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Home My WebLink About2010/06/30 - Minutes - SpecialJune 30, 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 Wednesday, June 30, 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 4:05 p.m. Present were Councilmembers/Agencymembers/Boardmembers: Sam Spagnolo, Diane Williams (arrived at 4:16 p.m.), Mayor Pro TemNice ChairmanNice President L. Dennis Michael and Mayor/Chairman/President Donald J. Kurth. Councilmember/Agencymember/Boardmember Rex Gutierrez was absent. Also present were: Jack Lam, City Manager/Executive Director; John Gillison, Assistant City Manager; Linda Daniels, Deputy City Manager/Community and Economic Development; James Troyer, Planning Director; Kevin McArdle, Community Services Director; Trang Huynh, Building and Safety Official; Robert Karatsu, Library Director; Bill Wittkopf, Public Works Services Director; Chris Paxton, Human Resources 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 COM.MiJNICATIONS No communication was made from the public. C. CONSENT CALENDAR - CITY COUNCIL The following Consent Calendar items are expected to be routine and non-controversial. Thev will be octet upon by the City Council at one time without discussion. Any item may be removed by a Councilmember for discussion. C1. AUTHORIZATION TO AWARD A SINGLE SOURCE CONTRACT TO EMCOR SERVICE FOR EMERGENCY PURCHASE AND INSTALLATION OF TWO 12-TON AIR CONDITIONING UNITS FOR THE CITY HALL SERVER ROOM IN THE AMOUNT OF $124,890 ($118,290 FOR THE UNITS PLUS $6,600 FORA 5 YEAR EXTENDED WARRANTY) AND AUTHORIZATION TO TRANSFER $124,890 FROM ACCOUNT NUMBER 1025001-5417 INTO ACCOUNT NUMBERS 1025001-5602 ($118,290) AND 1025001-5300 ($6,600) IF NECESSARY. MOTION: Moved by Michael, seconded by Spagnolo, to approve the staff recommendation in the staff report contained within the Consent Calendar. Motion carried 3-0 (Council members Gutierrez and Williams absent). Special City Council/Redevelopment Agency/Fire Protection District Meeting June 30, 2010 -- Page 1 of 3 D. CITY MANAGER'S STAFF REPORTS =CITY COUNCIL < D1. CONSIDERATION OF LATEST BUDGET INFORMATION AND RECOMMENDATIONS • CURRENT FINANCIAL DATA AND TRENDS • RECAP OF BUDGETARY ACTION • SHERIFF CONTRACT RECOMMENDATIONS CONTINGENCY PLANNING FOR ADDITIONAL RDA TAKEAWAYS • CONTINGENCY PLANNING FOR FUTURE MEDICAL INSURANCE AND PERS CHANGES A staff report was presented by Jack Lam, City Manager/Executive Director. Mr. Lam presented a summary of the City General Fund, Library Services and Fire Protection District budgets. He reported that there is currently an 11.5% vacancy rate for full time positions, which equates to 59 unfunded positions. Mr. Lam identified previous budget reductions that have been made in order to preserve basic services. Lastly, he highlighted the three budget triggers that he had previously identified which could negatively impact the Adopted Budget. These were as follows: If revenues do not bottom out or improve, if the State seizes additional money, or if labor does not relieve the County of the additional burden of salary increases. Today's meeting is the result of the occurrence of the third trigger point. Sales tax gross receipts by quarter were discussed, as well as property tax collections. In response to Councilmember Spagnolo, the decline in property tax was discussed. Mr. Lam indicated that the decline was due to reassessments and delinquencies. In response to Councilmember Williams, Mr. Gillison stated that property owners have up to five years to pay their property tax and addressed how delinquencies are paid to the City. Also presented was an update on the unemployment rate Mr. Lam discussed the State budget and possible additional impacts to the'City. RDA take-aways were highlighted and it was reported that $32,108,990 was paid in FY 2009/10. The current estimated take-away for FY 2010/11 is $6,604,520 and it is possible that another $6-7 million in redevelopment funds could occur. It was noted that the loss of this funding would deplete the construction funding for the Arrow and I-15 off ramp project. In response to Mayor Pro Tem Michael, Linda Daniels noted that the Agency added money to the bond