REQUEST FOR CITY COUNCIL ACTION
CORONA HOUSING AUTHORITY ACTION
CORONA UTILITY AUTHORITY ACTION
CORONA PUBLIC FINANCING AUTHORITY
DATE: 06/05/2024
TO: Honorable Mayor and City Council Members
FROM: Finance Department
SUBJECT:
Title
ADOPTION OF THE CITY OF CORONA PROPOSED BUDGET FOR FISCAL YEAR 2025, AMENDMENTS TO THE FISCAL YEAR 2024 ADOPTED BUDGET, AND RELATED CONTRACT AMENDMENTS, CHANGE ORDERS, AND PURCHASE ORDERS
End
EXECUTIVE SUMMARY:
The Fiscal Year 2025 Proposed Budget was reviewed and discussed at the Spring Financial Workshop on March 28, 2024, and at the Study Session on May 15, 2024. This report recommends approval of the proposed budget and includes additional actions identified after the last budget presentation to be incorporated into the Fiscal Year 2025 Adopted Budget. In addition, this report includes recommended Fiscal Year 2024 budget adjustments and contract amendments, change orders, and purchase orders for both Fiscal Years 2024 and 2025.
RECOMMENDED ACTION:
Recommended action
That the:
a. City Council adopt Resolution No. 2024-027, adopting the City’s budget for Fiscal Year 2025, Revised Budget Items, and General Fund Budget Policies.
b. Corona Utility Authority adopts Resolution No. 2024-028, adopting said Authority’s budget for Fiscal Year 2025, Revised Budget Items, and Budget Policies.
c. Corona Public Finance Authority adopts Resolution No. 2024-029, adopting said Authority’s budget for Fiscal Year 2025, Revised Budget Items, and Budget Policies.
d. Corona Housing Authority adopts Resolution No. 2024-030, adopting said Authority’s budget for Fiscal Year 2025, Revised Budget Items, and Budget Policies.
e. City Council adopts Resolution No. 2024-031, adopting the annual appropriations limit for Fiscal Year 2025 and selecting the population and inflation factors accordingly.
f. City Council and Corona Utility Authority approve the following additional budget items to be included in the Fiscal Year 2025 adopted budget:
i. Authorize an appropriation in the amount of $621,450 in the General Fund 110 within the General Government for Police Succession Planning. This item was previously approved by the City Council on May 1, 2024, for Fiscal Year 2024 costs. This recommended action will approve the recurring costs in Fiscal Year 2025 and onward.
ii. Authorize a budgetary reduction in the amount of $120,179 in the General Fund 110 for the Police Department’s Training Rooms Upgrade and the Records Supervisor Office Expansion Operating and Maintenance Projects.
iii. Authorize an appropriation in the amount of $52,000 in the Measure X Fund 120 to the Vehicle Procurement Project No. 68340 for additional funds needed to purchase a vehicle for the Executive Team Leadership Reorganization Service Level Change submitted by the Fire Department.
iv. Authorize an appropriation in the amount of $245,370 in the LMD 84-2, Zone 20 Fund 470 to the Community Services Department’s operating budget to correct the budget for the water and recycled water utility costs.
v. Authorize an appropriation in the amount of $225,000 from the Reclaimed Water Utility Fund 567 to the Citywide AMI Meter Replacement Capital Improvement Project No. UT-2022-03.
vi. Authorize an appropriation in the total amount of $35,908 across multiple funds (itemized in the Analysis section) for custodian, administration, and redemption services for City bonds.
g. City Council and Corona Utility Authority approve the following contract amendments, change orders, and purchase orders for Fiscal Year 2025:
i. Authorize the City Manager, or his designee, to issue purchase orders for the attached list (Exhibit 8) of Information Technology software renewals for Fiscal Year 2025 including any non-substantive extensions, change orders, purchase orders, and amendments up to the lesser of either $100,000 or 10% of the original contract amount as authorized by Corona Municipal Code Section 3.08.070 (I).
ii. Approve an extension of the Professional Services Agreement with Infosend, Inc. for utility billing and other printing and mailing services, with the following conditions:
• Authorize the City Manager, or his designee, to execute the attached Sixth Amendment (Exhibit 9) to the Professional Services Agreement to extend the term for an additional one-year period at the rates set forth therein and with a total compensation of $500,000 annually.
• Authorize the City Manager, or his designee, to execute amendments to the Professional Services Agreement to extend the term for up to three one-year renewal periods, with increases in the rates and the total compensation amount equal to the lesser of five percent (5%) or the percentage change in the United States Bureau of Labor Statistics Consumer Price Index for the Riverside Area, as determined by the Purchasing Manager, for the most recent twelve (12) months period for which statistics are available.
