HomeMy WebLinkAbout2003 Unbudgeted Expenditures - 06/16/2003 - Instructional Re i
Council/Agency Meeting Held�19�� \� la(�
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied City Clerk's Signature
Council Meeting Date: November 17, 20037 Department ID Number: CA-03
CITY OF HUNTINGTON BEACH `
REQUEST FOR COUNCIL ACTION
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SUBMITTED TO: HONORABLE MAY05-,AND CITY COUNCIL MEMBERS o ,r='-,
SUBMITTED BY: JENNIFER McGRAT �, i Attorney
PREPARED BY: JENNIFER McGRAT1@%i Attorney
SUBJECT: Approve Amendment of City Budget to Increase City AttorneA CRice
Attorney Fees Professional Services Account
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: Whether to approve the amendment of City budget to increase City
Attorney's Office Attorney Fees Professional Services,Account;
Funding Source: Name of Fund: General Fund
Account Description: Unreserved/Undesignated
Dollar Amount: $10,000
Recommended Action:
Approve and authorize the Director of Administrative Services to appropriate $10,000 from
the General Fund Balance to the City Attorney's Office Attorney Fees Professional Services
Account no. 10015101.69375.
Alternative Action(s): Do not approve the amendment of City budget to increase City
Attorney's Office Attorney Fees Professional Services-Acco-unt,
/nJ CYO Llq7J i UO A-)o
600,
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REQUEST FOR COUNCIL ACTION
MEETING DATE: November 17, 2003 DEPARTMENT ID NUMBER: CA-03
Analysis: On October 6, 2003, Council requested the City Attorney to retain
independent counsel for preparation of an inquiry to the Attorney General's.Office regarding
implementation of.the decision in Howard Jarvis Taxpayer's Association v. City of Huntington
Beach in light of a potential legal challenge to the retirement property tax levy for 2003/04.
Due to this fiscal year's budget reduction of$450,000 from the City Attorney's Office Attorney
Fees Professional Services Account, additional funds for outside attorney services must be
appropriated when outside counsel is requested by the City Council. This office seeks a
budget appropriation of$10,000 to obtain the services of outside counsel.
The City Attorney's Office has selected the law firm of Colantuono, Levin & Rozell. A
proposed legal services agreement is attached as Attachment No. 1.
Environmental Status: Not applicable.
Attachment(s):
City Clerk's
Number No. Description
-
' Agreement with.. Colantuono, Levin, & Rozell for. consulting legal
services;
2 Fiscal Impact Statement
RCA Author: JMP/jg
GAGIGUERE\RCA.doc -2- 10/27/2003 4:06 PM
ATTACHMENT # 1
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
COLANTUONO, LEVIN & ROZELL, APC FOR
CONSULTING LEGAL SERVICES
THIS AGREEMENT ("Agreement") is made and entered into this
day of 2003, by and between the City of Huntington
Beach, a municipal corporation of the State of California, hereinafter referred to as
"CITY, and COLANTUONO, LEVIN & ROZELL, a professional corporation,
hereinafter referred to as "CONSULTANT."
WHEREAS, CITY desires to obtain consulting legal services regarding
preparation of a request to the Attorney Generals Office regarding implementation
of the decision in Howard Jarvis Taxpayer's Association v. City of Huntington
Beach:
Pursuant to documentation on file in the office of the City Clerk, the
provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating. to
procurement of professional service contracts have been complied with; and
CONSULTANT has been selected to perform these services,
NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows:
1. SCOPE OF SERVICES
CONSULTANT shall provide all services as described in Exhibit
"A," which is attached hereto and incorporated into this Agreement by this
reference. These services shall sometimes hereinafter be referred to as the
"PROJECT."
03agree/colantuono/10/23/03 1
f
CONSULTANT hereby designates Michael G. Colantuono who shall
represent it and be its sole contact and agent in all consultations with CITY during
..the performance of this Agreement.
2. CITY STAFF ASSISTANCE
CITY shall assign a staff coordinator to work directly with
CONSULTANT in the performance of this Agreement.
