFD No. 85-1 fiscal year 2008/09 appropriations subject to this limit total $5,908,510. It is anticipated that the District will be at 56.9% of its Gann Limit at June 30, 2009. Respectfully submitted, v Tamara L. Layne -~~ Finance Director Attachment i:Ifinancelbudget20091City Council staff reportslFD-Appropriations Limit CFD 85-1 2008-09.doc P126 RESOLUTION NO. FD 08-tea. S A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, SAN BERNARDINO COUNTY, CALIFORNIA, ADOPTING AN APPROPRIATIONS LIMIT FOR MELLO-RODS COMMUNITY FACILITIES DISTRICT NO. 85-1 FOR FISCAL YEAR 2008/09 PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION WHEREAS, a special election was held in the Mello-Roos Community Facilities District No. 85-1 (the "Community Facilities District") of the Rancho Cucamonga Fire Protection District (formerly Foothill Fire Protection District, the "District"), on Tuesday, December 10, 1985; and WHEREAS, as a result of the election, more than two-thirds (2/3) of the qualified electors voted in favor of a proposition to authorize the levy of a special tax for fire suppression services and facilities, to establish an appropriations limit and to annually adjust the special tax and appropriations limit based upon changes in cost of living and changes in population; and WHEREAS, the Board of Directors desires to establish the appropriations limit for the Community Facilities District 85-1 for the fiscal year 2008/09; NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve, determine and order as follows: Section 1. Appropriations Limit. This Board of Directors hereby establishes the fiscal year 2008/09 appropriations limit for the Community Facilities District No. 85-1 at $10,380,919 based on the factors of the Gann limit (a C.P.I. change of 4.29% and a population change of 1.34%). Section 2. Approval of Electorate. This Board of Directors hereby finds and determines that the foregoing appropriations limit has been established by the qualified electorate at a special election held on December 10, 1985, in the manner provided by law. Section 3. Filing. The Secretary is hereby authorized and directed to file a certified copy of this resolution with the Board of Supervisors for San Bernardino County and with the office of the Auditor-Controller for the State of California. P127 PASSED, APPROVED and ADOPTED this 12~" day of June 2008. AYES: NOES: ABSENT: Donald J. Kurth, M.D., President ATTEST: Debra J. Adams, CMC, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at an adjourned meeting of said City Council held on the 121h day of June 2008. Executed this day of June 2008, at Rancho Cucamonga, California. Debra J. Adams, CMC, City Clerk l:Ifinancel6udge710091City Council staff reportslreso(ution-FD CFD 85-! Appropriations Limit 1008-09. doc STAFF REPORT RANCHO CUCAMONGA FIRE PROTECTION DISTRICT' Date: June 12, 2008 To: President and Members of the Board of Directors Jack Lam, A.I.C.P., City Manager From: Peter M. Bryan, Fire Chief By: Janet Walker, Management Analyst II RANCHO ~',UCAMONGA Subject: CONSIDERATION OF APPROVAL OF RESOLUTIONS ADOPTING A BUDGET IN THE AMOUNT OF $1,792,020 AND APPROVING THE APPROPRIATIONS LIMIT IN THE AMOUNT OF $2,442,996 FOR FISCAL YEAR 2008/09 IN COMMUNITY FACILITIES DISTRICT NO. 88-1 RECOMMENDATION Approval of resolutions adopting a budget in the amount of $1,792,020 and the appropriations limit in the amount of $2,442,996 for fiscal year 2008/09 in Mello-Roos Community Facilities District No. 88-1. BACKGROUND On April 4, 1989, the qualified voters approved the formation of Mello-Roos Community Facilities District No. 88-1 and authorized the District to annually levy a special tax to provide for fire protection services within northeast Etiwanda. On May 19, 1989, the Board adopted an ordinance authorizing the levy of a special tax in CFD 88-1. The ordinance authorizes the District, by resolution, to annually levy the special tax for purposes of land acquisition, fire station construction, purchase of equipment and operations and maintenance costs (which includes personnel) to provide fire protection services within CFD 88-1. Fiscal Year 2008/09 is the twentieth (20) consecutive year the District has levied a special tax to provide required revenues for capital improvements (land, fire station facility, equipment) and fire protection services (personnel, operations and maintenance (O&M)) within this CFD. With a growing CFD and a greater demand for increased emergency, fire protection and life safety services, construction of Fire Station No. 176 was completed in April 2004. Accordingly, the Fiscal Year 2008/09 budget includes fully burdened personnel costs associated with existing memorandums of understanding between the District and its bargaining units. Because CFD 88-1 does not currently generate sufficient funds to fully support the total annual staffing costs, supplemental funding will be necessary thru the Fire District's General Fund budget. P128 P129 CONSIDERATION OF APPROVAL OF RESOLUTIONS ADOPTING A BUDGET IN THE PAGE 2 AMOUNT OF $1,792,020 AND APPROVING THE APPROPRIATIONS LIMIT IN THE AMOUNT OF $2,442,996 FOR FISCAL YEAR 2008/09 IN COMMUNITY FACILITIES DISTRICT NO. 88-1 JUNE 12, 2008 The following resolutions are submitted for your consideration to adopt the fiscal year 2008/09 annual budget and appropriations limit in CFD No. 88-1. 