AGENDA
City Council
Wednesday, January 17, 2024
Measure R Citizens' Oversight
Committee Joint Workshop
Conference Room A and B- Norco City Hall
2870 Clark Avenue, Norco, CA 92860
City Council Meeting
City Council Chamber – Norco City Hall
2820 Clark Avenue, Norco, CA 92860
CALL TO ORDER
CITY HALL - CONF. A AND B
4:00 PM
CITY COUNCIL ROLL CALL Kevin Bash, Mayor
Greg Newton, Mayor Pro Tem
Katherine Aleman, Council Member
Robin Grundmeyer, Council Member
Berwin Hanna, Council Member
MEASURE R CITIZENS' OVERSIGHT
COMMITTEE ROLL CALL
Yvonne Shull, Chair
Susan Olmstead-Bowen, Vice Chair
Richard Beesmer, Member
Jerry Burke, Member
Sean Gill, Member
John Glaccum, Member
Victoria Leonard, Member
Omar Sanchez, Youth Commissioner
JOINT WORKSHOP
CITY HALL - CONF. A AND B
Joint Workshop with Measure R
Citizens' Oversight Committee
CLOSED SESSION
CITY COUNCIL CHAMBER
CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Silverlakes Sports Park
Agency negotiators: City Manager, Finance Director, Planning Director Negotiating parties: City of Norco and Balboa Management Group LLC.
Under negotiation: Price and Terms
CONFERENCE WITH LABOR NEGOTIATOR
Agency designated representative: City Manager Sassoon
Employee organization: Utility Workers Union of America, AFL-CIO Local 606 RECONVENE PUBLIC SESSION 7:00 PM
City Council Agenda - January 17, 2024
REPORT OF ACTION(S) TAKEN IN CLOSED SESSION
PLEDGE OF ALLEGIANCE Mayor Pro Tem Greg Newton
INVOCATION
1. CITY COUNCIL REPORTS ON REGIONAL BOARDS
2. PUBLIC COMMENTS
This is the time when persons wishing to address the presiding governmental body regarding the Consent Calendar, Legislative Matters or items within the subject matter jurisdiction of the legislative body. Please submit a speaker card to the Meeting Clerk. Please limit comments to three minutes or less. The Ralph M. Brown Act limits the governmental body’s ability to respond to comments on non-agendized matters at the time such comments are made. The governmental body shall not discuss or act relative to any general public comment.
3. CONSENT CALENDAR
All items listed under the Consent Calendar are considered to be routine and may be enacted by one motion. There will be no separate action unless members of the governmental body request specific items be removed from the Consent Calendar. Items removed from the Consent Calendar will be separately considered under Item 4 of the Agenda.
3.A. Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only.
RECOMMENDATION:
Waive reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the agenda shall be determined to have been read by title and further reading waived.
Staff Report - Pdf
3.B. Approval of City Council Regular Meeting Minutes and Special Meeting Minutes.
RECOMMENDATION:
Approve the City Council Regular Meeting Minutes of December 20, 2023 and Special Meeting Minutes of January 4, 2024.
Staff Report - Pdf
City Council Agenda - January 17, 2024
3.C. Appointments to Regional Boards, Standing Committees and Other City Council-Appointed Committees for Calendar Year 2024
RECOMMENDATION:
Approve the City Council appointments to the various standing committees and other governmental agencies for the 2024 calendar year.
Staff Report - Pdf
3.D. Approval of an increase to the Professional Legal Services Contract with Downey Brand, regarding the Riverside Transmission Reliability Project (RTRP)
RECOMMENDATION:
Approve additional $10,000 for the Downey Brand professional legal services contract.
Staff Report - Pdf
3.E. Quarterly Investment Report for Quarter Ended December 31, 2023 RECOMMENDATION:
Receive and file the Quarterly Investment Report for the Quarter Ended December 31, 2023.
Staff Report - Pdf
3.F. Acceptance of the Norco MDP Line S-2 Storm Drain Project as Complete RECOMMENDATION:
Accept the Norco MDP Line S-2 Storm Drain Project as complete and authorize the City Clerk to file the Notice of Completion with the County of Riverside.
Staff Report - Pdf
3.G. Acceptance of the Norco Elementary Storm Drain Project as Complete RECOMMENDATION:
Accept the Norco Elementary School Storm Drain Project as complete and authorize the City Clerk to file the Notice of Completion with the County of Riverside.
Staff Report - Pdf
City Council Agenda - January 17, 2024
3.H. Change Order Request for Norco MDP Line S-5E Storm Drain Project (Design)
RECOMMENDATION:
Review and approve Change Order Request in the amount of $18,373 for the Norco MDP Line S-5E Storm Drain Project (Design)
Staff Report - Pdf
3.I. Resolution authorizing submittal of an application for grant funding from CalRecycle
RECOMMENDATION:
Adopt Resolution No. 2024-01, authorizing staff to submit an application for payment of grant funds the City of Norco is eligible to receive under SB 1383 Local Assistance Grant Program.
Staff Report - Pdf
3.J. Adoption of the Norco Local Hazard Mitigation Plan Annex from the Riverside County Operational Area Multi-Jurisdictional Local Hazard Mitigation Plan as Required by the Federal Disaster Mitigation and Cost Reduction Act of 2000
RECOMMENDATION:
Adopt Resolution No. 2024-02, adopting the Norco Local Hazard Mitigation Plan Annex.
Staff Report - Pdf
3.K. Consideration of Approval of California Public Employees’ Retirement System (CalPERS) Resolution Fixing the Employer Contribution Under the Public Employees' Medical and Hospital Care Act (PEMHCA) at an Equal Amount for Employees and Annuitants
RECOMMENDATION:
Approval of Resolution No. 2024-03 Fixing the Employer Contribution Under the Public Employees' Medical and Hospital Care Act (PEMHCA) at an Equal Amount for Employees and Annuitants.
Staff Report - Pdf
City Council Agenda - January 17, 2024
3.L. Acceptance of the Sundance Park Boundary Wall Restoration Project as Complete (Project No. 54410.6)
RECOMMENDATION:
Accept the Sundance Park Boundary Wall Restoration Project as complete and authorize the City Clerk to file a Notice of Completion with the County of Riverside.
Staff Report - Pdf
3.M. Change Order Request for North Drive & Grulla Court Storm Drain Project (Design)
RECOMMENDATION:
Approve Change Order Request in the amount of $11,005 for the North Drive & Grulla Court Storm Drain Project (Design)
Staff Report - Pdf
3.N. Acceptance of the Citywide FY 22-23 Slurry Seal Project as Complete RECOMMENDATION:
Accept the Citywide FY 2022-23 Slurry Seal Project as complete and authorize the City Clerk to file the Notice of Completion with the County of Riverside.
Staff Report - Pdf
3.O. Report on Fiscal Year 2022-23 Audited Financial Reports RECOMMENDATION:
Receive and file the Fiscal Year 2022-23 Audited Financial Reports.
Staff Report - Pdf
3.P. New Observance Request: National Ag Day
RECOMMENDATION:
Approve the subcommittee's recommendation to recognize National Ag Day.
Staff Report - Pdf
4. ITEM(S) PULLED FROM CONSENT CALENDAR
5. DISCUSSION / ACTION ITEM(S)
City Council Agenda - January 17, 2024
Order of Presentation for Discussion Items:
1. Staff Report Presentation
2. Council Questions of Staff
3. Public Comment
4. Council Discussion and Action
5.A. Grading Policy and Expanding the Definition of an Approved Development Plan
RECOMMENDATION:
Discuss the matter and direct any follow-up actions as may be appropriate.
Staff Report - Pdf
5.B. Recognizing 2024 City of Norco Anniversaries
RECOMMENDATION:
Provide feedback on recommended opportunities to recognize the 60th Anniversary of the City of Norco's Incorporation and the 10th Anniversary of the George A. Ingalls Veterans Memorial Plaza.
Staff Report - Pdf
6. PUBLIC HEARING(S)
Order of Presentation for Public Hearing Items:
1. Staff Report Presentation
2. Council Questions of Staff
3. Open Public Hearing
a. Public Comment
4. Close Public Hearing
5. Council Discussion and Action
6.A. Zone Code Amendment 2023-06 (City of Norco): A City initiated amendment to Title 18, Chapter 18.02 - "Definitions", to clarify the definitions of Hotels and Motels to include the maximum stay of 30 consecutive days.
RECOMMENDATION:
Adopt Ordinance No. 1108, approving Zone Code Amendment 2023-06.
Staff Report - Pdf
City Council Agenda - January 17, 2024
6.B. Zone Code Amendment 2023-07 (City of Norco): A City initiated amendment to Title 18, Chapter 18.13 – Agricultural Low Density (A-1 Zone) to update to the provisions for large animal-keeping and roosters, clarify the public nuisance and violations for excessive roosters and excessive animal units, and clarify general provisions/development standards.
RECOMMENDATION:
Adopt Ordinance No. 1109, approving Zone Code Amendment 2023-07.
Staff Report - Pdf
6.C. Newcastle Skye Parkridge, LLC Industrial Project Development Agreement/Site Plan 2020-11, Modification No.1 (Newcastle Skye Parkridge, LLC): A request for approval of a development agreement for the industrial project approved under Site Plan 2020-11, consisting of six buildings that total 80,066 square feet at 1004 Parkridge Ave located within the Industrial District of the Gateway Specific Plan.
RECOMMENDATION:
Approve the Newcastle Skye Parkridge, LLC Industrial Project Development Agreement.
Staff Report - Pdf
7. CITY COUNCIL / STAFF COMMUNICATIONS
8. ADJOURNMENT
In compliance with the Americans with Disabilities Act, any person who requires a modification or accommodation in order to participate in this meeting is encouraged to contact the City Clerk’s Office at (951) 270-5623 or [email protected] at least 48 hours prior to the meeting so that reasonable arrangements can be made to ensure accessibility. Staff reports are on file in the City Clerk’s Office.
Any writings or documents provided to a majority of the presiding governmental body regarding any item on this agenda will be available for public inspection at the City Clerk’s Office during normal business hours at Norco City Hall, located at 2870 Clark Avenue in Norco. The meeting is recorded.
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.A.
To: Honorable Mayor and City Council Members
From: Dana Roa, City Clerk
Prepared By: Sophia Thompson, Deputy City Clerk
Department: City Clerk
SUBJECT:
Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only.
RECOMMENDATION:
Waive reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the agenda shall be determined to have been read by title and further reading waived.
REVIEWED AND APPROVED BY:
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.B.
To: Honorable Mayor and City Council Members
From: Dana Roa, City Clerk
Prepared By: Sophia Thompson, Deputy City Clerk
Department: City Clerk
SUBJECT:
Approval of City Council Regular Meeting Minutes and Special Meeting Minutes.
RECOMMENDATION:
Approve the City Council Regular Meeting Minutes of December 20, 2023 and Special Meeting Minutes of January 4, 2024.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
City Council - Dec 20 2023 - DRAFT Minutes
City Council - Jan 04 2024 - Special - DRAFT Minutes
DRAFT - MINUTES
City Council
Wednesday, December 20, 2023
City Council Chamber – Norco City Hall
2820 Clark Avenue, Norco, CA 92860
CALL TO ORDER 7:00 PM
ROLL CALL Robin Grundmeyer, Mayor
Kevin Bash, Mayor Pro Tem
Katherine Aleman, Council Member
Berwin Hanna, Council Member
Greg Newton, Council Member
CLOSED SESSION
There were no Closed Sessions at this time. Closed Session items were removed from the agenda.
PLEDGE OF ALLEGIANCE Council Member Greg Newton
INVOCATION Student Ministries Pastor
Spencer Parish
Beacon Hill Assembly of God
PRESENTATIONS Introduction of Riverside County Sheriff
Lieutenant Jessica Hall
Captain Koehler introduced Lieutenant Hall. Lieutenant Hall stated she is excited to join the City of Norco.
NJAAF Super Bowl Champions
Norco D1 Midgets
Mayor Grundmeyer presented the NJAAF Norco D1 Midgets football team, cheerleaders, and coaches with certificates for their accomplishments as 2023 Super Bowl Champions.
REORGANIZATION OF THE CITY COUNCIL
A. Election of Mayor
Mayor Grundmeyer opened Public Comment.
City Council Minutes - December 20, 2023
No public comments at this time. Motion was made.
M/S NEWTON/HANNA Elect Mayor Pro Tem Bash as Mayor for Term 2023-2024.
The Motion was carried by the following roll call vote:
AYES: GRUNDMEYER, BASH, ALEMAN, HANNA, AND NEWTON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
B. Election of Mayor Pro Tem
Mayor Grundmeyer opened Public Comment.
Community member, Geoff Kahan, spoke regarding his concerns with Council Member Aleman as Mayor Pro Tem.
No further public comments.
Council Member Aleman spoke regarding the City's practices for rotation of Council Members into the Mayor Pro Tem position.
Mayor Grundmeyer spoke regarding the City's practices and the relation to Council Member Aleman's position on the City Council.
Motion was made.
M/S BASH/HANNA Elect Council Member Newton as Mayor Pro Tem for Term 2023-2024. The Motion was carried by the following roll call vote:
AYES: BASH, HANNA, AND NEWTON
NOES: GRUNDMEYER AND ALEMAN
ABSENT: NONE
ABSTAIN: NONE
C. Presentation to and Comments by Outgoing Mayor Robin Grundmeyer Mayor Bash and Council Members presented outgoing Mayor Grundmeyer with a gavel and plaque and gave her the ceremonial “Boot” filled with notes from City Council and staff. Mayor Bash and each Council Member recognized her
City Council Minutes - December 20, 2023
accomplishments and dedication during her tenure as the Mayor of the City of Norco.
1. CITY COUNCIL REPORTS ON REGIONAL BOARDS
The Mayor, Mayor Pro Tem and Council Members provided reports on their recent individual participation in committees, commissions, regional boards, and community organizations.
2. CONSENT CALENDAR
Approval of Consent Calendar as presented.
M/S HANNA/ALEMAN Approve Consent Calendar as Presented. The Motion was carried by the following roll call vote:
AYES: GRUNDMEYER, BASH, ALEMAN, HANNA, AND NEWTON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
2.A. Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only.
Action: Waived reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the agenda shall be determined to have been read by title and further reading waived.
2.B. Approval of City Council Regular Meeting Minutes.
Action: Approved the City Council Regular Meeting Minutes of December 06, 2023.
2.C. Second Amendment to the Memorandum of Understanding (MOU) Between the City of Corona and the City of Norco for Collaborative Homeless Programs and Services
1. Action: Authorized the City Manager, or designee, to approve the Second Amendment to the Memorandum of Understanding (MOU) between the City of Corona and the City of Norco for collaborative homeless services for a maximum
City Council Minutes - December 20, 2023
amount of $2,673,044 which includes $2,450,290 for the City Net scope of services for the term of July 1, 2022 through September 30, 2025.
2. Action: Authorized the City Manager, or designee, to approve non-substantive amendments, including line-item adjustments and hourly compensation rates within the approved program budget of Second Amendment to the MOU Between the City of Corona and the City of Norco.
2.D. Approve quote from Yunix Traffic for installation of new LED Safety Lights at various intersections.
Action: Accepted the quote from Yunix Traffic for installation of new LED Safety Lights at all intersections with traffic signals and authorized the City Manager to approve a purchase order in the amount of $74,004 and include a change order authorization up to 10 percent.
2.E Acceptance of the Reservoir Drive & 1525 Hamner Avenue Improvements Project as Complete
Action: Accepted the Reservoir Drive & 1525 Hamner Avenue Improvements Project as complete and authorized the City Clerk to file the Notice of Completion with the County of Riverside.
carried
2.F. Approval of the proposal from Krieger & Stewart Engineering Consultants to provide professional engineering services for miscellaneous improvements to the existing recycled water distribution system.
Action: Accepted the proposal and awarded a contract to Krieger & Stewart Engineering Consultants in the amount of $117,700 and authorized the City Manager to approve contract change orders up to 10 percent of the total proposal amount.
2.G Acceptance and Award of Contract for the Procurement of a New International MV607 Water Truck for the Ingalls Event Center; Appropriation of Additional Funds from the Vehicle Replacement Fund
Action: Accepted bids and awarded contract to Westrux International for procurement of a New 2024 International MV607 Water Truck in the amount of $129,000 for the Ingalls Event Center; and the appropriate additional funds from the Vehicle Replacement Fund in the amount of $29,000.
2.H. Acceptance and Award of Contract for the Procurement of a New JCB 940 Forklift for the Ingalls Event Center
City Council Minutes - December 20, 2023
Action: Accepted Sourcewell Purchase Contract Number 040319-JCB and awarded contract to SoCal JCB in the amount of $113,000 for the purchase of a new JCB 940 Forklift for the Ingalls Event Center.
2.I. Increase the annual purchase order for Infinity Technologies to provide professional GIS services.
Action: Approved increase of the annual purchase order for Infinity Technologies to provide professional GIS services from $50,000 to a not to exceed amount of $150,000 annually.
2.J. Recap of Actions Taken by the Planning Commission at its Meeting Held on December 13, 2023
Action: Received and filed the recap of actions taken by the Planning Commission at its meeting held on December 13, 2023.
3. ITEM(S) PULLED FROM CONSENT CALENDAR
No items were pulled from the Consent Calendar.
4. PUBLIC COMMENTS
Streets, Trails & Utilities Commissioner, Mike Williams, spoke regarding a car accident at 4550 Crestview and three similar accidents in the same location. He brought up other dangerous driving locations on Valley View and Corona Avenue.
Commissioner Williams requested that these issues be referred to the Streets, Trails & Utilities Commission.
5. CITY COUNCIL / STAFF COMMUNICATIONS
City Clerk Roa thanked Council Member Grundmeyer for her time as Mayor and wished everyone a Merry Christmas.
Mayor Pro Tem Newton wished everyone a Merry Christmas and asked Bonnie from the Horseman Association to recognize Lieutenant Hall and present her with a horseman halter and lead rope for her unit.
Council Member Aleman thanked staff for their work on the Christmas Festival. She addressed the Council regarding Resolution 2023-53 and the procedure for City Council Meetings.
City Council Minutes - December 20, 2023
Council Member Grundmeyer wished everyone a Merry Christmas.
Mayor Bash addressed the new Lieutenant and welcomed her to Norco. He thanked Staff for all of their hard work this past year.
Mayor Bash made a motion to have the hazardous driving locations that Street, Trails, & Utilities Commissioner Williams spoke of, be referred to the Streets, Trails & Utilities Commission for further discussion.
M/S BASH/GRUNDMEYER Hazardous driving locations within the City, brought forward by Streets, Trails, & Utilities Commissioner Williams, be referred to Streets, Trails & Utilities Commission for further discussion. The Motion was carried by the following roll call vote:
AYES: GRUNDMEYER, BASH, ALEMAN, HANNA, AND NEWTON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
6. ADJOURNMENT
Mayor Bash adjourned the meeting at 8:02 P.M.
_________________________________
Dana Roa, CMC
City Clerk
Draft - MINUTES
City Council
Thursday, January 4, 2024
City Hall Conf. A – Norco City Hall
2820 Clark Avenue, Norco, CA 92860
CALL TO ORDER 10:00 AM
ROLL CALL Kevin Bash, Mayor
Greg Newton, Mayor Pro Tem
Katherine Aleman, Council Member
Robin Grundmeyer, Council Member
Berwin Hanna, Council Member
PLEDGE OF ALLEGIANCE Mayor Kevin Bash
1 PUBLIC COMMENTS
There were no public comments at this time.
CLOSED SESSIONS
CONFERENCE WITH LABOR NEGOTIATOR
Agency designated representative: City Manager Sassoon
Employee organization: Utility Workers Union of America, AFL-CIO Local 606
CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Eller v. City of Norco, et al. Case No. CVR 12202825
CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Silverlakes Sports Park
Agency negotiators: City Manager, Finance Director, Planning Director Negotiating parties: City of Norco and Balboa Management Group LLC.
Under negotiation: Price and Terms
RECONVENE PUBLIC SESSION 10:47 AM
REPORT OF ACTION(S) TAKEN IN CLOSED SESSION
City Attorney Burns stated that City Council voted 5-0 to approve settlement amount for Closed Session Item Existing Litigation; Eller v. City of Norco, et al. Case No. CVR 12202825.
City Council Minutes - January 4, 2024
There were no other reportable actions for the remaining Closed Session Items. 2 ADJOURNMENT
Mayor Bash adjourned the meeting at 10:48 AM.
_________________________________
Dana Roa, CMC
City Clerk
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.C.
To: Honorable Mayor and City Council Members
From: Dana Roa, City Clerk
Prepared By: Dana Roa, City Clerk
Department: City Clerk
SUBJECT:
Appointments to Regional Boards, Standing Committees and Other City CouncilAppointed Committees for Calendar Year 2026 RECOMMENDATION:
Approve the City Council appointments to the various standing committees and other governmental agencies for the 2026 calendar year.
SUMMARY:
Mayor Grundmeyer has consulted with the Mayor Pro-tem and Council Members as to their preferred agency appointments based on their area of expertise, interest, and availability. Following his discussions, Mayor Bash has developed the 2026 list of appointments for approval.
BACKGROUND:
Each year, following the election of the new Mayor by City Council, appointments are made to various standing committees and other governmental agencies.
Public officials are allowed to make, participate in making, or use their official positions to influence decisions concerning their own appointments to positions as officers of the bodies of which they are members, such as committees, boards, commissions of public agencies, metropolitan planning organizations, and special districts, if the appointments are required to be made by either state or local law.
FISCAL IMPACT:
None for this item.
RELATIONSHIP TO STRATEGIC PLAN:
This is consistent with Strategic Direction #4 - Communication and Stakeholder Experience: Enhance the stakeholder experience, engage the community, and build brand awareness through proactive, effective and consistent communication.
REVIEWED AND APPROVED BY:
Approved by: Lisette Free, City Manager
Approved as to Form: Harper and Burns, LLP, City Attorney ATTACHMENT(S):
Agency and Committee Assignments 2024
City Council
Agency, Committees and Sub - Committee Appointments 2024 Updated: January 2, 2024
Agency Designee Alternate Meeting Date Time Place Stipend Chino Basin Desalter Authority Board Mayor Pro Tem Greg Newton Public Works Director Chad Blais 1st Thursday (Jan. Apr., Jul., Aug.) 6:00 p.m. 2151 S. Haven Avenue, Suite 202, Ontario $150/meeting no mileage Local Agency Formation Commission (LAFCO) Mayor Pro Tem Greg Newton Council Member Grundmeyer As needed -- 3850 Vine Street, Suite 240, Riverside -- Northwest Mosquito and Vector Control District (*Two-year appointment: 2021-2023) Council Member
Katherine Aleman
Council Member
Berwin Hanna 3rd Thursday 3:00 p.m. 1966 Compton Avenue, Corona $100/meeting; no mileage Riverside Conservation Authority (RCA) Mayor Kevin Bash Council Member Katherine Aleman 3rd Wednesday No meeting in July 12:00 p.m. 3403 10th Street, Suite 320, Riverside $100/meeting plus mileage Riverside County Transportation Commission (RCTC) Council Member
Berwin Hanna
Council Member
Katherine Aleman 2nd Wednesday 9:00 a.m. 4080 Lemon Street, 3rd Floor, Riverside $100/meeting plus mileage Riverside County – City Selection Committee (League of California Cities) Council Member
Robin Grundmeyer
Mayor
Kevin Bash
As needed - Meets prior to Monthly
LCC General Meetings
-
Riverside Transit Agency (RTA) Board Budget and Finance Committee Transportation Now Committee Council Member
Berwin Hanna
Council Member
Katherine Aleman
4th Thursday
1st Wednesday
2nd Thursday
1:00 p.m. 2:00 p.m. 9:00 a.m.
4080 Lemon St. 1st Floor,
Riverside
1825 Third St. Riverside
Norco City Hall
Each is
$150/meeting
plus mileage
-
Western Riverside Council of Governments (WRCOG) Executive Committee Administration and Finance Committee Mayor
Kevin Bash
Council Member
Katherine Aleman
1st Monday
-
2nd Monday
2:00 p.m.
-
12:00 p.m.
3390 University Ave.
Suite 450
Riverside
$150/meeting;
no mileage
Western Riverside County Regional Wastewater Authority (WRCRWA) Public Works Director Chad Blais Council Member Katherine Aleman Quarterly, 4th Thursday 2:00 p.m. Corona Public Works Office -- Committees Member Member Meeting Date Time Place
City Audit Committee Council Member
Robin Grundmeyer
Council Member
Katherine Aleman As needed -- Norco City Hall --
Corona-Norco Schools Committee Council Member
Robin Grundmeyer
Mayor
Kevin Bash
Quarterly, 3rd
Monday 3:30 p.m. CNUSD Office & Norco City Hall --
Veterans’ Commission (Previously George A. Ingalls Veterans Memorial Plaza Committee) Council Member
Grundmeyer
Mayor
Kevin Bash
1st Monday of Every
Month -- Norco City Hall
City Council
Agency, Committees and Sub - Committee Appointments 2024 Updated: January 2, 2024
United Norconians for Life Over Alcohol and Drugs (UNLOAD) Council Member Robin Grundmeyer Mayor Kevin Bash As needed Norco City Hall -- Navy Historic Properties Stakeholders Group Mayor Kevin Bash
Historic
Preservation
Commissioner
James Yellis
2nd Wednesday of
every 3rd month 3:00 p.m. Varies --
Manure and Trash Committee
(Previous Leads on Manure-to-Energy) Council Member Robin Grundmeyer Mayor Pro Tem Greg Newton Sub - Committees Member Member Meeting Date Time Place
City Council Observances Sub-committee Council Member
Robin Grundmeyer
Council Member
Katherine Aleman As Needed - Norco City Hall --
Kathy Azevedo Monument Sub-Committee Mayor Pro Tem
Greg Newton Mayor Kevin Bash As Needed - Norco City Hall - City Manager Economic Development Working
Group
Council Member
Katherine Aleman
Council Member
Berwin Hanna As Needed - Norco City Hall -
Homeless Solutions Sub-Committee Council Member
Robin Grundmeyer
Council Member
Katherine Aleman As Needed - Norco City Hall -
Veterans Housing Sub-committee Mayor
Kevin Bash
Council Member
Katherine Aleman As Needed - Norco City Hall -
EAT Program Sub-committee Council Member
Robin Grundmeyer
Mayor
Kevin Bash As Needed - Norco City Hall -
Riverside Transmission Reliability Project Subcommittee Mayor Kevin Bash Mayor Pro Tem Greg Newton As Needed - Norco City Hall - -
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.D.
To: Honorable Mayor and City Council Members
From: Lori Sassoon, City Manager
Prepared By: Lori Sassoon, City Manager
Department: Administration
SUBJECT:
Approval of an increase to the Professional Legal Services Contract with Downey Brand, regarding the Riverside Transmission Reliability Project (RTRP) RECOMMENDATION:
Approve additional $10,000 for the Downey Brand professional legal services contract.
SUMMARY:
The City of Norco strongly opposes placement of above-ground powerlines over the Santa Ana River and in adjacent neighborhoods, and strongly supports undergrounding of said powerlines. In April of 2023, the City Council approved a legal services agreement with Downey Brand and appropriated $175,000 for the firm to take action on the City's behalf and prepare a Petition for Modification with the California Public Utilities Commission. In October of 2023, the City Council approved an additional $80,000 for work that required more legal resources than originally anticipated. It is recommended that an additional $10,000 be approved for the contract to fund this work through the end of January 2023.
