HomeMy WebLinkAboutUnbudgeted Expenditure - Change to Administrative Services B .:ITY OF HUNTINGTON BEA 1 � c_ M)VT11V1 01>v
MEETING DATE: March 19, 2001 DEPARTMENT ID NUMBER: AS 01-003
Council/Agency Meeting Held: 03-J1-o)
Deferred/Continued to:
�A proved ❑ Conditionally Appro ed ❑ De i d C166As Signature
C uncil Meeting Date: March 19, 2001 Department ID Number: AS 01-003
CITY OF HUNTINGTON BEACH
REQUEST FOR ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL
SUBMITTED BY: RAY SILVER, CITY ADMINISTRATOR
PREPARED BY: CLAY MARTIN, DIRECTOR OF ADMINISTRATIVE SERVICES
SUBJECT: CHANGES TO ADMINISTRATIVE SERVICES BUDGET
S tatement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue:
Over the last several years the Administrative Services Department has been increasing
its departmental workload without any augmentation to staff or available resources.
With the implementation of the new JD Edwards financial system, changes in the City
Medical plan enrollment, and the increased role of the Real Estate Services Division it
has become urgent to deal with several issues facing each division in the Administrative
Services Department.
Funding Source:
Unreserved General Fund Balance ($332,680) and Employee Medical Fund ($70,000).
Recommended Action:
Authorize the Director of Administrative Services to appropriate $332,680 from
Unreserved General Fund Balance and $70,000 from the Medical Insurance Fund to the
Administrative Services Departmental Budget.
Alternative Action(s):
Maintain current staffing levels and available resources.
Analysis:
Over the last several years, each division (Finance, Human Resources, Central
Services, Risk Management, Benefits & Payroll, Real Estate Services, and
Departmental Administration) in the Administrative Services Department has been
requested to take on many new roles without any augmentation to staff or resources.
Changes to AS Budget.doc -2- 3/9/01 11:"AM
1. I aC
REQUEST FOR ACTION F•
MEETING DATE: March 19, 2001 DEPARTMENT ID NUMBER: AS 01-003
The following proposed changes to the Administrative Services budget will allow the
department to increase productivity and job performance at a minimum cost and are
shown in detail as Attachment 1.
1. Departmental Administration - $20,000
2. Finance - $88,000
3. Human Resources - $42,500
4. Benefits & Payroll - $80,000
5. Real Estate Services - $40,000
6. Central Services - $10,000
7. Risk Management - $95,000
8. Information Systems - $27 680
Subtotal General Fund $332,680
Subtotal Insurance Fund $70 000
TOTAL $402,680
As approved by City Council in March 1998, supplemental appropriation must meet at
least one of the following criteria:
1. It is an unanticipated emergency
2. It is required to implement labor negotiations.
3. It is a new expense that is offset by related revenues.
All appropriations being requested as part of the Request for Council Action meet the
unanticipated emergency criteria unless otherwise noted. The heavy conservation
required by the electricity shortage in California carried with it a need to purchase
supplies such as battery-operated lanterns. The relocation of the majority of the
Administrative Services Department due to the asbestos on the first floor carried with it
a need to purchase a wide variety of basic office supplies and equipment to continue
operations (Item #1). The asbestos relocation also generated a greater than anticipated
need for employee physicals total $25,000 of the $95,000 requested in Item #7. The
amount requested associated with electricity conservation and asbestos relocation is
$45,000.
California's electricity crisis created another unanticipated expense when AES
submitted their application to retool units 3 and 4. The Real Estate Services Division
took the lead role on coordinating the City's effort regarding the AES expansion. This
had a dramatic impact on service levels within the division. The impact was especially
acute given that the Real Estate Services division has been chronically underfunded
relative to the services and responsibilities assigned to it. The requested augmentation
totals $40,000 for Real Estate Services (item #5).
Changes to the City's medical benefits that eliminated one of the two HMO's and
eliminated two-tiering resulted in an overall increase in enrollment in the City medical
plan of 20%. This increase in enrollment necessitates an increase in staffing
Changes to AS Budget.doc -3- 3/9/01 11:56 AM
REQUEST FOR ACTION
MEETING DATE: March 19, 2001 DEPARTMENT ID NUMBER: AS 01-003
requirement which is offset by revenue generated through a 20% increase in
"premiums" paid by new enrollees to the City's medical Plan. The requested
augmentation of $70,000 under Risk Management (item #7) is requested under the
criteria of a new expense offset by related revenue.
