19 Fire MEG MOU 2023-2026
Additional benefits for affected employees include the following:
•Sec. 20691 Employer Payment of Member Contributions (based on hire date)
•Sec. 20636 (c)(4) Reporting of Employer-Paid Member Contribution (EPMC) as Special Compensation
•Sec. 20965 Credit for Unused Sick Leave
2. Tier 2 - Employees hired on or after 7/9/11 and through 12/31/12, and Classic PERS members, as defined by PERS, who are hired on or after January 1, 2013:
§ 21354 2% at 55 Full Formula
§ 21574 4th Level 1959 Survivor
§ 20037 3 Year Final Compensation
Effective June 24, 2023, employees contribute a total of 7% of the normal CalPERS member contribution, eliminating EPMC per resolution FD 2023-011.
The District adopted a resolution providing that all employee CalPERS contributions to the employer share pursuant to this section shall be deducted on a pre-tax basis and to reflect changes in EPMC prior to the effective dates.
Additional benefits for affected employees include the following:
•Sec. 20691 Employer Payment of Member Contributions (based on hire date)
•Sec. 20636 (c)(4) Reporting of Employer-Paid Member Contribution (EPMC) as Special Compensation
•Sec. 20965 Credit for Unused Sick Leave
3. Employees who are New PERS Members, as defined by PERS, who are hired on or after January 1, 2013:
Employees are classified as New Members of PERS when they meet the definition of a “new member” for purposes of retirement pensions benefits pursuant to the Public Employees Pension Reform Act of 2013. Generally, this includes employees that were hired into a regular position on or after January 1, 2013, or former PERS members who have more than a six-month break in service.
CalPERS ultimately determines who is new member in compliance with the law.
Employees who are classified as New Members shall be eligible for the 2% at 62 Formula, 3-year final compensation average.
20 Fire MEG MOU 2023-2026
The employee contribution for new members shall be one-half the normal cost, as determined by CalPERS. As of the effective date of this MOU, the required employee contribution for new members is 6.5% of reportable compensation. This amount will be adjusted periodically by CalPERS, and the District employee contribution adjusted accordingly per state statute.
The District adopted a resolution providing that all employee CalPERS contributions shall be deducted on a pre-tax basis per IRC 414(h)(2).
4. PARS
The Supplemental Benefit through PARS Phase II Retirement System is provided to all miscellaneous employees hired by December 31, 2012.
5. The following benefit is available to safety personnel at employee cost:
Sec. 20930.3 Military Service as Public Service
C. Cost Sharing – Classic CalPERS members
Classic CalPERS members contribute 1% of compensation earnable via payroll withholding as cost sharing of the employer contributions required by CalPERS effective the first full pay-period in July 2024. The cost sharing contributions shall be made pursuant to Government Code Section 20516(f).
This in no way affects the employee share of 9% that Classic employees contribute towards the cost of their retirement, or the amount that PEPRA members contribute towards the employee/member share that is set by CalPERS.
This does not increase the cost sharing of the employer contribution that the Fire Chief is already contributing.
Parties Agree to a reopener during the third year of the MOU to discuss cost sharing should PEPRA rates increase during the term of the contract. § 8. Work Related Injuries
Safety Employees are entitled to full salary and benefits for up to one (1) year, when they sustain an on-the-job work-related injury (see California Labor Code § 4850 for provisions). 4850 covers only safety personnel. Temporary disability payments received during any injury period shall be returned to District.
Any Miscellaneous (Non-Safety) employee within the bargaining unit covered herein who is receiving disability payments under the “Workers Compensation Act of California” for on-the-job injuries sustained while engaged in the performance of duties of any such District position, shall receive from the District during the first three months of such disability absence, payments in an amount equal to the difference between the disability payments received under Workers Compensation Act and the
21 Fire MEG MOU 2023-2026
employee’s full salary. Such payments by the District should be made without any deduction from accrued sick leave benefits. The District’s obligation for such payments shall commence on the first (1 st) day of such disability absence. In the event the employee’s disability absence should exceed three months, an employee shall be allowed to supplement the Workers Compensation benefit received under State law with available accrued sick leave, accrued vacation leave, accrued compensatory time. The total number of leave hours, along with the Workers Compensation benefit, shall not exceed the employee’s base pay for each day of the leave. For this purpose, accrued leave hours can only be used in one-hour increments. § 9. Carpooling
Those employees participating in a carpool during going to and from their residence and work site shall not be in receipt of a reduced workday. Rather, those employees participating in a “carpool” shall be accorded the following benefit:
Eligible carpool employees shall be regular, full-time employees who voluntarily participate in and file a “rideshare application agreement”.
Eligibility for ride-share related benefits is conditioned upon:
1. Each affected regular and full-time employee shall ride share with another person(s) in a car or vanpool.
2. In the alternative, each affected regular and full-time employee shall drive to and from work other than in an automobile. For example, such transportation may include a bicycle, public transportation, walking.
3. Eligibility for rideshare benefits shall be conditioned upon 1) the regular and full- time employee participating 60% of the total workdays during a given month, 2) ride sharing for at least 60% of the commute distance, and 3) ride sharing between the hours of 6 and 10 a.m. of the employee’s scheduled work shift.
Individuals meeting the above qualifications shall earn $2 for every day that the employee rideshares, paid at the end of each quarter. Further, the City is desirous of devising some type of “drawing” to provide a singular person on a monthly basis with an item of value in recognition of ride sharing.
§ 10. IRS 125 Plan
A. District shall implement authorized pre-tax payroll deduction of out-of-pocket medical contribution premiums. Said pre-tax payroll deduction shall not only be used for the purpose of paying the difference between the amount of District funded premiums for District-provided health insurance plans, and the amount of out-of-pocket premium payments borne by the employee regarding District- provided plans.
B. The District agrees to provide technical assistance (such as automatic payroll deduction, etc.) in the event employees decide to expand this benefit from a
22 Fire MEG MOU 2023-2026
“premium only plan” to a “flexible spending account” provided that those participating pay all costs incurred in expanding and maintaining this program.
ARTICLE III LEAVES
§ 1. Holidays
A. Holidays are those days which District designates as observed holidays. Holiday leave is a right, earned as a condition of employment, to a leave of absence with pay. The holidays designated by District are as follows:
40 Hour Personnel
July 4 Independence Day
September Labor Day (1st Monday)
November 11 Veterans Day
November Thanksgiving (4th Thursday)
November The day following Thanksgiving
December 24 The day preceding Christmas
December 25 Christmas
January 1 New Years Day
January Martin Luther King's Birthday (3rd Monday)
February President's Day (3rd Monday)
May Memorial Day (last Monday)
Three (3) discretionary (floating) days may be taken by an employee at his or her convenience, subject to approval by the supervisor. The thirty (30) hours for the three (3) floating holidays shall be credited to the employee at the start of pay period No. 1 of each fiscal year.
Whenever a holiday falls on a Sunday, the following Monday shall be observed as a holiday. Whenever a holiday falls on a Friday or Saturday, the preceding Thursday shall be observed as the holiday.
56 Hour Personnel
July 4 Independence Day
September Labor Day (1st Monday)
September Admissions Day
October 12 Columbus Day
November 11 Veterans Day
November Thanksgiving (4th Thursday)
November The day following Thanksgiving
December 24 The day preceding Christmas
23 Fire MEG MOU 2023-2026
December 25 Christmas
January 1 New Year’s Day
January Martin Luther King's Birthday
February 12 Lincoln’s Birthday
February 22 Washignton’s Birthday
May Memorial Day (last Monday)
B. Employees shall accrue holiday time as follows:
Type of
Personnel
Per
Holiday Annually
Maximum
Accrual
Shift Personnel 12 hours 168 hours 216 hours
40 hour Personnel 10 hours 140 hours 180 hours
C. No District employee will be allowed to exceed the maximum accrual at any time.
As excess holiday time is earned, it must either be taken as time off or be paid for by District.
D. District employees will be advised, in writing, within the pay period prior to the time that maximum holiday accrual is reached or that they are approaching their maximum accrual.
E. Holiday time shall be accrued annually beginning with the first pay period of the fiscal year within the pay period which it occurs. Beginning in calendar year 2022, the two December holidays will accrue on November 30 of each year.
F. Beginning December 1, 2021, and annually thereafter, any employee that wants to have the District buy back holiday hours shall make an irrevocable election to do so. The irrevocable election shall be submitted in writing to the City’s Human Resources Department on or before December 15 and shall indicate the number of hours of holiday that the employee expects to earn in the following calendar year that the employee wants the District to buy back in December (between first and second pay period). Regardless of the number of hours requested to be cashed out, the most the District can cash out is the number of hours accrued and available in that calendar year to date.
G. Holidays may be used as scheduled time off with the approval of the Supervisor.
H. Any employee who is on vacation or sick leave when a holiday occurs will not have that holiday charged against his or her vacation or sick leave.
Forty (40) hour personnel who obtain prior approval from their immediate supervisor to work a holiday will be allowed to bank that holiday at straight time. If a 40-hour
24 Fire MEG MOU 2023-2026
employee who is eligible to receive overtime compensation is recalled to work on a holiday, that holiday will be banked at time and a half (1.5) for the number of hours actually worked that day.
§ 2. Holiday Facility Closure
Certain City Facilities may close each year in conjunction with the Christmas and New Year’s holidays. Closure dates for City facilities shall be determined by the City in order to balance the impact on public services. During a holiday closure, affected represented employees may take paid leave from holiday, management leave, and compensatory time or vacation accruals or they may be reassigned to a facility that will remain open during the closure.
§ 3. Vacation Leave
A. Vacation leave is a right to a leave of absence with pay. It is earned as a condition of employment.
All full-time employees shall, with continuous service, accrue working days of vacation monthly according to the following schedule:
40-hour Personnel
Years of
Completed Service
Annual
Accrual
Maximum
Accrual
Pay Period
Accrual Rates
30 days-3 years 85.72 hours 192.0 3.297
4-7 years 128.57 hours 272.0 4.945
8-10 years 171.43 hours 353.0 6.593
11-14 years 188.58 hours 353.0 7.253
15-19 years 205.72 hours 353.0 7.912
20-24 years 222.86 hours 353.0 8.572
25+ years 240.00 hours 353.0 9.231
Shift Personnel
Years of
Completed Service
Annual
Accrual
Maximum
Accrual
Pay Period
Accrual Rates
30 days-3 years 120 hours/5 shifts 288.0 4.615
4-7 years 180 hours/7.5 shifts 408.0 6.923
8-10 years 240 hours/10 shifts 528.0 9.231
11-14 years 264 hours/11 shifts 528.0 10.154
15-19 years 288 hours/12 shifts 528.0 11.077
20-24 years 312 hours/ 13 shifts 528.0 12.002
25+ years 336 hours/14 shifts 528.0 12.923
25 Fire MEG MOU 2023-2026
B. An employee who, as of July 1 of any given year, has completed 10, 20 or 25 years of service shall receive a onetime credit of 24 hours of vacation, if a shift employee; or receive 10 hours, if a 40-hour employee.
C. The District will notify employees, in writing, within the pay period prior to the time that maximum vacation accrual will be reached that the accrual is approaching that maximum. The employee will then be required to (1) schedule time off or, (2) receive pay in lieu of time off so as to not exceed the maximum accrual.
D. Any full-time employee who is out about to terminate employment and has earned vacation time to his or her credit, shall be paid for such vacation time on the effective date of such termination. When separation is caused by death of an employee, payment shall be made to the estate of such employee.
E. For vacation accrual purposes only, safety personnel hired prior to July 1, 1996, are allowed to include prior years of all fire service employment. Effective July 8, 2023, the City Manager may provide an accrual rate for new Fire Management Employees up to the equivalent of a ten-year employee upon hire.
F. Annually, any employee that wants to have the District buy back vacation hours shall make an irrevocable election to do so. The irrevocable election shall be submitted in writing to the City’s Human Resources Department on or before December 15 and shall indicate the number of hours of vacation that the employee expects to earn in the following calendar year that the employee wants the District to buy back up to a maximum of 200 hours per year. This buy back shall occur twice annually, in June/July (between the last payday in June and the first payday in July) and November (between the first and second payday of the month), and the employee must indicate the total amount of hours they want paid out in June/July and in November. Regardless of the number of hours requested to the cashed out at either time, the most the District can cash out is the number of hours accrued and available in that calendar year to date. Employees must maintain a minimum of 40 hours of accrued vacation subsequent to any payment of vacation buyback time.
§ 4. Sick Leave
Sick leave shall be used in case of a bona fide illness of the employee upon approval.
Sick leave may also be used for sickness, disability, serious illness or emergency of his or her child, parent, or spouse or registered domestic partner, grandparent, grandchild, and sibling, or any other member of the employee’s immediate family as defined by District Personnel Rules, which is incapacitated and/or requires the service of a physician, and when the presence of the employee is required. At the conclusion of the need for time off to care for a family member, said employee shall return to work as soon as possible. The employee must give the immediate supervisor or Fire Chief reasonable advance written or oral notice. If the need for sick leave is not foreseeable, the employee shall provide written or oral notice of the need for sick leave as soon as
26 Fire MEG MOU 2023-2026
practicable. If the employee is required to be absent on sick leave for more than one day, the employee must keep the immediate supervisor informed each day as to the date the employee expects to return to work and the purpose of the leave. Failure to request sick leave as required by this provision without good reason, may result in the employee being treated as absent without leave. The maximum number of hours that may be used for sickness, disability, serious illness or emergency of his child or her child, parent, or spouse or registered domestic partner, grandparent, grandchild and sibling is equal to the employee’s annual accrual.
A. Full-time Employees
1. All employees shall be accruing sick leave as follows:
Personnel Monthly Annual Accrual Max. Accrual
40-hour Personnel 10 hours 120 hours No limit
Shift Personnel 12 hours
(1/2 shift)
144 hours
(6 shifts)
No limit
B. Sick Leave Use
1. Personal Sick Leave
Employees can use sick leave for personal illness, injury, a health-related reason (such as the diagnosis, care or treatment of a health condition), or preventive care.
2. Family Sick Leave
Employees can use sick leave for the illness or injury of a health-related reason (such as the diagnosis, care or treatment of a health condition), or preventive care of qualified family member.
For the purpose of Family Sick Leave, a qualified member means the employee's: child (includes any age or dependency status, or for whom the employee is a legal ward or stands in loco parentis), parent (includes person who stood in loco parentis of the employee as a child), parent-in-law, spouse, registered domestic partner, grandparent, grandparent-in-law, great- grandparent, great-grandparent-in- law, grandchild, great-grandchild, or sibling.
3. Other Statutory Use
Sick leave can be used to cover an absence for an employee who is victim of domestic violence, sexual assault, or stalking to:
a. Obtain or attempt to obtain a temporary restraining order or other court assistance to help ensure the health, safety, or welfare of the employee or their child(ren).
b. Obtain medical attention or psychological counseling; services from a shelter; program or crisis center; or participate in safety planning or other actions to increase safety.
27 Fire MEG MOU 2023-2026
C. No employees shall be entitled to sick leave with pay while absent from duty for the following reasons:
a. Disability arising from sickness or injury purposely self-inflicted or caused by his or her own willful misconduct.
b. Sickness or disability sustained while on leave of absence.
D. Except as specified in “G” below, sick leave shall not be used in lieu of or in addition to vacation.
E. Employees must provide a physician’s certification upon for any sick leave absence that occurs after the employee has used 40 hours or 4 shifts for 40-hour personnel, whichever is greater, or 96 hours for 56-hour personnel, that involves the illness of the employee or family member. This requirement does not pertain to Personal Leave (see §6).
F. The Fire Chief may require medical certification that the employee is capable of and released to return to the performance of all duties of his/her position.
G. In case of voluntary or involuntary termination of an employee’s continuous service, except by reason of retirement or lay-off for lack of work or funds shall abrogate all sick leave and no payment will be made by the District for sick leave accrued to the time of such termination regardless of whether or not such employee subsequently reenters District service.
H. Any employee incurring a serious injury or illness while on paid vacation leave may have those days of illness changed to sick leave with pay and vacation days restored accordingly, provided the employee has sufficient sick leave accrued and the period of illness is certified by a written doctor’s statement.
I. Employees with ten (10) or more years of service shall be eligible to convert unused sick leave to vacation in accordance with the following:
1. Shift Employees who, in the preceding calendar year, accrued 108 to 144 (90 to 120 for 40 hour week employees) unused hours of sick leave earned in that preceding calendar year, may exercise the option of having one-half (1/2) of that unused sick leave accrued in the preceding year converted to vacation leave and the remainder carried over as accrued sick leave.
2. Employees who have accrued 72 to 108 (60 to 90 for 40-hour week employees) unused hours of sick leave earned in the preceding calendar year may exercise the option of having one-fourth (1/4) of the unused sick leave accrued in the
28 Fire MEG MOU 2023-2026
preceding calendar year converted to vacation leave and the remainder carried over as accrued sick leave.
3. Any employee who qualifies to convert sick leave to vacation leave must submit a written request to the District on or before January 15th of the year in which the conversion is to be made.
J. Upon the retirement of an employee, the employee may elect from one or more of the following options:
•Sell back up to fifty per cent (50%) of his/her accumulated unused sick leave at the employee's regular hourly rate of pay at retirement. • Designate accumulated unused sick leave for CalPERS service credit per Government Code Section 20965.
• Apply the cash value of up to one hundred percent (100%) of accumulated unused sick leave to the employee's VEBA account (if enrolled), at the employee's regular hourly rate of pay, as permitted by the VEBA plan. § 5. Conversion Factor
The factor used to convert the accruals for forty (40) hour per week personnel to fifty- six (56) hour per week personnel will be vacation, holiday, and sick leave:
Work Week Basis
Vacation 40 Hour 56 Hour Conversion
Factor
30 days-3 years 85.72 120 1.5
4-7 years 128.57 180 1.5
8-10 years 171.43 240 1.5
11-19 years 188.58 264 1.57
20-24 years 196.58 288 1.57
25+ years 204.58 312 1.57
Holiday 140 168 1.5
Sick 120 144 1.5
(40 to 56) EXAMPLE (8-10 year employee)
Employee Benefits
Vacation = 100 hours
Holiday = 72 hours
Sick = 300 hours
472 total hours X 1.5 (factor) = 708 hours total
Note: if an employee goes from a 56 to 40 hours basis, the conversion will be the reciprocal of 1.5 or .667
29 Fire MEG MOU 2023-2026
§ 6. Personal Leave
A. The employee shall be granted one (1) day paid personal leave, in addition to the normal leave accrual, to attend the funeral of a relative not in the employee’s immediate family.
B. An employee required to appear before a court for other than subpoenas due to actions as a District employee or jury duty will receive the necessary time as paid personal leave, providing:
1. He or she notifies his or her supervisor with adequate advanced notice so that a relief may be obtained.
2. The employee must return to work within a reasonable time after the appearance.
C. Personal Leave will be charged against any leave account in which the employee has accrued an appropriate balance, such as sick leave, vacation, or compensatory time. It is the employee’s option which account is to be charged.
D. Employees can use up to twenty (20) hours of accrued sick leave as personal leave. These twenty (20) hours can be used incrementally (i.e., 1 hour, ½ hour) throughout the fiscal year. Use this time for emergency situations requiring the employee’s attention and requires prior approval by their supervisor. § 7. Bereavement Leave
When a death occurs in the family of a full-time employee, 40-hour personnel shall be granted up to 80 hours of bereavement leave with pay and shift personnel shall be granted up to 112 hours of bereavement leave with pay. A death certificate or othe acceptable evidence may be required by the City Manager or designee before leave is allowed.
Family members are defined as follows: employee’s spouse or domestic partner, employee’s parents, employee’s grandparents, employee’s children, son-in-law, daughter-in-law, employee’s siblings, or employee’s grandchildren, employee’s spouse or domestic partner’s parents, employee’s spouse or domestic partner’s grandparents, grandparents-in-law, brother-in-law, sister-in-law, employee’s spouse or domestic partner’s children, employee’s spouses grandchildren, or a blood relative residing with employee.
The City Manager or designee shall approve such bereavement leave. (References to domestic partner refer to registered doemstic partners, as defined by California Family Code Section 297.) 40-hour personnel are eligible for up to an additional forty (40) hours of bereavement leave, in addition to the currently provided eighty (80) hours and shift personnel are eligible for up to and additional fifty-six (56) hours of bereavement leave, in addition to the currently provided one hundred and twelve (112)
30 Fire MEG MOU 2023-2026
hours, when the bereavement leave is related to the employee’s spouse or domestic partner, employee’s parents, employee’s children, son-in law, daughter-in-law, or employee’s siblings, employee’s spouses or domestic partner’s parents, employee’s spouse or domestic partner’s children, or a blood relative residing with the employee.
The parties agree to review any usage concerns in June 2024. § 8. Compensatory Time
A. In lieu of overtime pay, those employees assigned to a fire suppression 24-hour shift, at the employee’s option, may be compensated with compensatory time off (CTO).
CTO will accrue at the rate of one and one-half hours for each overtime hour worked.
An employee may accumulate a maximum of 144 hours of CTO. Once employee accumulates 144 hours of CTO, any additional overtime hours will be paid to the employee his or her regular overtime rate of pay in the period earned.
B. In addition, all hours remaining in a represented employee’s CTO accrual “bank” will be paid to the employee at the employee’s regular rate of pay at the end of the fiscal year in July and at the “Holiday Vacation/Compensation Time” buy back period in November and the balance in the CTO accounts will be reduced to zero hours.
C. Compensatory time may be earned for required attendance at special meetings of the Board of Directors and District Committees, except when such meetings are held in lieu of a regularly scheduled meeting or when such meetings are called and/or scheduled as part of the annual budget preparation process and annual audit.
D. Compensatory time may also be earned for special and/or unusual work situation not provided for in the preceding paragraphs.
§ 9. Administrative Leave
Administrative Leave: The following classifications shall earn Administrative Leave each fiscal year as follows:
Fire Marshal 50 hours
Deputy Fire Chief 75 hours
Fire Chief 100 hours
Any unused administrative leave, up to a maximum of forty (40) hours in June of each fiscal year must be sold back to District at the employee’s then current hourly rate.
Administrative leave shall not be carried beyond the year in which it was earned. § 10. Military Leave
A. Every employee who is a member of a state or federal reserve military unit shall be entitled to be absent from service with District while engaged in the performance of ordered military duty and while going to or returning from such duty in accordance with the laws of the State of California or federal government.
31 Fire MEG MOU 2023-2026
B. Employees are entitled to thirty (30) days paid military leave in any one fiscal year, provided they have been employed by the District for one (1) year prior to this leave.
Any employee with less than one (1) year of service must use accrued annual leave or compensatory time if he or she wishes to receive normal pay.
C. Employees who are called or volunteer for active service with the armed forces of the United States shall be entitled to reinstatement to their former positions. Upon application for reinstatement, the individual must display a certificate showing service was other than dishonorable. However, any individual must display possessing right of reinstatement automatically forfeits these rights upon voluntary enlistment for a second term.
D. Any employee returning from service with the armed forces shall be entitled to such length of service seniority as would have been credited to them had they remained for that period of time with the District.
E. An employee who was in a probationary period at the time of military leave shall, upon return, complete the remaining portion of the probationary period according to the rules in effect at the start of military leave.
F. An employee promoted to fill a vacancy created by a person serving in the armed forces shall hold such position subject to the return of the veteran. The employee affected by the return shall be restored to his or her former position or one of a similar nature while the returning employee resumes the position he or she previously held. § 11. Jury Duty
Any member of District who is called or required to serve as a trial juror may be absent from duty with District during the period of such service or while necessarily being present in court as a result of such call. Such member on jury duty will continue to receive normal pay, provided he or she:
A. Notifies his or her supervisor, in advance, with adequate time remaining so that a relief may be obtained.
B. Returned to duty within a reasonable time after being released with a signed certificate of service from the court stipulating the hours of service and release time. This certificate may be obtained by asking the court secretary or bailiff. The employee then forwards it to his or her supervisor.
C. Pay received for service while absent from District must be turned over to District; however, pay received while off duty may be kept by the employee.
D. All personnel called for jury duty must abide by all of the above rules and must return to work if dismissed before the end of their regular work shift.
32 Fire MEG MOU 2023-2026
§ 12. Civil Subpoena/Criminal Subpoena
A. Civil Subpoena
When members of the District have been served a civil subpoena to appear in court as a witness due to actions as a District employee, the following procedure shall be followed:
a. Personnel will be paid at their regular hourly rate while they are in court. b. District transportation will be provided when available. If the employee uses his or her own transportation, he or she will be reimbursed by District at the prevailing mileage rate.
c. If the employee is required to appear in a court that is outside the Rancho Cucamonga Fire Protection District and this appearance requires the employee to buy a meal and/or lodging, he or she will be reimbursed.
