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SR-202-002 (25) ~e NOV 2 3 2004 Council Meeting: November 23, 2004 Santa Monica, California TO: Mayor and City Council Chairperson and Housing Authority Members Chairperson and Redevelopment Agency Members Chairperson and Parking Authority Members FROM: City Staff SUBJECT: Adoption of Fiscal Year 2003-04 Year-End Budget Changes. INTRODUCTION This report recommends Council approval offinal year-end budget changes for FY2003-04. The Year-End Departmental Performance Review and the Capital Improvements Program Status reports are attached for information. BACKGROUND The year-end budget review is an opportunity to adopt budget changes that reflect actual operating results. For the year ending in June 2004, changes also include appropriations from additional grant receipts, and establishment of an MTBE-related budget pursuant to recommendations of the Charnock Engineering Committee. DISCUSSIO~ Staff recommends year-end changes to the FY2003-04 Revenue and Expenditure budgets as summarized on Exhibit A and as detailed in Exhibits B1 and B2. Changes requiring appropriations to the FY2003-04 Revised Budget are described in Exhibit B1. Changes having no net impact on the budget and necessary to ensure that departmental budgets are - 1 - ~c NOV 2 3 2004 balanced to the major account group (Salaries and Wages, Supplies and Expenses, and Capital Outlay) are indicated at Exhibit B2. Included in this report at Exhibit C is information regarding an emergency purchase authorized by the City Manager during FY2003-04 to prevent closure of the Pier. City procurement procedures require competitive bidding but also authorize the City Manager to secure necessary resources on an expedited basis if an emergency arises, or if it is in the interest of public health and safety. If the City Manager exercises this emergency authority, it must be reported to the Council. Recommendations It is recommended that the City Council, Housing Authority, Redevelopment Agency and Parking Authority approve the budget changes detailed in Exhibits B1 and B2. Prepared by: Susan E. McCarthy, City Manager Gordon Anderson, Assistant City Manager Mona Miyasato, Assistant to the City Manager - Management Services Steve Stark, Director of Finance Janet Shelton, Budget Manager David Carr, Principal Budget Analyst - Investments Kathy Chang, Principal Budget Analyst Annette Morales, Senior Budget Analyst Prema Krishnan, Senior Budget Analyst Attachments: Exhibit A - FY2003-04 Previously Approved Revisions and Proposed Year-End Changes Exhibit B1 - Summary of Proposed FY2003-04 Revenue, Expenditure Budget and Balance Sheet Changes Exhibit B2 - Summary of Proposed (No Net Budget Impact) FY2003-04 - 2 - Budget Changes Requiring City Council Approval Exhibit C - Listing of Procurements Required to be Reported Pursuant to Ordinance #1998. -3- II) Q) Cl l: C'll oS: o - Q) Cl "0 ~ a:l Q) ... ~ ;!: "0 l: Q) a. >< w "0 l: C'll Q) ~ l: Q) > Q) 0::: 'lit o I M o o N >- U. "0 (])......"<t lIl(])O o 0)__ 0."00 O::J('I') n:coiD ~-II) (/) (]) Ql OClCl C. 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(j) ~ ~~ -S Qj <(0::: g>2<( 'iii III 0 ::J rn 0::: ~C5~ III C CIl (5 III (]) 5 :s W N C 'w .!l!(j) C)Qj1il co ~ III 8~~ c (]) 5 ~ ~ g' ~ ffi E :;E ::J W ... .......5 ...... (]) ~ ro'g ~ ~<( :2 III U (5 Q) CIl ':;; (j)C:::~O . ...... c (]) E a. o (jj a> "0 (]) 0::: ro 'u W ... t%(]) ~ E o en (j) Q) a... ro 8~ t o e- <3: c W E W 0) CIl C CIl :;E ~ (]) 1il E (]) o III ::J co (]) ::l CO Ol in III l3 5 g ~~~ N ::J U co E W <( E 0::: Cl 0 "0 ~:;EO ffi I- 0 W III lIl<(:O"><: CIl 0 CIl Iii C)(j) 0 a... c W E (]) 0) CIl C CIl :;E (]) U E W > l3 ~ > c (j) ::J u.. W U C CIl 's III C ::I Q) (j) a. (]) e::: .c U W l- S c Exhibit A o o ID o I'- ~ N ui "0 C :J u.. C W E a. o Qj > W "0 (]) 0::: OJ C 'iii :J o ::c Q) E 8 C W ro Q) "0 o :;E ~ o ....J "0 c co i- Q) > o o Q) 0::: Q) ..><: co ::l 0- ..c t co W .::.Z (ij a... C co ~ o c ;: o C ;: o o III Q) "0 ::l U C ~ .