SR-01-22-2013-8ACity of City Council Report
Santa Monica
City Council Meeting: January 22, 2013
Agenda Item: 914
To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director of Finance
Subject: Five -Year Financial Forecast and FY 2012-13 Midyear Budget
Recommended Actions
Staff recommends that the City Council:
1) Review and comment on the FY 2013-14 through FY 2017-2018 Five -Year
Financial Forecast and direct staff to proceed with developing a fiscally
sustainable budget strategy;
2) Review and comment on community issues and resident feedback that will guide
FY 2013-15 budget development;
3) Appropriate FY 2012-13 midyear expenditure and revenue budget changes as
detailed in Attachment A;
4) Adopt a resolution establishing classification and salary rates for various
positions detailed in Attachment 131;
5) Approve the position and classification changes detailed in Attachment 132;
6) Renew Organizational Support Program (OSP) Grants for Arts and Culture
Nonprofits funding for two years contingent upon available funding and postpone
the next grant cycle to begin in FY 2015-16;
7) Adopt a resolution of the City of Santa Monica setting the amount of fees to be
charged for the use of community and recreational facilities operated by the
Community and Cultural Services Department of the City of Santa Monica, and
for the use of beach parking lots, and a definition of facility user categories
(Attachment C); and
8) Receive public comment on Community Development Block Grant (CDBG) and
Home Investment Partnership Act (HOME) Program funds.
Executive Summary
The FY 2013-14 through FY 2017-18 Five Year Financial Forecast informs the Council
and community of the City's current and projected fiscal status as the City enters the FY
2013-15 Biennial Budget preparation process. The financial status update presented to
Council on May 22, 2012 showed a General Fund deficit of $3.6 million in FY 2014-
15. Each year, staff updates the five-year forecast to reflect known and potential factors
that will have an impact on the City's financial position. This year's forecast reflects the
impact of Consumer Price Index (CPI) and labor cost increases without new programs
or staffing, additional funding applied to capital improvement needs to mitigate the loss
of redevelopment funding, and State takeaways associated with redevelopment
dissolution that will likely impact the City's capital and economic uncertainty reserves.
Staff has completed a series of best to worst case forecast scenarios to provide a range
of impacts that the General Fund may be required to withstand. Under all scenarios,
General Fund expenditures exceed projected revenues, in one case as early as FY
2013-14. In the best case, the General Fund would see a deficit of almost $9 million
starting in FY 2014-15 that increases to $15 million (4.4 percent of total expenditure
budget) in FY 2017-18, while the worst case shows a deficit of approximately $4 million
in FY 2013-14 that increases to approximately $29 million (8.5 percent of total
expenditure budget) in FY 2017-18. To eliminate current and out -year projected deficits
and also maintain a healthy level of General Fund reserves, staff is recommending a
budget strategy based on a restrained spending regimen that includes limiting total
compensation increases, targeted spending cuts and revenue increases.
Other funds have also experienced changes since the last financial status update to
Council in May 2012; however, changes in the funds that the General Fund historically
subsidizes (the Airport, Pier, Cemetery, Civic Auditorium, and Beach Funds), have
resulted in decreased pressure on the General Fund as compared to staff estimates in
the May forecast.
Background
On February 8, 2011, City Council approved the implementation of a biennial budget
process that included financial status updates every six months and exception -based
budget changes in the second year. Council adopted the FY 2011-12 Budget and
approved the FY 2012-13 Budget Plan on June 21, 2011. On May 22, 2012 and June
12, 2012, staff presented Council with the proposed FY 2012-13 budget, as well as the
FY 2012-14 Proposed CIP Budget and the revised Financial Status Update. That
Financial Status Update included the proposed operating and capital budgets and
showed a potential structural deficit of approximately $3.6 million beginning in FY 2014-
15, increasing to approximately $4.6 million in FY 2015-16.
Discussion
Economic Update
Recent economic news indicates that an economic recovery appears to be taking hold.
However, the recovery is modest, at best. National economic growth is expected to be
less than three percent annually through at least 2014. Unemployment, while slowly
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improving, is still not expected to drop below seven percent until late 2014 or early 2015
based on recent economic forecasts. The housing market is showing signs of recovery
as well.
When Governor Brown took office in January 2011, California faced a $26.6 billion
deficit. In November 2012, following two years of State budget cuts, voters passed
Proposition 30. On January 10, 2013, the Governor's FY 2013-14 Proposed Budget
showed that, as a result of new revenue from Proposition 30's temporary sales tax
increase and increase to income taxes on 'California's top three percent of income
earners, as well as higher than anticipated revenues coming from a recovering
economy, and a continuation of spending cuts made in past years, the State no longer
faces a deficit. The State's unemployment rate continues to be the third highest in the
country, at 9.8 percent in November 2012. However, the forecast is positive overall, as
California continues to outpace other states in job growth (it currently ranks eighth in the
country) and the State's housing market shows strong signs of recovery.
While Santa Monica was not immune to the effects of the recent recession, the worst
downturn since the Great Depression, the impact on Santa Monica was less severe
than in many areas of the State. Santa Monica tends to weather economic downturns
better and recover faster than other jurisdictions due in large part to its geographic
location and to its diversified tax revenue base, which generally protects the City from
downturns that impact one or a limited number of sectors of the economy.
The City's major tax revenues have recovered significantly and, for the most part, have
reached or exceeded pre -recession levels. Property values in the City increased by 3.6
percent in 2012, the second consecutive yearly gain. Total assessed value ranked third
in Los Angeles County after only the cities of Los Angeles and Long Beach. Modest
growth is expected over the forecast period.