3. TERM, TIME OF PERFORMANCE
Time is of the essence of this Agreement. The services of
CONSULTANT are to commence as soon as practicable after the execution of this
Agreement by CITY (the "Commencement Date"). This Agreement shall expire
when terminated as provided herein. All tasks specified in Exhibit "A" shall be
completed in a timely and professional manner.
4. COMPENSATION
In consideration of the performance of the services described herein,
CITY agrees to pay CONSULTANT on a time and materials basis at the rates
specified in Exhibit "B" attached hereto and incorporated herein.
5. EXTRA WORK
In the event CITY requires additional services not included in Exhibit
"A or changes in the scope of services described in Exhibit "A," CONSULTANT
will undertake such work only after receiving written authorization from CITY.
Additional compensation for such extra work shall be allowed only if the prior
written approval of CITY is obtained.
03agree/colantuono/l0/23r03 2
6. METHOD OF PAYMENT
CONSULTANT shall be paid pursuant to the terms of Exhibit "B,"
which is attached hereto.and incorporated by reference into.this.Agreement.
7. 'DISPOSITION OF PLANS, ESTIMATES AND OTHER
DOCUMENTS
CONSULTANT agrees that title to all materials prepared hereunder,
including, without limitation, all original drawings, designs, reports, both field and
office notices, calculations, computer code, language, data or programs, maps,
memoranda, letters and other documents, shall belong to CITY, and
CONSULTANT shall turn these materials over to CITY upon expiration or
termination of this Agreement or upon PROJECT completion, whichever shall
occur first: These materials may be used, by CITY as it sees fit.
8. HOLD HARMLESS
CONSULTANT hereby agrees to protect, defend, indemnify and hold
harmless CITY, its officers, elected or appointed officials, employees, agents and
volunteers from and against any and all claims, damages, losses, expenses, judgments,
demands and defense costs (including, without limitation, costs and fees of litigation of
every nature or liability of any kind or nature) arising out of or in connection with
CONSULTANT's (or CONSULTANT's subcontractors, if any) negligent performance of
this Agreement or its failure to comply with any of its obligations contained in this
Agreement by CONSULTANT, its officers, agents or employees except such loss or
damage which was caused by the sole negligence or willful misconduct of CITY.
CONSULTANT will conduct all defense at its sole cost and expense and CITY shall
approve selection of CONSULTANT's counsel. This indemnity shall apply to all claims
03agree/colantuono/10/23/03 3
and liability regardless of whether any insurance policies are applicable. The policy limits
do not act as limitation upon the amount of indemnification to be provided by
CONSULTANT.
9. PROFESSIONAL LIABILITY INSURANCE
CONSULTANT shall obtain and furnish to CITY a professional
liability insurance policy covering the work performed by it hereunder. This policy
shall provide coverage for CONSULTANT's professional liability in an amount not
less than One Million Dollars ($1,000,000.00) per occurrence and in the
aggregate. The above-mentioned insurance shall not contain a self-insured
retention, "deductible" or any other similar form of limitation on the required
coverage except with the express written consent of CITY. A claims-made policy
shall be acceptable if the policy further.provides that:
A. The policy retroactive date coincides with or precedes the
initiation of the scope of work (including subsequent policies
purchased as renewals or replacements).
B. CONSULTANT shall notify CITY of circumstances or incidents
that might give rise to future claims.
CONSULTANT will make every effort to maintain similar insurance
during the required extended period of coverage following PROJECT completion.
If insurance is terminated for any reason, CONSULTANT agrees to purchase an
extended reporting provision of at least two (2) years to report claims arising from
work performed in connection with this Agreement.
03agree/colantuono/10/23.03 4
10. CERTIFICATE OF INSURANCE
Prior to commencing performance of the work hereunder,
CONSULTANT shall furnish to CITY a certificate of insurance subject to approval
of the City Attorney evidencing the foregoing insurance coverage as required by
this Agreement; the certificate shall:
A. provide the name and policy number of each carrier and
policy;
B. shall state that the policy is currently in force; and
C. shall promise that such policy shall not be suspended, voided
or canceled by either party, reduced in coverage or in limits
except after thirty (30) days' prior written notice; however, ten
(10) days' prior written notice in the event of cancellation for
nonpayment of premium.
