BACKGROUND:
As part of the Fiscal Year (FY) 2023/2024 and 2024/2025 biennial budget process and timeline, this is the opportunity to brief City Council and our constituents on the roles and responsibilities of the Administrative Services Department.
DISCUSSION:
The Administrative Services Department coordinates and leads the efforts of the following departments:
•Facilities
•Finance
•Information Technology (IT)/Management Information Systems (MIS) •Risk Management
•Housing Successor Agency
•Successor Agency to the former Redevelopment Agency
•General Government
To be consistent with information provided in previous reports, the following chart shows how staffing has changed over the past 10 years using budget data.
FY13/14 FY20/21 FY22/23 FY 23/24
Admin. Services 1.00 1.00 1.00 1.60
Licensing/Reception 2.00 3.00 4.00 3.50
Finance 6.33 7.75 8.30 7.00
IT 2.12 3.00 4.00 5.00
Housing 0.50 0.25 0.20 0.40
Facilities 2.00 3.00 3.00 3.00
RDA 1.25 0.00 0.00 0.00
Admin. Services Total 15.20 18.00 20.50 20.50
The Administrative Services Department works to ensure the continued economic and financial health of the City, the strength and security of the City’s physical assets through its’ management of facilities and information systems, along with mitigating risks through appropriate insurance activities, to include (but not limited to) training programs offered through membership in our Joint Powers Authority. Working through other departments and their corresponding divisions, the Administrative Services Department provides direction to, coordinates and administers these functions to support the City’s primary mission to service the needs of the citizens and businesses within the Cathedral City community. Administrative Services also administers the city’s 457(b) employee retirement plans. Goals for the upcoming year are included in the attachment labeled Administrative Services Goals and Initiatives.
FACILITIES DIVISION
The Facilities Division includes the following staff:
•Facilities and Field Superintendent
•Assistant Facilities Maintenance Supervisor
•Facilities Maintenance Worker II
Facilities Division consists of a team of highly skilled trade staff maintaining the City’s buildings, facilities, and since 2015, has been responsible for the maintenance of adjacent grounds, which surround the facilities, once done by the city’s Public Works Division. The mission is to provide quality service in an efficient and professional manner to ensure building safety and comfort. Facilities is responsible for the detailed daily preventative maintenance and repair to keep the City’s buildings, facilities, and adjacent grounds in a well-maintained operational condition. Facilities prepares specifications for projects related to city facilities, such as roof replacement, interior building remodels, contracted exterior painting projects, electrical conduit installation and repair, along with heating, ventilation, and air conditioning repairs or replacements.
In doing so, the staff embraces safety, courtesy, integrity, and excellent customer service while providing a work environment that is comfortable, safe, and easy to maintain.
Additional services and functions include:
•Analysis of energy consumption and means by which to minimize consumption and maximize savings.
•Create and recreate landscaping that conserves water, requires less maintenance and still has a pleasing appearance.
•Investigate products, methods, and procedures that enhance the facilities and grounds, yet provide for conservation, less maintenance, and longer life. •Facilitate repairs that not only address the immediate problem but project forward for longer term solutions.
•Provide information to our end-users as to the best approach to get the best and long-lasting use out of our facilities.
•Provide swift and comprehensive response to not only COVID-19, but a multitude of occurrences that periodically present themselves.
•Provide 24/7/365 emergency service on all calls that require Facilities presence.
Staff has different levels of expertise in various fields. Facilities staff hold a B, (general contractor) license, a C10, (electrical contractor) license, a State of California Energy Auditors Certificate, a LA City Stationary Steam Engineers License, a certificate of completion in Heating, Ventilation, and Air Conditioning, and a UBC Masonry Inspectors License.
FINANCE DIVISION:
The overall mission of the Finance Division is to be the City’s financial organization to ensure we responsibly account for and fiscally manage the City’s financial portfolio (which includes over 50 different funds). With being a full-service City, we support not only the traditional City Hall and Public Works (non-sworn) functions, but also are required to develop and train staff to effectively account for and support the Public Safety (sworn) functions, including the Police and Fire departments. Note - many cities in the Coachella Valley contract out these functions to the Riverside County and their finance department does not have this added responsibility.