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Sales tax receipts, which declined for two consecutive years due to the economy and
the temporary closure of Santa Monica Place for remodeling, have also turned around
as the economy recovers and Santa Monica Place has re -opened. Additionally, the
City's voters approved a half -cent transaction and use tax in November 2010, resulting
in an overall sales tax revenue increase of 44 percent in FY 2011-12. As with property
taxes, more modest growth is projected over the forecast period.
Tourism, which provides a major stimulus to the local economy by creating jobs and
producing revenues, continues to exhibit strength as FY 2011-12 Transient Occupancy
Tax (TOT) revenues grew by 10.4 percent over the previous year. Growth is also
expected to be moderate over the forecast period.
Utility users' taxes are projected to remain relatively flat over the forecast period, while
business license taxes are expected to grow slowly, following the general course of the
local economy. Interest rates, which fell to historically low levels over the last three
years, significantly impacting the City's investment income, are expected to remain at
relatively low levels for several more years.
Five -Year Financial Forecast
General Fund
Staff has completed three forecast scenarios that contemplate best, probable, and worst
case impacts on the General Fund. In all scenarios, the General Fund would
experience deficits, in the worst case starting as early as FY 2013-14, that would
increase significantly throughout the forecast period unless corrective remedies are
implemented. Santa Monica has historically heeded such warnings and taken steps to
adjust its budget and realign revenues with expenditures in order to avoid future year
deficits, and it is staff's intention to continue this prudent fiscal management during the
upcoming Biennial Budget process. As noted previously, these deficits continue to be
manageable, ranging from 4.4 to 8.5 percent of the budget at their highest levels in FY
2017-18, and staff anticipates that controlled spending and budget adjustments will
C!
allow the General Fund revenues and expenditures to remain balanced and also allow
the maintenance of healthy reserves
Assumptions
Factors in all scenarios include midyear changes, cost increases at the level of the
Consumer Price Index (CPI), additional labor/benefit cost increases based on updated
information, additional funding (beyond the funding identified in the May forecast) for the
City's capital improvement needs to partially mitigate the impact of the $50 million in lost
annual redevelopment revenue that was primarily used for such projects, and State
takeaways associated with redevelopment dissolution, as well as more and less
optimistic views of fixed expenditure and revenue growth.
Revenue growth assumptions
Revenue growth rates vary by source but are expected to increase at an average rate
of 2.4 percent during the forecast period. In the best case scenario, revenues would
grow at a slightly higher rate.
Expenditure growth assumptions
All scenarios assume cost increases at the anticipated rate of the Consumer Price Index
(CPI), which is anticipated to be 2.0 percent in FY 2013-14 and 2.5 percent in FYs
2014-18. It is important to note that almost three-quarters of the operating budget is
composed of labor costs, and that a number of these costs, such as health insurance,
worker's compensation and retirement, increase at a rate that is higher than the
CPI. These costs drive up the overall expenditure budget by an entire percentage point
above the CPI rate. As noted below, it will be important to consider limiting total
compensation increases in upcoming collective bargaining in order to control overall
costs.
Pensions represent an ever-increasing share of local government costs. In FY 2011-12,
Santa Monica's pension costs increased dramatically, by $6.4 million or 16 percent, to
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reach almost $38 million. This increase reflected adjustments to account for severe
investment losses in FY 2008-09, longer life expectancy, and enhanced pension
benefits entered into by cities a decade earlier when plans appeared to be superfunded.
Now it is imperative that cities act to control further increases and even lower costs as
much as possible. Over the past few years, Santa Monica has taken several actions in
an effort to curb the City's pension costs. Miscellaneous employees contribute 6.7
percent of the employee contribution rate towards the cost of their retirement benefits
while Public Safety employees currently contribute 2 percent. The Public Safety
contribution will increase to 3 percent effective July 1, 2013. The City also established a
second tier retirement program for miscellaneous employees hired after July 1, 2012
that provides a lower level of benefits for these employees. Finally, the City has been
able to reduce its retirement rates by paying down $20 million of its unfunded liability
from savings, as well as pre -paying a large portion of its annual contribution for a
number of years. This was all completed before the State took action on pension
reform.
In March 2012, CaIPERS announced that it would lower its investment portfolio growth
assumptions from 7.75 percent to 7.5 percent. Based on early information from
CaIPERS, staff estimated in the May 2012 financial status update that the adjustment
would increase General Fund retirement costs by as much as $2.8 million through FY
2014-15. Updated CalPERS projections, which also incorporate savings realized by the
City through a paydown of its unfunded liability in June 2012, have kept contribution
rates relatively steady and controlled cost increases to $0.9 million. Under the worst
case, retirement expenses are higher annually than in the best and probable scenarios.
Future -year savings associated with the implementation of the California Public
Employees' Pension Reform Act of 2013 (PEPRA) and the previously negotiated two-
tier retirement system with miscellaneous employees that was effective July 1, 2012 are
not included as the significant impact will occur after the forecast period.
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Under the best case and probable scenarios, healthcare costs are anticipated to
increase by 14 percent through FY 2014-15 and then by 12 percent beginning in FY
2015-16. Under the worst case scenario, these costs increase by 15 percent annually
beginning in FY 2015-16. Staff anticipates that insurance premiums will not decrease
during the forecast period despite the implementation of the Patient Protection and
Affordable Care Act.
The Workers Compensation Reform measure that went into effect on January 1, 2013
will increase costs for permanent disability claims in the foreseeable future with no
associated savings.
Impacts from the dissolution of redevelopment
In the wake of redevelopment, staff has worked diligently to find the means to retain the
services of staff previously funded with RDA funds through new funding streams,
including new fees, housing loan residual receipts and allowed redevelopment
administrative allowances. Nonetheless, the General Fund will be required to take on
approximately $1.3 million in annual operational and program costs, including staff,
senior housing vouchers, rent, insurance and loan repayments denied as an
enforceable obligation by the DOF. For a more detailed discussion on staffing, see the
January 2013 Information Item regarding the status of Civic Auditorium and
Redevelopment -funded positions.
