REQUEST FOR CITY COUNCIL ACTION
DATE: 05/01/2024
TO: Honorable Mayor and City Council Members
FROM: Finance Department
SUBJECT:
Title
FISCAL YEAR 2024 QUARTER 3 BUDGETARY ADJUSTMENTS
End
EXECUTIVE SUMMARY:
This staff report asks the Council to consider budgetary adjustments for Fiscal Year 2024 based on the Quarter 3 results and staff recommendations for funding level changes. On a quarterly basis, staff presents an update to the City Council on the current fiscal year revenue and expenditures. As part of the process, departments review the operating and capital improvement project funding levels and provide recommendations for budgetary adjustments. For Quarter 3, staff recommends appropriating $1,759,948.82 and increasing estimated revenues in the amount of $315,957.82, as noted in Exhibit 1.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Appropriate $1,759,948.82 and increase estimated revenues in the amount of $315,957.82, as noted in Exhibit 1 - Appropriations, Estimated Revenues, and Transfers.
b. Authorize the City Manager, or his designee, to execute the First Amendment to the Professional Services agreement with Hinder de Llamas and Associates and increase the total compensation by $100,000 for a revised total compensation of $350,000 for Business License Administration Services.
i. Authorize the City Manager, or his designee, to issue a Change Order to Hinder de Llamas and Associates’ Blanket Purchase Order (B240848) in the amount of $100,000 for a total purchase order amount of $350,000.
c. Authorize the City Manager, or his designee, to negotiate and execute non-substantive extensions, change order, and amendments up to $35,000 or 10% of the total contract cost as authorized by Corona Municipal Code Section 3.08.070(I).
Authorize a contract amendment and change order for Accenture LLP DBA Anser Advisory Management, LLC for Project Management Services for Capital Improvements Projects.
i. Approve the Second Amendment to the Professional Services Agreement with Accenture LLP DBA Anser Advisory Management, LLC, to increase the amount by $22,000 to $122,000 for Project Management Services for Capital Improvements Projects for Fiscal Year 2024.
ii. Authorize the City Manager, or his designee, to issue a Change Order to Blanket Purchase Order (B240959) for Accenture LLP DBA Anser Advisory Management, LLC, to increase the amount by $22,000 to $122,000 for Fiscal Year 2024.
d. Adopt Resolution No 2024-025, approving the City of Corona Position Library and Compensation Plan and repealing all prior Plans, including Resolution No. 2024-001, effective May 4, 2024. The salary range change for the Environmental Compliance Supervisor position is retroactive to January 14, 2024.
That the Corona Utility Authority review, ratify, and to the extent necessary, direct that the City Council take the above action.
Body
BACKGROUND & HISTORY:
On a quarterly basis, the Finance Department provides a budget update to the City Council. As part of the quarterly process, departments provide operating and Capital Improvement Project (CIP) adjustments that need to be addressed in the fiscal year (FY). The Finance Department prepares a consolidated request for the City Council’s consideration.
ANALYSIS:
Item a - Appropriate $1,759,948.82 and increase estimated revenues in the amount of $315,957.82 as noted in Exhibit 1 - Appropriations, Estimated Revenues, and Transfers.
The information below summarizes the recommended appropriations and revenue increase. The complete list is provided in Exhibit 1 - Appropriations, Estimated Revenues, and Transfers.
Appropriations
1. Temescal Wash Permits Shared Costs (Fish and Game Compliance Permits)
Approve a budget increase for the Fish and Game Compliance Permits. This will cover the City’s portion of the shared cost of the Temescal Wash permits. This keeps the City in compliance with storm water permit requirements and shares costs with Public Works, Utilities, and Community Services.
Staff recommends an appropriation in the amount of $24,563 to the Community Services’ operating budget within the General Fund 110.
2. Business License Program
The Finance Department recommends an appropriation and estimated revenue increase in the amount of $100,000 from the General Fund 110 for business license compliance and operations management services. Hinderliter de Llamas and Associates (HdL) restarted compliance monitoring, previously paused during the pandemic, and in doing so found several businesses out of compliance. As a result, discovery payment revenues and expenses have increased.
