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Review and approval of Mid-Year Budget Report and Budget Ame
i- , lox Council/Agency Meeting Held: 5-19 8 Deferred/Continued to: 1,/i V?y ® A proved nally Approved Denied ��Pw y City Clerk's Signature ❑ Con ❑ -4tounMeeting at�:_N_"'__ June 15, 1998 Department ID Number: AS 98-013 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City Administrator PREPARED BY: ROBERT J. FRANZ, Deputy City Administrato SUBJECT: REVIEW AND APPROVAL OF MID-YEAR BUDGET REPORT AND BUDGET AMENDMENTS Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments)I i Statement of Issue: Several amendments to the 1997/98 Budget are needed based on a mid-year review of departmental needs. Funding Source: As indicated. Recommended Action: 1. Approve an increase to the General Fund Budget in the amount of $162,800, 2. Approve an increase to the Liability Self Insurance Fund of$300,000, and 3. Approve an increase to the Park Acquisition and Development Fund of$10,000, and 4. Approve the transfer of$450,000 from the Pier Fund to the Pier Plaza Fund, and 5. Approve the transfer of $3.3 million from for the General Fund to the Capital Improvement Fund. Alternative Action(s): 1. Do not approve the mid year budget amendments. 2. Approve some of the amendments. 3. Request further review prior to City Council action. REQUEST FOR COUNCIL ACTION MEETING DATE: June 15, 1998 DEPARTMENT ID NUMBER: AS 98-013 Analysis: MID YEAR BUDGET REPORT The Quarterly Budget Report for the second quarter of Fiscal Year 1997/98 was recently distributed to the City Council. General Fund revenue estimates have been increased $311,450 compared to the first quarter report, and are up over $3 million from the original budget estimates. About $1.4 million of the increased estimated revenue is from one time receipts such as building permits, oil spill legal fee reimbursement, and Orange County bankruptcy returns. After completion of the Quarterly Report, the City Council approved new and increased fees which are projected to further increase current year revenues by $250,000. Budget amendments of $3.0 million have been approved so far this year, including roughly $400,000 for labor settlements and amendments for one-time costs totaling $2,256,034. Attachment 9 is a listing of approved budget amendments. Ongoing revenues and expenses are projected to be balanced for Fiscal Year 1997/98, due to improving revenues and ongoing expense reductions due to vacancies in permanent positions. The City has numerous one-time expenses that could be required within the next few months to a year. Attachment 12 is a listing of unfunded and underfunded liabilities and projects. Staff is recommending that General Fund reserves in excess of 5% be transferred to the Capital Improvement Projects (CIP) Fund, consistent with the City's approved Fiscal Policies (Attachment 13. By making this transfer as part of the mid-year budget review, the staff and City Council will be able to review the City's unfunded needs (Attachment 12) and develop a consensus on the highest priority needs. The 1998/99 budget will then include recommended appropriations to address the highest priorities. PROPOSED BUDGET AMENDMENTS As discussed with the City Council when a moratorium on General Fund budget amendments was adopted in March, and as per the City Administrator's memo of March 27, 1998 (Attachment 2), the mid-year budget report is intended to address amendments that do.not necessarily meet the criteria of the moratorium. Following is a brief description of the budget amendments that are recommended as a part of this Mid-Year Review: 1. Training for the Safe Streets Now Program -- $10,000 is needed as described in the attached memorandum from Police Chief Ron Lowenberg, (Attachment 3). This will provide two days of instruction from the founder of the Safe Streets NOW Program. This training program will enable the City's Team COP and the BgtRpt.doc -2- 06/03/98 4:41 PM *QUEST FOR COUNCIL ACTION MEETING DATE: June 15, 1998 DEPARTMENT ID NUMBER: AS 98-013 Nuisance Task Force to educate the public on their civil options in regards to nuisance properties in their neighborhoods. 2. Information Systems Needs -- $80,000 is needed for outside contract assistance relating to Information Systems operations. This will allow the implementation of the new Water Application Fee of $25 which will involve programming changes to existing Information Systems computer programs at a cost of approximately $20,000. In addition, the Information Systems Division has requested outside contract assistance of $60,000 for assistance through the remainder of the year. 3. Blufftop Bike Path Relocation — $20,000 -- Due to erosion in the area, a portion of the bike path along the blufftop needs to be relocated. 4. Urban Forest Analysis - (Park Acquisition and Development Fund) $10,000 - - Originally there was a cost estimate of $15,000 to conduct this preliminary study which has been reduced to $10,000 because an oil remediation consultant is willing to perform this portion of the task at no cost to the City. The $10,000 cost is for soils testing and lab analysis. Attachment 5 includes the proposals from two firms and prior staff and City Council communications on this project. Staff recommends this cost be funded out of the PA & D fund. 5. City Treasurer Staffing - $8,500 -- Due to the additional collection efforts required by the Treasurer's Office related to the new $25 Water Application Fee recently approved by the City Council, the City Treasurer has requested that a permanent Customer Service Representative position be added to the budget to replace one 1/2 time temporary positions. This would involve an additional annual cost of $25,000. The current year additional cost is $8,500 for approximately four months. These costs are offset by new fee revenue. 6. Oil Well Maintenance - $39,000 -- A serious oil leak occurred and emergency repairs were required on the oil flow line from City Hall to the Miley-Keck Tank Farm. The petro-chemical budget of the Fire Department does not have a contingency fund for emergency repairs of city wells and cannot absorb the $39,000 additional costs for the emergency repairs. (Attachment 6) 7. Legal Costs — (Liability Fund) - $300,000 -- $525,000 was budgeted for the current year in the Liability Self Insurance Fund for outside legal costs. That budget has been completely expended through seven months of the fiscal year and we anticipate needing an additional $300,000'to complete the current fiscal year obligations for outside legal costs. This cost is funded by the Liability Self Insurance fund. Attachment 7 summarizes the status of our self insurance fund reserves. 8. Pier Plaza (Pier Fund) - $450,000 -- When the City Council awarded a contract for the construction of the Pier Plaza Project, long term bonds were issued to fill BgtRpt.doc -3- 06/03/98 4:41 PM *QUEST FOR COUNCIL ACTION MEETING DATE: June 15, 1998 DEPARTMENT ID NUMBER: AS 98-013 the gap of funds available compared to funds needed. One of the available funding sources was $800,000 anticipated settlement from the oil spill litigation (1990 American Trader oil spill off the coast of Huntington Beach). Although these funds have been deposited in a trust account that is controlled by the cities of Huntington Beach, Newport Beach, the County of Orange and the State of California, the Committee controlling the release of funds has not voted to release the funds, until after the current appeal process has been completed. When the Pier Plaza construction contract was awarded it was anticipated that these funds would be released in early 1998. Now that.the construction project is nearing completion, we have prepared a reconciliation of the amounts needed to complete our contractual obligations and there is a shortfall of $450,000 of funds needed compared to those available due to the non-receipt of the oil spill trust funds. Therefore, it is recommended that the City Council authorize the use of a $450,000 loan from the Pier Fund to the Pier Plaza Project to be repaid from the oil spill litigation proceeds. 9. False Alarm Billing Costs - $5,300 — The increased billing activity for false alarms has created more workload in the Police and Treasurer's Departments to process billings. A 20 hour per week temporary employee is needed for this workload increase at an annual_cost of $16,600. The current fiscal year budget amendment for the remaining four months is $5,300. This cost is offset by new related new revenue. See Attachment 8. Attachment 11 lists other potential budget amendments that are not recommended as part of the mid-year review. GENERAL FUND RESERVE If the recommended actions in this RCA are approved, the projected General Fund reserve at the end of fiscal year 1997/98 would be an estimated $5.2 million or 5% of the General Fund budget. Following is a summary of the 1997/98 estimated Fund Balance (Reserve) for the General Fund: Beginning Fund Balance (audited) $ 9,183,000 Plus: Estimated Total Revenues* $ 105,982,740 Less: Estimated Total Expenses* 104,655,957 Projected 1997/98 Surplus 1,326,783 Less: Self Insurance Transfer (approved) (1,800,000) Less: Recommended Budget Amendments (162,800) Less: Recommended Transfer to CIP (3,300,000) Estimated Ending Fund Balance $ 5,246,983 *Includes one-time revenue and one-time expenses BgtRpt.doc -4- 06/03/98 4:41 PM QUEST FOR COUNCIL ACTION MEETING DATE: June 15, 1998 DEPARTMENT ID NUMBER: AS 98-013 Environmental Status: Not applicable. Attachment(s): City Clerk's Page Number No. Description 1. Summary of Mid Year Budget Amendments 2. March 27, 1998 Memo— Budget Amendments 3. Safe Streets NOW Memo 4. City Treasurer Memo (Staffing Needs) 5. Urban Forest Information 6. Fire Department Budget Information 7. Self Insurance Fund Summary 8. False Alarm Billing Costs 9. Budget Amendments Previously Approved 10. Settlement Funds —Pier Plaza 11. Other Potential Budget Amendments 12. Unfunded and Underfunded Liabilities and Projects 13. City Fiscal Policies RCA Author: Robert J. Franz G7 roNi 52 D BgtRpt.doc -5- 06/03/98 4:41 PM I1 *** ,.EVISED ACTION ***[F lei>, F I(,i, #4) AGENDA CITY COUNCIL/REDEVELOPMENT AGENCY CITY OF HUNTINGTON BEACH ADJOURNED REGULAR MEETING FRIDAY, JUNE 19, 1998 12:00 Noon Huntington Central Library 7111 Talbert Avenue Rooms C & D Huntington Beach, California Call City Council/Redevelopment Agency Meeting To Order Roll Call Julien, Harman, Green, Dettloff, Bauer, Sullivan, Garofalo [Present-Julien:Absent] [Clerk read several Late Communications] F-1. (City Council) (Continued.from 6115/98) Review And Approval Of Mid-Year Budget Report And Budget Amendments For Fiscal Year 1997/98 (320.20) Communication from the Deputy City Administrator-Administrative Services Director presenting several amendments to the 1997/98 Budget based on a mid-year review of departmental needs } Recommended Action: A- tApp a=a- �}s a'+e�-��`��s� �"�'s�r� '' +,�--c'`�'as.