It is incumbent upon the Finance Division to ensure we use and apply Government Accounting Standards Board (GASB) statements and pronouncements appropriately to ensure we follow Generally Accepted Accounting Principal (GAAP) standards. In doing so, we must guide and mentor the financial staff to ensure there is applicable training and staff development for their individual and collective growth to meet the continued success of our organization, the City and the citizens we serve.
DISCUSSION:
Finance staff planning and organizing activities include:
•Recommend and assist in the implementation of goals, objectives, policies and procedures for our primary activities:
oPaying our Vendors,
oPaying our People, and
oEnsuring we properly account for these primary activities •Establish schedules and methods for finance and accounting processes and services.
•Coordinate finance and accounting related activities with other City departments and divisions.
Finance staff identify, manage and prepare:
•budget preparation and administration, including monthly budget report analysis, •cost estimates,
•various financial statements and reports throughout the annual reporting process. •monitor and control expenditures,
•monitor fixed assets and capital projects,
•maintain City debt records including adherence to bond and loan requirements and timely debt service payments,
•reconciliation of daily and monthly bank activity and statements, •fiscal agent activities,
•financial investments,
•other financial records, e.g., 501 (C),
•monthly and year-end general ledger closing processes.
Activities the Finance Division Staff perform:
•special accounting and financial reporting required by Federal, State, County and commercial grants,
•technical work in developing, managing, and participating in internal audits by coordinating the preparation of external audit materials for federal, state, county and internal/independent annual audit and reporting activities, •preparation of State and Federal reports, including tax reporting to the Internal Revenue Service (IRS) and the State of California,
•special accounting procedures, budgetary accounting procedures and systems, •coordinating and supporting auditors and their activities in both internal audits of financial records for other departments, e.g., grants, and external audits, e.g., Cannabis, TOT, and reviews of financial records while ensuring audits are completed successfully.,
•functioning as the lead internal organization for development and functional maintenance of the City-wide Enterprise Resource Planning (ERP) system; while also serving as the process owner for the financial and accounting, payroll; licensing and inventory software and the associated applications; monitor, track and help resolve user or system issues.
Finance Staff Required Knowledge, Skills and Abilities
Extensive knowledge of municipal financial planning and budgeting, accounting and financial reporting, payroll, auditing, licensing and cash receipting/revenue recognition.
Interpreting and applying city, state, and federal policies, laws and regulations to include, but not limited to, laws regulating public finance and fiscal operations. Design and implement sound accounting and record keeping systems with strong internal controls
Decide workload/priorities/applicable training to ensure we provide superior & timely support to our internal departments/divisions, including Elected Officials), while also supporting our external constituents and vendors/suppliers and external agencies at the federal, state, county and municipal levels. We have a departmental task list with daily, weekly, monthly, quarterly, annual and as needed activities We are the hub for the City-wide Biennial Budget:
•Preparing budget materials from the Financial system,
•Directing staff on budget development and preparation, •Providing department and division budget estimates and materials for review, •Provide advice/direction on how/what/when/why for their department budget inputs (adds/deletes/edits) to what our department provides to them •Prepare Council Budget book for review
•Prepare Adopted Budget in accordance with GFOA guidance Throughout budget implementation, as City Council approves budget actions throughout each fiscal year, the staff accounts for and amends department/division budgets accordingly.