3. EMS Equipment, Training Personnel, and Training Non-Personnel
The Riverside County Emergency Medical Services (EMS) Agency (REMSA) assesses late response fees to the American Medical Response (AMR) company. Annually, these fees are distributed retroactively to cities within the EMS system. In accordance with the MOU for Joint Monitoring of Ambulance Services, all monies collected by the City under the terms of the MOU shall be used for EMS system enhancements. For FY 2024 (year-to-date), the balance of AMR fees is $215,957.82. City staff recommends an appropriation and estimated revenue increase in the amount of $215,957.82 to the Fire Department’s operating budget within the General Fund 110 for the following: EMS programs and initiatives to supporting the City’s Homeless Solution efforts, new EMS Skills Lab educational tools/resources $155,957.82; Homeless Solutions efforts Personnel $15,000; Enhanced Training Personnel $30,000; and Enhanced Training Non-Personnel $15,000.
4. Police Succession Planning
A new officer candidate requires one year of training before filling an open position. A succession fund allows the Chief to hire civilian personnel as police officer trainees, with the goal of the trainee filling a sworn vacancy at or near the anticipated attrition date of a current officer. To efficiently hire officers for projected vacancies, a staffing succession fund for the Police Department was previously approved by the Council. This request will authorize a recurring budget for the staffing succession fund of Police Officer Trainees.
Staff recommends an appropriation in the amount of $207,150 in General Government within the General Fund 110 for the remainder of Fiscal Year 2024. Ongoing annual costs in the amount of $621,450 will be recommended through the annual budget process.
5. Needs Assessment of the Police CAD/RMS System
The objective of this budget proposal is to seek funding for hiring a consultant to conduct a comprehensive review of our current Police Computer-Aided Dispatch (CAD) and Records Management System (RMS) system and potentially based on the findings, recommend the purchase of a new system. The CAD/RMS system is a critical component of our law enforcement operations, and it is essential to ensure its efficiency and effectiveness in supporting public safety initiatives.
Background:
The current CAD/RMS system has been in operation since 2018. During this time, the system has been unreliable and unstable and is not meeting the needs to provide the level of service we strive to achieve for the community. The existing CAD/RMS system is not keeping pace, leading to inefficiencies and limitations in the department’s ability to respond promptly to incidents.
Current System Limitations:
• The current CAD/RMS system is utilizing outdated technology, making it challenging to integrate with modern communication systems and emerging technologies.
• User Interface Challenges: User feedback suggests challenges with the user interface, potentially affecting the speed and accuracy of data entry during high-stress situations.
• Ongoing Support Issues: The past three years have seen recurring challenges in obtaining effective and timely support for the CAD/RMS system. These support issues have contributed to extended periods of system unavailability, exacerbating the impact of downtime on our law enforcement operations.
• Reliability Concerns: Over the last three years, the system has experienced frequent downtime due to crashes, impacting on our ability to provide swift and efficient public safety services. Incidents of system crashes have raised concerns about the overall dependability of the CAD/RMS system.
• Inability to Update Without Issues: The current CAD/RMS system faces challenges in updating without causing additional problems. Attempts to implement updates have resulted in unforeseen issues, hampering our ability to keep the system current with the latest security patches, features, and enhancements.
Proposed Consultant Engagement:
Given the historical reliability issues, ongoing support challenges, and the need for a comprehensive assessment, we propose hiring a qualified consultant with expertise in law enforcement technology and CAD/RMS systems. The consultant will conduct a thorough review, not only addressing the reliability concerns and support issues but also exploring the possibility of identifying a new CAD/RMS system and vendor that better aligns with our current and future needs.
Consultant Tasks:
a. Comprehensive System Assessment: Evaluate the current CAD/RMS system's performance, reliability, and ongoing support structure, identifying weaknesses and areas for improvement.
b. Root Cause Analysis: Conduct a detailed analysis of the root causes behind system crashes, downtime, and ongoing support challenges to formulate targeted solutions.
c. Vendor Assessment: Explore the marketplace for potential CAD/RMS system vendors, assessing their offerings, reputation, and compatibility with our law enforcement requirements.
d. New CAD/RMS System Recommendations: If warranted, provide recommendations for the adoption of a new CAD/RMS system, outlining the advantages, functionalities, and potential benefits for our law enforcement agency.
e. Cost-Benefit Analysis: Conduct a thorough cost-benefit analysis comparing the potential implementation of a new CAD/RMS system to the enhancements of the existing system, ensuring a strategic and financially sound decision-making process.
f. Implementation Roadmap: Develop a clear and actionable roadmap for the implementation of recommended improvements or the transition to a new CAD/RMS system, outlining key milestones and timelines.