1. A resolution adopting the fiscal year 2008/09 proposed budget in the amount of $1,792,020. 2. A resolution adopting the fiscal year 2008/09 appropriations limit in an amount equal to the maximum authorized special taxes which could be levied in fiscal year 2008/09. The resolution sets an appropriations limit for fiscal year 2008/09 at $2,442,996. On May 21, 2008, the Board adopted a resolution which establishes the annual CFD special tax in order to meet budget objectives. On May 29th, the Board conducted a comprehensive budget workshop regarding all budgets which included the proposed CFD No. 88-1 budget. The resolutions adopting CFD No. 88-1 annual budget and appropriations limit are now presented for your consideration of approval. submitted, Fire Chief Attachments P130 RESOLUTION NO. FD 08- ~~~ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, CITY OF RANCHO CUCAMONGA, COUNTY OF SAN BERNARDINO, STATE .OF CALIFORNIA, APPROVING AND ADOPTING A BUDGET FOR COMMUNITY FACILITIES DISTRICT N0.88-1 FOR FISCAL YEAR 2008/09 WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District (formerly Foothill Fire Protection District, hereinafter referred to as the "legislative body") has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California. This Community Facilities is designated as COMMUNITY FACILITIES DISTRICT N0.88- 1 (hereinafter referred to as the "District"); and WHEREAS, this legislative body has received and reviewed a budget for fiscal year 2008/09 for the District. NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve, determine and order as follows: Section 1. Adoption of Budget. The Board of Directors hereby approves and adopts the budget designated: "Mello-Roos Community Facilities District No. 88-1 Annual Budget for Fiscal Year 2008/09" and is on file in the office of the District and available for public inspection. PASSED, APPROVED, and ADOPTED this day of , 2008. AYES: NOES: ABSENT: ABSTAINED: Donald J. Kurth, M.D., President P131 RESOLUTION NO. FD 08- (~~~ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING APPROPRIATIONS LIMIT FOR COMMUNITY FACILITIES DISTRICT N0.88-1 FOR FISCAL YEAR 2008/09 WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District (formerly Foothill Fire Protection District, hereinafter referred to as the "legislative body") has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California. This Community Facilities District is designated as COMMUNITY FACILITIES DISTRICT NO. 88-1 (hereinafter referred to as the "District"); and WHEREAS, as a result of such election, the qualified electors of the District authorized the establishment of an Article XIII-B appropriations limit for the District equal to the maximum authorized special taxes which may be levied in any fiscal year; and WHEREAS, this legislative body desires to establish the appropriations limit for the District for fiscal year 2008/09. NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve, determine and order as. follows: SECTION 1. Appropriations Limit. This legislative body hereby establishes the appropriations limit for Community Facilities District No. 88-1 forfiscal year2008/09 in an amount equal to $2,442,996. SECTION 2. Approval by Electorate. This legislative body hereby finds and determines that the foregoing appropriations limit has been authorized by the qualified electors of the District at a special election held on April 4, 1989, in the manner provided bylaw. P132 Resolution No. FD 08- Page 2 of 2 PASSED, APPROVED, and ADOPTED this day of , 2008. AYES: NOES: ABSENT: ABSTAINED: ATTEST: Debra J. Adams, Secretary Donald J. Kurth, M.D., President I, DEBRA J. ADAMS, SECRETARY of the Rancho Cucamonga Fire Protection District, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the Board of Directors of the Rancho Cucamonga Fire Protection District, at a special meeting of said Board held of the _ day of 2008. Executed this day of 2008 at Rancho Cucamonga, California. Debra J. Adams, Secretary I:\Clerical\WOrd Processing DocsVtesolutions and Ordinances\Budgel\F2esoApp881 08-09.doc P133 F,: \< T H E C I T Y A N C t1 O C U C A M O N G A Staff Report DATE: June 12, 2008 TO: Mayor and Members of the City Council Jack Lam, City Manager FROM: Tamara L. Layne, Finance Director SUBJECT: ADOPTION OF FISCAL YEAR 2008/09 BUDGET AND ARTICLE XIIIB APPROPRIATIONS LIMIT RECOMMENDATION 1. Council approve the attached resolution authorizing the fiscal year 2008/09 budget. 2. Council approve the attached resolution adopting the Article XIIIB Appropriations Limit for fiscal year 2008/09. BACKGROUND 1. The City of Rancho Cucamonga has proposed aone-year program of service with the 2008/09 fiscal year budget. The attached resolution adopts that one- year budget and reflects any changes recommended and approved by Council at the publicly held budget study session. FISCAL YEAR 2008/09 BUDGET General Fund $ 69,651,570 Library Services $ 4,489,410 Capital Improvement Program $ 31,110,030 Special Funds $ 53,206,520 Total $158.457 530 2. The State of California Constitution, Article XIIIB, requires that an appropriations limit be established annually by the City Council. The factor used to develop the appropriations limit is the C.P.I. change and the change in the City's population. P134 The additional