Rancho Cucamonga City Council
April 2, 2025

CITY COUNCIL VISION STATEMENT
“Our Vision is to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive by building on our foundation and success as a world class community.”

Mayor
L. Dennis Michael

Mayor Pro Tem
Lynne B. Kennedy

Members of the City
Council:

Ryan A. Hutchison
Kristine D. Scott
Ashley Stickler

CITY OF RANCHO CUCAMONGA

REGULAR MEETING AGENDA
April 2, 2025
10500 Civic Center Drive
Rancho Cucamonga, CA 91730

FIRE PROTECTION DISTRICT BOARD – CITY COUNCIL
HOUSING SUCCESSOR AGENCY- SUCCESSOR AGENCY –

PUBLIC FINANCE AUTHORITY

CLOSED SESSION

REGULAR MEETINGS

TAPIA CONFERENCE ROOM

COUNCIL CHAMBERS
4:30 P.M.
7:00 P.M.

The City Council meets regularly on the first and third Wednesday of the month at 7:00 p.m. in the Council Chambers located at 10500 Civic Center Drive. It is the intent to conclude the meeting by 10:00 p.m. unless extended by the concurrence of the City Council. Agendas, minutes, and recordings of meetings can be found at https://www.cityofrc.us/your-government/city-council-agendas or by contacting the City Clerk Services Department at 909-774-2023. Live Broadcast available on Channel 3 (RCTV-3). For City Council Rules of Decorum refer to Resolution No. 2023-086.

Any documents distributed to a majority of the City Council regarding any item on this agenda after distribution of the agenda packet will be made available in the City Clerk Services Department during normal business hours at City Hall located at 10500 Civic Center Drive, Rancho Cucamonga, CA 91730. In addition, such documents will be posted on the City’s website at https://www.cityofrc.us/your-government/city-council-agendas.

CLOSED SESSION – 4:30 P.M.

TAPIA CONFERENCE ROOM

ROLL CALL: Mayor Michael
Mayor Pro Tem Kennedy
Council Members Hutchison, Scott and Stickler

A. ANNOUNCEMENT OF CLOSED SESSION ITEM(S)

B. PUBLIC COMMUNICATIONS ON CLOSED SESSION ITEM(S)

C. CITY MANAGER ANNOUNCEMENTS

D. CONDUCT OF CLOSED SESSION

D1. CONFERENCE WITH LABOR NEGOTIATORS ROBERT NEIUBER, SENIOR HUMAN RESOURCES

DIRECTOR, PETER CASTRO, DEPUTY CITY MANAGER/ADMINISTRATIVE SERVICES, MATT BURRIS,

DEPUTY CITY MANAGER/ECONOMIC AND COMMUNITY DEVELOPMENT AND JEVIN KAYE, FINANCE DIRECTOR; PER GOVERNMENT CODE SECTION 54954.2 REGARDING LABOR NEGOTIATIONS WITH THE FIRE SUPPORT SERVICES ASSOCIATION AND TEAMSTERS LOCAL 1932. (CITY)

D2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PER GOVERNMENT CODE SECTION 54956.8 FOR PROPERTY IDENTIFIED AS PARCEL NUMBER 0229-012-08-0000 COMMONLY KNOWN AS ADDRESS 8434 ROCHESTER AVENUE, RANCHO CUCAMONGA, CA 91730; NEGOTIATING PARTIES

MATT MARQUEZ, DIRECTOR OF ECONOMIC DEVELOPMENT, REPRESENTING THE CITY OF RANCHO

CITY COUNCIL VISION STATEMENT
“Our Vision is to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive by building on our foundation and success as a world class community.”

CUCAMONGA, AND RICHARD LEE, REPRESENTING CBRE GROUP, INC., REGARDING PRICE AND TERMS. (CITY)

E. RECESS

REGULAR MEETING – 7:00 P.M.

COUNCIL CHAMBERS

PLEDGE OF ALLEGIANCE

ROLL CALL: Mayor Michael
Mayor Pro Tem Kennedy
Council Members Hutchison, Scott and Stickler

A. AMENDMENTS TO THE AGENDA

B. ANNOUNCEMENTS / PRESENTATIONS

B1. Presentation of a Proclamation to OneLegacy Declaring the Month of April 2025 as Donate Life Month.

C. PUBLIC COMMUNICATIONS

This is the time and place for the general public to address the Fire Protection District, Housing Successor Agency, Successor Agency, Public Financing Authority Board, and City Council on any item listed or not listed on the agenda. State law prohibits us from addressing any issue not on the Agenda. Testimony may be received and referred to staff or scheduled for a future meeting.

Comments are to be limited to three (3) minutes per individual. All communications are to be addressed directly to the Fire Board, Agencies, Successor Agency, Authority Board, or City Council not to the members of the audience. This is a professional business meeting and courtesy and decorum are expected. Please refrain from any debate between audience and speaker, disorderly or boisterous conduct that disturbs, disrupts, or otherwise impedes the orderly conduct of the meeting. For more information, refer to the City Council Rules of Decorum and Order (Resolution No. 2023-086) located in the back of the Council Chambers.

The public communications period will not exceed one hour prior to the commencement of the business portion of the agenda. During this one hour period, all those who wish to speak on a topic contained in the business portion of the agenda will be given priority, and no further speaker cards for these business items (with the exception of public hearing items) will be accepted once the business portion of the agenda commences. Any other public communications which have not concluded during this one hour period may resume after the regular business portion of the agenda has been completed.

CONSENT CALENDARS:

The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon without discussion unless an item is removed by Council Member for discussion.

Members of the City Council also sit as the Fire Board, Housing Successor Agency, Successor Agency, and Public Finance Authority and may act on the consent calendar for those bodies as part of a single motion with the City Council consent calendar.

D. CONSENT CALENDAR

D1. Consideration to Approve the Minutes of the Special and Regular Meetings of March 19, 2025.

CITY COUNCIL VISION STATEMENT
“Our Vision is to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive by building on our foundation and success as a world class community.”

D2. Consideration to Approve City and Fire District Bi-Weekly Payroll in the Total Amount of $2,389,108.47 and City and Fire District Weekly Check Registers (Excluding Checks Issued to Southern California Gas Company) in the Total Amount of $3,770,492.59 Dated March 10, 2025, Through March 25, 2025. (CITY/FIRE)

D3. Consideration to Approve Fire District Weekly Check Registers for Checks Issued to Southern California Gas Company in the Total Amount of $330.23 Dated March 10, 2025, Through March 25, 2025. (FIRE)

D4. Consideration to Receive and File Current Investment Schedules as of February 28, 2025 for the City of Rancho Cucamonga and the Rancho Cucamonga Fire Protection District. (CITY/FIRE)

D5. Consideration of Amendment No. 001 to the Professional Services Agreement with On Duty Health, PLLC for Health and Fitness Assessments in the Amount of $32,790 Annually. (FIRE)

D6. Consideration to Approve a Four-Year Agreement with Sidepath Inc. in the Amount of $620,760 for Network Equipment License and Support. (CITY/FIRE)

D7. Consideration of the Cooperative Purchase of One (1) PB Loader B-6 Asphalt Patcher via the Sourcewell Contract Number 080521-PBL from Nixon-Egli Equipment Co. in the Amount of $441,243.88. (CITY)

D8. Consideration to Approve an Improvement Agreement and Improvement Securities for Public Improvements, to Approve the Plans and Specifications for the Related Public Improvements, and to Approve a Resolution Ordering the Annexation into Landscape Maintenance District No. 7 Related to Case No. DRC2020-00438, Located on the Southeast Corner of East Avenue and Banyan Street (Project). The Project Has Been Determined by Staff to Be Exempt from the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15303 – New Construction or Conversion of Small Structures. (RESOLUTION NO. 2025- 011) (CITY)

E. CONSENT CALENDAR ORDINANCE(S) - SECOND READING/ADOPTION

E1. Consideration of Second Reading and Adoption of the Following:

ORDINANCE NO. 1037
AN ORDINANCE OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ADDING CHAPTER 9.38 TO TITLE 9 OF THE RANCHO CUCAMONGA MUNICIPAL CODE CONCERNING THE PROHIBITION AGAINST