BACKGROUND:
Southern California Edison obtained approval from the California Public Utilities Commission (CPUC) to install powerlines over and across the Santa Ana River.
Installation of overhead powerlines will permanently and negatively impact the scenic viewshed. The City Council has for years been opposed to the placement of overhead powerlines in this important viewshed and has advocated for undergrounding of the powerlines to protect this important view resource for the citizens of Norco and the greater community.
Attorney Mike Day of Downey Brand is an expert on legal issues relating to powerlines and the CPUC, and has already performed substantial work advocating for the undergrounding of powerlines through neighboring Jurupa Valley. He brings a wealth of
knowledge and experience to assist Norco in its effort to avoid new wildfire dangers and protect the aesthetics of the Santa Ana River viewshed.
In April of 2023, and at the recommendation of the City's RTRP Subcommittee, the City Council approved a legal services agreement with Downey Brand and appropriated $175,000 for the City's efforts to underground the RTRP.
In October of 2023, the City worked closely with Michael Day of Downey Brand to prepare the petition for reconsideration of the CPUC's original decision on the RTRP.
The City Council approved an additional appropriation of $80,000 for legal work and CPUC meeting costs at that time. Those funds have been fully expended.
Most recently, the City has requested additional legal work recommended by the RTRP Subcommittee, which has resulted in an additional $10,000 in costs. It is recommended that the Council approve an additional $10,000 for the Downey Brand contract, for a total of $265,000. These costs are more than offset by other savings related to reduced contract services for the RTRP project.
In the coming months, if the CPUC determines to hear the City's Petition, additional legal services will be needed at that time to prepare for that hearing. If or when that occurs, this matter will be brought back to the City Council for further appropriations for legal services.
FISCAL IMPACT:
This item results in an additional $10,000 for the Downey Brand contract, for a total of $265,000. Funding is available in the Non-Departmental budget due to cost savings from other contracts no longer needed.
RELATIONSHIP TO STRATEGIC PLAN:
This item is in accordance with Strategic Direction # 5 - Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.E.
To: Honorable Mayor and City Council Members
From: Lisette Free, Finance Director
Prepared By: Lisette Free, Finance Director
Department: Finance
SUBJECT:
Quarterly Investment Report for Quarter Ended December 31, 2023 RECOMMENDATION:
Receive and file the Quarterly Investment Report for the Quarter Ended December 31, 2023.
SUMMARY:
The Quarterly Investment Report for the quarter ending December 31, 2023 has been prepared to meet the requirements of the City’s Investment Policy and applicable sections of the State of California Government Code.
BACKGROUND:
The City’s Investment Policy requires the Treasurer to render a quarterly report to the legislative body. The report is to be prepared in accordance with Government Code Section 53646(b)(1) and should contain detailed information on all securities, investments, and monies of the local agency; a statement of compliance of the portfolio with the Statement of Investment Policy; and a statement of the City’s ability to meet its cash flow requirements for the next six months. This report, which is for the quarter ended December 31, 2023, meets the requirements of the Investment Policy and Government Code. It covers funds of the City and the Successor Agency to the former Norco Redevelopment Agency.
The attached schedules (attachments 1 through 4) have been prepared to meet the detailed requirements of the Government Code and the City’s Investment Policy as approved by the Council on April 5, 2023. It is to be noted that the Investment Policy excludes certain investments (bond proceeds) from these requirements. This means that bond proceeds are invested in accordance with the provisions of the bond indentures rather than the provisions of the Investment Policy. Consequently, in determining whether the operating portfolio holdings are in compliance with the
Government Code and the approved Investment Policy, investments of bond proceeds have been excluded.
Attachment 1 provides a summary schedule of the City’s operating portfolio holdings by type as of December 31, 2023. This summary also provides information on whether or not each investment category complies with the limitations imposed by State law and the City’s Investment Policy. Investments that are subject to the Statement of Investment Policy are operating or idle funds invested by the Treasurer within the provisions of the approved Investment Policy.
During the quarter ended December 31, 2023, the operating portfolio decreased by a net amount of $6.9 million from $90.5 million to $83.6 million. This is in keeping with expected patterns, as traditionally, revenue receipts during second quarter of the fiscal year are not sufficient to cover expenditures due to the lag in the receipt of property tax, vehicle license fees, sales tax in lieu, electric and gas franchise fee revenues.
A summary of investments not subject to the provisions of the Investment Policy (bond proceeds and debt service reserve funds) is also shown on Attachment 1. During the quarter ended December 31, 2023, bond proceeds and debt service reserve fund portfolio decreased by a net amount of $2.1 million from $8.8 million to $6.7 million due to debt service payments.
Attachment 2 provides a graphical breakdown of the operating portfolio holdings by investment type as of December 31, 2023. This chart is for investments that are subject to the Investment Policy. The operating portfolio consisted of 35% investment in the State of California Local Agency Investment Fund (LAIF), 30% in CA Management Plan, 22% in Agency Securities, 4% in US Treasury Securities and the remaining 9% in cash and cash equivalents.
Attachment 3 provides a detailed listing of the City’s portfolio holdings as required by the Government Code. In this listing, “N/A” is used to denote that the information is either not available or applicable. Agency Securities issued by United States Government Sponsored Entities (GSEs) are rated “AA+” by S&P rating service and “Aaa” by Moody’s and Fitch rating service.
Attachment 4 indicates cash balances by Fund as additional information to complement the schedule of investment holdings. For the Operating Funds, the cash balance provides an indication of the financial health of each Fund.
CASH FLOWS: Based on cash balances as of December 31, 2023 and anticipated cash receipts for the next six months, staff estimates that there will be sufficient cash to cover disbursements for the City and Successor Agency for the next six months ending June 30, 2024.
FISCAL IMPACT:
Not applicable for this item.
RELATIONSHIP TO STRATEGIC PLAN:
The Quarterly Investment Report is consistent with Strategic Direction #3 - Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Attachment 1
Attachment 2
Attachment 3
Attachment 4
Attachment #5 - Certification Form
Attachment 1
City of Norco, California
Portfolio Summary
As of December 31, 2023
City Investments Subject to Investment Policy Market Value Percentage Policy Maximum Compliance Cash $ 7,104,814 8.50% NA In Compliance
Local Agency Investment Fund 29,603,607 35.41% 100% In Compliance CAMP 25,365,180 30.34% 100% In Compliance
U.S. Treasury Securities 2,993,100 3.58% 100% In Compliance U.S. Government Agency Securities 18,528,615 22.16% 100% In Compliance Total $ 83,595,316 100.00%
3.356%
City Investments Not Subject to Investment Policy Market Value Percentage Community Facilities Districts $ 1,733,183 25.92%
Sewer and Water System 17,516 0.26%
Refunding Tax Allocation Bonds 4,936,343 73.82%
Total $ 6,687,041 100.00%
0.716%
Estimated Portfolio Yield
Estimated Portfolio Yield
Attachment 2
BEGINNING AND ENDING VALUES BREAKDOWN OF INVESTMENTS
Beg. Market Values Ending Market Values
Breakdown 9/30/2023 12/31/2023 Investments Subject to Investment Policy Portfolio % Rating Cash 6,610,308 7,104,814 Local Agency Investment Fund 29,603,607 35.41% Not Rated Local Agency Investment Fund 54,595,136 29,603,607 Federal Home Loan Banks 15,537,015 18.59% AAA California Asset Management Plan 5,094,015 25,365,180 CA Asset Management Plan 25,365,180 30.34% AAAm U.S. Treasury Securities 6,348,098 6,393,440 Federal Farm Credit Banks 2,991,600 3.58% AAA U.S. Government Agency Securities 17,897,150 15,128,275 Wells Fargo Checking Account 3,972,818 4.75% Not Rated Total Market Value 90,544,707 83,595,316 US Treasury Bills 2,993,100 3.58% Not Rated US Bank Principal Cash 3,131,996 3.75% Not Rated
TOTAL 83,595,316 100%
SUMMARY OF CITY OF NORCO'S PORTFOLIO
INVESTMENTS SUBJECT TO INVESTMENT POLICY
Not Rated
47%
Rated
53%
By Rating
< 1 year
96%
1-3 years
4%
By Maturity (Years)
Local Agency
Investment
Fund
35%
Federal Home
Loan Banks
19%
Federal Farm
Credit Banks
4%
CA Asset
Management
Plan
30%
Cash and Cash
Equivalents
8%
US Treasury
Bills
4%
By Type
Attachment 3 Page 1
City of Norco, California
Portfolio Details
As of December 31, 2023
Investments Subject to Policy
Cash & Cash Equivalents
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A Checking Accounts N/A Wells Fargo N/A N/A 0.00% N/A 3,972,818 3,972,818 N/A N/A N/A Principal Cash N/A US Bank N/A N/A 0.00% N/A 3,131,996 3,131,996 Subtotal 7,104,814 7,104,814
Local Agency Investment Fund
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A Local Agency Investment Fund XI.15 State of California N/A N/A N/A N/A 30,014,574 29,603,607 Subtotal 30,014,574 29,603,607
California Asset Management Plan
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A California Asset Management Plan XI.13 CA Joint Powers Authority N/A N/A N/A N/A 25,000,000 25,365,180 Subtotal 25,000,000 25,365,180
US Bank Custodial Account
06/28/21 09/30/24 3130AMV74 Federal Home Loan Banks XI.5 US Bank AAA 0.400% 0.414% 5,000,000 5,000,000 4,833,650 12/30/21 12/30/24 3130AQAR4 Federal Home Loan Banks XI.5 US Bank AAA 1.500% 1.549% 2,500,000 2,500,000 2,420,525 12/23/21 12/23/24 3130AQAS2 Federal Home Loan Banks XI.5 US Bank AAA 1.070% 1.111% 2,500,000 2,500,000 2,408,550 12/28/21 03/28/24 3130AQB44 Federal Home Loan Banks XI.5 US Bank AAA 0.875% 0.884% 2,500,000 2,500,000 2,473,950 01/19/22 01/25/24 3133ENLY4 Federal Farm Credit Banks XI.5 US Bank AAA 1.040% 1.043% 3,000,000 3,000,000 2,991,600 08/21/23 08/21/25 3130AWXU9 Federal Home Loan Banks XI.2 US Bank N/A 5.500% 5.499% 3,400,000 3,400,000 3,400,340 02/08/23 01/31/24 9128285Z9 United States Treasury Notes XI.2 US Bank AAA 2.500% 2.506% 3,000,000 2,933,610 2,993,100 21,833,610 21,521,715
Total Investments Subject to Policy 83,952,998 83,595,316
Attachment 3 Page 2
City of Norco, California
Portfolio Details
As of December 31, 2023
Investments Not Subject to Policy (Bond Proceeds)
Community Facilities Districts
Cash and Cash Equivalents
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 65,885 65,885 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 178 178 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 28,084 28,084 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 112 112 N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.994% N/A 293 293 N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.994% N/A 121 121 N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.994% N/A 16,794 16,794 Subtotal 111,466 111,466
Local Agency Investment Fund
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A Local Agency Investment Fund (CFD 2002-1) XI.15 State of California N/A N/A N/A N/A 59,784 58,966 Subtotal 59,784 58,966
U.S. and Agency Securities
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
08/21/19 08/24/25 3136G4Q97 F H L M C M T N XI.5 US Bank AAA 0.650% 0.691% 1,440,000 1,440,000 1,353,960 11/10/20 08/23/24 3135GA4R9 F N M A XI.5 US Bank AAA 0.420% 0.432% 215,000 215,000 208,791 1,655,000 1,655,000 1,562,751
Total Community Facilities Districts 1,826,250 1,733,183 Investments Not Subject to Policy (Bond Proceeds)
Sewer and Water System
Cash and Cash Equivalents
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.994% N/A 277 277 N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.994% N/A 16,068 16,068 N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.994% N/A 1,165 1,165 N/A N/A 31846V203 First American Government XI.11 US Bank N/A N/A 4.994% N/A 6 6 Subtotal 17,516 17,516
Total Sewer and Water System 17,516 17,516
Attachment 3 Page 3
City of Norco, California
Portfolio Details
As of December 31, 2023
Investments Not Subject to Policy (Bond Proceeds)
Refunding Tax Allocation Bonds
Cash & Cash Equivalents
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 4.844% N/A 123,345 123,345 N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 4.844% N/A 374 374 N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 4.844% N/A 581 581 N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 4.844% N/A 329 329 N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 4.844% N/A 41,434 41,434 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 95 95 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 23 23 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 26 26 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 29,094 29,094 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 56,347 56,347 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 11 11 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 15 15 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 21,341 21,341 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 107,420 107,420 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 77 77 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 66 66 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 24,919 24,919 Subtotal 405,496 405,496
Local Agency Investment Fund
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A Local Agency Investment Fund (2010 TABs) XI.15 State of California N/A N/A N/A N/A 25,013 24,670 N/A N/A N/A Local Agency Investment Fund (2003 TABs) XI.15 State of California N/A N/A N/A N/A 114,053 112,491 Subtotal 139,066 137,161
U.S. and Agency Securities
Purchase
Date Maturity Date CUSIP # Description of Security
Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
11/23/20 08/23/24 3135GA4R9 F N M A XI.5 US Bank AAA 0.420% 0.432% N/A 1,940,000 1,883,973 05/26/21 05/26/26 3130AMG63 Federal Home Loan Banks XI.5 US Bank AAA 0.500% 0.534% N/A 1,040,000 973,918 05/26/21 05/26/26 3130AMG63 Federal Home Loan Banks XI.5 US Bank AAA 0.500% 0.534% N/A 1,055,000 987,965 05/26/21 05/26/26 3130AMG63 Federal Home Loan Banks XI.5 US Bank AAA 0.500% 0.534% N/A 585,000 547,829 Subtotal 4,620,000 4,393,686
Total Refunding Tax Allocation Bonds 5,164,561 4,936,343 Total Investments Not Subject to Policy 7,008,328 6,687,041
Attachment 4
City of Norco, California
Portfolio Details by Fund
As of December 31, 2023
Investments Subject to Policy Qtr ended
12/31/23
Fund Description Balance
012 Successor Agency Project Fund 136,846
016 Cal Home Grant Fund 125,548
017 Successor Agency Fund 1,754,638
018 Housing Fund 4,148,052
121 General Fund 26,538,707
122 Miscellaneous Grants Fund (108,134)
123 CDBG Fund (13,434)
124 Water Fund 4,671,410
126 Sewer Fund 2,111,421
127/132 Measure R Fund 13,112,842
128 Equipment Replacement Fund 4,478,520
129 Storm Drain Fund (1,329,300)
131 Nancy Newman Fund 77,371
133 Gas Tax Fund 67,591
134 Benefits and Insurance Fund 345,095
135 Information Technology Fund 1,214,560
136 SB1 Road Maintenance & Rehab. Fund (57,867)
137 Measure A Fund 788,101
139 NPDES Fund (76,053)
140 General Govt Improvement Fund 448,610
141 Park Improvement Fund 999,169
142 Fire Improvement Fund 650,261
143 Trail Improvement Fund 237,159
144 Water Capital Fund 4,732,862
146 Public Meeting Facilities Fund 208,935
147 Sewer Facilities Fund 11,472,160
149 Street Improvement Fund 202,411
151 Animal Control Fund 40,934
152 Facility Improvement Fund 127,058
154 Trust Deposit Fund 495,547
156 AQMD Fund 103,496
158 Waste Management Fund (183,340)
162 Supplemental Law Grant Fund 8,333
181 CFD 97-1 197,363
182 CFD 2001-1 720,978
183 CFD 2002-1 158,340
179 LMD #1 (10,156)
176 LMD #2 (91,239)
177 LMD #3 (43,890)
186 LMD #4 109,582
187 LMD #5 79,778
Subtotal - General Ledger 78,650,264
Various Outstanding Checks/Deposits in Transit 4,945,052 Total Cash and Investments 83,595,316
Attachment 5
Quarterly Investment Portfolio
For the Quarter Ended December 31, 2023
As required by the Government Code, the Treasurer certifies that the investments reported in the accompanying schedules (Attachments 1 through 4) comply with the City of Norco Investment Policy and that sufficient liquidity along with anticipated revenues are available to meet the City and Successor Agency budgeted expenditure requirements for the next six months ending June 30, 2024. ___________________________ January 17, 2024__________
Lisette Free, Finance Director Date
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.F.
To: Honorable Mayor and City Council Members
From: Chad Blais, Public Works Director
Prepared By: Sam Nelson, Deputy City Engineer
Department: Public Works
SUBJECT:
Acceptance of the Norco MDP Line S-2 Storm Drain Project as Complete RECOMMENDATION:
Accept the Norco MDP Line S-2 Storm Drain Project as complete and authorize the City Clerk to file the Notice of Completion with the County of Riverside.
SUMMARY:
The Norco MDP Line S-2 Storm Drain Project consisted of storm drain and street improvements on Second Street between Corona Avenue and Hillside Avenue BACKGROUND:
On March 1, 2023 the City Council awarded a contract to Mamco, Inc. dba Alabbasi in the amount of $2,798,798 and authorized the City Manager to approve contract change orders up to 10% for the Norco MDP Line S-2 Storm Drain Project. The final contract amount paid to Alabbasi was $2,876,957. The increase in the amount paid was primarily due to additional quantities of driveway removal/replacements and water main relocations.
Alabbasi has completed all the work required to the satisfaction of the City Engineer and a Notice of Completion has been prepared for recordation.
FISCAL IMPACT:
There is no fiscal impact for this item.
RELATIONSHIP TO STRATEGIC PLAN:
The approval of Notice of Completion is consistent with Strategic Direction #5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.G.
To: Honorable Mayor and City Council Members
From: Chad Blais, Public Works Director
Prepared By: Sam Nelson, Deputy City Engineer
Department: Public Works
SUBJECT:
Acceptance of the Norco Elementary Storm Drain Project as Complete RECOMMENDATION:
Accept the Norco Elementary School Storm Drain Project as complete and authorize the City Clerk to file the Notice of Completion with the County of Riverside.
SUMMARY:
The Norco Elementary School Storm Drain Project consisted of storm drain and street improvements on Temescal Avenue and on the Norco Elementary School property.
BACKGROUND:
On May 3, 2023 the City Council awarded a contract to Kirtley Construction, Inc. dba TK Construction in the amount of $1,212,313 and authorized the City Manager to approve contract change orders up to 10% for the Norco Elementary School Storm Drain Project. The final contract amount paid to TK Construction was $1,250,625. The increase in the amount paid was primarily due to additional quantities of asphalt removal and replacement quantities.
TK Construction has completed all the work required to the satisfaction of the City Engineer and a Notice of Completion has been prepared for recordation.
FISCAL IMPACT:
There is no fiscal impact for this item.
RELATIONSHIP TO STRATEGIC PLAN:
The approval of Notice of Completion is consistent with Strategic Direction #5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.H.
To: Honorable Mayor and City Council Members
From: Chad Blais, Public Works Director
Prepared By: Sam Nelson, Deputy City Engineer
Department: Public Works
SUBJECT:
Change Order Request for Norco MDP Line S-5E Storm Drain Project (Design) RECOMMENDATION:
Review and approve Change Order Request in the amount of $18,373 for the Norco MDP Line S-5E Storm Drain Project (Design)
SUMMARY:
A change order is being requested, in the amount of $18,373, for Bureau Veritas (formerly Owen Group, LP) for additional design efforts and modifications related to the Norco MDP Line S-5E Storm Drain Project.
BACKGROUND:
On September 1, 2021 the City Council awarded a design contract to Bureau Veritas (formerly Owen Group, LP) in the amount of $52,996 to design the Norco MDP Line S5E Storm Drain Project. The proposed design entailed the new storm drain and street improvements necessary to alleviate flooding for several homes on the west side of Hillside Avenue. The approved storm drain alignment was to be located within Hillside Avenue where it would connect to an existing storm drain in Third Street. However, the property owner located at 2520 Hillside Avenue recently agreed to provide a public storm drain easement to the City allowing the construction of a storm drain on their property that would not only simplify the storm drain design but also reduce storm drain construction costs. The additional change order amount of $18,373 will result in an overall design cost of $71,369.
Bureau Veritas has provided staff with the change order request in the amount of $18,373 (see Design Change Order). Staff has reviewed the change order and has determined the proposed cost to be reasonable.
FISCAL IMPACT:
The Norco MDP Line S-5E Storm Drain Project was approved as a Capital Improvement Project in the Storm Drain Fund for Fiscal Year 2021-22. The Fiscal Year 2022-23 budget of $1,157,500 ($1,079,500 for construction and $78,000 for design) - Account No's. 129.935.41380 & 129.935.41380.30). The project has sufficient funds for the change order request.
RELATIONSHIP TO STRATEGIC PLAN:
Authorizing approval of this professional design services change order is consistent with Strategic Direction No. 5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Design Change Order
220 Technology Drive, Suite 100
Irvine, CA 92618
P 949.860.4800
www.bvna.com
December 15, 2023
Mr. Sam Nelson
Deputy City Engineer/Deputy Director of Public Works
City of Norco
2870 Clark Avenue
Norco, CA 92860
Via E-Mail: [email protected]
Subject: Norco MDP Lateral S-5E Extension Storm Drain Project Option 2 Add Service Request #1, Topographic Survey, Revised Alignment Dear Mr. Nelson:
We have developed our proposal for the Revised Alignment for the Norco MDP Lateral S-5E Extension Storm Drain Option 2 Project.
SCOPE OF ENGINEERING SERVICES
Provide topographic survey and schematic design layout based on the revised alignment received from the city.
PROPOSED COMPENSATION
We propose to complete the basic scope of engineering services, as described above, for the lump sum fee of $18,373.
A separate spreadsheet is attached providing our task hour work plan basis of fee.
Invoices will be submitted monthly based on percent of work complete.
AGREEMENT
The requested services and compensation will be authorized, performed, and billed within the guidelines of our Master Agreement for As-Needed Civil Engineering Services, with the City of Norco.
220 Technology Drive, Suite 100
Irvine, CA 92618
P 949.860.4800
www.bvna.com
We look forward to working with you all on this project. Please feel free to contact me or Orland Obtera if you have any questions on this proposal. I can be contacted at [email protected] or (949) 289-8995 (cell phone).
Very Truly Yours,
BUREAU VERITAS NORTH AMERICA, INC.
Richard Henrikson, PE, LEED AP
Vice President
Attachment
City of Norco
________________________________
Signature
________________________________
Print name and Title
Date:____________________________
Scope / Task Items
Subtotal Hours - Owen
Subtotal Labor Fee - Owen
Related Work - Subconsultant
Subtotal Cost
Principal Engineer
Civil Project Manager
Sr. Civil Designer/Engineer
Staff Designer/Engineer
Cost Analysis
Subconsultant
Survey
Subconsultant
Utility Potholing
Subconsultant
Description $ 195 $ 155 $ 135 $ 115
38 $ 5,090.00 $ - $ 5,090.00 2 4 20 12
0 $ - $ - $ -
0 $ - $ - $ -
Subconsultant Fee $ - $ 12,075.00 $ 12,075.00 $ 12,075
Fee on Subconsultant (10%) $ - $ 1,207.50 $ 1,207.50
Subtotal 38 $ 5,090.00 $ 13,282.50 $ 18,372.50 2 4 20 12 $0 $12,075 $0 TOTAL $ 18,373
Task 1 - Lateral S-5E Extension Storm Drain Option 2 Project Revised Alignment Added Scope
Date:12/15/2023
Norco - Lateral S-5E Extension Storm Drain Option 2 Project Revised Alignment
TASK / HOUR FEE SCHEDULE
TABULATION Civil
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.I.
To: Honorable Mayor and City Council Members
From: Chad Blais, Public Works Director
Prepared By: Chad Blais, Public Works Director
Department: Public Works
SUBJECT:
Resolution authorizing submittal of an application for grant funding from CalRecycle RECOMMENDATION:
Adopt Resolution No. 2024-01, authorizing staff to submit an application for payment of grant funds the City of Norco is eligible to receive under SB 1383 Local Assistance Grant Program.
SUMMARY:
In order to apply for and receive funds from CalRecycle, the City needs to provide a City Council adopted resolution to CalRecycle which authorizes the City to receive funds.
Approving Resolution 2024-01 will meet the requirements of the grant.
BACKGROUND:
The Department of Resources Recycling and Recovery (CalRecycle) offers the SB 1383 Local Assistance Grant Program pursuant to Chapter 395, Statutes of 2016. The purpose of the grant is to provide funding to local jurisdictions to assist with the implantation of regulation requirements associated with SB 1383. The grant funding can be allocated towards the following activities:
• Capacity Planning
• Collection
• Edible Food Recovery
• Education and outreach (includes organic waste & edible food recovery) • Enforcement and Inspection
• Program Evaluation/Gap Analysis
• Procurement Requirements (using recycled organic products – compost, mulch, electricity, and/or renewable gas and recycled paper and paper products) • Record Keeping
CalRecycle has determined the City's allocation of the grant is $75,000. The City of Norco has worked hard over the last two years to get into compliance with State mandates. The City is currently at nearly 95% compliance with ensuring commercial accounts meet the recycling requirements. However, enforcing recycling requirements does require a fair amount of staff time to ensure that requirements continue to be met into the future. To meet this end, the City of Norco is applying for the full amount of the grant available to the City in the amount of $75,000 to help supplement the salary of the Administrative Compliance Coordinators responsible for overseeing recycling administration and enforcement and to help fund a pilot program to purchase and administer a free mulch pickup day for residents. This giveaway would serve to meet the City's SB1383 procurement requirements.
In order to apply for the funds from CalRecycle, the City needs to provide a City Council adopted resolution to CalRecycle which authorizes the City to apply for the grant.
Approving Resolution 2024-01 authorizes staff to apply for the $75,000 in available grant funds.
FISCAL IMPACT:
Approval of Resolution 2024-01 would make the City eligible to apply for $75,000 in grant funding to help supplement staff costs to implement the City's State mandated recycling programs.
RELATIONSHIP TO STRATEGIC PLAN:
Acceptance of CalRecycle Grant Funds is consistent with Strategic Direction #3 - Financial Stability, "Assure financial stability by identifying new revenue sources and continuing prudent financial management."
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Individual Grant Resolution 2024-01
RESOLUTION NO. 2024-01
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, AUTHORIZING SUBMITTAL OF APPLICATION FOR
GRANT PROGRAMS AND RELATED AUTHORIZATIONS (INDIVIDUAL
JURISDICTION) FROM CALRECYCLE
WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state tereby preserving landfill capacity and protecting public health and safety and the environment; and
WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the application, awarding, and management of the grants; and WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Norco at a regular meeting held on January 17, 2024, approved authorization to submit an application to CalRecycle for all grants for which the City of Norco is eligible; and BE IT FURTHER RESOLVED that the City Manager, or their designee, is hereby authorized and empowered to execute in the name of the City of Norco all grant documents, including but not limited to, applications, agreements, amendments, and requests for payment, necessary to secure grant funds and implement the approved grant project; and BE IT FURTHER RESOLVED that these authorizations are effective for five years from the date of adoption.
PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on January 17, 2024.
__________________________
Kevin Bash, Mayor
City of Norco, California
ATTEST:
________________________
Dana Roa, CMC, City Clerk
City of Norco, California
Resolution No. 2024-01
January 17, 2024
I Dana Roa, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was adopted by the City Council of the City of Norco, California at a regular meeting held January 17, 2024, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, on January 17, 2024.
