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HomeMy WebLinkAboutFY 2006/2007 Budget - APPROPRIATION OF SECOND TIER RESERVE F 20116 OCT 26 All 10' Council/Agency Meeting Held: Deferred/Continued to: X440a "Iill� — ApgMd L3 Conditionally Approved 0 Denied 1 Cj6rW_s af:L.nature 11 — I CP Council Meeting Date: 11/06/06 1 Departm nt ID Number: AD 06-41 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: PENELOPE CULBRETH-GRAFT, CITY ADM IN IS T R PREPARED BY: PAUL EMERY, DEPUTY CITY ADMINISTRATOR 7 SUBJECT: APPROPRIATION OF SECOND TIER RESERVE Statement of issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: During the review of the appropriation of the second tier reserve at the October 16, 2006 City Council meeting, the Council requested staff to return to the next regularly scheduled meeting with specific costs for enhanced Main Street sidewalk cleaning and Main Street Promenade Parking Structure restroorn cleaning. Funding Source: General Fund 2 nd tier reserve Recommended Action: Motion to: Direct staff on the appropriation of second tier reserve funds. Alternative Action(s): 1. Do not appropriate any additional second tier reserve funds consistent with the approved fiscal year 2006/2007 annual budget, or 2. Defer appropriation of additional second tier reserve funds until mid-year, after the City's annual financial statements have been audited and the general fund balance has been determined, or 3. Direct staff to appropriate second tier reserve funds for "one time" expenditures as determined by the City Council, or 4. Direct staff accordingly. REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 11/06/06 DEPARTMENT ID NUMBER: AD 06-41 Analysis: On October 16, 2006, the City Council reviewed opportunities for the appropriation of second tier reserve funds (Attachment 1) and approved the appropriation of $64,400 for enhancements to beach restroom cleaning. Council further directed staff to return with specific dollar amounts for the enhancement of Downtown sidewalk cleaning and Main Street Promenade Parking Structure restroom cleaning. The following discussion identifies the current service levels for each of these activities as well as the identification of an enhanced service level with the associated costs: Main Street Promenade Parking Structure Restrooms The Main Street Promenade Parking Structure restrooms, like the beach restrooms, are thoroughly cleaned daily by the beach staff working the graveyard shift. This cleaning consists of washing down the walls and floors, cleaning the toilets and sinks and restocking supplies. These restrooms are spot cleaned and restocked three times daily during the peak season and once a day in the off-season. Like the beach restrooms, the parking structure restrooms were increased to this level of service last year and funding is again included in the approved fiscal year 2006/2007 adopted budget. In order to provide a second complete cleaning mid-day throughout the year an additional $13,000 of second tier reserve funds needs to be allocated. Main Street Sidewalk Cleaning Effective fiscal year 2005/2006, the Main Street sidewalk cleaning was enhanced to steam cleaning weekly during the peak period between Memorial Day and Labor Day for the first two blocks and once monthly for blocks three and four. During the off-season the first two blocks of sidewalks are cleaned twice monthly and the third and fourth block are cleaned monthly. This enhanced level of service is included in the adopted fiscal year 2006/2007 budget. To enhance the frequency of cleaning for the first two blocks to twice weekly during the peak season and weekly during the off season and the third and fourth blocks to twice monthly year round an additional $76,000 of second tier reserve funds needs to be allocated. Currently, there is no pressure washing of the curb and gutters along the first four blocks. The City's landscape maintenance contractor performs cleaning on a weekly basis with a walk-behind vacuum. To provide pressure washing cleaning to the curbs and gutters for the first four blocks on a recommended twice monthly basis an additional $19,200 of second tier reserve funds needs to be allocated. In summary, to double the Main Street Parking Structure restroom cleaning, Main Street sidewalk cleaning and pressure wash the curbs and gutters for the first four blocks on a twice monthly basis year round an additional $108,200 of second tier reserve funds needs to be allocated. Environmental Status: N/A -2- 10/25/2006 3:32 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 11/06/06 DEPARTMENT ID NUMBER: AD 06-41 Attachment(s): NumberCity Clerk's Page . Description 1. October 16, 2006 RCA without Attachments -3- 10/25/2006 3:33 PM (8) November 6, 2006 - Council/Agency Agenda - Page 8 a Form Approved by the City Attorney — 1) Approve the project plans and specifications; and 2)Accept the lowest responsive and responsible bid submitted by All American Asphalt, in the total amount of$6,013,013.00 for the Adams Avenue, Bolsa Chica Street, and Goldenwest Street Rehabilitation Projects, Cash Contract Nos. 1279, 1280, and 1281, respectively; and 3)Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the City Attorney. Submitted by the Director of Public Works. Funding Source: Sufficient funds for this project are budgeted through Gas Tax Fund, Street Improvements, Account No. 20790008.82300. A maximum reimbursement of$2,778,715 is available through Arterial Highway Rehabilitation Program (AHRP) grant funds. The engineer's cost estimate for this construction contract was $6,469,688. The total project cost is estimated at $6,914,000, which includes supplemental expenditures, project management and inspection. Approved 7-0 E-5. (City Council) Approve the Appointments of Peter Andres, Andy Ruiz and Ann Spiratos to the Citizen Participation Advisory Board (CPAB) to Serve a Four-Year Term Expiring November 6, 2010, as Recommended by Mayor Pro Tern Gil Coerper and Councilmember Cathy Green —Appoint Peter Andres, Andy Ruiz, and Ann Spiratos to the Citizen Participation Advisory Board (CPAB) to serve a four-year term. Submitted by Mayor Pro Tern Gil Coerper and Councilmember Cathy Green, Liaisons to the Citizen Participation Advisory Board. Funding Source: Not applicable. Approved as amended by Late Communication to appoint Peter Andres and Andy Ruiz only at this time. 7-0 E-6. (City Council) Approve Agreement and Appropriate Funds in the Amount of$407,450 for Payment of General Release for Completion of Overmyer Reservoir— 1)Approve and authorize the Mayor and City Clerk to execute the Agreement for Settlement of Claims and General Release; and 2)Appropriate $407,450 from the Water Master Plan Fund balance to complete the terms of the agreement. Submitted by the City Attorney and the Director of Public Works. Funding Source: Appropriate funds in the amount of$407,450 from the Water Master Plan fund balance 507.31100 to Overmyer Reservoir, Contingency Account No. 50791007.79100. Approved 7-0 F. Administrative Items F-1. (City Council) Request for Council Direction on Appropriation of Second Tier Reserve for Enhanced Main Street Sidewalk Cleaning and Main Street Promenade Parking Structure Restroom Cleaning Communication from Paul Emery, Deputy City Administrator transmitting the following Statement of Issue: During the review of the appropriation of the second tier reserve at the October 16, 2006 City Council meeting, the Council requested staff to return to the next regularly scheduled meeting with specific costs for enhanced Main Street sidewalk cleaning and Main Street Promenade Parking Structure restroom cleaning. (9) November 6, 2006 -Council/Agency Agenda - Page 9 Funding Source: General Fund 2"d tier reserve Recommended Action: Motion to: Direct staff on the appropriation of second tier reserve funds. Deputy City Administrator Emery gave an oral report. Motion to (1) Provide a second complete cleaning mid-day throughout the year for an additional$13,000; (2) Enhance the frequency of cleaning for the first two blocks to twice weekly during the peak season and weekly during the off season and the third and fourth blocks to twice monthly year round for an additional $76,000;and(3) Provide pressure washing cleaning to the curbs and gutters for the first four blocks on a recommended twice monthly basis for an additional $19,200. Approved 7-0 F-2. (City Council) Approve and Authorize Execution of a Memorandum of Understanding (MOU)Among the Cities of Costa Mesa, Fountain Valley, Huntington Beach and the Orange County Transportation Authority (OCTA) to Amend the Master Plan of Arterial Highway Status for the Planned Garfield Avenue-Gisler Avenue Bridge Over the Santa Ana River Communication from Robert F. Beardsley, Director of Public Works transmitting the following Statement of Issue: The Orange County Transportation Authority (OCTA) has completed a process to perform preliminary engineering and supplemental environmental analyses of the potential Garfield Avenue/Gisler Avenue bridge over the Santa Ana River. OCTA is requesting that each participating agency execute a Memorandum of Understanding (MOU) to change the Garfield-Gisler bridge to a right-of-way reserve status and implement a program of improvements to offset the need for the bridge. Funding Source: Staff resources to fulfill the MOU obligations can be provided within typical duties of the Public Works Department. Projects contained within the MOU will require separate funding analysis and authorization from the City Council in future-year Capital Improvement Programs. Recommended Action: Motion to: Approve and authorize the Mayor to execute the Memorandum of Understanding among Cities of Costa Mesa, Fountain Valley and Huntington Beach and the Orange County Transportation Authority regarding Agency responsibilities for implementing the consensus recommendation for the Garfield Avenue-Gisler Avenue Bridge Crossing over the Santa Ana River. Approved 6-0-1 (Cook out of room) G. Ordinances G-1. Ordinance for Adoption ATTACHMENT # 1 RE0E-" "'E 2006 OCT-4 PPi 5: 3' r.1..Y OF Council/Agency Meeting Held: / v. I-11tJ1; T I J'%'G T 0 N 5117ACI Deferred/Continued to: KAp rov d C dition!A Approved ❑ Denied I erI ignat WiS Council Meeting Date: 10/16/2006 Department ID Number: AD 06-40 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORA LE MAYOR AND CITY4CITADMINISTRATOR IL MEMBERS P�CRW"-GRAF SUBMITTED BY: PENE , PREPARED BY: PAUL EMERY, DEPUTY CITY ADMINISTRATORIrc�1r SUBJECT: APPROPRIATION OF SECOND TIER RESERVE Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: During the public hearing for the fiscal year 2006/07 budget, the City Council requested that the appropriation of second tier reserve funds be discussed at a future meeting. Funding_Source: General Fund 2"d tier reserve Recommended Action: Motion to: Do not appropriate any additional second tier reserve funds consistent with the approved fiscal year 2006/2007 annual budget. Alternative Action(s): 1. Defer appropriation of additional second tier reserve funds until mid-year, after the City's annual financial statements have been audited and the general fund balance has been determined, or 2. Direct staff to appropriate second tier reserve funds for "one time" expenditures as determined by the City Council, or 3. Direct staff accordingly. ZL r� d ........... ........... REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: AD 06-40 Analysis: The City of Huntington Beach has a number of financial policies (Attachment 1). One of the policies stipulates how the audited unreserved undesignated general fund balance is to be allocated. Fifty percent of the unreserved undesignated fund balance is to be placed in the 2"d tier reserve. Twenty-five percent is to be placed in the capital improvement reserve and the remaining twenty-five percent transferred to the infrastructure fund. These actual transfers are made around mid-year when the city's accounting records have been closed and audited by independent Certified Public Accountants. After the 2004/05 audited financial statements were completed, and the financial policy transfers were made, the 2nd tier balance was $7,352,000 of which $1,836,000 has been loaned to the PA&D fund. During the 2006/06 fiscal year, Council approved additional appropriations from the 2"d tier reserve of approximately$1.1 million. It is estimated that upon the closing of the books in mid-year, the 2005/06 2"d tier fund balance will be at least on par with the 2004/05 2"d tier balance of $7,352,000. This is the result of estimated savings in general fund and or revenues received in excess of originally anticipated of at least $1.1 million. The approved budget for 2006/07 authorized $894,000 of the 2"d tier reserve to be used towards the Heil pump station. This leaves an estimated 2"d tier fund balance of$6,458,000 at the time of budget adoption (Attachment 2). As mentioned, the actual 2"d tier amount for the fiscal year just ended will not be known until staff has made all closing and adjusting entries, prepared the city's financial statements, and the audit of those statements have been completed for the fiscal year ending September 30, 2006. The City Council, at the September 5, 2006 budget public hearing, directed staff to return in October with a discussion of the appropriation of 2"d tier funds. The Council requested information on a number of issues relative to funding challenges and recommendations to address these issues. The following discussion delineated by those activities with one-time expenditures versus on going expenses addresses each of the issues raised. One-Time Expenditures Residential Pavement Overlay The residential pavement overlay program has a current backlog of $1,965,000. This backlog consists of streets that are in a state of disrepair that necessitates an overlay of the streets in lieu of a slurry seal application. With the appropriation and expenditure of $1,965,000 in fiscal year 2006/07 this backlog will be eliminated. Tree Petition Streets The current tree petition list contains 82 street segments with 1,660 impacted properties. Based on recent bid activity, it is estimated that the cost per residential lot is $8,500. The adopted fiscal year 2006/07 Capital Improvement Program provides funding for two additional street segments. To effectuate repairs to the next seven streets on the petition list, an allocation and expenditure of an additional $1,000,000 would be necessary. This would bring the petition list down to 75 street segments. -2- 10/4/2006 4:31 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 1 011 6/2 0 0 6 DEPARTMENT ID NUMBER: AD 06-40 Storm Drain Improvements The adopted fiscal year 2006/2007 includes the allocation of$1,950,000 for phase one of the Heil Pump Station project. These funds consist of $894,000 of 2"d tier reserve and $1,056,000 from the Infrastructure Fund. Phase one of the Heil Station Rebuild consists of property acquisition and design/environmental activities. The total project cost is estimated at $9,800,000, including the funds currently allocated. Additional resources dedicated to construction will be required prior to awarding a construction contract tentatively scheduled for fiscal year 2008/09 pending funding availability. This project is identified as the number one priority storm drain improvement. Energy Efficiency Assessment The City has retained the services of Kurt J. Kammerer and Associates (KJK & Associates) to perform an Energy Efficiency Assessment of 13 major city facilities. The consultant has - submitted a preliminary report which identifies $790,000 in improvements that would enhance the energy efficiency of our facilities. In addition, over $250,000 of those expenses may be eligible for Southern California Edison rebates. The Assessment calculates a payback on these improvements of 3.1 years; in other words, we could realize energy cost savings to offset the capital outlay with incentives 3.1 years after implementation. Staff is awaiting the final report from KJK and Associates. Upon receipt of the report, staff will develop an implementation plan with recommendations for the implementation of the identified upgrades, including those that can be completed with existing resources and those that will require additional appropriation. It is anticipated that this implementation plan will be available in the New Year. Sister City Anniversary 2007 marks the 25th anniversary of the City Sister Program with Anjo, Japan. A delegation of 25 adults from Anjo is anticipated to visit July 2"d, 3rd and 4th of 2007. This is in addition to the usual youth delegation that will be visiting at the same time. In addition, the City will be sending a delegation to Anjo in April 2007. These two events will generate a need for additional, one-time expenses for the City Sister Program. Currently the annual budget for this program is $10,000. To meet the needs of this one-time expense, an additional $6,000 is required. These additional funds will be used for appropriate gifts to Anjo and provide the Anjo delegation of adult guests with a council reception, protocol class, translators, meals and other associated costs. Downtown Street Improvements A question was raised relative to the specific scope of the $2.5 million project in the approved fiscal year 2006/07 CIP for downtown streets, alleys and curb, gutter, sidewalk project. The following segments will be completed in the order shown, as funding allows, up to $2.3 million: Streets Limits 1. Olive Street 6th to 1s' .3. 10/4/2006 4:31 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: AD 06-40 to St 2. Walnut Street 6 to 1 3. Lake Street Palm to Orange 4. Pecan Street 6tt'to Acacia 5. Orange Street 6th to 2nd 6. Main Street Palm to Acacia 7. 2nd Street Orange to PCH 8. Acacia Street 7d'to Lake Street Alley 9. 3`d Street Walnut to Orange Two alley segments between 2nd Street and 3`d Street from Walnut Street to Orange Street have been identified as most in need of repair. Cost estimates are based on recent bids, and _ $200,000 has been allocated to repair both alley segments. Central Park Restroom Doors In response to the issue of the lack of restroom doors in Central Park, Public Works personnel has initiated the fabrication of these doors with installation scheduled for January 2007. The total cost is approximately $6,000 and budgeted resources are available in the Public Works operating budget. On Going Expenses Graffiti Abatement Using funds appropriated by the City Council in mid-fiscal year 2005/06 the Public Works Department retained a contractor in August 2006 to supplement full time staff to address the backlog of removals and provide abatement on private property. Staff is currently assessing the full time staff needed to respond to public and private property abatement and developing abatement support programs using such resources as volunteers, court referrals and organized community events. In addition, staff is developing a means for comprehensive reporting of vandalism activity and locations so that needed removals can be more quickly identified and handled. Staff is estimating that this evaluation period will take six months with a comprehensive report and recommendation available in March 2007. Bridge Assessments Public Works staff has completed a request for proposal for a city-owned bridge assessment. A professional engineering firm will be retained to complete the following activities: o Prepare evaluation and ranking procedure to identify and prioritize preventative maintenance projects including cost estimates and maintenance schedules o Review existing Caltrans inspection records and assessments o Provide preliminary structural analysis o Identify and prepare a database for bridges potentially eligible for state or federal funding programs o Develop a preventative maintenance plan -4- 10/4/2006 4:31 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: AD 06-40 It is estimated that this assessment will cost $200,000. Funds have been allocated in the FY 2006/07 CIP to complete this assessment. Beach Restroom Cleaning The beach restrooms are thoroughly cleaned daily during the graveyard shift. This includes washing down the walls, floors, sinks and toilets with the appropriate cleaners. During the peak season, the restrooms are also spot cleaned three times a day and restocked. In the off-season the spot cleaning is done once a day. This level of maintenance has been in place for the past year and is again funded in the approved fiscal 2006/07 adopted budget. In order to enhance that service level to allow a second thorough cleaning at mid-day throughout the year, an additional allocation of $64,400 for contractual services would be necessary. Main Street Promenade Parking Structure Restrooms The Main Street Promenade Parking Structure restrooms, like the beach restrooms, are thoroughly cleaned daily by the beach staff working the graveyard shift. These restrooms are spot cleaned and restocked three times daily during the peak season and once a day in the off-season. Like the beach restrooms, the parking structure restrooms were increased to this level of service last year and funding is again included in the approved fiscal year 2006/07 adopted budget. The City Council currently