CAMPING ON PUBLIC PROPERTY OR INTERFERENCE WITH THE USE OF PUBLIC PROPERTY

INCLUDING PUBLIC ACCESS

F. ADMINISTRATIVE HEARING ITEM(S)

G. ADVERTISED PUBLIC HEARINGS ITEM(S) - CITY/FIRE DISTRICT

G1. Public Hearing for Consideration of Resolution No. 2025-010, A Resolution of the City Council of Rancho Cucamonga, California, Approving Development Impact Fee Nexus Studies, Adopting Capital Improvement Programs as Part of the Nexus Studies, Updating and Establishing the Fee Amounts for the City’s Development Impact Fees, and Making a Determination of Exemption Under CEQA and Consideration of First Reading of Ordinance No. 1038, to be Read by Title Only and Waive Further Reading, An Ordinance of the City of Rancho Cucamonga, Adding Chapter 3.80 to the Rancho Cucamonga Municipal Code, Establishing a Development Impact Fee for Fire Impacts of Residential and Business Development, Amending Chapter 3.68 to Remove References to Quimby Act in Lieu Fees, and Making a Determination of Exemption from the California Environmental Quality Act. (RESOLUTION NO. 2025-010 ) (ORDINANCE NO. 1038 ) (CITY)

H. CITY MANAGER'S STAFF REPORT(S)

H1. Consideration to Receive and File the Midyear Financial Update for the Fiscal Year 2024/25 and Approve Various Appropriations and Related Actions. (CITY/FIRE)

CITY COUNCIL VISION STATEMENT
“Our Vision is to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive by building on our foundation and success as a world class community.”

I. COUNCIL BUSINESS

I1. COUNCIL ANNOUNCEMENTS

(Comments to be limited to three minutes per Council Member.)

I2. INTERAGENCY UPDATES

(Update by the City Council to the community on the meetings that were attended.)

J. CITY ATTORNEY ITEMS

K. IDENTIFICATION OF ITEMS FOR NEXT MEETING

L. ADJOURNMENT

CERTIFICATION
I, Linda A. Troyan, MMC, City Clerk Services Director of the City of Rancho Cucamonga, or my designee, hereby certify under penalty of perjury that a true, accurate copy of the foregoing agenda was posted at least seventy-two (72) hours prior to the meeting per Government Code 54954.2 at 10500 Civic Center Drive, Rancho Cucamonga, California and on the City's website.

LINDA A. TROYAN, MMC

CITY CLERK SERVICES DIRECTOR

If you need special assistance or accommodations to participate in this meeting, please contact the City Clerk's office at (909) 774-2023. Notification of 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility. Listening devices are available for the hearing impaired.

DATE:April 2, 2025
TO:Mayor and Members of the City Council
President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY: Jevin Kaye, Finance Director
Veronica Lopez, Accounts Payable Supervisor
SUBJECT: Consideration to Approve City and Fire District Bi-Weekly Payroll in the Total Amount of $2,389,108.47 and City and Fire District Weekly Check Registers (Excluding Checks Issued to Southern California Gas Company) in the Total Amount of $3,770,492.59 Dated March 10, 2025, Through March 25, 2025. (CITY/FIRE)
RECOMMENDATION:

Staff recommends City Council/Board of Directors of the Fire Protection District approve payment of demands as presented. Bi-weekly payroll is $1,001,528.29 and $1,387,580.18 for the City and the Fire District, respectively. Weekly check register amounts are $3,579,941.23 and $190,551.36 for the City and the Fire District, respectively.

BACKGROUND:

N/A
ANALYSIS:

N/A
FISCAL IMPACT:

Adequate budgeted funds are available for the payment of demands per the attached listing.

COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:

N/A
ATTACHMENTS:

Attachment 1 - Weekly Check Register

DATE:April 2, 2025
TO:Mayor and Members of the City Council
President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY: Jevin Kaye, Finance Director
Veronica Lopez, Accounts Payable Supervisor
SUBJECT: Consideration to Approve Fire District Weekly Check Registers for Checks Issued to Southern California Gas Company in the Total Amount of $330.23 Dated March 10, 2025, Through March 25, 2025. (FIRE) RECOMMENDATION:

Staff recommends City Council/Board of Directors of the Fire Protection District approve payment of demands as presented. Weekly check register amounts are $330.23 the Fire District, respectively.

BACKGROUND:

N/A
ANALYSIS:

N/A

FISCAL IMPACT:

Adequate budgeted funds are available for the payment of demands per the attached listing.

COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:

N/A
ATTACHMENTS:

Attachment 1 - Weekly Check Register

DATE:April 2, 2025
TO:Mayor and Members of the City Council
President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY: Jevin Kaye, Finance Director
Rick Flinchum, Finance Manager
SUBJECT: Consideration to Receive and File Current Investment Schedules as of February 28, 2025 for the City of Rancho Cucamonga and the Rancho Cucamonga Fire Protection District. (CITY/FIRE)
RECOMMENDATION:

Staff recommends that the City Council/Board of Directors of the Fire Protection District receive and file the attached current investment schedules for the City of Rancho Cucamonga (City) and the Rancho Cucamonga Fire Protection District (District) as of February 28, 2025.

BACKGROUND:

The attached investment schedules as of February 28, 2025, reflect cash and investments managed by the Finance Department/Revenue Management Division and are in conformity with the requirements of California Government Code Section 53601 and the City of Rancho Cucamonga’s and the Rancho Cucamonga Fire Protection District’s adopted Investment Policies as approved on June 27, 2024.

ANALYSIS:

The City’s and District’s Treasurers are each required to submit a quarterly investment report to the City Council and the Fire Board, respectively, in accordance with California Government Code Section 53646. The quarterly investment report is required to be submitted within 30 days following the end of the quarter covered by the report. However, the City and District Treasurers have each elected to provide this report on a monthly basis.

FISCAL IMPACT:

None.

COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:

The monthly investment schedule supports the City Council’s core value of providing and nurturing a high quality of life for all by demonstrating the active, prudent fiscal management of the City’s investment portfolio to ensure that financial resources are available to support the various services the city provides to all Rancho Cucamonga stakeholders.

ATTACHMENTS:

Attachment 1 – Investment Schedules as of February 28, 2025 (City) Attachment 2 – Investment Schedules as of February 28, 2025 (Fire)

DATE:April 2, 2025
TO:President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY: Mike McCliman, Fire Chief
Ty Harris, Deputy Fire Chief
Darci Vogel, Fire Business Manager
SUBJECT: Consideration of Amendment No. 001 to the Professional Services Agreement with On Duty Health, PLLC for Health and Fitness Assessments in the Amount of $32,790 Annually. (FIRE)
RECOMMENDATION:

Staff recommends the Fire Board approve Amendment No. 001 to the Professional Services Agreement with On Duty Health, PLLC in the amount of $32,790 annually for health and fitness assessments.

BACKGROUND:

The National Fire Protection Association (NFPA) develops and publishes codes and standards related to fire safety. This includes establishing requirements to protect fire personnel from the hazards encountered while performing firefighting and lifesaving operations. NFPA 1582, Standard on Comprehensive Occupational Medical Program for Fire Departments, outlines an occupational medical program to reduce risks and provide for the health, safety, and effectiveness of fire fighters operating to protect civilian life and property. The purpose of NFPA 1582 is to reduce the likelihood of fire personnel from suffering a preventable line-of-duty death. It provides a baseline health assessment to determine whether or not employees are likely to incur a debilitating injury or medical event in the course of performing their duties as a first responder.

On August 21, 2025, the Fire District and On Duty Health, PLLC (ODH) entered into a Professional Services Agreement (PSA), CO# FD 2024-006, for health and fitness assessments in the amount of $222,210.

ANALYSIS:

The Fire District has determined the need to expand the scope of services to include additional male and female health assessments, as well as lung cancer screening. In order to streamline the hiring process, the Fire District has also determined the need to include pre-employment physical exams in the scope of services.

Staff recommends that the Fire Board approve Amendment No. 001 to CO# FD 2024-006 with ODH to incorporate the following:

1. Expanded Consultant Services: Section 1 is amended to include Pre-Employment Physicals, Male and Female Health Assessments, and Low Dose CT Lung Cancer

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Screening.

2. Agreement Term Extension: Section 2 is amended to extend the Agreement for an additional two (2) years, covering the period from August 21, 2025 through August 20, 2027.

3. Updated Compensation: Section 3 is amended to adjust the total annual not-to-exceed compensation from a maximum amount of $222,508 to a new maximum amount of $255,000.

All other Terms and Conditions of the original Agreement CO# FD 2024-006, will remain in full effect.