+�`�' _'�.�.ry_�. r ,� ,,,�•y lam= and 2. Approve an increase to the Liability Self-Insurance Fund of$300,000, and 3 7Approveansincreaseto°the P,ark`.4cquisition anal ` De ve%pmentA_Nun ;of$10;000and� _ [APPROVED]- _ �� 4. Approve the transfer of$450,000 from the Pier Fund to the Pier Plaza Fund, and S. Approve the transfer of$3.3 million from the General Fund to the Capital Improvement Fund. ['Approved 6-0 (Julien:Absent)] [I. Training for the Safe Streets Now Pro_ rA am "Approved 5Ayes-1 No-Julien: Absent(Garofalo: No) 2. Information Svstems Needs -Approved 5Ayes-1 No- Julien: _ Absent(Garofalo: No) 3. B/ufftop Bike Path Relocation - $20,000 - Failed 4 Noes- 2 Ayes- Julien:Absent(Green, Harman.,Aye) (2) 06/19/98 - Council/Agency Agenda - Page 2 4 Urhan Forest ad _opment, loft60 'A " =4- fA I�C "Ab .7t GaFM.46 5 City Treasurer Staffing $8,500=Appr-Approved With Repayment to . Fund-Approved 6 0 (Julien:Absent) 6 01/ Well Maintenance - -Approved with Repayment to Fund-Approved 6-0 (Julien:Absent) 7. Legal Costs— (Liability Fun#j - $300,000 -Approved 5 Ayes-1 No- Julien:Absent(Garofalo: No) 8. Pier Plaza (Pier Fund) - $450a000 Julien:Absent(Sullivan: No) Approved 5 Ayes-1 No - Julien:False Alarm BINna Costs - $5,300 App roved 6-0 with Repayment to Fund(Julien:Absent)] (City Council) City Council-City Department Head Workshop 1. (City Council) Discussion of City Council-Department Head Relations Discussion of communication titled Fundamental Priorities 2. (City Council) Review of Goals &Oblectives of City Departments Review Goals & Objectives Handbook; also included is a communication from Councilmember Harman dated.6/10/98 submitting five items for discussion (attached). [Proposed changes to the 1997 City Council Adopted Goals and Objectives Document-Approved 6-0 (Julien:Absent)] Public Comments [None] COUNCIUAGENCY ADJOURNMENT: To Monday, June 29, 1998 at 6:00 p.m. in the Council Chamber, Civic Center, 2000 Main Street, Huntington Beach, California. CONNIE BROCMVAY,CITY CLERK City of Huntington Beach 2000 Main Street-Second Floor Huntington Beach,California 92648 Telephone: 714/536-5227 Internet: http:Hwww.ci.huntington-beach.ca.us (2) ATTACHMENT 1 Attachment 1 1997/98 Budget Amendments - Mid-Year Recommended Mid Year Budget Amendments: General Fund Other Funds Comment Safe Streets NOW Training $ 10,000 Information Systems: - City Treasurer $20,000 Revenue Related Other 60,000 Sub-Total Information Systems 80,000 Blufftop Bikepath Relocation 20,000 Emergency Legal Costs- Liability Fund - 300,000 Liability Fund Urban Forest Analysis** - 10,000 PA&D Fund City Treasurer Staffing-MSI fees 8,500 Revenue Related False Alarm billing costs 5,300 Revenue Related Oil Well Maintenance 39,000 Emergency Pier Plaza - 450,000 Pier Fund Sub-Total: Recommended Mid-Year budget Amendments $ 162,800 $ 760,000 **This cost is reduced from$15,000 because an oil remediation consultant is performing this task at no cost Mid-yr98 6/16/98 ATTACHMENT # 1 Attachment 1 1997/98 Budget Amendments - Mid-Year Recommended Mid Year Budget Amendments: General Fund Other Funds Comment Safe Streets NOW Training $ 10,000 Information Systems: - City Treasurer $20,000 Revenue Related Other 60,000 Sub-Total Information Systems 80,000 Blufftop Bikepath Relocation 20,000 Emergency Legal Costs- Liability Fund - 300,000 non General Fund Urban Forest Analysis" - 10,000 non General Fund City Treasurer Staffing-MSI fees 8,500 Revenue Related False Alarm billing costs 5,300 Revenue Related Oil Well Maintenance 39,000 Emergency Pier Plaza - 450,000 non General Fund Sub-Total: Recommended Mid-Year budget Amendments $ 162,800 $ 760,000 *`This cost is reduced from $15,000 because an oil remediation consultant is performing this task at no cost Other Proposed Designated General Fund costs: Potential Labor Settlements $ 785,000 Labor Relations City Hall Maintenance Repairs 250,000 Classification/Compensation Study 100,000 Information System needs 3,500,000 Computer Aided Dispatch System 700,000 Total Potential Costs $ 5,335,000 Mid-yr98 5/28/98 ATTACHMENT #2 C110 OF HUNTINGTON 09ACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: HONORABLE MAYOR AND CITY COUNCIL FROM: RAY SILVER, ACTING CITY ADMINISTRATOR Odd DATE: MARCH 27, 1998 ' SUBJECT: FY 1997-98 BUDGET AMENDMENT REQUESTS At the March 16, 1998 City Council meeting, a motion was approved which directed that no additional General Fund appropriations would be approved for the remainder of the fiscal year, except for certain purposes. The exceptions are obvious emergencies, costs that are offset by new revenues, and labor relations settlements. At the same meeting I stated that I would return to the City Council in May, 1998 with a mid year report on this year's budget status. I would also include any Council requests for additional_ appropriations during this fiscal year in this report. Please provide me by April 10, 1998 any items that you would like added to the mid year budget report that would require General Fund appropriations during the remainder of this fiscal year. If you have any questions or comments regarding the above,please feel free to contact me. cc: Bob Franz,Deputy City Administrator/Administrative Services OF CITY OF HUNTINGTON BEA49H vlIE INTER-DEPARTMENT COMMUNICATION PR 16 �5:�eV HUNTINGTON BEACH TO RONALD E. LOWENBERG CHIEF OF POLICE LF Via Chain of Command FROM G. MEZA, SERGEANT B. TIDRICK, SERGEANT Team COP SUBJECT SAFE STREETS NOW DATE APRIL 14, 1998 Team COP is requesting the City attempt to locate funds to host a"Safe Streets Now" class. Members of Team COP and the Public Nuisance Task Force would be given two days of instruction from Molly Wetzel, the founder of Safe Streets Now. The cost of the instruction is approximately$10,000. "Safe Streets Now"has a staff of attorneys who will assist any agency in litigation resulting from instruction given in the Safe Streets concept. With this information Team COP and the Nuisance Task Force would be able to educate the public on their civil options reference nuisance properties in their neighborhoods. This would empower the citizens to seek civil relief in addition to the response of city government. A proposal similar to "Safe Streets Now"was submitted to the City titled"Neighborhood Net-Works" by James Walker. James Walker is a community activist who received "Safe Streets Now" instruction and taught this concept in various communities. He has since formed his own program that he has marketed. Although similar in content and half the cost we do not believe Walker could provide the expertise and legal support that "Safe Streets Now" offers. In the event the determination is made not to fund either program, we request ongoing access to a Deputy City Attorney for direction on any legal issues arising out of our attempts to resolve community nuisance problems. ATTACHMENT #3 ►11INT1NuTON to OFI Of` THE CEX+_= CITY OF HUNTINGTON BEACW INTER-DEPARTMENT COMMUNICATION 16 15�18 _HUNTINGTON BEACH TO RONALD E. LOWENBERG CHIEF OF POLICE Via Chain of Command FROM G. MEZA, SERGEANT B. TI)RICK, SERGEANT T _ Team COP ': .e J SUBJECT SAFE STREETS NOW DATE APRIL 14, 1998 Team COP is requesting the City attempt to locate funds to host a"Safe Streets Nov' class. Members of Team COP and the Public Nuisance Task Force would be given two days of instruction from Molly Wetzel,the founder of Safe Streets Now. The cost of the instruction is approximately$10,000. "Safe Streets Now"has a staff of attorneys who will assist any agency in litigation resulting from instruction given in the Safe Streets concept. With this information Team COP and the Nuisance Task Force would be able to educate the public on their civil options reference nuisance properties in their neighborhoods. This would empower the citizens to seek civil relief in addition to the response of city government. A proposal similar to"Safe Streets Now"was submitted to the City titled"Neighborhood Net-Works"by James Walker. James Walker is a community activist who received "Safe Streets Nov'instruction and taught this concept in various.communities. He has since formed his own program that he has marketed. Although similar in content and half the cost we do not believe Walker could provide the expertise and legal support that "Safe Streets Nov'offers. In the event the determination is made not to fund either program,we request ongoing access to a Deputy City Attorney for direction on any legal issues arising out of our attempts to resolve community nuisance problems. `t ' � CL ATTACHMENT #4 CITY OF HUNTINGTON BEACH INTER OFFICE CONDAUNICATION OFFICE OF THE CITY TREASURER To Ray Silver, City Administrator From Shari L. Freidenrich, City Treasurer Date March 31, 1998 Subject MSI Fees During my review of the proposed MSI fees, I noted that there are additional fees which need to be collected in addition to