_________________________
Dana Roa, CMC, City Clerk
City of Norco, California
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.J.
To: Honorable Mayor and City Council Members
From: William Otterman, Fire Chief
Prepared By: Sarah Muro, Emergency Services Assistant
Department: Fire
SUBJECT:
Adoption of the Norco Local Hazard Mitigation Plan Annex from the Riverside County Operational Area Multi-Jurisdictional Local Hazard Mitigation Plan as Required by the Federal Disaster Mitigation and Cost Reduction Act of 2000 RECOMMENDATION:
Adopt Resolution No. 2024-02, adopting the Norco Local Hazard Mitigation Plan Annex.
SUMMARY:
The proposed resolution adopts the Norco Local Hazard Mitigation Plan Annex from the Riverside County Operational Area Multi-Jurisdictional Local Hazard Mitigation Plan as required by the Federal Disaster Mitigation and Cost Reduction Act of 2000.
BACKGROUND:
President William J. Clinton signed House Resolution 707, the Disaster Mitigation and Cost Reduction Act of 2000, into law on October 2000.
The Disaster Mitigation Act of 2000 requires all jurisdictions to be covered by a Local Hazard Mitigation Plan to be eligible for Federal Emergency Management Agency postdisaster funds. The City of Norco has committed to participate in the development of the Riverside County Operational Area Multi-Jurisdictional Local Hazard Mitigation Plan and coordinated the development of the City of Norco Local Hazard Mitigation Plan Annex (Attached).
The plan identifies potential hazards, potential losses and potential measures to limit losses from natural disasters. Formal adoption of the plan by the City Council is required before final approval of the plan can be obtained from the Federal Emergency Management Agency.
FISCAL IMPACT:
Not applicable for this item.
RELATIONSHIP TO STRATEGIC PLAN:
This item is consistent with Strategic Direction #1 - Public Health, Safety and Wellness:
Enhance quality of life by promoting public health, safety and wellness initiatives for all community members.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Resolution_2024-02 LHMP
City of Norco LHMP Version 3 dtd 10.30.2023
Amendment Riverside County HMP 01-02-2024- FEMA Approrval letter
RESOLUTION NO. 2024-02
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA ADOPTING THE NORCO LOCAL HAZARD MITIGATION
PLAN ANNEX FROM THE RIVERSIDE COUNTY OPERATIONAL AREA
MULTI-JURISDICTIONAL LOCAL HAZARD MITIGATION PLAN AS
REQUIRED BY THE FEDERAL DISASTER MITIGATION AND COST
REDUCTION ACT OF 2000
WHEREAS, President William J. Clinton signed H.R. 707, the Disaster Mitigation and Cost Reduction Act of 2000, into law on October 30, 2000; and WHEREAS, the Disaster Mitigation Act of 2000 requires all jurisdictions to be covered by a Local Hazard Mitigation Plan to be eligible for Federal Emergency Management Agency post-disaster funds; and
WHEREAS, the City of Norco has committed to participate in the development of the Riverside County Operational Area Multi-Jurisdictional Local Hazard Mitigation Plan; and
WHEREAS, the City of Norco coordinated the development of the City of Norco Local Hazard Mitigation Plan Annex; and
WHEREAS, the City of Norco is concerned about mitigating potential losses from natural disasters before they occur; and
WHEREAS, the plan identifies potential hazards, potential losses and potential mitigation measures to limit losses; and
WHEREAS, the California Office of Emergency Services (CalOES) has reviewed the plan on behalf of the Federal Emergency Management Agency; and WHEREAS, formal adoption of the plan by the City Council of Norco is required before final approval of the plan can be obtained from the Federal Emergency Management Agency; and
WHEREAS, the City of Norco has determined that it would be in the best interest of the City of Norco to adopt the Local Hazard Mitigation Plan Annex.
NOW, THEREFORE, be it resolved that the City Council hereby adopts the Local Hazard Mitigation Plan Annex to meet the requirements of the Disaster Mitigation and Cost Reduction Act of 2000; and directs the City of Norco to forward the Local Hazard Mitigation Plan Annex to the Riverside County Fire Department, Office of Emergency Services, the California Emergency Management Agency and to the Federal Emergency Management Agency on behalf of the City for final approval.
Resolution No. 2024-02
January 17, 2024
PASSED AND ADOPTED by the City Council of the City of Norco at a regular meeting held on January 17, 2024
______________________
Kevin Bash, Mayor
City of Norco, California
ATTEST:
_________________________
Dana Roa, CMC, City Clerk
City of Norco, California
Resolution No. 2024-02
January 17, 2024
I, Dana Roa, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was adopted by the City Council of the City of Norco, California, at a regular meeting held on January 17, 2024, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, on January 17, 2024.
_________________________
Dana Roa, CMC, City Clerk
City of Norco, California
Attachment: Local Hazard Mitigation Plan
LOCAL HAZARD
MITIGATION PLAN
February 2023
PREPARED BY:
CITY OF NORCO
CAL FIRE/RIVERSIDE COUNTY FIRE DEPT.
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CONTACT INFORMATION
CITY OF NORCO
Name: William Otterman
Title: Northwest Division Chief CalFire/ Riverside County Fire Address: 3902 Hillside Avenue
City, State and Zip: Norco, CA 92860
Direct Contact: 951-737-8097
Fax: 951-734-8531
Email: [email protected]
Name: Sarah Muro
Title: Emergency Services Assistant
Address: 3902 Hillside Avenue
City, State and Zip: Norco, CA 92860
Direct Contact: 951-737-8097
Fax: 951-734-8531
Email: [email protected]
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PLAN ADOPTION/RESOLUTION
The City of Norco will submit this Local Hazard Mitigation Plan (LHMP) to the County of Riverside Emergency Management Department (EMD) for incorporation into the Multi-Jurisdictional Local Hazard Mitigation Plan (MJLHMP). EMD will submit the MJLHMP with the jurisdictional plans (annexes) to Cal OES for a 45-day joint review with the Federal Emergency Management Agency (FEMA). Following this review, they will provide an “Approval Pending Adoption”. This will allow for the County of Riverside and jurisdictions to adopt their mitigation plans before FEMA’s final approval. Upon approval, the City of Norco will insert the signed resolution.
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EXECUTIVE SUMMARY
The purpose of this LHMP is to identify the City’s hazards, review and assess past disaster occurrences, estimate the probability of future occurrences, and establish goals and mitigation actions. These goals and mitigation actions will reduce and eliminate long-term risks to people and property from natural and man-made hazards.
This LHMP was prepared pursuant to the requirements of the Disaster Mitigation Act of 2000 to achieve eligibility and potentially secure mitigation funding through FEMA Flood Mitigation Assistance, Pre-Disaster Mitigation, and Hazard Mitigation Grant Programs.
The City of Norco’s continual efforts to maintain a disaster-mitigation strategy is ongoing. Our goal is to develop and maintain an all-inclusive plan to include all departments, special districts, businesses and community organizations to promote consistency, continuity and unification.
The City’s planning process followed a methodology presented by FEMA and Cal OES which included conducting meetings with the Operational Area Planning Committee (OAPC) coordinated by EMD and comprised of representatives from participating Federal, State and local jurisdictions agencies, special districts, school districts, non-profit communities, universities, businesses, and tribes.
This LHMP identifies vulnerabilities, provides recommendations for prioritized mitigation actions, evaluates resources, and identifies mitigation shortcomings, provides future mitigation planning and maintenance of existing plan.
This LHMP will be implemented upon FEMA approval.
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TABLE OF CONTENTS
CONTACT INFORMATION ........................................................................................1 PLAN ADOPTION/RESOLUTION..............................................................................2 EXECUTIVE SUMMARY............................................................................................3 TABLE OF CONTENTS..............................................................................................4 SECTION 1.0 - COMMUNITY PROFILE ...................................................................7
1.1 CITY MAP........................................................................................................8
1.2 GEOGRAPHY AND CLIMATE DESCRIPTION..............................................9
1.3 BRIEF HISTORY ...........................................................................................10
1.4 ECONOMY DESCRIPTION ..........................................................................11
1.5 POPULATION................................................................................................13
1.6 DEVELOPMENT TRENDS AND LAND USE...............................................15 SECTION 2.0 - PLANNING PROCESS...................................................................18
2.1 LOCAL PLANNING PROCESS ....................................................................18
2.2 PARTICIPATION IN REGIONAL (OA) PLANNING PROCESS...................18
2.3 DATES AVAILABLE FOR PUBLIC COMMENT...........................................19
2.4 PLANS ADOPTED BY RESOLUTION .........................................................19 SECTION 3.0 – MITIGATION ACTIONS/UPDATES...............................................20
3.1 UPDATES OR CHANGES FROM 2017 .......................................................20
3.2 BRIEF STATEMENT OF HISTORICAL HAZARDS .....................................20
3.3 MITIGATION PROJECT UPDATES .............................................................20 SECTION 4.0 - HAZARD IDENTIFICATION AND RISK ASSESSMENT...............25
4.1 CRITICAL FACILITIES AND INFRASTRUCTURES....................................25
4.2 TABLE REPLACEMENT VALUES ...............................................................26
4.3 HAZARD IDENTIFICATION..........................................................................27
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4.4 HAZARD PROFILES.....................................................................................30
4.5 VULNERABILITY ASSESSMENT ................................................................30
4.5.1 FLOOD VULNERABILITY ASSESSMENT...................................................30
4.5.2 WILDFIRE VULNERABILITY ASSESSMENT..............................................33
4.5.3 EARTHQUAKE VULNERABILITY ASSESSMENT......................................35
4.5.4 SEVERE WEATHER (HEAT, COLD, WIND) VULNERABILITY
ASSESSMENT ........................................................................................................39
4.5.5 TERRORIST ATTACK VULNERABILITY ASSESSMENT...........................41 SECTION 5.0 – COMMUNITY RATING SYSTEM ..................................................42
5.1 REPETITIVE LOSS PROPERTIES ..............................................................42
5.2 NATIONAL FLOOD INSURANCE PROPERTIES........................................42 SECTION 6.0 - CAPABILITIES ASSESSMENT......................................................44
6.1 REGULATORY MITIGATION CAPABILITIES..............................................44
6.2 ADMINISTRATIVE/TECHNICAL MITIGATION CAPABILITIES ..................47
6.3 FISCAL MITIGATION CAPABILITIES ..........................................................48
6.4 MITIGATION OUTREACH AND PARTNERSHIPS......................................48
6.5 FUNDING OPPORTUNITIES .......................................................................49 SECTION 7.0 - MITIGATION STRATEGIES ...........................................................50
7.1 GOALS AND OBJECTIVES..........................................................................50
7.2 MITIGATION ACTIONS ................................................................................51
7.3 HAZARD MITIGATION ACTION PRIORITIZATION ....................................53
7.4 FUTURE MITIGATION STRATEGIES..........................................................53 SECTION 8.0 - PLAN IMPLEMENTATION AND MAINTENANCE PROCESS......54 SECTION 9.0 - INCORPORATION INTO EXISTING PLANNING MECHANISMS54 SECTION 10.0 - CONTINUED STAKEHOLDER & PUBLIC INVOLVEMENT .......55 APPENDIX A – PUBLIC NOTICES............................................................................1
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APPENDIX B – CAPITAL IMPROVEMENT PLAN BUDGET....................................3 APPENDIX C – INVENTORY WORKSHEETS..........................................................4 APPENDIX D – PLAN REVIEW TOOL/CROSSWALK .............................................5
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SECTION 1.0 - COMMUNITY PROFILE
The City of Norco
The City of Norco incorporated as a general law City in 1964 and subsequently became a Charter City in 2003. The City of Norco has a five-member City Council and is an equestrian-oriented community known as “Horsetown USA.” Norco is located in the western portion of Riverside County, approximately 45 miles east of Los Angeles, and about 12 miles from the Ontario Airport. Norco shares boundaries with the cities of Corona, Riverside, Eastvale, and Jurupa Valley, and adjacent to unincorporated areas of Riverside County. The western part of Riverside County is among the fastest growing areas in the United States.
The City
limits
of
Norco cover an area of approximately 15 square miles, with a population of 27,564 as of 2020. Norco is also home to the U.S. Naval Surface Warfare Center, the California Rehabilitation Center, and the Riverside Community College District’s, Norco Campus, and Corona-Norco Unified School District Headquarters.
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1.1 CITY MAP
Figure 1.1 – City of Norco Boundary Map
9 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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1.2 GEOGRAPHY AND CLIMATE DESCRIPTION
The City of Norco is located in the northwestern portion of Riverside County, near the convergence of Los Angeles, Orange, and Riverside Counties, approximately 45 miles southeast of the City of Los Angeles. It is located in a valley, framed by mountains and the Prado Basin. Original settlements focused development in an area within and adjacent to Hamner Avenue. As the City grew, the geographic limitations imposed by the Norco Hills to the east and the Santa Ana River and the Prado Basin to the north and west created natural barriers that confined the City.
The City is bordered by the City of Corona to the south and southwest, the City of Riverside to the east, and the cities of Eastvale and Jurupa Valley to the north and northeast.
One major freeway transects Norco with no railroads. Interstate 15 (I-15) runs north/south through the middle of the City. This corridor is the major north-south transportation route in Southern California between Las Vegas and San Diego with nearby direct freeway interconnects to Los Angeles and Orange counties and the rest of the Inland Empire.
The current City corporate limits are fairly congruous with the City’s Sphere of Influence (SOI). The City currently includes 15 square miles, with less than 50 acres currently in Riverside County remaining within the SOI.
The SOI was defined by the City, the Southern California Association of Governments (SCAG), and the Riverside County Local Agency Formation Commission (LAFCO). It represents those areas likely to be served by and potentially annexed to the City. The SOI includes two small geographically distinct areas including a single row of mostly developed single-family homes along Bluff Street at the City’s southwestern edge along the river bluffs and undeveloped property largely in the river floodplain in the northeast corner of the City. As of 2023, the City of Norco is currently pursuing an annexation of these pockets.
The City of Norco Planning area is within the South Coast Air Basin of California.
The air basin is a 6,600-square mile area encompassing the non-desert portions of Riverside, Los Angeles, and San Bernardino Counties and all of Orange County.
Bounded by the Pacific Ocean to the west and the San Gabriel, San Bernardino, and San Jacinto Mountains to the north and east, the South Coast Air Basin is an area of high air pollution potential.
The climate of the South Coast Air Basin is dominated by the strength and position of the semi-permanent high-pressure center over the Pacific Ocean near Hawaii. It creates the climate conditions typical of Southern California, (i.e., relatively cool summers, mild winters, infrequent rainfall, cool daytime sea breezes, comfortable humidity, and ample sunshine). Periods of extremely heat with above average highs, winter storms, or Santa Ana wind conditions interrupt this pattern.
10 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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Unfortunately, the same atmospheric processes that create the desirable living climate combine to restrict the ability of the atmosphere to disperse the air pollution generated by the region’s population.
The location of the Planning Area, east of the Chino Hills and Santa Ana Mountains farther south, insulates it from the moderating effect of the ocean. Temperatures and precipitation in Norco vary more dramatically than coastal areas of the basin.
Average summertime high temperatures range between about 86 to 92 degrees Fahrenheit from June through September, and average wintertime low temperatures are generally near 40 degrees in December and January. Rainfall is highly variable and confined almost exclusively to the winter months. Rainfall in Norco averages about 14.6 inches annually.
Predominating winds travel from the ocean, across the urbanized coastal areas of Orange and Los Angeles Counties, to Norco through the Santa Ana River Canyon.
The canyon acts as a funnel for air masses moving across the basin. Daytime winds are typically channeled through the canyon to create steady, abnormally high (greater than 12mph) wind velocities from the west. Typical nighttime conditions reverse, and light winds (less than 1 mph) drift back towards the ocean. Exceptions to this pattern occur when a high-pressure center forms over the western United States and creates the strong, hot, dry, gusty Santa Ana winds, which move through Norco from the eastern deserts into the canyon.
1.3 BRIEF HISTORY
The pre-European history of Norco is much like the rest of Southern California where various tribes of Indians occupied the different portions of the region. The Luiseño Indians used and occupied a region that included the Norco-Corona area. The main village was in Temescal Canyon, and the Norco area was used as a huntinggathering location. In 1846, the Norco area became part of the Mexican land grant, part of which was eventually purchased for the purpose of growing orange trees.
That was not successful, and the land was sold and subdivided as part of the Riverside Orange Heights Tract.
The concept of “Norco” began as a subdivision of the North Corona Land Company in 1910, which again attempted to develop the area with orchard citrus crops, avocados, olives, etc. Years of experimentation showed the area was not suited for that purpose due to high winds, frost, and poor soil conditions. In 1921, the property was sold to the North Corona Land Company. At that time, fewer than 100 families resided in the area, which was mainly a small farming community. The farmers gradually ventured into animal raising, especially poultry and rabbits, some of which are still active today.
By the mid-1920’s, the North Corona Land Company owned 5,409 acres in the area, when the first school and the Norconian Club were constructed, the Norconian Club
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was constructed on a hot sulfur well discovered while digging for irrigation water. It occupied a 700-acre site and was for years a favorite of Hollywood celebrities. Its use declined during the 1930’s and in 1941, the U.S. Navy bought the hotel and expanded it into a premier World War II-era hospital. Today, its grounds are divided between a weapons research facility and a state prison. Most of the resort remains intact, and its history and architecture have earned it a listing on the National Register of Historic Places. Today local leaders and organizations are working to ensure its recognition and preservation.
The community’s first public recreational facility was developed in 1948 when the old Norco School was acquired as a community center. The Norco Recreation and Park District was then formed to maintain and operate the property. During the 1950’s and 1960’s, Norco began to experience more growth, resulting from the population explosion occurring throughout the Southern California metropolitan area. The San Bernardino and Riverside freeways made the Norco area and its animal-keeping lifestyle more accessible from Los Angeles and Orange Counties’ major centers of employment. The loss of animal-keeping communities in these counties and the rapid growth in the Norco area increased the urgency to preserve the animal-keeping community and the City of Norco was incorporated in 1964.
1.4 ECONOMY DESCRIPTION
Located in western Riverside County, Norco is primarily a “bedroom community,” and most residents commute to jobs in larger neighboring cities such as Riverside, Corona, Ontario, or various places in Los Angeles and Orange Counties. As a result, it is predominantly zoned for Residential (60%) which is mostly designated for low density single-family development. The Commercial zone (8%) is mostly along two major thoroughfares-Hamner Avenue and Sixth Street the City is zoned for six percent Industrial, and the remaining 26 percent is zoned for Open Space or other uses.
Retail sales drive the City of Norco’s economy, with most transactions occurring on the City’s two primary thoroughfares, Hamner and Sixth Street, where some commercial development opportunities still exist. The three top employers in Norco are 1) Corona-Norco Unified School District (5,478 employees); 2) Naval Surface Warfare Center (1,800 employees); and 3) California Rehabilitation Center (1,120 employees). Norco is also home to Norco College, a campus of the Riverside Community College District specializing in technology, provides a trained labor pool for local businesses.
The City of Norco is emerging as a Southern California tourist destination, driven by its western motif, accessibility to travelers, and its Silver Lakes Sports Complex which is known as a world-class 122-acre equestrian and field sport facility. The City’s economy will be increasingly supplemented by the hospitality industry in the coming years.
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Figure 1.4.1 – Chart for City of Norco Employment by Industry for Residents Data from the 2021 Census Bureau ACS 5-year Estimate for the City of Norco.
Figure 1.4.2 – Chart of City of Norco Household Income
Data from the 2021 Census Bureau ACS 5-year Estimate for the City of Norco. 252
1388
1129
354
892
602
363
855
1436
251 207
586
0 200
400
600
800
1000
1200
1400
1600
Employment by Industry
190
436
320 336 270
402
595
787
1194
557
1207
1060
0 200
400
600
800
1000
1200
1400
7,354 TOTAL HOUSEHOLDS IN NORCO
TOTAL HOUSEHOLD INCOME
City of Norco Median Household Income
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1.5 POPULATION
Because of its emphasis on small-plot agricultural animal-keeping lots, the growth of Norco has been steadily rising since the City’s incorporation in 1964 but without the large growth spurts that have occurred with other areas of Southern California.
The City’s population has grown from 23,302 in 1990 to 26,316 per the U.S. Census Bureau 2020 Decennial Survey.
Figure 1.5.1 visualizes that the population of Norco is concentrated in the age range from 20 to 60 years of age. This group may be more adaptable and open to change, which can be advantageous during and after disasters, depending on their socioeconomic status, education, and employment opportunities, and they are often more physically resilient than older adults. Additionally, increased responsibilities, such as caring for children and aging parents, can impact their mental resilience.
Figure 1.5.1 – City of Norco Population by Age
Data from the 2020 Census Bureau 2020 Decennial Survey for the City of Norco.
Figure 1.5.2. displays the population percentage of Norco residence that have a disability. The population that is between the 65 and over age range is estimated at 70 percent of individuals with a disability which will impact the planning process for mitigation factors in the planning process.
1132 1254
1457 1539
1750 1874 1874 1925 1814 1792
1995 2133
1849
1366
1054
743
419
0 500
1000
1500
2000
2500
Demographics by Age
Total Population 26,316
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Figure 1.5.2 – City of Norco Population with a Disability Data from the 2021 Census Bureau ACS 5-year Estimate for the City of Norco Figure 1.5.3 – City of Norco Population by Race
Data from the 2021 Census Bureau ACS 5-year Estimate for the City of Norco
2.9% 6.0% 3.3%
7.6%
24.0%
46.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Population with a Disability
0.0%
10.0%
20.0%
30.0%
40.0%
36.1%
5.8% 2.0% 6.0% 1.0% 0.0%
19.6%
9.7%
City of Norco Demographics by Race
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1.6 DEVELOPMENT TRENDS AND LAND USE
Norco, in contrast to some of neighboring cities in the Inland Empire, remains a semi-rural community with a predominantly equestrian lifestyle. The vast majority of residential parcels are a zoned for a minimum half-acre lot size, a feature that has helped to maintain the City’s unique lifestyle. Development pressure from 1995- 2005 resulted in some traditional, albeit upscale, suburban subdivisions, but the prospect for more of that type of development is very unlikely. Not only will the current housing supply take many years to be absorbed after a devastating housing crash (Riverside County was among the hardest hit in the nation), but developable land for residential development has been almost entirely exhausted. A 429-acre parcel in the southeastern quadrant of the City, is zoned “Preservation and Development (PAD)”. The Preservation and Development Zone is intended to provide for the coordinated development of planned commercial projects in an orderly and aesthetically pleasing manner that recognizes and preserves significant natural landscape features, open lands, and historical buildings. The PAD zone establishes a more comprehensive review procedure with flexibility in development standards to accommodate existing features. It is intended that areas within the PAD Zone are developed in a manner that will reflect the unique character of the congruous area upon which the zoning exists whether it be natural conditions or the built environment.
Population growth in Norco during the last decade was modest compared to many neighboring municipalities—thanks in large part to the large-lot zoning—and is expected to remain relatively stable through 2028. Nonetheless, Norco’s locational attributes will be extremely attractive to business interests as the economy begins to recover. Its strategic location on the I-15 Freeway makes Norco easily accessible from anywhere in Southern California and businesses in Norco benefit from their access to a consumer market of 15 million people in Los Angeles, Riverside, San Bernardino, and Orange Counties.
Chart 1.6.1 above provides detailed information on the housing stock in Norco, based on the 2021 U.S. Census Bureau ACS 2021 estimates, which has a total housing estimate of 7,048 homes of which 5948 are owner occupied and 1090 are renter occupied, with the majority of homes being constructed prior to 1980.
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Figure 1.6.1 City of Norco Housing Charts
Data from the 2021 Census Bureau ACS 5-year Estimate for the City of Norco.
The community has established itself as a Western-themed tourist destination, with hotels, restaurants and a world-class 122-acre equestrian and sports complex dominating development in the coming years. Even so, the economy will likely be challenging for several years. Sixth Street, the traditional downtown district, has been developed with Western façades, while Hamner Avenue, the City’s other major thoroughfare, is dominated by national retailers, auto dealers and restaurant chains.
Most anticipated development will occur on infill parcels. Although opportunities for the single-family housing market will be relatively scarce, there is an increasing demand for affordable multifamily housing in Norco, and the State of California mandates all municipalities to accommodate their fair share of affordable units. The City of Norco’s 6th Cycle (2021-2029) Adopted Housing Element was certified by the State Department of Housing and Community Development (HCD) on October 12, 2022. It identifies four (4) potential sites for multi-family housing.
This future development of multi-family housing will increase the City’s vulnerability to earthquake and wildfire, through the increase of structures and population within the City. The structures will be built to the current earthquake standard; however, any multi-level building is susceptible to increased movement during ground shaking which could cause potential collapse. The current climate change has increased fire activity within the planning area and the additional units will increase the overall vulnerability to wildfire that spread to the urban area from the Santa Ana Riverbed. 0 55
947
445 555
1875
1120
755
0 21 122 84
68 108 65
254
189
208
97 80 0
500
1000
1500
2000
2500
Owner vs Renter Home Occupancy
Owner Occupied Renter Occupied
17 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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Most of Norco has reached residential build-out capacity and only new development infill or redevelopment for higher density has the potential for growth. There are currently no plans for additional area annexation.
Figure 1.6.3 – Residential Housing Productions and Permits Issued Data from Core Logic/Data Quick. Additional detail available in SCAG 2019 Local Profiles. SCAG median home sales price calculated as household-weighted average of county medians.
18 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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SECTION 2.0 - PLANNING PROCESS
2.1 LOCAL PLANNING PROCESS
Representatives from multiple city departments have provided information on hazards and mitigation strategies for this 2023 LHMP update. Departments and positions involved include:
• Public Works – Director of Public Works, Chad Blais
• Engineering – City Engineer, David Gilbertson
• Fiscal and Support Services – Director of Finance, Lisette Free • Community Services – Director of Community Services, Michelle Anglin • Planning – Director of Planning, Alma Robles
• Fire Department – Battalion Chief, Jeff Burrow, Jason Allan • Fire Department – Division Chief, William Otterman
• City Hall – City Manager, Lori Sassoon
• City Hall – Communications Manager, Kelli Newton
• IT – IT Manager, Matt Boudreaux
These planning team participants were invited to participate in the planning process through various emails, staff meetings and through announcements in other City planning meetings. This group assisted in identifying general priorities while including city department representatives. Subsequent mitigation strategies and project priorities were provided by members of the group during the months of November and December.
See Appendix B – Public Notices
2.2 PARTICIPATION IN REGIONAL (OA) PLANNING PROCESS
The City of Norco participated in the Regional LHMP planning process with Riverside County Operational Area by attending LHMP meetings and public hearings, various Riverside County workshops, conferences, and meetings, including:
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• May 2022: Riverside County Emergency Management Department reached out to the City of Norco to ascertain their intent to participate in the multijurisdiction LHMP planning process and obtain a letter of commitment. • May 2022: The City of Norco processed their letter of commitment to participate in the Riverside County Multi-Jurisdictional LHMP Planning Process and provided it to the Riverside County Emergency Management Department.
• June 2022: The City of Norco received an invitation to participate in the Riverside County LHMP Multi-Jurisdiction Workshop that was scheduled to occur on 15 June 2022. •
• June 15, 2022: The City of Norco participated in the Riverside County LHMP Jurisdiction Workshop to begin the planning process. During this meeting an introduction to the OA planning process was introduced. Numerous tools were provided to the participants to ensure they had a building block in which to begin their individual planning processes.