FISCAL IMPACT:

The total cost of the amendment is $32,790. Sufficient funds are available in the Fire Fund under account F281 CC501 SC2106 ((Fire Administration - Contract Services) for this amendment.

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. This is accomplished by enhancing the Fire District’s occupational medical program to reduce risks and provide for the health, safety, and effectiveness of personnel operating to protect civilian life and property.

ATTACHMENTS:

None.

DATE:April 2, 2025
TO:Mayor and Members of the City Council
President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY: Shelly Munson, Director of Innovation & Technology Mike McCliman, Fire Chief
Lilyan Villarreal, Deputy Director of Innovation &Technology Tanya Trieu-Bui, Management Analyst I
SUBJECT: Consideration to Approve a Four-Year Agreement with Sidepath Inc. in the Amount of $620,760 for Network Equipment License and Support. (CITY/FIRE)
RECOMMENDATION:

Staff recommends the City Council / Fire Board approve a four-year agreement with Sidepath Inc. in the amount of $620,760 for Network Equipment License and Support.

BACKGROUND:

The City's IT infrastructure incorporates a virtualized environment, leveraging advanced virtualization software to host and manage virtual machines and resources, enabling efficient resource allocation, scalability, and high availability. Additionally, it reduces costs by minimizing the need for physical machines and servers. The virtualized environment enhances security by enabling features such as access control and application isolation. It also simplifies disaster recovery, allowing for faster restoration compared to resolving hardware failures. Additionally, having a virtual environment allows the Department of Innovation and Technology (DoIT) the flexibility to quickly scale up or down to meet the City and Fire District’s needs. On October 18, 2023, the City Council approved a five-year Enterprise Licensing Agreement (ELA), however the integrated storage license was not purchased as part of the ELA. DoIT requires an additional license to be added to the ELA, which is required for the management and support of storage for the virtual machines.

ANALYSIS:

The Virtualization Software Enterprise Licensing Agreement (ELA) will be co-termed with the existing agreement which is set to expire in October of 2028. During FY 2023/24 the Network Equipment License and Support was not previously included in the ELA but is now a required component.

Due to increased cybersecurity threats, DoIT and Procurement opted to forego a formal bid process for the original ELA, as sensitive information would need to be disclosed to obtain a public request for bid response. As an alternative, DoIT obtained a proposal from Sidepath, a Certified Principal Partner and Dell recommended vendor, as a single source vendor. A Certified Principal Partner is an organization that has earned “Master Services Competencies” that demonstrates

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expertise in the virtualization software. The added license and support will be purchased from the same vendor.

Fiscal Year City Share (50%) Fire District Share (50%) Total Cost FY 2024/25 $88,680 $88,680 $177,360
FY 2025/26 $88,680 $88,680 $177,360
FY 2026/27 $88,680 $88,680 $177,360
FY 2027/28 $44,340 $44,340 $ 88,680
Total: $310,380 $310,380 $620,760
FISCAL IMPACT:

The cost for the current FY 2024-25 is $177,360, and the total cost of the four-year agreement is $620,760. Sufficient funds are available for the current FY 2024-25 budget in Fire Fund account F288|CC501|SC2107 (Contract Services-Software) and General Fund account F001|CC209|SC2107 (Contract Services-Software). Future costs will be included in annual budget development for both the City and Fire District.

COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:

This item addresses the City Council’s Core Value of intentionally embracing and anticipating our future.

ATTACHMENTS:

Attachment 1 - Sidepath Quotation

DATE:April 2, 2025
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY: Neil Plummer, Public Works Services Director Richard Favela, Streets, Storm Drains, and Fleet Superintendent Albert Lopez, Fleet Supervisor
Paige Eberle, Management Analyst I
SUBJECT: Consideration of the Cooperative Purchase of One (1) PB Loader B-6 Asphalt Patcher via the Sourcewell Contract Number 080521-PBL from Nixon-Egli Equipment Co. in the Amount of $441,243.88. (CITY) RECOMMENDATION:

Staff recommends the City Council approve the cooperative purchase of one (1) PB Loader B-6 Asphalt Patcher via the Sourcewell Contract Number 080521-PBL from Nixon-Egli Equipment Co. in the Amount of $441,243.88 to be funded from the equipment/vehicle replacement fund.

BACKGROUND:

The Public Works Services Department (PWSD) Streets Division maintains critical infrastructure within the city, including repairing asphalt related to utility excavations for the Cucamonga Valley Water District. An asphalt patcher is an essential piece of equipment used for the repair of roadways. After a comprehensive review by PWSD staff, the selected PB Loader B-6 Asphalt Patcher is being recommended for purchase. Funding for the PB Loader B-6 Asphalt Patcher was included in the Adopted FY 2024/25 Budget.

During equipment research, staff identified a Sourcewell contract with Nixon-Elgi Equipment Co. for the procurement of heavy-duty construction equipment. Sourcewell is a purchasing platform for public agencies that pre-screens vendors and gives the member organizations a cooperative purchase advantage. By procuring this equipment through an already competitively bid and awarded Sourcewell contract, the City will reduce staff time to bid the purchase, resulting in higher efficiency and cost savings.

ANALYSIS:

Sourcewell offers a cooperative purchasing model that streamlines the procurement process for cities by eliminating the requirement for individual bidding and negotiation. Such collaboration guarantees that cities receive quality products through competitively bid Sourcewell contracts, which not only saves time but also guarantees a discount of 18% per unit.

If approved, PWSD will procure one (1) PB Loader B-6 Asphalt Patcher via the Sourcewell Contract Number 080521-PBL from Nixon-Egli Equipment Co., a necessary piece of equipment to maintain roadways.

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FISCAL IMPACT:

The Adopted FY 2024/25 Budget included the replacement of unit 2652 2013 Freightliner Patch Truck Skid Steer Unit 664 in the equipment/vehicle replacement fund F712 CC001 7000 SC7002.

COUNCIL MISSION / VISION / VALUE(S) ADDRESSED:

This item addresses the City Council’s core values of providing and nurturing a high quality of life for all and promoting and enhancing a safe and healthy community for all.

ATTACHMENTS:

Attachment 1 – Nixon-Egli Equipment Co. Proposal

DATE: April 2, 2025
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 James Lo, Assistant Engineer
SUBJECT: Consideration to Approve an Improvement Agreement and Improvement Securities for Public Improvements, to Approve the Plans and Specifications for the Related Public Improvements, and to Approve a Resolution Ordering the Annexation into Landscape Maintenance District No. 7 Related to Case No. DRC2020-00438, Located on the Southeast Corner of East Avenue and Banyan Street (Project). The Project Has Been Determined by Staff to Be Exempt from the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15303 – New Construction or Conversion of Small Structures. (RESOLUTION NO. 2025-011) (CITY)
RECOMMENDATION:

Staff recommends the City Council:

1. Approve an Improvement Agreement for related public improvements to the Project and authorize the Mayor and the City Clerk to sign said Agreement;

2. Accept security in the form of bonds for completion of the related public improvements;

3. Approve the plans and specifications for the related public improvements on file with the City Engineer; and

4. Adopt the attached resolution ordering the annexation to Landscape Maintenance District No.7.

BACKGROUND:

On June 22, 2021, the Planning Commission approved Case No. DRC2020-00438 for the development of a 2,641 square-foot single family residence with an attached 751.75 square-foot three (3) car garage located on the southeast corner of East Avenue and Banyan Street.

Case No. DRC2020-00438 was approved with a condition that certain public improvements be constructed including street improvements, curb and gutter, driveway approaches, street trees, and that the land be annexed into the appropriate special districts.

ANALYSIS:

The developer, Diane Romo has submitted an Improvement Agreement and securities to guarantee construction of the off-site public improvements in the following amounts:

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Faithful Performance Bond $39,000 Bond #4460578
Labor and Material Bond $39,000 Bond #4460578
Approval of these items by the Council would approve the Improvement Agreements, accept the securities for the construction of certain public improvements, and adopt the attached resolution ordering the annexation to Landscape Maintenance District No. 7. Copies of the Improvement Agreement and annexation form are on file in the City Clerk’s office.

ENVIRONMENTAL ANALYSIS:

Pursuant to the California Environmental Act (CEQA) and the City’s local CEQA Guidelines, the Planning Director determined that the Project qualifies as a Class 3 exemption under state CEQA Guidelines Section 15303 – New Construction or Conversion of Small Structures which covers the construction of single-family residences in a residential zone.