On December 15, 2012, at the conclusion of the housing due diligence review required
by AB 1484, the statute implementing the dissolution of redevelopment in California, the
State Department of Finance (DOF) demanded that the Successor Agency to the Santa
Monica Redevelopment Agency remit $54.5 million to the County so that those funds
may be redistributed to other taxing entities. The Successor Agency has paid $12.5
million under protest, and has contested the remaining $43 million as those funds are
either restricted by loan covenants or obligated to third parties under what staff deems
to be enforceable obligations. All scenarios assume a significant loss in interest
earnings resulting from these payments and a resulting loss in investable fund balance,
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as well as potential denials of debt service obligations., Any further DOF claw backs or
denials of debt service obligations, especially as a result of the Successor Agency's
non -housing due diligence review submitted to the DOF on January 15, 2013, will
further increase expenditures and decrease revenues, and will also place additional
pressure on the City's capital and economic uncertainty reserves, and it will fall on the
General Fund to rebuild those reserves.
Federal Funding
The City experienced decreases in CDBG, HOME and Section 8 funds in the current
fiscal year that totaled $1.2 million. Staff projects this trend to continue. Information
regarding potential additional decreases in this area as a result of sequestration, per the
American Taxpayers Relief Act of 2012, will be known on March 1, 2013.
Operatinq Cost of New Facilities
Costs for the operation and maintenance of the Palisades Garden Walk, Pico Library,
Colorado Esplanade, Expo Buffer, and Expo Bikeway, all of which will be completed by
FY 2015-16, are estimated to total approximately $2.0 million/year on an ongoing basis.
Capital needs
The May forecast included an annual CIP budget of $21.7 million in FY 2013-14, $10.6
million of which was funded with capital reserve funds as approved by Council on June
12, 2012. The remaining forecast years included annual CIP funding of $12.2 million.
The General Fund has historically spent $17 to $22 million in annual funding to maintain
its infrastructure and equipment. With the loss of over $50 million in annual RDA
revenue, the majority of which was set aside for pay-as-you-go capital project funding,
the City must find new funding sources to maintain infrastructure and complete high
priority capital projects without overburdening the City's debt obligations. While staff has
suggested the use of other financing instruments to construct the Fire Station 1 facility
and modernize the Civic Auditorium, it is important to limit the City's reliance on outside
financing and continue to pay for projects with cash on hand as much as possible. To do
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this, all scenarios include an additional need of approximately $9.0 million in CIP funds
per year starting in FY 2014-15. This returns the annual CIP budget to approximately
$21 million. Among the projects that could be completed using the incremental funding
are the Lincoln Boulevard' Streetscape and the General Fund portion of the
redevelopment of the City's Corporation Yards. It is important to note that this additional
funding will not fully -fund the capital improvement needs of the City.
Forecast Summary and Potential Deficit Remedies
At the current level of spending and given the assumptions listed above, the City
estimates, at best, a potential General Fund budget shortfall of almost $9 million in
FY 2014-15, increasing to approximately $15 million in FY 2017-18. Under the worst
case scenario, further State takeaways and higher expenditures related to labor costs
or previously RDA -funded items could result in a deficit of approximately $4 million as
early as FY 2013-14, increasing to almost $29 million in FY 2017-18. The anticipated
FY 2017-18 deficits represent a range of 4.4 to 8.5 percent of the General Fund
expenditure budget- a deficit level that can be managed and therefore eliminated using
careful planning and budgeting.
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$10
General Fund Projected Fund Balance
$5
-_. 'q.mllllens
$0
Revised 013-14, FY 2014-15 FY 2015-16
FY 2016-17 FY 2017-18
-$5
Y
-$10
-$4M $9M �. ��"'�
_$15M
-$15
-$20
-$26M
-$25
-$30
-$35
Fund Balance- Worst Case Fund Balance - Best Case ...... Fund Balance- Probable
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To help achieve fiscal sustainability despite the added pressures of rising costs, a new
reliance on the General Fund for capital funding, and the continued threats of
redevelopment claw backs to reserves, staff recommends employing various budget
strategies as the City embarks on the development of the FY 2013-15 Biennial Budget
preparation process. Among the strategies to be considered are:
• Controlling total compensation costs through negotiations with bargaining units.
Staff will be considering the total value of salaries and benefits (including salary,
pension and health insurance costs, rather than only the base salary), in
negotiations with the City's two largest collective bargaining groups this Spring.
Any proposals to limit costs would be subject to the meet and confer process.
• An overall 5.0 percent combination of expenditure decreases and/or revenue
increases that would effectively create a new, reduced baseline for expenditures
going forward. Considering the City's need to make due with limited resources,
departments would undertake a thoughtful review of their current operations and
refocus attention and funding on core and priority programs.
Staff will consider these strategies, along with others, in developing the budget. It is
important to note that any other strategies, such as deferral of capital improvements, or
an increased reliance on any one strategy, will likely have a negative impact on the
City's ability to provide the high level of services that have played such a large part in
shaping our thriving and socially -sustainable economy that is better able to withstand
economic downturns than other cities.
Ml
Using the budget strategies described above throughout the forecast period, staff
estimates that the General Fund deficit would be eliminated even in the worst case
scenario:
FY 2013-14 spike is due to the use of capital reserves to fund capital projects as approved by Council.
Staff is also evaluating the possibility that changes to the structure and operations of
various facilities could decrease the annual General Fund subsidy to several funds.
Other Funds
Other major funds that are included in the Five -Year Financial Forecast fall into two
categories: (1) enterprise funds that operate with sufficient revenues to sustain
necessary operating and capital needs; and (2) funds that have a structural deficit
where ongoing revenues are not sufficient to cover ongoing expenditures.