If an extended appearance in court is necessary where lodging and meals would be required, authorization shall be obtained from the department head.
B. Criminal Subpoena
1. Pursuant to California Penal Code 1326 et. seq., if an employee is served with a criminal subpoena, the employee will be paid at the regular hourly rate while in court.
2. District transportation will be provided when available. If the employee uses their own transportation, they will be reimbursed by District at the prevailing mileage rate.
3. If the employee is required to appear in court outside the Rancho Cucamonga Fire Protection District and this appearance requires the employee to buy a meal, he or she will be reimbursed. If an extended appearance in court is necessary where lodging and meals would be required, authorization shall be obtained from the Fire Chief.
4. A criminal subpoena need not have a court stamp affixed. § 13. Leaves of Absence without Pay
A. Upon the written request of the employee, a leave of absence may be granted for a period not to exceed thirty (30) days by the Fire Chief, or a period not to exceed one (1) year by the Board of Directors.
B. Failure of the employee to return to his or her employment upon the termination of an authorized leave of absence shall constitute a separation from service by that employee.
C. Leave of absence without pay granted by the Board shall not be construed as a break in service or employment. During these periods, vacation, holiday, or sick leave credits shall not accrue. An employee reinstated after a leave of absence
33 Fire MEG MOU 2023-2026
without pay shall receive the same step in the salary range received when he or she began the leave of absence. Time spent on such leave without pay shall not count toward service for increases within the salary range or for the purposes of seniority. For the purposes of this section, the employee's merit increase eligibility date shall be adjusted to the date of reinstatement.
D. An employee on an approved leave of absence without pay may continue medical insurance coverage by paying the full cost to District, in advance, for each month, or portion thereof, of which he or she is absent.
§ 14. Natal and Adoption Pay
A. Natal and Adoption Leave with Pay
Employees within the bargaining unit are granted up to 120 hours of natal and adoption leave with pay for the birth or adoption of a child, however; use of the 120 paid hours does not extend any time charged under FMLA or CFRA or additional state and federal laws. Any paid time required beyond this initial 120 hours must be charged to sick leave, vacation, compensatory or floating holiday time.
B. Natal and Adoption Leave without Pay
The District shall provide employees up to four months natal and adoption leave for the birth or adoption of a child; such leave shall be pursuant to the provisions of the California Pregnancy Disability Act ("PDA"; California Government Code section 12945), if applicable. The District's PDA policy is incorporated herein by reference.
Employees on this leave of absence without pay beyond the four-month period will be responsible for the payment of medical, dental and optical premiums to keep the coverage in force during the leave of absence.
ARTICLE IV GRIEVANCE PROCEDURE
§ 1. Purpose
This article is intended to provide a fair and orderly procedure for the resolution of employee. A grievance is a claimed violation, misinterpretation, misapplication, or noncompliance with existing District codes, resolutions, written rules, policies,procedures, orders and regulations, or this document. This grievance procedure shall not apply to disciplinary matters or to reviews of performance evaluation reports or to discharge of probationary employees. Disciplinary matters include all warnings, written reprimands, suspensions, reductions in pay which are not the result of transfer or reassignment, demotions, dismissal or any other action which consists of a taking of property as said term is defined by the courts in the disciplinary context ( Reassignments and/or transfer that result in a loss of compensation shall not be deemed to be disciplinary actions.)
§ 2. Objectives
The grievance procedure is established to accomplish the following objectives:
34 Fire MEG MOU 2023-2026
A. To settle disagreements at the employee-supervisor level, informally if possible.
B. To provide an orderly procedure to handle grievances.
C. To resolve grievances as quickly as possible.
D. To correct, if possible, the cause of grievances to prevent future similar complaints.
E. To provide for a two-way system of communication by making it possible for levels of supervision to address problems, complaints, and questions raised by employees.
F. To reduce the number of grievances by allowing them to be expressed and thereby adjusted and eliminated.
G. To promote harmonious relations generally among employees, their supervisor and the administrative staff.
H. To assure fair and equitable treatment for all employees. § 3. General Provisions
A. Preparation of a grievance will be accomplished in such a manner and at a time that will not interfere with normally required work procedures.
B. The Board of Directors or its individual members shall not be approached by employees or their representatives at any time that the grievance is being processed.
C. Failure of the grievant to comply with time limitations specified in the grievance procedure shall constitute a withdrawal of the grievance, except upon a showing of good cause for such failure. Failure of District supervisory or administrative staff to comply with specified time limitations shall permit the grievant to proceed to the next step in the procedure. EXCEPTION: Notwithstanding the above, an extension of time is permitted with the mutual consent of both parties.
D. In the event a grievant elects to represent himself or herself or is represented by counsel other than that provided by the employee organization, the employee organization shall be apprised of the nature and resolution of the grievance if the issues involved are within the scope of said organization's representation rights.
E. If an individual named in a dispute is unavailable within the time period specified in these procedures, time limitations can be extended by mutual agreement of the representatives of the respective parties.
35 Fire MEG MOU 2023-2026
F. Any period of time specified in this rule for the giving of notice or taking of any action exclude weekends and holidays.
G. Unless otherwise specifically provided for herein, the term “days” shall mean business days of the District’s Administrative offices.
H. An arbitrator shall not have authority to determine if a matter is within the definition of a “grievance” and/or is timely filed or otherwise administratively prosecuted on a timely basis.
§ 4. Informal Grievance Procedure
Most problems or complaints can be settled if the employee will promptly, informally and amicably discuss them with his or her immediate supervisor. Such an initial discussion shall precede any use of the formal grievance procedure. If the immediate supervisor fails to reply to the employee within ten (10) days, or the employee is not satisfied with the decision, the employee may utilize the Formal Grievance Procedure.
Although invocation of teh Informal Grievance Procedure does not mandate submission of the grievance in writing, the immediate supervisor shall document the subsatnce of the grievable problem or complaint within seven (7) days of the date that he employee knew or should reasonably have known of the existence of the problem or complaint, shall constitute a waiver by the employee of the ability to utilize the grievance procedure.
§ 5. Formal Grievance Procedure
A. Step I
The employee and/or representative shall present the grievance, in writing and signed, to his or her immediate supervisor within fifteen (15) days of the date that cause for grievance arises. An official grievance form must be used stating names, dates, times, place, and nature of grievance, explaining how the grievance fits within the definition of “grievance” as set forth in § 1, above. The employee's supervisor shall attempt to resolve the grievance with the employee and shall submit his or her decision in writing to the employee within ten (10) days after receipt of the grievance. The employee shall have the right to appeal the decision of the supervisor to the Fire Chief.
B. Step II
1. If the grievance is not resolved to the satisfaction of the employee, the grievant has seven (7) days following receipt of the written response from his or her supervisor to file a written appeal to the Fire Chief or designated representative.
2. Written appeal to the Fire Chief or designated representative shall consist of the statement of the grievance and shall include a statement by the grievant's representative setting forth the reasons why the response of the employee's supervisor did not satisfactorily resolve the grievance and an indication of the action desired by the grievant. The written appeal shall explain why the grievance fits within the definition of “grievance” as set forth in § 1, above.
36 Fire MEG MOU 2023-2026
3. After submission of the written appeal, the Fire Chief or designee shall reply within three (3) days, in writing, to the grievant regarding the grievance. In event of rejection, reasons for so doing will be included in the response.
C. Step III
1. If the grievance is not resolved to the satisfaction of the employee, the grievant has seven (7) days following receipt of the written response from the Fire Chief or designee to file a written appeal to the Chief Executive Officer (CEO) of the District.
The CEO may designate a representative to act in his or her stead.
2. Written appeal to the CEO or designated representative shall consist of the statement of the grievance and shall include a statement by the grievant’s representative setting forth the reasons why the response of the Fire Chief or designee did not satisfactorily resolve the grievance, and an indication of the action desired by the grievant. The written appeal shall explain why the grievance fits within the definition of “grievance” as forth in § 1, above.
3. After submission of the written appeal, the CEO or designee shall reply in writing within fifteen (150 days, to the grievant regarding grievance. The reasons for the decision will be included in the response.
4. Section 1 PURPOSE defined a grievance as a claimed violation, misinterpretation, misapplication or noncompliance with existing District codes, resolutions, written rules, policies, procedures, orders and regulations, or this document. The decision by the CEO or designee shall address whether or not the complaint of the employee is grievable pursuant to the grievance definition set forth in § 1 above and/or is timely filed or otherwise administratively prosecuted on a timely basis. In the event that the CEO or designee determines that the employee’s complaint is not defined by § 1 above as a grievance and/or is not timely filed or otherwise administratively prosecuted in a timely basis, the CEO or designee shall proceed no further unless or until on application by the employee, a judgment is entered at the trial court level, indicative of the complaint being jurisdictionally grievable pursuant to the definitions set forth in § 1 above and/or pursuant to requirements of timeliness.
D. Step IV
1. If a grievance is not resolved by the CEO or designee and is deemed “grievable” pursuant to these rules and regulations, (a defined grievance and/or timely) then within seven (7) days of service by the CEO or designee of a grievance decision, the employee may further appeal to binding arbitration. Said appeal shall be timely only if it is received in the office of the CEO or designee not later than seven (7) days after service of the grievable decision by the CEO or designee.
2. The employee’s appeal shall state with specificity the identification of the District Codes, resolutions, written rules or regulations or sections of this document which
37 Fire MEG MOU 2023-2026
is claimed to have been violated. The appeal shall additionally state with specificity all allegations of facts upon which the grievance is based, and the specific relief sought.
3. Within ten (10) days after receipt of a valid appeal, the CEO or his designee shall request of the California State Conciliation and Mediation Service, that it submit a list of seven (7) arbitrators for hearing of the grievance. The CEO or designee shall direct that a copy of the list of arbitrators be sent to the employee and to the CEO or designee, as well.
4. Absent mutual selection of an arbitrator from either the submitted list or otherwise, the arbitrator shall be chosen by an initial flip of the coin, with the prevailing employee or CEO/designee having the option of making the first strike or directing that the opposing party make the first strike. Following alternate striking, the one remaining arbitration candidate shall be deemed the appointed arbitrator.
5. The arbitrator shall conduct the hearing at a time and place mutually agreed upon by both parties.
6. The hearing shall be memorialized by use of a certified shorthand reporter. The shorthand reporter shall be selected by the employee.
7. All fees and expenses of the arbitrator shall be borne equally by the parties.
8. All fees and expenses related to the securing of a representative and/or legal counsel, the preparation of transcripts, witness fees and other expenses attendant to the presentation of evidence, shall be borne by the party at whose direction said expense is incurred.
9. The per diem fee of the shorthand reporter shall be borne equally by the parties.
The cost of transcription shall be borne by the party ordering the transcript.
10. Neither the Federal or California State Rules of Evidence shall be binding upon evidentiary issues at the hearing. However, such authorities may be considered by the arbitrator in rendering evidentiary rulings. Further, the California Administrative Procedure Act shall specifically be of no application to the hearing process.
11. Although the Rules of Evidence shall not be strictly adhered to, hearsay that would be inadmissible in a civil or criminal proceeding cannot in and of itself support a finding by the arbitrator without corroboration. In general, the arbitrator shall admit evidence which is of such reliability that reasonable persons rely upon it in the conduct of serious matters such as the hearing.
12. The burdens of proof and production of evidence shall be borne by the employee and shall be by a preponderance of the evidence.
38 Fire MEG MOU 2023-2026
13. Not later than ten (10) days prior to the date of commencement of the hearing, the parties shall exchange lists of witnesses each intends to call at the hearing, and a list of documents it intends to introduce at the hearing. Said documents shall be attached to the notifications provided for herein, and the notifications shall actually be in receipt of the opposing party on or before the tenth (10 th) day prior to commencement of the hearing. Failure to comply with said requirements shall result in exclusion of witness testimony and/or rejection of exhibits not designated in the submissions.
14. The arbitrator shall be empowered to issue subpoenas for the production of persons and documents. The arbitrator shall designate the subpoena form to be utilized in such case. The California Code of Civil Procedure, the Evidence Code and other applicable statues shall apply to the validity and processing of subpoenas and to the method of service of the same.
15. No later than thirty (30) days after closure of the record, the arbitrator shall render a binding opinion regarding the issues at dispute, and shall submit the binding opinion to the employee, to the Fire Chief and to the Chief Executive Officer of the District.
16. The conduct of the arbitration proceedings shall be governed by this MOU, and not by CCP § 1280 et seq.
ARTICLE V DISCIPLINE
District and Union have met and conferred and adopted a disciplinary procedure which amends District Personnel Rule XXIV. This procedure conforms with California Government Code Sections 3250-3262, commonly referred to as the “Firefighter’s Bill of Rights” (FBOR).
The Fire Chief is considered “At will” and not subject to the general discipline procedures.
However, the Fire Chief is entitled to protection under the FBOR and will be afforded all FBOR rights. Under the FBOR, a Fire Chief cannot be removed without affording him or her written notice, the reason(s) for removal, and an opportunity for administrative appeal; and provides that the following is a non-exhaustive list of satisfactory reasons a Fire Chief may be removed:
1) implementation of goals or policies of the employing agency, 2) incompatibility of management styles, or 3) a change of administration.
ARTICLE VI SAFETY
§ 1. Compliance
District and employees shall conform to and comply with all health, safety, and sanitation requirements imposed by District, state or federal law or regulations adopted under state or federal law.
39 Fire MEG MOU 2023-2026
§ 2. No Discrimination
No employee shall be in any way discriminated against as a result of reporting any condition believed to be a violation of § 1 of this Article V. § 3. Safety Equipment
Should the employment duties of an employee in the unit, in the estimation of OSHA, require use of any equipment or gear to ensure the safety of the employee or others, District agrees to furnish such equipment or gear.
§ 4. Employee Responsibility
In the course of performing their normally assigned work, employees will be alert to observe unsafe practices, equipment, and conditions; as well as environmental conditions in their immediate area which represent health hazards and will report such conditions to their immediate supervisor. All employees shall make certain that all power machinery is equipped with safety devices properly installed and in working condition and that co-workers use utmost care in the handling of tools and equipment.
Employees shall report all accidents immediately to their immediate supervisors.
Reports shall be submitted on forms provided by District. § 5. Smoking Policy
Employees have agreed to accept and abide by the District “Smoking Policy,” as written and approved by the Chief.
ARTICLE VII MANAGEMENT RIGHTS
§ 1. Scope of Rights
It is understood and agreed that District possesses the sole right and authority to operate and direct the employees of District in all aspects, except as modified in this Memorandum of Understanding. These rights include, but are not limited to:
A. The right to determine its mission, policies, and standards of service to be provided to the public;
B. To plan, direct, control, and determine the operations or services to be conducted by employees of the District;
C. To determine the methods, means, and number of personnel needed to carry out District’s mission;
D. To direct the working forces;
E. To hire, assign, or transfer employees within District; F. To promote, suspend, discipline, or discharge employees;
40 Fire MEG MOU 2023-2026
G. To layoff or relieve employees due to lack of work or funds or for other legitimate reasons. (any provision within this MOU, City rules and regulations or any other policy or procedure promulgated by the City or any Department of the City which prohibits the imposition of layoffs, is deemed null and void); H. To make, publish, and enforce rules and regulations; I. To introduce new or improved methods, equipment, or facilities; J. To contract out for goods and services;
K. To take any and all actions as may be necessary to carry out the mission of District in situations of civil emergency as may be declared by the Board of Directors or Fire Chief;
L. To schedule and assign work;
M. To establish work and productivity standards.
§ 2. Emergency Conditions
If in the sole discretion of the Board of Directors or Fire Chief it is determined that extreme civil emergency conditions exist, including, but not limited to, riots, civil disorders, earthquakes, floods, or other similar catastrophes, the provisions of this MOU may be suspended during the time of the declared emergency, provided that wage rates and monetary fringe benefits shall not be suspended.
ARTICLE VIII EMPLOYEE RIGHTS
The Fire District shall provide thirty (30) minutes at a mutually agreeable time during the employee onboarding process for a Fire Management Employee Group (Group) representative to meet with a new Group covered employee and present the benefits of being a member of the Group. Onboarding of new employees occurs during the first working day at the start of a new pay-period up to 26 times per year. The Fire District will provide a calendar before the start of a new year. A Group representative will have up to 30 minutes of uninterrupted time to meet with new Group covered employees. Prior to the meeting, or in no case later than the meeting time, the Fire District will provide the name and job assignment of the new employee to the Group representative. The Fire District will provide the designated Group representatives with all available information about the employee as required under AB 119 within 30 days of the employees start date and the Fire District will provide the required information on all Group covered employees again as required under AB 119 at least three (3) times per year.
ARTICLE IX MAINTENANCE OF BENEFITS
All benefits enjoyed by the employees at the present time, which are not included in nor specifically changed by this MOU, shall remain in full force and effect; provided, however, that upon the mutual agreement of the parties, the meet and confer process may be initiated to address proposed changes. This Article is not to be interpreted as affecting any other rights
41 Fire MEG MOU 2023-2026
or obligations the respective parties have under § 3500, et seq., of the California Government Code.
ARTICLE X APPROVAL BY THE BOARD OF DIRECTORS
This MOU is subject to approval by the Board of Directors of District. The parties hereto agree to perform whatever acts are necessary both jointly and separately to urge the Board to approve and enforce this MOU in its entirety. Following approval of this MOU by the Board, its terms and conditions shall be implemented by appropriate ordinance, resolution, or other lawful action.
ARTICLE XI PROVISIONS OF LAW
A. It is understood and agreed that this MOU and employees are subject to all current and future applicable Federal and State laws and regulations and the current provisions of District law. If any part or provisions of this MOU is in conflict or inconsistent with such applicable provisions of those Federal, State, or District enactments or is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this MOU shall not be affected thereby. If any substantive part or provision of this MOU is suspended or superseded, the parties agree to re-open negotiations regarding the suspended or superseded part or provisions with the understanding that the total compensation to employees under this MOU shall not be reduced or increased as result of this Article.
B. District and Fire MEG recognize that under this MOU and in personnel matters not covered in this contract, the current District Personnel Rules as amended and effective shall apply. The Personnel Rules applicable to the Association shall not be changed for the duration of this MOU.
ARTICLE XII TERM
The term of this MOU shall run from July 1, 2023, through and including 11:59 p.m. on June 30, 2026.
ARTICLE XIII NEGOTIATION OF SUCCESSOR MOU
In the event either party wishes to negotiate a successor MOU, the parties agree that negotiations shall commence on or about December 1, 2025.
Fire MEG Fire District _________________________________ ____________________________ Date Date
42 Fire MEG MOU 2023-2026
_________________________________ _____________________________ Chad Comeau John R. Gillison Fire Battalion Chief City Manager _____________________________
Jenifer Phillips
Human Resources Director
43 Fire MEG MOU 2023-2026
Addendum A Fire Management MOU 2023-2026
Fire Business Manager
Fire Business Manager Classification - (effective the first full pay period following negotiation and implementation of an Employer Employee Relations Resolution) •Fire Business Manager position moves from Fire Support to Fire Management. •Salary Range ($9,376 - $11,966/month). The FSSA and Fire Meg Salary schedules would be amended automatically.
•The incumbent would see a minimum of 5% salary adjustment to the next nearest step effective the first full pay period following negotiation and implementation of an Employer Employee Relations Resolution.
•The incumbent would be eligible for next merit increase on existing anniversary date (2/10/2024).
•Administrative Leave would be 50 hours per fiscal year. •4% District paid contribution to deferred compensation effective the first full pay period following negotiation and implementation of an Employer Employee Relations Resolution. Deferred Compensation is paid into the 401a plan. This is the same benefit as the City's Finance Manager position, which we view as an equivalent position to Fire Business Manager.
Theses Sections would be incorporated into the next MOU assuming the EERR is adopted, and the position moves from FSSA to Fire MEG.
ATTACHMENT 3
RESOLUTION NO. FD 2023-XXX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
RANCHO CUCAMONGA FIRE PROTECTION DISTRICT,
RANCHO CUCAMONGA, CALIFORNIA, APPROVING THE
RANCHO CUCAMONGA FIRE MANAGEMENT EMPLOYEES
GROUP SALARY SCHEDULE FOR FISCAL YEAR 2023-2024.
WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District has determined that it is necessary for the efficient operation and management of the District that policies be established prescribing salary ranges, benefits and holidays, and other policies for employees of the Rancho Cucamonga Fire Protection District; and WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District has previously adopted salary resolutions that established salary ranges, benefits, and other terms of employment for employees of the Rancho Cucamonga Fire Protection District; and WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District recognizes that it is necessary from time to time to amend the salary resolution to accommodate changes in position titles, classifications salary ranges, additions and deletions of classifications, benefits, and other terms of employment; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Rancho Cucamonga Fire Protection District, Rancho Cucamonga, California to approve the attached Rancho Cucamonga Fire Management Employees Salary Schedule (Attachment 4) effective July 8, 2023.
PASSED, APROVED AND ADOPTED this 21st day of June 2023.
Resolution No. FD 2023-XXX
A B C D E F
FIRE CHIEF 96.87 101.72 106.80 112.13 117.14 123.63 Hourly 7,749.60 8,137.60 8,544.00 8,970.40 9,371.20 9,890.40 Bi-Weekly 16,790.80 17,631.47 18,512.00 19,435.87 20,304.27 21,429.20 Monthly FIRE DEPUTY CHIEF 79.47 83.45 87.62 92.01 96.60 101.43 Hourly 6,357.60 6,676.00 7,009.60 7,360.80 7,728.00 8,114.40 Bi-Weekly 13,774.80 14,464.67 15,187.47 15,948.40 16,744.00 17,581.20 Monthly FIRE BATTALION CHIEF 49.48 51.95 54.55 57.28 60.14 Hourly (56 Hour Workweek) 5,541.78 5,818.71 6,109.21 6,415.32 6,735.43 Bi-Weekly 12,007.19 12,607.20 13,236.63 13,899.87 14,593.44 Monthly FIRE BATTALION CHIEF 69.27 72.73 76.37 80.19 84.19 Hourly (40 Hour Workweek) 5,541.78 5,818.71 6,109.21 6,415.32 6,735.43 Bi-Weekly 12,007.19 12,607.20 13,236.63 13,899.87 14,593.44 Monthly FIRE MARSHAL 74.29 78.01 81.92 86.02 90.30 Hourly
5,943.20 6,240.80 6,553.60 6,881.60 7,224.00 Bi-Weekly
12,876.93 13,521.73 14,199.47 14,910.13 15,652.00 Monthly BC TRAINING OFFICER STIPEND (7.26% of 40 hr BC Current Step) 40 Hour Workweek 5.03 5.28 5.54 5.82 6.11 Hourly
56 Hour Workweek 3.59 3.77 3.96 4.16 4.37 Hourly
402.33 422.44 443.53 465.75 488.99 Bi-Weekly
871.72 915.28 960.98 1,009.13 1,059.48 Monthly
SALARY SCHEDULE
AS OF JULY 8, 2023
FIRE MANAGEMENT EMPLOYEES GROUP
ATTACHMENT 4
Fire Management Employees Group
Salary Schedule
July 8, 2023
DATE:June 21, 2023
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY: Jason C. Welday, Director of Engineering Services/City Engineer Linda Ceballos, Environmental Programs Manager
SUBJECT: Public Hearing to Consider a Resolution to Set Residential, Commercial, and Industrial Solid Waste Collection Rates within the City of Rancho Cucamonga. (RESOLUTION NO. 2023-062) (CITY)
RECOMMENDATION:
Staff recommends the City Council adopt a resolution approving the proposed solid waste rate adjustment request from Burrtec Waste Industries, Inc. (Burrtec) for residential, industrial and commercial accounts.
BACKGROUND:
The City of Rancho Cucamonga’s (City) franchise waste hauler, Burrtec Waste Industries, Inc. (Burrtec), submitted a written request for a biennial adjustment to the residential and commercial solid waste collection rates to the City on February 24, 2023, and a revised packet on March 27, 2023. This packet includes certain criteria required by the Franchise Agreement and the Amendment dated and signed on August 17, 2022. The Amendment revised the rate methodology to include a pass through of disposal and processing fees; a five percent cap on service fees; an increase to the household hazardous waste fee; and a new Senate Bill 1383 (SB 1383) Compliance Fee. The Amendment also includes a mid-cycle increase that would be effective in July 2024. Additionally, the City and Burrtec agreed to implement residential food waste collection required by SB 1383 in September 2022 and instead of implementing the increase in 2022 as initially proposed, the cost was agreed to be distributed over a five-year period ending in 2027.