By incorporating the possibility of identifying a new CAD/RMS system and vendor into the consultant's scope of work, we aim to ensure that our law enforcement agency not only addresses current challenges but also positions itself for a technologically advanced and dependable future in public safety services.
Staff recommends an appropriation in the amount of $86,202 from the General Fund 110 to the Police Department’s operating budget to hire a consultant to conduct a comprehensive review of our current Police Computer-Aided Dispatch (CAD) and Records Management System (RMS) system and potentially based on the findings, recommend the purchase of a new system.
6. Staff Cubicle Reconfiguration
Total Corporate Solutions overlooked including the payment bond in the original quote for the cubicle reconfiguration. Staff recommends an appropriation in the amount of $2,500 from the Measure X Fund 120 to the Public Works’ operating budget to cover the additional cost of the bond and city staff time to remove the existing cubicles.
7. Pavement Management Study
The City is currently in the process of developing a pavement management program that will provide the City with a multi-year pavement management plan with the appropriate maintenance and rehabilitation strategies and budgetary analysis to determine the required funding needed each year. An additional budget is requested for Nichols Consulting Engineers (NCE) to perform modeling for a multi-zone approach to the City's street network to determine the appropriate treatments needed for each street and the funding required to complete the preventive maintenance or rehabilitation. Several scenarios will also be incorporated into the modeling. NCE will also be providing shapefiles that can be used for the City's GIS integration. Staff recommends an additional appropriation in the amount of $10,500 from Measure A Fund 227 to the Pavement Management Study Operating and Maintenace Project No. 70690.
8. Various LMD/CFD Budget Adjustments
The FY 2024 LMD/CFD budgets were estimated based on knowledge during the budget process. Actual expenses are trending higher than originally estimated. The budget shortfall is mainly due to special district administrative cost allocation, which reimburses the City for staff time. Staff recommends appropriations, totaling $200,076, across multiple funds as identified in Exhibit 1 - Appropriations, Estimated Revenues and Transfers.
9. Workers Compensation Costs
This fiscal year the City has not only seen an increase in medical costs, but an unprecedented number of surgery requests for injured employees. All have gone through the proper utilization review channels and have been approved as medical necessity, thus making the City responsible for all costs incurred with treatment. The City has also seen an increase in costs for mental health treatment. In 2020, PTSD became a presumption for safety employees, and have seen an increase in claims over the last couple years. As treatment in this area is newer in workers’ compensation, there is no fee schedule in place yet and very few facilities that take workers’ compensation, thus treatment is a significant cost. As of January 2024, the City has paid $441,097 for PTSD treatment and that number continues to rise. While the initial PTSD presumption was set to expire on January 1, 2025, it has been extended through January 1, 2029 and the increase to the Workers Compensation budget will allow the City to continue to provide this treatment.
Staff recommends an additional appropriation in the amount of $850,000 from the Workers Compensation Fund 683 to the Legal and Risk Management Department’s operating budget.
10. Deputy Fire Chief Vehicle Replacement
The Fleet Division of the Public Works Department, in collaboration with the Fire Department, recommends the replacement of unit 61057. At eight years (model year 2017), unit 61057 is due for replacement in accordance with Administrative Policy No. 09100.508 “Vehicle Equipment Replacement,” which stipulates a 5-year replacement period.
Staff recommends an appropriation in the amount of $63,000 from the Fleet Replacement Fund 684 to the Vehicle Procurement Operating and Maintenance Project No. 68340.
Item b - Authorize the City Manager, or his designee, to execute the First Amendment to the Professional Services agreement with Hinder De Llamas and Associates and increase the total compensation by $100,000 for a revised total compensation of $350,000 for Business License Administration Services.
On June 7, 2023, City Council awarded Request for Proposals (RFP) 23-065AT to Hinderliter de Llamas and Associates (HdL) for administration of the business license program. HdL was established over 40 years ago and provides software applications and professional services to local governments which help to automate and improve processes in various functional areas. They work with over 355 local governments in California. The agreement with HdL has enabled the City to improve the overall efficiency of business license processing, increase revenues while reducing costs, and effectively enforce business license requirements set forth in the City of Corona Municipal Code.