funding and confirmed that bond funding could not be used to pay the State. In response to Mayor Kurth, Mr. Lam confirmed that RDA money paid to the State will not be reimbursed to the Agency. In response to Mayor Pro Tem Michael, the impact to the RDA Fire Fund was discussed. Bonds would not be sold, but Mrs. Daniels indicated that if this money were taken away, the District would need to wait to reconstruct Station 172 until there was sufficient revenue in the fund. The Sheriff's contract was discussed, with Mr. Lam indicating that the recent labor decision to adhere to the labor contract has resulted in an impact of $1,449,857. The San Bernardino County Sheriff's Department is making changes to improve efficiency, including reducing overtime and on-call, alternative shift scheduling and negotiating additional cost-saving measures. Shift changes could save between 20 - 30%. Mr. Lam recommended that the City Council direct the Police Chief to manage resources to maintain street level services while staying within the adopted budget. Also, he recommended appropriating up to $150,000 from the Law Enforcement Reserve to facilitate any shift transitions necessary to stay within the adopted budget. There was discussion of the Law Enforcement Reserve. Special City Council/Redevelopment Agency/Fire Protection District Meeting June 30, 2010 -- Page 2 of 3 In response to Councilmember Spagnolo, Mr. Lam indicated that the alternate shift scheduling only affects the sworn officers but noted that non-sworn personnel would also be affected by the cost-saving measures. In response to Mayor Pro Tem Michael, Mr. Lam confirmed that it may take longer for things to get done but indicated that the changes would not affect street level services. Mr. Lam presented an update to the City Council on medical health premiums. The Fire District is anticipating that the CaIPERS health premiums will rise an average of 9.1% by January, 2011. The City should expect a similar potential increase (6-11%) from City providers. To address this, he proposed a new insurance coverage period, approval to broker an RFP in the summer of 2010, approval to form an Employee Medical Benefits Committee to discuss ways to reduce medical insurance costs. These actions are expected to result in re-pricing of medical insurance and new contracts by January, 2011. Also discussed was the PERS Pension Rates, with Mr. Lam recommending the establishment of a Fire District PERS reserve and research of Pension Bonds. In closing, Mr. Lam summarized the recommendations, as follows: • Continue attrition management • Continue restructuring/reorganization • Direct Police Chief to manage resources to maintain street level services while staying within the adopted budget. • Appropriate up to $150,000 from Law Enforcement reserves as needed to facilitate any staff or shift transitions necessary to stay within adopted budget. • Complete contingency planning and revision of implementation schedules for additional RDA take- aways by the State in FY2010-11. • Form Employee Medical Benefits Committee • Prepare Broker RFP for 2010 • Study Pension Bonds and continue preparation for PERS increases • Strengthen funding for PERS reserves In response to Mayor Pro Tem Michael, Mr. Lam addressed the formation of the Employee Medical Benefits Committee. Jack Lam also addressed the recommendation to strengthen funding in the reserves. John Gillison indicated that this would not be done in every fund, just the significant ones. In response to Mayor Pro Tem Michael, Mr. Lam confirmed that he would report back to the City Council if the other trigger points were reached. The City Council members expressed their support of the recommendations and their appreciation of the City Manager and staff. MOTION: Moved by Williams, seconded by Michael, to approve the staff recommendations listed above. Motion carried 4-0. (Council member Gutierrez absent). E. ADJOURNMENT The meeting adjourned at 4:58 p.m. R spectfullly/s/ubmitted, y a yet/ D bra L. McNa , MMC Assistant City Clerk/Records Manager Approved: July 21, 2010 Special City Council/Redevelopment Agency/Fire Protection District Meeting June 30, 2010 -- Page 3 of 3