SB 1383 was signed into law in September 2016 to help reduce short-lived climate pollutants to address climate change. To meet the statewide goal of reducing 75% of organic waste disposal by 2025, the State developed regulations that required local jurisdictions to adopt and enforce organic waste recycling beginning January 1, 2022. The City Council adopted Ordinance 989, adding Chapter 8.15 (Mandatory Organics Waste Disposal Reduction) to Title 8 Health and Safety of the Rancho Cucamonga Municipal Code, incorporating the requirements of SB 1383. In addition to the ordinance, the City Council approved an Amendment to the Franchise Agreement as described above.
The rate adjustment packet also includes a new collection program for multi-family complexes and commercial customers with bin service for the collection of bulky items. City staff and commercial property owners and managers met several years ago to discuss the impacts on businesses from illegally dumped bulky items and construction waste. Staff reviewed multi-family bulky item collection programs in neighboring communities and requested Burrtec complete a 12-
1 8
5 2
month bulky item pick-up pilot program. The target area for the pilot program included 19 multi- family complexes located in close proximity to businesses that had complained of the frequent illegal dumping of bulky household items, such as sofas and mattresses, and/or construction waste. During the pilot program, Burrtec worked closely with property management for each site to determine appropriate locations for bulky items and provided signage and outreach. Residents could simply place bulky items in a specific location and Burrtec would pick up the items weekly as scheduled. Prior to the pilot program, the bulky item pick-up fee was not bundled with trash and recycling for multi-family complexes and the residents and/or the property management or the businesses would be charged the per bulky item pick-up fee of $34.00 and a fee of $12.47 per item for each collection. The City partnered with Burrtec to create a uniform bulky item collection program for multi-family complexes and businesses that is modeled after successful programs in neighboring cities.
The proposed rate adjustment submittal has been reviewed by staff and reviewed by a third-party rate consultant to ensure it is in accordance with the terms of the agreed upon methodology outlined in the agreement with Burrtec. In addition, the rate packet was reviewed and discussed by the Public Works Subcommittee on April 26, 2023.
ANALYSIS:
In the Amendment to the Agreement approved by the City Council on August 17, 2022, the City and Burrtec agreed to implement residential food waste collection in September 2022 and instead of implementing a rate increase in 2022, as initially proposed, the cost was distributed over a five- year period ending in 2027. The amendment included the following elements that impact rates:
Rate Methodology
The revised methodology for calculating rates includes: 1) the pass through of landfill, disposal costs, 2) franchise fee and 3) Household Hazardous Waste (HHW) fee. The rate adjustment methodology now includes a “lookback” provision on the disposal and processing costs as well as the SB 1383 fee, at the start of each rate review period (to start in 2025 for 2024 actual increase). The proposed rate packet includes actual increases for 2023 and estimates for 2024 for the Proposition 218 public hearing process.
SB 1383 Compliance Fee
The SB 1383 fee covers the costs of the SB 1383 requirements that are not service related, such as outreach, record keeping, enforcement, edible food recovery program, and the procurement of recovered organic products. The SB 1383 fee does not include costs for hauling, disposal, and processing of organic products, which are included in the solid waste service component and disposal and processing cost components of the rate. The SB 1383 fee in the proposed 2023-24 rate adjustment packet includes outreach, record keeping, and enforcement. Funding for food waste pails, procurement of recovered organic products and edible food rescue, are currently being funded by a 2-year grant. The grant period is from May 2022 through May 2024. The SB 1383 fee will be reviewed at each rate adjustment period by the City and Burrtec to determine if changes are necessary, should costs change or grant funds be unavailable.
HHW Fee
The proposed rates include an increase to the HHW Disposal Fee, from 0.75% to 1.75%. The 1% increase would offset the costs associated with the growing cost of household hazardous waste disposal. This program has been successfully utilized by hundreds of residents each week for many years and works to eliminate illegal dumping and improper disposal of hazardous waste products from homes in the City, resulting in safer and healthier living for City residents.
1 8
5 2
New Program – Multi-family and Commercial Bulky Item Pick-up As previously described, the City partnered with Burrtec to create a uniform bulky item collection program for multi-family complexes and businesses that is modeled after successful programs in neighboring cities. Currently, there is an additional charge for multi-family and commercial bulky item pick-up requests, as well as per item charge. The City has found that illegal dumping is problematic in both multi-family complexes (during move out), and commercial complexes (contractor waste and household bulky items), with the burden of cost falling upon the property owner. City staff and Burrtec staff worked with complexes to gather some baseline data to assist in determining a bundled rate for the 2023-24 rate adjustment period. The proposed multi-family and commercial bulky item pick-up bundled rate, if approved, would add a new rate component of $0.38 per yard to the rate. If the bundled rate is approved, a designated bulky item spot would be identified and labeled within the multi-family complexes, and a regular weekly pick up of bulky items in multi-family complexes would be scheduled. Business complexes would not be on a set schedule since they are not regularly generating bulky items. If the new rate/program is approved, a business experiencing illegal dumping would contact Burrtec customer service to schedule a pick-up of the bulky item(s) at no additional cost to the property owner.
The table below shows rates that are currently on the rate schedule, and the proposed rate adjustment included in the packet from Burrtec.
Account Type Current Rate Proposed 2023 Rate
Proposed 2024
Rate**
Residential $ 29.01 $ 30.57 $ 33.44
Senior Residential $ 19.44 $ 20.48 $ 22.40
Multi-Family Barrel $ 27.76 $ 28.50 $ 30.08 Multi-Family Bin* $ 201.45 $ 240.01 $ 257.78
Commercial* $ 207.38 $ 237.85 $ 249.47
*Multi-family bin and commercial rates vary by bin size and frequency of service. **Based on estimated costs for the mid-cycle adjustment.
All proposed rates are displayed in Attachment 2. Attachment 3 provides a detailed breakdown of the residential rate.
Public Hearing Notice
The City mailed the required forty-five (45) day notification to the public in accordance with Proposition 218 by publishing notice of this hearing on May 2, 2023, in the Inland Valley Daily Bulletin, a local newspaper of general circulation, as well as a separate mailing to each residential and commercial address on May 5, 2023. The proposed revised rates will also be available for public review in the City Clerk’s Office. As of May 31, 2023, staff received a total of 10 inquiries, and 6 written protests.
FISCAL IMPACT:
The City receives a franchise fee from Burrtec, paid quarterly, which equals fifteen percent (15%) of the gross receipts received by Burrtec. The franchise fee amount is expected to change as the proposed adjusted rate is revised.
COUNCIL MISSION / VISION / VALUE(S) ADDRESSED:
This adjustment would meet the City Council’s goal of promoting and enhancing a safe and healthy community for all.
1 8
5 2
ATTACHMENTS:
Attachment 1 – Resolution No. 2023-062
Attachment 2 - Exhibit A- Proposed Solid Waste Collection Rate Attachment 3 - Exhibit B- Residential Breakdown
RESOLUTION NO. 23-XXX - Page 1 of 8
RESOLUTION NO. 23-XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, SETTING
RESIDENTIAL AND COMMERCIAL SOLID WASTE AND
RECYCLING COLLECTION RATES WITHIN THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA.
WHEREAS, the City Council of the City of Rancho Cucamonga has previously adopted Chapter 8.17 of Title 8 of the Rancho Cucamonga Municipal Code establishing Solid Waste Service Rules and Regulations and authorizing that the rates, fees and charges arising, directly or indirectly, under said legislation be adopted pursuant to resolution, and thereafter, be amended from time to time by resolution; and
WHEREAS, pursuant to the Rancho Cucamonga Municipal Code Sections 8.17.030 and
8.17.040, and agreements between the City of Rancho Cucamonga and Burrtec Waste Industries (“Burrtec”) for the collection, disposal, and processing of residential, and commercial refuse, recyclables, and green waste within the City of Rancho Cucamonga; and, WHEREAS, pursuant to the Rancho Cucamonga Municipal Code Sections 8.17.040, and the agreements, Burrtec has requested a change in the rates to be charged for residential, and commercial collection services, and has provided the City with the financial, operational, and other information; and
WHEREAS, based upon the amount of the rate changes requested and the information provided by Burrtec pursuant to Rancho Cucamonga Municipal Code Sections 8.17.040 and
8.17.030, the City Council has determined that such changes are justified and appropriate; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.
A. Resolution.
NOW, THEREFORE, the City Council of the City of Rancho Cucamonga does hereby find and resolve as follows:
Section 1. The facts set forth in the Recitals, of this Resolution, are true and correct.
Section 2.The City Council of the City of Rancho Cucamonga does hereby approve the proposed monthly rates for solid waste collection as follows:
ATTACHMENT 1
RESOLUTION NO. 23-XXX - Page 2 of 8
RESIDENTIAL RATES:
Residential Barrel Service 2023 Rate 2024 Rate
Standard $ 30.57 $ 33.44
Senior $ 20.48 $ 22.40
35-Gallon Barrel $ 25.78 $ 28.55
Multi-family (Per Unit) $ 28.50 $ 30.08
Additional Trash Barrel $ 8.49 $ 8.91
Additional Recycling Barrel $ 1.71 $ 1.80
Additional Mixed Organics $ 4.39 $ 4.61
Backyard Pull-Out Service $ 57.06 $ 59.91
Bear Proof Barrel $ 15.86 $ 16.65
Additional Residential
Services
2023 Rate 2024 Rate
Temporary Bins $ 123.25 $ 129.41
Temporary Bins-Extra Pick-
Up
$ 123.25 $ 129.41
Bulky Item (In excess of four
collections/five items per
collection)
2023 Rate 2024 Rate
Trip Charge $ 35.70 $ 37.49
Per Item Charge $ 13.09 $ 13.74
Residential Single and Multi-Family Bin Service
Includes 1 trash, 1 recycling, same size & frequency, and bulky item pick-up.
Size Frequency 2023 Rate 2024 Rate
1.5 CY 1 time a week $ 167.77 $ 182.50
1.5 CY 2 times a week $ 265.04 $ 287.23
1.5 CY 3 times a week $ 361.10 $ 390.70
1.5 CY 4 times a week $ 457.82 $494.87
1.5 CY 5 times a week $ 554.58 $ 599.04
1.5 CY 6 times a week $ 651.98 $ 703.94
2 CY 1 time a week $ 194.30 $ 210.18
2 CY 2 times a week $ 316.89 $ 341.31
2 CY 3 times a week $ 439.91 $ 472.89
2 CY 4 times a week $ 560.64 $ 602.08
2 CY 5 times a week $ 681.40 $ 731.27
2 CY 6 times a week $ 802.88 $ 861.26
3 CY 1 time a week $ 240.01 $ 257.78
3 CY 2 times a week $ 407.42 $ 435.54
3 CY 3 times a week $ 574.91 $ 613.41
3 CY 4 times a week $ 715.37 $ 762.73
3 CY 5 times a week $ 874.49 $ 931.77
3 CY 6 times a week $ 1,034.43 $ 1,101.69
4 CY 1 time a week $ 297.82 $ 318.13
4 Cy 2 times a week $ 509.17 $ 541.62
4 CY 3 times a week $ 720.28 $ 764.88
4 CY 4 times a week $ 931.26 $ 988.01
4 CY 5 times a week $ 1,142.24 $ 1,211.10
4 CY 6 times a week $ 1,353.59 $ 1,434.63
RESOLUTION NO. 23-XXX - Page 3 of 8
COMMERCIAL RATES:
Commercial Barrel Service-Trash & Recycling Service
Barrel Size Frequency 2023 Rate 2024 Rate
95 gallon 1 time a week $ 40.79 $ 42.79
95 gallon 2 times a week $ 66.83 $ 70.10
95 gallon 3 times a week $ 93.06 $ 97.60
95 gallon 4 times a week $ 119.17 $ 124.95
95 gallon 5 times a week $ 145.31 $ 152.35
95 gallon 6 times a week $ 171.56 $ 179.88
Additional 65 gallon 1 time a week $ 2.05 $ 2.15
Commercial Trash and Recycling Bin Service
* Includes 1 trash, 1 recycling, same size & frequency, and bulky item pick-up.
Bin Size Frequency 2023 Rate 2024 Rate
1.5 CY 1 time per week $ 160.73 $ 168.62
1.5 CY 2 times per week $ 253.67 $ 266.08
1.5 CY 3 times per week $ 345.35 $ 362.20
1.5 CY 4 times per week $ 437.73 $459.06
1.5 CY 5 times per week $ 530.14 $ 555.95
2 CY 6 times per week $ 623.16 $ 653.48
2 CY 1 time per week $ 186.79 $ 195.94
2 CY 2 times per week $ 304.61 $ 319.47
2 CY 3 times per week $ 422.77 $ 443.36
2 CY 4 times per week $ 538.67 $ 564.86
2 CY 5 times per week $ 654.58 $ 686.39
2 CY 6 times per week $ 771.20 $ 808.65
3 CY 1 time per week $ 237.85 $ 249.47
3 CY 2 times per week $ 396.18 $ 415.44
3 CY 3 times per week $ 555.34 $ 582.27
3 CY 4 times per week $ 713.96 $ 748.54
3 CY 5 times per week $ 872.58 $ 914.82
3 CY 6 times per week $ 1,031.92 $ 1,081.86
4 CY 1 time per week $ 288.46 $ 302.51
4 CY 2 times per week $ 492.85 $ 516.76
4 CY 3 times per week $ 696.97 $ 730.71
4 CY 4 times per week $ 900.96 $ 944.55
4 CY 5 times per week $ 1,104.95 $ 1,158.37
4 CY 6 times per week $ 1,309.29 $ 1,372.54
6 CY 1 time per week $ 370.80 $ 388.79
6 CY 2 times per week $ 664.92 $ 697.06
6 CY 3 times per week $ 959.05 $ 1,005.36
6 CY 4 times per week $ 1,253.54 $ 1,314.01
6 CY 5 times per week $ 1,547.64 $ 1,622.27
6 CY 6 times per week $ 1,841.71 $ 1,930.49
RESOLUTION NO. 23-XXX - Page 4 of 8
Green Waste Multi-Family/Commercial Bins
Size Frequency 2023 Rate 2024 Rate
95 gallon 1 time per week $ 48.76 $ 51.20
95 gallon 2 times per week $ 83.34 $ 87.52
95 gallon 3 times per week $ 113.38 $ 119.05
95 gallon 4 times per week $ 143.80 $ 150.99
95 gallon 5 times per week $ 182.98 $ 192.13
95 gallon 6 times per week $ 204.00 $ 214.21
2 CY 1 time per week $ 168.46 $ 176.88
2 CY 2 times per week $ 261.96 $ 275.08
2 CY 3 times per week $ 356.28 $ 374.09
2 CY 4 times per week $ 450.05 $ 472.58
2 CY 5 times per week $ 543.76 $ 570.97
2 CY 6 times per week $ 638.31 $ 670.25
3 CY 1 time per week $ 200.34 $ 210.37
3 CY 2 times per week $ 321.17 $ 337.23
3 CY 3 times per week $ 442.85 $ 465.01
3 CY 4 times per week $ 563.96 $ 592.18
3 CY 5 times per week $ 684.98 $ 719.27
3 CY 6 times per week $ 806.91 $ 847.29
Mixed Organics Multi-Family Barrels
Barrel Size Frequency 2023 Rate 2024 Rate
15 gallon 1 time per week $ 39.10 $ 41.07
15 gallon 2 times per week $ 63.82 $ 67.00
15 gallon 3 times per week $ 83.82 $ 88.01
15 gallon 4 times per week $ 104.20 $ 109.42
15 gallon 5 times per week $ 133.69 $ 140.37
15 gallon 6 times per week $ 144.37 $ 151.59
35 gallon 1 time per week $ 40.55 $ 42.58
35 gallon 2 times per week $ 66.61 $ 69.95
35 gallon 3 times per week $ 87.96 $ 92.37
35 gallon 4 times per week $ 109.71 $ 115.18
35 gallon 5 times per week $ 140.54 $ 147.57
35 gallon 6 times per week $ 152.56 $ 160.19
65 gallon 1 time per week $ 42.67 $ 44.80
65 gallon 2 times per week $ 70.76 $ 74.29
65 gallon 3 times per week $ 94.14 $ 98.85
65 gallon 4 times per week $ 117.90 $ 123.80
65 gallon 5 times per week $ 150.76 $ 158.29
65 gallon 6 times per week $ 164.82 $ 173.06
95 gallon 1 time per week $ 44.79 $ 47.04
95 gallon 2 times per week $ 74.91 $ 78.64
95 gallon 3 times per week $ 100.31 $ 105.32
95 gallon 4 times per week $ 126.10 $ 132.41
95 gallon 5 times per week $ 160.98 $ 169.03
95 gallon 6 times per week $ 177.07 $ 185.92
RESOLUTION NO. 23-XXX - Page 5 of 8
Additional Recycling Bin Service- Not available to accounts established after 6/30/17 Size Frequency 2023 Rate 2024 Rate
3 CY 1 time a week $ 65.81 $ 69.11
3 CY 2 times a week $ 117.63 $ 123.52
3 CY 3 times a week $ 157.84 $ 165.73
3 CY 4 times a week $ 199.78 $ 209.78
3 CY 5 times a week $ 240.53 $ 252.55
3 Cy 6 times a week $ 282.69 $ 296.83
Additional Recycling Bins- New Accounts
Size Frequency 2023 Rate 2024 Rate
1.5 CY 1 time a week $ 117.19 $ 123.05
1.5 CY 2 times a week $ 168.58 $ 177.00
1.5 CY 3 times a week $ 218.70 $ 229.63
1.5 CY 4 times a week $ 269.53 $ 283.00
1.5 CY 5 times a week $ 320.34 $ 336.35
1.5 CY 6 times a week $ 371.81 $ 390.39
2 CY 1 time a week $ 129.55 $ 136.02
2 CY 2 times a week $ 192.07 $ 201.68
2 CY 3 times a week $ 255.00 $ 267.76
2 CY 4 times a week $ 315.71 $ 331.50
2 CY 5 times a week $ 376.40 $ 395.22
2 CY 6 times a week $ 437.77 $ 459.65
4 CY 1 time a week $ 176.38 $ 185.21
4 CY 2 times a week $ 271.20 $ 284.74
4 CY 3 times a week $ 365.68 $ 383.96
4 CY 4 times a week $ 460.13 $ 483.12
4 Cy 5 times a week $ 554.50 $ 582.22
4 Cy 6 times a week $ 649.23 $ 681.69
6 CY 1 time a week $ 204.55 $ 214.79
6 CY 2 times a week $ 334.57 $ 351.30
6 CY 3 times a week $ 464.07 $ 487.28
6 CY 4 times a week $ 593.56 $ 623.24
6 CY 5 times a week $ 722.68 $ 758.81
6 CY 6 times a week $ 851.75 $ 894.32
Commercial Trash and Recycling Compacter Service
Size Frequency 2023 Rate 2024 Rate
3 CY 1 time a week $ 351.54 $ 368.83
3 CY 2 times a week $ 583.89 $ 612.53
3 CY 3 times a week $ 817.48 $ 857.51
3 CY 4 times a week $ 1,050.25 $ 1,101.65
3 CY 5 times a week $ 1,282.89 $ 1,345.63
3 CY 6 times a week $ 1,516.83 $ 1,590.99
4 CY 1 time a week $ 426.04 $ 446.97
4 CY 2 times a week $ 725.44 $ 760.96
4 CY 3 times a week $ 1,024.71 $ 1,074.82
4 CY 4 times a week $ 1,323.81 $ 1,388.52
4 CY 5 times a week $ 1,622.88 $ 1,702.16
RESOLUTION NO. 23-XXX - Page 6 of 8
4 CY 6 times a week $ 1,922.14 $ 2,016.00
6 CY 1 time a week $ 568.83 $ 596.72
6 CY 2 times a week $ 1,005.00 $ 1,054.13
6 CY 3 times a week $ 1,441.02 $ 1,511.39
6 CY 4 times a week $ 1,876.94 $ 1,968.53
6 CY 5 times a week $ 2,312.82 $ 2,425.66
6 CY 6 times a week $ 2,748.85 $ 2,882.94
ROLL-OFF RATES:
Trash Roll-Offs: Roll-off service rate is charged per service and subject to market rate disposal and processing fees charged per ton.
Size 2023 Rate 2024 Rate
10 Yard $ 701.27 $ 736.02
20 Yard $ 701.27 $ 736.02
40 Yard $ 701.27 $ 736.02
40 Yard Compactor $ 1,019.50 $ 1,070.15
Recycling Roll-Offs: Roll-off service is charged per service and subject to market and rate disposal and processing charged per ton.
Size 2023 Rate 2024 Rate
10 Yard- Inert (6 tons) $ 278.14 $ 292.05
40 Yard- C&D (8 tons) $ 217.93 $ 228.83
20/40 Yard- Recycling $ 217.93 $ 228.83
40 Yard-Recycling
Compactor
$ 217.93 $ 228.83
40 Yard-Wood/green
recycling
$ 217.93 $ 228.83
Additional Trash Roll-Off Fees
Size 2023 Rate 2024 Rate
Dry/Run Relocation Fee $ 73.74 $ 77.01
Tilthopper Rental $ 47.57 $ 49.95
End Dump (hourly rate) $ 218.11 $ 229.02
Roll-off Rental Fee (per day) $ 29.12 $ 30.58
Flat Bed $ 415.41 $ 436.18
MISCELLANEOUS AND FOOD WASTE SERVICE RATES:
Additional Miscellaneous Services Fees
Size 2023 Rate 2024 Rate
Extra Pick-Up (barrel): $ 24. 48 $ 25.70
Extra Pick-Up (bin) $ 51.64 $ 54.22
Extra Pick-Up (compactor): $ 103.29 $ 108.45
Extra Pick-Up (Food Waste Barrel) $ 70.09 $ 73.59
Barrel Replacement Fee-
commercial only
$ 86.84 $ 91.18
Bin Lock $ 13.60 $ 14.28
Illegal Bin Impound Fee $110.25 $115.76
Steam Clean (Per Container) $183.75 $192.94
RESOLUTION NO. 23-XXX - Page 7 of 8
Push out rates, per container, per service frequency
Distance Frequency 2023 Rate 2024 Rate
0-25 ft All N/C N/C
26-50 ft 1 time a week $47.28 $49.64
26-50 ft 2 times a week $94.56 $99.29
26-50 ft 3 times a week $141.86 $148.95
26-50 ft 4 times a week $189.15 $198.61
26-50 ft 5 times a week $236.42 $248.24
26-50 ft 6 times a week $283.71 $297.90
Over 50 ft 1 time a week $94.55 $99.28
Over 50 ft 2 times a week $189.13 $198.59
Over 50 ft 3 times a week $283.68 $297.86
Over 50 ft 4 times a week $378.23 $397.14
Over 50 ft 5 times a week $472.78 $496.42
Over 50 ft 6 times a week $567.36 $595.73
Food Waste Service Barrels
Size Frequency 2023 Rate 2024 Rate
15 gallon 1 time a week $ 47.46 $ 49.84
15 gallon 2 times a week $ 80.44 $ 84.47
15 gallon 3 times a week $ 108.71 $ 114.15
15 gallon 4 times a week $ 137.37 $ 144.23
15 gallon 5 times a week $ 175.11 $ 183.87
15 gallon 6 times a week $ 194.07 $ 203.76
35 gallon 1 time a week $ 59.93 $ 62.92
35 gallon 2 times a week $ 105.29 $ 110.55
35 gallon 3 times a week $ 145.92 $ 153.21
35 gallon 4 times a week $ 186.94 $ 196.30
35 gallon 5 times a week $ 237.07 $ 248.91
35 gallon 6 times a week $ 268.38 $ 281.80
65 gallon 1 time a week $ 77.27 $ 81.14
65 gallon 2 times a week $ 140.37 $ 147.40
65 gallon 3 times a week $ 198.93 $ 208.88
65 gallon 4 times a week $ 257.86 $ 270.75
65 gallon 5 times a week $ 325.56 $ 341.84
65 gallon 6 times a week $ 375.10 $ 393.85
2 CY 1 time a week $ 301.26 $ 316.32
2 CY 2 times a week $ 548.76 $ 576.19
2 CY 3 times a week $ 779.00 $ 817.96
2 CY 4 times a week $ 1,010.80 $ 1,061.35
2 CY 5 times a week $ 1,275.74 $ 1,339.52
2 CY 6 times a week $ 1,471.89 $ 1,545.49
Contamination Fee $51.64 $54.22
Barrel Exchange (1st is free) $18.01 $18.91
Bin Exchange (1st exchange free) $90.01 $94.51
Barrel Exchange $99.70 $104.69
RESOLUTION NO. 23-XXX - Page 8 of 8
Section 3.The proposed rates will become effective July 1, 2023.
