HomeMy WebLinkAbout2010/06/03 - Minutes - SpecialJune 3, 2010
CITY OF RANCHO CUCAMONGA
CITY COUNCIL MINUTES
REDEVELOPMENT AGENCY MINUTES
FIRE PROTECTION DISTRICT MINUTES
SPECIAL MEETING
A. CALL TO ORDER
A special meeting of the Rancho Cucamonga City Council, Redevelopment Agency and Fire Protection District
was held on Thursday, June 3, 2010, in the Tri-Communities Room at the Civic Center located at 10500 Civic
Center Drive, Rancho Cucamonga, California. Mayor/Chairman/President Donald J. Kurth called the meeting
to order at 5:00 p.m.
Present were Councilmembers/Agencymembers/Boardmembers: Rex Gutierrez, Sam Spagnolo, Diane
Williams, Mayor Pro Tem/Vice Chairman/Vice President L. Dennis Michael and Mayor/Chairman/President
Donald J. Kurth.
Also present were: Jack Lam, City Manager/Executive Director; John Gillison, Assistant City Manager; Linda
Daniels, Deputy City Manager/Community and Economic Development; Tamara Layne, Finance Director;
James Troyer, Planning Director; Mark Steuer, Director Engineering Services/City Engineer; Kevin McArdle,
Community Services Director; Trang Huynh, Building and Safety Official; Robert Karatsu, Library Director; Bill
Wittkopf, Public Works Services Director; Chief Joe Cusimano, Rancho Cucamonga Police Department; Chief
Mike Bell, Rancho Cucamonga Fire Protection District; Joe Pulcinella, Animal Services Director; Jim Frost,
City Treasurer and Debra L. McKay, Assistant City Clerk/Records Manager.
B. PUBLIC COMMUNICATIONS
No communication was made from the public.
C. ITEMS FOR DISCUSSION
C1. DISCUSSION AND CONSIDERATION OF PROPOSED BUDGETS FOR FISCAL YEAR 2009/10
A staff report was presented by Jack Lam, City Manager/Executive Director.
In response to Councilmember Gutierrez, Mr. Lam indicated that retail sales data lags about three months. He
stated that there have been hopeful signs of increased economic activity but did not yet know what this will
mean specifically for the City in the upcoming fiscal year. Discussion was held.
Mr. Lam noted that the City General Fund is recommended to be $62,794,080, which includes a $942,400 use
of reserves. This is 5.5% lower than the Fiscal Year 2009110 budget. It was reported that the Fire District
operating budget is recommended to be $24,964,580, which includes a $304,770 use of reserves. This is
3.1% lower than the Fiscal Year 2009/10 budget. Lastly, the Library operating budget is recommended at
$4,048,750 and is 4.5% lower than the Fiscal Year 2009/10 budget.
Staff has been reduced by 59 FTE positions or 11.5% of the workforce. Mr. Lam reported that a PERS rate
stabilization reserve has been established in the amount of $787,900. In response to Mayor Pro Tem Michael,
Mr. Lam reported that these funds were provided from the annual operating cost as the Fire District has no
unfunded liability.
Special City Council/Redevelopment Agency/Fire Protection District Meeting
June 3, 2010
Page 2 of 2
Also addressed were other budget issues, including the State budget challenge. Past remedies include taking
property tax and sales tax to balance the State budget. Recently, Mr. Lam noted that the State took gas tax
funds and $32 million in redevelopment funds. There is an initiative effort underway for the November, 2010
ballot to block future State take-sways of local revenue. Mr. Lam noted that the additional impact to the
City/Fire District/Agency is not known at this time.
Mr. Lam noted that the proposed FY 2010/11 budget reflects the current realities of the Great Recession and
also the priorities and goals of the City Council. He reported that after three years of cost cutting, the proposed
budget takes Rancho Cucamonga to the verge of having to implement service level and workforce reduction if
the revenue loss does not abate. However, the City Manager stressed some positive news, including the City's
AA Credit rating, the fact that the City has a reserve of 22.2% of its budget and the preservation of basic City
services with a priority on public safety. Also, he reported that the City and the Fire District have no unfunded
OPEB liability (unlike many cities) and the City's PERS funding is at 94%.
In response to Mayor Pro Tem Michael, Mr. Lam confirmed that there was not a structural deficit. Also
discussed were a number of capital improvement projects being planned in the upcoming fiscal year. In
response to Councilmember Gutierrez, discussion was held regarding the widening of Foothill, the Fire District
Administration building and the Hellman Storm Drain project. Mr. Lam indicated that bonds were sold for the
first lwo projects and indicated that these bond proceeds may only be used for these purposes.
Councilmember Gutierrez confirmed that public safety was a priority but noted that all services are important to
the community. He hoped that everyone would do what they could to save money. In response to Mayor Pro
Tem Michael, Mr. Lam reported that all Departments contributed to the cost cutting efforts. However, he
indicated that the County is currently renegotiating with SBPEA regarding a previously approved raise. There
is no funding in the proposed budget for any increase in the Sheriff contract cost, which is a potential $1.5
million increase. Mr. Lam noted that the City employees agreed to implement furloughs in order to help
balance the budget.
In response to Councilmember Williams, Mr. Lam addressed technology and indicated that staff is pushing
back various equipment replacement schedules. However, he confirmed the importance of providing staff
with the tools to do the job. There are reserves in place to replace items when needed.
In conclusion, Mr. Lam stated that the budgets will be considered for adoption at a later date and welcomed
any questions between now and the budget hearing. Mayor Kurth and the City Council appreciated all of the
measures which had been taken to balance the budget and thanked everyone for their support during this
process.
Mayor Kurth announced that at the Closed Session on June 2, 2010 a settlement has been reached in the
matter of Campbell v City of Rancho Cucamonga, Case No. CIVRS905562.
E. ADJOURNMENT
The meeting adjourned at 5:55 p.m.
Re ectfully`s~u~bm/ fitted, /
D ra ~ cNay, MMc
Assi nt City Clerk/Records Manager
Approved: June 16, 2010