increases in existing fees. One fee which will be entirely collected and processed by the City Treasurer's office is the new $25.00 water application fee. Pursuant to discussion with Public Works, and considering an average for the past six months, we expect this to generate $120,000 in annual revenue for the City. (This reflects approximately 400 new households per month.) In order to process the new fee,we are requesting the following: 1. Estimated Revenue FY 97/98 (2-1/2 months) $25,000 FY 98/99 120,000 2. Add a permanent Customer Service FY 97/98 cost: (4 months) $3,500 Representative to replace two recurrent FY 98/99 cost: 10,000 positions (approximately $10,000) 3. Add an additional recurrent position until FY 97/98 cost: $5,000 automation of payments can be successfully FY 98/99 cost: 15,000 implemented Thank you for your consideration of this request. Please advise your thoughts and comments. SLF:lb xc: Mike Dolder, Acting Assistant City Administrator/Fire Chief Bob Franz, Deputy City Administrator Daryl Smith, Acting Public Works Director Linda Daily, Senior Analyst ATTACHMENT #5 CITY OF HUNTINGTON BEICH CITY COUNCIL COMMUNICATION, ►KMINGWN MACH TO: Connie Brockway, City Clerk FROM: Tom Harman, City Council Member 0' DATE; March 12, 1998 SUBJECT: "H" Item" - March 16, 1998, City Council Meeting Urban Forest in Central Park ISSUE: There is an interest by some members of the City Council and community to put in place an urban forest in Central Park along Ellis Avenue. In order to begin the process, certain initial studies need to be conducted to determine if there are impediments toward placing trees in this part of Central Park. With an appropriation of no more than $15,000, these reports can be completed, and the City will know if there are any oil remediation or archaeological artifacts that must be addressed before beginning with this project. MOTION: That the City Council appropriate $15,000 from the General Fund Unappropriated Fund Balance to Account#EAAPW540390 to accomplish the necessary studies in the Central Park area near Ellis, Goldenwest, and Edwards. TH:lp xc: Honorable Mayor and City Council Members Ray Silver Attachment tint . _. i--- .- FG'OP-1 R9 I I a PHONE NO. . 909 767 0305 Scientific Resource surveys, Inc. ARCHAEOLOGY—PALEONTOLOGY—HISTORY—GEOSCIENGES May 2,1998 City of Huntington Beach 2000 Main Street Huntington Beach, CA 92644AOk Attn: Daryl D. Smith n�, Acting Director of c Works a Re: Cultural Resource.Assessment Central Park Urban,Forest Project Technical Services Proposal Dear Mr. Smith, Pursuant to our-discussions, we have revised our technical proposal. to incorporate the efforts of Miller Brooks Environmental, as well as to accommodate the phased program developed during our meting with you, Mr. Ray Silver, and Councilman Tom Harman to discuss the archaeological program for the Central Park Urban Forest Project.. Our task will be to conduct a'n archaeological resource assessment of the portion of archaeological site CA-Ora-82 east of Edwards Street which, we understand, falls within the Urban Forest portion of the City's Central Park development project. We have reviewed our previous proposals for this project, which have been previously provided for-your reference. Potential impact to the site caused by developing the Urban Forest are far less !severe than the potential impacts of previously-proposed projects. We are assurnimi that subsurface impact to the site will be restricted excavation of holes less than three feet deepfor the planting of t e orest trees, and possj5 e shallow excavation of Irrigation trenches. —' Scientific Resource Surveys conducted an extensive investigation of a portion of this site in the early 1990's. The project focused on a critical'portion of the site adjacent to . Edwards Street, and included the removal of a burial. We have also documented extensive site disturbance�vvithin this area due to past oil field operations and previous excavations by the Pacific,!Coast Archaeological Society (PCAS). The PCAS burial removal program, conducted in the early 1970's, extended onto the current project area_ " P.O.Box 2349,1'6: cula,CA 92593.2349 Phone:909/767.2555-Fax:909I767.0305 MH`i`. b. 1:-Y6 1U:t}bHll r' FROM SRS I NC PHOHE HO. : 909 767 g8vy r City of Huntington Beacn Cultural Resource Assessment /Ora-82 Technical Services Pro 1 1 sat Page 2 We propose to conduct this investigation in several phases as outlined below: Phase I -.Surface Delingation Phase I will include a literature search and review of past investigations, an archaeological records 6heck at the Archaeological Information Center, University of California at Los Angeles, and a review of historic aerial photos to document oil field and agricultural disturbance. Copies of aerial photographs of the site area (covering the years 1928 to approximately 1965) are to be provided by Miller Brooks Environmental, along with their interpretation of oil field disturbance within the area. This information can be provided at a minimal cost since it has been compiled in a large part during our earlier work on adjacent projects. An extensive surface survey will be conducted which will include surface mapping and the location and collection of surface artifacts, thereby delineating the horizontal extent of the site. Costs are based on a previously-record site size of approximately 100 x 250 meters. The cost estimate for this phase i 7,000.00. owingof the area prior to our field investigation is to be provided by the i y, as needed. The City will also be resuonsi a for providin geographic reference points (horizontal control) at locations to be determined within-the project site area. Phase II - Parcel evaluation The results of Phase I will identify portions of the Urban Forest Project Area that have constraints relative to cultural resources. These areas will be ranked as having a low, moderate, or high potential for containing significant cultural resources. Phase if will include a physical sampling program to evaluate these resources. The subsurface sampling program will cpnsist of a number of 12-inch auger samples drilled to a depth of approximately three feet. It may be possible to place auger holes at the specific locations proposed for the location of trees within the Urban Forest. This will provide an increased. level of confidence that significant archaeological discoveries are not encountered during a .later phase of the project. Samples will be obtained in approximate 20 cm ve�~ti,cal intervals at each location and screened through one- eighth mesh screen to recover small artifacts. Soils analysis and chemical testing may be conducted where appropriate. Areas of low potential f6� containing significant cultural resources will be evatijated with five (5) sampling Ieations per acre; areas of moderate potential for containing significant cultural resources will be evaluated with ten (10) sampling locations per acre; areas of high potential for containing significant cultural resources will be evaluated with twenty (20) sampling locations per acre. it is anticipated that areas classified as high will c.o'nstitute the core area of the site and could very possibly FROM SRSIHC: PHONE NO. 909 767 T=05 City of Huntington Beach Cultural Resource Assessment I Ora-82 Technical Services Proposal Page 3 contain. Native American burials. We estimate that about ten (10) sampling locations can be completed within one work day. Therefore, two acres of low probability e acre of moderate probability parkland can be eva uated in one ''-at a cost 01 $3,300. Optional Geophysical Program SRS has pioneered and highly refined the application of geophysical techniques to the delineation of archaeological sites in southern California. These techniques, which include magnetics, terrain conductivity, and ground penetrating radar, were successfully used during our investigation of Ora-82 in the early 1990's, as well as on sites along the west side of Edwards Street. As outlined in our earlier proposals, geophysical testing may provide valuable information for establishing the horizontal limits of the site, especially in the core area. Vertical limits will be defined by an auger program. The geophysical investigation will include a terrain conductivity study of the site to define shell midden concentrations and identify other anomalous areas. We.have successfully used this >echnique on numerous occasions to provide a preliminary definition of the horizontal extent of the subsurface component of a site. Previous experience has shown that this may reduce the lateral extent of the site by approximately 50%, thereby reducing the cost of the subsurface sampling program appropriately. Isolated anomalies may be further investigated using magnetics and/or ground penetrating radar. The cost estimate for the terrain conductivity study is $4,000.00. it is anticipated that any additional investigations of isolated anomalies, if encountered, will not exceed $3,000.00. These additional investigations would potentially be key and critical as isolated individual anomalies could potentially be the location of burials. Their investigation, however, is optional; strict avoidance of the area may be selected as the appropriate action. To be effective the geophysical survey must be conducted over the archaeological site, or at least the area of highest probability, at one time, it is not practical to conduct such an investigation in small increments. We recommend that it be 'given consideration at such time that the core area of the archaeological site is investigated. We believe this program' could cut the number of physical samples in high probability areas by approximately 50%. , A Summary Field. Report"will be prepared at the conclusion of Phase i. This report will provide the necessary information to allow planners to evaluate the current plan for the Urban Forest, with the concept of avoiding