City of Corona
Staff Report
400 S. Vicentia Ave.
Corona, CA 92882
File #: 22-0404
REQUEST FOR CITY COUNCIL ACTION
CORONA HOUSING AUTHORITY ACTION
CORONA UTILITY AUTHORITY ACTION
CORONA PUBLIC FINANCING AUTHORITY
DATE: 06/15/2022
TO: Honorable Mayor and City Council Members
FROM: Finance Department
SUBJECT:
Adoption of the City of Corona Proposed Budget for Fiscal Year 2023 and amendments to the Fiscal Year 2022 Adopted Budget.
EXECUTIVE SUMMARY:
The Fiscal Year 2023 Proposed Budget has been reviewed and discussed at two public budget workshops held on April 7 and May 11, 2022. This report includes additional actions, identified after the last budget workshop, to be incorporated into the Fiscal Year 2023 Adopted Budget. In addition, this report includes budgetary amendments for the Fiscal Year 2022 Adopted Budget.
RECOMMENDED ACTION:
That the
a. City Council adopt Resolution No. 2022-040, adopting the City’s budget for Fiscal Year 2023, Revised Budget Items, and General Fund Budget Policies. b. Corona Utility Authority adopt Resolution No. 2022-041, adopting said Authority’s budget for Fiscal Year 2023, Revised Budget Items, and Budget Policies. c. Corona Public Financing Authority adopt Resolution No. 2022-042, adopting said Authority’s budget for Fiscal Year 2023, Revised Budget Items, and Budget Policies. d. Corona Housing Authority adopt Resolution No. 2022-043, adopting said Authority’s budget for Fiscal Year 2023, Revised Budget Items, and Budget Policies.
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e. City Council adopt Resolution No. 2022-044, adopting the annual appropriations limit for Fiscal Year 2023 and selecting the population and inflation factors accordingly. f. City Council and Corona Utility Authority approve the following additional budget items to be included in the Fiscal Year 2023 adopted budget:
i. Approve the reduction of $22,230 in Legal and Risk Management Department’s General Fund budget for the addition of an attorney position.
ii. Authorize Purchase Orders for the attached list (Exhibit 8) of Information Technology software renewals for Fiscal Year 2023.
iii. Ratify the approval of the Western Riverside County Regional Wastewater Authority Fiscal Year 2023 Budget and appropriate $1,084,208 from the Sewer Utility Fund (572) to the Fiscal Year 2023 Utilities Department operating budget to meet the City’s Fiscal Year 2023 member obligation.
iv. Authorize an appropriation in the amount of $19,114 for the Utility Maintenance Superintendent vehicle as follows:
· $5,438 from to the Water Utility Fund (570) to the Vehicle Procurement Capital Improvement Project 68340.
· $5,438 from the Sewer Utility Fund (572) to the Vehicle Procurement Capital Improvement Project 68340.
· $4,119 from to the Water Utility Fund (570) to the Water Facility Maintenance Operating Budget.
· $4,119 from Sewer Utility Fund (572) to the Sewer Facility Maintenance Operating Budget.
v. Approve the following Fiscal Year 2023 budget adjustments to account for the NexGen maintenance software system inadvertently missed in the budget process. · Appropriate $179,754 in the Information Technology operating budget and increase revenue by the same amount in the Information Technology Fund (681).
· Appropriate $26,963 in General Government in the General Fund. · Appropriate $35,951 in Finance in the Warehouse Operations Fund (680). g. City Council and Corona Utility Authority approve the following budget amendments for Fiscal Year 2022:
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i. Authorize a continuing appropriation of $523,700 from Fiscal Year 2022 to Fiscal Year 2023 in the General Fund for the Fire Department.
· EMS Squad Program - $313,700.