Previously paused during the pandemic, HdL restarted compliance monitoring and in doing so found several businesses out of compliance. Staff recommends an amendment to the professional services agreement to account for additional expenses incurred as a result of compliance monitoring. There is a corresponding estimated revenue increase which will offset the additional expenses.
Item c - Authorize a contract amendment and change order for Accenture LLP DBA Anser Advisory Management, LLC, for Project Management Services for Capital Improvements Projects.
In Fiscal Year 2024, the Accenture Blanket Purchase Order (B240959) was approved for $100,000 for project management services. Due to the delay in hiring staff, the department relied on a project management consultant to manage CIP projects until project manager positions had been filled. The contract amendment will increase the purchase order from $100,000 to $122,000 for Fiscal Year 2024.
Item d - Adopt Resolution No. 2024-025, approving the City of Corona Position Library and Compensation Plan and repealing all prior Plans, including Resolution No. 2024-001, effective May 4, 2024.
State regulations for public employers require disclosure of position classifications and corresponding compensation. To ensure compliance and even greater transparency, the City Council has previously adopted and updated the Position Library and Compensation Plan (Plan). This document includes a list of all authorized employment positions for the City and their corresponding compensation ranges.
The Plan provides added organizational efficiency and permits departments to continue streamlining operations without impacting service levels. Additionally, it allows members of the public to see what positions, even those not currently filled, are paid. To this end, it is essential to note that this document is strictly a resource document of available employment positions, as listed positions will not necessarily be budgeted or funded in any given fiscal year. A list of full-time budgeted positions is located on the City’s website.
Resolution No. 2025-025 will make the following adjustments to the City of Corona Position Library and Compensation Plan:
i. Add Construction Manager Position: The Public Works Inspector Superintendent position currently oversees critical infrastructure projects, including public sewer, potable water, and electrical systems, with responsibilities extending beyond those typical of similar roles in other cities. This role demands a deep understanding of complex regulations and adherence to strict standards crucial for public safety. Over time, responsibilities comparable to those of a Construction Manager have been incorporated, such as managing Requests for Proposals, overseeing consulting services, and managing public and private construction projects. Reclassifying this position to Construction Manager aligns the job title with the actual scope of duties, ensures competitive compensation, and standardizes the role to facilitate the retention and recruitment of qualified professionals, enhancing the City’s capacity to manage its infrastructure projects efficiently.
ii. Add Economic Development Manager Position: The reclassification of the Economic Development Administrator to Economic Development Manager is proposed to align with the increased focus on revitalizing and transforming critical areas within our community. This change reflects the growing responsibility of managing comprehensive redevelopment projects crucial for sustainable economic growth and community enhancement.
The evolving scope of this position demands a title that more accurately describes its focus on strategic redevelopment efforts, including planning, managing, and overseeing projects aimed at enhancing urban spaces and economic viability. Aligning this role with industry standards, the reclassification will help attract and retain specialists skilled in urban renewal and economic revitalization strategies.
This adjustment is vital for the City’s continued success in redevelopment initiatives, ensuring our community's progression towards a revitalized and economically robust future.
iii. Adjust Salary Range for the Environmental Compliance Supervisor Position: The request to update the job description and salary for the Environmental Compliance Supervisor reflects the significant expansion in responsibilities and complexity of the role since the organizational changes in 2021. Initially focused primarily on NPDES compliance, the position now encompasses broader regulatory oversight, requiring enhanced qualifications and expertise. The proposed 5% salary adjustment aligns the compensation with these new demands. It ensures our ability to attract and retain skilled professionals, which is crucial for effectively supervising the City’s complex compliance needs. This change is essential in maintaining the integrity and effectiveness of the public works operations. The change for the Environmental Compliance Supervisor is retroactive to January 14, 2024.