Self -Supporting Enterprise Funds
Enterprise funds that historically rely on sufficient revenues to support necessary
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General Fund Pro'ected Fund Balance
$25.0
$ in millions
$20.0
$15M
$15.0
$10.0
r�
$5.0
$1M
$0.0
Revised FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18
FY 2012-13
Fund Balance w/strategies -Worst Case Fund Balance w/strategies -
Best Case
m• as=
Fund Balance w/strategies- Probable
FY 2013-14 spike is due to the use of capital reserves to fund capital projects as approved by Council.
Staff is also evaluating the possibility that changes to the structure and operations of
various facilities could decrease the annual General Fund subsidy to several funds.
Other Funds
Other major funds that are included in the Five -Year Financial Forecast fall into two
categories: (1) enterprise funds that operate with sufficient revenues to sustain
necessary operating and capital needs; and (2) funds that have a structural deficit
where ongoing revenues are not sufficient to cover ongoing expenditures.
Self -Supporting Enterprise Funds
Enterprise funds that historically rely on sufficient revenues to support necessary
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operations include the Resource Recovery Recycling (RRR), Water, Wastewater,
and Big Blue Bus (BBB) funds. By June 2013, staff will present Council with
completed rate studies affecting each of these funds as part of the Zero Waste Strategic
Plan for the RRR fund, and the Sustainable Water Plan for the Water and Wastewater
funds, which will assist in achieving the Council -directed goal of 100 percent water self-
sufficiency by the year 2020.
At this time, results of the forecast indicate that the RRR Fund will experience an
operating deficit beginning in FY 2013-14, totaling $7.6 million by the end of FY 2017-
18, unless fee increases and operational efficiencies are implemented. To address the
deficit, staff has evaluated current operations and made significant adjustments to
reduce expenditures, and is looking at possible ways to recover costs for services
rendered to other departments and to meet state and federal mandates. Staff expects
that fee increases recommended with the Zero Waste Strategic Plan, with Council
approval, will result in the RRR fund return to sufficiency.
In the Water Fund, the faster rate of growth of expenditures over revenues shows that
the fund will not be able to maintain the currently -established level of operating and
capital reserves without going into a deficit beginning in FY 2013-14 at an average
annual amount of $2.6 million. The Wastewater Fund forecast indicates that the fund is
in sound financial condition through the end of the forecast period.
The BBB Fund has a projected operating structural deficit in FY 2012-13, as revenues
are not sufficient to cover operating costs this year. To bring the Fund into balance, it
will be necessary to use $2.2 million in operating reserves in FY 2012-13. To ensure the
Fund does not operate at a structural deficit in the future, staff continues to develop
strategies to decrease expenditures, such as reductions in the use of overtime, more
efficient scheduling of service hours, automation of certain operations, and acquisition
of new buses, which will allow the BBB to reduce its maintenance and fuel budget. In
addition, BBB is also looking at ways to enhance operating revenues, including fare
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restructuring, renegotiation of the service contract with Santa Monica College, and
replacement of the current outdated GFI fare collection system. As a result of these
strategies, staff projects that the BBB Fund will maintain $7.6 million in operating
reserves through the end of the forecast period.
Staff projects that the Beach Fund, which has needed General Fund subsidies in the
past, will generate revenues to sustain its operations throughout the forecast period. As
a result of higher than anticipated event, day use, and parking revenue, the Beach
House Fund subsidy from the Beach Fund will be $1.9 million lower than budgeted in
FY 2012-13 ($0.6 million versus the budget of $2.5 million). The Beach Fund, in addition
to benefiting from the lower subsidy to the Beach House Fund, is also experiencing
increased revenues from the use of the beach parking lots and slower expenditure of
capital improvement project funds. Ultimately, staff expects these changes to eliminate
the need for a General Fund subsidy to the Beach Fund through at least FY 2017-18.
Funds Requiring General Fund Subsidies
Due to policy decisions limiting revenue generation or a decrease in funding from
other sources, the following funds will require a total $6.6 million in General Fund
subsidies over the Five -Year Forecast period in order to meet their operating and
capital needs, as detailed below:
• Airport: The Airport Fund received a $3.3 million General Fund advance in FY
2011-12 and is projected to require an additional $0.1 million from the General Fund
through FY 2017-18. This estimate does not include potential landing fee increases;
staff is working on this study and expects to complete it by the end of the current
fiscal year. Due to decreased/deferred capital improvement project expenditures
and projected new land lease revenues beginning FY 2015-16, staff expects the
fund's ongoing General Fund subsidy need to be approximately $1.3 million less
than previously projected.
Cemetery: The Cemetery has historically required loans and subsidies from the
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General Fund, totaling $6.2 million over the past 14 years. To provide the Cemetery
a clean slate as it restructures, Council approved forgiveness of this outstanding
balance on October 23, 2012. To control costs and reduce the structural deficit
moving forward, staff has implemented operational efficiencies, staff restructuring,
and consultant services consolidation. Even with these cost reduction strategies,
staff projects that the fund will operate with an average annual deficit of $0.5 million,
totaling $2.6 million at the end of the forecast period. Staff continues to consider
strategies for managing this Fund and lowering the subsidy from the General Fund.
Civic Auditorium: As presented to Council on October 23, 2012, the Civic
Auditorium is scheduled to close on June 30, 2013. Mothballing the Auditorium will
require annual maintenance costs of approximately $0.2 million. This amount
includes funds for staff time and contract services to maintain the facility, including
the provision of minimal custodial services, an external security system, and utility
and insurance costs. The General Fund will cover these expenses at an estimated
total amount of $1.0 million through the end of the forecast period.