CONSULTANT shall maintain the foregoing insurance coverage in
force until the work under this Agreement is fully completed and accepted by
CITY.
The requirement for carrying the foregoing insurance coverage shall
not derogate from CONSULTANT's defense, hold .harmless and indemnification
obligations as set forth in this Agreement. CITY or its representative shall at all
times have the right to demand the original or a copy of the policy of insurance.
CONSULTANT shall pay, in a prompt and timely manner, the premiums on the
insurance hereinabove required.
03agree/colantuono/10/23/03 5
11. INDEPENDENT CONTRACTOR
CONSULTANT is, and shall be, acting at all times in the
performance of this Agreement as an independent contractor herein and not as an
employee of CITY. CONSULTANT shall secure at its own cost and expense, and
be responsible for any and all payment of all taxes, social security, state disability
insurance compensation, unemployment compensation and other payroll
deductions for CONSULTANT and its officers, agents and employees and all
business licenses, if any, in connection with the PROJECT and/or the services to
be performed hereunder.
12. TERMINATION OF AGREEMENT
All work required hereunder shall be performed in a good and
workmanlike manner. CITY may terminate CONSULTANT'S services hereunder at,
any time with or without cause, and whether or not the PROJECT is fully complete_
Any termination of this Agreement by CITY shall be made in writing, notice of
which shall be delivered to CONSULTANT as provided herein. In the event of
termination, all finished and unfinished documents, exhibits, report, and evidence
shall, at the option of CITY, become its property and shall be promptly delivered to
it by CONSULTANT.
13. ASSIGNMENT AND DELEGATION
This Agreement is a personal service contract and the work
hereunder shall not be assigned, delegated or subcontracted by CONSULTANT to
any other person or entity without the prior express written consent of CITY. If an
assignment, delegation or subcontract is approved, all approved assignees,
03asreekolantuono/10/23/03 6
delegates and subconsultants must satisfy the insurance requirements as set forth
in Sections 9 and 10 hereinabove.
14.. COPYRIGHTS/PATENTS .
CITY shall`own all rights to any patent or copyright on any work, item
or material produced as a result of this Agreement.
15. CITY EMPLOYEES AND OFFICIALS
CONSULTANT shall employ no CITY official nor any regular CITY
employee in the work performed pursuant to this Agreement. No officer or
employee of CITY shall have any financial interest in this Agreement in violation of
the applicable provisions of the Califomia Govemment Code.
16. NOTICES
Any.hotices, certificates, or other communications hereunder shall.be
given either by personal delivery to CONSULTANT's agent (as designated in
Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing
the same in a sealed envelope, postage prepaid, and depositing the same in the
United States Postal Service, to the addresses specified below. CITY and
CONSULTANT may designate different addresses to which subsequent notices,
certificates or other communications will be sent by notifying the other party via
personal delivery, a reputable overnight carrier or U. S. certified mail-return receipt
requested:
TO CITY: TO CONSULTANT:
Office of City Attorney Michael G. Colantuono, Esq.
City of Huntington Beach Colantuono, Levin & Rozell
2000 Main Street 555 West 5th Street, 30th Floor
Huntington Beach, CA 92648 Los Angeles, CA 90013
03agree/colantuono/10/23/03 7
17. CONSENT
When CITY's consent/approval is required under this Agreement, its
consent/approval for one transaction or event shall not be deemed to,: be a
consent/approval" to any subsequent occurrence of the same or any other
transaction or event.
18. MODIFICATION
No waiver or modification of any language in this Agreement shall be
valid unless in writing and duly executed by both parties.
19. SECTION HEADINGS
The titles, captions, section, paragraph and subject headings, and
descriptive phrases at the beginning of the various sections in this Agreement are
merely descriptive and are .included solely .for convenience of reference only and
are not representative of matters included or excluded from such provisions, and
do not interpret, define, limit or describe, or construe the intent of the parties or
affect the construction or interpretation of any provision of this Agreement.