disturbance to portions of the site that,have a high potential of containing burials. FROM SRS I HC PHONE NO. 909 767 0305 City of Huntington Beach Cultural Resource Assessment /Ora-82 Technical Services Proposal Page 4 As you will note we have' maintained our original Phase I program in its entirety. We feel this phase is critical for the following reasons: 1) It will lay the technical groundwork for the rerni index of the project, providing information to allow us to correctly proceed with successive phases; 2) It will provide planning information for the City in both cultural ',resources and site cleanup; 3) It will most likely clear a significant portion of the project site for tree planting with no additional cultural resource studies; and 4)';It will allow us to establish a potential level of constraints for the remaining portions of the project area. Ora-82 historically has produced several Native American burials and as such has been referred to as the Edwards Hill Burial Ground. It is possible that burials may be encountered during the subsurface auger program, or subsequently during the tree planting phase of the Urban Forest Project, particularly in areas considered to be of high potential for containing significant cultural resources, which is most likely limited to the small knoll area! adjacent to and east of Edwards Street. Subsurface disturbance should be a'vloided within areas that have a high likelihood of containing burials. A Native American monitor will be present during subsurface sampling as appropriate. The procedures required Iiin the event of the discovery of a human burial are clearly defined under state law. In the event burials are encountered, all work will cease and appropriate agencies wilf be notified. These will include the City of Huntington Beach, the Coroner's Office f6r, the County of Orange, the Native American Heritage Commission, and the appropriate Native American representatives as designated by the Native American Heritage Commission. Appropriate negotiations will be undertaken and a plan of action prepared. These services will be provided on an hourly bases in accordance with our 1998 Standard Schedule of Charges. Attendance at public hearings or other agency meetings will be provided at a cost of $500.00 per meeting. Under the laws of the S41 to of California, a concentration of six or more individuals constitutes a legal cem6tery. This would severely limit land use within the defined boundaries of the cemetery area. Historic cemeteries have been relocated under certain circumstances; however, it is generally not cost effective for most projects. Under these circumstan es the area is merely preserved in place and land use restricted. Significant uncertainties are involved if the buries are identified as Native American. Tribal groups; have the right to request removal and relocation, which can be costly, or preservatiora din place and the property deemed a Native American burial ground. This issue will; a addressed only in the event burials are inadvertently discovered during the suh urface sampling program ar during the tree planting phase of the Urban Forest Project. Restricting subsurface invasion in areas of high i i I i FROM SRS I HC PHONE NO. 909 767 0.305 City of Huntington Beach. Cultural Resource Asses$ment /Ora-82 Technical Services Proposal Page 5 probability will lessen the chance of unintentionally discovering a burial. The archaeological investigation will be under the direction of Dr. Nancy A. Whitney- Desautels. Dr. Desautel$ 'has over 25 years experience in both prehistoric and historic studies, and has been 'involved in cultural resource management in southern California for over 20 years. She is currently a research associate at Indiana University and is certified by the Society of Professional Archaeologists (SOPA). Dr. Desautels has been involved in research relating to Ora-82, the Edwards Hill Burial Site, since 1978. Scientific Resource Surveys, Inc. maintains general liability, property damage, automobile liability, and workers compensation insurance with carriers that meet or exceed the requirements,set forth by the State of California. Certificates of insurance will be provided upon request. Any associated costs, such as naming Client as additionally insured, will IJe billed at cost. Our fee is due upon presentation of the final report. Outstanding accaunts may be subject to interest at a rate of 1.5 % per month. In the event of suit or othjer legal action to enforce collection, SRS is entitled to recover reasonable legal fees. We appreciate the o pgr uni to work with you on this project. if you have an P , tY Y questions, please call at your convenience. Sincerely, Scientific Resource Surveys, Inc. Robert M. Beer Vice President ! Environrnontal Operations i i i ; I MILLER BROOKS , April 7, 1998 1 '?Mr.Daryl D. Smith City of Huntington Beach Public Works Post Office Box 190 Huntington Beach, California 92648 RE: CENTRAL PARK URBAN FOREST PROJECT HISTORIC ENVIRONMENTAL RECORDS REVIEW Dear Mr. Smith: Miller Brooks Environmental, Inc. (Miller Brooks) is pleased to submit this proposal for review of selected historic environmental records relating to the Central Park Urban Forest project area, located north of Ellis Avenue, between Edwards and Golden West Streets, in Huntington Beach, California. The scope of work detailed below is based on information obtained during our meeting on March 27, 1998, and is intended to identify locations within the project area where historic oil production activities may have resulted in environmental impacts to the subsurface. PROPOSAL Miller Brooks is pleased to offer the services described below, at no cost to the City of Huntington Beach,to assist in planning for the Central Park Urban Forest Project: - Review historic aerial photographs of the Fairchild Collection at Whittier College(covering the years 1928 to approximately 1965)for evidence of potential onsite contaminant source areas; - Review well records available from the California Department of Conservation,Division of Oil, Gas, and Geothermal Resources(DOG) to document onsite oil production activities and identify potential onsite contaminant source areas; and - Prepare a report detailing the results of the historic records review. The report will include: 1)identification of potential contaminant source areas,plotted to scale on base maps of the project area provided by the City of Huntington Beach;2)a tabulated inventory of onsite oil production wells,with copies of available well records; and 3)a discussion of the potential environmental issues identified within the project area, for consideration during planning for the Urban Forest Project. Upon completion of the records review,consideration will be given to the collection and analysis of soil samples from selected portions of the project area to determine the presence of contaminants. If sampling is deemed appropriate by the City of Huntington Beach,Miller Brooks will prepare a proposal detailing additional services to be offered at no cost. Thank you for the opportunity to assist in the betterment of our City. We are prepared to begin work immediately,upon your authorization,and anticipate submittal of our report for your use within 20 working days of approval to proceed. 18700 Beach Boulevard,Suite 205 - Huntington Beach,CA 92648 - Telephone: (714)965-9161, Fax: (714)965-9163 Please contact the undersigned at(714)965-9161 if you have any questions,or if we can provide any additional information. Sincerely, MILLER BROOKS ENVIRONMENTAL,INC. Daniel J. amsay,R.G.,R.E.A. Senior Geologist Dean O. Gregg,P.E., C.H.G. President 98-0718-01 0 Miller Brooks Environmental,Inc. Page 2 ATTACHMENT #6 O - --- CITY OF HUNTINGTON BEACH - - -- ---- -----= =--- INTER-DEPARTMENT COMMUNICATION MUMS RAM To: Robert J. Franz, Deputy City Administrator From: -.-__ Colleen Keith Department Analyst Senior - - ---------- --- Via: Michael P. Dolder,Acting Assistant City Administrator/Fire Chief J P Date: April 16, 1998 - SUBJECT:- - 1997/98 MID-YEAR BUDGET ADJUSTMENT----- -_.-- — - --- - - ------ - AND 98/99 BUDGET MODIFICATIONS MID-YEAR BUDGET ADJUSTMENT: E-AA-FR-316-443 Account: Increase of$39,206 The PetroChe_m section of the Fire Department manages City-owned oil wells. In October 1997,the-oil flow line from the City wells to the Miley Keck tank farm suffered a serious oil leak and emergency repairs were required. The original contractor for the well had gone bankrupt, and the new company, Ballard Construction, did agree to honor the original installation warranty. Ballard estimates they spent around$40,000 to effect pipeline repairs. Additional costs totaling $39,206 were deemed to be the responsibility of the City. These costs included initial oil control and clean-up,investigation into the street, and rental of equipment until the responsible contractor could be notified. The PetroChem budget does not have a contingency fund for the emergency repair of City wells and cannot absorb the$39,206 cost. These funds will need to be appropriated from the General Fund. 1998/99 BUDGET ADJUSTMENTS-GENERAL FUND E-AA-FR-302-516 (City of Anaheim ): Increase of$22,000 Metro Cities JPA is purchasing new dispatch consoles for the communications center under a lease/purchase agreement. Huntington Beach's member share of the Metro Cities JPA will be increased by an estimated $22,000 for the next three years for our share of the lease/purchase. 