· Fire Dispatch and Emergency Communications Services Agreement (initial startup costs) - $210,000.
ii. Authorize a continuing appropriation of $50,000 for the website update from Fiscal Year 2022 to Fiscal Year 2023 in the General Fund for the City Manager’s Office - Communications Division.
iii. Approve an appropriation in the Community Services’ General Fund expenditure budget totaling $150,000 to amend the contract for graffiti services. · Approve the First Amendment to the Maintenance/General Services Agreement with Graffiti Protective Coatings, Inc. to increase the total compensation by $150,000 to a total of $300,000 annually through June 30, 2025. · Authorize the City Manager, or his designee, to execute the First Amendment to the Maintenance/General Services Agreement with Graffiti Protective Coatings, Inc., including making minor and non-substantive changes. · Authorize the Purchasing Manager to issue a change order to Graffiti Protective Coatings, Inc. purchase order in the amount of $150,000, for a total of $300,000 annually through June 30, 2025.
iv. Approve a new project for the FY 2021-22 Senate Bill 1383 Local Assistance Grant Program.
· Create a new project for the Department of Resources Recycling and Recovery (CalRecycle) Fiscal Year 2021-22 Senate Bill 1383 Local Assistance Grant Program and appropriate both an expenditure and an offsetting revenue budget for $239,839 from the Residential Refuse/Recycling Fund (260) to the project.
· Authorize the City Manager, or his designee, to receive and spend Department of Resources Recycling and Recovery (CalRecycle) Fiscal Year 2021-22 Senate Bill 1383 Local Assistance Program funds in accordance with all applicable program guidelines and state laws.
· Designate the City Manager, or his designee, to execute any related documents, amendments, and agreements that are consistent with or in furtherance of the City Council’s actions hereunder.
v. Approve Change Order with Quality Fence Company in the amount of $100,000 for oncall fencing services. · Approve the First Amendment to the Maintenance/General Services Agreement with Quality Fence Company to increase the total compensation by $100,000 to a total of $200,000 annually to perform on-call fencing services on an as needed basis through June 30, 2026.
· Authorize the City Manager, or his designee, to execute the First Amendment to City of Corona Page 3 of 16 Printed on 6/9/2022
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· Authorize the City Manager, or his designee, to execute the First Amendment to the Maintenance/General Services Agreement with Quality Fence Company, including making minor and non-substantive changes.
· Authorize the Purchasing Manager to issue a change order to Quality Fence Company’s purchase order in the amount of $100,000 for a total of $200,000 annually through June 30, 2026.
vi. Approve and appropriate additional funds for the Parks Division. · Appropriate additional funds for City tree maintenance in LMD and CFD Zones. · LMD 84-2, Zone 4 Fund (456) - $10,000
· LMD 84-2, Zone 6 Fund (457)- $10,000
· LMD 84-2, Zone 14 Fund (461) - $4,000
· LMD 84-2, Zone 20 Fund (470) - $10,000
· CFD 97-1, Fund (248) - $5,000
· Appropriate additional funds to purchase and install new electrical cabinet for LMD 84-2, Zone 19 Fund (468) for $6,145.
vii. Approve an appropriation in the amount of $250,667 to the Corona Public Library operating budget and increase revenue by $250,667 in the Library Other Grants Fund (415), based on the 7-year high-speed broadband grant award. viii. Authorize the Purchasing Manager to issue an annual purchase order for $200,000 to DXP Enterprises through June 30, 2026, and determine, under Corona Municipal Code Section 3.08.140(B), that competitive bidding is not required because no competitive markets exist.
BACKGROUND & HISTORY:
The Fiscal Year (FY) 2023 budget process began in January 2022. On Thursday, April 7, 2022, the Spring Financial Workshop was held to discuss the budget, set goals, and receive direction from the City Council for development of the FY 2023 budget. The Spring Financial Workshop was an extremely important step in the budget process, and included reviewing the City’s Strategic Plan and discussions about the additional revenues generated from the sales tax measure, Measure X. From this workshop, staff prepared the operating budget, capital improvement plan, and additional service adjustment requests for the City Council’s consideration.
On May 11, 2022, a special meeting was held to update the public and City Council on the progress of the FY 2023 proposed budget. Staff presented service change requests, proposed budget overview, and a recap of the budget items discussed in the Spring Financial Workshop.
ANALYSIS:
The City of Corona FY 2023 Proposed Operating Budget and Capital Improvement Plan are presented in this report for the City Council’s consideration and adoption. Additionally, there are budgetary adjustments identified after the special budget meeting on May 11, 2022, which need to be incorporated in the FY 2023 proposed budget, and budgetary amendments to the FY 2022 adopted budget that are presented for the City Council’s consideration and approval.