FISCAL IMPACT:

The proposed annexation would satisfy the conditions of approval for the development and supply additional annual revenue into the landscape maintenance district in the following amount:

Landscape Maintenance District No. 7: $307.05 The developer will be installing four (4) new street trees that will be maintained by the City.

COUNCIL MISSION / VISION / VALUE(S) ADDRESSED:

This item addresses the City Council’s vision to build on our success as a world class community, to create an equitable, sustainable, and vibrant city, rich in opportunity for all to thrive through the construction of high-quality public improvements.

ATTACHMENTS:

Attachment 1 – Vicinity Map
Attachment 2 – Resolution Ordering Annexation LMD No. 7

DATE: April 2, 2025
TO: Mayor and Members of the City Council
FROM: John R. Gillison, City Manager
INITIATED BY: Erika Lewis-Huntley, Management Analyst III SUBJECT: Consideration of Second Reading and Adoption of the Following:

ORDINANCE NO. 1037

AN ORDINANCE OF THE CITY OF RANCHO CUCAMONGA,
CALIFORNIA, ADDING CHAPTER 9.38 TO TITLE 9 OF THE RANCHO

CUCAMONGA MUNICIPAL CODE CONCERNING THE PROHIBITION

AGAINST CAMPING ON PUBLIC PROPERTY OR INTERFERENCE

WITH THE USE OF PUBLIC PROPERTY INCLUDING PUBLIC
ACCESS
RECOMMENDATION:

Staff recommends the City Council waive full reading and adopt Ordinance No. 1037.

BACKGROUND:

The introduction and first reading of the above-entitled Ordinance was conducted at the Regular City Council meeting of March 19, 2025.

Votes at first reading: AYES: Hutchison, Scott, Stickler. ABSENT: Michael, Kennedy.

ANALYSIS:

Please refer to the March 19, 2025 City Council staff report.

FISCAL IMPACT:

Please refer to the March 19, 2025 City Council staff report.

COUNCIL MISSION / VISION / VALUE(S) ADDRESSED:

Please refer to the March 19, 2025 City Council staff report.

ATTACHMENTS:

Attachment 1 – Ordinance No. 1037

Ordinance No. 1037 - Page 1 of 7
ORDINANCE NO. 1037

AN ORDINANCE OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ADDING CHAPTER 9.38 TO TITLE 9 OF THE RANCHO CUCAMONGA MUNICIPAL

CODE CONCERNING THE PROHIBITION AGAINST CAMPING ON PUBLIC

PROPERTY OR INTERFERENCE WITH THE USE OF PUBLIC PROPERTY

INCLUDING PUBLIC ACCESS
WHEREAS, the City of Rancho Cucamonga (“City”) is committed to ensuring the safety, health, and welfare of all its residents, visitors, and businesses; WHEREAS, it is the obligation of the City to keep the public rights-of-way and public spaces clean and available for public use and to ensure access by the public to all property, both public and private, by the disabled, elderly, families, children, and visitors to Rancho Cucamonga;
WHEREAS, the public has expressed concern that access to public and private property is being impeded or prevented by the storage of personal items on public property, by people camping on public property, and by people using the public rights- of-way to sit, sleep and lie down;
WHEREAS, public spaces, including parks, streets, and sidewalks are intended for the use and enjoyment of all members of the community and should be maintained in a safe and accessible condition;
WHEREAS, the storage of unattended personal property on public property creates a safety and security risk to the public because, among other things, it can create a tripping hazard, impact a person's line-of-sight, and divert limited public resources to evaluate suspicious packages;
WHEREAS, unauthorized camping in public spaces, including the use of vehicles for human habitation, can create health and safety risks related to the accumulation of trash, food waste, human waste, and contaminated medical waste;
WHEREAS, the use of public property for camping and vehicles for human habitation has led to an increase in calls for police, fire, and emergency medical services, thereby straining municipal resources and diverting them from other critical areas of need; WHEREAS, the presence of unauthorized encampments has been associated with increased criminal activity, including theft, vandalism, damage to property, noise violations, littering, prowling, trespassing, and drug-related offenses, thereby undermining public safety; WHEREAS, maintaining clean and safe public spaces is essential for the economic vitality of Rancho Cucamonga, as it is a regional destination and encourages tourism, business development, and community events;
ATTACHMENT 1

Ordinance No. 1037 - Page 2 of 7
WHEREAS, the City Council desires to continue to protect the public health, safety and welfare including, but not limited to, the City's parks, streets, and other public places by regulating the use of public property.

NOW THEREFORE, the City Council of the City of Rancho Cucamonga does ordain as follows:

SECTION 1: Chapter 9.38 is hereby added to Title 9 of the Rancho Cucamonga Municipal Code to read as follows:
“Chapter 9.38 – PROHIBITION AGAINST CAMPING ON PUBLIC PROPERTY OR

INTERFERENCE WITH THE USE OF PUBLIC PROPERTY INCLUDING PUBLIC ACCESS

9.38.010 – Definitions.

For the purposes of this chapter, the following words and phrases shall have the meaning set forth in this section:
“Camp” or “Camping” means use of space on public places for living accommodation purposes such as sleeping activities, or making preparations to sleep (including the laying down of bedding, cots, beds, sleeping bags, mattresses, or couches for the purpose of sleeping), or storing personal belongings, or using any tents, tarps, hammocks, camp stoves, cooking equipment, buckets, dressers, furniture, shelter or other structure or vehicle for sleeping. The above-listed activities constitute camping when it reasonably appears, in light of all the circumstances, that the participants, in conducting these activities, are using the area as a living accommodation regardless of the nature of any other activities in which they may also be engaging. A person shall be considered to be using a vehicle for human habitation if: the person admits they are using the vehicle to camp; or, based on the totality of the circumstances, it is established that a person is using the vehicle to live, dwell or reside, which is exemplified by the person continuously remaining inside the vehicle at the same location for two hours or more; the person sleeping in the vehicle; the inability of a person outside the vehicle to view through two or more windows because the view is limited or blocked; the inability to use seating in the vehicle because a large volume of personal belongings, trash, rubbish, or garbage is stored in the vehicle; the person preparing or cooking meals inside or on the vehicle; the person bathing or grooming inside the vehicle.
"Camp facility" or "camp facilities" means any or a combination of the following a tent, hut, other temporary physical structure or shelter, cot, bed, or hammock. "Child care facility" means a facility installed, operated, and maintained for the nonresidential care of children as defined under applicable state licensing requirements for the facility. Such facilities include, but are not limited to, infant centers, preschools, extended day care facilities, school-age child care centers, or family day care homes.

Ordinance No. 1037 - Page 3 of 7
“College” means an institution of higher education, including a community or junior college, college or university including, but not limited to, Chaffey Community College. "Personal Property" means any tangible property, and includes, but is not limited to, goods, materials, merchandise, tents, huts, temporary shelters, tarps, bedding, sleeping bags, hammocks, sheds, structures, mattresses, couches, chairs, other furniture, appliances, and personal items such as household goods, luggage, backpacks, and clothing. Personal property does not include property that is secured inside of a motor vehicle; items expressly authorized by a public entity to be on public property owned or controlled by the public entity; or items authorized to be on public property pursuant to this Code, a license, or permit issued by the City.
"Prohibited public place" means any public property that is not designated for camping by resolution of the City Council or other governmental entity having jurisdiction over the property. “Public plaza” means an open public area that is owned or controlled by the State, the County, the City, or other public entity that has been physically improved and where people can gather. "Public property" means all property owned or controlled by the State, the County, the City, or other public entity including, but not limited to, any publicly owned or controlled building, structure, restroom, bridges, parking garage, parking lot, passageway, public rights-of-way, public plaza, driveway, landscaped area, parkway, median, greenbelt, open space, public park, or park facility.
"Public rights-of-way" or "public right-of-way" means the area or areas on, below, or above a public roadway, public highway, public street, public sidewalk, public path, public trail, public plaza, public bike lane or path, public boardwalk, public alleyway, or a utility easement in which the City has interest.
"School" means an institution of learning, whether public or private, which offers in-person instruction in grades K through twelve (12) in those courses of study required by the California Education Code and is licensed by the State Board of Education. This definition includes all kindergarten, elementary, junior high, senior high or any special institution of learning under the jurisdiction of the State Department of Education.
"Store", "Stored", "Storing" or "Storage " means to put personal property aside, to accumulate for use when needed or to put for safekeeping . Moving personal property to another location on public property or returning personal property within 1,000 feet from a location where a person previously received a citation for violation of Section 9.38.020 within a thirty (30) day period shall be considered storing personal property and shall not be considered to be removing the personal property from public property. "Tent" means any tarp, cover, hut, structure , enclosure or shelter, made of any material that is not open on all sides and which hinders an unobstructed view behind or into the area surrounded by the tarp, cover, hut, structure, enclosure, or shelter . A tent does not include any

Ordinance No. 1037 - Page 4 of 7
shade covering used in accordance with Section 11.08.020. "Unattended" means no person is present with the personal property who asserts or claims ownership over the personal property. Personal property left outside of a building or shelter at a public park shall not be considered "unattended" unless there is no person present who asserts or claims ownership over the personal property for one (1) hour or more. "Vehicle" means a "motor vehicle" as defined by Cal. Veh. Code Section 415, a "recreational vehicle" as defined by Cal. Health & Safety. Code Section 18010(a) , a "camper trailer" as defined in Cal. Veh. Code Section 242, a "house car" as defined in Cal. Veh. Code Section 362 or a "trailer coach" as defined in Cal. Veh. Code Section 635.