• Authorize the City Manager, or his designee, to approve and execute any documents necessary to implement change orders, up to the amount authorized by Corona Municipal Code Section 3.08.070(I), with respect to the total compensation amount provided for in the attached Sixth Amendment or subsequent renewal period amendments.
• Authorize the City Manager or his designee to execute any additional non-substantive amendments to the attached Sixth Amendment or subsequent renewal period amendments.
• Decide under Corona Municipal Code Section 3.08.140 (E) that competitive bidding is not required for these services based upon the reasons provided for in this agenda report.
iii. Approve an amendment to the Professional Services Agreement with Alexander’s Contract Services, Inc., for three one-year optional renewals in the amount of $943,750.
• Authorize the City Manager, or his designee, to execute an amendment (Exhibit 10) to the Professional Services Agreement in the amount of $943,750., including any non-substantive extensions, change orders, purchase orders, and amendments up to the amount authorized by Corona Municipal Code Section 3.08.070 (I), which is equivalent to 10% or $94,375.
• Authorize the City Manager, or his designee, to execute successive amendments for annual rate increases not exceeding the percentage of change in the United States Bureau of Labor Statistics Consumer Price Index “All Urban Consumers for Riverside, California, Area (CPI-U), not seasonally adjusted, for the most recent twelve (12) months for which statistics are available to each extension period exercised.
• Decide under Corona Municipal Code Section 3.08.140 (E) that competitive bidding is not required for this service based upon the reasons provided in this agenda report.
h. City Council and Corona Utility Authority approve the following budget amendments for Fiscal Year 2024:
i. Authorize a continuing appropriation in the amount not-to-exceed $1,402,248 ($588,784 in the General Fund 110 and $813,464 in the Measure X Fund 120) from Fiscal Year 2024 to Fiscal Year 2025 for several items (discussed in the Analysis section) in the Fire and Information Technology Department. The final amount will be determined based on the fiscal year-end balance.
ii. Authorize a continuing appropriation in the amount not to exceed $207,000 in the Measure X Fund 120 from Fiscal Year 2024 to Fiscal Year 2025 for the Homeless Program within the City Manager’s Office. The final amount will be determined based on the fiscal year-end balance in the program.
iii. Authorize a continuing appropriation in the amount not to exceed $85,000 in Measure X Fund 120 from Fiscal Year 2024 to Fiscal Year 2025 for the Lobby Refresh Project in the Planning and Development Department. The final amount will be determined based on the project's fiscal year-end balance.
iv. Authorize an appropriation in the amount of $100,000 in the Measure X Fund 120 to the Community Services Department for an increase in Graffiti Removal Services.
v. Authorize a budgetary reduction in the amount of $134,240 in the Direct Access Electric Utility Fund 576 due to clarification received on Electric Franchise Fees.
i. City Council and Corona Utility Authority approve the following contract amendments, change orders, and purchase orders for Fiscal Year 2024:
i. Approve an amendment to the Maintenance/General Services Agreement with Graffiti Protective Coatings, Inc. to increase the compensation by $100,000 for a total compensation of $400,000 for fiscal years ending June 30, 2024, and June 30, 2025.
• Authorize the City Manager, or his designee, to execute the attached (Exhibit 11) Fourth Amendment to the Maintenance/General Services Agreement in the amount of $400,000, including any non-substantive extensions, change orders, purchase orders, and amendments up to the amount authorized by Corona Municipal Code Section 3.08.060 (J), which is equivalent to 10% or $40,000.
ii. Approve an amendment to the Maintenance/General Services Agreement with Roadsafe Traffic Systems, Inc. to increase the compensation by $25,000 for a total compensation of $125,000 for the fiscal year ending June 30, 2024.
• Authorize the City Manager, or his designee, to execute the attached (Exhibit 12) First Amendment to the Maintenance/General Services Agreement in the amount of $125,000, including any non-substantive extensions, change orders, purchase orders, and amendments up to the amount authorized by Corona Municipal Code Section 3.08.060 (J), which is equivalent to 10% or $12,500.
j. Adopt Resolution No 2024-068, approving the City of Corona Position Library and Compensation Plan and repealing all prior Plans, including Resolution No. 2024-025, effective June 29, 2024.
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BACKGROUND & HISTORY:
The Fiscal Year (FY) 2025 budget process began in November 2023. On Thursday, March 28, 2024, the Spring Financial Workshop was held to discuss the budget, set goals, and receive direction from the City Council for the development of the FY 2025 budget. The Spring Financial Workshop was an extremely important step in the budget process and included reviewing the City’s Strategic Plan and discussions about the additional revenues generated from the sales tax measure, Measure X. From this workshop, staff prepared the operating budget, capital improvement plan, and additional service adjustment requests for the City Council’s consideration.
On May 15, 2024, a Study Session was held to update the public and City Council on the progress of the FY 2025 proposed budget. Staff presented the proposed budget overview and a recap of the budget items discussed in the Spring Financial Workshop.