• July 14, 2022: Attended the Riverside County Emergency Managers Association (RCEMA) Meeting where the OA LHMP was discussed. • Various communications with Emergency Management Department Staff In addition, the City of Norco has provided written and oral comments on the MJLHMP.
2.3 DATES AVAILABLE FOR PUBLIC COMMENT
On February 1, 2022, information pertained to the Local Hazard Mitigation Program was made available on the City website. This information describes the purpose of the LHMP, its importance, the role the community has on the LHMP and who is the City’s LHMP contact person for questions regarding the LHMP. The City posted a survey on its web page from November 22, 2022 to December 29, 2022 to seek public feedback on the LHMP. The City web page also has an attached copy of the 2022 LHMP (PDF Version) for the public to review and make any comments. http://www.norco.ca.us/depts/fire/hazplan.asp.
2.4 PLANS ADOPTED BY RESOLUTION
The City of Norco City Council will adopt the plan in a public meeting via an official Resolution upon approval by FEMA. The mitigation strategies will become an implementation appendix of the updated Safety Element of the City of Norco General Plan.
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SECTION 3.0 – MITIGATION ACTIONS/UPDATES
3.1 UPDATES OR CHANGES FROM 2017
There are no significant changes in priorities since the approval of the 2017 plan.
All items listed in the mitigation strategies have been addressed and are complete or included in the Capital Improvement Plan (CIP) Budget. Please see Appendix C for the City of Norco’s adopted CIP Budget for FY 2023-2027.
3.2 BRIEF STATEMENT OF HISTORICAL HAZARDS
Since the original 2005 version of the Local Hazard Mitigation Plan was submitted, the City of Norco experienced two wildfires and two floods. Four additional major wildland fires occurred near the City of Norco that placed the city on heightened alert.
Jurisdiction hazards since 2005 include the following:
• 2005 – Winter storms causing flooding to residents and road damage. • 2010 – Winter storms causing flooding to residents and road damage. • 2011 – Winter storms causing flooding to residents and road damage. • 2014 – “Highway” Wildland Fire in the Prado Basin burned to the City limits. • 2017 – Winter storms causing flooding to residents and road damage. • 2020- “Mann” Wildland Fire burned in the Santa Ana River bottom causing minor damage to 5 residential properties (fencing and outbuildings).
3.3 MITIGATION PROJECT UPDATES
The 2017 plan listed three sets of mitigation actions current, ongoing, and future.
Many of these mitigation actions had been completed or were not mitigation actions that would be applied as part of the mitigation process for natural or human caused hazards. Based on this a comprehensive review of all of the actions listed in the 2017 was conducted. Figure 3.3.1 displays the results of this review and identifies what actions will be included the 2023 LHMP update.
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Figure 3.3.1 – Mitigation Action Updates
2018
Plan
Action Hazard Status Notes
Yes CERT (Community Emergency Response Team) AH 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes Promote greater community awareness and understanding of the effects of natural and man-made disasters to property, humans, and animals within the rural City of Norco.
AH 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes Require all new developments, existing critical and essential facilities, and structures to comply with the most recent California Building Code seismic design standards.
EQ 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes Sandbagging program for Norco residents and businesses. FL 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes Continue storm drain enhancements FL 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes Train and equip Fire Dept. for Terrorism Responses, have employees attend Terrorism Liaison Officer training.
TR 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes Security analysis at all events at City Facilities and annual review of security at buildings.
TR 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes Vacant lot weed abatement program. WF 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes Improved property hazardous vegetation removal program. WF 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes Hazardous vegetation mitigation program addressing cityowned properties.WF 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes N.A.R.T (Norco Animal Rescue Team) WF 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes Hazardous Materials Area Plan AH 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes The City’s Building Department has standards on building elevations in reference to curbs and gutters based on past practice.
FL 2023 Plan This mitigation action will be included in the 2023 LHMP
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Figure 3.3.1 – Mitigation Action Updates
2018
Plan
Action Hazard Status Notes
Yes Automatic/remote pump resets were installed providing the ability to reset if lift station is flooded and inaccessible.
FL 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes Update buildings at Booster Stations to current fire standards.
WF 2023 Plan This mitigation action will be included in the 2023 LHMP
Yes Update Safety Element of the City of Norco’s General Plan to reflect changes in the LHMP
AH Completed The LHMP was incorporated into the
2022 General Plan.
Yes City has constructed all weather access (asphalt) on roadways to all but one reservoir.
AH Completed The City completed this project in 2021.
Yes Timely notifications to community of severe weather alerts.
Open shelters and cooling centers as necessary.
AH Completed The City purchased the NIXLE
notification system in 2021 and is
currently using it to notify the public
about local emergencies.
Yes Strengthen building codes for new and existing
infrastructure in areas vulnerable to hazards
AH Completed The City has incorporated all the
Yes Proper venting on reservoirs for earthquake mitigation measures.
EQ Completed The City completed this action in 2021
and it will be removed from 2023 LHMP
mitigation actions.
Yes Water Master Plan FL Completed The City completed this plan in 2016 and will be removed from the 2023 LHMP
mitigation actions.
Yes Urban Water Management Plan FL Completed The City completed this plan in 2021 and will be removed from the 2023 LHMP
mitigation actions.
Yes Notify via outreach systems of utility outages and open shelters for displacements during inclement weather etc.
SW Completed The City purchased the NIXLE
notification system in 2021 and is
currently using it to notify the public
about local emergencies. This mitigation
action will be removed from the 2023
LHMP mitigation actions.
Yes Update SOP’s to sewer lift station flood measures. FL Removed This is not a mitigation action for the identified hazards and has been
23 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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Figure 3.3.1 – Mitigation Action Updates
2018
Plan
Action Hazard Status Notes
removed from the 2023 LHMP mitigation
actions.
Yes Apply water restrictions during periods of prolonged drought as per state mandates.
DR Removed This is not a mitigation action for the
identified hazards and has been
removed from the 2023 LHMP mitigation
actions.
Yes Abandoned vehicle abatement program. - Removed This is not a mitigation action for the identified hazards and has been
removed from the 2023 LHMP mitigation
actions.
Yes Maintain interconnections to other agencies to provide sewage lift station emergency bypass.
- Removed This is not a mitigation action for the
identified hazards and has been
removed from the 2023 LHMP mitigation
actions.
Yes Distribution\Transmission system shutoff valves - Removed This is not a mitigation action for the identified hazards and has been
removed from the 2023 LHMP mitigation
actions.
Yes Public health pandemic emergencies measures were
conducted by mitigating and educating the community via intranet, newsletters / flyers and meetings with the school board members.
- Removed This is not a mitigation action for the
identified hazards and has been
removed from the 2023 LHMP mitigation
actions.
Yes Certified Unified Program Agency - Removed This is not a mitigation action for the identified hazards and has been
removed from the 2023 LHMP mitigation
actions.
Yes Emergency Operations Plan - Removed This is not a mitigation action for the identified hazards and has been
removed from the 2023 LHMP mitigation
actions.
Yes Local Hazard Mitigation Plan - Removed
Yes Standard Plans and Specifications for Sewer & Water FL Removed This is not a mitigation action for the identified hazards and has been
24 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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Figure 3.3.1 – Mitigation Action Updates
2018
Plan
Action Hazard Status Notes
removed from the 2023 LHMP mitigation
actions.
Yes Riverside County Drainage Area Management Plan (DAMP) FL Removed This plan is held by Riverside County Flood Control and is not a mitigation
action for the City.
Yes Wildland Urban Interface Strategic Pre Plan WF Removed This plan is held by CalFIRE and not the local jurisdiction.
Yes The City’s Building Department has standards on building elevations in reference to curbs and gutters based on past practice.
FL Removed This is not a mitigation action for the
identified hazards and has been
removed from the 2023 LHMP mitigation
actions.
Yes Automatic/remote pump resets were installed providing the ability to reset if lift station is flooded and inaccessible.
FL Removed This is not a mitigation action for the
identified hazards and has been
removed from the 2023 LHMP mitigation
actions.
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SECTION 4.0 - HAZARD IDENTIFICATION AND RISK ASSESSMENT The City of Norco is committed to providing protection to residents and businesses from natural and human induced hazards. The City is also committed to coping with and rebuilding from emergency or disaster events in a manner that is efficient, safe, and provides for a quick return to the quality of life that exists daily in Norco.
The City of Norco has identified and evaluated natural and human-induced public safety risks that can have an impact on the health, safety, and social well-being of the community. These risks include the effects of seismically induced surface rupture, ground shaking, ground failure; slope instability; subsidence and other geologic hazards known to the legislative body; flooding; and wildland and urban fires. The table in section 4.1 identifies the critical facilities in the City.
4.1 CRITICAL FACILITIES AND INFRASTRUCTURES
A critical facility may be defined as one that is essential in providing utility or direction either during the response to an emergency or during the recovery operation. An inventory of critical facilities is included from the City of Norco in Figure 4.1.1 and locations are displayed on Figure 4.1.2.
Figure 4.1.1 – Critical Facility Cart
Critical Facilities Type Number
Emergency Operations Center 1
City Facilities 5
Fire Stations 2
Water Reservoirs 7
Water Treatment Plants 1
City Hall Police Facility 1
PW Maintenance Yards 1
Senior Care 2
Prison 1
Schools 8
Total Critical Facilities 29
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Figure 4.1.2 – City of Norco Critical Facilities Map
4.2 TABLE REPLACEMENT VALUES
Many of the assets and critical infrastructure that would be at risk due to the identified hazards are not owned nor operated by the City and thus have a limited capability to produce a complete value loss table. In lieu of this the City used the National Risk Index (NRI) Data by Census Tract to gather the total value of all building and property values within the planning area. Figure 4.2.1 Critical Infrastructure Key Resources Replacement Values shows the replacement values of City-owned assets that are identified in Figure 4.1.2. These assessed building values were taken from the 2023 PERMA assessment.
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Figure 4.2.1 – Critical Infrastructure Key Resources Replacement Table City Owned CIKR
Assessed
Building
Value
Wildfire Flood Earthquake Extreme
Weather
City Hall $7,709,136 X X
Fire Station 47 / EOC $5,922,600 X X X
Fire Station 57 $2,215,200 X X X
George Ingalls Equestrian Center $14,007,500 X X X
Norco Animal Shelter $1,525,200 X X X
Norco Community Center $6,412,100 X X
Norco Public Works Building $1,584,600 X X X
Norco Senior Center $2,890,000 X X
Water Reservoir 1 $3,504,700 X X
Water Reservoir 2 $3,226,800 X X
Water Reservoir 3 $1,593,600 X X
Water Reservoir 4 $4,066,200 X X
Water Reservoir 5 $1,420,500 X X
Water Reservoir 6 and 7 $1,768,000 X X X
Water Treatment Plant $6,288,500 X X X
4.3 HAZARD IDENTIFICATION
The Planning Committee conducted a hazard identification study to determine the hazards that pose the greatest threat to the Planning Area. As a starting point, a NRI Comparison Report for the census tracts within the city was run to identify hazards of concern.
Building upon this data, historical knowledge from residents and staff was gathered about past incidents. Based on this data, the Planning team rated each event based on significance from High to Low. Additionally, the Planning Team considered human-caused and technological hazards that had the most significant impact on the city based on the main transportation corridors that border the city.
Figure 4.4.1 quantifies the numeric values used in the ranking methodology of the Hazard Identification Risk Matrix for both severity and probability. Figure 4.4.2 has the results of this hazard identification.
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Figure 4.4.1 – Severity-Probability Rating Methodology
SEVERITY PROBABILITY
0 – Does not apply 0 – Does not apply
1 – Negligible damage/injuries:
Negligible property damages (less than
five percent (5%) of critical and noncritical facilities and infrastructure). 1 – Unlikely to happen
2 – Limited damage/injuries: Slight
property damages (greater than five
percent (5%) and less than twenty-five
(25%) of critical and non-critical facilities
and infrastructure).
2 – Possible (1% to 10% chance in next ten years)
3 – Critical damage/injuries: Moderate
property damages (greater than 25% and
less than fifty (50%) of critical and noncritical facilities and infrastructures). 3 – Likely (10%-100% chance in next 10 years)
4 – Catastrophic: Severe property
damages (greater than fifty (50%) of
critical and non-critical facilities and
infrastructure).
4 – Highly likely (near 100% in next year)
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Figure 4.4.2 – Hazard Identification Risk Matrix
NATURAL HAZARDS SEVERITY PROBABILITY RANKING SIGNIFICANCE Riverine/Urban Flooding 3 3 1 High
Wildfire 3 3 2 High
Earthquake 3 3 3 High
Severe Weather (Heat/Wind/Cold) 3 3 4 High
Drought 2 3 5 Medium
Hail 1 2 6 Low
Lightning 1 2 7 Low
Strong Wind 1 2 8 Low
Tornado 2 1 9 Low
Landslide 1 1 10 Low
Winter Weather 1 1 11 Low
Hurricane 1 1 12 -
Avalanche 0 0 13 -
Coastal Flooding 0 0 14 -
Ice Storm 0 0 15 -
Tsunami 0 0 16 -
Volcanic Activity 0 0 17 -
HUMAN-CAUSED AND TECHNICAL
HAZARDS SEVERITY PROBABILITY RANKING SIGNIFICANCE
Terrorist Attack 4 2 1 High
Power Outage 2 2 2 Medium
Cyber Attack 2 2 3 Medium
Civil Disorder 2 2 4 Medium
Transportation w/ Hazmat 2 1 5 Low
Civil Unrest 1 2 6 Low
Dam Failure 2 1 7 Low
Insect Infestation 1 2 8 Low
Pipeline Disruption 1 2 9 Low
Jail/Prison Event 1 1 10 Low
Water Supply
Disruption/Contamination 1 1 11 Low
Agricultural Hazards 1 1 12 Low
Nuclear Accident 0 0 13 -
Aqueduct 0 0 14 -
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4.4 HAZARD PROFILES
The High Priority Hazards that were identified in Section 4.3 above have been profiled in the County of Riverside Operational Area Multi-Jurisdictional Local Hazard Mitigation Plan (OA MJLHMP). Below is a list of where the identified hazard profiles and descriptions can be found.
• Flooding - OA MJLHMP p. 256
• Wildfire - OA MJLHMP p. 215
• Earthquake - OA MJLHMP p. 178
• Severe Weather - OA MJLHMP p. 299
• Terrorism - OA MJLHMP p. 246
4.5 VULNERABILITY ASSESSMENT
The Disaster Mitigation Act regulations require jurisdictions evaluate the risk and vulnerability associated with the priority natural hazards identified in the planning process. This section summarizes the possible impacts and quantifies, where the data permits, the City’s vulnerability to each of the high priority hazards identified in Section 4.3.
• Flood
• Wildfire
• Earthquake
• Severe Weather
• Terrorism
An estimate of the vulnerability of the City to each identified hazard, in addition to the estimate of likelihood of future occurrence, is provided in each of the hazardspecific sections that follow. Vulnerability is measured in general, qualitative terms and is a summary of the potential impact based on past occurrences, spatial extent, and damage and casualty potential and is categorized into the following classifications based upon the severity and probability chart found in Figure 4.4.1 on pg. 27.
4.5.1 FLOOD VULNERABILITY ASSESSMENT
Severity: 3 Probability: 3 Vulnerability: High
Hazard Summary: Floods have been a part of the City’s past and will continue to be so in the future. During winter storms, prolonged precipitation can result in flooding causing damage to property and infrastructure. Predominantly, the effects of flooding are generally confined to areas near the drainageways and low-lying areas. As waterways grow in size from local drainages, so grows the threat of flood and dimensions of the threat. Structures can also be damaged from trees falling as
31 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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a result of water-saturated soils. Electrical power outages can occur and cause major problems.
The City is working in conjunction with Riverside County Flood Control & Water Conservation District to identify and mitigate areas that may cause or have the potential to cause damage or destruction of property.
Heavy rain events can also lead to problems with storm drainage systems and create localized flood problems. According to the City of Norco Storm Drain Master Plan, there are several flooding problem areas in the City. These areas are primarily a result of undersized pipes where the runoff exceeds the pipe capacity even for minor storms.
Methodology: Using GIS, the DIFRM flood zones layer and Census Bureau data was overlayed with the City’s critical facilities point layer to determine those critical infrastructure facilities and populations that could be affected. To quantify a potential loss, estimate for both the public and private buildings, the “NRI Building Value”, was multiplied by .05 for the NRI census tracts located adjacent or within a flood zone within the city. This is a worst-case scenario based upon a 500-year event that could cause catastrophic damages.
Figure 4.5.1.1 – Flood Total Value Loss for City of Norco Census Tract NRI Building Value Total Percent
Damage Value Loss
40701 $385,889,960 5% $19,294,498
40702 $485,340,035 5% $24,267,002
40812 $621,697,209 5% $31,084,860
Totals $1,492,927,204 - $74,646,360
City Owned CIKR Assessed Building Value Percent
Damage Value Loss
Fire Station 47 / EOC $5,922,600 5% $296,130
Norco Public Works Building $1,584,600 5% $79,230
Totals $7,507,200 - $375,360
Critical Infrastructure at Risk: The biggest impact to critical infrastructure would be to the roads and transportation corridors in the city that allow transit of emergency response vehicles across the I-15 or the compromising of soil underneath roads creating sinkholes. The City’s Public Works, Emergency Operations Center, and Station 47 are located in 0.2% annual chance flood hazard and could be impacted by a 500-year storm event. Additionally, there is one school in this area that could be affected directly by flooding, they are shown in Figure 4.5.1.
Overall Community Impact: Flooding could have an impact on the transportation capability of the city, impacting those that rely on public transportation. Additionally, 14% of the population living in the low-lying flat area in the north-central part of the
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city is above the age of 65 and could be impacted by stormwater flooding. The unhoused population within the City, is concentrated in the Santa Ana Riverbed area and flooding in this area could cause potential displacement and/or loss of life.
Figure 4.5.1.2 – Norco Flood Risk Map
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4.5.2 WILDFIRE VULNERABILITY ASSESSMENT
Severity: 3 Probability: 3 Vulnerability: High
Hazard Summary: Although, not defined on the Fire Hazard Severity Zones (FHSZ) in Figure 4.5.1, locally knowledge of the area has identified the City’s greatest risk of fire is from a wildland-urban interface (WUI) fire along the Santa Ana River where the vegetation is most dense. The threat of a wildfire under Santa Ana wind conditions in this area presents risks and impacts to the entire city and could cause critical damages to the City due to urban conflagration.
The hot and dry periods of late summer and fall combined with seasonal wind patterns, flammable vegetation, and dense development patterns contribute to creating a substantial fire threat.
Although the physical damages and casualties arising from wildfires may be severe, it is important to recognize that they also cause significant economic impacts by resulting in a loss of function of buildings and infrastructure. Economic impacts due to loss of building use for sheltering operations, utility service disruptions causing school closures, and traffic delays/detours from road and bridge closures could all be economic impacts.
Methodology: Using GIS the CalFire HFSZ layer was overlayed with the critical facilities point layer to determine those facilities that can potentially be affected. To quantify a potential loss, estimate for both the public and private buildings, the “NRI Building Value”, was multiplied by .15 for the NRI census tracts located adjacent to the most fire prone areas within the city. This is a worst-case scenario should a wildfire in the Santa Ana Riverbed or in the HSFZ and create an urban conflagration and spread house to house.
Figure 4.5.2.1 – Wildfire Total Value Loss for City of Norco Census Tract NRI Building Value
Total
Percent
Damage Value Loss
40701 $385,889,960 15% $57,883,494
40702 $485,340,035 15% $72,801,005
40813 $1,514,851,229 15% $227,227,684
Totals $2,386,081,224 $357,912,184
City Owned CIKR Assessed Building
Value
Percent
Damage Value Loss
Fire Station 57 $2,215,200 15% $332,280
George Ingalls Equestrian Center $14,007,500 15% $2,101,125 Norco Animal Shelter $1,525,200 15% $228,780
Water Reservoir 6 and 7 $1,768,000 15% $265,200
Water Treatment Plant $6,288,500 15% $943,275
Totals $25,804,400 $3,870,660
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Critical Infrastructure at Risk: The George Ingalls Event Center, Water Reservoir 6 and 7, and the Animal Shelter are in or near a HSFZ and could be impacted by a wildfire along the eastern edge of the city. Additionally, the Water Treatment Plant, Station 57, and a school could be at risk from a fire in the Santa Ana Riverbed. All of the City’s facilities could be affected by smoke, poor air quality, or potential power outages caused by a wildfire. These structures are identified in Figure 4.5.2.2.
Overall Community Impact: A wildfire would have significant impact on the community due to air quality and potential evacuations. There are multi-residents on the eastern side of the City against the FHSZ with large an The greatest impact will be on those with breathing issues and limited mobility. Additionally, the unhoused population within the city, is concentrated in the Santa Ana Riverbed area and fastmoving wildfire could potentially cause fatalities within this population.
Depending on the location of the fire transportation corridors and evacuation routes could be impacted. Those residents that do not have vehicles would be at the highest risk.
Figure 4.5.2.2 – Norco Wildfire Risk Map
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4.5.3 EARTHQUAKE VULNERABILITY ASSESSMENT
Severity: 3 Probability: 3 Vulnerability: High
Hazard Summary: Ground shaking is typically the greatest hazard and major cause of damage. The transmission of earthquake waves can cause buildings to collapse, streets to crack, and utility lines to rupture. Strong ground shaking can also cause damage due to falling objects such as bookcases or water heaters, chemical spills, and secondary effects such as fire or explosion. Impacts from earthquake include property damage, critical facility damage, injury, and loss of life.
On any given site, the degree of shaking tends depends on the magnitude of the earthquake, distance to the fault, property of the underlying soils, building design and construction, and building materials. Shaking tends to be strongest on filled soils and in areas where soil depth and moisture content are high.
Multiple faults in the County have the capability of greatly affecting the City by causing significant damage and disruption to widespread areas. The City’s buildings and utility systems are generally designed to withstand some disaster damage and
36 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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function at least at partial capacity. However, major quake-caused structural damage to under/above ground buildings and utilities would have a serious impact on response to and recovery from a major disaster.
Liquefaction potential is low to moderately high in areas of shallow groundwater in the alluvium of the Temescal Wash and all along the Santa Ana River.
Methodology: Using GIS the USGS Ground Shaking layer was overlayed with the City’s critical facilities point layer to determine those critical infrastructure facilities and populations that could be affected. To quantify a potential loss, estimate for both the public and private buildings, the “NRI Building Value”, was multiplied by .15 for all NRI census tracts within the city.
Figure 4.5.3.1 – Earthquake Total Value Loss for City of Norco Census Tract NRI Building Value Total Percent
Damage Value Loss
40701 $385,889,960 15% $57,883,494
40702 $485,340,035 15% $72,801,005
40703 $479,168,379 15% $71,875,257
40806 $449,410,132 15% $67,411,520
40812 $621,697,209 15% $93,254,581
40813 $1,514,851,229 15% $227,227,684
46601 $736,744,918 15% $110,511,738
46602 $1,011,603,309 15% $151,740,496
Totals $5,684,705,171 - $852,705,776
City Owned CIKR Assessed Building
Value
Percent
Damage Value Loss
City Hall $7,709,136 15% $1,156,370
Fire Station 47 / EOC $5,922,600 15% $888,390
Fire Station 57 $2,215,200 15% $332,280
George Ingalls Equestrian
Center $14,007,500 15% $2,101,125
Norco Animal Shelter $1,525,200 15% $228,780
Norco Community Center $6,412,100 15% $961,815
Norco Public Works Building $1,584,600 15% $237,690
Norco Senior Center $2,890,000 15% $433,500
Water Reservoir 1 $3,504,700 15% $525,705
Water Reservoir 2 $3,226,800 15% $484,020
Water Reservoir 3 $1,593,600 15% $239,040
Water Reservoir 4 $4,066,200 15% $609,930
Water Reservoir 5 $1,420,500 15% $213,075
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Water Reservoir 6 and 7 $1,768,000 15% $265,200
Water Treatment Plant $6,288,500 15% $943,275
Totals $64,134,636 - $9,620,195
Critical Infrastructure at Risk: A magnitude 6.7 or greater earthquake would impact the entire Planning Area including all of the critical facilities. The loss of the water reservoirs would have a critical impact on the Cities ability to provide potable water to the community. Figure 4.5.3 shows the critical facilities within the planning area.
Overall Community Impact: A Magnitude 6.7 or greater earthquake would be catastrophic to the entire community. There would be large spread damage to housing and community lifelines, especially those in homes built prior to 1965, which is approximately 2,655 homes based on the U.S. Census Bureau ACS 2021 estimates. The potential road damage would make it difficult for transportation out of the affected areas or first responders to access. The aging population and those under the age of five would be the greatest impacted due to mobility issues or inability to self-evacuate.
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Figure 4.5.3.2 – Norco Earthquake Risk Map
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4.5.4 SEVERE WEATHER (HEAT, COLD, WIND) VULNERABILITY
ASSESSMENT
Severity: 3 Probability: 3 Vulnerability: High
Hazard Summary: Heat, severe wind, and cold hazards are significant natural threats that can significantly impact individuals, communities, and environments.
Extreme heat happens in the City for short periods of time each year. Extreme heat may overload demands for electricity to run air conditioners in homes and businesses during prolonged periods of exposure and presents health concerns to individuals outside in the temperatures. Extreme heat may also be a secondary effect of droughts or may cause drought-like conditions in a temporary setting. For example, several weeks of extreme heat increases evapotranspiration and reduces moisture content in vegetation, leading to higher wildfire vulnerability for that time period even if the rest of the season is relatively moist. Extreme heat, when combined with wind, can lead to Public Safety Power Shutdown (PSPS) events in the larger County area that could extend into the city.
Severe wind hazards involve strong, damaging winds that can cause widespread destruction and disruptions. Severe winds can lead to property damage, infrastructure failure, power outages, flying debris, and structural collapses.
Norco is in a wind prone area and is susceptible “Santa Ana” winds due to the proximity to the Cajon Pass. Wind speeds in excess of 70 mph are possible which greatly increase the potential for a devastating wind driven wildland fire.
Methodology: As severe weather events impact the entire planning area and there is limited GIS data to create maps, no map was created for this event. To quantify a potential loss, estimate for both the public and private buildings, the “NRI Building Value”, was multiplied by .05 for all NRI census tracts within the city.
Figure 4.5.4.1 – Severe Weather Total Value Loss for City of Norco Census Tract NRI Building Value Total Percent
Damage Value Loss
40701 $385,889,960 5% $19,294,498
40702 $485,340,035 5% $24,267,002
40703 $479,168,379 5% $23,958,419
40806 $449,410,132 5% $22,470,507
40812 $621,697,209 5% $31,084,860
40813 $1,514,851,229 5% $75,742,561
46601 $736,744,918 5% $36,837,246
46602 $1,011,603,309 5% $50,580,165
Totals $5,684,705,171 - $284,235,259
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City Owned CIKR Assessed Building
Value
Percent
Damage Value Loss
City Hall $7,709,136 5% $385,457
Fire Station 47 / EOC $5,922,600 5% $296,130
Fire Station 57 $2,215,200 5% $110,760
George Ingalls Equestrian
Center $14,007,500 5% $700,375
Norco Animal Shelter $1,525,200 5% $76,260
Norco Community Center $6,412,100 5% $320,605
Norco Public Works Building $1,584,600 5% $79,230
Norco Senior Center $2,890,000 5% $144,500
Water Reservoir 1 $3,504,700 5% $175,235
Water Reservoir 2 $3,226,800 5% $161,340
Water Reservoir 3 $1,593,600 5% $79,680
Water Reservoir 4 $4,066,200 5% $203,310
Water Reservoir 5 $1,420,500 5% $71,025
Water Reservoir 6 and 7 $1,768,000 5% $88,400
Water Treatment Plant $6,288,500 5% $314,425
Totals $64,134,636 - $3,206,732
Critical Infrastructure at Risk: All of the critical infrastructure within the City are at risk from extreme heat and high winds, due to potential power outage that be caused by a heat wave and high wind events. These facilities should have backup generator power to ensure continuity of operations. Additionally, a sever straight line wind could potentially cause damage to communication towers that are key to communication.