Section 4.This Resolution shall become effective once adopted.
Section 5.The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 21st day of June, 2023.
Current
2022 Rate
Proposed
2023 Rate
Estimated
2024 Rate
Current
2022 Rate
Proposed
2023 Rate
Estimated
2024 Rate
Residential Barrel Service Commercial Trash & Recycling Bin Service with Bulky* Item Pick-up.
Includes 1 barrel each for trash, recycling, green waste Includes 1 trash & 1 recycling bin, same size & frequency Residential customers are billed every 2 months Size Freq Standard (95T, 65R, 95MO) 29.01$ 30.57$ 33.44$ 1.5 yrd 1 142.50$ 160.73$ 168.62$ new * Senior (95T, 65R, 95MO) 19.44$ 20.48$ 22.40$ 1.5 yrd 2 222.07$ 253.67$ 266.08$ new * Primary acct holder 60yr, of age or older are eligible to apply 1.5 yrd 3 300.46$ 345.35$ 362.20$ new 35-Gallon Barrel (35T, 65R, 95MO) 23.41$ 25.78$ 28.55$ 1.5 yrd 4 379.53$ 437.73$ 459.06$ new Multi-Family (95T, 65R, 15MO) 27.76$ 28.50$ 30.08$ 1.5 yrd 5 458.59$ 530.14$ 555.95$ new Additional Trash Barrel 8.09$ 8.49$ 8.91$ 1.5 yrd 6 538.24$ 623.16$ 653.48$ new Additional Recycling Barrel 1.63$ 1.71$ 1.80$ 2 yrd 1 164.47$ 186.79$ 195.94$ new Additional Mixed Organics Barrel 4.18$ 4.39$ 4.61$ 2 yrd 2 264.87$ 304.61$ 319.47$ new Backyard Pull-Out Service 54.34$ 57.06$ 59.91$ 2 yrd 3 365.64$ 422.77$ 443.36$ new Bear Proof Barrel (+ Regular Barrel) 15.10$ 15.86$ 16.65$ 2 yrd 4 464.27$ 538.67$ 564.86$ new Temporary Bins 117.38$ 123.25$ 129.41$ 2 yrd 5 562.93$ 654.58$ 686.39$ new Dump and Return 117.38$ 123.25$ 129.41$ 2 yrd 6 662.22$ 771.20$ 808.65$ new Bulky Items (in excess of 4 collections/5 items per collection) 3 yrd 1 207.38$ 237.85$ 249.47$ new - Trip Charge 34.00$ 35.70$ 37.49$ 3 yrd 2 340.96$ 396.18$ 415.44$ new - Per Item Charge 12.47$ 13.09$ 13.74$ 3 yrd 3 475.28$ 555.34$ 582.27$ new 3 yrd 4 609.10$ 713.96$ 748.54$ new
Multi-Family Trash & Recycling Bin Service with Bulky item* Pick-Up. 3 yrd 5 742.92$ 872.58$ 914.82$ new Includes 1 trash & 1 recycling bin, same size & frequency 3 yrd 6 877.46$ 1,031.92$ 1,081.86$ new Size Freq 4 yrd 1 249.88$ 288.46$ 302.51$ new
1.5 yrd 1 142.50$ 167.77$ 182.50$ new 4 yrd 2 421.74$ 492.85$ 516.76$ new
1.5 yrd 2 222.07$ 265.04$ 287.23$ new 4 yrd 3 593.33$ 696.97$ 730.71$ new
1.5 yrd 3 300.46$ 361.10$ 390.70$ new 4 yrd 4 764.84$ 900.96$ 944.55$ new
1.5 yrd 4 379.53$ 457.82$ 494.87$ new 4 yrd 5 936.31$ 1,104.95$ 1,158.37$ new
1.5 yrd 5 458.59$ 554.58$ 599.04$ new 4 yrd 6 1,108.11$ 1,309.29$ 1,372.54$ new
1.5 yrd 6 538.24$ 651.98$ 703.94$ new 6 yrd 1 317.39$ 370.80$ 388.79$ new 2 yrd 1 164.47$ 194.30$ 210.18$ new 6 yrd 2 563.59$ 664.92$ 697.06$ new 2 yrd 2 264.87$ 316.89$ 341.31$ new 6 yrd 3 809.80$ 959.05$ 1,005.36$ new 2 yrd 3 365.64$ 439.91$ 472.89$ new 6 yrd 4 1,056.34$ 1,253.54$ 1,314.01$ new 2 yrd 4 464.27$ 560.64$ 602.08$ new 6 yrd 5 1,302.55$ 1,547.64$ 1,622.27$ new 2 yrd 5 562.93$ 681.40$ 731.27$ new 6 yrd 6 1,548.67$ 1,841.71$ 1,930.49$ new 2 yrd 6 662.22$ 802.88$ 861.26$ new *Business to contact Burrtec for bulky item service pick-up. 3 yrd 1 201.45$ 240.01$ 257.78$ new
3 yrd 2 337.99$ 407.42$ 435.54$ new Commercial Trash & Recycling Barrel Service 3 yrd 3 474.57$ 574.91$ 613.41$ new Rate includes 1 trash & 1 recycling barrel 3 yrd 4 585.60$ 715.37$ 762.73$ new Size Freq
3 yrd 5 714.28$ 874.49$ 931.77$ new 95Gal 1 35.75$ 40.79$ 42.79$ 3 yrd 6 843.71$ 1,034.43$ 1,101.69$ new 95Gal 2 57.82$ 66.83$ 70.10$ 4 yrd 1 249.88$ 297.82$ 318.13$ new 95Gal 3 80.04$ 93.06$ 97.60$ 4 yrd 2 421.74$ 509.17$ 541.62$ new 95Gal 4 102.09$ 119.17$ 124.95$ 4 yrd 3 593.33$ 720.28$ 764.88$ new 95Gal 5 124.11$ 145.31$ 152.35$ 4 yrd 4 764.84$ 931.26$ 988.01$ new 95Gal 6 146.26$ 171.56$ 179.88$ 4 yrd 5 936.31$ 1,142.24$ 1,211.10$ new
4 yrd 6 1,108.11$ 1,353.59$ 1,434.63$ new
*Bulky items picked up once per week. Commercial Compactor Trash with Recycling Bin Service Includes 1 trash & 1 recycling bin, same size & frequency Push-Out Rates, per container, per service frequency Size Freq Distance Freq 3 yrd 1 319.07$ 351.54$ 368.83$
0 - 25 ft All N/C N/C N/C 3 yrd 2 527.52$ 583.89$ 612.53$ 26 - 50 ft 1 45.03$ 47.28$ 49.64$ 3 yrd 3 737.07$ 817.48$ 857.51$ 26 - 50 ft 2 90.06$ 94.56$ 99.29$ 3 yrd 4 945.88$ 1,050.25$ 1,101.65$ 26 - 50 ft 3 135.10$ 141.86$ 148.95$ 3 yrd 5 1,154.61$ 1,282.89$ 1,345.63$ 26 - 50 ft 4 180.14$ 189.15$ 198.61$ 3 yrd 6 1,364.53$ 1,516.83$ 1,590.99$ 26 - 50 ft 5 225.16$ 236.42$ 248.24$ 4 yrd 1 385.81$ 426.04$ 446.97$ 26 - 50 ft 6 270.20$ 283.71$ 297.90$ 4 yrd 2 654.06$ 725.44$ 760.96$ Over 50 ft 1 90.05$ 94.55$ 99.28$ 4 yrd 3 922.19$ 1,024.71$ 1,074.82$ Over 50 ft 2 180.12$ 189.13$ 198.59$ 4 yrd 4 1,190.15$ 1,323.81$ 1,388.52$ Over 50 ft 3 270.17$ 283.68$ 297.86$ 4 yrd 5 1,458.12$ 1,622.88$ 1,702.16$ Over 50 ft 4 360.22$ 378.23$ 397.14$ 4 yrd 6 1,726.24$ 1,922.14$ 2,016.00$ Over 50 ft 5 450.27$ 472.78$ 496.42$ 6 yrd 1 513.53$ 568.83$ 596.72$ Over 50 ft 6 540.34$ 567.36$ 595.73$ 6 yrd 2 903.89$ 1,005.00$ 1,054.13$ 6 yrd 3 1,294.15$ 1,441.02$ 1,511.39$
Additional Services Residential/Commercial 6 yrd 4 1,684.27$ 1,876.94$ 1,968.53$ Barrel Exchange (first exchange free) n/a 18.01$ 18.91$ new 6 yrd 5 2,074.38$ 2,312.82$ 2,425.66$ Bin Exchange (first exchange free) n/a 90.01$ 94.51$ new 6 yrd 6 2,464.63$ 2,748.85$ 2,882.94$ Bin Replacement + actual cost of bin n/a 99.70$ 104.69$ new Extra Pick-up (Barrel) 23.31$ 24.48$ 25.70$
Extra Pick-up (Bin) 49.18$ 51.64$ 54.22$
Extra Pick-up (Compactor) 98.37$ 103.29$ 108.45$ Extra Pick-up (FW Barrel) 66.75$ 70.09$ 73.59$ * Barrel Replacement Fee (Comm Only) n/a 86.84$ 91.18$ new * Lost, stolen, or damaged cart due to customer negligence Bin Lock 12.95$ 13.60$ 14.28$
Steam Clean - Per Container 175.00$ 183.75$ 192.94$ Contamination Fee 49.18$ 51.64$ 54.22$
Illegal Hauler Impound Fee - Per Day 105.00$ 110.25$ 115.76$
EXHIBIT A
CITY OF RANCHO CUCAMONGA, CALIFORNIA
2023 PROPOSED SOLID WASTE RATES
ALL RATES ARE BILLED MONTHLY UNLESS OTHERWISE NOTED
Service Type Service Type
ATTACHMENT 2
Current
2022 Rate
Proposed
2023 Rate
Estimated
2024 Rate
Current
2022 Rate
Proposed
2023 Rate
Estimated
2024 Rate
Green Waste Multi Family / Commercial Bin Service
Additional Recycling Bin Service - Existing Accounts Only Size Freq Not available to accounts established after 6/30/2017 2 yrd 1 n/a 168.46$ 176.88$ new Size Freq 2 yrd 2 n/a 261.96$ 275.08$ new
3 yrd 1 64.53$ 65.81$ 69.11$ 2 yrd 3 n/a 356.28$ 374.09$ new 3 yrd 2 115.91$ 117.63$ 123.52$ 2 yrd 4 n/a 450.05$ 472.58$ new 3 yrd 3 156.33$ 157.84$ 165.73$ 2 yrd 5 n/a 543.76$ 570.97$ new 3 yrd 4 198.41$ 199.78$ 209.78$ 2 yrd 6 n/a 638.31$ 670.25$ new 3 yrd 5 239.36$ 240.53$ 252.55$ 3 yrd 1 181.53$ 200.34$ 210.37$ 3 yrd 6 281.63$ 282.69$ 296.83$ 3 yrd 2 289.24$ 321.17$ 337.23$ 3 yrd 3 397.75$ 442.85$ 465.01$
Additional Recycling Bin Service - New Accounts 3 yrd 4 505.74$ 563.96$ 592.18$ Size Freq 3 yrd 5 613.67$ 684.98$ 719.27$
1.5 yrd 1 113.02$ 117.19$ 123.05$ 3 yrd 6 722.40$ 806.91$ 847.29$
1.5 yrd 2 163.13$ 168.58$ 177.00$ Barrel Size Freq
1.5 yrd 3 212.05$ 218.70$ 229.63$ 95Gal 1 45.14$ 48.76$ 51.20$
1.5 yrd 4 261.64$ 269.53$ 283.00$ 95Gal 2 76.94$ 83.34$ 87.52$
1.5 yrd 5 311.22$ 320.34$ 336.35$ 95Gal 3 104.47$ 113.38$ 119.05$
1.5 yrd 6 361.40$ 371.81$ 390.39$ 95Gal 4 132.34$ 143.80$ 150.99$ 2 yrd 1 125.16$ 129.55$ 136.02$ 95Gal 5 168.47$ 182.98$ 192.13$ 2 yrd 2 186.28$ 192.07$ 201.68$ 95Gal 6 187.51$ 204.00$ 214.21$ 2 yrd 3 247.75$ 255.00$ 267.76$
2 yrd 4 307.10$ 315.71$ 331.50$ Mixed Organics Multi Family Barrels - Stand Alone 2 yrd 5 366.45$ 376.40$ 395.22$ Size Freq
2 yrd 6 426.46$ 437.77$ 459.65$ 15 Gal 1 n/a 39.10$ 41.07$ new 4 yrd 1 171.29$ 176.38$ 185.21$ 15 Gal 2 n/a 63.82$ 67.00$ new 4 yrd 2 264.56$ 271.20$ 284.74$ 15 Gal 3 n/a 83.82$ 88.01$ new 4 yrd 3 357.55$ 365.68$ 383.96$ 15 Gal 4 n/a 104.20$ 109.42$ new 4 yrd 4 450.47$ 460.13$ 483.12$ 15 Gal 5 n/a 133.69$ 140.37$ new 4 yrd 5 543.36$ 554.50$ 582.22$ 15 Gal 6 n/a 144.37$ 151.59$ new 4 yrd 6 636.56$ 649.23$ 681.69$ 35 Gal 1 n/a 40.55$ 42.58$ new 6 yrd 1 199.51$ 204.55$ 214.79$ 35 Gal 2 n/a 66.61$ 69.95$ new 6 yrd 2 327.81$ 334.57$ 351.30$ 35 Gal 3 n/a 87.96$ 92.37$ new 6 yrd 3 455.60$ 464.07$ 487.28$ 35 Gal 4 n/a 109.71$ 115.18$ new 6 yrd 4 583.38$ 593.56$ 623.24$ 35 Gal 5 n/a 140.54$ 147.57$ new 6 yrd 5 710.79$ 722.68$ 758.81$ 35 Gal 6 n/a 152.56$ 160.19$ new 6 yrd 6 838.20$ 851.75$ 894.32$ 65Gal 1 n/a 42.67$ 44.80$ new 65Gal 2 n/a 70.76$ 74.29$ new
Extra Recycling Barrel Commercial 65Gal 3 n/a 94.14$ 98.85$ new 65Gal 1 1.95$ 2.05$ 2.15$ 65Gal 4 n/a 117.90$ 123.80$ new 65Gal 5 n/a 150.76$ 158.29$ new
65Gal 6 n/a 164.82$ 173.06$ new
Trash Roll-Off Service 95Gal 1 n/a 44.79$ 47.04$ new * 10 Yard 652.49$ 701.27$ 736.02$ 95Gal 2 n/a 74.91$ 78.64$ new * 20 Yard 652.49$ 701.27$ 736.02$ 95Gal 3 n/a 100.31$ 105.32$ new * 40 Yard 652.49$ 701.27$ 736.02$ 95Gal 4 n/a 126.10$ 132.41$ new * 40 Yard Compactor 952.62$ 1,019.50$ 1,070.15$ 95Gal 5 n/a 160.98$ 169.03$ new 95Gal 6 n/a 177.07$ 185.92$ new
* Roll-Off and compactor service rate is charged per service Recycling Roll-Off Service Food Waste Service - Bins
* 10 Yard - Inert (6Tons) 258.20$ 278.14$ 292.05$ Size Freq * 40 Yard - C&D (8Tons) 202.31$ 217.93$ 228.83$ 2 yrd 1 312.34$ 301.26$ 316.32$ * 20/40 Yard - Recycling 202.31$ 217.93$ 228.83$ 2 yrd 2 574.03$ 548.76$ 576.19$ * 40 Yard - Recycling Compactor 202.31$ 217.93$ 228.83$ 2 yrd 3 818.86$ 779.00$ 817.96$ * 40 Yard - Wood/Green Waste 202.31$ 217.93$ 228.83$ 2 yrd 4 1,065.21$ 1,010.80$ 1,061.35$ * Roll-Off service rate is charged per service and subject to 2 yrd 5 1,343.19$ 1,275.74$ 1,339.52$ disposal and processing fees charged by ton. Also subject to 2 yrd 6 1,555.48$ 1,471.89$ 1,545.49$ Transportation Fee, if customer request haul to specific location Food Waste Service - Barrels
Additional Roll Off Services Size Freq
- Dry/Run Relocation Fee 69.85$ 73.34$ 77.01$ 15 Gal 1 n/a 47.46$ 49.84$ new - Tilthopper Rental 45.30$ 47.57$ 49.95$ 15 Gal 2 n/a 80.44$ 84.47$ new - End Dump (Hourly Rate) 202.46$ 218.11$ 229.02$ 15 Gal 3 n/a 108.71$ 114.15$ new (Plus actual Disposal Fee) 15 Gal 4 n/a 137.37$ 144.23$ new - Roll Off Rental Fee $27.73 $29.12 $30.58 15 Gal 5 n/a 175.11$ 183.87$ new (Per Day after 7 days if not scheduled for weekly service) 15 Gal 6 n/a 194.07$ 203.76$ new - Flat Bed $395.63 $415.41 $436.18 35 Gal 1 n/a 59.93$ 62.92$ new 35 Gal 2 n/a 105.29$ 110.55$ new
35 Gal 3 n/a 145.92$ 153.21$ new
35 Gal 4 n/a 186.94$ 196.30$ new
35 Gal 5 n/a 237.07$ 248.91$ new
35 Gal 6 n/a 268.38$ 281.80$ new
65 Gal 1 79.92$ 77.27$ 81.14$
65 Gal 2 146.54$ 140.37$ 147.40$
65 Gal 3 208.71$ 198.93$ 208.88$
65 Gal 4 271.23$ 257.86$ 270.75$
65 Gal 5 342.12$ 325.56$ 341.84$
65 Gal 6 395.67$ 375.10$ 393.85$
EXHIBIT A
CITY OF RANCHO CUCAMONGA, CALIFORNIA
2023 PROPOSED SOLID WASTE RATES
ALL RATES ARE BILLED MONTHLY UNLESS OTHERWISE NOTED
Service Type Service Type
Burrtec Waste Industries, Inc
City of Rancho Cucamonga - Residential Rates
Effective 7/1/23
Current Revised 2023 2024
2021-2023 Amendment Proposed Estimated
Components Rate Rate Rate Rate
Service 15.45$ a/ 15.45$ 16.79$ a/ 17.63$ a/
Recovering prior Shortfall 0.24 0.57
Shortfall (to hold Max Allowed) (0.45) (0.57) (1.17)
Net Service 15.24$ 15.45$ 16.22$ 5.0% 17.03$ 5.0% 1) Landfill / Disposal Transfer - 95Gal 5.63 5.47 5.02 5.27 2) Green Waste Disposal - 95Gal 3.43
3) MRF Fees - 65 Gal 2.02 2.07 1.96 2.06
Disposal/Processing Total 11.08$ 7.54$ 6.98$ 7.33$ SB1383
Program Compliance 0.77 0.77 0.77
2b) Mixed Organics Processing - 95 Gal 5.22 5.34 5.61 SB1383 Cost 5.99$ 6.11$ 6.38$
Recovering prior Shortfall 1.50
Shortfall (to hold Max Allowed) (3.38)
Burrtec Credit (4.83) (3.86) (2.90)
Franchise Fees 15.0% 4.35 15.0% 4.35 4.59 5.01
HazMat Fees 0.75% 0.22 1.75% 0.51 0.53 0.59
City Fees Total 4.57$ 4.86$ 5.12$ 5.60$
Total 29.01$ 29.01$ 30.57$ 33.44$
Changes vs Current Rate -$ 1.56$ 2.87$
0.00% 5.38% 9.39%
All Senior Rates (35Gal Barrels) 19.44$ 19.44$ 20.48$ 22.40$ CPI Service Max Cap 5.00% 5.00% 5.00%
Note: 2021-23 Maximum Allowed Rate 29.01$
2019-2020 2021 2022 2023
a/ Avg CPI comparing 2 years 4.74% 0.00% 8.70% 5.00% est. 1) Landfill / Disposal Transfer
West Valley Fee per Ton 50.47$ Est 49.00$ 2022 53.26$ 2023 es 55.92$ 2024 est Annual Tons/House 1.3395 1.3395 1.2084 origina 1.2084 original Weekly Lbs/House 51.52 51.52 43.48 adjuste 43.48 adjusted Disposal Component per Home 5.63$ 5.47$ 5.02$ 5.27$ 2) Green Waste Memo:
West Valley Fee per Ton 52.48$ Est Additional Trash Density Annual Tons/House 0.7832 moved to Organics
Weekly Lbs/House 30.12 3.00 3.00
Disposal Component per Home 3.43$
2b) Mixed Organics Processing Mixed Organics Mixed Organics Mixed Organics West Valley Fee per Ton 80.00$ 86.96$ 2023 es 91.31$ 2024 est Annual Tons/House 0.7832 0.6590 origina 0.6590 original Weekly Lbs/House 30.12 28.34 adjuste 28.34 adjusted
Disposal Component per Home 5.22$ 5.34$ 5.61$
3) Recycling
Recycling (Rev)/Cost per Ton 70.12$ 2020 71.92$ 77.32$ 2023 es 81.19$ 2024 est Annual Tons/House 0.3456 0.3456 0.3042 0.3042
Weekly Lbs/House 13.29 13.29 11.70 11.70
Processing Component per Home 2.02$ 2.07$ 1.96$ 2.06$ Total Disposal/Processing 11.08$ 12.76$ 12.32$ 12.94$ ATTACHMENT 3
Exhibit B
Public Hearing Item G1 - Additional Material - 06/21/2023 Regular City Council Meeting Public Hearing - June 21, 2023
Solid Waste SB1383
Rate Adjustment Protests
Date Name Reason for Protest
1 2
3 4
5 6
7 5/8/2023 Kristie Renee Sepulveda‐Burchit
5/9/2023 Keith Proctor
Discount rate should apply to those with disabilites as well.
Opposed to rate, due to being a senior living on a fixed income.
Increase in utilities has an overall impact on middle class families.
Opposes the rate increase.
Opposes due to less trash being disposed of, and it increases the time spent seperating trash.
Opposes the rate increase.
5/11/2023 Heidi Soderholm
5/13/2023 Michell Young
5/16/2023 Gerald Trudeau
5/17/2023 Aimee Tagle‐Billones
6/20/2023 Anil Kh Should not increase rate, if food is already composted at home.
a
DATE:June 21, 2023
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY: Noah Daniels, Finance Director
SUBJECT: Public Hearing of the City of Rancho Cucamonga to Consider a Resolution to Order the Dissolution of Landscape Maintenance District No. 5. and Authorization of an Appropriation in the Amount of $26,010. (RESOLUTION NO. 2023-063) (CITY)
RECOMMENDATION:
It is recommended that the City Council conduct a public hearing to consider a Resolution to order the dissolution of Landscape Maintenance District No. 5 (the “District”) and authorization of an appropriation in the amount of $26,010. The Resolution should be considered after conducting a public hearing to receive public testimony on the dissolution of the District.
BACKGROUND:
The District was formed under the Landscape and Lighting Act of 1972 (the “1972 Act”) in June 1984. The District provides for the administration, maintenance, operations, and servicing of the Tot Lot within a subdivision at the northeast corner of Turner Avenue and 26 th Street.
There are 44 single-family units within the District, currently levied $56.65 a year for the services provided through their property tax bill. Staff sought stakeholder input by meeting with the residents in June 2022 to discuss the District’s financial position and alternatives for the Tot Lot.
Staff reviewed options for the Tot Lot based on input from the community; however, the costs to provide those services would require the current levy to increase significantly. Additionally, the community was disinterested in taking the Tot Lot and maintaining it with a homeowner’s association.
On May 3, 2023, the City Council adopted Resolution No. 2023-039, declaring its intention to dissolve the District and set a public hearing to be held on June 21, 2023, to hear from any members of the public and consider the proposed dissolution.