Housing: The Housing Fund has a projected operating structural deficit of at least
$0.2 million annually beginning in FY 2013-14 due to the loss of Redevelopment
funding for the administration of the senior voucher program, and the reduction of
U.S. Department of Housing and Urban Development (HUD) allocations over time.
Through the end of the forecast period, subsidies from the General Fund are
projected to total $1.7 million. This assumes that federal funding levels will remain
flat over the forecast period. Efforts to increase revenues include applying for grants
that will yield administrative funds, and optimizing the City's ability to claim additional
administrative revenues. Efforts to decrease expenditures include implementing
electronic procedures both internally and with clients to reduce administrative costs.
• Pier: Staff projects that, beginning in FY 2014-15, the Pier Fund will require a total
General Fund subsidy of $0.8 million through the end of the forecast period. This
amount is $4.5 million lower than the previously projected subsidies through FY
2015-16 due to cash received from the sale of assets, rep rioritization of capital
projects, increased lease revenues from new tenants and restructured tenant
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agreements, and higher parking revenues related to the FY 2012-13 fee increase.
The Pier Fund's master planning process, which is underway and scheduled for
completion by February 2014, will address the Pier's future fiscal sustainability and
inform future financial forecasts.
Midyear Budget Adjustments
Approximately halfway through the fiscal year, staff reviews revenue receipts to date,
recommends revenue budget changes, and proposes adjustments to the expenditure
budget as necessary to most effectively implement the Council's priorities. This is also
the opportunity to make position changes related to reorganizations, new service
requirements, or more efficient service delivery. Each proposed midyear change is
balanced against its impact on long-term financial projections to ensure that it does not
increase future structural deficits to unmanageable levels. The charts and descriptions
below summarize the midyear revenue and expenditure adjustments.
Revenue Adjustments — Genera! Fund
FY 2012-13 Proposed Midyear Budget Adjustments -
Revenues (in millions)
Midyear
Revised Budget Revenue Revised Budget
FlInd FY 2012-13 Changes with Changes
General Fund 01)
$
292.8
$
4.43
$
297.2
Special Revenue Source Fund 04
14.7
$
0.02
$
14.7
Beach Fund (11)
8.3
$
1.95
$
10.3
Miscellaneous Grants Fund (20)
16.5
$
(0.18
$
16.3
Pier Fund 30
4.7
$
0.61
$
5.3
Civic Auditorium Fund 32
1.2
$
0.20
$
1.4
Airport Fund (33
4.1
$
0.10
$
4.2
Big Blue Bus Fund (41)
74.7
1 $
2.37
1 $
77.1
Other Funds
1 $
167.8
1 $
-
$
167.8
Total $ 584.8 $ 9.49 $ 594.3
The FY 2012-13 Midyear Review includes a number of recommended revenue
adjustments. Significant increases include: an additional $2.1 million in property taxes,
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mostly from residual property tax payments related to the dissolution of the
Redevelopment Agency; an additional $2.1 million in parking revenues as a result of
revised parking meter rates and a smaller than anticipated reduction in revenue
resulting from the closure of Parking Structure 6; an additional $1.6 million in sales and
transaction and use taxes, $1.5 million in Transient Occupancy Taxes (TOT), $1.5
million in real property transfer taxes reflecting sales of large properties, and $0.5 million
in parking facilities taxes. These increases are offset by reduced parking citation
revenue ($1.9 million), decreased interest earnings ($1.6 million), and less than
anticipated revenues from utility users taxes and business license taxes ($1.2
million). Revenues recommended for adjustment are identified in Attachment A.
Revenue Adjustments — Other Funds
Significant revenue adjustments in other funds include:
• The Beach Fund revenue will increase by $1.9 million to reflect increased beach
parking lot revenues, primarily from the impacts of the November 2012 parking
rate increase.
• The Pier Fund revenue will increase by $0.6 million to reflect increased parking
lot revenue due to an increase in the volume of visitors to the Pier, as well as the
impacts of the November 2012 parking rate increase.
• The Big Blue Bus revenues will increase by $2.4 million to reflect increased
funding allocations, including new revenue received from State Transit
Assistance (STA) funds, nominal increases from advertising services, and use of
deferred Measure R revenue.
Expenditure Adjustments - General Fund
FY 2012-13 Proposed Midyear Budget Adjustments -
Expenditures (in millions)
Mid -Year
Revised Budget Expenditure Revised Budget
Flinn FY 2012-13 Changes with Changes
General Fund 01)
$
273.9 $
0.67 $
274.6
Special Revenue Source Fund 04
0.4
13.19
13.6
Charnock Fund (05)
4.8
0.02
4.8
Clean Beach Parcel Tax Fund (06)
0.5
3.11
3.6
Beach Fund 11
10.1
1.94
8.2
Miscellaneous Grants Fund (20)
4.0
0.11
4.1
Beach House Fund (24)
1.2
1.94
3.1
Water Fund (25)
19.2
0.01
19.2
Pier Fund 30
5.5
0.13
5.6
Waste Water Fund (31)
11.8
0.01
11.8
Civic Auditorium Fund (32)
1.2
1.74
2.9
Airport Fund 33)
4.2
0.53
4.7
Stormwater Fund 34
2.5
2.11
0.3
Big Blue Bus Fund (41)
64.3
0.69
65.0
Self Insurance - Auto Fund (58)
1.8
0.19
2.0
Other Funds
126.5
126.5
Total $ 531.9 $ 18.29 $ 55u.0
Net appropriations for the General Fund will increase by $0.67 million at midyear.