1998/99 BUDGET ADJUSTMENTS-.ENTERPRISE FUND E-EA-FR-309 Salaries and Benefits: Increase of$28,063 The duties and responsibilities of the clerical position in the CUPA program are such that a half-time person is not enough. Staff is recommending the increase of this position to full-time,which is an increase in Salary and Benefits of$28,063. The net program cost, including the full-time clerical,is$133,047. In FY 98/99,the Hazardous Materials.Disclosure Program will generate$178,000. The program revenues;which can only be _ used for the CUPA program, will be more than enough to cover the additional half-time clerical costs. . _ Copy to: . _. _ _..Ray Silver, City Administrator _ - - John Roulette,Budget Analyst Senior Omy documentsUB 99 budgetUd 98_99 increases.doc FIRE DEATMENT CONTRACTUAL SERVIGr-S ACCOUNTS <-----------Historical Data------------> <----Pro osed Bud et----> Estimated Department � r Acct. Actual Actual Budget Actual � 3tegaes# ��4 No. Personal Services FY 94/95 FY 95/96 FY 96/97 FY 96/97 FY=199798 FY 1998/99 ADMINISTRATION-300 381 Rental Expenses 316 291 300 2,500 � �,,� ;,.,6_ 2,600 434 Maint.,Dept Equip _ 0 0 --- 47 `FS s10Q - - 100 438 Microcomputer Maint. 530 0 4,000 t5{100; 15,000 TOTAL • 846 291 300 6,547 17,700 17,700 FIRE PREVENTION-301 ------ 381 Rental Expense 1,653 1,965 3,100 2,870 ' `` ';`=>"=:, s,. 2,900 390 Contractual Services 1,500 3,000 500 :_- ------ � AQ 750 i 407 Printing 163 332 1,200 1,186 t , QQK 1,300 434 Maint.,Dept.Equip 3,113 2,994 2,700 3,000 ; °° 3' OQ' 3,200 TOTAL 6,429 5,291 10,000 7,556 7,900 8,150 a FIRE SUPPRESSION-302 - 381 Rental,Expense 5,247 4,582 4,000 4,490 �`� 0 4,120 tiz 390 Contractual Services 79,487 40,796 77,400 9,421 w r� ,EDb 18,000 403 Contr.Svcs.,Med. 12,689 33,210 18,000 16,234 '- ri 4 LT" 17,000 407 Printing 3,459 1467 2,000 2,000 2,000 ;ems_ _Ya_ ark 433 Radio Maintenance 15,110 1,642 12,500 22,000rdIn 18,540 434 Maint.,Dept Equip 13,710 11,404 47,300 48,266 52,736 ,�} �- 437 Mainframe Computer Maint. 13,252 30,000 sY. O?ON_ 0 20,600 438 Microcomputer Maint. 17,928 10,757 17,500 15,000 439 Maint.,Misc. 4,501 2,713 0 0 fi:, tiQ 0 440 Maim.,Bldg.&Grounds 17,382 14,968 42,500 36,000 46,350 516 To City of Anaheim - 108,686 606,060 579,655 489,529 719 Joint Venture(Central Net) 163,964 163,964 m ''4= 63h964 168,882 TOTAL 169,513 243,477 991,224 927,030 826,182 837,757 SUPPORT SERVICES-303 381 Rental Expense 2,045 1,815 2,500 1,550 <<5'{_2;s9.,4 2,500 434 Maint.,Dept Equip 7,044 4,900 2,100 I `k t901 4,900 I z � TOTAL 9,089 1,815 7,400 3,660 7,400 7,400 PARAMEDICS-305 390 Contractual Services 300 3,296 0 3,296y5_QQ= 4,500 407 Printing/Reproduction 29 500 50 100 433 Maint.8t jRepair,Radio 1,200 1,500 434 Maint.,Dept Equip 3,882 5,100 1,500 4040= 4,100 TOTAL 4,182 3,325 5,600 6,046 10,100 10,200 EMERGENCY SERVICES-306 276 381 Rental E se "` _ - - -- 277 700 400 400 _ -'" Gq r �„+ U; 390 Contractual Services 700 850 4Dz 250 407 Printing 1,377 1,317 1,6005 47 600 1,400 x, rOU`434 Maint.,Dept Equip 1,017 1,048 1,200 200 1,000 ". 7. a TOTAL 2,670 2,642 4,200 2,856 3,700 2,260 CUTS-FR.XLS 1 4/21198 11:04 AM FIRE DEATMENT CONTRACTUAL SERVILcS ACCOUNTS <--- -Historical Data---- --> <----Pro osed M1998/99 Estimated Acct. Actual Actual Budget Actual �ReguNo. Personal Services FY 94/95 FY 95/96 FY 96/97 FY 96/97 FYI97198- HAZMAT RESPONSE-308 _ 381 Rental Expense 913 ` '� � m�''w 228 1,000 385 -r N•;--�rya�5 -385 390 Contractual.Services ----- -- 500 405 fir«"'k300. 500 `'r_ 403 Contr.Svcs.,Med. 5,500 3,300 6,600 6,600 "":.. : fi 6Q0 6,600 - :; 434 Maint.,Dept Equip 579 3,003 2,850 2,000 r_: _. 42d0 4,200 TOTAL 6,992 6,631 10,950 9,390 11,685 11,685 EMERGENCY AMBULANCE-315 381 Rental,Expense 1,526 1,176 2,000 900 �.9.20-•4,0.'s 1,600 '�k :=:ram--• -�`. 390 Contractual Services 500,706 508,815 525,000 570,183 - ::-a = 653,428 3,550 403 Contractual,Medical 730 16,875 3,400 3,000 � f3Q 434 Maint.,Dept.Equipment „yr 5,000 1,500 "y��3.� QU(?_ 2,100 TOTAL 502,962 626,866 536,400 676,683 629,213 660,678 1 PETRO CHEMICAL-316 381 Rental Expense �_ 30 = 37,200 388 Software 54' 550 . :.wyr_ P ;:: 390 Contractual Services =<'% = =22�600� 22,000 407 Printings T ©Q 800 434 Maint,Dept Equip `==` , 438 Microcomputer Maint. = 240 TOTAL - - - - 61,290 61,890 TOTAL:FIRE DEPT. 702,683 790,238 1,665,074 1,638,662 1,675,170 1,617,710 CUTS-FR.XLS 2 4/21198 11:04 AM ATTACHMENT #7 ATTACHMENT 7 SELF INSURANCE FUND SUMMARY The current year budget for outside legal costs in the Liability Insurance fund is $525,000. Our current estimate of the total fees for the year is $825,000. Outside Legal Fees— Liability Insurance Fund Fiscal Year Expended 1990/91 $243,323 1991/92 666,828 1992/93 589,432 1993/94 1,323,818 (15 months) 1994/95 426,528 1995/96 489,906 1996/97 528,067 1997/98 est 825,000 (525,000 budgeted) As pointed out by the City's outside auditor's for 3 years in a row, the cash reserve in our Insurance fund is inadequate. The current year budget is the first year of a multi-year plan to replenish these reserves. Attached is a chart showing the decline of cash reserves during the budget cutbacks of prior years, along with the planned increases in those reserves in the future years. FUNDS/g:bob/budget 3 05/28/98 8:06 AM Self Insurance Funds - Cash Reserves 7� $10,000 $9,413 $9,051 $9,000 $8,264 $8,000 $7,237 $7,000 - $6,609 $6,500 $6,960 $5.599 M $6,000 Estimated to V C $4,500 $5,000 13,562 $4,000 $3,500 M $3,000 $2,000 $1,755 ow $2,000 $1,000 $20 $0 iLLid E - ($242) ($130) ($1,000)- 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Fiscal Year Planned Inthist Self Insurance Funds 5/27/98 ATTACHMENT #8 j* RAFT' CITY OF HUN ON BEACH INTER OFFICE CONWUNICATION OFFICE OF THE CITY TREASURER To Ray Silver, City Administrator From Shari L. Freidenrich, City Treasurer Ron Lowenberg, Police Chief Date May 22, 1998 Subj ect MSI False Alarm Fee Charges The Police Department and Treasurer's Office met this.last week to discuss the false alarm program. As outlined in the memo to you from Chief Lowenberg dated April 23, 1998 (copy attached), the revenue has gone up from $167,974 in 1995/96 (annual) to $406,762 in 1997/98 (six-month period). This increase is partially caused by increased fees, but also by an increased number of false alarms. The Police Department and Treasurer's Office have not had an increase in personnel resources to handle the increased activity. This has had a negative impact in timeliness of billing and collection. With the proposed increase in fees, which is expected to generate an additional $110,200 revenue annually, our two departments are proposing the following to manage this program: 1. Add one 20-hour per week recurrent employee (Police Clerk Senior, Job Code 6654) to download billing information weekly and send out weekly notices for alarm violations. Estimated Personnel Cost FY 97198 $ 5,300 (four months) Estimated Personnel Cost FY 98199 $16,000 Estimated Postage Cost(annually) $ 600 2. Upload Police Department information weekly versus monthly. No significant impact on Information Systems. 3. Request that"False Alarm" cards be hung on doors in accordance with City ordinance at time of response (see attached). Please call me if you would like to discuss this further. SLF:lb xc: Bob Franz, Deputy City Administrator ATTAC H M E N T #9 Attachment 9 APPROVED BUDGET AMENDMENTS (First 2 Quarters) One-Time Costs: PERSONNEL OPERATING CAPITAL TRANSFERS TOTAL Record CNOA Bgt. 14,776 741 15,517 El Nino Preparation 240,066 116,355 356,421 Main Street Improvements 5,000 5,000 EIR Shea Homes 75,910 75,910 Legal,OC vs Lynch 10,000 10,000 IIMP Implementation 100,000 100,000 Waterfront Development 60,000 60,000 McDonnell Business Park 25,650 25,650 Sewer Storm Drain Maint. 250,000 250,000 Microfilm Bldg.Plans 7,000 7,000 High Pressure Water Cleaning 4,195 4,195 Pier Plaza Ticket/Parking Plan 125,000 225,000 350,000 CNOA Metro Cities Merge 8,015 8,015 Meadowlark Dev.Reimb. 15,000 15,000 Reg. Svc.Programs 69,000 69,000 Damaged Attendant Booth 5,398 5,398 Org.Coast River Park 5,000 5,000 Passport Program 3,000 3,000 HBUHSD/Home Depot 385,000 385,000 DUI Education/Enforcement 20,000 20,000 Main Promenade Consultant 12,000 12,000 California Coastal Comm. 30,000 30,000 State Public Library Allocation 46,928 46,928 HCP Equestrian Improvements 80,000 80,000 Misc. 15,000 15,000 Library Chiller 302,000 302,000 Sub Total-One-Time Costs $75,000 $1,051,540 $1,128,753 $741 $2,256,034 Ongoing Costs: PERSONNEL OPERATING CAPITAL TRANSFERS TOTAL Non-Assoc. Salary Increase 40,377 40,377 MEA Salary Increase 358,447 358,447 Outside Legal Services 300,000 300,000 Seal Downtown Areas 17,000 17,000 Part Time Personnel 12,500 12,500 DUI Education/Overtime 20,000 20,000 Additional Leadworker 25,590 25,590 Sub Total-Ongoing Costs $456,914 $317,000 $0 $0 $773,914 TOTAL Amendments $531,914 $1,368,540 $1,128,753 $741 $3,029,948 Bgtamend 5/28/98 9:17 AM ATTACHMENT # 10 ATTACHMENT 10 PIER PLAZA FUNDING ANALYSIS Total Costs (including change orders) $5,299,000 Total Paid to date (thru May 98) 4,574,676 Remaining Contractual Payments $724,324 Less Funds available -$317,661 Contractual payments shortfall $406,663 Plus Contingency 43,337 Requested new Funding 50 000 FUNDS/g:bob/budget 1 05/28/98 8:06 AM CITY OF HUNTINGTON BEACH • INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Honorable Mayor Dettloff and Members of the City Council FROM: Gail Hutton, City Attorney DATE: May 13, 1998 SUBJECT: City v. British Petroleum-Settlement Funds Attransco has appealed the jury's verdict rendered in favor of the City in the oil spill case. There are several motions pending regarding the appeal, attorney's fees,the Clerk's transcript, and other matters. One consequence of the appeal is that it will be much more difficult to disburse the settlement funds that have been paid by the other defendants. We have noticed that some of the funding for the Pier Plaza project is anticipated to come from the settlement money paid by the other defendants. Although we are confident that this money will be available in the future, it should not be relied upon until the appeal has been resolved and the City has taken actual receipt of the funds. Gail Hutton City Attorney 4/s:4-98Memos:M&CC0513 ATTACHMENT # 11 ATTACHMENT 11 OTHER POTENTIAL BUDGET AMENDMENTS (not recommended) SeaPointe Beach Access -$70,000—The city applied for a Federal