ANALYSIS:
Landscape maintenance districts were intended to be fiscally self-sustaining, yet the District has consistently operated at a deficit as the operating costs exceed the annual assessment revenues, resulting in a small portion of the fund balance being used each year to provide services. The structural budget issues are due to its size and limitations with what service can be provided and the ability to raise revenues to meet those needs. As previously mentioned, the District comprises 44 properties that receive maintenance services on the Tot Lot. As a result of the unusually small size of the District, it does not benefit from any economies of scale the same way as other larger special districts in the City.
1 8
9 6
Additionally, since the District must follow special reporting and rules under the 1972 Act, the costs to administer the District are especially burdensome compared to larger special districts.
The District’s annual assessment is not at the maximum allowable amount, however, staff determined that the District would still remain in deficit even after raising the rate to the maximum allowable amount, eventually depleting its fund balance. Staff calculated an estimated rate of $215 per year as the minimum assessment rate necessary with current operating costs; however, at that estimated rate, only some of the community’s requests would be met. Therefore, it is unlikely that a majority of properties within the District would approve an increase through a Proposition 218 process. It should be noted that the estimated costs for Proposition 218 are $75,000, which exceeds the available fund balance for the District.
Generally, staff does not recommend the dissolution of a special district, as doing so eliminates services provided to the public. However, due to a unique set of circumstances, the District is recommended for dissolution. The first is an extremely small district – servicing only the Tot Lot for a community of 44 residents. The second is that the 44 properties are also levied within LMD 1, a larger district with economies of scale for administrative overhead. Adding the District’s improvement to LMD 1 would have a minimal financial impact. Additionally, any remaining fund balance from the District would be transferred to LMD 1 to negate the immediate financial impact and maintain existing service levels.
Following the public hearing and receiving public comment, the City Council may consider the adoption of the Resolution ordering the dissolution of the District. If the District is dissolved, the City Council will no longer levy an annual assessment on these properties and the Tot Lot will be added as an improvement in the LMD 1 Engineer’s Report.
FISCAL IMPACT:
If the City Council adopts the resolution ordering the dissolution, then the annual assessment for the District levied on the 44 properties would be eliminated. If approved, appropriations would be necessary to transfer the estimated remaining balances of the District to LMD 1 to be utilized for the Tot Lot
1135303-9130 – Landscape Maintenance District No. 5 – Transfer Out for $26,010 1130000-8135 – Landscape Maintenance District No. 1 – Transfer In for $26,010 COUNCIL MISSION / VISION / VALUE(S) ADDRESSED:
This item addresses critical elements in both the mission and vision statements for the City Council. By adopting the Resolution, the City Council is addressing a fiscally unsustainable District and allowing the public an opportunity to participate in the decision-making process through a public hearing.
ATTACHMENTS:
Attachment 1 - Resolution Ordering the Dissolution of LMD 5
Resolution No. 2023-XXX – Page 1 of 3
ATTACHMENT 1
RESOLUTION NO. 2023-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, ORDERING THE
DISSOLUTION OF LANDSCAPE MAINTENANCE DISTRICT
NO. 5
WHEREAS, the City Council of the City of Rancho Cucamonga (the "City Council") has previously formed Landscape Maintenance District No. 5 (the "District") pursuant to the terms of the "Landscaping and Lighting Act of 1972" (the "Act"), which is Division 15, Part 2 of the Streets and Highways Code of the State of California, which encompasses the parcels (the “Property”) identified on the boundary map attached hereto as Exhibit A; and WHEREAS, at this time the City staff has determined it is no longer necessary to levy assessments within the District; and
WHEREAS, as a result of the foregoing, the City Council desires to declare its intention to approve a change of organization of the District to dissolve the District; and WHEREAS, on May 3, 2023, the City Council adopted Resolution No. 2023-039 initiating proceedings pursuant to Article 2 of Chapter 2 of the 1972 Act to dissolve the District and setting the time and place for a public hearing thereon; and
WHEREAS, notice of the public hearing was given in the form and manner provided by law; and.
WHEREAS, on June 21, 2023, the City Council held a public hearing to consider the proposed dissolution of the District.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the City Council of the City of Rancho Cucamonga as follows:
1. The above recitals are all true and correct.
2. The City Council hereby approves a change in the organization of the District by ordering the dissolution of the District. The City Manager is hereby directed to take any actions necessary to reflect the dissolution of the District.
Resolution No. 2023-XXX – Page 2 of 3
ATTACHMENT 1
PASSED, APPROVED, and ADOPTED this _____ day of __________ 2023.
Resolution No. 2023-XXX – Page 3 of 3
ATTACHMENT 1
EXHIBIT “A”
DATE:June 21, 2023
TO:President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY: Mike McCliman, Fire Chief
Noah Daniels, Finance Director
Darci Vogel, Fire Business Manager
Kelly Guerra, Special Districts Analyst
SUBJECT: Public Hearing to Consider Adoption of a Resolution Making Determinations Regarding the Proposed Annexation of Territory (Annexation No. 23-1, Assessor Parcel Number 0229-162-04, 0229-162- 05, 0229-162-11, 0229-162-12, and 0229-162-13) into an Existing Community Facilities District, Calling a Special Election, and Authorizing Submittal of Levy of Special Taxes to the Qualified Electors. (RESOLUTION NO. FD 2023-014) (FIRE)
RECOMMENDATION:
Staff recommends that the Fire Protection District Board adopt a resolution making determinations and authorizing the submittal of the levy of special taxes to the qualified electors of territory proposed to be annexed (Annexation No. 23-1, Assessor Parcel Number (APN) 0229-162-04, 0229-162-05, 0229-162-11, 0229-162-12, and 0229-162-13) to existing Community Facilities District No. 85-1 (“CFD No. 85-1”) and calling a special election for such purpose.
BACKGROUND:
Patriot Development Partners, property owner of APN 0229-162-04 (12987 Whittram Avenue), APN 0229-162-05 (13045 Whittram Avenue), APN 0229-162-11 (12997 Whittram Avenue), APN 0229-162-12 (13003 Whittram Avenue), and APN 0229-162-13 (12981 Whittram Avenue) (“Annexation Area”), has submitted an application to construct a new commercial concrete tilt-up warehouse. The property owner is conditioned by the Fire Protection District to annex such property into the existing CFD No. 85-1 to satisfy fire protection service mitigation impacts.
On May 17, 2023, the Board initiated formal annexation proceedings pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (the “Mello-Roos Act”) by adopting Resolution No. FD 2023-014 approving the annexation map of the territory proposed to be annexed into existing CFD 85-1 and Resolution No. FD 2023-014 approving the intention to annex the Territory in the existing CFD 85-1. This Resolution, among other things, declared the intention of the Board of Directors to levy a special tax within the Annexation Area to finance fire protection and suppression services and setting a public hearing regarding the proposed annexation to be held on June 21, 2023.
Through adoption of this resolution before the Board this evening, the Board will accomplish the following:
1 8
1 4
•Make certain determinations as set forth in the Resolution; •Call for a special election to be conducted on June 21, 2023; •Authorize submittal of the levy of the special tax to qualified electors of the Annexation Area at such Special election.
ANALYSIS:
The annexation of the Annexation Area into CFD No. 85-1 will satisfy the conditions of development relating to mitigating impacts upon fire protection services. The property owner is in full support of the annexation of the property being annexed. Pursuant to the Mello-Roos Act, whenever there have been less than 12 persons registered to vote within the Annexation Area for each of the 90 days preceding the public hearing pertaining to such annexation, the vote shall be by the landowners within the Annexation Area. Therefore, in the current circumstances, the election will be a landowner’s vote, the landowner having one vote per acre or portion thereof of land within the Annexation Area.
The property owner has executed a “Consent and Waiver” of time frames relating to the election. Exhibit “C” of the Resolution sets forth the rate and method of apportionment of the special tax proposed to be levied within the Annexation Area which is consistent with the special tax levied upon all territory currently within CFD No. 85-1.
At the special election to be held on June 21, 2023, the landowner(s) will be entitled to cast its ballot. The Board Secretary will then canvas the ballot, if received. At the next Fire Board meeting, the Board will consider adopting the resolution declaring the election results and the annexation of the Annexation Area to CFD 85-1. If 2/3 of the votes are cast in favor of the levy of the special tax, the Board may declare the property to be annexed.
The Public Notice regarding the Public Hearing has been advertised in the Inland Valley Daily Bulletin.
FISCAL IMPACT:
The special tax revenues that are collected of the CFD No. 85-1 are used to pay for public facilities and services in the District area. Costs related to the administering of the District are the responsibility of the property owners within the District. Annexation of the property will ensure the property owner covers the cost of increased demand for fire services resulting from new development within the Territory.
COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
This item brings together portions of the Council’s vision and core value by providing a sustainable City and promoting a safe and healthy community for all. Annexation of the property into CFD 85-1 ensures the delivery of vital fire and life safety services to all residents while satisfying fire protection service mitigation impacts.
ATTACHMENTS:
Attachment 1 - Resolution No. FD 2023-014, Call for Special Election Annexation 23-1
Resolution No. FD 2023-XXX - Page 1 of 11
ATTACHMENT 1
RESOLUTION NO. FD 2023-XXX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO
CUCAMONGA FIRE PROTECTION DISTRICT, RANCHO CUCAMONGA,
CALIFORNIA, MAKING CERTAIN DETERMINATIONS REGARDING THE PROPOSED ANNEXATION OF TERRITORY (ANNEXATION NO. 23-1) TO AN EXISTING COMMUNITY FACILITIES DISTRICT (CFD 85-1) AND
CALLING A SPECIAL ELECTION AND AUTHORIZING THE SUBMITTAL
OF THE LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS OF
SUCH TERRITORY
WHEREAS, the Board Of Directors (the “Board of Directors”) of the Rancho Cucamonga Fire Protection District (the “Fire Protection District”), Rancho Cucamonga, California, has previously declared its intention and held and conducted proceedings relating to the annexation of territory to an existing community facilities district pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Article 3.5 thereof (the “Act”). The existing Community Facilities District has been designated as Community Facilities District No. 85-1 (the “District”); and, WHEREAS, notice of a public hearing relating to the annexation of territory to the District, the extent of the territory to be annexed (the “Annexation Area”), the furnishing of certain public services and all other related matters has been given; and,
WHEREAS, it has now been determined that written protests have not been received by 50% or more of the registered voters residing either within the Annexation Area or the District and/or property owners representing more than one-half (1/2) or more of the area of land within the Annexed Area or within District; and,
WHEREAS, inasmuch as there have been less than twelve (12) persons registered to vote within the Annexation Area for each of the 90 preceding days, this legislative body desires to submit the levy of the required special tax to the landowners of the Annexation Area, said landowners being the qualified electors as authorized by law.
NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve as follows:
1. Recitals. The above recitals are all true and correct.
2. Determinations. It is determined by this Board of Directors that:
A. all proceedings prior hereto were valid and taken in conformity with the requirements of law, and specifically the provisions of the Act;
B. less than twelve (12) registered voters have resided within the Annexation Area for each of the ninety (90) days preceding the close of the public hearing and, consequently, the qualified electors shall be the landowners of the Annexation Area and each landowner who is the owner of record as of the close of the public hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within the Annexation Area;
C. the time limit specified by the Act for conducting an election to submit the levy of the special taxes to the qualified electors of the Annexation Area and the requirements for
Resolution No. FD 2023-XXX - Page 2 of 11
ATTACHMENT 1
impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the Annexation Area;
D. the Secretary, acting as the election official, has consented to conducting any required election on a date which is less than 125 days following the adoption of this resolution; and
E. the public services proposed to be financed from the proceeds of special taxes to be levied within the Annexation Area are necessary to meet increased demands placed upon the Fire Protection District as a result of development and/or rehabilitation occurring in the Annexation Area.
3. Boundaries of Annexed Area. The boundaries and parcels of land in the Annexation Area and on which special taxes are proposed to be levied in order to pay the costs and expenses for the public services described in Section 4 below are generally described as follows:
All that property and territory proposed to be annexed to the District, as said property is shown on a map as previously approved by this legislative body, said map entitled “Annexation Map No. 23-1 of Community Facilities District No. 85-1 of the Rancho Cucamonga Fire Protection District, County of San Bernardino, State of California” reference is made to the attached and incorporated Exhibit “A” (the “Annexation Map”), and a copy of which is on file in the Office of the Secretary and shall remain open for public inspection.
4. Services and Facilities Authorized to be Financed by the District. The services that are authorized to be financed by the District from the proceeds of special taxes levied within the existing District are generally described in Exhibit “B” (the “Services and Facilities”) attached hereto and incorporated herein by this reference and all costs associated the District, administration of the District, the determination of the amount of special taxes to be levied, the costs of collection any special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the District.
If and to the extent feasible the Services and Facilities shall be provided in common within the existing District and the Territory.
5. Special Tax. Except where funds are otherwise available and subject to the approval of the qualified electors of the Annexation Area, a special tax sufficient to pay for the services described in Section 4 that are required for the Annexation Area, secured by recordation of a continuing lien against all non-exempt real property in the Annexation Area will be levied annually within the boundaries of the Annexation Area. For particulars as to the rate and method of apportionment of the proposed special tax, reference is made to the attached and incorporated Exhibit “C” which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the Annexation Area to clearly estimate the maximum amount of the special tax that such person will have to pay.
The special taxes shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency, as applicable for ad valorem taxes; however, as applicable, this Board of Directors may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the Rancho Cucamonga Fire Protection District, acting for and on behalf of the District.
6. Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, this Board of Directors hereby establishes the following
Resolution No. FD 2023-XXX - Page 3 of 11
ATTACHMENT 1
accountability measures pertaining to the levy by the District of the special taxes within the Annexation Area as described in Section 5 above:
A. Each such special tax shall be levied for the specific purposes section in Section 5. above.
B. The proceeds of the levy of each such special tax shall be applied only to the specific applicable purposes set forth in Section 5. above.
C. The District shall establish a separate account into which the proceeds of the special taxes levied within the District shall be deposited.
D. The Fire Chief or his or her designee, acting for and on behalf of the District, shall annually file a report with the Board of Directors as required pursuant to Government Code Section 50075.3.
7. Election. The proposition related to the levy of the special tax shall be submitted to the qualified electors of the Annexation Area, said electors being the landowners, with each landowner having one (1) vote for each acre or portion thereof of land which he or she owns within said annexed territory. The special election shall be held on the 21 st of June 2023 and said election shall be a special election to be conducted by the Secretary (hereinafter “Election Official”). If the proposition for the levy of the special tax receives the approval of more than two-thirds (2/3) of the votes cast on the proposition, the special tax may be levied as provided for in this Resolution and the Board of Directors may determine that the Annexation Area is added to and part of the District.
8. Ballot. The ballot proposal to be submitted to the qualified voters at the election shall generally be as follows:
PROPOSITION A
RANCHO CUCAMONGA FIRE PROTECTION DISTRICT
COMMUNITY FACILITIES DISTRICT NO. 85-1,
AUTHORIZATION FOR SPECIAL TAX LEVY
Shall Community Facilities District No. 85-1 of the Rancho Cucamonga Fire Protection District be authorized to levy special taxes within the territory shown on “Annexation Map No. 23-1 of Community Facilities District No. 85-1 of the Rancho Cucamonga Fire Protection District, County Of San Bernardino, State Of California” (the “Annexation Map”) pursuant to the rate and method of apportionment of special taxes (the “Special Tax Formula”) set forth in Resolution No. FD 2022-024 to finance fire suppression and protection services and administrative expenses?
9. Vote. The appropriate mark placed in the voting square after the word “YES” shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in the voting square after the word “NO” in the manner as authorized, shall be counted against the adoption of said proposition.
10. Election Procedure. The Election Official is hereby authorized to take any and all steps necessary for the holding of said election. Said Election Official shall perform and render all services and proceedings incidental to and connected with the conduct of said election, and said services shall include, but not be limited to the following:
A. Prepare and furnish to the election officers necessary election supplies for the conduct of the election.
Resolution No. FD 2023-XXX - Page 4 of 11
ATTACHMENT 1
B. Cause to be printed the requisite number of official ballots, tally sheets and other necessary forms.
C. Furnish and address official ballots for the qualified electors of the Annexation Area.
D. Cause the official ballots to be mailed and/or delivered, as required by law.
E. Receive the returns of the election.
F. Sort and assemble the election material and supplies in preparation for the canvassing of the returns.
G. Canvass the returns of the election.
H. Furnish a tabulation of the number of votes given in the election.
I. Make all arrangements and take the necessary steps to pay all costs of the election incurred as a result of services performed for the District and pay costs and expenses of all election officials.
J. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law.
PASSED, APPROVED and ADOPTED this _________ day of _________________ 2023.
Resolution No. FD 2023-XXX - Page 5 of 11
ATTACHMENT 1
EXHIBIT “A”
COMMUNITY FACILITIES DISTRICT NO. 85-1
ANNEXATION MAP
Resolution No. FD 2023-XXX - Page 6 of 11
ATTACHMENT 1
COMMUNITY FACILITIES DISTRICT NO. 85-1
BOUNDARY MAP
Resolution No. FD 2023-XXX - Page 7 of 11
ATTACHMENT 1
EXHIBIT “B”
COMMUNITY FACILITIES DISTRICT NO. 85-1
DESCRIPTION OF THE SERVICES AND FACILITIES
The Services.
It is the intention of the Board of Directors to finance certain types of fire services (the “Services”) that are in addition to those currently provided in or required for the Territory and are necessary to meet the increased demand for such fire services resulting from new development within the Territory and will not be replacing services already available to the Territory. A general description of the Services to be financed is as follows:
The performance of functions, operations, maintenance, and repair activities in order to provide fire protection and suppression services to the Territory.
The Facilities.
It is the intention of this Board of Directors to finance the purchase, construction, expansion, improvement, or rehabilitation of certain types of fire facilities (the “Facilities”) that are in addition to those currently provided to serve the Territory and are necessary to meet the increased demand for such fire services resulting from new development within the Territory and will not be replacing facilities already available to serve the Territory. A general description of the types of the Facilities to be financed is as follows:
Fire protection and suppression facilities and equipment, rescue equipment, with a useful life of five (5) years or more, including collection and accumulation of funds to pay for anticipated facilities cost shortfalls and reserves for repair and replacement to the extent that such facilities are necessary to meet the increased demand for such facilities resulting from new development within the Territory.
Resolution No. FD 2023-XXX - Page 8 of 11
ATTACHMENT 1
EXHIBIT “C”
FOOTHILL FIRE PROTECTION DISTRICT
COMMUNITY FACILITIES DISTRICT NO. 85-1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
The rate and method of apportionment, limitations on and adjustments to the Special Tax authorized to be levied within Community Facilities District No. 85-1 (the “CFD No. 85-1 Rate and Method”) as originally established for and as applied to the taxable properties within such community facilities district is as follows:
SPECIAL TAX
COMMUNITY FACILITIES DISTRICT
To pay for fire suppression services and to finance fire suppression facilities, the maximum Special Tax in the Community Facilities District shall be:
Structures Maximum Annual Special Tax
Residential 1 DU $75.00
Multi-Family 2 DU: 1.75 ($75.00)
3 DU: 2.25 ($75.00)
4 DU: 2.65 ($75.00)
5-14 DU: 2.65 ($75.00) + [0.35 (TU-4) ($75.00)]
15-30 DU: 6.15 ($75.00) + [0.30 (TU-14) ($75.00)]
31-80 DU: 10.65 ($75.00) + [0.25 (TU-30) ($75.00)]
81 – up DU: 23.15 ($75.00) + [0.20 (TU-80) ($75.00)]
Commercial ($75.00) per acre + $0.04 per SF
Industrial ($75.00) per acre + $0.05 per SF
Note: DU = Dwelling Units
TU = Total Units
SF = Square Foot
Resolution No. FD 2023-XXX - Page 9 of 11
ATTACHMENT 1
ANNUAL ADJUSTMENT SPECIAL TAX
The maximum Special Tax shall be annually adjusted for (a) changes in cost of living or (b) changes in cost of living and changes in population as defined in Section 7901 of the Government Code, as amended, whichever is lesser.
REDUCTION IN SPECIAL TAX
Commercial and industrial structures shall be granted a reduction in the Special Tax for the installation of complete sprinkler systems. In addition, multi-floor commercial and industrial structures shall be granted a reduction in Special Tax for each separate floor above or below the main ground floor of the structure.
LIMITATIONS ON TAX LEVY
The Special Tax shall only be levied on developed property; provided that the Special Tax shall not be levied until a “Certification of Occupancy” or “Utility Release” has been issued by the appropriate governmental agencies.
Developed property is defined to be property:
•Which is not owned by a public or governmental agency
•Which is not vacant
•Where a certificate of occupancy or utility release from the City of Rancho Cucamonga or the County of San Bernardino has been issued
•Which has an existing building or structure onsite
•Which does not have as its sole use power transmission towers, railroad tracks, and flood control facilities – these properties are exempt. Areas granted as easements to power transmission towers, railroad tracks, and flood control facilities shall be subtracted from the total acreage of the underlying lot and shall be exempt.
The annual levy of the Special Tax shall be based upon an annual determination by the Board of Directors of the Rancho Cucamonga Fire Protection District of the amount of other revenues available to meet budget requirements. As used in this formula, "available revenue" shall include ad valorem taxes, State of California augmentation, tax increment revenues received from the Redevelopment Agency of the City of Rancho Cucamonga and any other source of revenue except the Special Tax. The Board of Directors shall take all responsible steps to retain maximum Redevelopment Agency funding to which, by agreement, they may lawfully receive. To the extent available revenues are insufficient to meet budget requirements, the Board of Directors may levy the Special Tax.
Resolution No. FD 2023-XXX - Page 10 of 11
ATTACHMENT 1
* * *
Application of the CFD No. 85-1 Rate and Method to Annexation No. 23-1 To pay for fire suppression services and to finance fire suppression facilities, the Maximum Special Tax in Community Facilities District No. 85-1, Annexation No. 23-1 for Fiscal Year 2022-23 shall be:
Structures
Residential 1 DU: $199.19
Multi-Family 2 DU: 1.75 ($199.19)
3 DU: 2.25 ($199.19)
4 DU: 2.65 ($199.19)
5 - 14 DU: 2.65 ($199.19) + [0.35 (TU - 4) ($199.19)]
15 - 30 DU: 6.15 ($199.19) + [0.30 (TU - 14) ($199.19)] 31 - 80 DU: 10.65 ($199.19) + [0.25 (TU - 30) ($199.19)] 81 - UP DU: 23.15 ($199.19) + [0.20 (TU - 80) ($199.19)] Commercial ($199.19) per acre + 0.103 per SF
Industrial ($199.19) per acre + 0.128 per SF
Notes: DU = Dwelling Units
TU = Total Units
SF = Square Foot
Maximum Annual Special Tax
ANNUAL ADJUSTMENT
The maximum Special Tax shall be annually adjusted commencing on July 1, 2022, and each July 1 st thereafter for (a) changes in the cost of living or (b) changes in cost of living and changes in population as defined in Section 7901 of the Government Code, as amended, whichever is lesser.
REDUCTION IN SPECIAL TAX
Commercial and industrial structures shall be granted a .01 cent reduction in the Special Tax for the installation of complete sprinkler systems. In addition, multi-floor commercial and industrial structures shall also be granted a .01 cent reduction (not cumulative) in Special Tax for each separate floor above or below the main ground floor of the structure.
Resolution No. FD 2023-XXX - Page 11 of 11
ATTACHMENT 1
LIMITATION ON SPECIAL TAX LEVY
The Special Tax shall only be levied on developed property; provided that the Special Tax shall not be levied until a “Certification of Occupancy” or “Utility Release” has been issued by the appropriate governmental agencies.
Developed property is defined to be property:
•Which is not owned by a public or governmental agency
•Which is not vacant
•Where a certificate of occupancy or utility release from the City of Rancho Cucamonga or the County of San Bernardino has been issued
•Which has an existing building or structure onsite
•Which does not have as its sole use power transmission towers, railroad tracks, and flood control facilities – these properties are exempt. Areas granted as easements to power transmission towers, railroad tracks, and flood control facilities shall be subtracted from the total acreage of the underlying lot and shall be exempt.
The annual levy of the Special Tax shall be based upon an annual determination by the Board of Directors of the Rancho Cucamonga Fire Protection District of the amount of other revenues available to meet budget requirements. As used in this formula, "available revenue" shall include ad valorem taxes, State of California augmentation, tax increment revenues received from the Redevelopment Agency of the City of Rancho Cucamonga and any other source of revenue except the Special Tax. The Board of Directors shall take all responsible steps to retain maximum Redevelopment Agency funding to which, by agreement, they may lawfully receive. To the extent available revenues are insufficient to meet budget requirements, the Board of Directors may levy the Special Tax.