9.38.020 Sitting , Lying, or Sleeping or Storing , Using, or Maintaining or Placing Personal Property in the Public Rights-of-Way A. No person shall fix in place, store, maintain or leave personal property that is unattended on public property.

B. No person shall set up, make use of, fix in place, store, locate, maintain, or leave behind a tent on public property.

C. No person shall sleep, lay down, or lodge in a public restroom.

D. No person shall sleep or lay down on a public bench, bus stop/shelter or adjacent landscape planter.

E. No person shall remain upon a public plaza between the hours of 10:00 p.m. and 6:00 a.m. the following morning, except, it shall not be a violation of this subsection for a person to traverse a public plaza without stopping.

F. No person shall sit, lie, or sleep or store, use, maintain, or place personal property on a public median, public parkway, or landscaped area, except for individual’s engaged in lawful commercial activity.

G. No person shall obstruct public or private access by sitting, lying, or sleeping on public property or by storing, using, maintaining, or placing personal property on public property:

1. In a manner that obstructs or impedes passage, as provided by the Americans with Disabilities Act;

2. On or within twenty (20) feet of any operational or utilizable driveway, ramp, or loading dock;

3. On or within twenty (20) feet of any fire hydrant, fire plug or other connection

Ordinance No. 1037 - Page 5 of 7
used by the Fire Department;

4. Within twenty (20) feet of the entrance to a public restroom, public park, public trail or public path;

5. Within fifty (50) feet of an operational and utilizable entrance or exit to any building, establishment, retail store, restaurant, office building or other place into which the public is invited;

6. Within ten (10) feet of an automatic teller machine or any door that provides access to the automatic teller machine;

7. Within ten (10) feet of an electric vehicle charging station, parking pay station or parking meter;

8. Within ten (10) feet of a sidewalk ramp, or the corner where any street, roadway, highway, or alley intersect.

9. In a manner that unreasonably interferes with the use of the public right- of- way by motor vehicles, pedestrians or bicycles; or

10. Within five hundred (500) feet of a college, school, o r child care facility.

It shall not be a violation of Subsection (G) for a person to sit for purposes of viewing a legally conducted parade.

H. No person shall sit or stand on or at the entrance of any church, place of worship, hall, theatre, post office, community center, or other place of public assemblage in any manner that violates Municipal Code § 9.26.020 (Loitering in front of building prohibited).

9.38.030 Molesting Pedestrians.

No person, whether engaged in solicitation or not, shall willfully, intentionally, or maliciously molest, annoy, obstruct, or hinder any other person passing along any public rights-of-way.

9.38.040 Camping in Prohibited Public Places.

A. No person shall camp in a prohibited public place.

B. No person shall start, build, or use a fire in a prohibited public place for any purpose including, but not limited to, warming or cooking, unless authorized or permitted to do so by formal action of the City Council, the written consent of the City Manager, or the provisions of this Code.

9.38.050 Prohibited Conduct.

Ordinance No. 1037 - Page 6 of 7
It is unlawful for any person to conduct, perform or participate in any of the following activities at any park or park facility:

A. Use any public fountain, public drinking faucet, public restroom sink or public sprinkler to wash dishes, clothing or garments, to bathe, or conduct personal hygiene (such as washing hair or body with or without soap, shampoo or similar personal hygiene products; shaving with or without shaving cream or similar personal hygiene products; oral care including using mouthwash or brushing teeth with or without toothpaste or similar personal hygiene products; cleaning any injury, wound, lesion, gash or abrasion in any manner with or without medical products, cleaning products or similar personal hygiene products; using any medical or other personal hygiene product to rid the body of lice or any disease, infection or growth). This prohibition does not apply to basic hygiene activities such as handwashing, attending to child hygiene needs such as diaper changes, and attending to emergency situations involving minor injuries.

B. Cut, break, injure, or disturb any City tree, shrub, plant, rock, building , cage, pen, monument, fence, bench or other structure, apparatus , or property .” SECTION 2: Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, the remaining portions of this Ordinance shall nonetheless remain in full force and effect. The City Council of the City of Rancho Cucamonga hereby declares that it would have adopted each section, subsection, sentence, clause, phrase, or portion of this Ordinance, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions of this Ordinance be declared invalid or unenforceable.

SECTION 3: CEQA. The City Council finds that the adoption of this Ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Section 15060(c)(2) because there is no potential that the regulations of camping in prohibited places will result in a direct or reasonably foreseeable indirect physical change in the environment. In addition, this Ordinance is not subject to CEQA under of the CEQA Guidelines Section 15060(c)(3) because the Ordinance is an activity that is not a project as defined in CEQA Guidelines Section 15378.

SECTION 5: Publication. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published in the manner prescribed by law.

Ordinance No. 1037 - Page 7 of 7
PASSED, APPROVED, AND ADOPTED this 2nd day of April, 2025.

_____________________________
L. Dennis Michael, Mayor
ATTEST:
___________________________________
Kim Sevy, City Clerk

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF RANCHO CUCAMONGA )
I, Kim Sevy, City Clerk of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Ordinance was introduced at a Regular Meeting of the City Council of the City of Rancho Cucamonga held on the 19 th day of March 2025, and was passed at a Regular Meeting of the City Council of the City of Rancho Cucamonga held on the 2nd day of April, 2025.

AYES:

NOES:

ABSENT:

ABSTAINED:

Executed this 3rd day of April 2025, at Rancho Cucamonga, California. ____________________________________
Kim Sevy, City Clerk

DATE:April 2, 2025
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY: Matt Burris, Deputy City Manager
Zack Neighbors, Director of Building and Safety Services Jason Welday, Director of Engineering Services

SUBJECT: Public Hearing for Consideration of Resolution No. 2025-010, A Resolution of the City Council of Rancho Cucamonga, California, Approving Development Impact Fee Nexus Studies, Adopting Capital Improvement Programs as Part of the Nexus Studies, Updating and Establishing the Fee Amounts for the City’s Development Impact Fees, and Making a Determination of Exemption Under CEQA and
Consideration of First Reading of Ordinance No. 1038, to be Read by Title Only and Waive Further Reading, An Ordinance of the City of Rancho Cucamonga, Adding Chapter 3.80 to the Rancho Cucamonga Municipal Code, Establishing a Development Impact Fee for Fire Impacts of Residential and Business Development, Amending Chapter 3.68 to Remove References to Quimby Act in Lieu Fees, and Making a Determination of Exemption from the California Environmental Quality Act. (RESOLUTION NO. 2025-010 ) (ORDINANCE NO. 1038 ) (CITY) REVISION:

As part of the City’s outreach on this item, the staff met with representatives of the Building Industry Association (BIA) and their members who are actively working in the City. BIA has asked for additional time to clarify information, questions and responses related to the proposed adjustments to the Transportation Development Impact Fee schedule, the Non-Transportation Development Impact Fees, and Nexus Studies. In order to fully address these questions and allow for timely professional discourse, staff is recommending that the public hearing for the Non- Transportation Development Impact Fees and Nexus Study be continued to April 16, 2025, at 7:00 p.m. and that the Transportation Development Impact Fees and Nexus Study be continued to May 7, 2025, at 7:00 p.m. The discussion points for Non-Transportation Development Impact Fees are modest in nature and should be vetted out within the next 7-10 days. The discussion points for Transportation Development Impact Fees are greater in number and more complex in nature, however, staff is committed to a series of regular hour-long meetings over the course of the month of April to also work through these matters.