Grant through the State Lands Commission to install this access on the beach side of Pacific Coast Highway where SeaPointe intersects Pacific Coast Highway. The grant was approved and scheduled for funding in the July 1, 1998 through June 30, 1999 funding cycle. However, State Lands now says that because of a decrease in their federal funding, our project will not be recommended for funding until the following funding cycle (July 1, 1999 through June 30, 2000). This access is deemed important for public safety and access to the beach at this new intersection. To complete this project by the fall of 1998, instead of the fall of 1999, a $70,000 General Fund budget amendment would be required. Unfortunately the grant will not reimburse the City next year if we complete the project this year. Mobile Home Survey - $2,025 —The firm Lawrence Research has provided a cost estimate of $1,500 to survey two additional mobile home parks to supplement the survey previously submitted to the City. In addition, $525 is needed to reimburse costs not included in the prior contract with Lawrence Research. Salary Adjustment Library Pages - $6,000 — The current city salaries for all employees meets the Federal minimum wage requirements. The State of California, however, has increased the minimum wage in California to $5.75 per hour which is higher than the Federal minimum wage of $5.15 per hour. The City is exempt from the State minimum wage requirements. Library pages are paid below the new State minimum wage and an estimated $6,000 would be needed this year to increase their salaries to the State minimum wage (annual cost: $20,000) FUNDS/gftb/budget 2 05/28/98 8:06 AM ATTACHMENT # 12 Attachment�� �Attachment "m. Liabilities/ProjectsUnfunded and Undeifunded UnderFunded Liabilities Liability Fund $6,067,000 Unfunded/Underfunded as of 9/30/97 Potential Litigation 1,200,000 Equipment Replacenint Fund 7,000,000 Estimated Underfunded amount per IIMP Supplemental Retirement Fund 5,592,000 Unfimded amount as of 9/30/97 $25,394000 Information Syste Computer Systems Upgrade $3,500,000 Optical Imaging Hard/Software/training 170,000 Remote Acess Hardware/Software 30,515 Disaster Recovery Service Plan 02,632 Division Vehicle(Infosys) 20,000 Citywide Internet Access 204,400 $4,007,547 Fire Department Driveway Replacement $30,000 Fire Station Roof Replacements 11,000 Fire Station 42 Settling Repairs 75,000 Fire Station#3 Modifications 75,000 Fire Station 45 Captains Office 9,000 Fire Station#5 Captains Office 15,000 Fire Station#4 Turnout Lockers 8,000 Personal Projector 8,000 (12)Pentium Computers 40,000 City Hall Fire Sprinkler System 750,000 Install a fire prevention system. None exists. $1,021,000 Police Departmen Conference Room 25,000 Private meeting for executive management. Front Desk Remodel 20,080 Improve security 6v adding winlovvo/dooro. Expand Property/Parkmg Area 975,000 Provide needed space and parking. Police Dispatch System 708,008 Estimated unfunded amount Sub-Total $1,720,000 Community Services Replace Trash Bin. $8,500 Equipment rusting and deteriorated. Beach Service Road Repair 35,000 Deteriorated road presents u liability to City. Beach Maintenance Security Fozuo ],OOO Storage lot at Newland/Edison Plant. Pier Deck Sealing 60,000 Improves effectiveness mfmaintenance. Edison field 100,000 South Beach Improvements 4,800,000 Youth Sports Fields 2,200,000 U Sub-TotalU $6,408,500 U U Unfunded Page l of 2 5/28/98 Attachment 12 Unfunded and Underfunded Liabilities/Projects . ................. .......... ...... ....... ::-:-:..................... .. . a.. V Pr. ............... .......X ......u.....n.... .t ..................................... .........0.......... m.. eI ...........r.. p ........................................ .. ....... ... ....... J!nhlec Works -Maintenance Proiects Civic Center Reseal/Paint $250,000 Repair, reseal, &paint Civic Center Complex. Civic Center Chillers/Cooling Tower 500,000 Required replacement of R-I I Chillers. Civic Center Fire/Security System 200,000 Install system in City Hall Civic Center Roof Replacement 250,000 25 year old roof has passed life expectancy. Central Library Roof Replacement 180,000 23 year old roof has passed life expectancy. Central Library Boiler Replacement 40,000 Aging boiler needs replacement. Main Street Library Heating System 56,000 Aging system fails and damages facility. Sub-Total $1,476,000 Total One Time Needs $40,025,047 Unfunded/Underfunded Liabilities &Projects Public Works- Unfunded Annual and/or multi-year Maintenance Needs Central Library Carpet Replacement $20,000 Replace areas of deteriorated carpet. Central Library Air System 10,000 Clean system-reduce energy/maintain quality Civic Center Plaza Area Repairs 15,000 Replace damaged and sunken concrete. Civic Center Carpet Replacement 20,000 Replace areas of deteriorated carpet. Civic Center Acoustical Tile Ceilings 17,000 Replace areas of deteriorated ceilings City Yard Heaters 20,000 Replace inefficient and costly to repair system. City Yard ADA Compliance 20,000 Modifications mandated by Federal Law. City Yard Air System 20,000 Clean system-reduce energy/maintain quality City Yard Carpet Replacement 10,000 Replace areas of deteriorated carpet. City Yard Roof Replacements 50,000 25 year old roofs have passed life expectancy. City Yard Ceiling/Lights 15,000 Replace deteriorated ceilings and lights. Wastewater Manhole Repair 130,000 Repair&strengthen manholes. Wastewater Lift Station Repair 450,000 Repair lift station deficiencies. Wastewater Pipeline Repair 570,000 Repair lines in danger of failure. Highway Landscape Irrigation 501000 Continue installation of automated systems. Underfunded Annual Needs $1,417,000 IIMP list of Unfunded Needs Sewers $140,000,000 20 year unfunded needs -per IIMP Sidewalks 20,000,000 20 year unfunded needs -per IIMP Block Walls 1,000,000 20 year unfunded needs -per IIMP Alleys 7,000,000 20 year unfunded needs -per]IMP Street Trees 7,000,000 20 year unfunded needs -per IIMP Buildings 26,000,000 20 year unfimded needs -per IIMP Drainage Pump Stations 14,000,000 20 year unfimded needs -per IIMP Street Lighting/Traffic Signals 9,000,000 20 year unfunded needs -per IIMP Residential Street Rehabilitation 26,000,000 20 year unfunded needs -per IIMP Artertial Highways 21,000,000 20 year unfunded needs -per IIMP Sub-Total $271,000,000 Unfunded Page 2 of 2 5/28/98 ATTACHMENT # 13 CITY OF HUNTINGTON BEACH FISCAL POLICIES Ongoing expenditures should be supported by ongoing revenues. General Fund reserves should be maintained at no less than 3% with a 5% reserve being desirable. No new capital improvements should be approved until associated operating costs are funded by recurring revenues. Each enterprise fund should reflect the true cost of operation including direct and indirect costs supported by the General Fund. If the City's budget is balanced, General Fund reserves in excess of 5% should be transferred to the Capital Improvement Projects Fund on an annual basis. To implement the above fiscal policy statements, a phase-in period will be required. Council/Agency Meeting Held: Deferred/Continued to: b i S/9 8 C �a / 6 ❑ Approved ❑ Conditionally Approved ❑ Denied 0q,,-, 7 City Clerk's Signature Council Meeting Date: June 1, 1998 Department ID Number: AS 98-013 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City Administrator&V*LP PREPARED BY: ROBERT J. FRANZ, Deputy City Administrator . SUBJECT: REVIEW AND APPROVAL OF MID-YEAR BUDGET SPORT AN BUDGET AMENDMENTS Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Several amendments to the 1997/98 Budget are needed based on a mid-year review of departmental needs. Funding Source: As indicated. Recommended Action: 1. Approve an increase to the General Fund Budget by $162,800 and other funds budgets by $760,000 as indicated in Attachment 1. 2. Approve the "designated costs" of $5,335,000 for the General Fund as indicated in Attachment 1. Alternative Action(s): =' 1. Do not approve the mid year budget amendments. �mw 2. .Approve some of the amendments. 3. Request further review prior to City Council action. Analysis: ' 4µ MID YEAR BUDGET REPORT The Quarterly Budget Report for the second quarter of Fiscal Year 1997/98 was recently distributed to the City Council. General Fund revenue estimates have been increased $311,450 compared to the first quarter report, and are up over $3 million from the original budget estimates. About $1.4 million of the increased estimated revenue is from one time receipts such as building permits, oil spill legal fee reimbursement, and Orange County bankruptcy returns. After completion of the Quarterly Report, the City Council approved new and increased fees which are projected to further increase current year revenues by $250,000. REQUEST FOR COUNCIL ACTION MEETING DATE: June 1, 1998 DEPARTMENT ID NUMBER: AS 98-013 Budget amendments of $3.0 million have been approved so far this year, including roughly $400,000 for labor settlements and amendments for one-time costs totaling $2,256,034. Attachment 9 is a listing of approved budget amendments. Ongoing revenues and expenses are projected to be balanced for Fiscal Year 1997/98, due to improving revenues and ongoing expense reductions due to vacancies in permanent positions. Due to the need to plan for the following one-time expenses that could occur within the next few months to a year, staff is recommending that General Fund reserves be designated for these costs. The proposed "designated costs" of the General Fund reserve are as follows: Proposed Designated General Fund Costs: Potential Labor Settlements $ 785,000 Civic Center maintenance 250,000 Classification Compensation Study 100,000 Information Systems Needs 3,500,000 Computer Aided Dispatch System 700,000 Total $ 5,335,000 As indicated, it is recommended that the City Council "designate" $5,335,000 of the current General Fund Reserve for these potential