20. INTERPRETATION OF THIS AGREEMENT
The language of all parts of this Agreement shall in all cases be
construed as a whole, according to its fair meaning, and not strictly for or against
any of the parties. If any provision of this Agreement is held by an arbitrator or
court of competent jurisdiction to be unenforceable, void, illegal or invalid, such
holding shall not invalidate or affect the remaining covenants and provisions of this
Agreement. No covenant or provision shall be deemed dependent upon any other
unless so expressly provided here. As used in this Agreement, the masculine or
neuter gender and singular or plural number shall be deemed to include the other
03asreekolantuono/10/23/03 8
r
whenever the context so indicates or requires. Nothing contained herein shall be
construed so as to require the commission of any act contrary to law, and
wherever there is .any conflict between any provision contained herein and any
present or future statute, law, ordinance or regulation contrary to which the parties
have no right to contract, then the latter shall prevail, and the provision of this
Agreement which is hereby affected shall be curtailed and limited only to the
extent necessary to bring it within the requirements of the law.
21. DUPLICATE ORIGINAL
The original of this Agreement and one or more copies hereto have
been prepared and signed in counterparts as duplicate originals, each of which so
executed shall, irrespective of the date of its execution and delivery, be deemed
an original. Each duplicate original. shall be deemed an original instrument as
against any party who has signed it.
22. IMMIGRATION
CONSULTANT shall be responsible for full compliance with the
immigration and naturalization laws of the United States and shall, in particular,
comply with the provisions of the United States Code regarding employment
verification.
23. LEGAL SERVICES SUBCONTRACTING PROHIBITED
CONSULTANT and CITY agree that CITY is not liable for payment of
any subcontractor work involving legal services, and that such legal services are
expressly outside the scope of services contemplated hereunder. CONSULTANT
understands that pursuant to Huntington Beach City Charter Section 309, the City
03agree/colantuono/10/23/03 9
d
Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for
payment of any legal services expenses incurred by CONSULTANT.
24. ATTORNEY'S FEES
In the event suit is brought by either party to construe, interpret
and/or enforce the terms and/or provisions of this Agreement or to secure the
performance hereof, each party shall bear its own attorney's fees, such that the
prevailing party shall not be entitled to recover its attorney's fees from the non-
prevailing party.
25. SURVIVAL
Terms and conditions of this Agreement, which by their sense and
context survive the expiration or termination of this Agreement, shall so survive.
26. GOVERNING LAW
This Agreement shall be governed and construed in accordance with
the laws of the State of California.
27. ENTIRETY
The parties acknowledge and agree that they are entering into this
Agreement freely and voluntarily following extensive arm's length negotiation, and
that each has had the opportunity to consult with legal counsel prior to executing
this Agreement. The parties also acknowledge and agree that no representations,
inducements, promises, agreements or warranties, oral or otherwise, have been
made by that party or anyone acting on that party's behalf, which are not
embodied in this Agreement, and that that party has not executed this Agreement
in reliance on any representation, inducement, promise, agreement, warranty, fact
or circumstance not expressly set forth in this Agreement. This Agreement, and
03amekolantuono/10/23/03 10
the attached exhibits, contain the entire agreement between the parties respecting
the subject matter of this Agreement, and supercede all prior understandings and
agreements whether oral or in writing between the parties respecting the subject
matter hereof.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed by and through their authorized offices the day, month and year
first above written.