RECOMMENDATION:

Staff Recommends that that the public hearing for the Non- Transportation Development Impact Fees and Nexus Study be continued to April 16, 2025, at 7:00 p.m. and that the Transportation Development Impact Fees and Nexus Study be continued to May 7, 2025, at 7:00 p.m.

ATTACHMENTS:

None.

DATE:April 2, 2025
TO:Mayor and Members of the City Council
President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY: Peter Castro, Deputy City Manager, Administrative Services Jevin Kaye, Finance Director
Rick Flinchum, Finance Manager
SUBJECT: Consideration to Receive and File the Midyear Financial Update for the Fiscal Year 2024/25 and Approve Various Appropriations and Related Actions. (CITY/FIRE)
RECOMMENDATION:

Staff recommends the City Council and Fire Board of the Rancho Cucamonga Fire Protection District receive and file the Midyear Financial Update for the Fiscal Year 2024/25 and approve various appropriations and related actions.

BACKGROUND:

Quarterly, the City Manager's Office and Finance Department provide the City Council and Fire Board with a brief update on the financial performance of the City's operating funds, consisting of the General Fund, Library Fund, and Fire District. The report also includes economic factors for the City Council.

City staff also provides the City Council and Fire Board with a midyear budget analysis, providing an overview and preliminary revenues and expenditures projections for the remainder of the fiscal year. At this time, certain budgetary appropriations are also requested prior to the conclusion of the midyear amended budget cycle in May to avoid any operational issues.

ANALYSIS:

The Midyear Financial Updates provide the unaudited financial results at midyear and the most recent economic data and indicators available. With just over half of the fiscal year completed, the revenues and expenditures for the General Fund, Library Fund, and Fire District are generally within expected ranges.

Similar to the first quarter report, operational and professional service expenditures will generally surpass the benchmark due to encumbrances made at the start of the fiscal year for departmental operations. These encumbrances are a means for budget management and prevent overspending. The usage of these encumbrances is analyzed within the attached report.

Meanwhile, with personnel expenditures, the majority of departments are within an expected range overall, except the Animal Care and Services Department along with the Finance Department. There are vacancies throughout most departments, but these two departments have been more heavily impacted by vacancies this year. When viable, Departments have utilized

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budget savings from personnel services to increase contract services to ensure consistent service delivery.

The major revenue sources for the General Fund, Library Fund, and Fire District are, for the most part, within expectations through midyear. Sales tax revenues are trending as expected, as are other revenues, such as licenses and permits, fines and forfeitures, and charges for services.

The report includes an analysis of the most recent economic data and indicators available. •As of December 2024, the City's unemployment rate was 3.7%, which is equal to the previous year's unemployment rate. This is a very low rate when compared to other cities throughout our local region.
•The year-over-year consumer price index for January 2025 in the Riverside-San Bernardino-Ontario area was 2.94%, indicating a return to normal ranges. •As of the end of calendar year 2024, the median home price for detached single-family homes was up 5% from the previous year to $861,020, although volume of available properties remains very low.
•Sales tax remained flat (-.02%) in the 3 rd quarter of 2024 compared to 2023 receipts.

The Midyear Budget Analysis provides budget and year-to-date actuals of revenues and expenditures for the City's operating funds, the Library Fund, and the Fire District’s operating funds.

Below are summary-level notes and considerations to aid the report's review.

General Fund
As of midyear, General Fund revenues are expected to remain at levels consistent with the budgeted projections for this Fiscal Year. Finance is recommending maintaining budgeted figures for property and sales tax revenues based on current receipts and projections. As further funds are received by the City, and as further forecasts are received after the end of the third quarter, Finance will closely monitor performance to ensure any necessary adjustments are reflected in the final budget projections after the end of the third quarter.

As part of their midyear revision, the Community Services Department has projected an increase in their revenue projections of $275,140, largely increased based on actuals being slightly higher than anticipated in Contract Classes and ticket sales at the Victoria Gardens Cultural Center.

Expenditures are projected to increase by $1,351,446, or 1.1%, from the amended budget. This is a net increase reflecting decreases in personnel services due to full-time and part-time vacancies and offset with increases in professional services across several departments, primarily Animal Care and Services, Finance, Engineering, and Public Works. Furthermore, $738,115 of the costs being requested were associated with the January 2025 Wind Event, which caused significant damage and required additional costs for debris removal, fuel, and equipment rental.

Library Fund
Library expenditures are projected to increase by $6,880 and revenues are expected to decrease by $52,930 from the adopted budget. The library has made some appropriation requests related to utility charges for the Second Story and Beyond facility, but those have been slightly offset by the deferral of some equipment replacement efforts that have been rescheduled for next fiscal year.

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Second Story ticket sales and revenues are significantly below forecasts. Instead of a small surplus in this fiscal year, the Second Story facility is projecting a small deficit. Library Fund revenues are projected to decrease primarily due to the reduction in service hours for Passport Services, as hours have not expanded as was previously anticipated in the development of this year’s budget.

Fire District
The Fire District is not anticipating any major changes to revenue forecasts as a part of this midyear process. Expenditures, meanwhile, have been projected to decrease by $44,355 in the Fire General Fund (Fund 281), $597,990 in Fire CFD 85-1 (Fund 282), $13,840 in Fire CFD 88-1 (Fund 283), and $4,325,365 in the Fire Capital Fund (Fund 288). These reductions are primarily due to moving some projects and equipment purchases to FY 2025-26 due to capacity as well as a necessary reclass of project expenses related to the completion of Fire Station 178.

FISCAL IMPACT:

Additional appropriations are being requested prior to the amended budget presentation in May.

City staff requests that the City Council and Fire Board authorize the additional appropriations outlined in Attachments 2, 3, 4, and 5 describing the amounts and purposes of the requested appropriations.

For clarity, the City (including the General Fund) is presented in Attachment 2 separate from the Community Services Department, which is summarized on Attachment 3. This is due to the usage of additional account strings in the Community Services Department, so their adjustments are listed separately.

COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:

Providing regular financial updates supports the City Council's goals of intentionally embracing and anticipating the future by receiving timely financial information upon which they can base their current and future decisions.

ATTACHMENTS:

Attachment 1 – Midyear Financial Update Through January 31, 2025 Attachment 2 – FY 2024/25 Appropriation/Adjustment Requests (City) Attachment 3 – FY 2024/25 Appropriation/Adjustment Requests (City – Community Services) Attachment 4 – FY 2024/25 Appropriation/Adjustment Requests (Library) Attachment 5 – FY 2024/25 Appropriation/Adjustment Requests (Fire)

Mid-Year Financial Update
Fiscal Year 2024-25
April 2, 2025
ATTACHMENT 1

2 INTRODUCTION AND EXECUTIVE SUMMARY
The City Manager’s Office and Finance Department is
providing this financial update to the City Council as a high-level overview of the City's financial status halfway through the fiscal year, and an overview of economic
indicators that can influence the City's revenues and
expenditures.

This report has several components:

1.Financial Update: This report includes budget to
actual variance analysis for revenues and
expenditures for July 1, 2024, through January 31,
2025. The financial update details the City General
Fund, Fire District Operating Funds, and Library Fund.

2.Economic Brief: This report compiles economic
information and indicators, such as employment data,
sales tax data, and other local and regional economic
news.

At mid-year, the City’s financial status remains in line with expectations. Significant accounts and notable
variances are presented in this financial report,
reflecting just over half of the fiscal year.

The tables in this report compare budgeted to actual
amounts for the General Fund, Fire District, and Library.

The year-to-date (YTD) financials are unaudited actuals and presented with encumbrances requested. The revised
budget includes budget adjustments, encumbrance
carryovers from the prior fiscal year, and any
supplemental appropriations approved by the City
Council through midyear. The percent of the budget
(% Bud) is the percentage received/spent of the budget.

The prior year-to-date (PYTD) financials show comparable information from the same period of the prior fiscal year.

The report uses colored icons to illustrate how well the category is doing financially. Green means everything is reasonable, yellow means that something is being
monitored closely, and red indicates a budget line
requiring review due to potential overages.

Note about the City’s New Financial ERP System
The City and Fire District went live with its new Workday ERP system on July 1, 2024. As a result of the new features and abilities provided by Workday, some financial
practices have been modified to maintain alignment with current financial standards and best practices. Therefore, some revenue and expenditure data may appear to
deviate from trends noted in prior years. Where these
trends deviate, they will be highlighted and explained
throughout the report.