ANALYSIS:
The City of Corona FY 2025 Proposed Operating Budget and Capital Improvement Plan are presented in this report for the City Council’s consideration and adoption. Additionally, there are budgetary adjustments identified after the Study Session meeting on May 15, 2024, which need to be incorporated in the FY 2025 budget, and budgetary amendments to the FY 2024 budget are presented for the City Council’s consideration and approval.
The estimated revenue budget for FY 2025 is $454.3 million, which represents an increase of $2.8 million, or 0.6%, compared to the FY 2024 revenue projections. The most significant increase, $13.0 million, is in the General Fund. The second largest change is a decrease of $10.3 million in Capital Projects Fund Type. The third largest change is in the Enterprise Funds, with an increase of $5.9 million. Lastly, a $4.6 million increase for Internal Service Funds.
The proposed expenditure budget for FY 2025 totals $464.1 million, which is an increase of $24.4 million, or 5.5%, compared to the FY 2024 adopted budget. The net change is based on increases in the following categories: $11.7 million in Personnel costs, $9.2 million in Materials and Supplies, $5.1 million in Utilities, $2.0 million in Operating and Maintenance Projects, and $0.6 million in Contractual Services. In addition, there are decreases of $5.5 million in Capital Improvement Projects and $0.1 million in Capital Outlay.
Recommended actions a, b, c, and d: Annual Budget, Revised Budget Items and Budget Policies
The FY 2025 budget was developed in alignment with the City’s adopted Strategic Plan and the following six strategic goals:
1. Financial Stability
2. Strong Economy
3. Sound Infrastructure
4. Safe Community
5. Sense of Place
6. High Performing Government
Presented for consideration by the City Council, Corona Utility Authority, Corona Housing Authority, and Corona Public Financing Authority are the resolutions to adopt the Proposed FY 2025 budget and Ten-Year Capital Improvement Plan, along with Revised Budget Items as specified in Attachment A to each resolution, if applicable. The Revised Budget Items are changes that have been identified since the Study Session on May 15, 2024. The Ten-Year Capital Improvement Plan allows for coordination, financing, and timing of major City public improvements. These documents are prepared to communicate the City’s strategic goals and use of resources.
Recommended action e: Appropriations Limit for FY 2025
Article XIII B of the California Constitution specifies that appropriations made by local governments may increase annually by a factor comprised of the change in population from one year to another combined with an inflation factor. For the population factor, jurisdictions have a choice between the percentage change in the City’s population growth or the County population growth. For the inflation factor, jurisdictions can choose between the California per capita personal income or the increase in non-residential assessed valuation due to new construction. Under the California Constitution, a jurisdiction is required to adopt the Gann Appropriation Limit annually by resolution, selecting each factor by a vote of the governing body. The factors that pertain to the Fiscal Year 2025 calculation are as follows:
Population Percentage Growth
City of Corona 0.22%
County of Riverside 0.55%
Inflation Percentage Factors
California per capita personal income 3.62%
Change in non-residential assessed
Valuation due to new construction Not Available
Staff recommends that the County’s population change of 0.55% and the California per capita personal income change of 3.62% be approved by the City Council. The change in non-residential assessed valuation is usually not available to the City at the time the limit needs to be adopted. When the change in non-residential assessed valuation due to new construction is available, and if it is higher than the California per capita personal income change, staff will recalculate the Appropriations Limit and will resubmit to the City Council for approval. The City’s audit firm provides an attestation letter of the calculation during the audit process each fiscal year.
Recommended action f: City Council and Corona Utility Authority approve the following additional budget items to be included in the Fiscal Year 2025 adopted budget.
After the proposed budget information was presented to the City Council on May 15, 2024, the following items were identified as budget revisions and are being recommended for funding in the FY 2025 budget:
i. Authorize an appropriation in the amount of $621,450 in the General Fund 110 within the General Government for Police Succession Planning. This item was previously approved by the City Council on May 1, 2024, for Fiscal Year 2024 costs. This recommended action will approve the recurring costs in Fiscal Year 2025 and onward.
As presented at the May 1, 2024, Council Meeting, 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.
ii. Authorize a budgetary reduction in the amount of $120,179 in the General Fund 110 for the Police Department’s Training Rooms Upgrade and the Records Supervisor Office Expansion Operating and Maintenance Projects.
The budget proposed for FY 2025 was an estimate. Staff was able to reduce costs considerably and secure both projects for $50,000. Staff will use donations to cover the costs of the projects. Thus, there is no need for a new appropriation in FY 2025.
iii. Authorize an appropriation in the amount of $52,000 in the Measure X Fund 120 to the Vehicle Procurement Project No. 68340 for additional funds needed to purchase a vehicle for the Fire Leadership Reorganization Service Level Change submitted by the Fire Department.