COLANTUONO, LEVIN & ROZELL, CITY OF HUNTINGTON BEACH,
APC. a municipal corporation of the State of
California
By:
-
print name ID/�qlo3 City Attorn h 1.g�o3
ITS: (circle one)Chairman/pAiEE ice President (Pursuant To HBMC§3.03.100)
AND
APPROVED AS TO FORM:
By: AW-�
_ 4��==4 M
ID City Attor y /it I 03
print name
ITS: (circle one) ecreta Chief Financial
Officer/Asst. Secretary- reasurer REVIEWED AND APPROVED:
A--
City Administrator
(only for contracts over$50,000.00)
03aaree/colantuono/10/23/03 11
{
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
COLANTUONO, LEVIN & ROZELL, APC FOR
CONSULTING LEGAL SERVICES
Table of Contents
1 Scope of Services.................................................................................................... 1
2 City Staff Assistance...............................................................................................2
3 Term; Time of Performance....................................................................................2
4 Compensation..........................................................................................................2
5 Extra Work..............................................................................................................2
6 Method of Payment.................................................................................................3
7 Disposition of Plans, Estimates and Other Documents...........................................3
8 Hold Harmless.........................................................................................................3
9 Professional Liability Insurance.............................................................................4
10 Certificate of Insurance...........................................................................................5
11 Independent Contractor...........................................................................................6
12 Termination of Agreement......................................................................................6
13 Assignment and Delegation .....................................................................................6
14 Copyrights/Patents ..................................................................................................7
15 City Employees and Officials .................................................................................7
16 Notices..........................................................................
17 Consent.......................................:.............................................................................8
18 Modification............................................................................................................8
19 Section Headings.....................................................................................................8
20 Interpretation of this Agreement.............................................................................8
21 Duplicate Original...................................................................................................9
22 Immigration..............................................................................................................9
23 Legal Services Subcontracting Prohibited ...............................................................9
24 Attorney's Fees......................................................................................................... 10
25 Survival .................................................................................................................... 10
26 Governing Law......................................................................................................... 10
27 Entirety..................................................................................................................... 10
EXHIBIT #A ji
EXHIBIT "A"
A. STATEMENT OF WORK: (Narrative of work to be performed)
Consultant shall provide,legal services regarding preparation of a request to the Attorney
General's Office regarding implementation of the decision in Howard Jarvis Taxpayer's
Association v. City of Huntington Beach.
B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: NA
C. CITY'S DUTIES AND RESPONSIBILITIES: N/A
D. WORK PROGRAM/PROJECT SCHEDULE: N/A
EXHIBIT #B
( t
EXHIBIT "B"
A. Hourly Rate
CONSULTANT'S fees for such services shall be based upon the following hourly rate and cost.
schedule:
$225 hr. Attorney Fees
$100 -$125 hr. Paralegals and legal assistants
B. Travel
1. Charges for time during travel are normally not reimbursable and will only be paid if
such time is actually used in performing services for CITY or as otherwise arranged
with CITY.
2. As CITY sometimes uses consultants that are outside of the nearest metropolitan
area, CITY is very conscious of travel costs. Subject to agreement otherwise,
CONSULTANT will be held to charging no fees on travel time to or from Huntington
Beach.
3. Automobile expenses are limited to Twenty-seven Cents ($0.27) per mile. All other
travel expenses must be approved in advance by CITY in writing. Requests for
approval, shall be submitted at .least fourteen (14) days in advance, to allow for
reduced transportation fares. Meals are not billable to CITY, without prior written
consent of CITY.
C. Billing
1. All billing shall be done monthly in one-tenth-hour (0.10) increments and matched to
an appropriate breakdown of the time that was taken to perform that work and who
performed it.
Minimum billing charges are unacceptable. CONSULTANT shall only charge for
actual time spent. For example, minimum of 0.2 hours for phone calls or 0.4 hours for
letters is unreasonable unless that is an accurate measure of time spent.
2. Each month's bill should include a total.to date. That total should provide, at a glance,
the total fees and costs incurred to date for the case or matter.
3. Telephone, cellular phone and postage charges are billable at actual cost. A copy of
all service bills/costs should accompany the billing for each single item that exceeds
Seventy-Five Dollars ($75.00). The fee for the sending or receiving of facsimiles shall
not exceed Twenty-five Cents ($0.25) per page. CITY will not pay a fee or charge for
telephone calls or facsimiles to CITY. Photocopier costs should be no more than the
actual cost of duplication, or Ten Cents ($0.10) per page, whichever is less.