Beyond that, at the current and proposed staffing level, we are still strongly inhibited from effectively handling the following tasks:
•Detailed risk management financial and ongoing department review activities, •Automated grant management, and more detailed purchasing activities to account for encumbrances
A detailed Finance Division reporting list, when applicable, is below:
Financial Reporting and Timelines:
Report Due Date(s)
Certified Access Specialist program (CASp) 7/31 and each Quarter Sales Tax – CA Dept Tax & Fee Admin (CDTFA) 7/31 and each Quarter Recognized Obligation Payment Sched (ROPS) PPA 10/01
ROPS Amendment 10/01
ROPS 11/01
AB 1600 Development Impact Fee 11/15
RRF-1 & CT-TR-1 for CURC 11/15
IRS 990 11/15
CA 199 11/15
Comprehensive Annual Financial Report (CAFR)
•Draft to Auditors 10/30
•Feedback from Auditors 11/20
•Final 12/15
•City Council 12/31
•GFOA Submission 12/31
Ground Emergency Medical Transport (GEMT) 11/30
Budget Biennial
•Schedule from December through May Various
•GFOA Submission 06/30
State Controller’s Report (SCR)
•City/CSD/PFA 01/31
•Single Audit
oSCR, Caltrans, Federal Clearinghouse 01/31
Underground Storage Tank - CDTFA 01/25
Possessory Interest County - Land 02/15
Possessory Interest County - Cable 03/31
Housing & Community Development to State 03/31
Housing Letters for Outstanding Loans 03/31
SCR Payroll 04/30
Audit Timelines
Interim Audit May
Year-End Audit Sept-Oct
RCTC/Measure A & TDA October
SCO Street Report /SB 1 November
INFORMATION TECHNOLOGY DIVISION
The Information Technology (IT) Division includes the following staff:
•Chief Technology Officer
•Senior Network Engineer
•Enterprise Applications Engineer
•Geographic Information Systems (“GIS”) Coordinator
•Systems/Software Administrator
The Information Technology Division is responsible for management, support, securing of technology infrastructure, information systems hardware and software, telecommunications, and geographic information systems. It provides leading edge technology and related services for utilization by various departments of the City.
Special services and functions of the division include:
• Provide information systems decisions, planning, and support • Research new technologies to provide the latest technology and training • Implement policies and procedures for the maintenance and operation of all city computer systems
• Update and maintain computer hardware and software purchasing and software licensing standards
• Implement and maintain telecommunication policies and procedures • Implement and maintain security policies and security technologies to protect the City’s information systems
• Implement and maintain geographic information systems to be used by Public Safety and Non-Public safety agencies
• Implement and maintain interagency communication technologies and policies • Establish and maintain:
▪Network infrastructure and support system
▪Wireless infrastructure
▪Database and internet technologies
▪System Recovery Plan
▪Server and desktop computer systems, printers, and laptops ▪Computer hardware and software standards and support
▪Technical support and maintenance of Public Safety dispatching and mobile systems
▪Data exchange standards
▪Telecommunication systems
▪Security & cybersecurity systems design and support
▪Surveillance Systems
▪Physical Access controls
▪System auditing and investigations
▪Research and test application software products
▪Provide Software Application Development and Software Support ▪Manage databases and web-based applications
▪Geographic information systems
oDevelops and maintains GIS mapping data
oProvide GIS Application Development and GIS Support
oManage GIS databases and GIS Enterprise servers
oDevelops and maintains GIS web application systems
oProvide end-user GIS software training
oOffsite surveying of Streets, Addresses, Hydrants, and GIS related features
▪Application and Web development
▪Cloud Technology Services
▪Audio/Video Technologies for Council and Commission Meetings ▪Public Safety dispatching and mobile computing technologies
RISK MANAGEMENT
Starting in the mid-1970s, California public entities were unable to purchase some types of insurance and/or obtain affordable coverage in the commercial market. By the mid-1980s, commercial liability insurance was virtually unavailable for public entities.
As a result, California state legislation was enacted to authorize public entities to self-insure and pool their assets to jointly control their risks and pay their claims.
The Public Entity Risk Management Authority (PERMA) was created in 1985 for the purpose of jointly funding programs of insurance. PERMA is a statewide agency consisting of thirty-one public entity members, consisting of 21 cities, 4 transit agencies, and 6 special districts.