The Fire Leadership Reorganization and a new vehicle is being recommended for approval with the FY 2025 budget. Additional funds are requested for the vehicle’s down payment and upfit costs.
iv. Authorize an appropriation in the amount of $245,370 in the LMD 84-2, Zone 20 Fund 470 to the Community Services Department’s operating budget to correct the budget for the water and recycled water utility costs.
The proposed budget erroneously omitted the water utility and recycled water utility budget lines. The Community Services Department is requesting an increase in the budget to correctly account for water and reclaimed water utility costs.
v. Authorize an appropriation in the amount of $225,000 from the Reclaimed Water Utility Fund 567 to the Citywide AMI Meter Replacement Capital Improvement Project No. UT-2022-03.
The Utilities Department has a capital improvement project to replace manual read meters with Advanced Metering Infrastructure meters. The funding for this project has been allocated from the Water Utility Fund 570; however, out of the 46,300 that need to be replaced or retrofitted, 416 reclaimed meters will need to be funded out of the Reclaimed Water Utility Fund 567 in the amount of $225,000 for shared costs and meter procurement.
vi. Authorize an appropriation in the total amount of $35,908 across several funds for custodian, administration, and redemption services for City bonds.
The Finance Department conducted an audit of Bank of New York (BNY) fiscal agent services expenses. BNY provides the City with custodian, administration, and redemption services for City bonds. The audit showed that the proposed budget for FY 2025 should be $35,905 for these services. The following list, by fund, includes the bond funds to be serviced in FY 2025. The bond funds include Community Facilities Districts, the 2023 Water Revenue Refunding Bonds, and the 2021 Pension Obligation Bonds.
|
Fund Name |
Fund Code |
FY 2025 Proposed Budget |
|
General Fund |
110 |
9,592 |
|
Measure X Fund |
120 |
241 |
|
County Service Area 152 (NPDES) Fund |
245 |
7 |
|
Residential Refuse/Recycling Fund |
260 |
2 |
|
Low Moderate Income Housing Asset Fund |
291 |
2 |
|
CFD 97-2 (Eagle Glen I) Fund |
371 |
1,400 |
|
AD 96-1, 99 A (Centex) Fund |
373 |
1,700 |
|
CFD 2000-1 (Eagle Glen II) Fund |
374 |
1,400 |
|
CFD 2001-2 (Cresta-Grande) Fund |
377 |
1,400 |
|
CFD 2002-1 (Dos Lagos) Fund |
378 |
1,400 |
|
CFD 2002-4 (Corona Crossings) Fund |
381 |
1,400 |
|
CFD 2004-1 (Buchanan Street) Fund |
382 |
1,400 |
|
CFD 2003-2 (Highlands Collection) Fund |
383 |
1,400 |
|
CFD 2018-1 Bedford Fund |
384 |
2,800 |
|
CFD 2018-2 Sierra Bella Debt Service Fund |
386 |
1,400 |
|
CFD 2002-1 (Improvement Area) Fund |
387 |
1,400 |
|
CFD 2016-2 (Terrassa Special Tax A) Fund |
390 |
1,400 |
|
CFD 2017-2 (Valencia Special Tax A) Fund |
392 |
1,400 |
|
RDA Successor Agency Fund |
417 |
3,400 |
|
Community Development Block Grant (CDBG) Fund |
431 |
1 |
|
Successor Agency Administration Fund |
475 |
1 |
|
Water Capacity Fund |
507 |
574 |
|
Reclaimed Water Utility Fund |
567 |
203 |
|
Water Utility Fund |
570 |
735 |
|
Sewer Utility Fund |
572 |
1,163 |
|
Direct Access Electric Utility Fund |
576 |
10 |
|
Transit Services Fund |
577 |
6 |
|
Greenfield Electric Utility Fund |
578 |
16 |
|
Warehouse Services Fund |
680 |
2 |
|
Information Technology Fund |
681 |
40 |
|
Fleet Operations Fund |
682 |
13 |
|
Total |
|
$ 35,908 |
Recommended Action g: City Council and Corona Utility Authority approve the following contract amendments, change orders, and purchase orders for Fiscal Year 2025.
i. Authorize the City Manager, or his designee, to issue purchase orders for the attached list (Exhibit 8) of Information Technology software renewals for Fiscal Year 2025 including any non-substantive extensions, change orders, purchase orders, and amendments up to the lesser of either $100,000 or 10% of the original contract amount as authorized by Corona Municipal Code Section 3.08.070 (I).