4. CITY will not pay for secretarial time or secretarial overtime. CITY will not pay for
secretarial tasks or tasks that should be subsumed into CONSULTANT's overhead.
For example, time spent for faxing, mailing, arranging for messengers and
calendaring are not acceptable charges.
r
5. CITY will not pay for word processing charges. This includes per page or hourly
charges.
6. CITY will not pay for billing or discussion of bills. If CITY has questions about billing
or needs additional information on bills, that is not a chargeable event; CONSULTANT
should respond without charging CITY for the time required.
7. CITY appreciates when CONSULTANT has researched an issue previously and uses
that research on the present case. CITY has retained CONSULTANT because of its
past experience. CONSULTANT shall not charge CITY for work it has done and
billed another client for in the past.
8. Delivery of work product: A copy of every memorandum, letter, report, calculation and
other documentation prepared by CONSULTANT shall be submitted to CITY to
demonstrate progress toward completion of tasks. In the event CITY rejects or has
comments on any such product, CITY shall identify specific requirements for
satisfactory completion.
9. CONSULTANT shall submit to CITY an invoice for each monthly payment due. Such
invoice shall:
A) Reference this Agreement;
B) Describe the services performed;
C) Show the total amount of the payment due;
D) Include a certification by a principal member of CONSULTANT's firm that the -
work has been performed in accordance with the provisions of this
Agreement; and
E) For all payments include an estimate of the percentage of work completed.
Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is
making satisfactory progress toward completion of tasks in accordance with this
Agreement, CITY shall approve the invoice, in which event payment shall be made
within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be
unreasonably withheld. If CITY does not approve an invoice, CITY shall notify
CONSULTANT in writing of the reasons for non-approval and the schedule of
performance set forth in Exhibit"A" may at the option of CITY be suspended until the
parties agree that past performance by CONSULTANT is in, or has been brought into
compliance, or until this Agreement has expired or is terminated as provided herein.
10. Any billings for extra work or additional services authorized in advance and in writing
by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the
information required above, and in addition shall list the hours expended and hourly
rate charged for such time. Such invoices shall be approved by CITY if the work
performed is in accordance with the extra work or additional services requested, and if
CITY is satisfied that the statement of hours worked and costs incurred is accurate.
Such approval shall not be unreasonably withheld. Any dispute between the parties
concerning payment of such an invoice shall be treated as separate and apart from
the ongoing performance of the remainder of this Agreement.
CITY OF HUNTINGTON BEACH _
MEETING DATE: AUGUST 4, 2003 DEPARTMENT ID NUMBER: AS-03-031 �
Council/Agency Meeting Held: 0_3
Deferred/Continued to: �
/kA/pproved ❑ Conditionally Approved ❑ Denied City Clerk's Signature
Council Meeting Date: AUGUST 4, 2003 Department ID Number: AS-03-03,
L
CITY OF HUNTINGTON BEACH
REQUEST FOR ACTION ,,> 17
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: RAY SILVER, CITY ADMINISTRATOR
;v r>
PREPARED BY: CLAY MARTIN, DIRECTOR OF ADMINISTRATIVE SERVICES
SUBJECT: APPROVE APPROPRIATION FOR STOP LOSS INSURANCE
RENEWAL AND SUPPLEMENTAL RETIREMENT PAYMENTS
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue:
Should the City Council approve an additional appropriation for the July 1, 2003 stop loss
insurance renewal and supplemental retirement payments?
Funding Source:
General Fund Unreserved Fund Balance in the amount of $345,000 and Supplemental
Retirement Unreserved Fund Balance in the amount of$500,000.
Recommended Action:
Approve appropriation of $345,000 to Self Insurance Medical Fund from General Fund
unreserved fund balance for stop loss insurance renewal and increase supplemental
retirement payments from Supplemental Retirement Unreserved Fund Balance in the
amount of$500,000.
Alternative Action(s):
Do not approve appropriation for stop loss insurance and supplemental retirement
payments.
q T�
HARCA's\Medical Insurance2.dot r2- 7/2112003\\2:20 PM
REQUEST FOR ACTION
MEETING DATE: AUGUST 4, 2003 DEPARTMENT ID NUMBER: AS-03-031
Analysis:
Administrative Services is requesting increased appropriations for the Self Insurance
Medical fund for stop loss insurance and the Supplemental Retirement fund.