Significant appropriation increases include $0.7 million to correct historical under -
budgeting of vehicle fuel and maintenance in the Police Department budget; $0.6 million
associated with ongoing annual operating and maintenance costs for on -street parking
meters, previously approved by City Council in October 2011, but not budgeted; $0.5
million to correct budget adjustments made in the CIP reprioritizing process conducted
as part of the FY 2012-14 CIP Biennial Budget process; $0.4 million for construction
costs associated with increased demand for lit and dark fiber lease services, which are
fully offset by increased revenues; $0.2 million for the reappropriation of unspent
Human Services Grant Program funds; and $0.2 million for pass-through to the Santa
Monica -Malibu Unified School District (SMMUSD) for Measure Y, reflecting an increase
in transaction and use tax revenue.
17
The increases are primarily offset by a $2.2 million decrease in expenditures reflecting
the elimination of the currently -budgeted Civic Auditorium subsidy due to lower than
anticipated capital expenditures in FY 2011-12 and FY 2012-13 as a result of the
impending closure of the facility; and the elimination of the Airport Fund advance for FY
2012-13, due to carried over unspent FY 2011-12 capital funds.
Expenditure Adjustments — Other Funds
Proposed midyear appropriations in other funds total $17.6 million. Significant changes
reflected in the request include the following:
The Special Revenue Source Fund expenditures will increase by $13.2 million to
reflect the programming of revenues from the sale of a City -owned affordable
housing property at 1920 Ocean Avenue. The funds will be used to create
affordable housing according to the Affordable Housing Trust Fund Guidelines.
The Clean Beaches Parcel Tax Fund expenditures will increase by $3.1 million,
reflecting a $2.1 million reimbursement to the Stormwater Fund for operation and
maintenance associated with SMURRF and other stormwater-related work, $0.7
million related to a capital project funded with Clean Beach Parcel Tax funds, and
$0.2 million related to a transfer to the General Fund for staff costs associated
with Stormwater Fund project management.
As noted above, the Civic Auditorium Fund experienced a budget savings of $1.7
million due to the elimination of capital spending in anticipation of its closure. As
a result, the Fund will not require a General Fund subsidy in FY 2012-13.
Staffing Adjustments
Staffing changes reflect operational changes, title changes and equity adjustments in
various departments. The total impact to the General Fund is an increase of $123,639,
representing a net increase of 1.0 FTE for a Parking Citation Review Officer (other new
positions are offset by deletions). In other funds, the total impact is an increase of $
30,480 representing no net FTE change. All staffing adjustments are identified in
Attachment B2.
in
Organizational Support Program (OSP) for Santa Monica's Arts and Culture Non -Profits
and Human Services Grant Program
The City engages in a competitive process to allocate funds to non-profit arts
organizations through the Cultural Affairs Division's Cultural Arts Organizational Support
Program (OSP). Funds are awarded to core agencies for a multi-year period and
provide predictable resources for program operation and services to the community. On
June 21. 2011, Council awarded two-year grants to eleven nonprofit arts and culture
agencies through OSP. While the Human Services grant program runs on a four-year
cycle which will end on June 30, 2015, the OSP is on a two-year program, which ends
on June 30, 2013.
Staff had initially envisioned opening the next OSP grant funding cycle by issuing an
RFP in February 2013. Staff proposes to extend the grant cycle for the current
grantees, with one exception, for two additional years, which would align the program
with the Human Services grant program funding cycle. The next grant cycle for OSP
and for the Human Services Grant Program (HSGP) would start in FY 2015-16.
The exception for automatic extension would be the Santa Monica Symphony, which is
currently in the midst of a transition and working to meet all its obligations under the
present grant. Given the state of flux of the organization, their grant would be subject to
review and possible amendment.
While this precludes any new grantees from being included in OSP for the next two
years, it also ensures stability of funding for the majority of Santa Monica cultural
agencies that are the target group for this program.
Pursuant to the Council action on January 8, 2013, community partners and members
of the Cradle to Career initiative will be engaged in a conversation about the current
need for services for at -risk youth ages 16-24. Findings will inform a process that will
guide funding recommendations in the City's proposed FY 2013-15 budget.
19
Community and Cultural Services Fees
The Community and Cultural Services Department establishes fees for the use of
community and recreational facilities. Due to increased demand for pool space at the
Santa Monica Swim Center, staff has been working with users and the Recreation and
Parks Commission to update the Pool Allocation Guidelines. The attached fee
resolution (Attachment C) would modify the definition of a resident organization and
adjust user priorities for allocating pool time at the Swim Center.
The current fee resolution states that, in order to qualify as a resident organization, at
least 50 percent of the organization's total membership must be Santa Monica
residents. Since some of the swim organizations are regional in nature and have
members that may not use the Swim Center, staff proposes to modify the requirement
to be considered a resident organization by requiring that at least 50 percent of an
organization's participants using the Swim Center be Santa Monica residents. This
proposed change supports use of the Swim Center by Santa Monica residents without
penalizing organizations that have members from the broader region who tend to use
other swim facilities outside the City. In addition, staff proposes to amend the user
priorities to include non-profit organizations using the Swim Center 2,000 hours or more
annually for youth and adult programs. Although fees were implemented for these user
priorities in July 2011, adjustments to the user priority schedule, which is used by staff
to allocate pool space, were inadvertently left out of the resolution.
The Recreation and Parks Commission considered the proposed changes to the Swim
Center Pool Allocation Guidelines on September 20 and November 15, 2012. The
Commission, after receiving public input, supported the changes to the residency
requirement and user priorities.
Continuing Issues for Consideration During the Budget Process
During the second week of November the City conducted its annual community
meetings series Santa Monica Talks. Formerly called "Can We Talk?", the three
meetings, which were held at various times and locations throughout the City, afforded
20
residents and staff from all City departments the opportunity to connect face-to-face and
discuss what is happening in Santa Monica.