~ ..c -S <( 0) c ~ Iii a... EXHIBIT B1 SUMMARY OF PROPOSED FY 2003-04 REVENUE, EXPENDITURE BUDGET AND BALANCE SHEET CHANGES I. REVENUE ADJUSTMENTS Fund CHARNOCK (05) INFORMATION TECHNONOGY SERVICES & REPLACEMENT (55) Department/D ivis ion/Proi ect Charnock/ Revenue City Manager/ Information Systems II. APPROPRIATION ADJUSTMENTS Fund General (01) General (01) General (01) General (01) General (01) Department/Division/Proiect City Attorney/ City Attorney Police/ Office of Operations Community and Cultural Services/ Human Services Community and Cultural Services/ Open Space Management Library/ Administration and Facilities Amount Reason $2,903,172 To reflect budget for expense reimbursements related to the Charnock well field remediation. Revenues are from settlement with the oil companies. $72,030 Contributions from various funds required for the purchase of computers and related equipment. Amount $50,561 $189,055 $34,329 $3,896 $3,962 B-1 Reason To appropriate funds for personnel costs due to lower than anticipated salary savings. To appropriate funds for personnel costs above anticipated budget amount due to the Neighborhood Centered Policing program, the farmers' market incident and funeral for former President Reagan. To appropriate one-time additional grant award from the County of Los Angeles for the Home Delivered Meals program. To appropriate funds received from donations for the Memorial Bench program. To appropriate grant funds from the Public Library Staff Education Grant (+$1,462) and John Randolph Haynes and Dora Haynes Foundation grant for archival restoration of the Evening Outlook (+$2,500). EXHIBIT B1 SUMMARY OF PROPOSED FY 2003-04 REVENUE, EXPENDITURE BUDGET AND BALANCE SHEET CHANGES Fund Department!Division/Proiect Amount Reason General (01) Non-Departmental/ Interfund $262,109 To increase reimbursement from the Transactions Housing Authority Fund for Section 8 housing related expenditures (-$81,429), from the Miscellaneous Grants Fund for the Public Library Staff Education Grant (-$1,462), and to the Pier Fund for miscellaneous litigation expenditures (+$345,000). General (01) General Government Capital $250,000 To appropriate funds for purchase of Improvement! Distributed a distributed timekeeping system to Timekeeping System automate the timekeeping function in payroll. TOTAL 793.912 GENERAL FUND (01) Charnock (05) Environmental and Public $4,994,746 To appropriate funds for water Works Management! Water / remediation related expenditures at the Charnock well field, including water replacement (+$1,888,746), bank fees (+$6,000), legal expenditures (+$2,100,000), and a settlement payment to an oil company (+$1,000,000). Charnock (05) Non-Departmental/ Interfund $250,000 To reimburse the Water Fund for Transactions water remediation work at the Charnock well field. Charnock (05) Wastewater and Water $758,426 To appropriate funds for the Capital Improvement! Charnock Water Treatment Plant Charnock Water Treatment project. Plant Charnock (05) Wastewater and Water $3,575,000 To appropriate funds for purchase of Capital Improvement! water rights from Southern California Purchase of Water Rights Water. TOTAL $9.578.172 CHARNOCK (05) B-2 EXHIBIT B1 SUMMARY OF PROPOSED FY 2003-04 REVENUE, EXPENDITURE BUDGET AND BALANCE SHEET CHANGES Fund BEACH (11) Housing Authority (12) Housing Authority (12) TOTAL HOUSING AUTHORITY (12) Disaster Relief Fund (13) Disaster Relief Fund (13) TOTAL DISASTER RELIEF (13) TORCA (14) Department/Division!Proiect Environmental and Public Works Management/ Beach Maintenance Non-Departmental! All Other Transactions Non-Departmental! Interfund Transactions Public Safety Capital Improvement/ Public Safety Facility Streets, Traffic Control and Parking Capital Improvement/ Parking Structure #8 Non-Departmental! All Other Transactions Amount Reason $188.910 To appropriate additional funds for greater than anticipated personnel costs (+$111,936) for Beach waste cleaning and associated supplies (+$76,974). $1,042,816 To reflect Section 8 Housing Assistance pass-through payments above anticipated budget amount. $81,429 To increase reimbursement to the General Fund for Section 8 housing related expenditures. $1.124.245 $124,499 To reflect FEMA funds approved for the Public Safety Facility project. $6,618 To reflect FEMA funds approved for the Parking Structure #8 project. $131.117 S5.1Z To appropriate funds for bank service fees. B-3 EXHIBIT B1 SUMMARY OF PROPOSED FY 2003-04 REVENUE, EXPENDITURE BUDGET AND BALANCE SHEET CHANGES Fund LOW/MOD INCOME HOUSING REDEVELOPMENT (15) DOWNTOWN REDEVELOPMENT (16) EARTHQUAKE REDEVELOPMENT (17) MISCELLANEOUS GRANTS (20) WATER (25) SOLID WASTE (27) Departm ent!D ivision/Proi ect Community and Economic Development Capital Improvement! Low/Mod Income Housing Non-Departmental/ All Other Transactions Non-Departmental/ All Other Transactions Non-Departmental/ Interfund Transactions Non-Departmental/ Interfund Transactions Environmental and Public Works Management! Solid Waste Management Amount $411.390 $14.465 $209.298 $68.744 ($250.000) $847.933 B-4 Reason To revise appropriation based on actual Tax Increment received by June 30, 2004 To appropriate funds for debt service. To reflect 20% tax increment pass- through payments to other agencies due to greater than anticipated tax increment receipts. To increase reimbursement to the General Fund for greater than anticipated grants related expenditures. To increase reimbursement from the Charnock Fund for water remediation work at the Charnock well field. To appropriate funds for overtime and as needed personnel costs above anticipated budget amount (+$184,952) and dump fees due to a rate increase (+$662,981). EXHIBIT B1 SUMMARY OF PROPOSED FY 2003-04 REVENUE, EXPENDITURE BUDGET AND BALANCE SHEET CHANGES Fund Pier (30) Departm ent!D ivision/Proi ect Police/ Harbor Unit Amount $21 ,466 Pier (30) Resource Management! Economic Development $216,503 Pier (30) Non-Departmental! Interfund Transactions ($345,000) TOTAL PIER (30) ($107.031 ) Reason To appropriate funds for personnel costs due to lower than anticipate salary savings. To appropriate funds for miscellaneous litigation expenses. To increase reimbursement from the General Fund for miscellaneous litigation expenses. Big Blue Bus (41) Big Blue Bus Capital $302,019 To appropriate available funds for Improvement! Campus the Campus Expansion Project. Expansion Big Blue Bus (41) Big Blue Bus Capital $4,487 To appropriate available funds for Improvement! Service service vehicles. Vehicles Big Blue Bus (41) Big Blue Bus Capital $13,316 To appropriate available funds for Improvement! Yard the Yard Improvement Project. Improvement TOTAL $319.822 BIG BLUE BUS (41) SCAQMD AB 2766 (44) Non-Departmental/ All Other Transactions $40.172 To appropriate funds for bus token benefits (+$38,012) and audit fees (+$2,160). B-5 EXHIBIT B1 SUMMARY OF PROPOSED FY 2003-04 REVENUE, EXPENDITURE BUDGET AND BALANCE SHEET CHANGES Fund CABLE COMMUNICATIONS (51) COMPREHENSIVE SELF-INSURANCE (56) PARKING AUTHORITY (77) Department/D ivision/Proiect City Manager/ Cable Television Administration Non-Departmental/ Comprehensive Non-Departmental/ Interfund Transactions Amount Reason ~ To appropriate funds for greater than anticipated professional services on video production. $595.278 To appropriate funds for increased claims expenses, insurance premiums and legal expenses. $108.927 To increase reimbursement to the Solid Waste Management Fund for cleaning of the downtown parking structures. B-6 Fund General General General General General General General General EXHIBIT B2 SUMMARY OF PROPOSED (NO NET BUDGET IMPACT) FY 2003-04 BUDGET CHANGES REQUIRING CITY COUNCIL APPROVAL FOR THE PERIOD 7/1/03 - 6/30/04 Department Salaries & Waaes Net Chanae Supplies & Expenses Capital Outlav Records and Election Services $35,141 $0 ($35,141 ) $0 Supplies and Expenses savings are transferred to Salaries and Wages for an outside employee agency to assist with the workload due to a leave of absence. Finance $45,479 $0 $2,391 ($47,870) Salaries and Wages savings are transferred to Supplies and Expenses for a citywide fee study, and to Capital Outlay for purchase of a color printer. City Attorney $13,487 $0 ($8,888) ($4,599) Supplies and Expenses and Capital Outlay savings are transferred