The implementation of the JD Edward's financial system has highlighted resources
deficiencies in the Finance (item #2), Benefits and Payroll (item #4), and Central
Services (item #6) Divisions. The requested augmentation involves staffing primarily.
All staffing referred to in these items are temporary. These positions will be filled
through contracts with professional and staffing services firms. Benefits and Payroll in
particular, has been chronically underfunded relative to the services and responsibilities
assigned to the division. The positions requested will provide backfill for full-time staff
assigned to the BEACH Project (1 full-time employee in Finance and .5 full-time
employee in Benefits and Payroll). The requested augmentation totals $178,000 for
these items.
Currently the Benefits and Payroll division and the Human Resources division have
been sharing the same budget for both Personal Services and Operating Expenses.
This sharing of budgets has generated a significant strain on the Human Resources
budget. With the Human Resources budget being chronically underfunded the added
budgetary strain has resulted in slow turn around times for recruitment and disciplinary
actions. The timely resolution of these issues is critical to the success of the city. The
requested augmentation totals $42,500 for Human Resources (Item #3).
Finally, the Information Systems division of the Fire Department has been working on
the City Hall network infrastructure upgrades. A major portion of this project includes
the rewiring of the building's 1990 data, telephone, and electrical connections. In order
to complete the network infrastructure upgrade, a detailed Computer Aided Draft (CAD)
of the entire City Hall building is needed. The requested Information Systems
augmentation totals $27,680 (Item #8).
Environmental Status:
None
Attachment(s):
NumberCity Clerk's
Page 1 Breakdown of Projected Unbudgeted Requirements
2 CAD upgrade Memorandum from Fire Chief/Information Systems
Director
3 Fiscal Impact Statement
RCA Author: Clay Martin
Changes to AS Budget.doc -4- 3/9/01 11:57 AM
ATTACHMENT # 1
Administrative Services Department
Projected Unbudgeted Requirements
Equipment & Sup lies Contracts $0
Miscellaneous expenditure for
unanticipated supplies due to
electric and asbestos crisis.
Capital $0
Total $20,000
1 FTE for Accounts Payable.
1 FTE for Accounting.
Contracts $0
Equipment & Supplies $5,000
Printing costs for CAFR and
Budget.
.Capital $3,000
Computer.
Total $88,000
32
......... A-
Salaries( $0
Contracts $25,000
Disciplinary investigations.
Personnel Commission legal
counsel.
Equipment & Supplies $17,500
Advertising and recruitment.
Capital $0
Total $42,500
Administrative Services Department
Projected Unbudgeted Requirements
0,1W
Salaries $76,000
1 P/T for Benefits.
I FTE for Payroll.
Contracts $0
Equipment & Supplies $4,000
Furniture.
Training.
Capital $0
Total $80,000
U
Salaries
Contracts $40,00
'AES Support.
Lease agreements.
Equipment & Supplies $0
Capital, $0
Total $40,000
Salaries $0
Contracts $10,000
ME post-implementation
support.
Equipment & Supplies $0
Capital $0
Total $10,000
Administrative Services Department
Projected Unbudgeted Requirements
Salaries $70,000
City Plan increased enrollment.
Contracts $25,000
Employee physicals.
Equipment & Supplies $0
Capital $0
Total $95,000
Salariesi $0
Contracts $27,680
CAD drawings of the City Hall
computer network.
Equipment & Supplies $0
Capital $0
Total $27,680
GRAND TOTAL $403, 180
Less Risk Management 1 $333,180
ATTACHMENT #2
CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
To: Clay Martin, Administrative Services Director /
From: Michael P. Dolder, Fire Chief/Information Systems Director
Date: February 15, 2001
SUBJECT: COMPUTER AIDED DRAFT (CAD) OF CIVIC CENTER FOR NETWORK
INFRASTRUCTURE UPGRADES
During the last few months, the Information Systems Division has been working on the City
Hall network infrastructure upgrades, including projects for rewiring the building's 1990 data,
telephone, and electrical connections. We have discovered that a lack of current
documentation for the existing wiring infrastructure is causing our rewiring costs to almost
double, increasing from $70 per cable drop to $130 per cable drop.