GENERAL FUND OVERVIEW
The City’s General Fund is the primary fund used to pay for a variety of programs and services that are provided to people and businesses 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, accounting
for items like seasonal changes and ongoing expenses.

Currently, the amount of money spent from the General
Fund is 66% 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. 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.

3 General Fund Revenues
Primary revenue sources for the General Fund are
property tax, sales tax, franchise fees, and transient
occupancy tax. Collectively, these comprise about 81% of the annual budget.

Property Tax. The first major apportionment of property tax occurred in December 2024. The City partners with a property tax consultant to continually monitor and
project property tax revenues for the City. The budget
represents a forecasted 4.0% growth in assessed
valuation from the prior fiscal year. The increase is
favorable for revenue forecasts in the fiscal year, but these projections are being monitored for potential
revision later in this fiscal year due to economic
uncertainty.

Property taxes include property tax in lieu of vehicle
license fees budgeted for $26.4 million and residual
property tax for the form RDA budgeted for $3.5 million.

At mid-year, the City has received approximately 50% of this allocated funding, with the remaining 50%
anticipated in the second half of the year.

Sales Tax. Sales tax is the largest single source of revenue for the City. As such, City staff and consultants monitor how much sales tax is coming in closely. The sales tax
received to date reflects an increase over prior year to date. This is largely due to timing of receipts which have been more consistent this year, and results are as
expected. As the city heads into the second half of the year, performance is as expected, but close monitoring
will occur to evaluate whether adjustments are necessary.

We are still waiting for final holiday season numbers;
however, sales tax receipts to-date indicate the City will end the year close to expectation.

Franchise Fees/Transient Occupancy Taxes. Transient
Occupancy Taxes (TOT) and Franchise Fees comprise 17%
of the taxes received by the General Fund. Franchisees
remit payment to the City on recurring schedules, but not in the first quarter of the year. Gas and electric franchise fees are received in the year's final quarter. TOT is
remitted by hotels to the City monthly. The budget
estimate projects growth of approximately 9% from the
prior year's budget, based on the opening of the Tapestry Hotel during the fiscal year and forecasted room
occupancy and revenue per available room for existing
hotels. The new Tapestry hotel opened later than
expected, and performance is being monitored closely in case adjustments prove necessary later this year.

Licenses and Permits. Halfway through the year, revenues received are at 63% of budget. Results have been steady through the year, and with the resolution of prior ERP
delays mentioned in the previous update, recording of
these receipts is current through January 2024.

Fines and Forfeitures. This category includes vehicle and parking fines and citations, which comprise 62% of the
fines and forfeitures budget, and other general fines and forfeitures. This category includes vehicle code fines
collected by San Bernardino County and remitted to the
City. At midyear, the receipts for fines and forfeitures are meeting expectations.

Charges for Services. Charges for services refer to the amounts collected for specific services provided by the departments. It includes various community development
fees, such as plan check, planning, and engineering fees, which comprise 70% of the budget, and recreation fees
make up 20%. As of mid-year, recreation fees, and ticket sales are exceeding their budget. Community
development is in line with expectations.

Intergovernmental. The bulk of this category includes
motor vehicle in-lieu fees and homeowners property tax
relief revenues from the County, which are received later in the fiscal year.

Transfers In. Transfers represent the transfers of
resources from other funds to the General Fund. Due to
changes in financial processes with the ERP, booking of

4 transfers will occur as part of this year’s closing process, which begins in March 2025.

Other Revenues. Includes interest earned on invested
funds, rental and lease income, reimbursements, and
miscellaneous revenues. Reimbursements represent 32%
of this category. Revenues fluctuate heavily in this
category due to timing of receipts but are within
expectations for those reimbursements expected by
midyear.

General Fund Departmental Expenditures
Expenditures for the General Fund can vary because of
the timing of vendor payments, 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 50%, departments could be
within the expected ranges due to their need to issue
purchase orders and blanket encumbrances at the start of each fiscal year for operations.

Changes in Accounting Process:

As noted in the 1 st Quarter update, some changes, in line with our new financial ERP system, have allowed the
Finance department to adjust some accounting practices
according to best practices, which may result in some
variances between current year actuals and prior year-to- date actuals.

Personnel:

The City previously allocated the full year of fringe
benefits costs for employees to the various departments in July of every fiscal year; however, with the new system, we are now able to charge those costs in real time as they are incurred. As such, personnel costs appear lower than previous year-to-date figures. The new method reflects
timelier posting of actual spending, and thus results in a more accurate report of real expenses throughout the
year. Personnel expenses are tracking as expected, with some recognized salary savings across the City currently being utilized for contract services accounts due to
staffing shortages.

Cost Allocations
Departments that provide services that benefit the City have their budgets reduced to reflect the allocation of the cost of those services to the benefiting departments. This is the Cost Allocation category within the department’s budget.

Due to the ERP conversion, allocations for the year will be booked as part of our closing process for the year,
beginning in March. As a result, Cost Allocation costs (and their respective offsets to the departments) do not yet figure into the totals for midyear. All cost allocations are expected to meet the budgeted totals, and are not
anticipated to change at this time.

Operations and maintenance are at the benchmark for
Administrative Services but are not significant costs
overall. Operations and maintenance are lower in the
current year due to the timing of conferences and travel, which can vary depending on scheduled conferences.

These expenditures usually do not even out for at least three full quarters of the fiscal year.

Professional services for the Animal Center are over total budget at 165% for the year. Those budgets have been
more heavily relied upon due to significant staffing
shortages at the Animal Center driven by the departure of staff to the new Ontario/Chino joint powers authority.

This mid-year report contains an appropriation request to provide this funding to the Animal Center, which is
anticipated to resolve this overage. This funding will
utilize cost savings from personnel, so this will not result in increased appropriations overall.

5 Professional services are higher than expected for
Building and Safety at 98% due to fully encumbered
contracts with consultants to assist with building
examinations and plan check services to aid in operations.

This is in line with expectations for the department.

Overall operations and professional services for the City Clerk are within expected ranges for midyear as variances from the prior year reflect services, such as records
management consulting, which are not budgeted for this
fiscal year.

Due to expenses associated with the 2024 election, the
professional services budget is higher than non-election years.

Operations and maintenance expenses for the City
Council can vary as they primarily consist of travel and meetings. Higher spending is expected due to high activity levels and will adjust as further travel is scheduled.

Professional services for the City Manager’s Office are at 60% of the budget and are on par with spending at this
time last year, with contracts typically encumbered earlier on in the year.

Professional services expenses for Community
Improvement, which primarily include legal fees for
abatements, civil litigation, and other necessary services, are at 80% of the budget.

The budget is higher than in previous fiscal years due to last year’s movement of the Business License division
from Finance to Community Improvement. Business
License expenses are also within expected ranges for
midyear.

Operations and maintenance and professional services for Community Services are near the benchmark, at 51% and
58% of their respective budgets. Operations and
maintenance and professional services can vary
depending on the timing of events. In the current fiscal year, significant expenditures represent special event
programming and consulting for the Victoria Gardens
Cultural Center, as well as planned spending related to improvement projects for the Lewis Family Playhouse and Second Story and Beyond®.

Capital Outlay includes spending and encumbrances for
portable radios, a sound system, and camera equipment
for the Victoria Gardens Cultural Center.

Operations and maintenance for Community
Development is near the benchmark at 48% of the budget.

The current fiscal year spending is lower than the prior year due to the timing of bills to vendors but is within the expected ranges overall.

6 Professional services are at 103% of budget due to a
coding error in some purchase orders as well as some
additional funding needs. The department has already
begun addressing those errors, and an appropriation
request is included in this midyear report.

Professional services for Engineering are at 96% of
budget, which includes spending on engineering on-call
plan check services and other land development services to aid in reviewing large projects. The variance from the prior year is due to the timing of encumbrances which had previously posted after midyear in last year’s report.

Professional services for Finance are at 95% of the budget, which included necessary costs for consultant services
associated with staff turnover at the beginning of the
year. Finance is anticipating additional professional
services needs because of ongoing staff vacancies. An
appropriation request for those services is included in this midyear report.

Operations and maintenance and Professional Services
for Human Resources are at the benchmark at 34% and
75% of the budget, respectively. Risk management has
rolled over a $50,000 encumbrance for Class A driver's
license training, which is necessary for specific operations within public works.