Stop Loss Insurance — The July 1, 2003 renewal for the City's stop loss
insurance policy has come in at a 137% increase ($90,000/month) over
the 2002 rate ($38,000/month). The FY 02/03 budget, proposed in August
2001, anticipated a 10% increase over the 2002 rate.
Supplemental Retirement — To account for the large number of
retirements in 2002 and early 2003 and to comply with Federal and State
law regarding retirement benefits it is necessary to increase the
appropriation for supplemental retirement payments.
Council Policy Regarding Requests for an Appropriation of Funds:
As adopted by the City Council in March 1998, all requests for appropriation of funds must
meet one of the following criteria: 1) The request is an unanticipated emergency, 2) The
request is required to implement labor negotiations, or 3) The request will be'offset by
related new revenues.
The new appropriation being requested is an unanticipated emergency appropriation of
funds.
Attachment(s):
NumberCity Clerk's
Page . Description
1. Fiscal Impact Statement
RCA Author: William McReynolds
K\RCA's\Medical Insurance2.dot ,2! 7/21/2003 2:20 PM
ATTACHMENT # 1
CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICA TION
To: Ray Silver, City Administrator
From: Clay Martin, Director Of Administrative Services
Subject: FIS 2003-28 Approve Appropriation for Stop Loss Insurance
Renewal and Supplemental Retirement Payments
Date: July 22, 2003
As required by Resolution 4832, this Fiscal Impact Statement has
been prepared for "Approve Appropriation for Stop Loss Insurance
Renewal and Supplemental Retirement Payments."
If the City Council approves this request (total appropriation $845,000
of which $345,000 comes from the General Fund and $500,000
comes from the Retirement Supplement Fund), the estimated,
unreserved, undesignated fund balances will be reduced as follows:
Fund Reduced to
General $2,732,000
Retirement Supplement $9,050,000
J
Clay Marti
Direct of Administrative Services
RCA ROUTING SHEET
INITIATING DEPARTMENT: ADMINISTRATIVE SERVICES
SUBJECT: APPROVE APPROPRIATION FOR STOP LOSS
INSURANCE RENEWAL AND SUPPLEMENTAL
RETIREMENT PAYMENTS
COUNCIL MEETING DATE: August 4, 2003
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Not Applicable
Financial Impact Statement (Unbudget, over $5,000) Attached
Bonds (If applicable) Not Applicable
Staff Report (if applicable) Not Applicable
Commission, Board or Committee Report (If applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff ( ( )
Assistant City Administrator (Initial) ( ) ( )
City Administrator (Initial)
City Clerk ( )
EXPLANATION FOR RETURN OF ITEM:
(BelowOnly)
RCA Author: William McReynolds
Council/Agency Meeting Held: /b A.3
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied City Clerk's Sig tune
/ Council Meeting Date: June 16, 2003 Department ID Number: CS03-025
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION r
C= _
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: RAY SILVER, City Administrator y r'(
PREPARED BY: JIM ENGLE, Director, Community Servic s
Cn
co D
SUBJECT: APPROVE INSTRUCTIONAL CLASS BU ET AMENDMENT
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: A budget amendment is necessary due to revenues and associated
expenses for recreational classes exceeding original budget projections.
Funding Source: A transfer of $210,000 from the General Fund Unappropriated Fund
Balance into Instructional Classes-Professional Services Account #10045406.69505;
expenditures will be offset by revenue generated by instructional classes.
Recommended Action: Authorize the appropriation of $210,000 from the General Fund
Unappropriated Fund Balance into Instructional Classes-Professional Services Account
#10045406.69505 to pay recreation class instructors.
Alternative Action(s): Cancel classes and refund revenues to participants.