The City utilizes a wide range of software for City operations. In an effort to streamline the procurement process for annual routine software renewals, staff is recommending approval of the attached list of annual renewals. Including a comprehensive list of items greater than $55,000 will help to ensure maximum efficiency and savings are realized in the procurement of the annual technology maintenance agreements. The City’s ability to continue to use technology is typically tied to the continuation of annual maintenance payments or subscriptions for that technology. Many vendors are the sole providers of support for their products (i.e., software, hardware, and professional services). Due to the nature of the security requirements related to credit card processing and online payment gateways, many financial software vendors have established relationships with specific third-party providers so their products can maintain certifications and ensure that they meet current and future security standards. These relationships result in making those service providers the sole source for that application.
ii. Approve an extension of the Professional Services Agreement with Infosend, Inc. for utility billing and other printing and mailing services.
The Utilities Department (UD) requires utility bill printing and mailing services for its customers. InfoSend, Inc. (InfoSend) has provided the UD with exceptional service, sending out utility bills to Corona customers since 2004. Infosend has consistently provided the UD with high responsiveness, accuracy, and thoroughness, meeting UD requirements and expectations. InfoSend integrates seamlessly with Advanced Utility Systems’ Customer Information System (CIS) and PayNearMe, allowing customers to pay in cash at all 7-Eleven locations. Due to efficiency and cost savings, various departments within the City utilize Infosend’s services to insert notices or program flyers in customers’ utility bills to save on costly postage fees. Several projects require additional printing and mailing services, including postcard notifications for meter replacements and Proposition 218 notices, among other mandatory notices.
Basis for Determination of Competitive Bidding
UD is requesting an exception to competitive bidding for Infosend, pursuant to Corona Municipal Code (“CMC”) Section 3.08.140(E), which states as follows:
“Purpose of bidding is otherwise accomplished. When the purchasing agent and the authorized contracting party, with the approval of the City Manager, determine that it is in the best interest of the city and its administrative operations to dispense with public bidding for non-public projects under this chapter.”
The UD is implementing a new customer portal with Accelerated Innovations and has recently awarded a contract to Advanced Utility Systems to upgrade UD’s CIS billing software from version 3 to 5. Staff believe it is in the City's best interest to dispense from bidding due to the seamless integration of Infosend with CIS and the upcoming customer portal. Taking on a new vendor would require additional time and funds to integrate their system to CIS and the customer portal. UD staff are familiar with Infosend’s processes to produce bills electronically and print or request changes to messages or add inserts to utility bills.
The rates proposed by Infosend for Fiscal Year 2025 have been adjusted by 3.5% from Fiscal Year 2024 rates, which is less than the All Urban Consumers for Riverside, California, Area (CPI-U), not seasonally adjusted, for the most recent twelve (12) months of 4.7%.
iii. Approve an amendment to the Professional Services Agreement with Alexander’s Contract Services, Inc., for three one-year optional renewals in the amount of $943,750.00.
On June 21, 2023, City Council approved an extension to Alexander’s Contract Services (ACS) for an additional three fiscal years to sustain services until the completion of the Advanced Metering Infrastructure Meter Replacement Project (AMI). ACS’s current contract amount is $943,750, and staff believes this amount is sufficient to cover the necessary services until the AMI project is fully implemented. ACS is familiar with the UD’s service standards and procedures and, over the years, has provided excellent, reliable service to the UD. ACS is requesting to adjust its rates by (CPI-U) to account for increases in its payroll and has submitted its proposed rates for Fiscal Year 2025.
Basis for Determination of Competitive Bidding
UD is requesting an exception to competitive bidding for ACS annually through June 30, 2026, pursuant to Corona Municipal Code (“CMC”) Section 3.08.140(E), which states as follows:
“Purpose of bidding is otherwise accomplished. When the purchasing agent and the authorized contracting party, with the approval of the City Manager, determine that it is in the best interest of the city and its administrative operations to dispense with public bidding for non-public projects under this chapter.”
The Utilities Department (UD) is currently conducting a bid for the Advanced Metering Infrastructure Meter Replacement Project (AMI), which will eliminate the need for meter reading services upon completion of the project in FY 2026. As AMI meters are installed and begin providing automatic reads, meter reading services will be diminished, thereby reducing meter read services provided by the contractor. Staff believes that it is in the best interest of the City to extend the current contract to ACS to ensure meter reading services are continuous and accurate during the transition to AMI meters. Since ACS has been working with the City for more than 10 years, they are very familiar with City streets and routes. It takes time to learn the locations of the meters and to be able to run the routes efficiently. Taking on a new contractor for a short period of time does not benefit the UD as it will take time for them to learn the routes and meter locations. Both ACS and UD staff are familiar with the systems used and processes to obtain reads to produce accurate billing statements and perform ancillary services such as lid replacements and turning services on and off. ACS is readily available for UD staff to re-check and verify meter reads to prevent delays and ensure accuracy with daily billing, and ensure water is turned on the same day for our residents. The department does not have the additional resources to assist a new meter reading contractor with the routes due to the number of projects that are taking place concurrently such as the AMI meter replacement project, utility billing software upgrade, and a new portal for utility customers.