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The estimated revenue budget for FY 2023 is $473.9 million, which represents a decrease of $200.0 million, or 29.7%, compared to the FY 2022 revenue projections. This is due to the receipt of onetime revenues in FY 2022 for bond proceeds, totaling $222.0 million, related to the pension obligation bond issuance. Excluding this item, revenue estimates are growing by $21.9 million, from $452.0 million in FY 2022 to $473.9 million in FY 2023. The most significant growth, $11.9 million, is in the Capital Projects Fund Type. The net increase in this group is largely for the McKinley Grade Separation project. The second largest change is an increase of $5.1 million in the General Fund, which is primarily due to an increase in Sales Tax and Property Taxes.
The proposed expenditures budget for FY 2023 totals $400.8 million, which in an increase of $29.9 million, or 8.1%, compared to the FY 2022 adopted budget. The net change is based on increases in the following categories: $18.0 million in Debt Service, $5.8 million in Contractual Services, $4.7 million in Materials and Supplies, $2.5 million in Utilities, and $1.0 million in Personnel costs. The increase of $18.0 million in the Debt Service category is primarily due to the issuance of pension obligation bonds in FY 2022. With the bond issuance, the City’s unfunded accrued liability (UAL) costs shift from the Personnel category to Debt Service.
Recommended actions a, b, c, and d: Annual Budget, Revised Budget Items and Budget Policies
The FY 2023 budget was developed in alignment with the City’s recently adopted Strategic Plan and the following six strategic goals:
1. Financial Stability
2. Strong Economy
3. Sound Infrastructure
4. Safe Community
5. Sense of Place
6. High Performing Government
Presented for consideration by the City Council, Corona Utility Authority, Corona Housing Authority, and Corona Public Financing Authority are the resolutions to adopt the Proposed FY 2023 budget and Five-Year Capital Improvement Plan, along with Revised Budget Items as specified in Attachment A to each resolution, if applicable. The Revised Budget Items are changes that have been identified since the budget workshop on May 11, 2022. The Five-Year Capital Improvement Plan allows for coordination, financing, and timing of major City public improvements. These documents are prepared to communicate the City’s strategic goals and use of resources.
Recommended action e: Appropriations Limit for FY 2023
Article XIII B of the California Constitution specifies that appropriations made by local governments may increase annually by a factor comprised of the change in population from one year to another combined with an inflation factor. For the population factor, jurisdictions have a choice between the percentage change in the City’s population growth or the County population growth. For the inflation factor, jurisdictions have a choice between the California per capita personal income or the increase in non-residential assessed valuation due to new construction. Under the California Constitution, a jurisdiction is required to adopt the Gann Appropriation Limit annually by resolution, selecting each City of Corona Page 5 of 16 Printed on 6/9/2022
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factor by a vote of the governing body. The factors that pertain to the Fiscal Year 2023 calculation are as follows:
Population Percentage Growth
City of Corona -0.08%
County of Riverside 0.42%
Inflation Percentage Factors
California per capita personal income 7.55%
Change in non-residential assessed
Valuation due to new construction Not Available
Staff recommends that the County’s population change of 0.42% and the California per capita personal income change of 7.55% be approved by the City Council. The change in non-residential assessed valuation is usually not available to the City at the time the limit needs to be adopted.
When the change in non-residential assessed valuation due to new construction is available, and if it is higher than the California per capita personal income change, staff will recalculate the Appropriations Limit and will resubmit to the City Council for approval. An attestation letter of the calculation is provided by the City’s audit firm during the audit process each fiscal year.
Recommended action f: Budget Adjustments for Fiscal Year 2023 After the proposed budget information was presented to the City Council on May 11, 2022, the following items were identified as budget revisions and are being recommended for funding in the FY 2023 budget:
i. Approve the reduction of $22,230 in Legal and Risk Management Department’s General Fund budget for the addition of an attorney position.
The Legal and Risk Management Department was approved for a service level change request to add an additional attorney. After further market research and discussion with the Human Resources staff, the salary range for the desired Deputy City Attorney II position requires less money than originally estimated. The Deputy City Attorney II position can be viewed in the Position Library staff report for June 15, 2022.
ii. Authorize Purchase Orders for the attached list of Information Technology software renewals for FY 2023 (Exhibit 8).