The meetings were designed to improve communication between the City and
residents, provide essential information about safety and quality -of -life issues, and hear
from residents firsthand about their needs, concerns and ideas for the future.
In total, 161 people attended the community meetings this year. Comments were
received on comment cards submitted during the three community meetings. An
additional 16 people submitted comments on the Santa Monica Talks website
(hftp://www.smgov.net/smtalks).
The website facilitated public outreach prior to the meetings. After the meetings, the
website became a repository of information, where a video of the City Manager's
presentation, the presentation slide deck and frequently asked questions are available
to the public. From October 1, 2012 through January 1, 2013, 1,264 people visited the
website, of which 1,070 were unique visitors who downloaded City information, explored
the frequently asked questions page or watched the City Manager's presentation.
Input from comments and questions submitted online as well as at the three community
meetings is summarized below:
Land use: Community members in attendance expressed concerns about development.
Questions about what, where and how Santa Monica will allow new development in the
future were frequently raised. Attendees inquired about how construction and
development activity will impact traffic and other aspects of daily life.
Shared streets: Community members in attendance inquired about efforts to increase
safety for pedestrians, bicyclists and motorists as well as improve multimodal
transportation within the City's shared streets. Attendees were pleased with new bike
21
lanes, bike racks and storage facilities. They felt the new facilities encouraged bicycle
ridership and alternatives to single -occupancy vehicles. Future wished for
improvements included new crosswalks, bike sharing, bicycle detection at intersections,
educational events, and additional bicycle parking.
Parking and traffic circulation: Community members in attendance suggested focusing
resources to mitigate cut -through traffic and synchronize the City's signalized
intersections. Attendees voiced concern about limited parking resources and the
operation of new parking meters. Also, they anticipate real-time Big Blue Bus
arrival/departure information.
Sustainability and the environment: Many inquired about ways to reduce waste and
increase recycling within the community. A major topic was water conservation,
wastewater and urban runoff management. Community members in attendance
supported renewable energy initiatives coupled with new efforts to encourage electric
vehicle infrastructure.
Additional concerns and comments included the future of the airport, enforcement of
quality of life issues and the provision of social services. These points, along with online
inquiries and comment cards submitted during the community meetings, are
summarized in the Frequently Asked Questions (FAQ). The FAQ is available online,
was emailed to all who attended Santa Monica Talks and is included in Attachment D.
Public comment regarding major themes from Santa Monica Talks may be offered
during the January 22, 2013 Council meeting.
Resident Survey
Fairbank, Maslin, Maullin, Metz & Associates (FM3) conducted a telephone survey of
404 residents on behalf of the City of Santa Monica between January 8th and 13th. The
survey asked residents their awareness of and attitudes towards the City in general,
specific services, and policy initiatives. The survey also asked residents to report
22
specific transportation -related behaviors; where they received information about City
programs, events and issues; among other issues. The survey also tracked a number
of years of questions asked as far back as 2002, to determine trends over time. The
margin of error for questions asked of all residents is plus or minus 4.9 percent.
The survey results show that while some of the positive ratings have slightly declined
since 2011, Santa Monica residents continue to have generally positive opinions of
Santa Monica overall and in specific aspects of life. They overwhelmingly see the City
as an excellent or good place to live (92 percent), and give the City far more positive
than negative reviews for providing City services overall and in specific areas. While
residents are not without concerns—in particular about homelessness, traffic, lack of
parking, affordability of housing and growth and development—more than six out of ten
are satisfied with the job the City is doing in providing City services overall. The largest
percentage of residents (between 68 and 73 percent) are satisfied with such specific
services as 911 emergency services, trash and recycling collection, public library
services and the ' maintenance of City parks. Further, about one-third of residents
reported that they contacted the City in the last year for reasons other than an
emergency. Among those who have had direct contact with the City staff, high
percentages (between 63 to 74 percent) rated their interactions positively for staff's
courteousness, knowledge and responsiveness.
As the City plans for the future, the survey provides additional insight into what
residents would like their elected officials to consider in developing policies.
Specifically, within the context of City agreements with developers of large development
projects, residents rated the importance of including a variety of community benefits as
follows: affordable housing (68 percent very or somewhat important), alternative
transportation options (67 percent), employment and training opportunities (65 percent),
community open space (63 percent), childcare (56 percent), arts and culture venues (54
percent) and historic building preservation (53 percent). The survey findings also
illustrate that the City must increase its efforts to communicate with its residents directly
23
through a combination of City -sponsored information sources and other sources to
ensure that residents feel informed as to what the City is doing on their behalf. A
detailed analysis of all key findings will be available for review this spring.
Budget Process
Over the next several months, staff will prepare the FY 2013-15 Proposed Biennial
Budget, as well as the FY 2013-14 exception -based CIP Budget (this will be the second
year of the FY 2012-14 Biennial CIP Budget). The Proposed Biennial Budget will be
submitted to the Council and available for public review prior to the Budget Study
Sessions on May 28-29, at which point staff will present department budget
presentations to the Council. Council will convene a public hearing on June 25, 2013
to consider, receive public comment, make revisions to, and adopt the first year and
approve the second year of the Biennial Budget.
Staff seeks community input on the Biennial Budget. Members of the public can provide
comments for consideration during the budgeting process by sending an email to
councilAsmgov.net or by giving public testimony at the May study sessions. Boards,
Commissions, and Task Forces historically make their recommendations and priorities
known through written communication to the Council, and staff encourages these
groups to continue this practice.
Financial Impacts & Budget Actions
The budget impacts related to the adoption of the midyear changes are detailed in
Attachment A of this report.