FINANCIAL IMPACT:
Approval of recommended actions will have financial impacts as noted below. There is sufficient fund balance or working capital available in each of the respective funds for approval of the recommended actions.
|
Fund |
Appropriations |
Estimated Revenue Increase |
Net Impact |
|
General Fund (110) |
$ 633,872.82 |
$ 315,957.82 |
$ 317,915.00 |
|
Measure X Fund (120) |
2,500.00 |
- |
2,500.00 |
|
Measure A Fund (227) |
10,500.00 |
- |
10,500.00 |
|
CFD 2018-1 Special Tax B (Bedford) Fund (236) |
36,459.00 |
- |
36,459.00 |
|
CFD 2018-2 Special Tax B Sierra B Fund (237) |
7,072.00 |
- |
7,072.00 |
|
CFD 2017-2 Valencia Special Tax B Fund (238) |
2,838.00 |
- |
2,838.00 |
|
CFD 2016-3 Zone 13 Corona Industrial Park Fund (239) |
4,697.00 |
- |
4,697.00 |
|
CFD 2002-2 Landscape Maintenance Fund (247) |
116.00 |
- |
116.00 |
|
CFD 97-1 Landscape Maintenance Fund (248) |
777.00 |
- |
777.00 |
|
CFD 2011-1 Landscape/Lighting Fund (253) |
2,194.00 |
- |
2,194.00 |
|
CFD 2016-2 Terrassa Special Tax B Fund (255) |
7,833.00 |
- |
7,833.00 |
|
CFD 2016-3 Zone 2 Boardwalk Fund (257) |
2,621.00 |
- |
2,621.00 |
|
CFD 2016-3 Zone 3 Dollar Self Fund (258) |
22.00 |
- |
22.00 |
|
CFD 2016-3 Zone 4 515 S Promenade Fund (259) |
167.00 |
- |
167.00 |
|
CFD 2016-3 Zone 18 Corona Inter. Comm. Center Fund (264) |
66.00 |
- |
66.00 |
|
CFD 2016-3 Zone 19 Cresta/Promenade Fund (265) |
9,403.00 |
- |
9,403.00 |
|
CFD 2016-3 Zone 21 Christopher Ranch Fund (267) |
8.00 |
- |
8.00 |
|
CFD 2016-3 Zone 22 N. Main Retail Fund (268) |
473.00 |
- |
473.00 |
|
CFD 2016-3 Zone 24 W. Coast Freeway Center Fund (270) |
1,152.00 |
- |
1,152.00 |
|
CFD 2016-3 Zone 25 Prom Dist Center Fund (271) |
37.00 |
- |
37.00 |
|
CFD 2016-3 Zone 26 TM 36605/36608 Fund (272) |
11,914.00 |
- |
11,914.00 |
|
CFD 2016-3 Zone 27 Corona TLE Fund (273) |
28.00 |
- |
28.00 |
|
CFD 2016-3 Zone 31 LAT Business Fund (279) |
7,619.00 |
- |
7,619.00 |
|
CFD 2016-3 Zone 32 NH Sherborn Fund (280) |
5,898.00 |
- |
5,898.00 |
|
CFD 2016-3 Zone 33 Oakmont Fund (281) |
2,070.00 |
- |
2,070.00 |
|
CFD 2016-3 Zone 15 Northpoint Eva Fund (287) |
15.00 |
- |
15.00 |
|
CFD 2016-3 Zone 3 TM 31373 Fund (294) |
565.00 |
- |
565.00 |
|
CFD 2016-3 Zone 8 Karen Parker Fund (297) |
55.00 |
- |
55.00 |
|
LMD 84-1 Street Lights Fund (446) |
95,977.00 |
- |
95,977.00 |
|
Workers Compensation Fund (683) |
850,000.00 |
- |
850,000.00 |
|
Fleet Replacement Fund (684) |
63,000.00 |
- |
63,000.00 |
|
Total |
$1,759,948.82 |
$315,957.82 |
$1,443,991.00 |
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environment Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQS applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action is to approve budgetary adjustments for Fiscal Year 2024, and there is no possibility that approval of the recommended actions will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: JULIE KENNICUTT, BUDGET MANAGER
REVIEWED BY: KIM SITTON, FINANCE DIRECTOR
Attachments:
1. Exhibit 1 - Appropriations, Estimated Revenues, and Transfers
2. Exhibit 2 - Hinderliter de Llamas and Associates - First Amendment
3. Exhibit 3 - Accenture LLP DBA Anser Advisory Management, LLC - Second Amendment
4. Exhibit 4 - Resolution No. 2024-025 Position Library and Compensation Plan
5. Exhibit 5 - Position Library and Compensation Plan - Clean
6. Exhibit 6 - Position Library and Compensation Plan - Redline