Recommended action h: City Council and Corona Utility Authority approve the following budget amendments Fiscal Year 2024.
i. Authorize a continuing appropriation in the amount not to exceed $1,402,248 ($588,784 in the General Fund 110 and $813,464 in the Measure X Fund 120) from Fiscal Year 2024 to Fiscal Year 2025 for several items in the Fire and Information Technology Department. The final amount will be determined based on the fiscal year-end balance.
The Fire Department is requesting continuing appropriations for the following items:
• A $318,100 Live Burn Training Prop project is currently in progress. To date, a soil sample has been taken, and the Fire Department is working with the Purchasing Division to issue a Request for Proposals (RFP).
• Wellness/Blood Test Cancer Screening Tests in the amount of $50,895. This project is currently in progress. City staff is working with vendor on the City agreement. City’s redlines are still with the vendor. The actual amount to be rolled over will be determined at the end of FY 2024.
• AMR Enhancement Funds in the amount of $215,957.82. 2022-2023 AMR Enhancement Funds were approved by the Council on May 1, 2024, as a part of the Q3 budget adjustment. Funds will go towards EMS Skills Lab Educational Tools/Resources, Enhanced Training (Non-Personnel), Enhanced Training (Personnel), and Homeless Solutions (Personnel).
• Minor Equipment and Furniture, Program Expenditures, EMS Subscription Admin, Job Req. Certificates and Licenses in the amount of $209,431.42. Various projects are still in progress utilizing the rollover AMR funds from the current FY that were appropriated for minor equipment and furniture. The EMS subscription on water bill fees is also outstanding through the Utilities Department, which is through the EMS subscription program. Additionally, this includes funding for emergency medical technician (EMT) recertifications, paramedic license recertifications, and paramedic licensing for new staff. The actual amount to be rolled over will be determined at the end of FY 2024.
• Professional Services in the amount of $94,781.82. Invoices are still pending for outstanding background checks that were made for the new class of firefighters; CAL FIRE Wildland Fire Protection billing and administration fees are still pending from County of Riverside.
The Fire Department and Information Technology (IT) Department are requesting continuing appropriations for the following item:
• CAD Dispatch Services in the amount of $513,081.81. The Council approved a Fire Dispatch and Emergency Communications Services agreement between the Cities of Corona and Ontario in FY 2022. Approval included the appropriation of short-term/one-time costs from the Measure X Reserve (Public Safety) to the Fire Department’s operating budget. Recurring costs were budgeted in the Information Technology budget starting in FY 2023. The dispatch transition was delayed due to the onboarding of a new CAD operator. The Fire and IT departments would like to request to roll over the remainder of the unspent funds in the amount of approximately $513,081.81 from FY 2024 to FY 2025 to continue the efforts of implementation. The actual amount to be rolled over will be determined at the end of FY 2024.
ii. Authorize a continuing appropriation in the amount not to exceed $207,000 in the Measure X Fund 120 from Fiscal Year 2024 to Fiscal Year 2025 for the Homeless Program within the City Manager’s Office. The final amount will be determined based on the fiscal year-end balance in the program.
The balance is requested as the Homeless Strategic Plan has many programs in the developmental stages. The additional funds will be needed in Fiscal Year 2025 as multiple plan components are approved by City Council and subsequently implemented.
iii. Authorize a continuing appropriation in the amount not to exceed $85,000 in Measure X Fund 120 from Fiscal Year 2024 to Fiscal Year 2025 for the Lobby Refresh Project in the Planning and Development Department. The final amount will be determined based on the project's fiscal year-end balance.
The Planning and Development Department requested and was approved for the Lobby Refresh Project in Fiscal Year 2024. The project is currently in progress, and depending on when it is completed, funds may need to roll over.
iv. Authorize an appropriation in the amount of $100,000 in the Measure X Fund 120 to the Community Services Department for an increase in Graffiti Removal Services.
The Community Services Department is requesting an amendment to the existing contract with Graffiti Protective Coatings to bring the total amount to $400,000. This will result in an additional $100,000 appropriation to abate the rise in graffiti throughout the City.
v. Authorize a budgetary reduction in the amount of $134,240 in the Direct Access Electric Utility Fund 576 due to clarification received on Electric Franchise Fees.
The franchise fee should only be applied to the Greenfield Electric Utility Fund 578. The intent of the franchise fee is to cover the wear and tear to roads and physical assets associated with the utility. The Direct Access Electric Utility Fund 576 has no physical assets because all physical assets associated with those accounts belong to SCE. Therefore, only the Greenfield Electric Utility Fund 578 should be charged the franchise fee.
Recommended action i: City Council and Corona Utility Authority approve the following contract amendments, change orders, and purchase orders for Fiscal Year 2024.
i. Approve an amendment to the Maintenance/General Services Agreement with Graffiti Protective Coatings, Inc. to increase the compensation by $100,000 for a total compensation of $400,000 for fiscal years ending June 30, 2024 and June 30, 2025.