PERMA is governed by a Board of Directors, consisting of one representative from each member agency. The Board meets two times a year. The Board elects an Executive Committee, meeting in between Board meetings to supervise and conduct PERMA affairs.
The day-to-day business of PERMA is handled by a full-time staff headed by a General Manager. The City of Cathedral City has been a member of PERMA since 1992.
The risk management function provides services, including loss prevention, control, financing and recovery. Specifically, this involves the identification and evaluation of actual and potential risks, and the avoidance, reduction, retention or transfer of such risks. Key areas of concentration include public liability, employee benefits, unemployment insurance, fidelity bonding and property insurance.
Coverage programs available to PERMA members:
General Liability provides defense and indemnity coverage against claims and suits arising from covered occurrences. It provides $50 million in broad form general liability coverage, which includes auto liability, bodily injury and property damage, personal injury, and public officials’ errors and omissions. Members select from a self-insured retention (SIR) of $0, $5,000, $10,000, $25,000, $50,000, $75,000, $100,000, $125,000, $250,000, or $500,000.
The City, as a member, has a Self Insured Retention (SIR) of $250,000 per incident.
Workers’ Compensation provides statutory benefits for employee injuries arising out of and in the course of employment. It provides statutory limits in workers’ compensation coverage and $5,000,000 in employers’ liability coverage. The City as a member has an SIR of $250,000 per incident.
Property provided directly through Alliant Insurance Service is a fully insured program providing all-risk replacement cost coverage. Automobile physical damage coverage is also provided on a replacement cost basis. The City currently has approximately $89 million dollars of assets it insures with a variety of deductibles depending on the asset and/or incident.
Employment Practices Liability (EPL) provides members coverage for employment related lawsuits, such as wrongful termination and discrimination, through participation in the Employment Risk Management Authority (ERMA). ERMA provides $1 million in employment practices liability coverage. Additional limits in EPL coverage are provided by PRISM (CSAC-EIA). The City as a member has an SIR of $25,000 per incident.
Cyber Liability is provided directly by Alliant Insurance Services. This program provides coverage for information security & privacy liability, privacy notification costs, regulatory defense & penalties, website media content liability, cyber extortion, first party data protection & business interruption losses.
Crime Coverage provides public employee dishonesty, forgery or alteration, and computer fraud coverage, with a $5.0 million limit and $2,500 deductible.
Currently, the Administrative Services Director is the only resource to review, provide feedback and guide the securitization on insurance related coverages as this responsibility is not supported by any other staff. Due to lack of staffing, we cannot adequately manage the appropriate insurance coverages from developers and utility companies related to public improvements, certain permits, etc. In addition, the regular evaluation on infrastructure i.e., sidewalks, roadways, etc to determine liability and risk exposure. We can be reactive and manage claims, but we are unable to be proactive to mitigate risk.
Longer term goals and objectives would include:
•Reviewing practices of departments to remove the City from any possible liability. •Proper infrastructure evaluation of sidewalks and walkways •ADA evaluation of parks and associated facilities for compliance •Protecting public and employee safety.
•Communicating safe work practices throughout the organization
HOUSING SUCCESSOR
The Housing Successor Agency includes the 40% of the Finance Assistant’s efforts, (with the other 60% dedicated to the Finance Division), with guidance and support from the Administrative Services Director and an Accountant.
The responsibilities of the Housing Successor Agency fall within the Administrative Services Department. Redevelopment Agencies (RDAs) in California were formerly dissolved effective January 1, 2012. The affordable housing functions of the former RDAs were assigned to Housing Successor Agencies (HSA). Most commonly, the City or County created the HSA, either directly or through its own housing authority.
The housing assets of the former redevelopment agency of the City of Cathedral City were assumed by the City, as such the City serves as the HSA. At the time of RDA Dissolution, there were 81 Housing parcels to be developed or sold, most of which were infill parcels. To date, 67 parcels have been sold. 14 parcels remain, with nine (9) across from city hall and five (5) at the north end of the city near the railroad tracks.