For further particulars regarding the rate and method of apportionment of the Special Tax, reference is made to the Final Report Mello-Roos Community Facilities District No. 85-1 for Fire Suppression Facilities/Services – Foothill Fire Protection District, a copy of which is on file in the office of the Fire Chief of the Rancho Cucamonga Fire Protection District.
DATE:June 21, 2023
TO:President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY: Mike McCliman, Fire Chief
Noah Daniels, Finance Director
Darci Vogel, Fire Business Manager
Kelly Guerra, Special Districts Analyst
SUBJECT: Public Hearing to Consider Adoption of a Resolution Making Determinations Regarding the Proposed Annexation of Territory (Annexation No. 23-2, Assessor Parcel Number 0229-171-28) into an Existing Community Facilities District, Calling a Special Election, and Authorizing Submittal of Levy of Special Taxes to the Qualified Electors. (RESOLUTION NO. FD 2023-015) (FIRE)
RECOMMENDATION:
Staff recommends that the Fire Protection District Board adopt a resolution making determinations and authorizing the submittal of the levy of special taxes to the qualified electors of territory proposed to be annexed (Annexation No. 23-2, Assessor Parcel Number (APN) 0229-171-28) to existing Community Facilities District No. 85-1 (“CFD No. 85-1”) and calling a special election for such purpose.
BACKGROUND:
Philip Wong and Raymond Chan, property owners of APN 0229-171-28 (13261 Arrow Route) (“Annexation Area”), have submitted an application to construct a new commercial concrete tilt- up warehouse. The property owners are conditioned by the Fire Protection District to annex such property into the existing CFD No. 85-1 to satisfy fire protection service mitigation impacts.
On May 17, 2023, the Board initiated formal annexation proceedings pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (the “Mello-Roos Act”) by adopting Resolution No. FD 2023-015 approving the annexation map of the territory proposed to be annexed into existing CFD 85-1 and Resolution No. FD 2023-015 approving the intention to annex the Territory in the existing CFD 85-1. This Resolution, among other things, declared the intention of the Board of Directors to levy a special tax within the Annexation Area to finance fire protection and suppression services and setting a public hearing regarding the proposed annexation to be held on June 21, 2023.
Through adoption of this resolution before the Board this evening, the Board will accomplish the following:
•Make certain determinations as set forth in the Resolution; •Call for a special election to be conducted on June 21, 2023; •Authorize submittal of the levy of the special tax to qualified electors of the Annexation Area at such Special election.
1 8
1 3
ANALYSIS:
The annexation of the Annexation Area into CFD No. 85-1 will satisfy the conditions of development relating to mitigating impacts upon fire protection services. The property owner is in full support of the annexation of the property being annexed. Pursuant to the Mello-Roos Act, whenever there have been less than 12 persons registered to vote within the Annexation Area for each of the 90 days preceding the public hearing pertaining to such annexation, the vote shall be by the landowners within the Annexation Area. Therefore, in the current circumstances, the election will be a landowner’s vote, the landowner having one vote per acre or portion thereof of land within the Annexation Area.
The property owner has executed a “Consent and Waiver” of time frames relating to the election. Exhibit “C” of the Resolution sets forth the rate and method of apportionment of the special tax proposed to be levied within the Annexation Area which is consistent with the special tax levied upon all territory currently within CFD No. 85-1.
At the special election to be held on June 21, 2023, the landowner(s) will be entitled to cast its ballot. The Board Secretary will then canvas the ballot, if received. At the next Fire Board meeting, the Board will consider adopting the resolution declaring the election results and the annexation of the Annexation Area to CFD 85-1. If 2/3 of the votes are cast in favor of the levy of the special tax, the Board may declare the property to be annexed.
The Public Notice regarding the Public Hearing has been advertised in the Inland Valley Daily Bulletin.
FISCAL IMPACT:
The special tax revenues that are collected of the CFD No. 85-1 are used to pay for public facilities and services in the District area. Costs related to the administering of the District are the responsibility of the property owners within the District. Annexation of the property will ensure the property owner covers the cost of increased demand for fire services resulting from new development within the Territory.
COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
This item brings together portions of the Council’s vision and core value by providing a sustainable City and promoting a safe and healthy community for all. Annexation of the property into CFD 85-1 ensures the delivery of vital fire and life safety services to all residents while satisfying fire protection service mitigation impacts.
ATTACHMENTS:
Attachment 1 - Resolution No. FD 2023-015, Call for Special Election Annexation 23-2
Resolution No. FD 2023-XXX - Page 1 of 11
ATTACHMENT 1
RESOLUTION NO. FD 2023-XXX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO
CUCAMONGA FIRE PROTECTION DISTRICT, RANCHO CUCAMONGA,
CALIFORNIA, MAKING CERTAIN DETERMINATIONS REGARDING THE PROPOSED ANNEXATION OF TERRITORY (ANNEXATION NO. 23-2) TO AN EXISTING COMMUNITY FACILITIES DISTRICT (CFD 85-1) AND
CALLING A SPECIAL ELECTION AND AUTHORIZING THE SUBMITTAL
OF THE LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS OF
SUCH TERRITORY
WHEREAS, the Board Of Directors (the “Board of Directors”) of the Rancho Cucamonga Fire Protection District (the “Fire Protection District”), Rancho Cucamonga, California, has previously declared its intention and held and conducted proceedings relating to the annexation of territory to an existing community facilities district pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Article 3.5 thereof (the “Act”). The existing Community Facilities District has been designated as Community Facilities District No. 85-1 (the “District”); and, WHEREAS, notice of a public hearing relating to the annexation of territory to the District, the extent of the territory to be annexed (the “Annexation Area”), the furnishing of certain public services and all other related matters has been given; and,
WHEREAS, it has now been determined that written protests have not been received by 50% or more of the registered voters residing either within the Annexation Area or the District and/or property owners representing more than one-half (1/2) or more of the area of land within the Annexed Area or within District; and,
WHEREAS, inasmuch as there have been less than twelve (12) persons registered to vote within the Annexation Area for each of the 90 preceding days, this legislative body desires to submit the levy of the required special tax to the landowners of the Annexation Area, said landowners being the qualified electors as authorized by law.
NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve as follows:
1. Recitals. The above recitals are all true and correct.
2. Determinations. It is determined by this Board of Directors that:
A. all proceedings prior hereto were valid and taken in conformity with the requirements of law, and specifically the provisions of the Act;
B. less than twelve (12) registered voters have resided within the Annexation Area for each of the ninety (90) days preceding the close of the public hearing and, consequently, the qualified electors shall be the landowners of the Annexation Area and each landowner who is the owner of record as of the close of the public hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within the Annexation Area;
C. the time limit specified by the Act for conducting an election to submit the levy of the special taxes to the qualified electors of the Annexation Area and the requirements for
Resolution No. FD 2023-XXX - Page 2 of 11
ATTACHMENT 1
impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the Annexation Area;
D. the Secretary, acting as the election official, has consented to conducting any required election on a date which is less than 125 days following the adoption of this resolution; and
E. the public services proposed to be financed from the proceeds of special taxes to be levied within the Annexation Area are necessary to meet increased demands placed upon the Fire Protection District as a result of development and/or rehabilitation occurring in the Annexation Area.
3. Boundaries of Annexed Area. The boundaries and parcels of land in the Annexation Area and on which special taxes are proposed to be levied in order to pay the costs and expenses for the public services described in Section 4 below are generally described as follows:
All that property and territory proposed to be annexed to the District, as said property is shown on a map as previously approved by this legislative body, said map entitled “Annexation Map No. 23-2 of Community Facilities District No. 85-1 of the Rancho Cucamonga Fire Protection District, County of San Bernardino, State of California” reference is made to the attached and incorporated Exhibit “A” (the “Annexation Map”), and a copy of which is on file in the Office of the Secretary and shall remain open for public inspection.
4. Services and Facilities Authorized to be Financed by the District. The services that are authorized to be financed by the District from the proceeds of special taxes levied within the existing District are generally described in Exhibit “B” (the “Services and Facilities”) attached hereto and incorporated herein by this reference and all costs associated the District, administration of the District, the determination of the amount of special taxes to be levied, the costs of collection any special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the District.
If and to the extent feasible the Services and Facilities shall be provided in common within the existing District and the Territory.
5. Special Tax. Except where funds are otherwise available and subject to the approval of the qualified electors of the Annexation Area, a special tax sufficient to pay for the services described in Section 4 that are required for the Annexation Area, secured by recordation of a continuing lien against all non-exempt real property in the Annexation Area will be levied annually within the boundaries of the Annexation Area. For particulars as to the rate and method of apportionment of the proposed special tax, reference is made to the attached and incorporated Exhibit “C” which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the Annexation Area to clearly estimate the maximum amount of the special tax that such person will have to pay.
The special taxes shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency, as applicable for ad valorem taxes; however, as applicable, this Board of Directors may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the Rancho Cucamonga Fire Protection District, acting for and on behalf of the District.
6. Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, this Board of Directors hereby establishes the following
Resolution No. FD 2023-XXX - Page 3 of 11
ATTACHMENT 1
accountability measures pertaining to the levy by the District of the special taxes within the Annexation Area as described in Section 5 above:
A. Each such special tax shall be levied for the specific purposes section in Section 5. above.
B. The proceeds of the levy of each such special tax shall be applied only to the specific applicable purposes set forth in Section 5. above.
C. The District shall establish a separate account into which the proceeds of the special taxes levied within the District shall be deposited.
D. The Fire Chief or his or her designee, acting for and on behalf of the District, shall annually file a report with the Board of Directors as required pursuant to Government Code Section 50075.3.
7. Election. The proposition related to the levy of the special tax shall be submitted to the qualified electors of the Annexation Area, said electors being the landowners, with each landowner having one (1) vote for each acre or portion thereof of land which he or she owns within said annexed territory. The special election shall be held on the 21st of June 2023, and said election shall be a special election to be conducted by the Secretary (hereinafter “Election Official”). If the proposition for the levy of the special tax receives the approval of more than two-thirds (2/3) of the votes cast on the proposition, the special tax may be levied as provided for in this Resolution and the Board of Directors may determine that the Annexation Area is added to and part of the District.
8. Ballot. The ballot proposal to be submitted to the qualified voters at the election shall generally be as follows:
PROPOSITION A
RANCHO CUCAMONGA FIRE PROTECTION DISTRICT
COMMUNITY FACILITIES DISTRICT NO. 85-1,
AUTHORIZATION FOR SPECIAL TAX LEVY
Shall Community Facilities District No. 85-1 of the Rancho Cucamonga Fire Protection District be authorized to levy special taxes within the territory shown on “Annexation Map No. 23-2 of Community Facilities District No. 85-1 of the Rancho Cucamonga Fire Protection District, County Of San Bernardino, State Of California” (the “Annexation Map”) pursuant to the rate and method of apportionment of special taxes (the “Special Tax Formula”) set forth in Resolution No. FD 2022-024 to finance fire suppression and protection services and administrative expenses?
9. Vote. The appropriate mark placed in the voting square after the word “YES” shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in the voting square after the word “NO” in the manner as authorized, shall be counted against the adoption of said proposition.
10. Election Procedure. The Election Official is hereby authorized to take any and all steps necessary for the holding of said election. Said Election Official shall perform and render all services and proceedings incidental to and connected with the conduct of said election, and said services shall include, but not be limited to the following:
A. Prepare and furnish to the election officers necessary election supplies for the conduct of the election.
Resolution No. FD 2023-XXX - Page 4 of 11
ATTACHMENT 1
B. Cause to be printed the requisite number of official ballots, tally sheets and other necessary forms.
C. Furnish and address official ballots for the qualified electors of the Annexation Area.
D. Cause the official ballots to be mailed and/or delivered, as required by law.
E. Receive the returns of the election.
F. Sort and assemble the election material and supplies in preparation for the canvassing of the returns.
G. Canvass the returns of the election.
H. Furnish a tabulation of the number of votes given in the election.
I. Make all arrangements and take the necessary steps to pay all costs of the election incurred as a result of services performed for the District and pay costs and expenses of all election officials.
J. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law.
PASSED, APPROVED and ADOPTED this _________ day of _________________ 2023.
Resolution No. FD 2023-XXX - Page 5 of 11
ATTACHMENT 1
EXHIBIT “A”
COMMUNITY FACILITIES DISTRICT NO. 85-1
ANNEXATION MAP
Resolution No. FD 2023-XXX - Page 6 of 11
ATTACHMENT 1
COMMUNITY FACILITIES DISTRICT NO. 85-1
BOUNDARY MAP
Resolution No. FD 2023-XXX - Page 7 of 11
ATTACHMENT 1
EXHIBIT “B”
COMMUNITY FACILITIES DISTRICT NO. 85-1
DESCRIPTION OF THE SERVICES AND FACILITIES
The Services.
It is the intention of the Board of Directors to finance certain types of fire services (the “Services”) that are in addition to those currently provided in or required for the Territory and are necessary to meet the increased demand for such fire services resulting from new development within the Territory and will not be replacing services already available to the Territory. A general description of the Services to be financed is as follows:
The performance of functions, operations, maintenance, and repair activities in order to provide fire protection and suppression services to the Territory.
The Facilities.
It is the intention of this Board of Directors to finance the purchase, construction, expansion, improvement, or rehabilitation of certain types of fire facilities (the “Facilities”) that are in addition to those currently provided to serve the Territory and are necessary to meet the increased demand for such fire services resulting from new development within the Territory and will not be replacing facilities already available to serve the Territory. A general description of the types of the Facilities to be financed is as follows:
Fire protection and suppression facilities and equipment, rescue equipment, with a useful life of five (5) years or more, including collection and accumulation of funds to pay for anticipated facilities cost shortfalls and reserves for repair and replacement to the extent that such facilities are necessary to meet the increased demand for such facilities resulting from new development within the Territory.
Resolution No. FD 2023-XXX - Page 8 of 11
ATTACHMENT 1
EXHIBIT “C”
FOOTHILL FIRE PROTECTION DISTRICT
COMMUNITY FACILITIES DISTRICT NO. 85-1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
The rate and method of apportionment, limitations on and adjustments to the Special Tax authorized to be levied within Community Facilities District No. 85-1 (the “CFD No. 85-1 Rate and Method”) as originally established for and as applied to the taxable properties within such community facilities district is as follows:
SPECIAL TAX
COMMUNITY FACILITIES DISTRICT
To pay for fire suppression services and to finance fire suppression facilities, the maximum Special Tax in the Community Facilities District shall be:
Structures Maximum Annual Special Tax
Residential 1 DU $75.00
Multi-Family 2 DU: 1.75 ($75.00)
3 DU: 2.25 ($75.00)
4 DU: 2.65 ($75.00)
5-14 DU: 2.65 ($75.00) + [0.35 (TU-4) ($75.00)]
15-30 DU: 6.15 ($75.00) + [0.30 (TU-14) ($75.00)]
31-80 DU: 10.65 ($75.00) + [0.25 (TU-30) ($75.00)]
81 – up DU: 23.15 ($75.00) + [0.20 (TU-80) ($75.00)]
Commercial ($75.00) per acre + $0.04 per SF
Industrial ($75.00) per acre + $0.05 per SF
Note: DU = Dwelling Units
TU = Total Units
SF = Square Foot
Resolution No. FD 2023-XXX - Page 9 of 11
ATTACHMENT 1
ANNUAL ADJUSTMENT SPECIAL TAX
The maximum Special Tax shall be annually adjusted for (a) changes in cost of living or (b) changes in cost of living and changes in population as defined in Section 7901 of the Government Code, as amended, whichever is lesser.
REDUCTION IN SPECIAL TAX
Commercial and industrial structures shall be granted a reduction in the Special Tax for the installation of complete sprinkler systems. In addition, multi-floor commercial and industrial structures shall be granted a reduction in Special Tax for each separate floor above or below the main ground floor of the structure.
LIMITATIONS ON TAX LEVY
The Special Tax shall only be levied on developed property; provided that the Special Tax shall not be levied until a “Certification of Occupancy” or “Utility Release” has been issued by the appropriate governmental agencies.
Developed property is defined to be property:
•Which is not owned by a public or governmental agency
•Which is not vacant
•Where a certificate of occupancy or utility release from the City of Rancho Cucamonga or the County of San Bernardino has been issued
•Which has an existing building or structure onsite
•Which does not have as its sole use power transmission towers, railroad tracks, and flood control facilities – these properties are exempt. Areas granted as easements to power transmission towers, railroad tracks, and flood control facilities shall be subtracted from the total acreage of the underlying lot and shall be exempt.
The annual levy of the Special Tax shall be based upon an annual determination by the Board of Directors of the Rancho Cucamonga Fire Protection District of the amount of other revenues available to meet budget requirements. As used in this formula, "available revenue" shall include ad valorem taxes, State of California augmentation, tax increment revenues received from the Redevelopment Agency of the City of Rancho Cucamonga and any other source of revenue except the Special Tax. The Board of Directors shall take all responsible steps to retain maximum Redevelopment Agency funding to which, by agreement, they may lawfully receive. To the extent available revenues are insufficient to meet budget requirements, the Board of Directors may levy the Special Tax.
Resolution No. FD 2023-XXX - Page 10 of 11
ATTACHMENT 1
* * *
Application of the CFD No. 85-1 Rate and Method to Annexation No. 23-2 To pay for fire suppression services and to finance fire suppression facilities, the Maximum Special Tax in Community Facilities District No. 85-1, Annexation No. 23-2 for Fiscal Year 2022-23 shall be:
Structures
Residential 1 DU: $199.19
Multi-Family 2 DU: 1.75 ($199.19)
3 DU: 2.25 ($199.19)
4 DU: 2.65 ($199.19)
5 - 14 DU: 2.65 ($199.19) + [0.35 (TU - 4) ($199.19)]
15 - 30 DU: 6.15 ($199.19) + [0.30 (TU - 14) ($199.19)] 31 - 80 DU: 10.65 ($199.19) + [0.25 (TU - 30) ($199.19)] 81 - UP DU: 23.15 ($199.19) + [0.20 (TU - 80) ($199.19)] Commercial ($199.19) per acre + 0.103 per SF
Industrial ($199.19) per acre + 0.128 per SF
Notes: DU = Dwelling Units
TU = Total Units
SF = Square Foot
Maximum Annual Special Tax
ANNUAL ADJUSTMENT
The maximum Special Tax shall be annually adjusted commencing on July 1, 2022, and each July 1 st thereafter for (a) changes in the cost of living or (b) changes in cost of living and changes in population as defined in Section 7901 of the Government Code, as amended, whichever is lesser.
REDUCTION IN SPECIAL TAX
Commercial and industrial structures shall be granted a .01 cent reduction in the Special Tax for the installation of complete sprinkler systems. In addition, multi-floor commercial and industrial structures shall also be granted a .01 cent reduction (not cumulative) in Special Tax for each separate floor above or below the main ground floor of the structure.
Resolution No. FD 2023-XXX - Page 11 of 11
ATTACHMENT 1
LIMITATION ON SPECIAL TAX LEVY
The Special Tax shall only be levied on developed property; provided that the Special Tax shall not be levied until a “Certification of Occupancy” or “Utility Release” has been issued by the appropriate governmental agencies.
Developed property is defined to be property:
•Which is not owned by a public or governmental agency
•Which is not vacant
•Where a certificate of occupancy or utility release from the City of Rancho Cucamonga or the County of San Bernardino has been issued
•Which has an existing building or structure onsite
•Which does not have as its sole use power transmission towers, railroad tracks, and flood control facilities – these properties are exempt. Areas granted as easements to power transmission towers, railroad tracks, and flood control facilities shall be subtracted from the total acreage of the underlying lot and shall be exempt.
The annual levy of the Special Tax shall be based upon an annual determination by the Board of Directors of the Rancho Cucamonga Fire Protection District of the amount of other revenues available to meet budget requirements. As used in this formula, "available revenue" shall include ad valorem taxes, State of California augmentation, tax increment revenues received from the Redevelopment Agency of the City of Rancho Cucamonga and any other source of revenue except the Special Tax. The Board of Directors shall take all responsible steps to retain maximum Redevelopment Agency funding to which, by agreement, they may lawfully receive. To the extent available revenues are insufficient to meet budget requirements, the Board of Directors may levy the Special Tax.
For further particulars regarding the rate and method of apportionment of the Special Tax, reference is made to the Final Report Mello-Roos Community Facilities District No. 85-1 for Fire Suppression Facilities/Services – Foothill Fire Protection District, a copy of which is on file in the office of the Fire Chief of the Rancho Cucamonga Fire Protection District.
DATE:June 21, 2023
TO:President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY: Mike McCliman, Fire Chief
Noah Daniels, Finance Director
Darci Vogel, Fire Business Manager
Kelly Guerra, Special Districts Analyst
SUBJECT: Public Hearing to Consider Adoption of a Resolution Making Determinations Regarding the Proposed Annexation of Territory (Annexation No. 23-3, Assessor Parcel Number 0229-151-27) into an Existing Community Facilities District, Calling a Special Election, and Authorizing Submittal of Levy of Special Taxes to the Qualified Electors. (RESOLUTION NO. FD 2023-016) (FIRE)
RECOMMENDATION:
Staff recommends that the Fire Protection District Board adopt a resolution making determinations and authorizing the submittal of the levy of special taxes to the qualified electors of territory proposed to be annexed (Annexation No. 23-3, Assessor Parcel Number (APN) 0229-151-27) to existing Community Facilities District No. 85-1 (“CFD No. 85-1”) and calling a special election for such purpose.
BACKGROUND:
John Gaytan, property owner of 0229-151-27 (8629 Pecan Avenue) (“Annexation Area”), has submitted an application to construct a commercial storage yard. The property owner is conditioned by the Fire Protection District to annex such property into the existing CFD No. 85-1 to satisfy fire protection service mitigation impacts.
Annexation proceedings were previously initiated, however in June 2022 the property owner voted against the levy of the special tax to finance fire protection and suppression services within the Annexation Territory. Since less than two-thirds of the votes cast in the election were in favor of levying the special tax on the Annexation Territory, the Board of Directors was unable to take further action on annexing the Annexation Territory to the District for a period of one year from the date of the election, in accordance with Section 53339.9 of the Government Code.
On May 17, 2023, the Board initiated formal annexation proceedings pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (the “Mello-Roos Act”) by adopting Resolution No. FD 2023-016 approving the annexation map of the territory proposed to be annexed into existing CFD 85-1 and Resolution No. FD 2023-016 approving the intention to annex the Territory in the existing CFD 85-1. This Resolution, among other things, declared the intention of the Board of Directors to levy a special tax within the Annexation Area to finance fire protection and suppression services and setting a public hearing regarding the proposed annexation to be held on June 21, 2023.
1 8
1 2
Through adoption of this resolution before the Board this evening, the Board will accomplish the following:
•Make certain determinations as set forth in the Resolution; •Call for a special election to be conducted on June 21, 2023; •Authorize submittal of the levy of the special tax to qualified electors of the Annexation Area at such Special election.
ANALYSIS:
The annexation of the Annexation Area into CFD No. 85-1 will satisfy the conditions of development relating to mitigating impacts upon fire protection services. The property owner is in full support of the annexation of the property being annexed. Pursuant to the Mello-Roos Act, whenever there have been less than 12 persons registered to vote within the Annexation Area for each of the 90 days preceding the public hearing pertaining to such annexation, the vote shall be by the landowners within the Annexation Area. Therefore, in the current circumstances, the election will be a landowner’s vote, the landowner having one vote per acre or portion thereof of land within the Annexation Area.
The property owner has executed a “Consent and Waiver” of time frames relating to the election. Exhibit “C” of the Resolution sets forth the rate and method of apportionment of the special tax proposed to be levied within the Annexation Area which is consistent with the special tax levied upon all territory currently within CFD No. 85-1.
At the special election to be held on June 21, 2023, the landowner(s) will be entitled to cast its ballot. The Board Secretary will then canvas the ballot, if received. At the next Fire Board meeting, the Board will consider adopting the resolution declaring the election results and the annexation of the Annexation Area to CFD 85-1. If 2/3 of the votes are cast in favor of the levy of the special tax, the Board may declare the property to be annexed.
The Public Notice regarding the Public Hearing has been advertised in the Inland Valley Daily Bulletin.
FISCAL IMPACT:
The special tax revenues that are collected of the CFD No. 85-1 are used to pay for public facilities and services in the District area. Costs related to the administering of the District are the responsibility of the property owners within the District. Annexation of the property will ensure the property owner covers the cost of increased demand for fire services resulting from new development within the Territory.
COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
This item brings together portions of the Council’s vision and core value by providing a sustainable City and promoting a safe and healthy community for all. Annexation of the property into CFD 85-1 ensures the delivery of vital fire and life safety services to all residents while satisfying fire protection service mitigation impacts.
ATTACHMENTS:
Attachment 1 - Resolution No. FD 2023-016, Call for Special Election Annexation 23-3
Resolution No. FD 2023-XXX - Page 1 of 11
ATTACHMENT 1
RESOLUTION NO. FD 2023-XXX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO
CUCAMONGA FIRE PROTECTION DISTRICT, RANCHO CUCAMONGA,
CALIFORNIA, MAKING CERTAIN DETERMINATIONS REGARDING THE PROPOSED ANNEXATION OF TERRITORY (ANNEXATION NO. 23-3) TO AN EXISTING COMMUNITY FACILITIES DISTRICT (CFD 85-1) AND
CALLING A SPECIAL ELECTION AND AUTHORIZING THE SUBMITTAL
OF THE LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS OF
SUCH TERRITORY
WHEREAS, the Board Of Directors (the “Board of Directors”) of the Rancho Cucamonga Fire Protection District (the “Fire Protection District”), Rancho Cucamonga, California, has previously declared its intention and held and conducted proceedings relating to the annexation of territory to an existing community facilities district pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Article 3.5 thereof (the “Act”). The existing Community Facilities District has been designated as Community Facilities District No. 85-1 (the “District”); and, WHEREAS, notice of a public hearing relating to the annexation of territory to the District, the extent of the territory to be annexed (the “Annexation Area”), the furnishing of certain public services and all other related matters has been given; and,
WHEREAS, it has now been determined that written protests have not been received by 50% or more of the registered voters residing either within the Annexation Area or the District and/or property owners representing more than one-half (1/2) or more of the area of land within the Annexed Area or within District; and,
WHEREAS, inasmuch as there have been less than twelve (12) persons registered to vote within the Annexation Area for each of the 90 preceding days, this legislative body desires to submit the levy of the required special tax to the landowners of the Annexation Area, said landowners being the qualified electors as authorized by law.
NOW, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve as follows:
1. Recitals. The above recitals are all true and correct.
2. Determinations. It is determined by this Board of Directors that:
A. all proceedings prior hereto were valid and taken in conformity with the requirements of law, and specifically the provisions of the Act;
B. less than twelve (12) registered voters have resided within the Annexation Area for each of the ninety (90) days preceding the close of the public hearing and, consequently, the qualified electors shall be the landowners of the Annexation Area and each landowner who is the owner of record as of the close of the public hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within the Annexation Area;
C. the time limit specified by the Act for conducting an election to submit the levy of the special taxes to the qualified electors of the Annexation Area and the requirements for
Resolution No. FD 2023-XXX - Page 2 of 11
ATTACHMENT 1
impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the Annexation Area;
D. the Secretary, acting as the election official, has consented to conducting any required election on a date which is less than 125 days following the adoption of this resolution; and
E. the public services proposed to be financed from the proceeds of special taxes to be levied within the Annexation Area are necessary to meet increased demands placed upon the Fire Protection District as a result of development and/or rehabilitation occurring in the Annexation Area.
3. Boundaries of Annexed Area. The boundaries and parcels of land in the Annexation Area and on which special taxes are proposed to be levied in order to pay the costs and expenses for the public services described in Section 4 below are generally described as follows:
All that property and territory proposed to be annexed to the District, as said property is shown on a map as previously approved by this legislative body, said map entitled “Annexation Map No. 23-3 of Community Facilities District No. 85-1 of the Rancho Cucamonga Fire Protection District, County of San Bernardino, State of California” reference is made to the attached and incorporated Exhibit “A” (the “Annexation Map”), and a copy of which is on file in the Office of the Secretary and shall remain open for public inspection.
4. Services and Facilities Authorized to be Financed by the District. The services that are authorized to be financed by the District from the proceeds of special taxes levied within the existing District are generally described in Exhibit “B” (the “Services and Facilities”) attached hereto and incorporated herein by this reference and all costs associated the District, administration of the District, the determination of the amount of special taxes to be levied, the costs of collection any special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the District.
If and to the extent feasible the Services and Facilities shall be provided in common within the existing District and the Territory.
5. Special Tax. Except where funds are otherwise available and subject to the approval of the qualified electors of the Annexation Area, a special tax sufficient to pay for the services described in Section 4 that are required for the Annexation Area, secured by recordation of a continuing lien against all non-exempt real property in the Annexation Area will be levied annually within the boundaries of the Annexation Area. For particulars as to the rate and method of apportionment of the proposed special tax, reference is made to the attached and incorporated Exhibit “C” which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the Annexation Area to clearly estimate the maximum amount of the special tax that such person will have to pay.
The special taxes shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency, as applicable for ad valorem taxes; however, as applicable, this Board of Directors may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the Rancho Cucamonga Fire Protection District, acting for and on behalf of the District.
6. Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, this Board of Directors hereby establishes the following
Resolution No. FD 2023-XXX - Page 3 of 11
ATTACHMENT 1
accountability measures pertaining to the levy by the District of the special taxes within the Annexation Area as described in Section 5 above:
A. Each such special tax shall be levied for the specific purposes section in Section 5. above.
B. The proceeds of the levy of each such special tax shall be applied only to the specific applicable purposes set forth in Section 5. above.
C. The District shall establish a separate account into which the proceeds of the special taxes levied within the District shall be deposited.
D. The Fire Chief or his or her designee, acting for and on behalf of the District, shall annually file a report with the Board of Directors as required pursuant to Government Code Section 50075.3.
7. Election. The proposition related to the levy of the special tax shall be submitted to the qualified electors of the Annexation Area, said electors being the landowners, with each landowner having one (1) vote for each acre or portion thereof of land which he or she owns within said annexed territory. The special election shall be held on the 21 st of June 2023 and said election shall be a special election to be conducted by the Secretary (hereinafter “Election Official”). If the proposition for the levy of the special tax receives the approval of more than two-thirds (2/3) of the votes cast on the proposition, the special tax may be levied as provided for in this Resolution and the Board of Directors may determine that the Annexation Area is added to and part of the District.
8. Ballot. The ballot proposal to be submitted to the qualified voters at the election shall generally be as follows:
PROPOSITION A
RANCHO CUCAMONGA FIRE PROTECTION DISTRICT
COMMUNITY FACILITIES DISTRICT NO. 85-1,
AUTHORIZATION FOR SPECIAL TAX LEVY
Shall Community Facilities District No. 85-1 of the Rancho Cucamonga Fire Protection District be authorized to levy special taxes within the territory shown on “Annexation Map No. 23-3 of Community Facilities District No. 85-1 of the Rancho Cucamonga Fire Protection District, County Of San Bernardino, State Of California” (the “Annexation Map”) pursuant to the rate and method of apportionment of special taxes (the “Special Tax Formula”) set forth in Resolution No. FD 2022-024 to finance fire suppression and protection services and administrative expenses?
9. Vote. The appropriate mark placed in the voting square after the word “YES” shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in the voting square after the word “NO” in the manner as authorized, shall be counted against the adoption of said proposition.
10. Election Procedure. The Election Official is hereby authorized to take any and all steps necessary for the holding of said election. Said Election Official shall perform and render all services and proceedings incidental to and connected with the conduct of said election, and said services shall include, but not be limited to the following:
A. Prepare and furnish to the election officers necessary election supplies for the conduct of the election.
Resolution No. FD 2023-XXX - Page 4 of 11
ATTACHMENT 1
B. Cause to be printed the requisite number of official ballots, tally sheets and other necessary forms.
C. Furnish and address official ballots for the qualified electors of the Annexation Area.
D. Cause the official ballots to be mailed and/or delivered, as required by law.
E. Receive the returns of the election.
F. Sort and assemble the election material and supplies in preparation for the canvassing of the returns.
G. Canvass the returns of the election.
H. Furnish a tabulation of the number of votes given in the election.
I. Make all arrangements and take the necessary steps to pay all costs of the election incurred as a result of services performed for the District and pay costs and expenses of all election officials.
J. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law.
PASSED, APPROVED and ADOPTED this _________ day of _________________ 2023.
Resolution No. FD 2023-XXX - Page 5 of 11
ATTACHMENT 1
EXHIBIT “A”
COMMUNITY FACILITIES DISTRICT NO. 85-1
ANNEXATION MAP
Resolution No. FD 2023-XXX - Page 6 of 11
ATTACHMENT 1
COMMUNITY FACILITIES DISTRICT NO. 85-1
BOUNDARY MAP
Resolution No. FD 2023-XXX - Page 7 of 11
ATTACHMENT 1
EXHIBIT “B”
COMMUNITY FACILITIES DISTRICT NO. 85-1
DESCRIPTION OF THE SERVICES AND FACILITIES
The Services.
It is the intention of the Board of Directors to finance certain types of fire services (the “Services”) that are in addition to those currently provided in or required for the Territory and are necessary to meet the increased demand for such fire services resulting from new development within the Territory and will not be replacing services already available to the Territory. A general description of the Services to be financed is as follows:
The performance of functions, operations, maintenance, and repair activities in order to provide fire protection and suppression services to the Territory.
The Facilities.
It is the intention of this Board of Directors to finance the purchase, construction, expansion, improvement, or rehabilitation of certain types of fire facilities (the “Facilities”) that are in addition to those currently provided to serve the Territory and are necessary to meet the increased demand for such fire services resulting from new development within the Territory and will not be replacing facilities already available to serve the Territory. A general description of the types of the Facilities to be financed is as follows:
Fire protection and suppression facilities and equipment, rescue equipment, with a useful life of five (5) years or more, including collection and accumulation of funds to pay for anticipated facilities cost shortfalls and reserves for repair and replacement to the extent that such facilities are necessary to meet the increased demand for such facilities resulting from new development within the Territory.
Resolution No. FD 2023-XXX - Page 8 of 11
ATTACHMENT 1
EXHIBIT “C”
FOOTHILL FIRE PROTECTION DISTRICT
COMMUNITY FACILITIES DISTRICT NO. 85-1
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
The rate and method of apportionment, limitations on and adjustments to the Special Tax authorized to be levied within Community Facilities District No. 85-1 (the “CFD No. 85-1 Rate and Method”) as originally established for and as applied to the taxable properties within such community facilities district is as follows:
SPECIAL TAX
COMMUNITY FACILITIES DISTRICT
To pay for fire suppression services and to finance fire suppression facilities, the maximum Special Tax in the Community Facilities District shall be:
Structures Maximum Annual Special Tax
Residential 1 DU $75.00
Multi-Family 2 DU: 1.75 ($75.00)
3 DU: 2.25 ($75.00)
4 DU: 2.65 ($75.00)
5-14 DU: 2.65 ($75.00) + [0.35 (TU-4) ($75.00)]
15-30 DU: 6.15 ($75.00) + [0.30 (TU-14) ($75.00)]
31-80 DU: 10.65 ($75.00) + [0.25 (TU-30) ($75.00)]
81 – up DU: 23.15 ($75.00) + [0.20 (TU-80) ($75.00)]
Commercial ($75.00) per acre + $0.04 per SF
Industrial ($75.00) per acre + $0.05 per SF
Note: DU = Dwelling Units
TU = Total Units
SF = Square Foot
Resolution No. FD 2023-XXX - Page 9 of 11
ATTACHMENT 1
ANNUAL ADJUSTMENT SPECIAL TAX
The maximum Special Tax shall be annually adjusted for (a) changes in cost of living or (b) changes in cost of living and changes in population as defined in Section 7901 of the Government Code, as amended, whichever is lesser.
REDUCTION IN SPECIAL TAX
Commercial and industrial structures shall be granted a reduction in the Special Tax for the installation of complete sprinkler systems. In addition, multi-floor commercial and industrial structures shall be granted a reduction in Special Tax for each separate floor above or below the main ground floor of the structure.
LIMITATIONS ON TAX LEVY
The Special Tax shall only be levied on developed property; provided that the Special Tax shall not be levied until a “Certification of Occupancy” or “Utility Release” has been issued by the appropriate governmental agencies.
Developed property is defined to be property:
•Which is not owned by a public or governmental agency
•Which is not vacant
•Where a certificate of occupancy or utility release from the City of Rancho Cucamonga or the County of San Bernardino has been issued
•Which has an existing building or structure onsite
•Which does not have as its sole use power transmission towers, railroad tracks, and flood control facilities – these properties are exempt. Areas granted as easements to power transmission towers, railroad tracks, and flood control facilities shall be subtracted from the total acreage of the underlying lot and shall be exempt.
The annual levy of the Special Tax shall be based upon an annual determination by the Board of Directors of the Rancho Cucamonga Fire Protection District of the amount of other revenues available to meet budget requirements. As used in this formula, "available revenue" shall include ad valorem taxes, State of California augmentation, tax increment revenues received from the Redevelopment Agency of the City of Rancho Cucamonga and any other source of revenue except the Special Tax. The Board of Directors shall take all responsible steps to retain maximum Redevelopment Agency funding to which, by agreement, they may lawfully receive. To the extent available revenues are insufficient to meet budget requirements, the Board of Directors may levy the Special Tax.
Resolution No. FD 2023-XXX - Page 10 of 11
ATTACHMENT 1
* * *
Application of the CFD No. 85-1 Rate and Method to Annexation No. 23-3 To pay for fire suppression services and to finance fire suppression facilities, the Maximum Special Tax in Community Facilities District No. 85-1, Annexation No. 23-3 for Fiscal Year 2022-23 shall be:
Structures
Residential 1 DU: $199.19
Multi-Family 2 DU: 1.75 ($199.19)
3 DU: 2.25 ($199.19)
4 DU: 2.65 ($199.19)
5 - 14 DU: 2.65 ($199.19) + [0.35 (TU - 4) ($199.19)]
15 - 30 DU: 6.15 ($199.19) + [0.30 (TU - 14) ($199.19)] 31 - 80 DU: 10.65 ($199.19) + [0.25 (TU - 30) ($199.19)] 81 - UP DU: 23.15 ($199.19) + [0.20 (TU - 80) ($199.19)] Commercial ($199.19) per acre + 0.103 per SF
Industrial ($199.19) per acre + 0.128 per SF
Notes: DU = Dwelling Units
TU = Total Units
SF = Square Foot
Maximum Annual Special Tax
ANNUAL ADJUSTMENT
The maximum Special Tax shall be annually adjusted commencing on July 1, 2022, and each July 1 st thereafter for (a) changes in the cost of living or (b) changes in cost of living and changes in population as defined in Section 7901 of the Government Code, as amended, whichever is lesser.
REDUCTION IN SPECIAL TAX
Commercial and industrial structures shall be granted a .01 cent reduction in the Special Tax for the installation of complete sprinkler systems. In addition, multi-floor commercial and industrial structures shall also be granted a .01 cent reduction (not cumulative) in Special Tax for each separate floor above or below the main ground floor of the structure.
Resolution No. FD 2023-XXX - Page 11 of 11
ATTACHMENT 1
LIMITATION ON SPECIAL TAX LEVY
The Special Tax shall only be levied on developed property; provided that the Special Tax shall not be levied until a “Certification of Occupancy” or “Utility Release” has been issued by the appropriate governmental agencies.
Developed property is defined to be property:
•Which is not owned by a public or governmental agency
•Which is not vacant
•Where a certificate of occupancy or utility release from the City of Rancho Cucamonga or the County of San Bernardino has been issued
•Which has an existing building or structure onsite
•Which does not have as its sole use power transmission towers, railroad tracks, and flood control facilities – these properties are exempt. Areas granted as easements to power transmission towers, railroad tracks, and flood control facilities shall be subtracted from the total acreage of the underlying lot and shall be exempt.
The annual levy of the Special Tax shall be based upon an annual determination by the Board of Directors of the Rancho Cucamonga Fire Protection District of the amount of other revenues available to meet budget requirements. As used in this formula, "available revenue" shall include ad valorem taxes, State of California augmentation, tax increment revenues received from the Redevelopment Agency of the City of Rancho Cucamonga and any other source of revenue except the Special Tax. The Board of Directors shall take all responsible steps to retain maximum Redevelopment Agency funding to which, by agreement, they may lawfully receive. To the extent available revenues are insufficient to meet budget requirements, the Board of Directors may levy the Special Tax.
For further particulars regarding the rate and method of apportionment of the Special Tax, reference is made to the Final Report Mello-Roos Community Facilities District No. 85-1 for Fire Suppression Facilities/Services – Foothill Fire Protection District, a copy of which is on file in the office of the Fire Chief of the Rancho Cucamonga Fire Protection District.
DATE:June 21, 2023
TO:Mayor and Members of the City Council
President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY: Noah Daniels, Finance Director
SUBJECT: Consideration to Receive and File Quarterly Financial Update for the Third Quarter of the Fiscal Year 2022/23 (CITY/FIRE)
RECOMMENDATION:
Staff recommends that the City Council receive and file the attached quarterly financial update for the third quarter of the Fiscal Year 2022/23.
BACKGROUND:
After the end of a fiscal quarter, the City Manager's Office and Finance Department provides the City Council with a brief update on the budgetary performance of the City's financial performance.
The report includes the City's operating funds consisting of the General Fund, Library Fund, and Fire District. The report also provides economic factors and information to provide meaningful context for the City Council.
ANALYSIS:
The quarterly financial update provides a detailed analysis and discussion of the financial status for the General Fund, Library Fund, and Fire District. With 75% of the fiscal year complete, the revenues and expenditures are within the expected ranges when considering seasonality and timing of operations.
Below are some highlights to consider while reviewing the report:
•Property tax is a major revenue source for the General Fund, Library Fund, and Fire District. Through the third quarter, property tax has slightly exceeded expectations. In particular, the General Fund received more property tax in lieu of vehicle license fees than expected, which based on historical installments, means that the total revenues for fiscal year will exceed initial estimates. Additionally, the General Fund, Library Fund, and Fire District have received higher-than-expected residual and statutory passthrough payments related to the dissolved former redevelopment agency.
•Sales tax is the largest revenue source for the General Fund, and the allocations from the first two quarters suggest that it will exceed the initial forecasts overall. Although total consumer spending appears to be constrained, but total taxable sales have increased due to inflation. This trend will be closely monitored by City staff.
1 8
9 4
•Franchise fees and transient occupancy taxes (TOT) are other significant revenue sources for the General Fund. TOT is received monthly from hotels based on room occupancy and revenue per available room. TOT is expected to be slightly below forecasts because one hotel did not open as expected during the fiscal year. However, TOT revenue is still higher compared to previous fiscal years as it recovers from the impacts of COVID-19. Franchise fees are meeting expectations overall based on the timing of receipts. •Personnel services for the General Fund and Library Fund are below expectations in the third quarter due to vacancies in full-time and part-time positions. The City has faced challenges in recruiting for positions, as have other organization, since unemployed workers have more options available to them. This situation will result in significant cost savings for the General Fund and Library Fund overall.
•Expenditure categories such as operations and maintenance and professional services include encumbrances for services. This sometimes leads to spending exceeding the benchmark. Encumbrances are commitments against the budget and serve as a conservative budgeting technique to prevent overspending. The report analyzes year-to- date expenditures for each department individually.
FISCAL IMPACT:
Finance did not identify any necessary budget appropriations for the third quarter.
COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
Providing the City Council with regular financial updates on the City's financial performance supports the Council's efforts to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive, by providing meaningful, timely financial information upon which they can base their current and future decisions that impact the City's finances.
ATTACHMENTS:
Attachment 1 – Quarterly Financial Update – Third Quarter of Fiscal Year 2022/23
Quarterly Financial Update
Quarter Ended
March 31, 2023
ATTACHMENT 1
PURPOSE AND OVERVIEW OF THE REPORT
The City Manager’s Office and Finance Department is providing this quarterly financial report to the City Council as a high -level overview of the City 's financial status through the prior quarter ended March 31, 202 3, a nd an overview of economic indicators that can influence the City 's revenues and expenditures.
This report has several components:
1. Quarterly Report: This report in cludes budget to actual variance analysis for revenues and expenditures for July 1, 2022, through March 31, 2023. The quarterly report provides this detail for the General Fund, Fire District, and Library Fund.
(Pages 1 to 9)
2. Economic Brief: This report compiles economic information and indicators, such as employment data, sales tax data, and other local and regional economic news. (Pages 10 to 17)
1 EXECUTIVE SUMMARY
After the third quarter of the f iscal year, the City 's financial status i s in line with expectations. Significant accounts and n otable variances are presented in this
quarterly financial report.
The tables in this report compare budgeted to actual
amounts for the General Fund, Fire District , and Library.
The year-to-date (YTD) actuals are unaudited and
presented with encumbrances. The revised budget
includes budget adjustments, encumbrance carryovers,
and any supplemental appropriations approved by City
Council through the quarter. The percent of the budget (% Bud) is the percentage received/spent of the budget.
The prior year- to-date (PYTD) shows the comparable
actual from the third quarter of the prior year.
The report uses colored icons to illustrate how well the category is doing financially. Green means everything is good, yellow means that something is being watched
closely, and red means that there is a problem that needs attention.
It’s important to know that this report does not present revenue and expenditure budgets that are not approved.
Therefore, updated revenue and expenditure information
based on new information and forecasts are not shown in these reports. Despite this, the City makes sure to
maintain a balanced budget, meaning that the amount of
money it plans to spend is always equal to or less than the amount of money it expec ts to bring in or use from
reserves.
GENERAL FUND OVERVIEW
The City’s General Fund is the main fund used to pay for a variety of programs and services that are provided to
people and busine sses in Rancho Cucamonga. This
includes programs and services offered by different
departments of the City.
Overall, the revenues ( amount of money coming in ) and expenditures (going out) of the General Fund are within the expected range, taking into account things like
seasonal changes and ongoing expenses.
Currently, the amount of money spent from the General
Fund is 61% of the total budget for the year. This includes both general expenses that benefit the whole city, as well as the costs of running individual departments. However, when we look only at the costs of running specific
departments, the amount spent so far this year is 71% of the budget. This report will focus on analyzing the
expenses for each department within the General Fund.
The table above includes departmental and non -departmental spending. Non-departmental expenditures are excluded from the operating departmental analysis section.
Major Revenues
Primary revenue sources for the General Fund are
property tax, sales tax, franchise fees, and transient
occupancy tax. Collectively, these comprise about 80% of the annual budget.
Property Tax. The property tax revenue category includes revenues from a few sources. The first significant source is Property Tax in Lieu of Vehicle License Fees, which was budgeted as $23 .7 million, but should be slightly more based on the first of two equal installments the City
receives. The first installment was for $12 million in
2 January 2022. Another source within this revenue
category is residual payments from the dissolution of the former redevelopment agency , which was received in
December 2022 for $2.5 million. Overall, the amount of money the City has received from property taxes is about what was expected, and it's even a little bit more than what was predicted at the beginning of the year.
Sales Tax. Sales tax is the largest single source of revenue for the City. As such, City staff and consultants keep a close eye on how much sales tax is coming in. Consistent with the delay in receipts, the City has already received its allocation for the first two quarters of the fiscal year and one month from the third quarter through the third
quarter. The rest of the money from the third quarter will come in April and May. So far, sales tax ha s exceeded what was expected at the start of the fiscal year. These higher receipts are likely the result of inflation increasing the costs of taxable sales . Overall, this trend means that the City now expects higher forecasted sales tax revenues for the year. Although if inflation results in less spending in the local economy, it could result in flat or downward sales tax revenues going forward.
Franchise Fees and Transient Occupancy Taxes. Transient Occupancy Taxes (TOT) and Franchise Fees make up about
15% of the City's budgeted tax revenue. Franchisees, or companies that have agreements to use City
infrastructure and services , pay the City on a regular schedule. Gas and electric franchise fees are paid closer to the end of the fiscal year, while refuse and cable
franchise fees are paid every three months. By the end of the third quarter of the fiscal year, the Ci ty had received about 32% of the expected revenue from franchise fees,
which is about the same as last year.
The City gets TOT revenues from hotels every month. The adopted budget reflected expected growth from existing
hotel demand increasing and the addition of two new
hotels. However, only one of the two new hotels was
opened this fiscal year, and demand, while still up, doesn’t appear to be a s high as initially forecasted. Despite this, the City has received 67% of the expected revenues ,
which is slightly less than last year's 71%, but overall much more than the prior year . The revised forecast for TOT revenue will be lowered slightly to account for the one hotel not opening as expected.