In 2021, the City transitioned to contractual graffiti services with Graffiti Protective Coatings (GPC) in an effort that the City Council supported to abate graffiti in a timely fashion and provide quality workmanship. Since then, the City has seen positive feedback from the community and provided great customer service in the process. However, the City has seen a rise in graffiti over the past several months as well as providing proactive services in known “hot spot” areas. This has made it challenging to keep up with the large demand of graffiti removal being tagged throughout various parts of town. In addition, the original contractual value and budget will not support the required amount to keep up. The Community Services Department is requesting an amendment to the existing contract to bring the total amount to $400,000. This will allow the Community Services Department to keep up with the current demand and provide the quality work the residents of Corona deserve.
ii. Approve an amendment to the Maintenance/General Services Agreement with Roadsafe Traffic Systems, Inc. to increase the compensation by $25,000 for a total compensation of $125,000 for the fiscal year ending June 30, 2024.
Approve a contract amendment increase for Roadsafe Traffic Systems in the amount of $25,000. Roadsafe Traffic Systems provides professional traffic control services for the Community Services Department. They have the trained staff, equipment, and resources to safely set up lane and road closures for the city's special events such as the 4th of July, Summer Concerts, and Holiday Lighting. The City has used Roadsafe formally “A Cone Zone” for several years and they have always been very responsive and professional. This amendment will bring the total contract value to $125,000.
Recommended action j: Adopt Resolution No 2024-068, approving the City of Corona Position Library and Compensation Plan and repealing all prior Plans, including Resolution No. 2024-025, effective June 29, 2024.
State regulations for public employers require disclosure of position classifications and corresponding compensation. In an effort to ensure position compliance updates and for even greater transparency, the City Council regularly adopts and updates the Position Library and Compensation Plan, a document that includes a list of all authorized employment positions for the City and their corresponding compensation ranges (“Plan”).
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 any given position, even those not currently filled, is paid. To this end, it is essential to note that this document is strictly a resource of all employment positions, and the positions listed 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 and within the City’s Operating Budget.
Updates to the City of Corona Position Library and Compensation Plan has been modified to reflect newly added positions for Fiscal Year 2025 based on the needs of the organization, as well as updates to certain existing positions:
1. Budget Supervisor (new)
2. IT Administrative Assistant (new)
3. Lead Public Works Inspector (new)
4. Real-Time Information Center Operator (new)
5. Real-Time Information Center Supervisor (new)
6. Security Analyst (new)
7. Sustainability Supervisor (new)
8. Janitor (update)
9. Police Officer Trainee (update)
The Human Resources Department has reviewed each position and recommends they be included in the Plan for Fiscal Year 2025.
FINANCIAL IMPACT:
Recommended actions a, b, c, d, and e: FY 2025 Budget Resolutions and Annual Appropriations Limit
Recommended actions a, b, c, d, and e will adopt the budget for Fiscal Year 2025 for each of the City’s authorities and approve the annual appropriations limit calculation. The total expenditures for all Governmental, Proprietary, and Agency funds in Fiscal Year 2025 is $464,099,136. The City’s appropriations subject to the limit, based on the annual appropriations limit (a.k.a. Gann Limit) are $192,701,927. With an appropriations limit of $733,929,415, the City of Corona’s proposed expenditure budget is $269,830,279 under the appropriations limit. Approval of the resolutions will not result in any additional financial impacts.
Recommended actions f: Budget Adjustments for Fiscal Year 2025
The Fiscal Year 2025 financial impacts for this recommended action are shown below. There is sufficient fund balance or working capital in each of the respective funds for approval of the recommended actions. Once authorized by the City Council and the Corona Utility Authority, the items will be incorporated in the FY 2025 Adopted Budget.