In order to complete the network infrastructure upgrade, a detailed Computer Aided Draft
(CAD) of the entire City Hall building is needed. We have received a quote in the amount of
$27,680 to do this documentation. Since funds for this project are unbudgeted, there are
two choices: 1) Budget the documentation costs for next fiscal year and postpone all
rewiring projects until the new fiscal year, or 2) Find the money in this year's budget.
However, Option 2 would only be feasible if the costs were shared among departments.
Because all City Hall departments utilize the network on a daily basis, and all would benefit
from all improvements, it is requested that each of the 11 departments at City Hall share in
the cost of the documentation. The departments included are: Administration,
Administrative Services, Building & Safety, City Attorney, City Clerk, City Treasurer,
Community Services, Economic Development, Fire, Planning, and Public Works. Evenly
divided, the amount is $2,517 per department. The Library and Police departments are not
included as their buildings are not part of the documentation.
I am requesting your authorization to expend the $2,517 from your department. Your
signature below indicates your approval of this request. I will need the account number you
wish to use for the charge. Please respond by Wednesday, February 28th.
If you have any questions, please contact me at extension 5402.
APPROVED BY:
Name: Title:
ACCOUNT NUMBER: Date:
MPD/dhw
ATTACHMENT #3
CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICA TION
To: Ray Silver, City Administrator
From: Clay Martin, Director of Administrative Services
Subject: FIS 2001-31 Changes to Administrative Services Budget
Date: March 7, 2001
As required by Resolution 4832, this Fiscal Impact Statement has
been prepared for "Changes to Administrative Services Budget."
If the City Council approves this request (total appropriation $402,680
of which $332,680 comes from the General Fund and $70,000 comes
from the Medical Insurance Fund), the estimated unreserved General
Fund Balance at September 30, 2001 will be reduced to $10,202,241
providing there are no additional appropriations are made. There will
be no change to the Medical Insurance Fund since the position is
funded fro d —onal medical insurance premiums.
Clay Marti ,
Director of Administrative Services
ADOPTED BUDGECURRENT ESTIMATE
$ 6,028,241 $ 10,202,241
Fund Balance-General Fund Adopted Budget Current Estimate
Beginning Fund Balance 10/1/2000(unaudited) $ 11,727,000 $ 11,727,000
Plus:Estimated Revenue 127,315,000 130,815,000
Less:Estimated Expenditures (130,660,000) (129,986,000)
Pending/Approved FIS's: (2,021,079) (2,021,079)
Less"FIS 2001-31 (332,680) (332,680)
Estimated 9/30/2001 Unreserved Balance $ 6,028,241 $ 10,202,241
Less Reserve for Economic Uncertainty (6,100,000) (6,100,000)
Amt Unreserved,Undesignated 1 (71,759)1 4,102,241
General Fund Balance 2000/2001
$10,500,000
$9,000,000- :;; '„. u . A
$7,500,000 ®^ ■Unreserved
$6 000 000- %' ,r1 f -s' ,..... Undesignated
$4,500,000 ,v;
$3,000,000 oo;oo` N $6;100,00 p Reserved for
• r 1
3 - - - Economic Uncertainity
$1 500 000
0
-$1 ,500,000,
Adopted Current
Budget Estimate
RCA *ROUTING § HEET
INITIATING DEPARTMENT: ADMINISTRAIVE SERVICES
SUBJECT: fC-h+A"GES TO ADMINISTRATIVE SERVICES BUDGET
COUNCIL MEETING DATE: March 19, 2001
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Not Applicable
Financial Impact Statement (Unbudget, over $5,000) Attached
Bonds (If applicable) Not Applicable
Staff Report (If applicable) Not Applicable
Commission, Board or Committee Report (If applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff ( ) ( )
Assistant City Administrator (Initial) ( ) ( )
City Administrator (Initial)
City Clerk ( ) �
EXPLANATION FOR RETURN OF ITEM:
. 75
SpaceOnly)
RCA Author: