HomeMy WebLinkAboutFiscal Year 2013/14 General Fund Year-End Budget AdjustmentsL_ ,9-FF;
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Dept. ID FN 15-001 Page 1 of 2
Meeting Date: 1/20/2015
CITY OF HUNTINGTON BEACH
REQUEST FOR. CITY COUNCIL ACTION
1. MEETING DATE: 1/20/2015
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Lori Ann Farrell, Director of Finance
SUBJECT: Fiscal Year 2013/14 General Fund Year -End Budget Adjustments for
Infrastructure
Statement of Issue:
The Finance Department is currently undergoing the year-end closing process for Fiscal Year
2013/14, which began on October 1, 2013, and ended on September 30, 2014. City Council
authorization is requested to perform year-end fund transfers and technical adjustments for Fiscal
Year 2013/14, subject to final certification by the City's independent, external auditors to meet legal,
policy, accounting or other requirements. There are sufficient revenues, available cash, and/or fund
balances to support these adjustments.
Financial Impact:
This action will result in the transfer of $2,000,000 from the General Fund into the Infrastructure
Fund to help the City meet the 15% City Charter requirement related to infrastructure spending and
to fund critical infrastructure improvements including: 1)The rehabilitation of the City -owned Main
Promenade Parking Structure ($1,500,000); and, 2) Phase 1 park improvements at Worthy Park
($500,000).
Recommended Action:
A) Approve the appropriation and transfer of $2,000,000 in the Fiscal Year 2013/14 Revised
Budget from the General Fund (Fund 100) to the Infrastructure Fund (Fund 314) as
indicated in Attachment 1; and,
B) Approve the expenditure of $2,000,000 in the Infrastructure Fund (Fund 314) in the Fiscal
Year 2014/15 Revised Budget as indicated in Attachment 1.
Alternative Action(s):
Do not approve the recommended actions and direct staff accordingly.
Analysis:
Section 617 (b) of the City Charter requires that the City spend 15 percent of General Fund revenue
on infrastructure, based on a five-year rolling average. To ensure compliance with this requirement,
the City must ensure that past, present and forthcoming spending on capital projects and
infrastructure will meet this test. In addition, after the State's abolishment of redevelopment and the
Great Recession, few funding sources remain to remove blight and/or improve the City's
infrastructure and capital assets apart from the City's separate Infrastructure Fund.
HB -21- Item 2. - I
Dept. ID FN 15-001 Page 2 of 2
Meeting Date: 1/20/2015
Main Promenade Parking Structure
City Council authorization is requested to transfer $2,000,000 from the General Fund (Fund 100) to
the Infrastructure Fund (Fund 314) from unanticipated one-time revenue received in FY 2013/14.
As these funds are one-time in nature, it is appropriate for these funds to be allocated to one-time
needs, such as capital projects. Hence, $1.5 million is recommended to fund critically needed
repairs and improvements to the City -owned Main Promenade Parking Structure. The 825-space
Structure is the largest parking structure serving the Downtown area. Built over 25 years ago, the
Structure is in need of a condition assessment to help maximize its useful life and prevent costly,
yet preventable repairs. To facilitate this, the City has contracted with Walker Parking Consultants
to perform a thorough evaluation of the Structure. The purpose of this evaluation is to identify and
evaluate deteriorating conditions and needed repairs, with a goal of setting forth an ongoing
maintenance plan and parking operations plan. Based on a preliminary walk-through of the
Structure, initial repairs and improvements are estimated to be up to $1.5 million.
The evaluation itself, which will be funded through the Downtown In -Lieu Parking Fund, is a highly
technical assessment that will review the history of the Structure, original construction and repair
drawings, specifications, manuals, warranties, incident reports, and maintenance logs. The
consultants will perform a field survey to evaluate current conditions in the parking structure and
establish a baseline for the repair and maintenance recommendations. The field survey will
document noticeable distress such as cracks, leaks, spalls, scaling, joint deterioration, expansion
joints, metal railings and light pole degradation, and other similar adverse conditions. In addition to
documenting the nature of noticeable adverse conditions, a thorough assessment of the electrical
systems, operational elements (stairs, elevators, parking control gates, etc.), waterproofing
elements, and concrete materials testing, among other necessary tests, will be performed.
The evaluation will include the Consultant's findings, conclusions, and prioritized list of
recommendations for repairing, maintaining and enhancing the parking structure. Finally, the
Consultant will design a Ten -Year Conceptual Maintenance/Repair Implementation Schedule. This
ten-year schedule can serve as a planning and budgeting tool for current and future
repair/maintenance activities for the parking facility to ensure ongoing maintenance.
Park Master Plan Proiects
At the January 31, 2014, City Council Strategic Planning retreat, the City Council developed an
Objective under the "Enhance Quality of Life" Goal, to complete the Park Master Plan. Included in
the review of the plan are improvements to Worthy Park, Bartlett Park, acquisition of the LeBard
School site, and the identification of outside funding to acquire park space near the Bolsa Chica
Wetlands. As a result, it is recommended that the remaining $500,000 of unanticipated one-time
funds received by the General Fund be transferred into the Infrastructure Fund to provide additional
funding for Phase I park improvements for Worthy Park. This funding can be used in conjunction
with the Park Acquisition and Development funds identified within the CIP to complete
improvements to the tournament Pickle Ball courts, replacement of outdated tot lot equipment and
the construction of a new picnic shelter area.
Environmental Status: Not Applicable.
Strategic Plan Goal:
Enhance and Maintain Public Safety.
Improve Long Term Financial Sustainability.
Improve the City's Infrastructure.
Enhance Quality of Life.
Attachment:
1. Fiscal Year 2013/2014 and FY 2014/15 Budget Adjustments - Infrastructure.
Item 2. - 2 HB -212-
ATTACHMENT 1
FY 2013/14 and FY 2014/15 Budget Adjustments - Infrastructure
m `1:1XI wall III :
Appropriation
Fund No. Fund Name and Transfer -Out Department
100 General Fund $ 2,000,000 Non -Departmental
INFRASTRUCTURE FUND
Appropriation
Fund No. Fund Name and Transfer -In Department
314 Infrastructure Fund $ 1,500,000 Public Works: Parking Improvements
314 Infrastructure Fund $ 500,000 Non-Departmental/CIP Park Improvements
$ 2,000,000
HB -23- Item 2. - 3