The City utilizes a wide range of software for City operations. In an effort to streamline the procurement process for annual routine software renewals, staff is recommending approval of the attached list of annual renewals. By including a comprehensive list of items greater then $55,000, this will help to ensure maximum efficiency and savings are realized in the procurement of the annual technology maintenance agreements. The City’s ability to continue to use technology is typically tied to the continuation of annual maintenance payments or subscriptions for that technology. Many vendors are the sole providers of support for their products (i.e., software, hardware, and professional services). Due to the nature of the security requirements related to credit card processing and online payment gateways, many of City of Corona Page 6 of 16 Printed on 6/9/2022
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security requirements related to credit card processing and online payment gateways, many of the financial software vendors have established relationships with specific third-party providers so their products can maintain certifications and ensure that they meet current and future security standards. These relationships result in making those service providers the sole source for that application.
iii. Western Riverside County Regional Wastewater Authority Fiscal Year 2023 budget and appropriation.
The Western Riverside County Regional Wastewater Authority (WRCRWA) exists for the purposes of planning, constructing, and operating a cost-effective regional sewer treatment system for the benefit of its member agencies. The City of Corona Utilities Department (UD) is part of WRCRWA. WRCRWA also consists of the City of Norco, Jurupa Community Services District, Home Gardens Sanitary District, and Western Municipal Water District.
On July 18, 2012, the City Council and the Corona Utility Authority approved the Project and Capacity Agreement for the expansion of the treatment facility from 8 million gallons per day (MGD) to 14 million gallons per day. The expansion provided for needed operational capacity required by Corona and other member agencies. The City did not have a share of the treatment capacity prior to the expansion.
The WRCRWA treatment plant expansion was completed in Fiscal Year 2018. The City of Corona is responsible for its fair share of administrative costs for the plant per Addendum No. 6 to the WRCRWA Joint Exercise of Powers Agreement. The City’s owns 2.62 MGD of capacity in the treatment plant. In addition, a Transfer Agreement with Western Municipal Water District, approved by City Council on May 4, 2022, transferred 2.62 MGD of conveyance capacity to the City. This conveyance capacity enables the City to use the WRCRWA Conveyance System to move wastewater to the treatment plant.
WRCRWA’s FY 2023 proposed budget was approved by its Board of Directors on April 28, 2022. As a member agency of WRCRWA, the City of Corona is responsible for the operation and maintenance costs of the plant for 2.62 million gallons per day (MGD) (of the total 14.0 MGD plant capacity) and the debt service related to the State Revolving Fund (SRF) loan for
2.62 MGD (of the total 6.0 MGD) associated with the treatment plant expansion. The approved budget requires ratification by each member agency’s governing body. The City of Corona’s Fiscal Year 2023 obligation is $6,526,100 as outlined in the table below. This amount represents the City’s share of the new improvements and associated costs of operation. Staff has reviewed the budget documents and recommends that the City Council approve the item.
Expenditure Category Amount Fund Name
Operations:
Treatment System $1,516,686 Sewer Fund 572
Conveyance System $122,859 Sewer Fund 572
General & Administration $260,857 Sewer Fund 572
Debt Service:
SRF Loan Principal $1,408,299 Sewer Capacity Fund 440
SRF Loan Interest $494,890 Sewer Capacity Fund 440
Capital:
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Expenditure Category Amount Fund Name
Operations:
Treatment System $1,516,686 Sewer Fund 572
Conveyance System $122,859 Sewer Fund 572
General & Administration $260,857 Sewer Fund 572
Debt Service:
SRF Loan Principal $1,408,299 Sewer Capacity Fund 440
SRF Loan Interest $494,890 Sewer Capacity Fund 440
Capital:
Non-Replacement Capital $2,495,420 Sewer Fund 572
Asset Replacement Reserve $227,089 Sewer Fund 572
Total Member Contribution $6,526,100
The final values for WRCRWA’s budget were not available when the FY Sewer Operating Budget was prepared. Staff used estimates based on FY 2022 expenses and originally requested a total of $5,441,892. Approval of the recommended action will result in an additional appropriation of $1,084,208 from Sewer Utility Fund (572) to the Utilities Department operating budget.