Licenses and Permi ts. This category of revenue mainly includes fees collected from building permits and business licenses, which make up 92% of the budget. At the end of the third quarter of the fiscal year, the actual revenue collected is more than the budgeted revenue by 1%. This is because the revenue collected from building permits
has exceeded the initial forecast for the year.
Fines and Forfeitures. This category includes revenue from fines and forfeitures, which for the City mainly come from vehicle and parking fines. These two sources make up 70% of the total fines and forfeitures budget. The
revenue from parking citations is currently at 40% of t he budget, lower than in the same period last year, as there aren't enough staff to issue parking citations. The City participates in various collection programs to collect
unpaid parking citations, and these programs have begun to increase parking citation revenues in the third quarter.
Overall, revenue is still lower than expected for the
current fiscal year.
Charges for Services. This category includes fees for services like reviewing building plans, planning,
engineering, and recreation activities. Through the third quarter, the City has received 86% of the budget for plan check, planning, and engineering charges for services. In contrast, ticket sales and recreation fees are 41% of the budget; however, in terms of money, these revenues have increased by approximately $800,000 from the prior year.
This is the result of various facilities and programs
increasing operations after being shut down during the
pandemic.
Intergovernmental. This category usually includes only motor vehicle in-lieu fees and homeowners property tax
relief revenues. In the third quarter, the City received two additional sources of revenue. The first is a $45,000 grant from the ASPCA, and the second is about $157,000 from
the national opioid settlement funds. Since these items have not been budgeted yet, they have resulted in a
revenue total that is 49% over the budget. The City has received $178,000 in motor vehicle in -lieu fees from the State, which is 86% of the budgeted amount for the year.
Transfers In. Transfers refer to the moving of resources from other funds to the General Fund, and they occur
3 every three months. Generally, these transfers represent reimbursements for staffing, programs, and activities
provided by the City’s G eneral Fund. Last year is higher due to the receipt of $26.8 million in State and Local Fiscal Recovery Funds from the US Treasury, which was used to
reimburse public safety costs.
Other Revenues. This category includes various types of income, such as interest earned on invested funds, rental and lease income, reimbursements, and other
miscellaneous revenues. Interest revenues have
exceeded the budget by 49% due to rising interest rates which have increased the rates of returns on the City’s fixed investments. Reimbursements make up 37% of the
budget for this category, and the City has received 57% of the budgeted amount. Besides administrative allowances for the Housing Su ccessor Agency and the Successor
Agency for the former redevelopment agency,
reimbursements can vary depending on the activity.
Rental and lease income make up 27% of the budget for
this category and are at 51% of the budgeted amount.
Departmental Expenditures
Expenditures f or the General Fund can vary because of
the timing of vendor payment s, carryover of purchase
orders from the prior year, and the changes in operations during the year. Therefore, even if expenditures are
above or below the benchmark of 75%, they still could be within the expected range.
Personnel services will appear to be higher due to the
allocation of estimated benefits to departments at the
start of the fiscal year. The allocation is based on
budgeted positions at the start of the year and adjusted at the end of the year to reflect the actuals. For the year, personnel services for some departments are lower due
to vacant positions , which have been challenging to fill, resulting in savings that can be used elsewhere.
Departments that provide services that benefit the City as a whole have their budgets reduced to reflect the
allocation of the cost of those services to the benefiting departments. This is identified as the Cost Allocation category within the department’s budget.
Administrative Services spending for the third quarter is as expected, with personnel services comprising 83% of
the budget. This is due to the allocation of fringe benefits at the start of the fiscal year. On the other hand,
operations expen ses, which include spending for travel and meetings, are below the benchmark at 49%. This is not unusual, as such expenses tend to vary.
Animal Care and Services department spending is within
expected ranges. First, p ersonnel services expenses are currently under the expected range at 70% of the budget, which is due to vacant positions and budgeted salary
savings. In contrast, operations and maintenance and
professional services expenses are over the expected
range at 87% and 90% , respectively, which is mainly due to encumbrances for animal care and veterinary services.
If those encumbrances are excluded, the spending is
approximately equal to the benchmark. The budgets for
these categories will need to be monitored , but overall the department’s budget should remain within its limits.
Capital outlay expenses are below the expected range at 67% and represent a contingency budget for equipment
replacement. In the second quarter, a veterinary
ultrasound system was purchased.
The Building and Safety department's personnel services expenses are at the benchmark, but excluding benefits is below, due to vacant positions. The impact of the vacant positions is that the department require d specialized
contract work to maintain operations. The result is that professional services are higher than expected at 90% due to the more spending on external contractors and
4 consultants to assist with building inspections and plan checks. Although the department's spending is generally within the expected range, it's essential to monitor
spending on p rofessional services carefully to avoid
exceeding the budgeted amount.
City Clerk and Records Management department's
spending is currently lower than expected, but that's
because the budget included an estimate for the
November municipal election. Professional services,
which is a category of expenses, is currently at a low of 5% of the budget, which was expected because the budget
had estimated a cost of $500,000 for the election.
However, new information suggests that the actual cost
will be closer to $200,000 because the Mayor and District 3 City Council elections were not needed.
City Council is below the benchmark of 75% for personnel services and operations and maintenance . Personnel
services are at 71% of the budget due to a vacant Council Member position that was filled in December 2022. On
the other hand, operations and maintenance expenses,
which cover things like travel and meetings, can vary and are not unusual to be lower or higher than the
benchmark.
City Management’s spending is on track with the expected range based on the benchmark. Operations and
maintenance expenses are at 46% of the budget, which
primarily consists of almost equal parts for travel and meetings and general operations. These expenses can
vary depending on when they occur during the year.
Professional services, which cover a range of contracted services and consulting for Healthy RC, community affairs, and general support services, also vary depending on
when they are needed and when payments to vendors are
made. However, the spending in this category is
consistent with prior year spending.
The Community Improvement department's spending on
personnel services is within the expected range. Although the spending on operations and maintenance is currently at 66% of the budget, it is not a significant category for the department overall. Outside of personnel expenditures, the majority of the department's budget is for
professional services expenses, which primarily include legal fees for abatements, civil litigation, and other
necessary services, and are at 61% of the budget . L egal expenses can vary since their use is based on the needs of the department, but also these costs can also be
recoverable.
The Community Services department is spending less on
personnel services than expected, at 57% of the budget, due to staffing shortages for full- time and part -time positions. This has impacted the services offered by the department. As a result, spending on operations and
maintenance, and professional services are also below the benchmark, at 38% and 42% of their respective budgets.
As the department is working towards resuming services
and programs to the community, it is spending resources on capital outlay projects, which are at 97% of the budget.
This includes projects such as a pickleball court at Red Hill Park and digital projects and radio equipment at the
Victoria Gardens Cultural Center.
5 Economic and Community Development's spending on
personnel services is currently below the expected
benchmark of 75%, mainly because two key positions
were not filled earlier in the fiscal year. Spending on operations and maintenance is close to the benchmark, at 59% of the budget. Professional services are 65% of its budget and include encumb rances of over $101,000 for
consulting and strategic services, which are necessary for the department's operations and the City’s economic
activity.
The Engineering department has spent below the
expected benchmark of 75% on personnel services,
accounting for 71% of its budget, due to several vacant positions during the current year. However, spending on operations and maintenance is above the benchmark, at
78% of the budget, mainly due to permits for NPDES with San Bernardino County. Professional services, the
second-largest portion of the department's budget, is at 96% of its budget, which includes spending on
engineering plan check services and other land
development services to aid in reviewing large projects.
Capital Outlay was f or miscellaneous office furniture
replacement and installation and has been fully
expended.
The Facilities department spends money on maintaining
buildings and other facilities. Their spending on
operations and maintenance, and professional services is currently at 69% and 94% of the budget, respectively. At the beginning of the fiscal year, the department
encumbered contracts for maintenance and janitorial
services. Professional services, which is the department's largest category and covers contrac ted services for
various facility-related needs, are typical to be fully spent as a result of these encumbrances.
The department's utilities spending is at 89% of the
budget. This is due to an increase in electricity and gas rates, which are important factors in determining the
department's budget for utilities. To account for these changes, the department will adjust its budgets to reflect any changes in price or expected usage for the rest of the fiscal year.
The Finance department's spending on personnel services is at the expected benchmark of 75% of the budget. The spending on operations and maintenance, which covers
things like training and office expenses, is slightly above the benchmark at 78% of the budget. The professional
services category, which includes contracts for property and sales tax consulting services and other financial
services to help implement various accounting standards, is at 86% of the budget.
The Human Resource department's spending on
personnel services is higher than the benchmark at 81%
of its budget, but this is expected due to the allocation of benefits at the beginning of the year. However, spending on operations and maintenance is below the benchmark
at only 44% of the budget. Professional services are at 66% of the budget, and this includes contracts for
investigations and COVID -19 contact tracing services.
Before contracting th ese services, the staff was
performing all COVID -19 tracing duties, which required significant effort outside of regular working hours.
6 The Innovation and Technology department's spending
on personnel services is on par with the benchmark.
However, their spending on operations and maintenance
is slightly above the benchmark at 86% of the budget,
mainly because of the user fee charge for computers and equipment from the City’s internal service fund. This fee is charged at the start of the year and is the primary expenditure in this category.
Professional services, which make up a significant portion of the department's budget at 80%, mainly consist of
software subscriptions and support services. The
department encumbers and pays vendors for these
subscriptions and services throughout the year based on the timing of their contracts.
Lastly, the department's utilities spending, which includes telephone and internet services, is at 76% of its budget.
The Planning department's spending on personnel
services is slightly above the benchmark at 76% of its
budget, while the spending on operations and
maintenance is significantly below the benchmark at 43% of the budget. This is due to the fact that costs for legal advertising and training are incurred when needed.
Spending on professional services is above the budget at 114%. However, this was allowed to exceed the budget
as it pertains to reimbursable contract services. This means that the developer has pre -funded the cost of
these services to the Ci ty. These services include peer review services, environmental reports, and other
supplemental services. The budget will be revised to
reflect the higher- than-expected services and estimated usage for the remainder of the fiscal year.
The Police department's spending is generally in line with the benchmark. However, spending on operations and
maintenance is slightly below the benchmark, at 62% of
the budget, while spending on professional services is at 72% of the budget. The former cover s events, training, and other crime prevention activities, while the latter includes a contract with the San Bernardino County
Sheriff for police services.
Meanwhile, the department's utilities spending is at 78% of the budget, which covers telephone, electricity, gas, and water expenses for its facilities. The costs have been slightly impacted by increases across the City. Finally, the "Other" category accounts for insurance costs for Police in the Public Safety Facility, which are charged quarterly and make up 75% of the budget.
The Procurement department's spending on personnel
services is above the benchmark, at 82% of its budget.
Spending on operations and maintenance is significantly below the benchmark, at only 21% of the budget;
however, this category covers expenses for training, office supplies, and other necessary expenses for the
department, which is only incurred as needed.
The Public Works department's spending on personnel
services is slightly above the benchmark at 76% of its
budget. The spending on operations and maintenance is
above the benchmark at 91% of the budget, mainly due to fees for services and equipment charge s from the City’s internal service fund at the beginning of the fiscal year.
7 Similarly, spending on professional services is at 95% of the budget due to encumbrances for maintenance
contracts made at the beginning of the fiscal year,
including park, vehicle and equipment, and street
maintenance.
The budgeted amount for utilities spending is at 55%,
which mainly includes water costs, and has not been
significantly impacted compared to other utility
categories. Capital outlay spending is also at 55% of the budget and is being used for citywide concrete repairs.
LIBRARY FUND OVERVIEW
The Library Fund re venues and expenditures are within the expected range, considering seasonality and ongoing expenses.
The Library Fund has spent 42% of its total budget for the year, while the revenues earned are 66% of the total
budget.
The Library Fund will spend more money than the prior
year, largely due to a transfer of funds to the Library Capital Fund for the Second Story and Beyond Library
capital project. This will result in the use of some of its reserves for this one-time project.
Library Revenues
Property Tax. The Library Fund is funded by a portion of the property taxes collected by the City. In addition to this, the fund also receives a specific amount of money, budgeted at $2.2 million, from the former redevelopment agency. This money is distributed in two installments, with the first installment of approximately $1.3 million received in December of the current year. The second
installment is expected to be received in June.
Other Notable Variances . Other sources of revenue are interest earned on invested funds, rental and lease
income, reimbursements, miscellaneous revenues,
contributions, and fundraising. However, this year's
revenue is significantly higher due to a large contribution from the RC Library Foundation. This contribution makes up about two-thirds of the department's total budget for the year.
Library Expenditures.
The Library Fund's spending for the year so far is mostly within the expected range. Personnel services spending is below the benchmark at 64% of the budget due to
delays in filling vacancies. Operations and maintenance spending are above the benchmark at 79% of the budget,
but this is because of the purchase of printed and digital book materials and supplies for the two libraries made at the start of the year. Professional services spending is at 72% of the budget, which is close t o the benchmark and similar to last year in the third quarter. The budgeted amount for utilit y spending is 54%, which includes
8 expenses such as internet, telephone, electricity, gas, and water for the libraries' facilities.
The Library Fund is planning t o purchase another 24/7
Library Material Kiosk to be installed when Fire Station 178 is constructed and operational. Transfers out are at the benchmark of 50%, and the significant transfer of
resources is for the Second Story and Beyond Project at Paul Biane Library, which is being paid for out of the
Library Capital Project Fund. As of the third quarter, the entire transfer has not yet been recorded.
Other expenditures include unplanned programming and
miscellaneous expenses during the year. This categ ory will vary depending on actual activity.
FIRE DISTRICT OVERVIEW
The Fire District is responsible for keeping the community safe by providing fire prevention and suppression
services. It includes the Fire General Fund and two
Community Facilities Districts (CFD) 85 -1 and 88 -1. The City has seven fire stations that are currently operational, and one is under construction.
In terms of finances, the Fire District is on track with its spending and revenue expectations for the year. As of now, the Fire District has spent 63% of its total budget while earning 62% of the total budget. This is due to the expected expenses and revenues for this time of year.
Fire District Revenues
Property Tax. The property tax revenue category for the Fire District, just like the City, includes several sources of revenue. The biggest source, besides the usual property tax, is the money received from the former
redevelopment agency, which is distributed in two
installments. The first installment of about $8.4 million was received in December of the current year, and the
second is expected in June.
Additionally, there are two Community Facilities Districts (CFD 85-1 and 88-1) that collect special taxes within their boundaries for funding administration, personnel
services, maintenance, and operations. The special tax levy has remained unchanged for several years, and the
Fire District helps fund the CFDs. Together, the CFDs will collect $6.7 million and receive a contribution of $3.6 million in resources from the Fire District. These
contributions are reflected as Transfer s In (revenue) to the CFDs and Transfers Out (expenditure) from the Fire
District in the Fire District's summary, revenue, and
expenditure tables.
Other Revenues. Th is category includes money earned
from investments, rental and lease income,
reimbursements, and miscellaneous sources. Most of the reimbursements in this category are from the Other Post- Employment Benefits (OPEB) Trust and non -abated
reimbursements, primarily from CalOES. Together, these
two types of reimbursements make up the majority of the budget for this category. At the end of each fiscal year, Finance requests reimbursements from the OPEB Trust to
cover retiree healthcare costs. The timing of
reimbursement receipts from CalOES for fire support
depends on when the state agency processes them.
9 Fire District Expenditures
The Fire District's spending is mostly within the expected range, except for a few categories. Personnel services, which account for employee salaries and benefits, are at 66% of the budget. This is similar to the previous year and differs from the City's allocation of benefits at the
beginning of the year.
Operations and maintenance, which includes maintaining
fire stations and equipment, is at 68% of the budget, while professional services, such as legal and consulting fees, are at 72% of the budget. These two categories are close to the benchmark and expected spending range.
Utilities spending for the Fire District's facilities and stations are on par with the benchmark at 75% of the
budget. Debt service, which is the amount of money paid towards repaying loans, is at 75% of the budget. This is due to an interfund loan between the Fire District and the General Fund, which will be fully repaid by October 2023.
The interest component of the loan i s shown as debt
service for the Fire District.
Other expenditures are at 13%, with the significant
budget item being the Fire District's planned additional discretionary unfunded actuarial liability (UAL) payment to CalPERS of $3.7 million. This payment is not made until the final quarter of the year.
10 ECONOMIC BRIEF
The economic brief provides information on economic indicators that can be used to measure and track economic activity at a local level. The economy is a combination of individual, business, and government spending or investment at the national, regional, and local levels. Governments of all levels keep an eye on these economic factors to assess the strength of the economy. This section of the brief focuses on indicators that can help track aspects of the local economy.
Here is a summary of the economic updates for the City provided in this report:
Statewide, Regional and Local Labor Market
The City and California have a low unemployment rate, which means people who are looking for jobs can find employment, and this is generally good for the economy. A low unemployment rate indicates disposable income is available by households to purchase goods, which can stimulate economic growth.
• According to preliminary March 2023 figures, San Mateo County had the lowest unemployment rate in California at 2.8%, and San Francisco County was at 3.0%. On the other hand, Imperial County had the highest unemployment rate at 15.6%, and Colusa County was at 19.2%.
• Over the year, the unemployment rate decreased in four out of 58 counties in March 2023, but San Bernardino County increased by 0.3% (4.5% in March 2023, compared to 4.2% in March 2022) during that period.
The unemployment rate increased slightly to 3.3% in March 2023, but it's the same as in March 2022 at 3.2%.
The number of people in the workforce and those who have jobs has not changed significantly.
Inflation has decreased from its highest point but is still higher than historical benchmark.
The cost of borrowing money has gone up, lowering the
volume of home sales and median home price.
Even though inflation has increased taxable sales, people are spending less money overall, which is a continuing concern.
11 The graph below shows the unemployment rates (not seasonally adjusted) for the largest areas statewide for March 2023:
Source: Employment Development Department, State of California
The City is doing well compared to similar areas in terms of unemployment:
• In March 2023, the City's unemployment rate was 3.3%, slightly up from 2.6% in December 2022 and 2.7% in September 2022.
• The City has a good track record compared to San Bernardino County and California overall. In March 2023, the City's unemployment rate was 1.2% lower than San Bernardino County's rate of 4.5% and 1.5% lower than California's rate of 4.8%.
Source: Employment Development Department, State of California
4.0%
3.0%
4.5%
3.8%
4.5%
3.2%
4.6%
3.4%
3.7%
5.0%
Contra Costa County
San Francisco County
Sacramento County
Alameda County
San Bernardino County
Santa Clara County
Riverside County
Orange County
San Diego County
Los Angeles County
Unemployment Rate by T en Largest Coun�es
4.0%
8.6%
2.9%
3.3%
4.4%
3.9%
3.4%
3.7%
4.5%
5.0%
Oxnard-Thousand Oaks-Ventura MSA
Fresno MSA
San Francisco-Redwood City-South
San Francisco MD
San Jose-Sunnyvale -Santa Clara MSA
Sacramento--Roseville --Arden-Arcade
MSA
Oakland-Hayward-Berkeley MD
Anaheim-Santa Ana-Irvine MD
San Diego-Carlsbad MSA
Riverside -San Bernardino-Ontario
MSA
Los Angeles-Long Beach-Glendale MD
Unemployment Rate by Ten Largest Areas
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
Unemployment Rate Historical Trend
Rancho Cucamonga San Bernardino California
12 The table below summarizes and compares the City, County, and State’s second quarter unemployment rates.
Source: Employment Development Department, State of California
The following graph shows that the City unemployment rate is also favorable when analyzed against adjacent and comparable cities in San Bernardino County.
Source: Employment Development Department, State of California
3.3%
3.0%
4.3%
4.1%
3.7%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
Rancho Cucamonga Chino Hills Fontana Ontario Upland
Unemployment Rates By City
Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23
13 Labor Force
The labor force is a way to measure the job market's health. It counts all the people who are employed or looking for work but not those who are unemployed and not actively seeking employment. This helps us understand how many people are actively seeking employment and their likelihood of finding a job.
Over the last year, many people have been quitting their jobs, and tracking the labor force can tell us if they are finding new jobs or leaving the workforce altogether.
In March 2023, the City's labor force increased slightly to 100,900 from 100,800 in Febru ary 2023 but was lower than the 101,300 in March 2022. The number of unemployed workers increased by 200, and the number of employed workers decreased by 500, which corresponds to the minor changes in the unemployment rate that we previously mentioned.
Source: Employment Development Department, State of California
An expanding labor force and rising employment numbers are positive signs for the economy. The chart below shows the City's labor force and employment figures from the past two years. The gap between the labor force and full employment represents the number of unemployed people rather than the percentage rate. When the gap is narrow, it indicates that although anything below 5% unemployment is considered "full employment," there are still very few people without a job.
Source: Employment Development Department, State of California 84,000
86,000
88,000
90,000
92,000
94,000
96,000
98,000
100,000
102,000
104,000
Employment and Labor Force
Employment
Labor Force
14 Consumer Price Index
The Consumer Price Index (CPI) is a wa y to measure the change in the prices of goods and services over time. It helps us compare how much things cost this month compared to a month or year ago. While the CPI is the most commonly used measure of inflation, it is not a cost-of-living index.
The CPI is calculated regularly in cities and metropolitan areas, taking into account a combination of factors that affect price changes. The two graphs below show the cumulative inflation and year- over-year changes for consumers in the Riverside-San Bernardino-Ontario area from January 2021 to March 2023. The baseline period is January 2021 (which is set to $100).
Source: Bureau of Labor Statistics
15 The median CPI is used by the Federal Reserve Bank of Cleveland to measure inflation by excluding prices that change a lot, like food and energy, which are influenced by global markets. Instead, the highest and lowest inflation rates are removed, and the median inflation rate in the middle is used to calculate the median CPI. This helps to identify average price trends at any given time. The graph below shows that the median CPI has been steadily increasing over the past year and is currently at its highest level in decades. This is concerning because it suggests that overall prices for goods and services are increasing, not just for a few categories.
Source: Federal Reserve Bank of Cleveland
0 1
2 3
4 5
6 7
8 9
10 2018 2019 2020 2021 2022 2023
Year-over-year percent change
Median Consumer Price Index
mediancpi cpi
16 Property Tax
Home sales have decreased in the first quarter of 2023 compared to record highs over the last two years . This decline is likely due to higher interest rates and overall borrowing costs, which reduce demand. The median home price has decreased by 5.1% in the first quarter of 2022 and by 12.0% from its peak in the second quarter of 2022.
However, median home prices are still up 10.4% from two years ago. The graph below shows the median sales prices of a detached single-family home in the City and the number of sales by year and quarter.
Source: HdL Companies
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
0 100
200
300
400
500
600
2020
Q1
2020
Q2
2020
Q3
2020
Q4
2021
Q1
2021
Q2
2021
Q3
2021
Q4
2022
Q1
2022
Q2
2022
Q3
2022
Q4
2023
Q1
Median Price
Sales
Sales Value History
Full Value Sales Median Price
17 Sales Tax
The City gets most of its sales tax revenue from a few main types of businesses, such as stores selling everyday items, industrial companies, and restaurants and hotels. Another significant revenue source is sales tax receipts from state and county pools, which m ainly come from online shopping and other purchases made in the pools and then distributed to the City. City staff closely monitor the impact of these pools because it reveals how people choose to shop. After the initial easing of COVID-19 restrictions, in-person shopping has increased, but in recent months, online shopping has started to pick up again and continues to grow.
In the most recent data from the fou rth calendar quarter of 2022 , the City’s sales receipts grew from the prior year due to strong job numbers and low unemployment . The City’s largest sector, general consumer goods, increased in tax receipts due to inflation which raises taxable sales overall. Additionally, brick-and-mortar retailers have shown mixed results, as last year was exceptional after coming out of the pandemic, but now appear to be pulling back. Generally, these types of impacts have the ability to create growth in the short term and flatten out in the long term.
The restaurants and hotels industry also performed well, considering increased menu prices and more people returning to offices, but it does show some signs of slowing. This sector is also negatively impacted by the staffing shortage that is impacting virtually all industries.
Use taxes, which are remitted via countywide pools, increased slightly as e-commerce spending behavior continued to climb upward.
The chart below depicts the most recent available sales tax statistics.
General Consumer Goods
33%
Business and Industry
13%
Restaurants and Hotels
15%
State and County Pools
15%
Autos and Transporta�on
6% Building and Construc�on
7%
Fuel and Service Sta�ons
5%
Food and Drugs
5%
4Q 2022 Percent of Total