General Fund costs. Staff believes it is important that the General Fund Reserve not be reduced to the point that the above costs cannot be funded. The General Fund Reserve is not projected to drop below the City Council Policy of 3% even if all of these "designated" General Fund costs occur during this fiscal year. Attachment 12 is a more complete list of unfunded and Underfunded Liabilities and Projects. PROPOSED BUDGET AMENDMENTS As discussed with the City Council when a moratorium on General Fund budget amendments was adopted in March, and as per the City Administrator's memo of March 27, 1998 (Attachment 2), the mid-year budget report is intended to address amendments that do not necessarily meet the criteria of the moratorium. Following is a brief description of the budget amendments that are recommended as a part of this Mid-Year Review: 1. Training for the Safe Streets Now Program -- $10,000 is needed as described in the attached memorandum from Police Chief Ron Lowenberg, (Attachment 3). This will provide two days of instruction from the founder of the Safe Streets NOW Program. This training program will enable the City's Team COP and the Nuisance Task Force to educate the public on their civil options in regards to nuisance properties in their neighborhoods. BgtRpt.doc -2- 05/28/98 9:42 AM REQUEST FOR COUNCIL ACTION MEETING DATE: June 1, 1998 DEPARTMENT ID NUMBER: AS 98-013 2. Information Systems Needs -- $80,000 is needed for outside contract assistance relating to Information Systems operations. This will allow the implementation of the new Water Application Fee of $25 which will involve programming changes to existing Information Systems computer programs at a cost of approximately $20,000. In addition, the Information Systems Division has requested outside contract assistance of $60,000 for assistance through the remainder of the year. 3. Blufftop Bike Path Relocation — $20,000 -- Due to erosion in the area, a portion of the bike path along the blufftop needs to be relocated. 4. Urban Forest Analysis - (Park Acquisition and Development Fund) $10,000 - - Originally there was a cost estimate of $15,000 to conduct this preliminary study which has been reduced to $10,000 because an oil remediation consultant is willing to perform this portion of the task at no cost to the City. The $10,000 cost is for soils testing and lab analysis. Attachment 5 includes the proposals from two firms and prior staff and City Council communications on this project. Staff recommends this cost be funded out of the PA & D fund. 5. City Treasurer Staffing - $8,500 -- Due to the additional collection efforts required by the Treasurer's Office related to the new $25 Water Application Fee recently approved by the City Council, the City Treasurer has requested that a permanent Customer Service Representative position be added to the budget to replace one 1/2 time temporary positions. This would involve an additional annual cost of $25,000. The current year additional cost is $8,500 for approximately four months. These costs are offset by new fee revenue. 6. Oil Well Maintenance - $39,000 -- A serious oil leak occurred and emergency repairs were required on the oil flow line from City Hall to the Miley-Keck Tank Farm. The petro-chemical budget of the Fire Department does not have a contingency fund for emergency repairs of city wells and cannot absorb the $39,000 additional costs for the emergency repairs. (Attachment 6) 7. Legal Costs — (Liability Fund) - $300,000 -- $525,000 was budgeted for the current year in the Liability Self Insurance Fund for outside legal costs. That budget has been completely expended through seven months of the fiscal year and we anticipate needing an additional $300,000 to complete the current fiscal year obligations for outside legal costs. This cost is funded by the Liability Self Insurance fund. Attachment 7 summarizes the status of our self insurance fund reserves. 8. Pier Plaza (Pier Fund) - $450,000 -- When the City Council awarded a contract for the construction of the Pier Plaza Project, long term bonds were issued to fill the gap of funds available compared to funds needed. One of the available funding sources was $800,000 anticipated settlement from the oil spill litigation BgtRpt.doc -3- 05/28/98 9:42 AM REQUEST FOR COUNCIL ACTION MEETING DATE: June 1, 1998 DEPARTMENT ID NUMBER: AS 98-013 (1990 American Trader oil spill off the coast of Huntington Beach). Although these funds have been deposited in a trust account that is controlled by the cities of Huntington Beach, Newport Beach, the County of Orange and the State of California, the Committee controlling the release of funds has not voted to release the funds, until after the current appeal process has been completed. When the Pier Plaza construction contract was awarded it was anticipated that these funds would be released in early 1998. Now that the construction project is nearing completion, we have prepared a reconciliation of the amounts needed to complete our contractual obligations and there is a shortfall of $450,000 of funds needed compared to those available due to the non-receipt of the oil spill trust funds. Therefore, it is recommended that the City Council authorize the use of a $450,000 loan from the Pier Fund to the Pier Plaza Project to be repaid from the oil spill litigation proceeds. 9. False Alarm Billing Costs - $5,300 — The increased billing activity for false alarms has created more workload in the Police and Treasurer's Departments to process billings. A 20 hour per week temporary employee is needed for this workload increase at an annual cost of $16,600. The current fiscal year budget amendment for the remaining four months is $5,300. This cost is offset by new related new revenue. See Attachment 8. Attachment 11 lists other potential budget amendments that are not recommended as part of the mid-year review. GENERAL FUND RESERVE If the recommended actions in this RCA are approved, the projected General Fund reserve at the end of fiscal year 1997/98 would be an estimated $3.2 million or 3.0% of the General Fund budget. Following is a summary of the 1997/98 Fund Balance (Reserve) for the General Fund: Beginning Fund Balance (audited) $ 9,183,000 Plus: Estimated Total Revenues* $ 105,982,740 Less: Estimated Total Expenses* 104,655,957 Projected 1997/98 Surplusm- 1,326,783 Less: Self Insurance Transfer (approved) (1,800,000) Less: Recommended Budget Amendments (162,800) Less: Recommended "Designated Costs" (5,335,000) Estimated Ending Fund Balance $ 3,211,983 *Includes one-time revenue and one-time expenses Environmental Status: Not applicable. BgtRpt.doc -4- 05/28/98 9:42 AM REQUEST FOR COUNCIL ACTION MEETING DATE: June 1, 1998 DEPARTMENT ID NUMBER: AS 98-013 Attachment(s): City Clerk's Page Number No. Description 1. Summary of Mid Year Budget Amendments 2. March 27, 1998 Memo— Budget Amendments 3. Safe Streets NOW Memo 4. City Treasurer Memo (Staffing Needs) 5. Urban Forest Information 6. Fire Department Budget Information 7. Self Insurance Fund Summary 8. False Alarm Billing Costs 9. Budget Amendments Previously Approved 10. Settlement Funds— Pier Plaza 11. Other Potential Budget Amendments 12. Unfunded and Underfunded Liabilities and Projects RCA Author: Robert J. Franz BgtRpt.doc -5- 05/28/98 9:42 AM Mid-Year Budget Report - Agenda Item F-1 RECEIVED CITY CLERK CITY OF HUNTINGTON BEACH.CA a , - I 12 lu Mid-Year Budget Report June 1 , 1998 Mid-Year Budget Report Slide Presentation Review of Revised Revenue and Expense estimates for the General Fund Review of Recommended General Fund "Designated Costs" Recommended Budget Amendments - General Fund $162,800 - Other Funds $760,000 Slide 2 June 1, 1998 1 Mid-Year Budget Report - Agenda Item F-1 Estimated Increased Revenue Compared to Adopted Budget *November 1997 Revenue Review • Increased Ongoing Revenue +$1,500,000 (Increased revenue was used to modify City position on Labor Relations issues) • Increased One-Time revenue(Dev.Fees) +950,000 ,*1st Quarter Budget Review +499,280 • Most of Increase was One-Time Revenue (Oil Spill legal fee reimbursement, Bankruptcy returns etc.) *Mid-Year Budget Review +311,450 Slide 3 General Fund Revenue Estimates Adopted Budget vs. Mid-Year Property Tax 1$26.6 Sales Tax $ 9.0 183 Utility Tax 1$13.8 Permits 4 $5.5 " 8 0 Mid-Year Estimate Fines -$2 4• 0 Adopted Bud et Intergov. 9.6 Other 527. $0 $5 $10 $15 $20 $25 $30 $In Millions Slide 4 June 1, 1998 2 Mid-Year Budget Report - Agenda Item F-1 Development Related General Fund Fee Revenue $7 Projected— $6 $5.9 $5.9 $5 $5.0 Vl C o $4 c $3 $2 $1 $0 93 94 95 96 97 98 99 100 101 102 '03 Slide 5 General Fund Expense Estimates Budget vs. Mid-Year Salary Savings: an estimated $1 .1 million savings will occur due to vacancies Labor Relations Agreements • Approved agreements add $398,824 to the 1997/98 General Fund budget • Potential agreements with other employee groups could add $785,000 Slide 6 June 1, 1998 3 Mid-Year Budget Report - Agenda Item F-1 General Fund Expense Estimates Budget vs. Mid-Year (cont.) 1997/98 General Fund Budget Amendments: • El Nino preparations $606,421 • Reimbursable Costs 6419560 Emergency Expenses 302,000 Legal Costs 310,000 • Pier Plaza 3509000 • Other 4219143 Slide 7 State Take-Away of City Funds $7 $ . Total= 37.7 M1111on since 1991 $ .5 $ .5 7 $6 $ .5 $5 $3 r $0.3 ' $0 1991 1992 1993 1994 1995 1996 1997 1998 Slide 8 June 1, 1998 4 Mid-Year Budget Report - Agenda Item F-1 Unfunded Liabilities Liability cases $6,067,000 Workers Comp. cases 5,535,000 Equipment Replacement 7,000,000 Potential Litigation 1,200,000 Supplemental Retirement 5,592,000 Total $25,394,000 Slide 9 Self Insurance Funds Cash Reserve Projections $8- $In Millions Projected $7 $6 5 $6 , $5 , $ 5 $4 - $3 5 $3 2 8 $2 1 8 , $1 0.0 $o ($o.z) ($0.1) -$1 92 93 94 95 96 97 98 99 '00 '01 '02 Slide 10 June 1, 1998 s Mid-Year Budget Report - Agenda Item F-1 nfunded