attached resolution adopts the annual appropriations limit as required by Article XIIIB of the State Constitution. Based on the factors of the Gann Limit (a C.P.I. change of 4.29% and a population change of 1.34%), the City's fiscal year 2008/09 appropriations limit is $58,453,873. The City's fiscal year 2008/09 appropriations subject to this limit total $46,679,110. It is anticipated that the City will be at 79.9% of its Gann Limit at June 30, 2009. Upon further consideration of the various components of the Gann Limit calculation for the prior year, it has been determined that the City was at 76.5% of its Gann Limit at June 30, 2008 rather than the 62.2% originally calculated. Respecttully submitted, ~~~Y~ti~~''~~ / mot/ Tamara L. Layne Finance Director Attachments i:Ifinancelbudget20091City Council staff reportslCity budget adoption 2008-09.doc -2- P135 RESOLUTION NO. 08-~~3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA ADOPTING THE CITY'S FISCAL YEAR 2008/09 BUDGET WHEREAS, the Rancho Cucamonga City Council held a workshop to review the appropriation requests for the fiscal year 2008/09 on May 29th, 2008, and; WHEREAS, the Rancho Cucamonga City Council held a public hearing on the General City Budget, and; WHEREAS, this public hearing was published in a newspaper of general circulation and held on June 12, 2008; NOW, THEREFORE, the City Council of the City of Rancho Cucamonga, California does hereby resolve on this 12th day of June 2008, as follows: SECTION 1: ADOPTION OF FISCAL YEAR 2008/09 BUDGET. The City of Rancho Cucamonga budget for the fiscal year 2008/09, on file in the office of the Finance Director, is hereby adopted in the amount of $158,457,530. This budget total includes appropriations for both the general and other special purpose funds. N AND/ APPROPRIATIONS. The City Council of the City of Rancho Cucamonga may transfer funds between funds or activities set forth in the budget. The City Manager may transfers funds between appropriations within any fund as set forth in the budget and may transfer appropriations between activities within any cost center in the same fund. SECTION 3: TRANSFERS OF FUNDS BETWEEN FUNDS. Transfers of funds between funds as shown throughout the fund transfer sections of the budget shall be made as expenditures warrant such transfers. SECTION 4: DISBURSEMENTS. The City Manager and the Finance Director, or the duly designated representative, are hereby empowered and authorized to disburse funds pursuant to appropriations provided for in the fiscal year 2008/09 budget, and have the responsibility to establish procedures and to administratively implement and control the budget on all matters, except direct expenditures by Councilmembers which require Council approval. P136 Resolution No. 08- Page 2 SECTION 5: ADDITIONAL APPROPRIATIONS. The City Council may amend this temporary budget to add or delete appropriations. PASSED, APPROVED, AND ADOPTED this 12~" day of June 2008. AYES: NOES: ABSENT: ABSTAINED: Donald J. Kurth, M.D., Mayor ATTEST: Debra J. Adams, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at an adjourned meeting of said City Council held on the 12~h day of June 2008. Executed this day of June 2008, at Rancho Cucamonga, California. Debra J. Adams, City Clerk i:Ifinancelbudget20091City Council staff reportslresolution-City budget 2008-09.doc P137 RESOLUTION NO. 08-~`~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA ESTABLISHING AN APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA STATE CONSTITUTION FOR FISCAL YEAR 2008/09 WHEREAS, Article XIIIB of the State of California provides that the total annual appropriations subject to limitation of the State and of each local government shall not exceed the appropriations limit of such entity of government for the prior year adjusted for changes in the cost of living and population except as otherwise provided in said Article XIIIB, and; WHEREAS, pursuant to said Article XIIIB of the Constitution of the State of California, the City Council of the City of Rancho Cucamonga deems it to be in the best interests of the City of Rancho Cucamonga to establish an appropriations limit for fiscal year 2008/09, and; WHEREAS, the Finance Director of the City of Rancho Cucamonga has determined that said appropriations limit for the fiscal year 2008/09 be established in the amount of $58,453,873. NOW, THEREFORE, the City Council of the City of Rancho Cucamonga, California does hereby resolve that an appropriations limit for the fiscal year 2008/09 pursuant to Article XIIIB of the Constitution of the State of California be established in the amount of $58,453,873 and the same is hereby established. BE IT FURTHER RESOLVED that said appropriations limit herein established may be changed as deemed necessary by resolution of the City Council. PASSED, APPROVED, AND ADOPTED this 12th day of June 2008. AYES: NOES: ABSENT: ABSTAINED: Donald J. Kurth, M.D., Mayor P138 Resolution 08- Page 2 ATTEST: Debra J. Adams, CMC, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at an adjourned meeting of said City Council held on the 12~h day of June 2008. Executed this day of June 2008, at Rancho Cucamonga, California. Debra J. Adams, CMC, City Clerk i:Ifinancel6udget20091City Council staffreportslResolution-CityAppropriations Limit 2008-09.doc