Expenditure Category Amount Budgeted
Amount
Appropriation
Required
Operations: $1,900,402 $1,521,139 $379,263
Debt Service: $1,903,189 $1,903,189 $0
Capital: $2,722,509 $2,017,564 $704,945
Total $6,526,100 $5,441,892 $1,084,208
iv. Authorize an appropriation in the amount of $19,114 for the Utility Maintenance Superintendent vehicle.
In line with the City reorganization in August 2021, the Maintenance Supervisor was restructured into two separate positions; one position to oversee building maintenance, and one position to oversee utility maintenance. The Maintenance Supervisor position was reassigned to the Community Services Department to oversee building maintenance. The vehicle assigned to the Maintenance Supervisor was included in the reassignment.
Utility maintenance is now overseen by the Utility Maintenance Superintendent. The Utility Maintenance Superintendent is currently driving the vehicle assigned to the Senior Maintenance Technician. The Utilities Department is requesting a vehicle for the Utility Maintenance Superintendent necessary to perform the functions of the position and to avoid a shortage of vehicles available to the utility maintenance staff.
Staff requests appropriation of $5,438 from the Water Utility Fund and $5,438 from the Sewer Utility Fund to the Vehicle Procurement Capital Improvement Project No. 68340 to fund the down payment and tax for the new vehicle, and $4,119 from the Water Utility Fund and $4,119 from the Sewer Utility Fund to the Water Facility Maintenance Operating Budget and Sewer Facility Maintenance Operating Budget to fund lease payments from July 2022 through June 2023 for this new vehicle request. Future lease payments will be requested through City of Corona Page 8 of 16 Printed on 6/9/2022
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June 2023 for this new vehicle request. Future lease payments will be requested through future budget processes.
v. Approve Fiscal Year 2023 budget adjustments to account for the NexGen maintenance software system.
Due to the citywide reorganization, portions of the Fiscal Year 2023 budget for shared vendors were inadvertently missed in the budget process. Staff is recommending a transfer of certain software budgets to the IT budget for ease of management. Staff requests the following appropriations to continue with this important citywide service. · Appropriate $179,754 in the Information Technology operating budget and increase revenue by the same amount in the Information Technology Fund (681). · Appropriate $26,963 in General Government in the General Fund. · Appropriate $35,951 in Finance in the Warehouse Operations Fund (680).
NexGen is an Enterprise Asset Management system that is linked to the City’s Geographics Information System (GIS). It allows staff to view asset details in the field and record work order maintenance specifically to that asset. NexGen is also synchronized with See-Click-Fix to streamline maintenance requests reported by the public. It allows staff to create and automatically generate preventative maintenance work orders for assets on various intervals, which ultimately results in better tracking, improved accountability, and helps ensure that assets are in operation throughout their anticipated useful life.
Recommended action g: Budgetary Amendments for Fiscal Year 2022 The following budgetary amendments are recommended for funding in Fiscal Year 2022:
i. Authorize a continuing appropriation of $523,700 from Fiscal Year 2022 to Fiscal Year 2023 in the General Fund for the Fire Department.
· In FY 2022, funding was approved for the Fire Department’s new low-acuity paramedic rescue squad units. Three (3) squad vehicles were ordered at the beginning of FY 2022 and due to supply chain issues, won’t be received until FY 2023. This delay has pushed the implementation of the squad program to approximately October-December 2022.
The request is to roll over the funding allocated for the EMS squads from FY 2022 to FY 2023 in the amount of $313,700. The purchases will be completed by the end of the first quarter of FY 2023.
1. Cardiac Monitors $100,000
2. EMS equipment/supplies $130,000
3. PPE $66,000
4. MDC units & MDC rental rate $17,700
· In FY 2022, City Council approved the Fire Dispatch and Emergency Communications Services Agreement between the City of Corona and the City of Ontario. The approval included the appropriation of $210,000 for short-term/one-time costs from the Measure X Reserve to the Fire Department’s operating budget. The request is to roll over the funding allocated for the initial startup costs from FY 2022 to FY 2023 to complete the City of Corona Page 9 of 16 Printed on 6/9/2022
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funding allocated for the initial startup costs from FY 2022 to FY 2023 to complete the implementation.
ii. Authorize a continuing appropriation of $50,000 for the website update from FY 2022 to FY 2023 in the General Fund for the City Manager’s Office. Communications is currently working on the City Website (Strategic Plan project #90). Staff is not ready to execute a contract in the current fiscal year.
iii. Approve an appropriation in the Community Services’ General Fund expenditure budget totaling $150,000 to amend the City’s contract with Graffiti Protective Coatings.
In 2021, the City transitioned to contractual graffiti services with Graffiti Protective Coatings (GPC) in an effort that was supported by the City Council to abate graffiti in a timely fashion and provide quality workmanship. A Maintenance/General Services Agreement with Graffiti Protective Coatings, Inc. was executed in the amount of $150,000 for FY 2022. Since then, the City has seen positive feedback from the community. Unfortunately, the City has seen a sharp rise in graffiti over the past several months, which has made it challenging to keep up with the large demand of gang related graffiti removal required throughout various parts of town. In addition, the original contractual value and budget will not support the required amount to keep up with graffiti removal. The Community Services Department is requesting an amendment to the existing contract with GPC to bring the total amount to $300,000. This will allow the Community Services Department to keep up with the current demand and provide the quality work the residence of Corona deserve.
Staff requests approval of the First amendment to the Maintenance/General Services Agreement to increase the total compensation by $150,000 to $300,000 per fiscal year for oncall graffiti removal services on an as needed basis through Fiscal Year 2025. iv. New project for the FY 2021-22 Senate Bill 1383 Local Assistance Grant Program.
On January 27, 2022, the Utilities Department (UD) applied for the Department of Resources Recycling and Recovery (CalRecycle) Fiscal Year 2021-22 Senate Bill 1383 (SB 1383) Local Assistance Grant Program. Senate Bill 170 Budget Act of 2021 authorized CalRecycle to award grants to local jurisdictions to assist in the implementation of programs to meet statutory requirements of SB 1383, which set methane emissions reduction targets for California in a statewide effort to reduce emissions of short-lived climate pollutants. The grant program provides funds to assist with meeting the following requirements:
· Provide organics collection services to all residents and businesses. · Conduct education and outreach to the community
· Secure access to recycling and edible food recovery capacity. · Establish an edible food recovery program.
· Procure recyclable and recovered organic products.
· Monitor compliance and conduct enforcement.
On April 27, 2022, UD received notification that the City was awarded $239,839.00 for the City of Corona Page 10 of 16 Printed on 6/9/2022
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On April 27, 2022, UD received notification that the City was awarded $239,839.00 for the first round of grant funding. Funding was awarded on the first round because the City adopted an enforceable ordinance (Ordinance 3338) on November 17, 2021 to implement provisions of SB 1383 regulations prior to the deadline of March 1, 2022. UD plans to use the grant funds to pay for tools that will assist with the implementation of the City’s organic waste recycling program. Costs include the annual subscription for a compliance tracking system that enables staff to meet mandatory reporting requirements from the State, education and outreach materials that will spread awareness of our recycling programs to ensure success, a solid waste and recycling consultant, and staff costs to run the program.
Staff requests approval of the recommended actions to accept and spend SB 1383 Local Assistance grant funding for this important program. If grant funds are not fully spent by June 30, 2022, the remaining balance will be a continuing appropriation into Fiscal Year 2023. v. Change Order with Quality Fencing Company.
The Purchasing Division issued Notice of Inviting Bid (NIB) No. 21-61RH on May 26, 2021, pursuant to Corona Municipal Code (CMC) 3.08.110 non-public projects formal bidding procedure requirements. The proposal closing date was June 23, 2021. The City received four (4) bids by the submission date of June 23, 2021.
The scope of work consisted of on-call/emergency repair/replacement of the following types of fencing. Pricing was provided for each item and by linear foot. · Common chain-link fence.
· Concrete masonry fence.
· Mini-mesh fence.
· Metal square tube fence.
· Pressure treated wood fence.
· Red cedar wood fence.
· Fence post.
· Cement fence footer.
A Maintenance/General Services Agreement with Quality Fence Company was executed in the amount of $100,000 for Fiscal Year 2022. However, due to an increase in vandalism, the initial amount of $100,000 per fiscal year is not sufficient to address fencing repair needs.
Staff requests approval of the First amendment to the Maintenance/General Services Agreement to increase the total compensation by $100,000 to $200,000 per fiscal year for oncall fencing services on an as needed basis through Fiscal Year 2026. vi. Approve and appropriate additional funds for the Parks Division totaling $45,145 in LMD and City of Corona Page 11 of 16 Printed on 6/9/2022
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CFD Zones.
The City has processed resident requests for tree maintenance in various zones around the City. A total of 2,127 requests were completed. Additional funds would go to providing continual tree service to Corona residents in the following LMD and CFD Zones:
· LMD 84-2, Zone 4, Fund (456) - $10,000
· LMD 84-2, Zone 6 Fund (457) - $10,000
· LMD 84-2, Zone 14 Fund (461) - $4,000
· LMD 84-2, Zone 20 Fund (470) - $10,000
· CFD 97-1, Fund (248) - $5,000
An electrical panel recently needed to be replaced to ensure operations could continue in LMD Zone 19. The purchase and installation of the deteriorated electrical cabinet that was damaged beyond repair was $6,145.
vii. Approve an appropriation of $250,667 to the Corona Public Library and increase revenue estimates by the same amount in the Library Other Grants Fund 415.
The Corona Public Library was the recipient of a 7-year high-speed broadband grant award from the State Library that will be used to develop the infrastructure and upgrade the internet communications.
An amount of $166,172 will be used for technology and hardware. The library is requesting eight (8) new switches for more bandwidth and through put of data. These switches will replace the current ones that have reached the end of the life cycle and will no longer be supported by the manufacturer. The library is requesting ten (10) new Wi-Fi access to enhance Wi-Fi throughout the building and into the library’s parking lot. The library building is over 60,000 square feet on three levels and currently there are places where patrons cannot access the Wi-Fi when needed. The library is also requesting new routers to connect to CENIC and the public computers.
An amount of $84,495 will be used for upgrades to inside wiring. The City is installing 129 new data cable runs with CAT 6e, which is the current cabling standard. The cables will be installed, and property supported in the hard lid ceiling and drop ceiling. The connectivity for the public computers and the public Wi-Fi is reduced due to the deterioration of the coating protection which causes interference in the signal.
If grant funds are not fully spent by June 30, 2022, the remaining balance will be a continuing appropriation into Fiscal Year 2023.
viii.Purchase with DXP Enterprises.
The Utilities Department (UD) has established standard equipment and products for increased efficiencies and cost-effectiveness throughout the City. Each of the City’s treatment plants and facilities utilize similar or identical products which allows maintenance and operations staff to City of Corona Page 12 of 16 Printed on 6/9/2022
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facilities utilize similar or identical products which allows maintenance and operations staff to transition seamlessly between sites. This standardization also allows the Warehouse to stock fewer products since most can be used across the various facilities.
City Council adopted Resolution No. 2013-057, which designated specific equipment and products as sole source per Public Contract Code Section 3400 (PCC 3400) for construction of potable water, water reclamation, and reclaimed water facilities. Resolution 2022-046 is being presented to City Council on June 15, 2022. This resolution will update the General Manager’s title to Director of Utilities on the PCC 3400 sole source resolution.
UD’s Notice Designating PCC 3400 Exclusive Standard Equipment and Products List includes motors and pumps from Seepex, Milton Roy, KSB, and Goulds. These products were chosen to establish uniform product specifications that will result in reliability, durability, and efficiency.
DXP Enterprises (formerly Cortech Engineering) is the exclusive local distributor of these products. Therefore, a competitive bidding process would not yield any results.
UD is requesting approval of a purchase order with DXP Enterprises for $200,000 annually through June 30, 2026, pursuant to Corona Municipal Code (“CMC”) Section 3.08.140(B), which states as follows:
(B) No competitive market. When the purchasing agent and the authorized contracting party, with the approval of the City Manager, determines, in accordance with applicable law, that a competitive market does not exist and that no competitive advantage will be gained by the public bidding process.