Overall Community Impact: Due to the increasing aging population within the city the combined impact of heat waves and severe winds could have life threatening impacts to those community members that rely on powered medical devices. The most vulnerable populations would be the unhoused population, infants, and children under 5, elderly, and those individuals with disabilities, due to the inability to escape the heat or increased dust and debris in the air, reduced air quality.
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4.5.5 TERRORIST ATTACK VULNERABILITY ASSESSMENT
Severity: 4 Probability: 2 Vulnerability: High
Hazard Summary: Terrorism, as defined by the FBI, is the unlawful use of force against persons or property to intimidate or coerce a government, the civilian population, or any segment thereof, in the furtherance of political or social objectives.
The act of terrorism could involve chemicals, biological, radiological, or nuclear agents, explosives, or cyber-terrorism.
A specific location for a terrorist attack is not known; however, some of the most likely targets in the City of Norco could be: Naval Surface Warfare Center (NSWC) - Norco, Norco College, Silver Lakes Equestrian and Sports Complex, and George Ingalls Equestrian Event Center. These are considered high-profile targets but acts of terrorism could occur anywhere within the City of Norco.
Methodology: This event has no defined methodology to determine the potential loss value.
Critical Infrastructure at Risk: The Naval Surface Warfare Center (NSWC) - Norco, Norco College, Silver Lakes Equestrian and Sports Complex, and George Ingalls Equestrian Event Center.
Overall Community Impact: A terrorist attack can have profound and far-reaching impacts on a community, often affecting various aspects of society, including individuals, infrastructure, economy, and social cohesion.
The most immediate and devastating impact of a terrorist attack would be the loss of innocent lives and injuries to survivors, that would span the breath of the demographics within the city. This loss can lead to widespread grief, trauma, and long-term psychological effects on individuals and their families having the greatest impact on children and those with pre-existing trauma. This could result in residents being afraid to go about their daily lives, leading to a heightened sense of insecurity and reduced quality of life.
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SECTION 5.0 – COMMUNITY RATING SYSTEM
5.1 REPETITIVE LOSS PROPERTIES
There are no repetitive loss or severe loss properties within the jurisdiction.
5.2 NATIONAL FLOOD INSURANCE PROPERTIES
The City of Norco has participated in the National Flood Insurance Program since 1978.
a. Describe participation in NFIP, including any changes since previously approved plan. Norco enacted Floodplain Management measures pursuant to NFIP in 1978. In addition, the City of Norco has had multiple updates to Chapter
15.60 of the Municipal Code, Floodplain Management, with the most recent being 2008.
b. Date first joined NFIP? – October 2, 1978
c. Identify actions related to continued compliance with NFIP – Norco Floodplain Management Ordinance was updated in 2008 to meet the minimum NFIP requirements pursuant to Title 44 Code of Federal Regulations Sections 59, 60.3-60.6, and 65.3 and the California Department of Water Resources (DWR) Model Ordinance; the Public Works Department reviews development permit applications and plans to ensure they are in compliance with our Ordinance and requires map revisions as necessary; the Public Works Department maintains records such as elevation certificates, Letters of Map Changes, and Flood Insurance Rate Maps (FIRMs) for public availability; and the Community Development Department and Public Works Department investigate violations and issue enforcement to bring developments in compliance with our Ordinance.
d. CRS member - No
e. CRS class – n/a
f. Describe any data used to regulate flood hazard area other than FEMA maps- Riverside County Flood Insurance Study issued August 28, 2008; Drainage studies used to support CLOMR and LOMR issuance. g. Have there been issues with community participation in the program? No, unless the permit is in compliance.
h. What are the general hurdles for effective implementation of the NFIP? Funding for updating outdated drainage studies and for performing new studies in previously unstudied flood hazard areas.
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i. Summarize actions related to continued compliance with NFIP (c-2 and c4) –See item c. above. ii. Repetitive Loss Properties-Unknown
Other risks – There are no known risks different from rest of County.
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SECTION 6.0 - CAPABILITIES ASSESSMENT
Capabilities are the programs and policies currently in use to reduce hazard impacts or that could be used to implement hazard mitigation activities. This capabilities assessment is divided into five sections –
• Regulatory Mitigation Capabilities
• Administrative and Technical Mitigation Capabilities
• Fiscal Mitigation Capabilities
• Mitigation Outreach and Partnerships
• Other Mitigation Efforts
The tables in this section identify if the City has the capability based upon a “Yes/No” answer. If annotated with a “Yes”, the City does have that capability or access to it, if it is annotated with a “No”, the City does not have that capability or access to it.
6.1 REGULATORY MITIGATION CAPABILITIES
These capabilities can be expanded and improved upon by incorporating hazard information into the General Plan. Implement a process to ensure mitigation actions identified in the hazard mitigation plan are reviewed as part of the update to the City’s Capital Improvement Program, Continuity of Operations Plan, and Emergency Operations Plan.
Regulatory Tool
Yes/No
*Status/Capabilities Comments
General Plan Yes Last updated 2009 (Land use
element) The general plan guides
long term growth, future development,
and policy activities. Discoveries
made in the local hazard mitigation
plan will be incorporated into the city’s
general plan to mitigate hazards. In
2017, The LHMP was adopted into
the Safety Element of the General
Plan.
Zoning ordinance Yes NMC Title 18 Future development
may be held to higher standards
limiting hazards, i.e. development
location, development shape, size,
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Regulatory Tool
Yes/No
*Status/Capabilities Comments
position and foundation.
Redeveloped and retrofitted buildings
may be held to higher standards.
Subdivision ordinance Yes NMC Title 17
Site plan review
requirements
Yes NMC Title 18
Growth management
ordinance
No
Floodplain ordinance Yes NMC Ch. 15.60 The ordinance can be updated to limit repetitive loss
properties and prevent construction of
new building in hazardous areas.
Other special purpose
ordinance (stormwater,
water conservation,
wildfire)
Yes Water Conservation Ordinance,
Norco Municipal Code These
mitigation actions can be used to clear
brush in fire prone areas, clear
drainage systems to limit flooding,
conserve water during droughts, raise
citizen awareness.
Building Code Yes California Building Code 2022
Mitigation actions may pertain to
amending the building code to
improve structural integrity, building
safety, and building stability.
Fire Department ISO
rating
Yes Rating: 3
Erosion or sediment
control program
Yes NMC Ch. 15.70 Mitigation actions,
may include planting diverse
vegetation, improved drainage,
retaining walls, etc.
Stormwater
Management Program
Yes Norco Storm Drain Master Plan, 2005.
Mitigation actions include cleaning
storm drains and preventing drainage
systems from blockage.
Capital Improvements
Plan
Yes Five-year plan; updated annually.
Mitigation actions may involve
construction of new or upgraded city
facilities and in structure.
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Regulatory Tool
Yes/No
*Status/Capabilities Comments
Economic Development
Plan
Yes Norco Strategic plan (EDAC). Future
development will incorporate
mitigation actives to lower hazard risk
including smart development, multiple
egress routes, avoiding hazard prone
areas limiting economic losses.
Local emergency
operations plan
Yes Emergency Operations Plan, Adopted
2018.
Other special plans • Water Master Plan, 2017
• Urban Water Management Plan,
2020
• California Fire Code 2022
• Weed abatement Program
Flood Insurance Study
or other engineering
study for streams
Yes FEMA Flood Insurance Study, 2008
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6.2 ADMINISTRATIVE/TECHNICAL MITIGATION CAPABILITIES
The Administrative and Technical capabilities can be expanded and improved on to reduce risk through additional emergency management staffing, emergency planning and mitigation training for staff, and hiring a grants manger or contracting with a grants consultant to leverage mitigation grant funding.
Personnel Resources
Yes/No
Status Department/Position
Planner/engineer with knowledge of land
development/land management practices
Yes Planning and Senior Engineer
Engineer/professional trained in construction
practices related to buildings and/or
infrastructure
Yes Senior Engineer and Senior
Building Inspector
Planner/engineer/scientist with an
understanding of natural hazards
Yes Senior Engineer
Personnel skilled in GIS Yes Planning, IT Department
Full time building official No Contracted (Part Time)
Floodplain manager Yes Senior Engineer
Emergency manager Yes Police Chief or Fire Chief
Grant writer No
Other personnel No
GIS Data—Land use Yes IT, Planning
GIS Data—Links to Assessor’s data Yes IT
Warning systems/services
EWNS, Nixel, outdoor warning signals)
Yes EMD, IT
Other
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6.3 FISCAL MITIGATION CAPABILITIES
Fiscal Capabilities can be expanded and improved upon by coordinating with other departments, organizations, and agencies during the annual review to identify projects that should be priorities when Hazard Mitigation Grants opportunities are available post-deceleration. The City has never applied for the Building Reliant and Infrastructure Communities Grant. It could identify projects that align with the grant requirements for a potential funding source to help mitigate hazards.
Financial Resources
Accessible/Eligible
to Use (Yes/No) Comments
Community Development Block
Grants
Yes Depending on Budget
Capital improvements project
funding
Yes Depending on available budget
Authority to levy taxes for specific
purposes
Yes With voter City council approval
Fees for water, sewer, gas, or
electric services
Yes Subject to Proposition 218
protest hearing provisions.
Impact fees for new development Yes With City council approval Incur debt through general
obligation bonds
Yes With voter City council approval
Incur debt through special tax
bonds
Yes With voter City council approval
Incur debt through private
activities
No
General Fund and Special Asset
Revenue Fund Reserves
Yes Reserve for Emergency
6.4 MITIGATION OUTREACH AND PARTNERSHIPS
The City of Norco currently has an existing program in which information is made available to the public via web site, E-blasts, weekly highlights, Social Media, Norco App, Nixel, and handout materials. The Fire Department has multiple programs which include a fire prevention week, weed abatement, fire safety tips in the home, disaster preparedness, etc. conducted yearly for the community. The Fire Department also attends additional special community events, which provides public education materials to the public. Some of the organizations that request or provide
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help include Norco Horsemen’s Association, Norco Lions Club, Corona/Norco Unified School District, Mommy’s Club, Boy Scouts, Hillside Tree Farm and Norco Mounted Posse.
6.5 FUNDING OPPORTUNITIES
FEMA HMA Grants: Cal OES administers three main types of HMA grants: (1) Hazard Mitigation Grant Program, (2) Pre-Disaster Mitigation Program, and (3) Flood Mitigation Assistance Program. Eligible applicants for the HMA include state and local governments, certain private non-profits, and federally recognized Indian tribal governments. While private citizens cannot apply directly for the grant programs, they can benefit from the programs if they are included in an application sponsored by an eligible applicant.
FEMA Public Assistance Section 406 Mitigation: The Robert T. Stafford Disaster Relief and Emergency Assistance Act provides FEMA the authority to fund the restoration of eligible facilities that have sustained damage due to a presidentially declared disaster. The regulations contain a provision for the consideration of funding additional measures that will enhance a facility’s ability to resist similar damage in future events.
Building Resilient Infrastructure and Communities: FEMA’s BRIC grant program give states, local communities, tribes and territories funding to address future risks to natural disasters, including ones involving wildfires, drought, hurricanes, earthquakes, extreme heat, and flooding. Addressing these risks helps make communities more resilient.
Community Development Block Grants: The California Department of Housing and Community Development administers the State’s Community Development Block Grant (CDBG) program with funding provided by the U.S. Department of Housing and Urban Development. The program is available to all non-entitlement communities that meet applicable threshold requirements. All projects must meet one of the national objectives of the program – projects must benefit 51 percent lowand moderate-income people, aid in the prevention or clearance of slum and blight or meet an urgent need. Grant funds can generally be used in federally declared disaster areas for CDBG eligible activities including the replacement or repair of infrastructure and housing damaged during, or as a result of, the declared disaster.
Small Business Loans: SBA offers low-interest, fixed-rate loans to disaster victims, enabling them to repair or replace property damaged or destroyed in declared disasters. It also offers such loans to affected small businesses to help them recover from economic injury caused by such disasters. Loans may also be increased up to 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements to make improvements that lessen the risk of property damage by possible future disasters of the same kind.
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SECTION 7.0 - MITIGATION STRATEGIES
7.1 GOALS AND OBJECTIVES
Goal 1: Provide effective emergency response to disasters that limits the loss of life and curtails property damage, and minimizes to the greatest extent feasible, serious damage and injuries.
Objective 1.1: Provide timely notification and direction to the public of imminent and potential hazards.
Objective 1.2: Protect public health and safety by preparing for, responding to, and recovering from the effects of natural or technological disasters.
Objective 1.3: Improve community transportation corridors to allow for better evacuation routes for public and better access for emergency responders.
Goal 2: Substantially reduce the known level of risk to loss of life, personal injury, public and private property damage, economic and social dislocation, and disruption of vital community services that would result from earthquake damage or other geologic disturbance.
Objective: 2.1: Require new development and re-development to be undertaken in a manner that is in compliance with current seismic and geologic hazard safety standards, as follows:
Objective 2.2: Amend the Building and Zoning Codes to incorporate specific standards for siting, seismic design, and review of Essential Facilities.
Goal 3: Promote Disaster Preparedness
Objective 3.1: Promote greater community awareness and understanding of the effects of natural and man-made disasters.
Goal 4: Maintain Coordination of Disaster Planning
Objective 4.1: Coordinate with changing DHS/FEMA needs.
4.1.1: National Incident Management System (NIMS)
4.1.2: Disaster Mitigation Act (DMA) planning
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7.2 MITIGATION ACTIONS
In Section 3.3 the Planning Team identified the status of previous mitigation actions, the below table represents those actions that were either ongoing or identified as new mitigation actions during the planning process.
The City of Norco identified and prioritized the following mitigation actions based on the STAPLEE criteria and ranked them sequentially from highest priority (1) to lowest priority (14). The results are listed in Figure 7.2.1. Background information and how each action will be implemented and administered are included.
Figure 7.2.1 – Hazard Mitigation Action Abbreviation Codes Hazard Abbreviation
Flooding FL
Earthquake EQ
Wildfire WF
All Hazards AH
Severe Weather SW
Terrorism TR
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Figure 7.2.1: 2023 Mitigation Actions
*Due to limited funding for previous mitigation actions the actions below from the 2018 LHMP were included in 2023 plan.
Plan Year Action Hazard Background/Benefit Department(s) Cost Estimate 2018 Sandbagging program for Norco
residents and businesses.
FL
Due to the potential of residential
flooding because of drain issues, this
program provides sandbags to
residents to protect their property.
Fire Department/
Public Works $15,000 - $30,000
2018
Require all new developments, existing
critical and essential facilities and
structures to comply with the most
recent California Building Code seismic
design standards.
EQ
The City adopted the most recent
California Building Code, as of
January 1st, 2023. The California
Building Codes are based on the 2021
International Building Codes and the
ASCE 7-16 for seismic design.
Public
Works/Planning $75,000 - $100,000
2018
Hazardous vegetation mitigation
program addressing city-owned
properties.
WF
Fuel Reduction on large open areas
of land to reduce potential wild land
fires and ignition points.
Facilities &
Maintenance $5,000 - $10,000
2018 Improved property hazardous
vegetation removal program. WF
Fuel Reduction in neighborhoods in
order to reduce the potential for
fires.
Code Enforcement $5,000 - $10,000
2018
Vacant lot weed abatement program.
WF
Fuel Reduction on large open areas
of land to reduce potential wildland
fires and ignition points.
Fire Department $15,000 - $25,000
2018 N.A.R.T (Norco Animal Rescue Team) WF
As a large animal keeping community
this program helps mitigate the
potential loss of local residents’
animal in the event of a major
disaster.
Animal Control $5,000 - $10,000
2018
Promote greater community awareness
and understanding of the effects of
natural and man-made disasters to
property, humans and animals within
the rural City of Norco.
AH
Currently, there is no dedicated
program to educate the community
on potential hazards by season.
Establishing this program would
inform the community as fire or
flooding seasons approach.
Fire Department $25,000 - $50,000
2018 Continue storm drain enhancements FL
Stormwater run-off has caused
localized flooding within the City.
These enhancements will channel
water from streets and residents’
property to proper catch basins.
Public
Works/Planning $500,000 - $1,000,000
2018
Train and equip Fire Dept. for Terrorism
Responses, have employees attend
Terrorism Liaison Officer training.
TR
As City of Norco is home to
Silverlake's, Riverside Community
College, Nellie Weaver Hall, and
other event facilities it is imperative
that First Responders are equipped
and ready to ready to respond to
acres of terrorism.
Fire Department $5,000 - $10,00
2018
Security analysis at all events at City
Facilities and annual review of security
at buildings.
TR
As Norco hosts several community
events it is imperative to make sure
all events held in Norco are secure
and safe for the public
Sherriff Department $15,000- $25,00
2023
Develop a program to educate citizens
regarding the dangers of extreme heat
and cold and the steps they can take to
protect themselves when extreme
temperatures occur.
SW
Educating an increasingly aging
population on the impacts of
extreme weather is imperative to
community resilience. Establishing
this program with reduce potential
impacts from extreme weather
Community Services $25,000 - $50,000
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Plan Year Action Hazard Background/Benefit Department(s) Cost Estimate 2018 Identify buildings at Booster Stations to
current fire standards. WF
The City has adopted the most recent
California Building Code, the 2022
edition, as of January 1st, 2023. It is
imperative to make sure all Booster
Station meet the current fire and
building standards to ensure optimal
operation.
Public Works $10,000 - $15,000
2018
Develop a Hazardous Material
Identification and Response Plan for the
City of Norco
AH
Been identified that there are
multiple Hazardous Materials stored
throughout the City. This plan will
identify the high-risk areas and
mitigate potential loss of life in an
Haz Mat incident.
Planning / Fire $50,000 - $75,000
2018 CERT (Community Emergency Response
Team) AH
Educating the community is one of
the key foundations of building
resiliency. Maintaining this program
will help to prepare the community.
Fire Department 5,000-10,000
7.3 HAZARD MITIGATION ACTION PRIORITIZATION
The City identified and prioritized the following mitigation actions based on the Social, Technical, Administrative, Political, Legal, Economic, and Environmental (STAPLEE) criteria.
7.4 FUTURE MITIGATION STRATEGIES
The City will review and prioritize mitigation measures while focusing on the goals.
During the next five years, a committee will review risks and hazards that are identified by staff, community-based organizations, collaborative partners or presented through the Hazard Communication process and will be included in future Local Hazard Mitigation Plans if funding is available and there is a risk for potential damage.
The City will continue to foster and develop Review Cooperative Agreements with the Cities of Eastvale, Jurupa Valley, and Riverside in connection with hazard mitigation projects, outreach, and preparedness.
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SECTION 8.0 - PLAN IMPLEMENTATION AND MAINTENANCE PROCESS The City of Norco’s Fire Department Battalion Chief will monitor our LHMP on an annual basis over the next 5 years. The Norco Emergency Management Team will review the LHMP and assess:
• The goals and objectives address current and expected conditions. • The nature, magnitude, and/or type of risks have changed. • The current resources are appropriate for implementing the plan. • Implementation problems, such as technical, political, legal, or coordination issues with other agencies.
• The outcomes have occurred as expected (a demonstration of progress). • The agencies and other partners participated as originally proposed.
If we discover changes have occurred during the evaluation, we will update the LHMP Revision Page, and notify County of Riverside Emergency Management Department to update our Annex.
The City of Norco will submit an official updated Local Hazard Mitigation Plan Annex to the County of Riverside’s Emergency Management Department every 5 years.
The county will adopt the annex into the Operational Area Multi-Jurisdictional LHMP and submit it to Cal OES and FEMA for approval.
SECTION 9.0 - INCORPORATION INTO EXISTING PLANNING
MECHANISMS
The City has incorporated the Local Hazard Mitigation Plan by adoption into the Safety Element of the City’s General Plan. In 2017 the City of Norco 2017 local hazard mitigation plan was incorporated into the General plan and city legislation.
The findings in this plan will be incorporated into the City of Norco’s General Plan ensuring consistency. Both plans are living documents designed to change as needed because local hazards, demographics and topography change. The City of Norco’s emergency management training, Youth Advisory Council, etc. will receive the updated version of the plan and amend trainings to match finding found in the local hazard mitigation plan, i.e. hazard ranking, mitigation outreach, updates from the 2017 plan.
The City has a Safety Element in its General Plan that includes a discussion of fire, earthquake, flooding, and landslide hazards. This plan was adopted as an implementation appendix to the Safety Element. In addition, the City enforces the requirements of the California Environmental Quality Act (CEQA), which, since 1988, requires mitigation for identified natural hazards. The City has used these
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pre-existing programs as a basis for identifying gaps that may lead to disaster vulnerabilities in order to work on ways to address these risks through mitigation.
Information found in the LHMP will also be used as a reference into other planning mechanisms such as Capital Improvement Plans, Emergency Operations Plans, water related management plans and wildfire related management plans. The City Municipal Code takes cues from state and federal regulations as well as historical events in the City in promulgating regulations and guidance. As new regulations are passed at the state and federal level, Department staff aware of the new requirements drafts updates to the Norco Municipal Code for City Council approval. Changes and ordinances are presented before City Council by way of a public hearing during which comments are sought, considered and recommendations made.
SECTION 10.0 - CONTINUED STAKEHOLDER & PUBLIC
INVOLVEMENT
If any changes are made in the Scheduled Plan Maintenance Process, the public will be notified through actions taken at City Council meetings by posting of the Agenda, informational flyers and outreach at community meetings. The City will use its social media platforms and when appropriate, leverage stakeholder and community social media platforms to announce the meetings/events. This City will also continue to provide public forums which gives the public and local emergency managers the opportunity to collaborate and coordinate prior to an emergency occurring.
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APPENDIX A – PUBLIC NOTICES
SEE ATTACHMENTS
Continue to next page.
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Exhibit B-1 – Introduction to Local Hazard Mitigation Plan Notice Exhibit B-2 – City Council Regular Meeting Agenda
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APPENDIX B – CAPITAL IMPROVEMENT PLAN
BUDGET
https://www.norco.ca.us/departments/publicworks-engineering/capital-improvementprojects https://norco.civicweb.net/filepro/documents/
5765/
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APPENDIX C – INVENTORY WORKSHEETS
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APPENDIX D – PLAN REVIEW TOOL/CROSSWALK
Copy of County Review
REGION IX LOCAL MITIGATION PLAN REVIEW TOOL
The Local Mitigation Plan Review Tool demonstrates how the Local Mitigation Plan meets the regulation in 44 CFR §201.6 and offers states and FEMA mitigation planners an opportunity to provide feedback to the community.
• The Regulation Checklist provides a summary of FEMA’s evaluation of whether the plan has addressed all requirements.
• The Plan Assessment identifies the plan’s strengths as well as documents areas for future improvement. This section also includes a list of resources for implementation of the plan.
• The Multi-Jurisdiction Summary Sheet is a mandatory worksheet that is used to document which jurisdictions have participated in the planning process and are eligible to adopt the plan.
• The Hazard Identification and Risk Assessment Matrix is a tool for plan reviewers to identify if all components of Element B are met.
Jurisdiction:
City of Norco
Title of Plan:
Local Hazard Mitigation Plan
Date of Plan:
January 2032
Local Point of Contact:
William Otterman
Address:
3902 Hillside Ave.
Norco, CA 92860
Title:
North West Division Chief
Agency:
CAL FIRE Riverside
Phone Number:
951-737-8097
E-Mail:
6 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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County Reviewer: Title: Date:
State Reviewer: Title: Date:
Date Received at State Agency
Plan Not Approved
Plan Approved/Sent to FEMA
FEMA Reviewer: Title: Date:
Date Received in FEMA Region IX
Plan Not Approved
Plan Approvable Pending
Adoption
Plan Approved
SECTION 1:
REGULATION CHECKLIST
INSTRUCTIONS: The Regulation Checklist must be completed by FEMA. The purpose of the Checklist is to identify the location of relevant or applicable content in the plan by element/sub-element and to determine if each requirement has been ‘Met’ or ‘Not Met.’ The ‘Required Revisions’ summary at the bottom of each element must be completed by FEMA to provide a clear explanation of the revisions that are required for plan approval.
Required revisions must be explained for each plan sub-element that is ‘Not Met.’ Subelements should be referenced in each summary by using the appropriate numbers (A1, B3, etc.), where applicable. Requirements for each Element and sub-element are described in detail in the Local Plan Review Guide in Section 4, Regulation Checklist.
7 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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1. REGULATION CHECKLIST
Regulation (44 CFR 201.6 Local Mitigation Plans)
Location
in Plan
(section
and/or
page
number)
Met Not
Met
ELEMENT A. PLANNING PROCESS
1. A1. Does the plan document
the planning process, including how
it was prepared and who was
involved in the process for each
jurisdiction? (Requirement
§201.6(c)(1))
2. 3.
a. Does the plan
document the planning
process, including how it
was prepared (with a
narrative description,
meeting minutes, sign-in
sheets, or another
method)?
Section 2.1
-
b. Does the plan list the
jurisdiction(s)
participating in the plan
that are seeking
approval?
Section 1
Section 2.1
c. Does the plan identify
who represented each
jurisdiction?
(At a minimum, it must
identify the jurisdiction
represented and the
person’s position or title
and agency within the
jurisdiction.)
Section 2.1
8 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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1. REGULATION CHECKLIST
Regulation (44 CFR 201.6 Local Mitigation Plans)
Location
in Plan
(section
and/or
page
number)
Met Not
Met
4. A2. Does the plan document
an opportunity for neighboring
communities, local and regional
agencies involved in hazard
mitigation activities, agencies that
have the authority to regulate
development as well as other
interests to be involved in the
planning process? (Requirement
§201.6(b)(2))
a. Does the plan
document an
opportunity for
neighboring
communities, local, and
regional agencies
involved in hazard
mitigation activities,
agencies that have the
authority to regulate
development, as well as
other interested parties
to be involved in the
planning process?
Section 2.2
✓
b. Does the plan identify
how the stakeholders
were invited to
participate in the
process?
Section 2.1
Section 2.3 ✓
A3. Does the plan document how the public was involved in the planning process during the drafting stage? (Requirement §201.6(b)(1))
Section 2.3
✓
A4. Does the plan describe the review and incorporation of existing plans, studies, reports, and technical information? (Requirement §201.6(b)(3))
Section 6.1
(Regulatory
Tool)
Section 9.0
✓
A5. Is there discussion of how the community(ies) will continue public participation in the plan maintenance process?
(Requirement §201.6(c)(4)(iii))
Section
10.0 ✓
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1. REGULATION CHECKLIST
Regulation (44 CFR 201.6 Local Mitigation Plans)
Location
in Plan
(section
and/or
page
number)
Met Not
Met
A6. Is there a description of the
method and schedule for
keeping the plan current
(monitoring, evaluating and
updating the mitigation plan
within a 5-year cycle)?
(Requirement §201.6(c)(4)(i))
a. Does the plan identify
how, when, and by
whom the plan will be
monitored (how will
implementation be
tracked) over time?
Section 8.0
✓
b. Does the plan identify
how, when, and by
whom the plan will be
evaluated (assessing the
effectiveness of the plan
at achieving stated
purpose and goals) over
time?
Section 8.0
✓
c. Does the plan identify
how, when, and by
whom the plan will be
updated during the 5-
year cycle?
Section 8.0
✓
ELEMENT A: REQUIRED REVISIONS
ELEMENT B. HAZARD IDENTIFICATION AND RISK ASSESSMENT
(Reviewer: See Section 4 for assistance with Element B)
5. B1. Does the plan include a
description of the type, location, and
extent of all natural hazards that can
affect each jurisdiction(s)?
(Requirement §201.6(c)(2)(i))
a. Does the plan include
a general description of
all natural hazards that
can affect each
jurisdiction?
Section 4.4
10 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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1. REGULATION CHECKLIST
Regulation (44 CFR 201.6 Local Mitigation Plans)
Location
in Plan
(section
and/or
page
number)
Met Not
Met
6. 7.
b. Does the plan provide
rationale for the
omission of any natural
hazards that are
commonly recognized to
affect the jurisdiction(s)
in the planning area?
Section 4.4
✓
c. Does the plan include a
description of the
location for all natural
hazards that can affect
each jurisdiction?
Section 4.4
✓
d. Does the plan include
a description of the
extent for all natural
hazards that can affect
each jurisdiction?
Section 4.4
✓
8. B2. Does the plan include
information on previous occurrences
of hazard events and on the
probability of future hazard events
for each jurisdiction? (Requirement
§201.6(c)(2)(i))
a. Does the plan include
information on previous
occurrences of hazard
events for each
jurisdiction?
Section 3.2
Section 3.3 ✓
b. Does the plan include
information on the
probability of future
hazard events for each
jurisdiction?
Section 4.4
✓
9. B3. Is there a description of
each identified hazard’s impact on
the community as well as an overall
summary of the community’s
vulnerability for each jurisdiction?
(Requirement §201.6(c)(2)(ii))
a. Is there a description
of each hazard’s impacts
on each jurisdiction
(what happens to
structures,
infrastructure, people,
environment, etc.)?
Section 4.4
✓
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1. REGULATION CHECKLIST
Regulation (44 CFR 201.6 Local Mitigation Plans)
Location
in Plan
(section
and/or
page
number)
Met Not
Met
10. 11.
b. Is there a description
of each identified
hazard’s overall
vulnerability (structures,
systems, populations, or
other community assets
defined by the
community that are
identified as being
susceptible to damage
and loss from hazard
events) for each
jurisdiction?
Section 4.4
✓
B4. Does the plan address NFIP insured structures within the jurisdiction that have been repetitively damaged by floods? (Requirement §201.6(c)(2)(ii))
Section 5.1
Section 5.2 ✓
ELEMENT B: REQUIRED REVISIONS
ELEMENT C. MITIGATION STRATEGY
12. C1. Does the plan document
each jurisdiction’s existing
authorities, policies, programs and
resources and its ability to expand on
and improve these existing policies
and programs? (Requirement
§201.6(c)(3))
a. Does the plan
document each
jurisdiction’s existing
authorities, policies,
programs and
resources?
Section 6.1
✓
b. Does the plan
document each
jurisdiction’s ability to
expand on and improve
these existing policies
and programs?
Section
6.1-6.4
Pages:
47,51,52
✓
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1. REGULATION CHECKLIST
Regulation (44 CFR 201.6 Local Mitigation Plans)
Location
in Plan
(section
and/or
page
number)
Met Not
Met
C2. Does the plan address each jurisdiction’s participation in the NFIP and continued compliance with NFIP requirements, as appropriate? (Requirement §201.6(c)(3)(ii))
Section 5.2
✓
C3. Does the plan include goals to reduce/avoid long-term vulnerabilities to the identified hazards? (Requirement §201.6(c)(3)(i))
Section 6.1
Section 7.1
Section 7.2
✓
13. C4. Does the plan identify
and analyze a comprehensive range
of specific mitigation actions and
projects for each jurisdiction being
considered to reduce the effects of
hazards, with emphasis on new and
existing buildings and infrastructure?
(Requirement §201.6(c)(3)(ii))
a. Does the plan identify
and analyze a
comprehensive range
(different alternatives)
of specific mitigation
actions and projects to
reduce the impacts from
hazards?
Section 7.2
✓
b. Does the plan identify
mitigation actions for
every hazard posing a
threat to each
participating
jurisdiction?
Section 7.2
Pages:
55, 56
✓
c. Do the identified
mitigation actions and
projects have an
emphasis on new and
existing buildings and
infrastructure?
Section 7.2
Section 7.4 ✓
14. C5. Does the plan contain an
action plan that describes how the
actions identified will be prioritized
(including cost benefit review),
implemented, and administered by
a. Does the plan explain
how the mitigation
actions and projects will
be prioritized (including
cost benefit review)?
Section 7.4
✓
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1. REGULATION CHECKLIST
Regulation (44 CFR 201.6 Local Mitigation Plans)
Location
in Plan
(section
and/or
page
number)
Met Not
Met
each jurisdiction? (Requirement
§201.6(c)(3)(iv)); (Requirement
§201.6(c)(3)(iii))
b. Does the plan identify
the position, office,
department, or agency
responsible for
implementing and
administering the
action/project, potential
funding sources and
expected timeframes for
completion?
Section 7.2
Pages:
55-56 ✓
C6. Does the plan describe a
process by which local
governments will integrate the
requirements of the mitigation
plan into other planning
mechanisms, such as
comprehensive or capital
improvement plans, when
appropriate? (Requirement
§201.6(c)(4)(ii))
a. Does the plan identify
the local planning
mechanisms where
hazard mitigation
information and/or
actions may be
incorporated?
Section 6.1
Section 7.3
Section 9.0
✓
b. Does the plan describe
each community’s
process to integrate the
data, information, and
hazard mitigation goals
and actions into other
planning mechanisms?
Section 9.0
✓
c. The updated plan must
explain how the
jurisdiction(s)
incorporated the
mitigation plan, when
appropriate, into other
planning mechanisms as
a demonstration of
progress in local hazard
mitigation efforts.
Section 9.0
✓
ELEMENT C: REQUIRED REVISIONS
14 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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1. REGULATION CHECKLIST
Regulation (44 CFR 201.6 Local Mitigation Plans)
Location
in Plan
(section
and/or
page
number)
Met Not
Met
ELEMENT D. PLAN REVIEW, EVALUATION, AND IMPLEMENTATION
(Applicable to plan updates only)
D1. Was the plan revised to reflect changes in development? (Requirement §201.6(d)(3))
Section 1.7
Pgs 14,15
D2. Was the plan revised to reflect progress in local mitigation efforts? (Requirement §201.6(d)(3))
Section 3.3
Pgs 21- 24
D3. Was the plan revised to reflect changes in priorities? (Requirement §201.6(d)(3))
Section 3.1
Section 3.2 ✓
ELEMENT D: REQUIRED REVISIONS
ELEMENT E. PLAN ADOPTION
E1. Does the plan include documentation that the plan has been formally adopted by the governing body of the jurisdiction requesting approval? (Requirement §201.6(c)(5))
E2. For multi-jurisdictional plans, has each jurisdiction requesting approval of the plan documented formal plan adoption?
(Requirement §201.6(c)(5))
ELEMENT E: REQUIRED REVISIONS
15 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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1. REGULATION CHECKLIST
Regulation (44 CFR 201.6 Local Mitigation Plans)
Location
in Plan
(section
and/or
page
number)
Met Not
Met
ELEMENT F. ADDITIONAL STATE REQUIREMENTS
(Optional for State Reviewers only; not to be completed by FEMA) F1.
F2.
ELEMENT F: REQUIRED REVISIONS
16 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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SECTION 2:
PLAN ASSESSMENT
INSTRUCTIONS: The purpose of this Plan Assessment is to offer the local community more comprehensive feedback to the community on the quality and utility of the plan in a narrative format. The Plan Assessment must be completed by FEMA.
The Assessment is an opportunity for FEMA to provide feedback and information to the community on: 1) suggested improvements to the plan; 2) specific sections in the plan where the community has gone above and beyond minimum requirements; 3) recommendations for plan implementation; and 4) ongoing partnership(s) and information on other FEMA programs, specifically Risk MAP and Hazard Mitigation Assistance programs.
The Plan Assessment is divided into two sections:
1) Plan Strengths and Opportunities for Improvement
2) Resources for Implementing Your Approved Plan
Plan Strengths and Opportunities for Improvement is organized according to the plan elements listed in the Regulation Checklist. Each element includes a series of italicized bulleted items that are suggested topics for consideration while evaluating plans, but it is not intended to be a comprehensive list. FEMA Mitigation Planners are not required to answer each bullet item, and should use them as a guide to paraphrase their own written assessment (2-3 sentences) of each element.
The Plan assessment must not reiterate the required revisions from the Regulation Checklist or be regulatory in nature, and should be open-ended and to provide the community with suggestions for improvements or recommended revisions. The recommended revisions are suggestions for improvement and are not required to be made for the plan to meet Federal regulatory requirements. The italicized text should be deleted once FEMA has added comments regarding strengths of the plan and potential improvements for future plan revisions. It is recommended that the Plan Assessment be a short synopsis of the overall strengths and weaknesses of the Plan (no longer than two pages), rather than a complete recap section by section.
Resources for Implementing Your Approved Plan provides a place for FEMA to offer information, data sources and general suggestions on the overall plan implementation and maintenance process. Information on other possible sources of assistance including, but not limited to, existing publications, grant funding or training opportunities, can be provided. States may add state and local resources, if available.
17 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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A. Plan Strengths and Opportunities for Improvement
This section provides a discussion of the strengths of the plan document and identifies areas where these could be improved beyond minimum requirements.
Element A: Planning Process
Strengths:
1)
2)
3)
Opportunities for Improvement:
1)
2)
3)
(Delete italicized text below after filling in strengths and opportunities above.) How does the Plan go above and beyond minimum requirements to document the planning process with respect to:
• Involvement of stakeholders (elected officials/decision makers, plan implementers, business owners, academic institutions, utility companies, water/sanitation districts, etc.); • Involvement of Planning, Emergency Management, Public Works Departments or other planning agencies (i.e., regional planning councils);
• Diverse methods of participation (meetings, surveys, online, etc.); and • Reflective of an open and inclusive public involvement process.
18 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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Element B: Hazard Identification and Risk Assessment
Strengths:
1)
2)
3)
Opportunities for Improvement:
1)
2)
3)
(Delete italicized text below after filling in strengths and opportunities above.) In addition to the requirements listed in the Regulation Checklist, 44 CFR 201.6 Local Mitigation Plans identifies additional elements that should be included as part of a plan’s risk assessment. The plan should describe vulnerability in terms of:
1) A general description of land uses and future development trends within the community so that mitigation options can be considered in future land use decisions; 2) The types and numbers of existing and future buildings, infrastructure, and critical facilities located in the identified hazard areas; and
3) A description of potential dollar losses to vulnerable structures, and a description of the methodology used to prepare the estimate.
How does the Plan go above and beyond minimum requirements to document the Hazard Identification and Risk Assessment with respect to:
• Use of best available data (flood maps, HAZUS, flood studies) to describe significant hazards;
• Communication of risk on people, property, and infrastructure to the public (through tables, charts, maps, photos, etc.);
• Incorporation of techniques and methodologies to estimate dollar losses to vulnerable structures;
• Incorporation of Risk MAP products (i.e., depth grids, Flood Risk Report, Changes Since Last FIRM, Areas of Mitigation Interest, etc.); and
• Identification of any data gaps that can be filled as new data became available.
19 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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Element C: Mitigation Strategy
Strengths:
1)
2)
3)
Opportunities for Improvement:
1)
2)
3)
(Delete italicized text below after filling in strengths and opportunities above.) How does the Plan go above and beyond minimum requirements to document the Mitigation Strategy with respect to:
• Key problems identified in, and linkages to, the vulnerability assessment; • Serving as a blueprint for reducing potential losses identified in the Hazard Identification and Risk Assessment;
• Plan content flow from the risk assessment (problem identification) to goal setting to mitigation action development;
• An understanding of mitigation principles (diversity of actions that include structural projects, preventative measures, outreach activities, property protection measures, postdisaster actions, etc); • Specific mitigation actions for each participating jurisdictions that reflects their unique risks and capabilities;
• Integration of mitigation actions with existing local authorities, policies, programs, and resources; and
• Discussion of existing programs (including the NFIP), plans, and policies that could be used to implement mitigation, as well as document past projects.
20 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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Element D: Plan Update, Evaluation, and Implementation (Plan Updates Only) Strengths:
1)
2)
3)
Opportunities for Improvement:
1)
2)
3)
(Delete italicized text below after filling in strengths and opportunities above.) How does the Plan go above and beyond minimum requirements to document the 5-year Evaluation and Implementation measures with respect to:
• Status of previously recommended mitigation actions;
• Identification of barriers or obstacles to successful implementation or completion of mitigation actions, along with possible solutions for overcoming risk; • Documentation of annual reviews and committee involvement; • Identification of a lead person to take ownership of, and champion the Plan; • Reducing risks from natural hazards and serving as a guide for decisions makers as they commit resources to reducing the effects of natural hazards; • An approach to evaluating future conditions (i.e. socio-economic, environmental, demographic, change in built environment etc.);
• Discussion of how changing conditions and opportunities could impact community resilience in the long term; and
• Discussion of how the mitigation goals and actions support the long-term community vision for increased resilience.
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B. Resources for Implementing and Updating Your Approved Plan This resource section is organized into three categories:
1) Guidance and Resources
2) Training Topics and Courses
3) Funding Sources
Guidance and Resources
Local Mitigation Planning Handbook
https://www.fema.gov/media-library/assets/documents/31598 Beyond the Basics
http://mitigationguide.org/
Mitigation Ideas
https://www.fema.gov/media-library/assets/documents/30627 Plan Integration: Linking Local Planning Efforts
https://www.fema.gov/media-library/assets/documents/108893 Integrating Disaster Data into Hazard Mitigation Planning https://www.fema.gov/media-library/assets/documents/103486 Integrating Historic Property and Cultural Resource Considerations into Hazard Mitigation Planning
https://www.fema.gov/ar/media-library/assets/documents/4317 Community Rating System User Manual
https://www.fema.gov/media-library/assets/documents/8768 U.S. Climate Resilient Toolkit
https://toolkit.climate.gov/
2014 National Climate Assessment
http://nca2014.globalchange.gov/
22 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation
http://ipcc-wg2.gov/SREX/images/uploads/SREX-All_FINAL.pdf FY15 Hazard Mitigation Assistance Unified Guidance
https://www.fema.gov/media-library/assets/documents/103279 Climate Resilient Mitigation Activities for Hazard Mitigation Assistance https://www.fema.gov/media-library/assets/documents/110202 Training
More information at https://training.fema.gov/emi.aspx or through your State Training Officer Mitigation Planning
IS-318 Mitigation Planning for Local and Tribal Communities https://training.fema.gov/is/courseoverview.aspx?code=is-318 IS-393 Introduction to Hazard Mitigation
https://training.fema.gov/is/courseoverview.aspx?code=is-393.a G-318 Preparing and Reviewing Local Plans
G-393 Mitigation for Emergency Managers
Hazard Mitigation Assistance (HMA) Grant Programs
IS-212.b Introduction to Unified HMA
http://www.training.fema.gov/is/courseoverview.aspx?code=IS-212.b IS-277 Benefit Cost Analysis Entry Level
http://www.training.fema.gov/is/courseoverview.aspx?code=IS-277 E-212 HMA: Developing Quality Application Elements
E-213 HMA: Application Review and Evaluation
E-214 HMA: Project Implementation and Programmatic Closeout E-276 Benefit-Cost Analysis Entry Level
GIS and Hazus-MH
23 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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IS-922 Application of GIS for Emergency Management
http://www.training.fema.gov/is/courseoverview.aspx?code=IS-922 E-190 ArcGIS for Emergency Managers
E-296 Application of Hazus-MH for Risk Assessment
E-313 Basic Hazus-MH
Floodplain Management
E-273 Managing Floodplain Development through the NFIP
E-278 National Flood Insurance Program/ Community Rating System Potential Funding Sources
Hazard Mitigation Grant Program
POC: FEMA Region IX and State Hazard Mitigation Officer Website: https://www.fema.gov/hazard-mitigation-grant-program Pre-Disaster Mitigation Grant Program
POC: FEMA Region IX and State Hazard Mitigation Officer Website: https://www.fema.gov/pre-disaster-mitigation-grant-program Flood Mitigation Assistance Grant Program
POC: FEMA Region IX and State Hazard Mitigation Officer Website: https://www.fema.gov/flood-mitigation-assistance-grant-program Emergency Management Performance Grant Program
POC: FEMA Region IX
Website: https://www.fema.gov/emergency-management-performance-grant-program
Local Mitigation Plan Review Tool (FEMA, October 1, 2011) A-24 SECTION 3:
MULTI-JURISDICTIONAL SUMMARY SHEET
INSTRUCTIONS: For multi-jurisdictional plans, this summary sheet must be completed by listing each participating jurisdiction that is eligible to adopt the plan.
MULTI-JURISDICTION SUMMARY SHEET
# Jurisdiction Name Jurisdiction
Type
Eligible to
Adopt the
Plan?
Plan POC Email
1 2
3 4
5 6
7 8
9 1
0 1
1
Local Mitigation Plan Review Tool (FEMA, October 1, 2011) A-25
MULTI-JURISDICTION SUMMARY SHEET
# Jurisdiction Name Jurisdiction
Type
Eligible to
Adopt the
Plan?
Plan POC Email
1 2
1 3
1 4
1 5
26 CITY OF NORCO – LOCAL HAZARD MITIGATION PLAN
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SECTION 4:
HAZARD IDENTIFICATION AND RISK ASSESSMENT MATRIX (OPTIONAL) INSTRUCTIONS: This matrix can be used by the plan reviewer to help identify if all of the components of Element B have been met. List out natural hazard names that are identified in the plan in the column labeled “Hazards” and put a “Y” or “N” for each component of Element B.
HAZARD IDENTIFICATION AND RISK ASSESSMENT MATRIX
Hazard
Requirement Met? (Y/N)
Type Locat
ion
Exten
t
Previo
us
Occur
rence
s
Prob
abilit
y
Impac
ts
Vulne
rabilit
ies
U.S. Department of Homeland Security
FEMA Region 9
1111 Broadway, Suite 1200
Oakland, CA 94607-4052
www.fema.gov
January 2, 2024
Brian MacGavin
Program Director
County of Riverside Emergency Management Department
450 E Alessandro Blvd,
Riverside, CA 92508
Dear Brian MacGavin:
The County of Riverside Operational Area Multi-Jurisdictional Local Hazard Mitigation Plan 2023 has been amended to include the City of Norco as an official planning participant. This jurisdiction must submit an adoption resolution to FEMA in order to be considered fully approved.
FEMA’s approval of the County of Riverside Operational Area Multi-Jurisdictional Local Hazard Mitigation Plan 2023 remains for a period of five years from the original approval date of April 18, 2023 for all approved participants. An updated list of the status of current participating jurisdictions is enclosed with this letter.
Prior to April 18, 2028, Riverside County and all participating jurisdictions are required to review and revise the plan to reflect changes in development, progress in local mitigation efforts, and changes in priorities, and resubmit it for approval in order to continue to be eligible for mitigation project grant funding.
The continued approval of this plan ensures Riverside County and all participating jurisdictions’ continued eligibility for project grants under FEMA’s Hazard Mitigation Assistance programs, including the Hazard Mitigation Grant Program, Building Resilient Infrastructure and Communities Program, and Flood Mitigation Assistance Program. All requests for funding, however, will be evaluated individually according to the specific eligibility, and other requirements of the particular program under which applications are submitted.
If you have any questions regarding the planning or review processes, please contact the FEMA Region 9 Hazard Mitigation Planning Team at [email protected].
Sincerely,
for Alison Kearns
Planning and Implementation Branch Chief
Mitigation Division
FEMA Region 9
Riverside County Hazard Mitigation Plan Amendment Notice January 2, 2024
Enclosures (2)
Riverside County Annex Review Tool, dated January 2, 2024 Status of Participating Jurisdictions, dated January 2, 2024 cc: Ron Miller, Mitigation Quality Assurance Division Chief, California Governor’s Office of Emergency Services
Robyn Fennig, Planning Division Chief, California Governor’s Office of Emergency Services
Victoria LaMar-Haas, Hazard Mitigation Planning Chief, California Governor’s Office of Emergency Services
Riverside County Hazard Mitigation Plan Amendment Notice January 2, 2024
Status of Participating Jurisdictions as of January 2, 2024 Jurisdictions – Adopted and Approved
# Jurisdiction Date of Adoption
1 Riverside County April 4, 2023
2 City of Eastvale October 25, 2023
3 City of Jurupa Valley October 19, 2023
4 City of Moreno Valley May 16, 2023
5 City of Temecula July 11, 2023
6 Beaumont Unified School District September 7, 2023
7 Rancho California Water District November 9, 2023
Jurisdictions – Approvable Pending Adoption
# Jurisdiction
1 City of Beaumont
2 City of Norco
3 City of Palm Springs
4 City of Wildomar
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.K.
To: Honorable Mayor and City Council Members
From: Lori Sassoon, City Manager
Prepared By: Cindy Balderas, Human Resources Manager
Department: Human Resources
SUBJECT:
Consideration of Approval of California Public Employees’ Retirement System (CalPERS) Resolution Fixing the Employer Contribution Under the Public Employees' Medical and Hospital Care Act (PEMHCA) at an Equal Amount for Employees and Annuitants
RECOMMENDATION:
Approval of Resolution No. 2024-03 Fixing the Employer Contribution Under the Public Employees' Medical and Hospital Care Act (PEMHCA) at an Equal Amount for Employees and Annuitants.
SUMMARY:
This action will restructure the payment of medical benefits for Norco General Employees Association; Middle Management, Professional, and Confidential Employees; and Management Employees, and retirees from those groups that qualify to participate in the CalPERS medical insurance program (“annuitants”) in order to minimize future retiree medical costs for new employees hired after July 1, 2023.
BACKGROUND:
The City of Norco (City) participates in the CalPERS medical insurance program through PEMHCA. PEMHCA and the related sections of the California Code of Regulations (CCR) set out the rules that a contracting agency (as well as participating employees and annuitants) must adhere to, including, but not limited to eligibility requirements, enrollment deadlines, minimum and equal contribution rules, etc.. The resolution is the mechanism by which an agency elects to become subject to PEMHCA and designates its PEMHCA contribution amount for purposes of the PEMHCA equal and minimum contribution rules. CalPERS requires that employers contribute equal PEMHCA amounts on behalf of participating employees and annuitants. The 2024 minimum is $157 per month but changes yearly.
As part of the City's focus on long-term fiscal sustainability, the City has examined ways to reduce OPEB liabilities, primarily retiree health care, by limiting the benefits for future hires.
In accordance with that goal, in 2023, the City Council approved Resolutions with the Norco General Employees Association (Resolution No. 2023-43), Middle Management, Professional, and Confidential Employees (Resolution No. 2023-46), and Management Employees (Resolution No. 2023-45) to change the City’s designated PEMHCA contribution to the PEMHCA minimum (2024 - $157 per month). However, the total amount of City-paid health contributions that current employees and retirees receive will not be impacted. The City will continue to make the same contributions for active employees as it does now. The portion of the total contribution designated as the PEMHCA contribution is all that is changing, and it will not have a financial impact on them. Current retirees (annuitants) will be reimbursed the monetary difference between the PEMHCA minimum and their current benefit via a Health Retirement Arrangement (HRA). This change will have no financial impact on them.
An HRA is an employer-sponsored plan where employer funds are deposited to reimburse medical expenses. Here, the HRA reimburses retirees for the portion of the CalPERS medical insurance premiums that will not be paid by the City directly to CalPERS (anything above the currently statutory minimum of $157 per month).
Retirees’ monthly benefit checks are reduced by the amount of their premium that is not paid directly to CalPERS by the City. The HRA reimbursement keeps these retirees whole, so that these changes do not have a negative financial impact on them.
For example, a retiree that is enrolled in a Kaiser two-party plan and is 100% covered is now going to pay the difference between Kaiser two-party monthly premium and the PEMHCA monthly minimum ($1,730.82 - $157 = $1,573.82) via withholding from their CalPERS benefit checks. In turn, the HRA will issue retirees reimbursements for the paid amount on a monthly basis at the beginning of each month via direct deposit of $1,573.82.
These changes will allow the City to implement a new retiree medical benefit tier for new hires hired after July 1, 2023. New hires in the new tier will only be able to receive the PEMHCA minimum at their retirement. In the long term, reducing the health retirement contributions to PEMHCA minimum will result in a reduction of the Other Post Employment Benefits (OPEB) liability for funding the health benefits that employees receive as they retire. Actuaries use economic and demographic data to determine the current value of OPEB liabilities.
FISCAL IMPACT:
In the long term, reducing the health retirement contributions to PEMHCA minimum should result in a reduction of the Other Post Employment Benefits (OPEB) liability for funding the health benefits that employees receive as they retire. There is a minimal cost for the administration of the HRA plan that is estimated at $5,000 annually.
RELATIONSHIP TO STRATEGIC PLAN:
This action is consistent with Strategic Plan Direction No. 2 - Human Capital: Build a sustainable workforce to meet the needs of all stakeholders.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Resolution 2024-03 PEMHCA
RESOLUTION NO. 2024-03
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, FIXING THE EMPLOYER CONTRIBUTION UNDER THE
PUBLIC EMPLOYEES’ MEDICAL HOSPITAL CARE ACT AT AN EQUAL
AMOUNT FOR EMPLOYEES AND ANNUITANTS
WHEREAS, City of Norco is a contracting agency under Government Code Section 22920 and subject to the Public Employees’ Medical and Hospital Act (the “Act”); and
WHEREAS, Government Code Section 22892(a) provides that a contracting agency subject to Act shall fix the amount of the employer contribution by resolution; and WHEREAS, Government Code Section 22892(b) provides that the employer contribution shall be an equal amount for both employees and annuitants, but may not be less than the amount prescribed by Section 22892(b) of the Act; NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Norco at a regular meeting held on January 17, 2024, approved:
1. That the employer contribution for each employee or annuitant shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of family members, in a health benefits plan up to a maximum of:
plus administrative fees and Contingency Reserve Fund assessments; and
2. City of Norco has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above; and
3. That the participation of the employees and annuitants of City of Norco shall be subject to determination of its status as an “agency or instrumentality of the state or political subdivision of a State” that is eligible to participate in a governmental plan within the meaning of Section 414(d) of the Internal Revenue Code, upon publication of final Regulations pursuant to such Section. If it is determined that City of Norco would not qualify as an agency or instrumentality of the state or political subdivision of a State under such final Regulations, CalPERS may be obligated, and reserves the right to terminate the health coverage of all participants of the employer; and
Medical Group Monthly Employer Health Contribution
Self Self+1 Self+Family
001 Miscellaneous Up to a maximum of the PEMHCA Minimum 002 Safety Up to a maximum of the PEMHCA Minimum
003 Management Up to a maximum of the PEMHCA Minimum
004 Mid-Management Up to a maximum of the PEMHCA Minimum 005 General Employees Up to a maximum of the PEMHCA Minimum 006 Public Works/Parks No Change
008 City Council No Change
Resolution No. 2024-03
January 17, 2024
4. That the executive body appoint and direct, and it does hereby appoint and direct, City Manager to file with the Board a verified copy of this resolution, and to perform on behalf of City of Norco all functions required of it under the Act; and
5. That coverage under the Act be effective on March 1, 2024.
PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on January 17, 2024.