Unlike when Redevelopment Agencies existed, which allowed a 20% allocation of tax increment (also known as set-aside) to be used for housing related activities, the City has no current consistent revenue stream to support active housing related activities.
As such, previously secured real estate, as identified above, was marketed for liquidation. Most recently, housing proceeds from real estate sales were consolidated to provide limited assistance to two primary projects for the HSA:
•Veterans Village – a 60-unit new veteran’s housing project •Cathedral Palms – the renovation of a 50+ year old very-low and low-income housing project.
In addition, the City must conduct annual report and compliance monitoring of our restricted housing stock, as required by the California Department of Housing and Community Development (HCD). In addition to the annual monitoring, we also process demand notices, payoffs and file lien releases for those properties being sold, refinanced or transfer and any lien or encumbrance is being paid off. These proceeds must go into the housing fund for future housing related activities. In addition, we mail letters, document contacts and drive by the developments.
The following is a list of Cathedral City Housing Projects:
Casa San Miguel de Allende: This two-story 39-unit special needs housing project is located in multiple buildings on and around Melrose Drive in the Cove neighborhood, south of East Palm Canyon Drive. The project is restricted to very low-income disabled persons. It was opened in 1998, using HOME, RDA, HOPWA, and CDBG funds.
Casa Victoria: This is a 50-unit project, opened in 1999 using HUD 202 funds, located at 34-445 Corregidor Dr. This project provides housing for low-income seniors over 62 years of age. Rent is restricted to 30% of their income, and utility allowances are offered.
Cathedral Palms Apartments: This 231-unit project is located at 31-750 Landau Boulevard. The “All Senior” project was originally constructed in 1968 and substantially rehabilitated in 1997, using bonds and RDA set aside funds. The City is currently participating in a major rehabilitation of the units, in cooperation with National CORE. The project has been reconfigured into 224 units (184 studio and 38 two-bedroom units plus two (2) manager units) of which 222 are deed restricted, comprised of 68 units extremely low and 154 very low (50% below). Utilities are provided, including water, gas, cable, and domestic trash services.
Cathedral Towne Villas: Located at 36-700 Pickfair Street, this 61-unit apartment complex offers family housing to moderate income families.
Creekside Apartments: Consists of 185 units within a one and two-story complex located at 68-200 33 rd Avenue. There are 40 two-bedroom units, 104 three-bedroom units, 40 four- bedroom units and one (1) management unit. This project provides housing for low and very low-income.
Coachella Valley Housing Coalition (CVHC) Duplex Conversion Project: In 1997-1999 the Redevelopment Agency cooperated with the CNHC to acquire 16 bank-owned duplexes (originally constructed in the 1980’s) and convert the units into 32 affordable, single-family, owner-occupied homes through a self-help program, with the families rehabilitating and converting the homes as part of the down-payment at an affordable purchase price. There are currently 32 homes continuing to hold the restricted covenants.
Heritage Park: Contains 153 units within a two-story complex, including 144 one-bedroom units and seven (7) two-bedroom units and two (2) management units. This project provides housing for low-income seniors over 55 years of age. The project is located at 69-100 McCallum Way.
Mountain View Apartments: This is a 280-unit Senior multifamily one-bedroom apartment complex development located at 68-680 Dinah Shore Drive. This development is for seniors age 62+ and persons with disabilities. There are 83 low-income affordable senior units, 193 median income, two (2) management and two (2) maintenance units.
Northwoods (Canyon Vista) Apartments: This family project offers 90 units, of which 46 are low-income units. It is located at 68-605 Corral Road.
Nova Ocotillo Place: Provides 135 apartments, of which 108 units are for moderate to high income tenants, and 27 units are for very low-income tenants. The low-income units were acquired using bond financing and was substantially rehabilitated in 1998. The project is located at 69-155 Dinah Shore Drive and includes one and two-bedroom units.