Analysis: The Instructional Recreational Classes program has shown consistent growth for
the past decade. In fiscal year 98/99, revenues were $699,000; in 99/00 revenues were
$754,000; in 00/01 revenues were $820,000; in 01/02 revenues were $1,230,000 and, in
02/03 revenues were originally projected to be $930,000. With the addition of classes at the
Seniors' Center and the City Gym and Pool, and upward growth at Edison and Murdy
Community Centers, revenues for instructional classes are exceeding optimistic projections
by approximately $300,000 for a total revenue of $1,230,000. This creates a budget shortfall
of $210,000 to pay instructors out of the General Fund Professional Services Account
#10045406.69505. Instructors receive seventy percent of the class revenue; city receives
thirty percent of the revenue. If the public does not sign up at the rate projected, it would not
be necessary to pay out the full amount of instructor wages and the excess funds would be
returned to the General Fund.
�i
REQUEST FOR COUNCIL ACTION
MEETING DATE: June 16, 2003 DEPARTMENT ID NUMBER: CS03-025
Council Policy regarding Requests for Appropriation of Funds: As adopted by City
Council in March, 1998, all requests for appropriation of funds must meet one of the following
criteria: (1) the request is for an unanticipated emergency, (2) the request is required to
implement labor negotiations, or (3) the request will be offset by related new revenues. The
new appropriation being requested will be offset by related new revenues from the
participation fees charged to the public for recreational classes. As noted above, the city
receives 30 percent of the revenue charged to the class; instructors are paid 70 percent of
the class fees. Expenses are projected to be $210,100 with $300,000 in new revenue.
Environmental Status: N/A
Attach ment(s):
City Clerk's
Page Number No. Description
L2.. 1 F I S C�iSc4.! .L/ �' Sa��� �J
Class Revenue and Expenses Overview by Quarter
RCA Author:
G:\RCA\2003\03-025 Instructional Classes Budget Amendment.doc -2-
6/2/2003 8:48 AM
ATTACHMENT # 111
A, iff CITY OF HUNTINGTON BEACH
IOU INTERDEPARTMENTAL COMMUNICATION
To: Ray Silver, City Administrator
From: Clay Martin, Director Of Administrative Services
Subject: FIS 2003-26 Approve Instructional Class Budget
Amendment
Date: May 30, 2003
As required by Resolution 4832, this Fiscal Impact Statement has
been prepared for "Approve Instructional Class Budget Amendment."
If the City Council approves this request (total appropriation
$210,000) there will be no effect on the estimated September 30,
2003 ending General Fund Balance because this additional
appropriation is covered by revenue not covered in the original
revenue estimates.
Clay Marti
Directo of Administrative Services
ATTACHMENT # 2
INSTRUCTIONAL CLASS SUMMARY REVENUE/INSTRUCTOR EXPENSES
Quarter Revenue Instructor 70% Pa
01-02 1" Quarter $37,072 $25,950
01-02 2° Quarter $436,042 $305,229
01-02 3 rd Quarter $389,260 $272,482
01-02 4 1h Quarter $368,333 $257,833
Quarter Revenue Instructor 70% Pa
02-03 1"Quarter $43,985 $30,789
02-03 2'd Quarter $460,253 $322,177
*02-03 3r Quarter $79,464 $55,624
02-03 4 1h Quarter
*The 3rd quarter reflects revenue through May 20, but we anticipate growth at the current
rates with the registration for summer classes to begin, starting on May 28.
The 2-year budget only allowed for$775,044 for instructor payments each year.
RCA' ROUTING SHEET
INITIATING DEPARTMENT: COMMUNITY SERVICES
SUBJECT: APPROVE INSTRUCTIONAL CLASS BUDGET _
AMENDMENT
COUNCIL MEETING DATE: June 16, 2003
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attomey) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Not Applicable
Financial Impact Statement (Unbudget, over $5,000) Attached
Bonds (If applicable) Not Applicable
Staff Report (If applicable) Not Applicable
Commission, Board or Committee Report (If applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff
Assistant City Administrator Initial
City Administrator (Initial)
City Clerk �--
EXPLANATION FOR RETURN OF ITEM:
SpaceOnly)