|
FUND |
APPROPRIATION |
OFFSETTING REVENUE |
NET IMPACT TOTAL |
|
General Fund (110) |
510,863 |
- |
510,863 |
|
Measure X Fund (120) |
52,241 |
- |
52,241 |
|
County Service Area 152 (NPDES) Fund (245) |
7 |
- |
7 |
|
Residential Refuse/Recycling Fund (260) |
2 |
- |
2 |
|
Low Moderate Income Housing Asset Fund (291) |
2 |
- |
2 |
|
CFD 97-2 (Eagle Glen I) Fund (371) |
1,400 |
- |
1,400 |
|
AD 96-1, 99 A (Centex) Fund (373) |
1,700 |
- |
1,700 |
|
CFD 2000-1 (Eagle Glen II) Fund (374) |
1,400 |
- |
1,400 |
|
CFD 2001-2 (Cresta-Grande) Fund (377) |
1,400 |
- |
1,400 |
|
CFD 2002-1 (Dos Lagos) Fund (378) |
1,400 |
- |
1,400 |
|
CFD 2002-4 (Corona Crossings) Fund (381) |
1,400 |
- |
1,400 |
|
CFD 2004-1 (Buchanan Street) Fund (382) |
1,400 |
- |
1,400 |
|
CFD 2003-2 (Highlands Collection) Fund (383) |
1,400 |
- |
1,400 |
|
CFD 2018-1 Bedford Fund (384) |
2,800 |
- |
2,800 |
|
CFD 2018-2 Sierra Bella Debt Service Fund (386) |
1,400 |
- |
1,400 |
|
CFD 2002-1 (Improvement Area) Fund (387) |
1,400 |
- |
1,400 |
|
CFD 2016-2 (Terrassa Special Tax A) Fund (390) |
1,400 |
- |
1,400 |
|
CFD 2017-2 (Valencia Special Tax A) Fund (392) |
1,400 |
- |
1,400 |
|
RDA Successor Agency Fund (417) |
3,400 |
- |
3,400 |
|
Community Development Block Grant (CDBG) Fund (431) |
1 |
- |
1 |
|
LMD 84-2, Zone 20 Fund (470) |
245,370 |
- |
245,370 |
|
Successor Agency Administration Fund (475) |
1 |
- |
1 |
|
Water Capacity Fund (507) |
574 |
- |
574 |
|
Reclaimed Water Utility Fund (567) |
225,203 |
- |
225,203 |
|
Water Utility Fund (570) |
735 |
- |
735 |
|
Sewer Utility Fund (572) |
1,163 |
- |
1,163 |
|
Direct Access Electric Utility Fund (576) |
10 |
- |
10 |
|
Transit Services Fund (577) |
6 |
- |
6 |
|
Greenfield Electric Utility Fund (578) |
16 |
- |
16 |
|
Warehouse Services Fund (680) |
2 |
- |
2 |
|
Information Technology Fund (681) |
40 |
- |
40 |
|
Fleet Operations Fund (682) |
13 |
|
13 |
|
Total |
1,059,549 |
- |
1,059,549 |
Recommended actions g: Contract amendments, change orders, and purchase orders for Fiscal Year 2025
The budget for this recommended action is already included in the FY 2025 Proposed Budget. No additional financial impact is associated with this recommended action.
Recommended actions h: Budget Adjustments for Fiscal Year 2024
The Fiscal Year 2024 financial impacts for this recommended action are shown below. Each of the respective funds has sufficient fund balance or working capital to approve the recommended action.
|
FUND |
APPROPRIATION |
OFFSETTING REVENUE |
NET IMPACT TOTAL |
|
Measure X Fund (120) |
100,000 |
- |
100,000 |
|
Direct Access Electric Utility Fund (576) |
(134,240) |
- |
(134,240) |
|
Total |
(34,240) |
- |
(34,240) |
Recommended actions i: Contract amendments, change orders, and purchase orders for Fiscal Year 2024
No additional financial impact is associated with this recommended action.
Recommended actions j: City of Corona Position Library and Compensation Plan
No additional financial impact is associated with this recommended action.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action adopts the City’s FY 2025 budget, and makes other budgetary and contract amendments, and there is no possibility that approval of the report 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 - Fiscal Year 2025 Proposed Budget
2. Exhibit 2 - Fiscal Year 2025 - 2034 Proposed Capital Improvement Plan
3. Exhibit 3 - Resolution 2024-027, City Council Budget Resolution for Fiscal Year 2025
4. Exhibit 4 - Resolution 2024-028, Corona Utility Authority Budget Resolution for Fiscal Year 2025
5. Exhibit 5 - Resolution 2024-029, Corona Public Financing Authority Budget Resolution for Fiscal Year 2025
6. Exhibit 6 - Resolution 2024-030, Corona Housing Authority Budget Resolution for Fiscal Year 2025
7. Exhibit 7 - Resolution 2024-031, Annual Appropriations Limit for Fiscal Year 2025
8. Exhibit 8 - Fiscal Year 2025 IT Renewal Items
9. Exhibit 9 - Infosend, Inc. - Sixth Amendment to Professional Services Agreement
10. Exhibit 10 - Alexander’s Contract Services, Inc. - Fifth Amendment to Professional Services Agreement
11. Exhibit 11 - Graffiti Protective Coatings, Inc. - Fourth Amendment to Maintenance/General Services Agreement
12. Exhibit 12 - Roadsafe Traffic Systems, Inc - First Amendment to Maintenance/General Services Agreement
13. Exhibit 13 - Resolution No. 2024-068 Position Library and Compensation Plan
14. Exhibit 14 - Position Library and Compensation Plan - Clean
15. Exhibit 15 - Position Library and Compensation Plan - Redline