to Salaries and Wages for greater than anticipated personnel costs. Police $268,746 ($237,955) ($30,791 ) $0 Supplies and Expenses and Capital Outlay savings are transferred to Salaries and Wages for greater than anticipated personnel costs. Fire $11,526 $0 $0 ($11,526) Capital Outlay savings are transferred to Salaries and Wages for greater than anticipated personnel costs. Community and Cultural Services ($4,583) $4,583 $0 $0 Supplies and Expenses savings are transferred to Capital Outlay for vehicle repairs. Library $0 $0 ($589) $589 Salaries and Wages savings are transferred to Supplies and Expenses for library supplies. $53,171 $0 $0 Environmental & Public Works Management Supplies and Expenses savings are transferred to Salaries and Wages for greater than anticipated personnel costs. ($53,171 ) 8-7 Fund General General Beach Solid Waste Management Pier Airport EXHIBIT B2 SUMMARY OF PROPOSED (NO NET BUDGET IMPACT) FY 2003-04 BUDGET CHANGES REQUIRING CITY COUNCIL APPROVAL FOR THE PERIOD 7/1/03 - 6/30/04 Department Salaries & Waaes Net Chanae Supplies & Expenses Capital Outlav Resource Management $0 $1,872 ($1,872) $0 Supplies and Expenses savings are transferred to Capital Outlay for purchase of office furniture and equipment. Non-Departmental ($191,172) $191,172 $0 $0 Salaries and Wages savings are transferred to Supplies and Expenses for greater than anticipated citywide utilities-electrical expenses. Community & Cultural Services Environmental & Public Works Management $0 $0 $0 $0 ($1,049) $1,049 ($1,049) $1,049 $0 $0 $0 $0 Supplies and Expenses savings in Community and Cultural Services are transferred to Supplies and Expenses in Environmental and Public Works Management for greater than anticipated beach cleaning supplies. $0 $20,513 ($20,513) $0 Environmental & Public Works Management Capital Outlay savings are transferred to Supplies and Expenses for greater than anticipated dump fees. Harbor Unit ($2,000) $0 $15,942 ($13,942) Supplies and Expenses and Capital Outlay savings are transferred to Salaries and Wages for greater than anticipated personnel cost. Resource Management ($43,598) $0 $0 $43,598 Salaries and Wages savings are transferred to Supplies and Expenses primarily for miscellaneous litigation expenses. Resource Management $16,054 $0 ($16,054) Supplies and Expenses savings are transferred to Salaries and Wages for greater than anticipated personnel costs. 8-8 EXHIBIT B2 SUMMARY OF PROPOSED (NO NET BUDGET IMPACT) FY 2003-04 BUDGET CHANGES REQUIRING CITY COUNCIL APPROVAL FOR THE PERIOD 7/1/03 - 6/30/04 Salaries & Supplies & Capital Net Fund Department Waaes Expenses Outlav Chanae Cemetery Environmental & Public $1,794 ($1,794) $0 $0 Works Management Supplies and Expenses savings are transferred to Salaries and Wages for greater than anticipated personnel costs. Big Blue Big Blue Bus ($256,774) $285,514 ($28,740) $0 Bus Salaries and Wages and Capital Outlay savings are transferred to Supplies and Expenses for greater than anticipated uninsured motorist and bus repair costs. Cable City Manager Communications ($14,164) $14,164 $0 $0 Salaries and Wages savings are transferred to Supplies and Expenses for greater than anticipated professional services on video production. Vehicle Management Environmental & Public Works Management Salaries and Wages savings are transferred to Supplies and Expenses for greater than anticipated vehicle repair and CNG station operating costs, and to Capital Outlay for maintenance of office equipment. ($159,349) $159,293 $56 $0 8-9 EXHIBIT C LISTING OF PROCUREMENTS REQUIRED TO BE REPORTED PURSUANT TO ORDINANCE #1998 Purchase Order DepartmentJ Number Fund Vendor Type of Service Amount Issue Date 164443- OP Resource John S. Meek Vendor installed an emergency access $ 274,750.23 Management Company ramp on the Pier to avoid closure of the / Pier Pier to the public or potential safety issues. The structural integrity of the pier was compromised by severe deterioration due to marine borers of 17 piles. These piles needed to be replaced immediately or the pier would have been closed to the public. 1/28/2004