Needs - a Sample :Technology Needs <:;IIMP: (20 Year estimate) •Police Dispatch Sys. $700,000 Replacement/Rehab only: •Computer Needs 3,500,000 •Sewers $140,000,000 ;Capital Projects •Sidewalks/Curbs 20,000,000 •South Beach 7,000,000 •Block Walls 10,000,000 -Sports Fields 1,200,000 •Alleys 7,000,000 -Maintenance Needs(immediate) •Street Trees 7,000,000 -Civic Ctr.Rehab. $250,000 •Arterial Highways 21,000,000 • Civic Center Roof 250,000 •Residential Streets 26,000,000 •Civic Center Air Cond. 500,000 •Lights/Signals 9,000,000 •Library Roof 180,000 •Pump Stations 14,000,000 •Beach Svc.Road 35,000 •Buildings 26,000,000 •Pier Deck Sealing 60,000 •Bridges 400,000 Slide 11 Unfunded Infrastructure Needs (2o year estimate) Construction $22 $152 7�1 Replacement 39 $149 ■Total Unfunded Needs Maintenance � �$54 Critical Unfunded Needs $/n millions$0 $50 $100 $150 $200 $250 $300 $350 $400 Slide 12 June 1, 1998 6 Mid-Year Budget Report - Agenda Item F-1 Recommended "Designated Costs" of General Fund Recognition of costs likely to occur within 6 to 12 months • Information Systems $3,500,000 • Civic Center Rehabilitation 250,000 • Classification Study 100,000 • Dispatch System 700,000 • Labor Settlements 785,000 Total $5,335,000 Slide 13 Recommended Mid-Year Budget Amendments General Fund: • Training: Safe Streets NOW $10,000 • Information Systems 80,000 • Bikepath Relocation 20,000 • Treasurer Staffing 8,500 • False Alarm Billing Costs 5,300 • Oil Well Emergency Repairs 39,000 Total $162,800 Slide 14 June 1, 1998 7 Mid-Year Budget Report - Agenda Item F-1 Recommended Mid-Year Budget Amendments - Other Funds Purpose Amount Fund Legal Costs $300,000 Insurance Urban Forest Analysis 10,000 PA&D Pier Plaza (loan) 450,000 Pier Slide 15 General Fund Reserve (Fund Balance) $10 ❑Designated $9 ❑Undesignated , $8 $7 o $6 a$ '� $5.3 $5 = $9�2 c $4 $8.2 $1 $3..5 $3 2 $0 93 94 95 96 97 98(est.) Slide 16 June 1, 1998 g Mid-Year Budget Report - Agenda Item F-1 Mid-Year Report Summary Revenue Estimates are higher than originally projected by about 3.2% due to Development activity and improving Economy + Ongoing Expenditures are under control The City has significant One-Time and Ongoing Unfunded needs Slide 17 June 1, 1998 9 RCA ROUTING SHEET INITIATING DEPARTMENT: Administrative Services SUBJECT: Review and Approval of Mid-Year Budget Report and Budget Amendments COUNCIL MEETING DATE: June 15, 1998 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 Attomey) 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) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Attached Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION F.OR MISSING.ATTACHMENTS :REVIEWED RETURNED FORW,DED Administrative Staff ( ) ( ) Assistant City Administrator (Initial) ( ) City Administrator (Initial) ( ) ( ) City Clerk ( ) EXPLANATION FOR RETURN OF ITEM: Only)(Below Space For City Clerk's Use RCA Author: RCA ROUTING SHEET INITIATING DEPARTMENT: Administrative Services SUBJECT: Review and Approval of Mid-Year Budget Report and Budget Amendments COUNCIL MEETING DATE: June 1, 1998 RCA ATTAxC,HMENTS 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 Attomey) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attomey) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Attached 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.RETURNxOF ITEM (BelowOnly) RCA Author: Mid-Year Budget Report - Agenda Item F-1 (carryover from 6/1/98) Mid-Year Budget Report June 15, 1998 r Mid-Year Budget Report Slide Presentation m Review of Revised Revenue and Expense estimates for the General Fund Review of Unfunded Needs Recommended Budget Amendments • General Fund $162,800 • Other Funds $760,000 Slide 2 June 15, 1998 ` 1 d Mid-Year Budget Report - Agenda Item F-1 (carryover from 6/1/98) Estimated Increased Revenue Compared to Adopted Budget November 1997 Revenue Review • Increased Ongoing Revenue +$1,500,000 (Increased revenue was used to modify City position on Labor Relations issues) • Increased One-Time revenue(oev.Fees) +950,000 1st Quarter Budget Review +499,280 - Most of Increase was One-Time Revenue (Oil Spill legal fee reimbursement, Bankruptcy returns etc.) Mid-Year Budget Review +311,450 Slide 3 General Fund Revenue Estimates Adopted Budget vs. Mid-Year Property Tax $26.6 $26.2 Sales Tax -$ 9.0 w - a 183 Utility Tax $ 3.8 $1 .6 Permits n. $5.5 4.8 ❑Mid-Year Estimate Fines $2 O Adopted Budget Intergov. 9.6 _ $2 .5 Other �_ .. g27. $0 $5 $10 $15 $20 $25 $30 $In Millions Slide 4 June 15, 1998 2 Mid-Year Budget Report - Agenda Item F-1 (carryover from 6/1/98) Development Related General Fund Fee Revenue $7 Current Year —Projected— S6 $5.9 $5.9 $5 $5.0 H C $4 , e $3 . $2 S1 $0 93 94 95 96 97 98 99 '00 '01 '02 '03 Slide 5 General Fund Expense Estimates Budget vs. Mid-Year Salary Savings: an estimated $1 .1 million savings will occur due to vacancies Labor. Relations Agreements - Approved agreements add $398,824 to the 1997198 General Fund budget - Potential agreements with other employee groups could add $785,000 Slide 6 June 15, 1998 3 Mid-Year Budget Report - Agenda Item F-1 (carryover from 6/1/98) General Fund Expense Estimates Budget vs. Mid-Year (cont.) 1997/98 General Fund Budget Amendments: El Nino preparations $606,421 Reimbursable Costs 6419560 Emergency Expenses 3029000 Legal Costs 310,000 Pier Plaza 350,000 Other 4219143 Slide 7 Property Tax - Distribution of Basic 1 % Levy N K-12 Schools 44.3% Community Colleges 9.3% Othe 3.8°/ tate(For Schools) County 16.5% city 10.5% 15.6% Slide 8 June 155 1998 4 Mid-Year Budget Report - Agenda Item F-1 (carryover from 6/1/98) State Take-Away of City Funds $7 Total= 37.7 Million since 1991 $ •5 $ .5 $ .7 $6 $ .5 $5 $4 3 $2 ` t F t $1 $0.3 $0 1991 1992 1993 1994 1995 1996 1997 1998 Slide 9 Unfunded Liabilities Liability cases $6,067,000 Workers Comp. cases 5,535,000 Equipment Replacement 7,000,000 Potential Litigation 1 ,200,000 Supplemental Retirement 5,592,000 Total $2593949000 Slide 10 June 15, 1998 s Mid-Year Budget Report -Agenda Item F-1 (carryover from 6/1/98) Self Insurance Funds Cash Reserve Projections $ Millions $8 Projected $7 E $6 5 $6 $5 i &A5 $4$3 218 $1 # 0.0 $0 -$1 ($0.2) ($0•1) 92 93 94 95 96 97 98 99 '00 '01 '02 Slide 11 Unfunded Needs - a Sample Police Dispatch Sys. $850,000 Computer Needs 3,500,000 South Beach 7,000,000 Sports Fields 1,200,000 Civic Ctr. Rehab. $250,000 Civic Center Roof 250,000 Civic Center Air Cond. 500,000 44 Library Roof 180,000 Beach Svc. Road 35,000 � Pier Deck Sealing 60,000 Slide 12 June 15, 1998 6 Mid-Year Budget Report - Agenda Item F-1 (carryover from 6/1/98) Unfunded Needs - IIMP (20 Year Estimate of Replacement/Rehab Needs only) �> Sewers $140,000,000 Sidewalks/Curbs 20,000,000 Block Walls 10,0009000 Alleys 7,000,000 Street Trees 7,000,000 Arterial Highways 21,000,000 Residential Streets 26,000,000 Lights/Signals 9,000,000 Pump Stations 14,000,000 Buildings 26,000,090 lade 13 Unfunded Infrastructure Needs (20 year estimate) Construction $22 $152 Replacement 39 . $2 7 Maintenance $149 ■Total Unfunded Needs : $54 ®Critical Unfunded Needs $In M////ons$0 $50 $100 $150 $200 $250 $300 $350 $400 Slide 14 June 15, 1998 Mid-Year Budget Report - Agenda Item F-1 (carryover from 6/1/98) General Fund - Potential New Costs Costs likely to occur within 6 to 12 months • Information Systems $3,500,000 • Civic Center Rehabilitation 250,000 • Classification Study 100,000 • Dispatch System 850,000 • Potential Labor Settlements 785,000 Total $5,485,000 Slide 15 Method of Funding - Costs anticipated within 6-12 Months First priority is to fund ongoing costs from Labor settlements • These costs have been estimated for 1997/98 and 1998/99 Budgets One Time costs • CIP Fund - 1998/99 Budget will include recommended projects • General Fund - Emergencies and Costs offset by related Revenues Slide 16 June 15, 1998 8 Mid-Year Budget Report - Agenda Item F-1 (carryover from 6/1/98) City Fiscal Policies Ongoing expenditures should be supported by ongoing revenues. ?: General Fund reserves should be maintained at no less than 3%with a 5% reserve being desirable. No new capital improvements should be approved until associated operating costs are funded by recurring revenues. Each enterprise fund should reflect the true cost of operation including direct and indirect costs supported by the General Fund. ?: If the City's budget is balanced, General Fund reserves in excess of 5%should be transferred to the Capital Improvement Projects Fund on an annual basis. Slide 17 General Fund Reserve Fiscal Policies require transfer of Reserve exceeding 5% to Capital Improvement Projects (CIP) Fund Current Year Reserve will exceed 5% by $3.2 Million on 9/30/98 (est.) • Staff recommends transfer of $3.2 million to CIP Fund -Allocate Funds for Projects as part of 1998/99 Budget amendment(City Council will review in August) Slide 18 June 15, 1998 9 Mid-Year Budget Report - Agenda Item F-1 (carryover from 6/1/98) Recommended Mid-Year Budget Amendments General Fund: - Training: Safe Streets NOW $10,000 - Information Systems 80,000 - Bikepath Relocation 20,000 - Treasurer Staffing 8,500 - False Alarm Billing Costs 5,300 - Oil Well Emergency Repairs 39,000 Total $162,800 Slide 19 Recommended Mid-Year Budget Amendments - Other Funds Purpose Amount Fund R Legal Costs $300,000 Insurance Urban Forest Analysis 10,000 PA&D Pier Plaza (loan) 450,000 Pier Slide 20 June 15, 1998 10 Mid-Year Budget Report - Agenda Item F-1 (carryover from 6/1/98) General Fund Reserve (Fund Balance) $1 O Transfer to CIP E $9 o Undeshwated $8 m Ul 7 F $3.2 -= o $6 3 $5 , $9 c $4 $8:2 $6 8 m v► $3 S6 2 $3.5 $p ' 93 94 95 96 97 98(est.) Slide 21 Mid-Year Report Summary 4. Revenue Estimates are higher than originally projected by about 3.2% due to Development activity and improving Economy Ongoing Expenditures are under control The City has significant One-Time and Ongoing Unfunded needs Slide 22 June 15, 1998 11