Operations and maintenance for DoIT are around the
benchmark at 21% of the budget. Professional services
are at 79% of the budget due to software subscriptions
and support services. These are encumbered at the
beginning of the year and include some support costs for new systems implemented in support of the Workday ERP
implementation.

Professional services for Planning are near the benchmark at 69% due to contracts encumbered for the full fiscal year for CEQA services, environmental review services, and
other planning services. Several of these costs are
reimbursable to the City and are only utilized if
development activity is ongoing.

Operations and maintenance costs are slightly higher for Police than the benchmark at 67% due to spending in
supplies and materials as well as some increased
equipment repair costs. Monitoring will be ongoing with the police department to ensure spending stays within
budget and to determine if any adjustments need to be
made with the mid-year adjustment. Operations and
maintenance also cover events, training, and other crime prevention activities. Professional services primarily are the contract with the San Bernardino County Sheriff for policing services in the City and this meets expectations for midyear.

7 Operations and maintenance for Public Works are at the benchmark at 60% of budget, mainly due to internal
service user fees for vehicle and equipment charges from the City’s Equipment and Vehicle Replacement Fund at
the beginning of the fiscal year. This fee accounts for the immediate and long-term capital replacement needs for
the City’s vehicles and equipment. It is charged at the start of the year.

Professional services are at 106% of the budget due to
encumbrances for maintenance contracts made at the
beginning of the fiscal year, including park, vehicle,
equipment, and street maintenance. This overage was
also a result of the January 2025 Wind Event, which
caused significant damage around the City which Public
Works promptly responded to. This midyear report
includes funding requests for these accounts.

Capital outlay expenditures are for the recurring citywide concrete repair project. In the current fiscal year,
$475,000 was budgeted, and another $25,000 was carried
over from the prior year. The project is ongoing and is being done in segments.

LIBRARY FUND OVERVIEW
The Library Fund has spent 52% of its total budget for the year, while the revenues are at 55% of the total budget.

Library Revenues
Property Tax. The Library Fund receives a portion of the property taxes collected by the City. The first major
apportionment of property tax occurs in December each
year. As mentioned in the City’s analysis, preliminary
assessed valuation reports suggest that growth may be
slightly more than expected when the adopted budget
was forecasted. Also included in the property tax revenue category is a total of $2.5 million in statutory and residual payments from the dissolution of the former
redevelopment agency, of which half have been received
to date.

8 Library Expenditures.

Operations and maintenance spending are above the
benchmark at 80% of the budget, but this is because of
encumbrances of printed and digital books, materials, and supplies for the two libraries made at the start of each fiscal year.

Professional services spending is at 86% of the budget, which is similar to the prior year, and due to
encumbrances for security services, cataloging services, and other materials at both libraries.

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 eight fire stations that are currently operational.

The Fire District’s expenditures are at 47% of the budget, while revenues are at 50% of the budget.

Fire District Revenues
Property Tax. The first major apportionment of property tax occurred in December 2024. As mentioned in the
City’s analysis, preliminary assessed valuation reports suggest that growth might be a bit more than expected
when the adopted budget was forecasted. These
forecasts are being monitored for potential adjustment
later this year.

The property tax revenue budget includes $21.5 million
for statutory payments from the dissolution of the former redevelopment agency, which are received later in the
year.

CFDs 85-1 and 88-1 levy special taxes for funding
administration, personnel services, maintenance, and
operations within the CFDs' boundaries. Combined, the
CFDs will collect $7.9 million and receive a $5.6 million contribution of resources from the Fire District’s General Fund to subsidize operations. The budget contribution is shown as a Transfer In (revenue) to the CFDs and
Transfers Out (expenditure) from the Fire District in the summary, revenue, and expenditure tables for the Fire
District. As mentioned for the City, transfers will be
booked as part of the year end close beginning in March.

Other Revenues. Other revenue includes interest earned
on invested funds, rental and lease income,
reimbursements, and miscellaneous revenues.

Reimbursements from the Other Post-Employment
Benefits (OPEB) Trust for the retiree healthcare costs
comprise 48% and other non-abated reimbursements,
which primarily consist of CalOES, comprise 20% of the
budget. Finance requests reimbursements from the OPEB
Trust for retiree healthcare costs near the end of each fiscal year, and reimbursement from CalOES for fire
support depends on the timing of reimbursement receipts processing by the state agency. At midyear, these results are within expectations for this time of the year.

9 Fire District Expenditures
Personnel services are higher than prior year, but near the benchmark of 62% of budget. The increase is due to the
increased staffing that had been approved by the Fire
District Board in Fiscal Year 2023/24.

Operations and maintenance are at 58% of the budget
which is in line with expectations for midyear.

Professional services are at 60% of the budget due to
spending and encumbrances for various contract services necessary for fire administration, communications, and
facilities maintenance, and is comparable with the prior year.

Debt service accounts for any interfund loans between
the Fire District and the General Fund. There is no activity in this fiscal year as the prior loan was fully repaid in October 2023.

Cost allocation represents the estimated service costs
that City departments expend to support the Fire District.

As mentioned in the City’s analysis, these allocations will be booked in the closing process for the fiscal year,
beginning in March 2025.

10 ECONOMIC OVERVIEW
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.

Statewide, Regional and Local Labor Market
According to preliminary December 2024 figures, San Bernardino County had an unemployment rate of 4.8%, which is lower than the unemployment rate for the State of California of 5.5%.

The graph below shows the unemployment rates (not seasonally adjusted) for the largest Counties and Metropolitan Areas statewide for December 2024:

Source: Employment Development Department, State of California At a local level, the City’s unemployment rate for December 2024 was 3.7%. The City’s unemployment rate is lower than the County and State unemployment, although changes generally mirror the County and State. The City’s unemployment rate is also favorable when compared to other comparable cities in San Bernardino County.

11 Source: Employment Development Department, State of California Source: Employment Development Department, State of California

12 Consumer Price Index
Source: Bureau of Labor Statistics
The Bureau of Labor Statistics for January 2025 indicates that the Consumer Price Index (CPI) in the U.S. for all items experienced a non-seasonally adjusted increase of .5% for January. From January 2024 to January 2025, the CPI-U for all items increased by 3.0%.

For the Riverside area, the CPI has shown up and down movements over recent months. As of January 2025, the CPI was up by 2.94% from the year before. This annual increase is driven by higher prices in various categories, such as shelter, education, communication, and apparel. Additionally, food prices increased by 2.5%, and energy prices increased by 1%.

13 Home Sales and Prices
Source: HdL Companies
At the end of the calendar year 2024, median home prices for detached single-family homes decreased slightly by .6% for the quarter. For the year, median home prices increased 2%. At the same time, the total sales volume is still low compared to the record volume in 2021. For 2024, the total sales fell to 848 from 893 in the prior year, a decline of 5%. The current sales volume is normalized with the fourth quarter of 2022, indicating a new baseline compared to the large volume of sales in 2020 and 2021 when interest rates were at historical lows.

Sales Tax
Sales tax revenue is a critical source of revenue for the City from retail and business activity. City staff closely monitors sales tax for major financial impacts.

Historically, the largest sectors by the amount of sales tax to the City are general consumer goods, business and industry, restaurants and hotels, and the State and County pools. Per the Q3 2024 report on statewide trends and City sales tax data from HdL Companies, these sectors displayed various trends that might impact the City’s overall taxable sales:
•Rancho Cucamonga’s receipts from July through September were 10.9% below the third sales period in 2023 (a one-time occurrence). Negative audit corrections and an unusually large number of statewide missing taxpayer payments combined to suppress cash comparisons. Excluding reporting aberrations, actual sales were down 0.4%.

14 •Brisk sales activity for electrical equipment, medical/biotech products and other specialized merchandise created a 12% surge from the business-industry group. •Building-construction had a 1% gain primarily from material supplies. •Patrons continued to pay more for higher priced menu items, both casual dining and quick service restaurants improved revenues over the prior year quarter. •Service stations had smaller filings, prompted by less consumption and price contractions from one year ago levels; the City’s 8% decline was less than county, state trends. •General consumer goods decreased 4%, showing that consumers steered clear of discretionary purchases; specialty; sporting goods stores posted lower returns. Further, retailers that sell fuel also pulled totals down within this category.
•Net of aberrations, taxable sales for all of San Bernardino County were flat over the comparable time period; the Southern California region was down 2.3%.

The chart below depicts a breakdown of business sectors that generate sales tax for the City as of the most recent sales tax data available.