has an ad-hoc committee studying Main Street for a potential trial closure as well as associated challenges relative to parking, cleanliness and other activities. The efforts of the committee will result in recommendations to the City Council for service levels as it relates to restroom cleaning as well as the number of available restroom facilities. The committee is currently scheduled to report their recommendations to the City Council in November 2006. Main Street Sidewalk Cleaning Effective fiscal year 2005/06, the Main Street sidewalk cleaning was enhanced to steam cleaning weekly during the peak period between Memorial Day and Labor Day for the first two blocks and twice monthly for blocks three and four. During the off-season the first two blocks of sidewalks are cleaned twice monthly and the third and fourth block are cleaned monthly. This enhanced level of service is included in the adopted 2006/07 budget_ Consistent with the Main Street Parking structure restrooms cleaning frequency, the service levels for the downtown are currently being reviewed by the City Council ad-hoc committee. Included in the evaluation/recommendations will be a discussion of the opportunities to purchase equipment for use by either city staff or the Downtown Business Improvement District for downtown cleaning. Recommendations to the City Council on any service level enhancements are scheduled for presentation to the City Council in November of 2006. -5- 10/4/2006 4:31 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: AD 06-40 Beach Maintenance Beach maintenance requirements have continued to be challenged due to the changing activity levels as a result of the city becoming a year round destination. In the past year and a half the City Council has added three full time positions as well as $70,000 for contractual and recurrent resources to address these challenges. Service levels have increased in the area of sand sweeping and litter removal in the parking lots, ramps, stairs and the beach path. Historically the areas south of the pier were cleaned monthly and the area north of the pier was cleaned as needed. Currently cleaning is performed weekly during peak season and monthly during the off-season. To meet the continued demands, additional contract, permanent and recurrent staff resources may be necessary. Community Services staff will evaluate the overall beach maintenance operation during this upcoming fiscal year and make any service level _ recommendations concurrent with the budgetary process. Huntington Beach Playhouse Discussions are ongoing between Huntington Beach Playhouse representatives and city staff relative to lease rates for the theater facility at the Central Library. These discussions will result in a recommendation to the City Council on lease terms. At that time the City Council can decide to allocate any resources to offset the lease rate proposed. Strategic Plan On August 26, 2006, the City Council adopted the City's Strategic Plan Vision and Goals. Council further directed staff to return with a plan identifying the strategies and projects to implement the vision and goals in the Fall of 2006. A number of projects, including the Police Firing Range, the Heil Fire Station Relocation and the update to the Central Net Training Facility are being considered in the implementation plan. Each of these projects has funding needs that could potentially be addressed via the 2" tier reserve. Staff recommends that the City Council not appropriate any of the 2"d tier reserve and retain the fund balance for unexpected expenditures, unforeseen economic impacts, and any state legislation that impacts local revenue. Should the City Council decide to appropriate 2nd tier reserves, it is recommended that we wait until the mid-year so we have a definitive fund balance after the closing of fiscal year 2005/06 and the Strategic Plan implementation strategy is completed. It is further recommended that any appropriations be for one-time expenses as identified in the body of the RCA and the Strategic Plan implementation strategy. Environmental Status: N/A -6- 10/4/2006 4:31 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: AD 06-40 Attachment(s): City Clerk's Page Number No. Description 1. Financial Policies 2. 2nd Tier Budget Presentation .7_ 10/4/2006 4:31 PM RCA ROUTING SHEET INITIATING DEPARTMENT: Administration SUBJECT: Appropriation of Second Tier Reserve COUNCIL MEETING DATE: November 6, 2006 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable ❑ Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable ❑ Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney) Not Applicable ❑ Subleases, Third Party Agreements,etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable ❑ Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable ❑ Fiscal Impact Statement (Unbudgeted, over$5,000) Attached ❑ Not Applicable ❑ Bonds (If applicable) Attached ❑ Not Applicable ❑ Staff Report (If applicable) Attached ❑ Not Applicable ❑ Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable ❑ Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable ❑ EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORVVARDED Administrative Staff Deputy City Administrator Initial City Administrator Initial City Clerk ( ) EXPLANATION FOR RETURN OF ITEM:' (Below Only) RCA Author: PE