Staff requests approval of a purchase order for $200,000 per year through June 30, 2026, for DXP Enterprises based on this exception.
FINANCIAL IMPACT:
Recommended actions a, b, c, d, and e - FY 2023 Budget Resolutions and Annual Appropriations Limits
Recommended actions a, b, c, d, and e will adopt the budget for Fiscal Year 2023 for each of the City’s authorities and approve the annual appropriations limit calculation. The total expenditures for all Governmental, Proprietary, and Agency funds in Fiscal Year 2023 is $400,780,610 (excluding adjustments included in recommended action g). The City’s appropriations subject to the limit, based on the annual appropriations limit (a.k.a. Gann Limit) are $164,187,169. With an appropriations limit of $672,159,530, the City of Corona’s proposed expenditure budget is $271,378,920 under the appropriations limit. Approval of the resolutions will not result in any additional fiscal impacts.
Recommended action f - Budget Adjustments for Fiscal Year 2023 The Fiscal Year 2023 fiscal impacts of Recommended Action f are shown in the following tables and includes revenues, expenditures, and transfers. Once authorized by the City Council and the Corona Utility Authority, the items will be incorporated into the FY 2023 Adopted Budget.
The budget for recommended action items fii and fiii are already included in the FY 2023 Proposed Budget. Approval of those items do not have an additional financial impact.
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Recommended action g - Budget Amendments for Fiscal Year 2022 The Fiscal Year 2022 fiscal impacts of Recommended Action g are shown in the following tables and includes revenues, expenditures, and transfers. Three items are not reflected in the following tables as they do not have an additional fiscal impact: (1) Item gi - continuing appropriations for the Fire Department from FY 2022 to FY 2023, (2) Item gii - continuing appropriations for the City Manager’s Office from FY 2022 to FY 2023, and (3) Item gv - change order with Quality Fence Company.
City of Corona Page 14 of 16 Printed on 6/9/2022
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File #: 22-0404
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action adopts the City’s FY 2023 budget and approved budgetary amendments for FY 2022, and there is no possibility that approval of the report will have a significant effect on the City of Corona Page 15 of 16 Printed on 6/9/2022
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File #: 22-0404
environment. Therefore, no environmental analysis is required.
PREPARED BY: JULIE KENNICUTT, BUDGET MANAGER
REVIEWED BY: KIM SITTON, FINANCE DIRECTOR
Attachments:
1. Exhibit 1 - Fiscal Year 2023 Proposed Budget
2. Exhibit 2 - Fiscal Year 2023 Proposed Capital Improvement Plan
3. Exhibit 3 - Resolution 2022-040, City Council Budget Resolution for Fiscal Year 2023
4. Exhibit 4 - Resolution 2022-041, Corona Utility Authority Budget Resolution for Fiscal Year 2023
5. Exhibit 5 - Resolution 2022-042, Corona Public Financing Authority Budget Resolution for Fiscal Year 2023
6. Exhibit 6 - Resolution 2022-043, Corona Housing Authority Budget Resolution for Fiscal Year 2023
7. Exhibit 7 - Resolution 2022-044, Annual Appropriations Limit for Fiscal Year 2023
8. Exhibit 8 - IT Renewals 2022-2023 (over 55K)
9. Exhibit 9 - WRCRWA Proposed Budget 2023
10.Exhibit 10 - Graffiti Protective Coatings First Amendment
11.Exhibit 11 - Quality Fence NIB
12.Exhibit 12 - Quality Fence NIB Summary
13.Exhibit 13 - Quality Fence MGSA
14.Exhibit 14 - Quality Fence First Amendment
15.Exhibit 15 - Corona Public Library Grant Application
16.Exhibit 16 - Corona Public Library Award Notice
17.Exhibit 17 - DXP Sole Source Letter - Cortech Engineering
18.Exhibit 18 - DXP Sole Source Letter - Xylem Brand
19.Exhibit 19 - DXP Sole Source Letter - Milton Roy
20.Exhibit 20 - DXP Sole Source Letter - Seepex
21.Exhibit 21 - FY 2023 Budget Presentation
City of Corona Page 16 of 16 Printed on 6/9/2022
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