Park David Apartments: This 240-unit apartment project for low-income seniors (over 55) is located at 27-700 Landau Boulevard. The project contains 120 one-bedroom and 120 two-bedroom units. The complex offers 20% of the units to very low-income seniors and 80% to low-income seniors and became operational in 2000.
River Canyon Apartments: Located at 34-300 Corregidor Drive, this project offers 60 units; 41 two-bedroom and 19 three-bedroom; six (6) units restricted to extremely low, 39 units very low, 14 units low and one (1) manager unit.
Terracina Apartments: This project provides 80 units to low- and moderate-income families consisting of 1 one-bedroom unit, 47 two-bedroom units, 30 three-bedroom units, and two (2) four-bedroom units. It is located at 69-175 Converse Road and was built in 1994. These units will remain affordable until 2045.
Tierra del Sol: This project provides 75 one-bedroom units to very low-income senior households over the age of 62. It was primarily funded with local and HUD 202 funding and rents are 30% of the tenants' income. It is located at 37-101 W. Buddy Rogers Avenue.
In addition, multiple ownership units have been built in the City under various self-help or sweat-equity programs as shown below. There are 535 of these units in the City requiring annual monitoring and follow up.
Owner-Occupied Housing Units Income Category Earliest
Release
30 to 45-year Covenant with
resale restrictions
492 Very low to moderate
income
2025 or at
pay-off
30-year Habitat for Humanity
Housing
11 Very low income 2025
30-year Covenant with resale
restrictions CVHC conversion
14 Very low to low income 2025
30-year Covenant on self-help
homes
7 Very low income 2025
30-year Covenant on 1st Time
Homebuyer grant
11 Very low and low income 2027
SUCCESSOR AGENCY to the FORMER REDEVELOPMENT AGENCY
As of February 1, 2012, all redevelopment agencies throughout the State were required to dissolve as a result of the passage of ABX1-26 and the subsequent ruling by the California Supreme Court. On June 27, 2012, AB 1484 became law. AB 1484 amended many components of ABX1-26 and revised several operating procedures.
Pursuant to Health and Safety Code (HSC) section 34177 (o) (1), effective July 1, 2016, Recognized Obligation Payment Schedules (“ROPS”) are required to be prepared by successor agencies and approved by the Countywide Oversight Board (OB) for prospective annual periods (shown as two six-month periods) and are the budgetary documents upon which the County Auditor Controller distributes what was formerly tax increment to successor agencies to allow them to pay approved enforceable obligations and administrative costs during the following year. The ROPS is prepared by Finance staff and presented to the City Council, acting in the capacity of the Successor Agency in November of each year. The following Tax Allocation Bonds and obligations of the former Redevelopment Agency must be managed to their respective conclusions:
2000 Tax Allocation Bond Series A 2034
2007 Tax Allocation Bond Series B 2032
2014 Tax Allocation Bond Series A 2035
2014 Tax Allocation Bond Series B 2034
2014 Tax Allocation Bond Series C 2034
2021 Tax Allocation Bond Series A 2035
2021 Tax Allocation Bond Series B 2032
2021 Tax Allocation Bond Series C 2034
Administrative Allowance 2035
Bond Payment Services 2035
Date Palm Center DDA 2027
GENERAL GOVERNMENT:
The non-departmental function accounts for those general government expenditures not readily able to be allocated to any one department and/or reflect jointly coordinated programs or projects across multiple departments. Expenditures included in this category provide a broad benefit and may be applicable to various departments and divisions. Examples include: miscellaneous dues and subscriptions, supplies used by all departments, common use office equipment and associated maintenance, tax sharing agreements, unassigned fleet and utilities, and City debt service obligations, non – Assessment District or Successor Agency debt, and contingencies.
FISCAL IMPACT:
As of 12/31/2022, the budget for the Administrative Services department (all divisions) for FY 2022/2023 is $10,061,403.98.
Separately, the budget for General Government (unassigned) as of 12/31/2022 is $4,887,650.94. The Administrative Services department assigns and provides oversight to ensure expenses do not exceed the authorized budget.