__________________________
Kevin Bash, Mayor
City of Norco, California
ATTEST:
________________________
Dana Roa, CMC, City Clerk
City of Norco, California
Resolution No. 2024-03
January 17, 2024
I, DANA ROA, CMC, City Clerk of the City of Norco, California do hereby certify that the foregoing Resolution was introduced and adopted by the City Council of the City of Norco, California, at a regular meeting held on January 17, 2024 by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California on January 17, 2024.
________________________
Dana Roa, CMC, City Clerk
City of Norco, California
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.L.
To: Honorable Mayor and City Council Members
From: Amanda Hamilton, Facilities and Maintenance
Director
Prepared By: Robin Shepard, Executive Secretary
Department: Facilities and Maintenance
SUBJECT:
Acceptance of the Sundance Park Boundary Wall Restoration Project as Complete (Project No. 54410.6)
RECOMMENDATION:
Accept the Sundance Park Boundary Wall Restoration Project as complete and authorize the City Clerk to file a Notice of Completion with the County of Riverside.
SUMMARY:
The scope of work for the Sundance Park Boundary Wall Restoration Project included the repair of the westerly section of the block wall and foundation at Sundance Park.
The existing northern block wall and foundation was removed and replaced with a 6' high chain link fence with a privacy screen as noted in Attachment A.
BACKGROUND:
On November 1, 2023, the City Council awarded a contract to Act 1 Construction, Inc. for the Sundance Park Boundary Wall Restoration Project in the amount of $92,502 with City Manager approval for change orders up to 10 percent of the original contract amount. Act 1 Construction, Inc. completed their scope of work for the project at a total cost of $95,365 due to the use of privacy slats instead of screening on the chain link fence.
The work has been inspected by the Parks Superintendent along with the Facilities and Maintenance Director and found to be in full conformance with the plans and specifications on the contract documents. Staff is recommending that the City Council accept the work performed by Act 1 Construction, Inc. as complete, and authorize the City Clerk to record the Notice of Completion with the County Recorder’s Office.
FISCAL IMPACT:
Not applicable for this item.
RELATIONSHIP TO STRATEGIC PLAN:
Strategic Directive No. 5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Attachment A - Photos
Sundance Park Boundary Wall Restoration Project
Before
After
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.M.
To: Honorable Mayor and City Council Members
From: Chad Blais, Public Works Director
Prepared By: Sam Nelson, Deputy City Engineer
Department: Public Works
SUBJECT:
Change Order Request for North Drive & Grulla Court Storm Drain Project (Design) RECOMMENDATION:
Approve Change Order Request in the amount of $11,005 for the North Drive & Grulla Court Storm Drain Project (Design)
SUMMARY:
A change order is being requested, in the amount of $11,005, for Armstrong & Brooks for additional design efforts and modifications related to the North Drive & Grulla Court Storm Drain Project.
BACKGROUND:
On September 15, 2021 the City Council awarded a design contract to Armstrong & Brooks Consulting Engineers in the amount of $82,760 to design the North Drive & Grulla Court Storm Drain Project. The proposed design entailed approximately 3,000 linear feet of various size reinforced concrete pipe within North Drive, Viceroy Avenue, Pinto Place and Grulla Court.
During the design process it was determined that the North Drive & Grulla storm drain 42" diameter mainline would need to be installed directly adjacent to the proposed new Grulla Sewer Lift Station project. It was determined by staff that the adjacent portion of the storm drain project would need to be constructed concurrently with the lift station project. The proposed change order reflects the additional efforts required by Armstrong & Brooks to prepare a phased set of storm drain improvement plans and specification and collaborate with the engineering firm preparing the lift station plans. The additional change order amount of $11,005 will result in an overall design cost of $93,765.
Armstrong & Brooks has provided staff with the change order request in the amount of $11,005 (see Design Change Order). Staff has reviewed the change order and has determined the proposed cost to be reasonable.
FISCAL IMPACT:
The North Drive & Grulla Court Storm Drain Project was approved as a Capital Improvement Project in the Storm Drain Fund for fiscal year 2021-22. The Fiscal Year 2023-24 budget is $1,803,245 ($1,713,245 for construction and $90,000 for design) - Account No's. 129.935.41380 & 129.935.41380.30). The project has sufficient funds for the change order request.
RELATIONSHIP TO STRATEGIC PLAN:
Authorizing approval of this professional design services change order is consistent with Strategic Direction No. 5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
FEE ADDENDUM NO 1 JN 1980I GRULLA
Principal Civil Engineer Designer Draftsperson Clerical/Travel 2-Man Survey Sub-Consultant Fee Engineering Fee $ 16 185 $ 115 0 $ 95 $ $ 185 70 $ W/10% Mark-Up
121.1980I FINAL ENGINEERING
Task 999.1 Phasing Plans, Specifications and Estimates
1.1 Review Grulla Lift Station Replacement Plans 4 $ 640 - $
1.2 Demolition & Phasing Details 8 12 16 $ 4,180 - $ 1.3 Refine Quantitiy & Cost Estimates, Specifications 46 $ 1,330 - $ 1.4 Catch Basin & Lateral "A", Junction Structure 468 $ 2,090 - $ 1.5 Additional Project Coordination 24 $ 1,010 - $ Sub-Consultant Sub-Total - $ $ -
SUB-TOTAL PHASING PLANS, SPECIFICATIONS AND ESTIMATES $ 9,250 Task 999.2 Additional Field Topographic Survey
1.1 Field Topographic Survey
Re-Establish Horiz. & Vertical Control 2 $ 370 - $ Site Clearing 13 $ 625 - $ Field Topographic Survey 12 $ 530 - $
1.2 Compilation of Field Topographic Survey 2 $ 230 - $ Sub-Consultant Sub-Total - $ $ -
SUB-TOTAL ADDITIONAL FIELD TOPOGRAPHIC SURVEY $ 1,755
SUB-TOTAL ENGINEERING FEE ESTIMATE $ 11,005
JN 121.1980I-Grulla Storm Drain
ADDENDUM NO. 1
Sheet 1 of 1
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.N.
To: Honorable Mayor and City Council Members
From: Chad Blais, Public Works Director
Prepared By: Sam Nelson, Deputy City Engineer
Department: Public Works
SUBJECT:
Acceptance of the Citywide FY 22-23 Slurry Seal Project as Complete RECOMMENDATION:
Accept the Citywide FY 2022-23 Slurry Seal Project as complete and authorize the City Clerk to file the Notice of Completion with the County of Riverside.
SUMMARY:
The Citywide FY 2022-23 Slurry Seal Project consisted of asphalt slurry and asphalt replacement improvements on various City streets.
BACKGROUND:
On April 5, 2023 the City Council awarded a contract to All American Asphalt in the amount of $224,786 and authorized the City Manager to approve contract change orders up to 10% for the Citywide FY 2022-23 Slurry Seal Project. The final contract amount paid to All American Asphalt was $197,694. The decrease in the amount paid was primarily due to the reduction of full depth asphalt replacements for the project.
All American Asphalt has completed all the work required to the satisfaction of the City Engineer and a Notice of Completion has been prepared for recordation.
FISCAL IMPACT:
There is no fiscal impact for this item.
RELATIONSHIP TO STRATEGIC PLAN:
The approval of Notice of Completion is consistent with Strategic Direction #5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney
City Council
STAFF REPORT
Date: January 17, 2024 Agenda Item:
3.O.
To: Honorable Mayor and City Council Members
From: Lisette Free, Finance Director
Prepared By: Julie Houser, Admin Analyst
Department: Finance
SUBJECT:
Report on Fiscal Year 2022-23 Audited Financial Reports RECOMMENDATION:
Receive and file the Fiscal Year 2022-23 Audited Financial Reports.
SUMMARY:
The City’s Annual Comprehensive Financial Report (ACFR) and other related reports for the fiscal year-ended June 30, 2023 are provided to the City Council for review. The audited reports received an unqualified/clean opinion from the City’s independent auditors.
BACKGROUND:
The City’s independent auditors, CliftonLasronAllen LLP, have completed the year-end annual independent audit of City funds and accounts for FY 2022-23. The City’s annual financial reports were prepared in accordance with Generally Accepted Accounting Principles (GAAP) and comply with other rules and regulations applicable to government entities. Transmitted herewith are the following financial and related reports (Attachments 1-6) for the fiscal year ended June 30, 2023:
1.Annual Comprehensive Financial Report
2.Auditors’ Audit Committee Letter to the City Council
3.Auditors’ Report on Internal Control over Financial Reporting and on Compliance
4.Auditors’ Report on Appropriations Limit Calculation
5.Auditors' Single Audit Report
6.Measure R Transactions and Use Tax Fund Financial Statements The Measure R Citizens' Oversight Committee will review the Measure R Financial Statements at their January 17, 2024 meeting prior to the City Council Meeting.
FISCAL IMPACT:
There is no fiscal impact for this item.
RELATIONSHIP TO STRATEGIC PLAN:
The FY 2022-23 Audited Financial Reports and auditing processes are consistent with Strategic Direction #3 - Economic Development and Financial Stability: Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
City of Norco FY 23 Financial Statements
City of Norco Governance Communication FY 23
City of Norco GAS Letter FY 23
Norco GANN AUP Report FY 23
Single Audit FY 23
City of Norco Measure R FY 2022-23 Financial Statements
CITY OF NORCO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2023
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CITY OF NORCO, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL I
ORGANIZATION CHART IX
DIRECTORY OF CITY OFFICIALS X
GFOA CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL
REPORTING XI
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENTS’ DISCUSSION AND ANALYSIS 7
FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 23
STATEMENT OF ACTIVITIES 24
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS
BALANCE SHEET 27
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION 28
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 29
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 30
PROPRIETARY FUNDS
STATEMENT OF NET POSITION 31
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 33
STATEMENT OF CASH FLOWS 34
CITY OF NORCO, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION 36
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 37
NOTES TO FINANCIAL STATEMENTS 41
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY 89
SCHEDULE OF CONTRIBUTIONS – DEFINED BENEFIT PENSION PLANS 91
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS 93
SCHEDULE OF CONTRIBUTIONS – OPEB PLAN 94
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND 95
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 96
INDIVIDUAL FUND SCHEDULES AND COMBINING FINANCIAL
STATEMENTS
COMBINING NONMAJOR GOVERNMENTAL FUNDS
NONMAJOR GOVERNMENTAL FUND DESCRIPTIONS 101
COMBINING BALANCE SHEET 104
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 110
NONMAJOR SCHEDULES OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL 117
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND 118
COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE
FUND 119
GAS TAX SPECIAL REVENUE FUND 120
CITY OF NORCO, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
SB1 ROAD MAINTENANCE REHABILITATION SPECIAL REVENUE
FUND 121
MEASURE A SPECIAL REVENUE FUND 122
NPDES SPECIAL REVENUE FUND 123
AIR QUALITY IMPROVEMENT TRUST SPECIAL REVENUE FUND 124
SUPPLEMENTAL LAW ENFORCEMENT BLOCK GRANT SPECIAL
REVENUE FUND 125
LANDSCAPE MAINTENANCE DISTRICT #1 SPECIAL REVENUE
FUND 126
LANDSCAPE MAINTENANCE DISTRICT #2 SPECIAL REVENUE
FUND 127
LANDSCAPE MAINTENANCE DISTRICT #3 SPECIAL REVENUE
FUND 128
LANDSCAPE MAINTENANCE DISTRICT #4 SPECIAL REVENUE
FUND 129
LANDSCAPE MAINTENANCE DISTRICT #5 SPECIAL REVENUE
FUND 130
AMERICAN RESCUE PLAN ACT SPECIAL REVENUE FUND 131
STORM DRAIN CAPITAL PROJECTS FUND 132
GENERAL GOVERNMENT IMPROVEMENT CAPITAL PROJECTS
FUND 133
FIRE IMPROVEMENT CAPITAL PROJECTS FUND 134
TRAILS IMPROVEMENT CAPITAL PROJECTS FUND 135
PARK IMPROVEMENT CAPITAL PROJECTS FUND 136
PUBLIC MEETING CAPITAL PROJECTS FUND 137
STREET IMPROVEMENT CAPITAL PROJECTS FUND 138
ANIMAL CONTROL CAPITAL PROJECTS FUND 139
INTERNAL SERVICE FUNDS
INTERNAL SERVICE FUNDS DESCRIPTIONS 143
CITY OF NORCO, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
COMBINING STATEMENT OF NET POSITION 144
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION 145
COMBINING STATEMENT OF CASH FLOWS 146
FIDUCIARY FUNDS
CUSTODIAL FUNDS DESCRIPTIONS 150
COMBINING STATEMENT OF FIDUCIARY NET POSITION 151
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 152 STATISTICAL SECTION (NOT COVERED BY INDEPENDENT AUDITORS’
REPORT)
CONTENTS 155
NET POSITION BY COMPONENT 156
CHANGES IN NET POSITION 158
FUND BALANCES GOVERNMENTAL FUNDS 162
CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS 164
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY 166 DIRECT AND OVERLAPPING PROPERTY TAX RATES 167
PRINCIPAL PROPERTY TAX PAYERS 168
PROPERTY TAX LEVIES AND COLLECTIONS 169
RATIOS OF OUTSTANDING DEBT BY TYPE 170
RATIOS OF GENERAL BONDED DEBT OUTSTANDING 172
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 173 LEGAL DEBT MARGIN INFORMATION 174
PLEDGED-REVENUE COVERAGE 176
DEMOGRAPHIC AND ECONOMIC STATISTICS 178
PRINCIPAL EMPLOYERS 179
CITY OF NORCO, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY
FUNCTION/PROGRAM 180
OPERATING INDICATORS BY FUNCTION/PROGRAM 182
CAPITAL ASSETS BY FUNCTION/PROGRAM 184
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(i)
November 30, 2023
To the Honorable Mayor, Members of the City Council, and Citizens of the City of Norco, California:
In accordance with the City’s Municipal Code, we hereby present to you the City of Norco (City) Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ended June 30, 2023 (FY 2023). This report provides a comprehensive view of the results of the City’s financial activities and financial position for FY 2023.
The basic financial statements have been presented in conformity with Generally Accepted Accounting Principles (GAAP) and audited in accordance with Generally Accepted Auditing Standards (GAAS) by a firm of licensed independent Certified Public Accountants.
The ACFR consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all information presented in this report. To provide a reasonable basis for making these representations, management has implemented a comprehensive internal control framework that is designed to protect the City’s assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. The City’s internal control procedures are established and operates on the principle that the cost of internal controls should not outweigh their benefits. As a result, the City’s internal control systems have been designed to provide reasonable rather than absolute assurance that the financial statements will be free of any material misstatements. As management, we assert that, to the best of our knowledge and belief, these financial reports are complete and reliable in all material respects.
Management also recognizes that the internal control environment changes over time due to changes in operation or the personnel performing various duties. As a result, the internal control environment is continuously being reviewed to ensure that adequate controls still exist within the City to achieve the City’s objectives.
CliftonLarsonAllen LLP, a firm of independent licensed Certified Public Accountants, has audited the City’s basic financial statements. The goal of an independent audit is to provide reasonable assurance that the financial statements of the City for the Fiscal Year ended June 30, 2023, are free of any material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures on the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall presentation of the financial statements. Based upon their audit, the independent auditors concluded that there was a reasonable basis for rendering an unqualified (clean) opinion that the City’s financial statements for the Fiscal Year ended June 30, 2023, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the Financial Section of this ACFR.
The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special requirements of federal grantor agencies under the Single Audit Act Amendments of 1996 and related Office of Management and Budget (OMB) Circular A-133. Under the Single Audit Act, the independent auditor is required to report not only on fair presentation of financial statements, but also on the City’s internal controls and compliance with legal requirements, with emphasis on internal controls and legal requirements involving the administration of federal awards. For the Fiscal Year ended June 30, 2023, the City did expend over $750,000 in federal grants and therefore, did meet the threshold set by the OMB for a Single Audit. Consequently, the independent auditors will issue a separate Single Audit Report.
(ii)
GAAP also requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management Discussion and Analysis (MD&A). This transmittal letter which includes forward looking statements is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the independent auditors’ report.
Profile of the City of Norco, California
The City of Norco, California was incorporated as a general law City on December 28, 1964, and is located in southwestern Riverside County (part of the Inland Empire), approximately 45 miles east of Los Angeles. The Inland Empire remains one of the top economic and population areas in the state with 2.1 million in civilian labor force and 2 million in civilian employment. According to the latest data from U.S. Labor Department, the unemployment rate of 5.0% in the Inland Empire was higher than the state’s unemployment rate of 4.6% and the national unemployment rate of 3.6%. The unemployment rate for the City of Norco as of June 2023 was 4.2%.
The area’s employment is heavily service oriented with key sectors responsible for the region’s employment and economic growth consisting of healthcare, logistics/ transportation, construction, professional services, leisure/hospitality, education, government, and manufacturing.
The region’s population growth slowed but remained positive. The growth rate is currently at .4% compared to .3% seen in prior year. The area’s population, which includes Riverside and San Bernardino Counties, is currently estimated to be 4.6 million, which exceeds the population of many states in the country. While the population of the region continues to grow at a rate faster than the state, the population of the City of Norco has remained stable, with no change from January 2022 to January 2023. Since 2012, however, the City’s population has declined by 3.4%, likely due rising home values becoming a barrier to housing for young families. The City limits cover an area of approximately 15 square miles, with a current permanent population of approximately 25,000 according to the most recent data as of January 2023 from the State of California, Department of Finance. Norco is strategically located with convenient access to the major interstate highways I-15, I-10, and State Routes 60 and 91, as well as Ontario International Airport (ONT).
Norco is proud of its animal-keeping and equestrian-oriented community, and has trademarked and branded itself as “Horsetown USA.” Residents enjoy over 168 acres of parkland, over 100 miles of pedestrian and equestrian trails and more than 100 miles of streets. Most residential properties are zoned for animal-keeping with a minimum lot size of one-half acre. Within 30 miles, there are several public colleges and universities providing a wide range of education facilities and opportunities. These include University of California Riverside, University of California Irvine, California State University San Bernardino, California State University Fullerton, California Polytechnic University Pomona, Norco College, and several private universities. The City continues to enjoy a very stable and affluent population base with median household income of $129,544 which is 159% of County median.
The City operates under the Council-Manager form of government. Under this form of government, policy-making and legislative authority are vested in the City Council, which consists of five members elected at-large. The City Council is responsible for approving ordinances, adopting the budget, appointing committees and commissions, and hiring both the City Manager and City Attorney. The City Manager is responsible for carrying out the policies, resolutions and ordinances of the City Council, overseeing the day-to-day staff supervision and operations of the City, and appointing the heads of the various departments. The City Council is elected at-large on a non-partisan basis and each member serves a four-year term. The City Council selects a Mayor by a majority vote who serves a one-year term.
City Services: The City provides a full range of municipal services, including police and fire protection; construction and maintenance of streets, trails and other infrastructure; recreational/leisure activities and cultural events; sanitation and water services; street lighting; planning and zoning; and animal control services. Police protection is provided through a contract between the City and Riverside County Sheriff’s Department. Fire and emergency medical services are provided through a cooperative contract with CAL FIRE/Riverside County Fire Department.
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The Community Development Department is responsible for all current and advanced planning projects. Current planning projects include land use entitlement processes, such as site plans, variances, conditional use permits, zone changes and specific plans. Advanced planning consists of updates to the General Plan, annexations and inter-agency cooperation on transportation and habitat conservation issues.
The Community Services Department provides a variety of special community events and recreational classes throughout the year, along with operating sports programs, a City gymnasium, a full-service senior center, and a playschool program. As an equestrian community, the Animal Control Services division establishes standards for the care and health of animals; provides a safe haven animal shelter; sponsors adoption and placement of animals; and enforces laws to protect the well-being of all animals in the community. The Animal Shelter cares for more than 1,800 impounded animals annually.
Through the City Manager’s Office, the City provides economic development assistance to developers, real estate agents, appraisers and property owners; conducts business recruitment and outreach programs; provides business incentives; and collaborates with the Norco Chamber of Commerce to meet the business needs of the community. The primary purpose of the City’s economic development activities is to increase and diversify the City’s tax revenue base.
The City’s Public Works and Engineering Department provides a variety of services to residents and businesses.
Amongst these are production and distribution of potable and recycled water; collection and transmission of wastewater to regional treatment plants; construction and maintenance of pipelines; installation and maintenance of equestrian trails; and construction and maintenance of roadways, streets, storm drains and trails. The department also provides engineering plan check, permitting and inspection services for public and private construction projects.
The City’s Facilities and Maintenance Department is responsible for the upkeep and maintenance of all public buildings, and facilities. It creates a safe and secure environment for the public to utilize and is responsible for maintenance and operations, capital outlay, and improvements of facilities as well as scheduling and managing all events at the Ingalls Event Center which includes all grounds, two covered arena(s), Nellie Weaver Hall banquet room, Pikes Peak Park, The Barn, George Ingalls Veterans Memorial Plaza and adjacent parking lots. In addition, the Department maintains, improves and develops the over 900 acres of passive and active parkland.
Fire prevention, suppression, emergency medical services, hazmat response, emergency preparedness and police protection make up the City’s public safety divisions. Protecting the lives and property of the citizens of Norco is the primary mission of the public safety divisions. The City maintains a significant investment in equipment, facilities and personnel to preserve high quality rural lifestyle and safe neighborhoods for the community. The Information Technology Division, City Clerk’s Division, Human Resources Division, and Finance Department provide customer services to residents, business and other stakeholders; and support and administrative services to other departments.
Operating Budget Preparation and Control Process: The development of the City’s Fiscal Year Annual Operating Budget begins around January each year when staff begins a review of the current fiscal year revenues and expenditures for each Fund in order to determine appropriate mid-year budget adjustments. Result of from the mid-year budget review and adjustments generally serves as the starting point for the development next year’s annual Operating Budget. The City’s annual Operating Budget serves as the foundation for financial planning and expenditure control. Each City division is required to submit budget requests on an annual basis to the City Manager. These budget requests are reviewed by the City Manager and are used as the starting point for the development of a Proposed Budget. The City Manager presents a Proposed Budget to the City Council for review through staff and Council budget study sessions. At the completion of budget study sessions, the budget is required to be adopted by a majority vote of the City Council no later than June 30, the close of the City’s fiscal year. The appropriated budget is prepared by Fund, department and division. Within each department and division, the budget is further detailed by expenditure type and line items (e.g., salaries, benefits, services, supplies).
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After the budget is approved by the City Council, department heads can make transfers of appropriations within their department and Fund. Transfer of appropriations between departments within the same Fund requires the approval of the City Manager or Finance Director. Transfers of appropriations between funds require City Council authorization. Expenditures may not legally exceed appropriations at the Fund level. Budget-to-actual comparisons are provided in this report for each major individual governmental fund for which the appropriated annual budget was adopted by the City Council. As part of the budgetary control process, quarterly budget-toactual reports are presented to the City Council every quarter beginning with the end of the second quarter of the fiscal year. Access to real-time financial information is also available to all departments.
Factors Affecting Financial Condition
The financial condition of the City is affected by internal and external factors, including the local economy, state government actions, staffing and service levels, long term financial planning and other relevant financial policies.
Local Economy: While the City of Norco is largely zoned as an animal-keeping and equestrian-oriented community, it also has a robust balanced economy with commercial, retail and light industrial activities. The city is included in the Riverside-San Bernardino labor market area. This area is also known as the Inland Empire region, which is considered one of the most significant regional economies in the state. The City’s financial health is heavily dependent on its ability to generate sales tax and other revenues. According to various economic forecasts, the short-term outlook for business activity in the Inland Empire remains positive, despite inflationary pressures on basics such as food and fuel that are reducing household discretionary spending. Inflation has begun to ease as of this writing. While the economy has plenty of momentum and will keep growing in the near term, a recessionary cycle is possible, although not predicted at this time.
Hotel and leisure activities and their related revenues continue to rebound. In addition to increased leisure activities, increased revenues from Transient Occupancy Tax is anticipated, along with the opening of the Tru Hotel by Hilton in mid-2024. Retail sales and property values are projected to have slower growth over the near term. Sales tax is predicted to be generally flat during 2023, with only modest increase in auto sales and dining categories. Sales tax from new and used cars, as well as other vehicles such as trailers and boats, remains the dominant category in the City’s retail taxable sales. Real property values rose during the fiscal year and are projected to continue to slightly grow in FY 2023; however, due to rising interest rates, real property sales have slowed in FY 2023. The median sale price of Norco detached single-family homes from January through August 2023 was $780,750, a decrease of (-2.4%) from 2022's median sale price. The City anticipates that property tax revenue growth should continue to be modest in FY 2023.
Other key general revenues such as franchise fees, motor vehicle license fees and charges for services are expected to remain stable during FY 2023. Development impact fees fluctuate significantly with development activity, and therefore cannot be predicted with certainty given that the City is largely built out at this time. When collected, development impact fees are used to mitigate the impacts on additional infrastructure driven by new development, ensuring that new development pays its own way.
Long-Term Financial and Strategic Planning: In early FY 2022, City staff, elected and appointed officials to develop a new Strategic Plan. This plan focuses on economic development and financial resiliency; infrastructure improvements; communication and customers service; human capital; and public safety and wellness. The economic and financial resiliency component seeks to continue diversifying the City’s revenue base; develop and implement policies and procedures that are designed to further enhance and sustain the city’s current strong financial position.
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The City continues to focus on its previously-adopted Strategic Priorities. The Strategic Priorities consists of five strategic directions that are dedicated to fulling to ensure long-term financial resiliency; improve transparency and citizen engagement; diversify economic development; implement infrastructure projects; and enhance public safety. The following strategic action plans were initiated or completed during the fiscal year:
1. Measure R, the City’s 1% Transactions and Use Tax, is generating nearly $8 million per year for infrastructure and vital city services. Measure R is expected to generate similar amount in FY 2024.
2. The City continued to strengthen long-term financial resiliency by increasing General Fund’s (including Special Asset Revenue and Measure R Funds) – fund balance from $44.4 million to $49 million.
Excluding Special Asset Revenue and Measure R, fund balance of the General Fund grew by $3.2 million to $30 million. The financial position of the Water and Sewer Funds continued to improve as significant investments were made in water infrastructure and cash balance of the Sewer Fund increased to a record high of $17.8 million at the end of the fiscal year. In 2024, the City will be implementing a new Reserve Policy to use these unappropriated fund balances to create various designated reserves to meet the City’s long-term needs for infrastructure, economic development, and other key needs.
3. The City has implemented a Internal Revenue Code Section 115 post-employment benefit trust program to pre-fund Unfunded Accrued Liabilities for pensions through PARS. This analysis and recommendation of strategies to pre-fund pension UAL was approved by the City Council in early FY 2022. Contributions of $2.93 million have already been made to date, and additional contributions which will be based on the financial performance of the General Fund in future years.
4. The City continued with its Community Outreach and Engagement Program that supports the goal of implementing a public information program that provides all residents and stakeholders with timely and accurate information to strengthen community relations through transparency. The City’s Instagram account was launched this year, and this medium has already been extremely successful, with nearly 7,000 followers and strong engagement on the platform.
5. Current Memorandums of Understanding (MOU) and salary resolutions with all of the City’s employee bargaining units expired June 30, 2023. For the first time, multi-year agreements were reached with most bargaining groups to include modest salary increases and medical benefit contribution increases for the two-year terms of these agreements. These agreements also discontinue retiree medical benefits for future hires after July 1, 2023, other than the mandatory minimum retiree health contribution required by PEMCHA under state law. This change is expected to significantly reduce the City’s OPEB liability over time. One bargaining group has not yet reached agreement with the City on a successor MOU, and negotiations with that group continue.
6. During FY 2021, the City Council approved a five-year extension of the contract for fire protection and emergency services with Riverside County Cal Fire. This contract extension ensures that the current level and quality of fire and medical emergency response services provided to city residents will continue for the next five years. A separate contract was also executed with County of Riverside Emergency Management Department to provide the City with assistance on emergency operations and related programs.
7. To improve the quality of life and safety in the City, homeless services and programs were expanded during the fiscal year. The program provides emergency hotel/motel housing and outreach placement services to residents experiencing homelessness, in partnership with the City of Corona. Additional federal and state grant funds totaling approximately $2 million were secured this year to augment these programs. These services are expected to continue in FY 2023 to serve more homeless residents.
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Other Relevant Financial Policies
Budgetary Control Policies: The City has implemented strict expenditure control procedures and policies.
Personnel costs represent a significant portion of the City’s general government operating cost. To reduce personnel related costs, the City generally negotiates short-term labor agreements with employee organizations in order to provide the City with the flexibility to make expenditure reductions in the future to ensure balanced budgets. Strict expenditure control is also achieved through constant monitoring of expenditures. Budget-to-actual expenditure information is available on a real-time basis to all departments. Hard copy monthly reports are also provided to each department, and potential over expenditure indications are discussed with each department.
Additionally, summarized budget-to-actual reports are available to the City Council on a quarterly basis beginning with the second quarter. An extensive mid-year budget review process is also undertaken. The mid-year budget review process offers the City an opportunity to conduct a detailed review of the budget in order to take corrective action by making timely adjustments as necessary.
Pension, Health and OPEB Funding Policies: Pension, medical insurance and Other Post-Employment Benefits (OPEB) are significant cost items affecting the long-term financial condition of the City. Effective January 1, 2013, the City implemented the provision of the State of California Public Employees’ Pension Reform Act. This reform reduced public employees’ pension benefits and required employees to make a greater contribution toward funding of their pension benefits. All City employees are required to pay the employee’s portion of annual pension costs, which equates to either 6% or 8% of salary for PEPRA and Classic employees, respectively. In terms of OPEB, the City’s annual contribution is based on the actuarially determined contribution. For FY 2023, the City contributed $1.4 million which included $0.4 million to the CERBT trust. The City also continued to maintain the policy that capped the amount of City subsidy toward the cost of active employee medical insurance costs at $1,500 per month. That amount will increase for most employee groups to $1,550 per month in January 2025.
As part of the implementation of GASB 45, the City established a Trust Account to accumulate funds for the payment of post-retirement healthcare insurance premiums. The City also adopted a funding policy. Under the policy, the City made a significant deposit into the Trust Account to prefund a portion of its unfunded retiree healthcare liabilities. Because of substantial earnings accrued to the Trust Account through June 30, 2023, the City has made significant progress in funding OPEB liabilities through this Trust Account. As of June 30, 2023, the City’s OPEB Trust Account had a balance of $12.7 million. As previously mentioned, the City has also ended this benefit for new hires after July 1, 2023, for most employee groups, which will further reduce OPEB liabilities over time.
Other Relevant Financial Policies: The City of Norco has adopted several financial policies to ensure that the fiscal affairs of the City are professionally and prudently managed. With passage of Measure R, a one percent Transactions and Use Tax that the City implemented during Fiscal Year 2020, the City Council passed a resolution creating a Citizens’ Oversight Committee, an advisory body to the City Council charged with the responsibility for reviewing and prioritizing lists of projects and programs to be funded with Measure R tax revenues. The Committee is also responsible for reviewing Measure R revenues, expenditures and related reports to ensure that Measure R revenues are expended efficiently and effectively, and overseeing the required independent audit. Members of the Oversight Committee are subject to bylaws that detail their duties, responsibilities, terms and qualifications. A super majority vote of the City Council is required in order to override recommendations of the Committee.
The City has also adopted a Debt Issuance and Management Policy. The purpose of this policy is to provide written guidance to policymakers regarding the timing and purposes for which debt may be issued, types and amounts of permissible debt, and methods for sale that may be used. Adherence to this policy helps to ensure prudent fiscal management and to maintain sound financial position and optimal credit ratings. The financing plan previously discussed regarding the refinancing of the City’s Enterprise Revenue Bonds was based on this policy.
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Major Initiatives
The City of Norco is dedicated to maintaining the motto of “City Living in a Rural Atmosphere” by building and maintaining adequate infrastructure to serve its residents and attract compatible economic development projects.
As previously discussed, the City adopted a multi-year strategic plan with a vision through 2025. The Strategic Plan drives major initiatives, including capital project planning. The key to the City’s capital project planning is the adopted five-year Capital Improvement (CIP) Program Budget. This budget, which is updated annually by staff and adopted by the City Council, ensures that facilities and infrastructure are well maintained and replaced timely for reliable and effective service delivery to residents and businesses. During the fiscal year ended June 30, 2023, the City engaged in the following major initiatives, which are consistent with the Strategic Plan and the Capital Improvement Program Budget:
1. The five-year Capital Improvement Program Budget provides for $57.5 million in infrastructure improvements and replacement during FY 2024. In particular, the City will make significant investments on streets, water, storm drain, sewer, parks and public facilities as follows:
a. Storm drains $22.4 million
b. Water system improvements $7.3 million
c. Sewer system improvements $7.9 million
d. Recycled water system improvements $1.7 million
e. Road maintenance and rehabilitation $1.3 million
f. Public facilities $4.3 million
g. Various Measure R funded projects $15.8 million
2. During FY 2023, several capital projects were completed as follows:
a. Completion of various improvements at the Ingalls Event Center including the Gold Star/Blue Star Memorial and Moreno Arena Sound System.
b. Completion of various park improvements including playground replacements. c. Completion of various building improvements including Fire Station 47 flooring, Mobile Storage for Unit for Special Events, and ADA Improvement Project. d. Completion of various storm drain improvement projects including Storm Drain Catch Basin Screens, California and Seventh Street, and Pedley Avenue Storm Drains. e. Completion of equestrian trail fence replacement projects at various locations throughout the City. f. Completion of various street improvements including Hillside to Corona Avenue, Shadow Canyon Circle, Kingman Drive, Oak Ridge, Canyon Ridge, Rim Crest Drive, Vista Ridge, River Road, and various repavement projects throughout the City.
g. Acquisition of various trucks, shuttles, golf carts and other equipment.
3. Several economic development projects were also initiated and/or completed during the fiscal year including:
a. Entitlement of the new Tru by Hilton Hotel, Dutch Bros, and Freddie’s, all on Hamner Avenue, bringing new hospitality and related businesses to the City’s major corridor. b. The City updated its Industrial Design Standards to limit future large-scale industrial warehouse development, and instead encourage buildings of less than 20,000 square feet. With several major warehouse and logistics developments already sited in the City, these new standards are meant to bring development more likely to create jobs and taxable sales in the community. c. The City began a comprehensive update to its General Plan. With the City’s Sixth Cycle Housing Element approved in late 2022, the City has embarked on the first comprehensive update to the General Plan since the city’s incorporation in 1964. Completion of this project, known as General Plan 2050, is meant to define the City’s fiscally-sustainable growth and development over the next 25 years. The new General Plan will include an economic development component with a focus on creating and growing revenues.
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Awards and Acknowledgments
The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Norco for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. This is the nineteenth consecutive year that the City has received this prestigious award. In order to be awarded the annual Certificate of Achievement for Excellence in Financial Reporting, a government unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, which conforms to program standards. Such reports must also satisfy Generally Accepted Accounting Principles, applicable rules, regulations and legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program’s requirements, and we will be submitting it to the GFOA to determine eligibility for another certificate.
The preparation of this report could not have been accomplished without the efficient and dedicated services of the entire staff of the City, specifically the Finance Department and our independent auditors, CliftonLarsonAllen LLP, Finance Director Lisette Free and the entire accounting staff, all deserve special credit for their dedication and contribution in preparing this ACFR and in serving the City of Norco. Our gratitude is also given to every City department for their contributions in providing the data necessary to prepare this report. Finally, we must also commend the Mayor and the entire City Council for their vision, direction and unwavering support of City staff in maintaining the highest level of professionalism in the management of the City and its finances.
Respectfully Submitted,
___________________ ________________________
Lori Sassoon Lisette Free, CPA, CFE
City Manager Finance Director
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CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
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INDEPENDENT AUDITORS’ REPORT
City Council Members
City of Norco
Norco, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Norco, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City of Norco’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Norco, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Norco and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Change in Accounting Principle
As discussed in Note 1 to the financial statements, effective July 1, 2022, the City adopted new accounting guidance, GASB No. 96, Subscription-Based Information Technology Arrangements. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
City Council Members
City of Norco
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In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Norco’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of City of Norco’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City of Norco’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
City Council Members
City of Norco
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the managements’ discussion and analysis, schedule of proportionate share of the net pension liability, schedule of contributions – defined benefit pensions plans, schedule of changes in the net OPEB liability and related ratios, schedule of contributions – OPEB plan, and budgetary comparison schedule – general fund be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Norco’s basic financial statements. The individual fund schedules and combining financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the individual fund schedules and combining financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
City Council Members
City of Norco
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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2023 on our consideration of the City of Norco’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Norco’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Norco’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Irvine, California
November 30, 2023
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MANAGEMENT’S DISCUSSION AND ANALYSIS
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CITY OF NORCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2023
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The following Management Discussion and Analysis (MD&A) of the City of Norco’s (City) financial condition and performance provides an introduction and overview of the financial activities of the City for the fiscal year ended June 30, 2023. Management’s Discussion and Analysis (MD&A) is designed to be condensed, so we encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the basic financial statement including the accompanying notes to basic financial statements.
Financial Highlights
The City’s total assets of $426.3 million and deferred outflow of resources of $14.6 million exceeded its total liabilities of $94.2 million and deferred inflows of resources of $16.7 million at the close of fiscal year 2023 by $330.1 million (net position). Of this amount, $76.3 million (unrestricted net position) may be used to meet the City’s obligations to citizens and creditors. The City’s total net position increased by $22.2 million during the year. The increase was a result of revenues exceeding expenses in the governmental activities by $19.7 million and business type activities by $2.5 million.
As of June 30, 2023, the City’s governmental funds reported combined fund balance of $71.4 million, a net increase of $3.9 million from the prior fiscal year. A total of $2.1 million is nonspendable, $38.9 million is committed or restricted and $30.4 million is unassigned. At the end of fiscal year 2023, committed fund balance for the general fund was $14.0 million; unassigned fund balance was $30.4 million. The total spendable fund balance of $44.4 million, which includes $1.5 million in donation revenue, represents 132.3% of total fiscal year 2022-2023 general fund expenditures.
The City’s total long-term debt increased by a net $7.6 million during fiscal year 2022-2023 primarily due to increase both in the other post-employment benefits (OPEB) obligation and the pension obligation based on actuarial evaluation.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s financial statements, which include all of the activities of the City of Norco and its component units as well as the Successor Agency to the former Norco Community Redevelopment Agency. The City’s basic financial statements comprise of the following three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to basic financial statements. The City’s Annual Comprehensive Financial Report (ACFR) also contains other supplementary information in addition to the basic financial statements.
Government-wide financial statements: The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner that is similar to a private-sector business. Government-wide financial statements include a statement of net position and a statement of activities.
The Statement of Net Position presents information on all of the City’s assets and liabilities, with the difference between the two reported as net position. This is one way to measure the City’s financial health. Over time, increases or decreases in net position may provide a useful indicator on whether the financial position of the City is improving or deteriorating.
The Statement of Activities provides information that shows how the City’s net assets changed during the current fiscal year. These changes are reported using the full accrual basis of accounting. Under this method, transactions are reported when the economic event occurs, rather than when cash is received or paid. Consequently, revenues and expenses are also reported in the statement for some items that will only result in future cash inflows or outflows such as vacation earned but not paid and uncollected taxes.
CITY OF NORCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2023
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In both the Statement of Net Position and Statement of Activities, financial reporting is divided into two kinds of activities:
Governmental Activities - Financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, streets and highways, community/economic development, culture and leisure and housing.
Business-Type Activities - The City charges a fee to customers to recover all or most of the cost of certain services it provides. The City’s water and sewer operations are reported as business-type activities.
The government-wide financial statements include not only the City, known as the primary government, but also its component units that are legally separate but whose activities the City is financially accountable. For the fiscal year ended June 30, 2023, the Norco Financing Authority is the only entity included as a component unit of the City. Due to the dissolution of the former Norco Community Redevelopment Agency in FY 2012, the activities of the Successor Agency are reported in a fiduciary fund (private-purpose trust fund) and have not been included in the consolidated financial statements of the primary government, the City of Norco. On September 29, 2014, the Oversight Board of the Successor Agency to the Norco Community Redevelopment Agency elected to serve as the Housing Successor for the operations of the former Redevelopment Agency’s Housing Agency. Consequently, the assets of the Housing Agency were transferred to the low- and moderate-income housing special revenue fund of the City of Norco in fiscal year 2014-2015.
Fund Financial Statements: Fund financial statements are designed to report information about groupings of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The funds of the City can be divided into three broad categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike government-wide financial statements, governmental fund financial statements are prepared using the modified accrual basis of accounting which focuses on short-term receipts and disbursements of financial resources, as well as balance of financial resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financing requirements.
The focus of governmental funds in the fund financial statements is narrower than that of the governmentwide financial statements. Therefore, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and government-wide activities.
The City maintains several individual governmental funds organized by their type (general, special revenue and capital project funds). Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund and the low- and moderate-income housing fund, which are considered to be major funds. Data from the remaining governmental funds are combined into a single, aggregated presentation called non-major governmental funds. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.
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The City adopts an annual appropriated budget for its general, special revenue and capital project funds.
Budgetary comparison statements have been provided for these funds to demonstrate compliance with the budget.
The basic governmental fund financial statements can be found on pages 27-30 of this report.
Proprietary Funds: The City maintains two different types of proprietary funds, enterprise and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water and sewer utilities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions and departments. The City uses internal service funds to account for the acquisition and maintenance of its fleet of vehicles, risk financing activities and computer and related information systems operations. Because these funds predominantly benefit governmental activities rather than business-type functions, they have been allocated most of their activities within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as government-wide financial statements, only in a more detailed format. The proprietary fund financial statements provide separate information for the water and sewer operations, both of which are considered to be major funds of the City. Internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements.
Individual fund data for the internal service funds is also provided in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 31-35 of this report.
Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the City. In these cases, the City has a fiduciary responsibility and is acting as a trustee. The Statement of Fiduciary Net Position reports all of the City’s fiduciary activities. Fiduciary funds are not included in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The resources of the Successor Agency to the former Redevelopment Agency are accounted for in fiduciary funds as a private purpose trust fund.
The basic fiduciary fund financial statement can be found on pages 36-37 of this report.
Notes to the basic financial statements: The notes to the basic financial statements, which are an integral part of the financial statements, provide additional information that is essential to a full understanding of the data in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 41-85 of this report.
Other information: In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information regarding the City’s proportionate share of net pension liability, contribution to defined benefit plans, progress in funding of the Other Post-Employment Benefits (OPEB) obligation to provide health benefits to its employees, as well as the budgetary comparison for the general fund. Required supplementary information can be found on pages 87-96 of this report.
Combining statements for non-major governmental funds, internal service funds and agency funds are presented immediately following the required supplementary information. Combining financial statements and schedules are also presented elsewhere in this report.
Government-wide Financial Analysis
This analysis focuses on the City’s net position and changes in net position in the governmental and business-type activities. As noted earlier, net position may serve over time as a useful indicator of the City’s financial position. For the fiscal year ended June 30, 2023, total City assets of $426.3 million, deferred loss on debt refunding of $0.7 million, and deferred outflow of resources amounts related to
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OPEB plan of $4.0 million and pension plans of $9.9 million, exceeded total liabilities of $94 million and deferred inflow of resources amounts related to lease receivable of $12.8 million, OPEB of $1.1 million and pension plans of $2.8 million by $330.1 million.
For comparative purposes, management has included data from the fiscal year ended June 30, 2023 as summarized below:
2023 2022 2023 2022 2023 2022 %
Change
Assets:
Current and other assets $ 101,615,294 $ 95,513,456 $ 43,356,553 $44,834,612 $144,971,847 $ 140,348,068 3% Capital assets (net of depreciation) 195,809,882 183,756,155 85,487,535 84,262,505 281,297,417 268,018,660 5% Total assets 297,425,176 279,269,611 128,844,088 129,097,117 426,269,264 408,366,728 4% Deferred Outflow of Resources:
Deferred loss on debt refunding - - 764,139 803,741 764,139 803,741 -5% Amount related to other post employment benefits 2,720,754 1,343,400 1,213,815 677,967 3,934,569 2,021,367 95% Amount related to pension plans 7,857,794 3,556,877 2,053,521 905,096 9,911,315 4,461,973 122% Total deferred outflow of resources 10,578,548 4,900,277 4,031,475 2,386,804 14,610,023 7,287,081 100% Liabilities:
Current and other liabilities 11,009,816 8,149,492 4,745,641 4,378,476 15,755,457 12,527,968 26% Long-term liabilities 25,805,626 19,433,836 52,460,854 51,197,292 78,266,480 70,631,128 11% Total liabilities 36,815,442 27,583,328 57,206,495 55,575,768 94,021,937 83,159,096 13% Deferred Inflow of Resources:
Amount related to lease receivable 12,799,901 13,286,239 - - 12,799,901 13,286,239 100% Amount related to other post employment benefits 732,092 2,258,266 326,609 1,139,666 1,058,701 3,397,932 -69% Amounts related to pension plans 2,279,462 9,441,641 576,598 2,470,874 2,856,060 11,912,515 -76% Total deferred inflow of resources 15,811,455 24,986,146 903,207 3,610,540 16,714,662 28,596,686 -42% Net position:
Net investment in capital assets 189,484,053 182,078,689 38,586,712 36,596,095 228,070,765 218,674,784 4% Restricted 25,295,237 25,833,667 493,645 1,830,956 25,788,882 27,664,623 -7% Unrestricted 40,597,542 27,741,235 35,685,503 33,870,562 76,283,045 61,611,797 24% Total net position $ 255,376,832 $ 235,653,591 $ 74,765,860 $72,297,613 $330,142,692 $ 307,951,204 7% Governmental Activities Business-type Activities Total
City of Norco, California
Statement of Net Position
Net position for the fiscal year ended June 30, 2023 increased by 7% and includes investments in capital assets such as roads, streets, drainage systems, large roadway signs, park improvements, property plant and equipment.
Including the value of infrastructure assets, net investment in capital assets total is $228.1 million as of June 30, 2023. The City uses capital assets to provide services to citizens and these assets are not available for future spending. An additional portion of the City’s net position, $25.8 million for fiscal year 2023 and $27.7 million for fiscal year 2022, represent resources that are subject to restrictions on how they can be used. The remaining balance, unrestricted net position, is $76.3 million and $61.6 million for fiscal years 2023 and 2022, respectively.
The deferred loss on debt refunding is reported in the statement of net position for the business-type activities beginning in fiscal year 2014 as required by Statement No. 65 of the Governmental Accounting Standards Board (GASB). This amount had been previously reported in the long-term liability line item. It is the difference between the amount required to repay the previously issued debt at the time it was refinanced in 2009 for the business-type activities and the amount due at maturity. In fiscal year 2019-20,
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the City advance refunded the outstanding 2009 Enterprise Revenue Refunding Bonds. The City has been amortizing this amount since fiscal year ended June 30, 2009 and will continue to amortize it for the life of the refunding bond.
On July 1, 2022, the City adopted the GASB issued GASB Statement No. 96, Subscription-Based Information Technology Arrangements. This Standard defines a subscription-based information technology arrangement (SBITA); establishes that a SBITA results in a right-to-use subscription asset (an intangible asset) and a corresponding subscription liability; provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA. The City adopted the requirements of the guidance and has applied the provision of this standard to the beginning of the period of adoption.
On July 1, 2021, the City adopted the GASB issued GASB Statement No. 87, Leases. This Standard requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases as inflows of resources or outflows of resources based on the payment provision of the contract. GASB Statement No. 87 establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this standard, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources.
The amounts related to other post-employment benefits (OPEB) have been recorded starting in fiscal year 2018 as required by Statement No. 75 of the Governmental Accounting Standards Board (GASB).
The deferred inflows are to record the actuarial accruals for differences between actual and expected experience and change in assumptions. The deferred outflow represents the amounts contributed by the City to CalPERS subsequent to measurement date, and the differences between projected and actual earnings on Plan investments.
The amounts related to pension plans have been recorded starting in fiscal year 2016 as required by Statement No. 68 of the Governmental Accounting Standards Board (GASB). The deferred inflows are to record the actuarial accruals for changes in proportionate share of net pension liability and change in assumptions. The deferred outflow represents the amounts contributed by the City to CalPERS subsequent to measurement date, the differences between projected and actual earnings on Plan investments, and differences between expected and actual experience.
Statement of Activities: The statement of activities shows how the City’s net position changed during the year. Provided below is the summary of changes in net position.
For comparative purposes, management has included data from the fiscal year ended June 30, 2023 as summarized below:
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Governmental activities Business-type activities Total
2023 2022 2023 2022 2023 2022 % Change
Revenues:
Program Revenues:
Charges for services 8,519,245 $ 8,494,486 $ 19,811,597 $ 23,516,597 $ 28,330,842 $ 32,011,083 $ -11% Operating grants and contributions 2,847,772 3,124,093 - - 2,847,772 3,124,093 -9% Capital grants and contributions 5,090,952 6,297,305 170,421 1,931,129 5,261,373 8,228,434 -36% General revenues 34,470,047 31,954,456 929,041 (115,150) 35,399,088 31,839,306 11% Total revenues 50,928,016 49,870,340 20,911,059 25,332,576 71,839,075 75,202,916 -4% Expenses:
General Government 11,844,526 9,639,441 - - 11,844,526 9,639,441 23% Public safety 9,311,309 10,991,835 - - 9,311,309 10,991,835 -15% Streets and Highw ays 6,061,498 8,627,523 - - 6,061,498 8,627,523 -30% Community development 1,693,448 1,974,201 - - 1,693,448 1,974,201 -14% Culture and leisure 2,579,824 2,637,799 - - 2,579,824 2,637,799 -2% Water - - 11,821,081 12,368,339 11,821,081 12,368,339 -4% Sew er - - 6,335,901 7,740,315 6,335,901 7,740,315 -18% Total expenses 31,490,605 33,870,799 18,156,982 20,108,654 49,647,587 53,979,453 -8% Change in net position before transfers 15,999,541 19,437,411 2,754,077 5,223,922 22,191,488 21,223,463 5% Transfers 285,830 266,905 (285,830) (266,905) - - N/A
Change in net position 19,723,241 16,266,446 2,468,247 4,957,017 22,191,488 21,223,463 5% Net position - beginning 235,653,591 218,689,136 72,297,613 67,781,864 307,951,204 286,471,000 7% Restatement - 256,741 - - 256,741 100%
To transfer revenue to the correct fund/activity - 441,268 - (441,268) - - N/A Net position - ending 255,376,832 $ 235,653,591 $ 74,765,860 $ 72,297,613 $ 330,142,692 $ 307,951,204 $ 7% City of Norco, California
Statement of Changes in Net Position
During the year, total net position increased by $22.2 million primarily due to general revenues derived from the property and other taxes and investment earnings due to an increase in interest rate. Further analysis is provided below.
Governmental activities: Total net position from governmental activities increased by $19.7 million during the year primarily due to the increase in property tax and investment earnings. In terms of the general fund, revenues exceeded expenses by $4.5 million including tax revenues derived from Measure R.
The following chart provides a graphic representation of the City’s expenses compared to program revenues for governmental activities. This information is by function.
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The following chart provides a graphic representation of governmental activities revenues by source.
The governmental activity’s expense and program revenue chart is designed to reflect expenses associated with each City function and the revenues that are directly attributable to that function. It is important to note that general revenues such as property, sales and other taxes are not directly attributable to specific functions and are used to support program activities citywide. Investment earnings are also not associated directly with any particular function.
Capital grants and contributions represent revenues and contributions of capital assets received from developers and other third party entities including local, state and federal governments. Capital grants and contributions are restricted to the acquisition and construction of capital assets.
Sales taxes are derived from taxable transactions originating from the City. During the fiscal year ended June 30, 2023, sales tax revenue included Measure R transactions and use tax revenue. The other taxes categories include property taxes and taxes derived from business license, franchises, motor vehicle licenses and transient occupancy taxes.
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Business-type activities: Including non-operating income, net position of the business type activities increased $2.3 million during the fiscal year as charges for services revenue for sewer operations and capital contributions and grants for water operations are increased. The chart below provides a graphic representation of the City’s revenues by source for business-type activities. A five-year water and sewer rate increase was approved by City Council with a rate study and Prop. 218 processes completed resulting in increased rates effective January 1, 2017 of each fiscal year through 2021. There were no rate increases in FY 21-22 and FY 22-23. The net position of the water fund increased by $0.9 million as total revenues exceeded total expenses. The water fund had operating income of $1.2 million before investment earnings, interest expense and fiscal changes and amortization of bond premiums of $0.4 million, transfers out of $0.1 million and capital contribution of $0.2 million. The net position of the sewer fund increased by $1.3 million as total revenues exceeded total expenses. The sewer fund had operating income of $1.5 million before investment earnings, interest expense and fiscal changes and amortization of bond premiums of $10,268 and transfers out of $0.1 million.
Water fund expenses make up 65 percent of total business-type activities expenses while sewer fund expenses make up the remaining 35 percent of total expenses. Total charges for services from businesstype activities consist of 63 percent derived from water fund and 37 percent from the sewer fund.
Financial Analysis of City Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.
Governmental Funds: The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s ability to meet financial obligations in the short term. As example, assigned and unassigned fund balance could serve as a useful measure of the City’s net resources available for spending at the end of the fiscal year.
As of June 30, 2023, the City’s governmental funds reported combined ending fund balances of $71.4 million, an increase of $3.9 million. Of the $71.4 million, $2.1 million is non-spendable representing the long-term amount of a note receivable from the City of Corona for the sale of donated assets; $25.0 million, or 35 percent, constitutes restricted fund balance which can only be used for specific purposes due to external restrictions or enabling legislation. Committed fund balances include balances that have been constrained by the City Council through a resolution or ordinance for specific future use. Total