Prepared by: Oscar Santiago, Principal Budget Analyst
Forwarded to Council:
Director of Finance
Rod Gould
City Manager
24
Attachments:
A: Proposed FY 2012-13 Midyear Revenue and Expenditures Changes
131: Resolution Establishing New Classification and Adopting Salary Rates for Certain
Positions
132: Position and Classification Changes
C: Resolution of the City of Santa Monica setting and revising fees in the
Community and Cultural Services Department
D: Frequently Asked Questions from Santa Monica Talks
25
FY 2012-13 Midyear Budget Adjustments - Operating and Capital
Revenue Budget Adjustments
Attachment A
Department/Division/Project Name
Description
Adjustment Amt.
$ in thousands
Increase/(Decrease)
General Fund
Finance
6,400.7
Business and Revenue Operations
Property Taxes':
2,113.5
Increase reflects higher than projected year to date receipts, revised residual
payment related to RDA dissolution, and lower than projected property tax
administration service charges from Los Angeles County.
Sales Taxes2:
1,627.1
Increase reflects stronger than anticipated growth in local retail spending.
Transient Occupancy tax:
1,452.0
Increase primarily reflects increases in average room rates and a slight occupancy
increase.
Real Property Transfer Tax:
1,465.0
Increase primarily reflects sales of very large properties.
Parking Facility Tax:
467.0
Increase reflects higher than projected year to date receipts.
Interest:
(1,600.0)
Decrease reflects interest rates remaining at record lows, and the impact of
investing a significant portion of the portfolio in shorter maturities with low yield
pending final RDA resolution.
Utility Users Tax:
(849.0)
Decrease reflects delayed Southern California Edison Rate Plan implementation.
Business License Tax:
(400.0)
Decrease reflects lower than projected year to date receipts.
4,275.7
FY 2012-13 Midyear Budget Adjustments - Operating and Capital
Attachment A
Adjustment Amt.
Department/Division/Project Name Description $ in thousands
Increase/(Decrease)
Parking Operations Increase reflects revised parking meter rates. 1,125.0
Increase reflects greater than anticipated use of downtown parking structures. 1,000.0
2,125.0
11..E ,,y.......
Community Broadband Reflects increased demand for Dark Fiber/Lit Services, offset by corresponding 400.0
expenditure increase.
olice (1,900.0)
Administrative Services Reflects decreased citation revenue. (1,900.0)
Administration Reflects decreased ambulance service revenue due to change in payer mix. (300.0)
rStreet and Fleet Services Decrease adjusts revenue projection for street and fleet work performed for other (175.0)
funds/departments to accurate level.
TOTAL GENERAL FUND REVENUE ADJUSTMENTS $4,425.7
Other Funds
21.5
SPECIAL REVENUE (04)
Police Bequest from Robert Treisman to the Animal Shelter (received in 1995). 21.5
BEACH (11) 1,947.5
Community and Cultural Services Reflects increase in beach parking revenue, based on new rates. 1,947.5
FY 2012-13 Midyear Budget Adjustments - Operating and Capital
Attachment A
Department/Division/Project Name
Description
Adjustment Amt.
$ in thousands
Increase/fDecrease)
MISCELLANEOUS GRANTS (20)
(184.6)
Police
Reflects State reimbursement for 911 Voice Logger upgrade, received in July 2012.
109.9
Decrease reflects lower reimbursement due to a project delay, and small increase
(294.5)
Public Works
to reflect finalized project.
606.3
PIER (30)
City Manager
Reflects increase in parking revenue, based on new rates.
606.3
CIVIC AUDITORIUM (32)
202.5
Reflects event and base camp bookings above projections due to the Civic
202.5
Community and Cultural Services
Auditorium's staying open longer than projected.
AIRPORT (33)
103.1
Reflects reimbursements to Airport from tenants for Electricity, Power and Water.
103.1
Public Works
This revenue is an offset to utilities expenditure accounts.
BIG BLUE BUS (41)
2,366.3
Reflects final actual allocation from funding sources and adjustments for greater
2,366.3
Big Blue Bus
than expected advertising revenue.
TOTAL OTHER FUND REVENUE ADJUSTMENTS
$5,062.5
FY 2012-13 Midyear Budget Adjustments - Operating and Capital Attachment A
Department/Division/Project Name Description
Expenditure Budget Adiustments
Adjustment Amt.
$ in thousands
Increase/(Decrease)
City Council Appropriates unspent FY 2011-12 Council Contingency balance 33.0
Community and Cultural Services 331.5
Human Services Reappropriated funds for Ken Edwards Center construction ($202.6); unspent FY 275.4
2011-12 early childhood funds ($31.0); PYFC funding not appropriated with budget
($25.0) and correction to budget entry error ($16.9)
Community Recreation League Director payments for additional leagues. 59.9
Public Landscape Staffing changes - detail in Attachment B2. (3.8)
City Manager 16.2
Office of Emergency Management Staffing change - detail in Attachment B2. 16.2
Administration
Funds Agenda Management software purchase
38.5
615.4
Finance
Administration
Staffing change - detail in Attachment B2.
2.1
Financial Operations
Staffing change - detail in Attachment B2.
1.2
Parking Operations
Increase reflects ongoing operating and maintenance costs for on -street parking
612.0
meters, as approved by City Council on October 25, 2011.
Human Resources;
42.3 j
Administrative Services
Staffing change - detail in Attachment B2.
17.0
Employment and Organizational
Staffing change - detail in Attachment B2.
12.6
Development
Employee Relations and Benefits
Staffing change - detail in Attachment B2.
12.6
FY 2012-13 Midyear Budget Adjustments - Operating and Capital
Attachment A
Adjustment Amt.
Department/Division/Project Name Description $ in thousands
Increase/(Decrease)
Administration Staffing change - detail in Attachment B2. 47.
Community Broadband Funds constructions costs due to increased demand for services - offset by 400.0
corresponding revenues.
...... ,
Administration and Facilities Staffing change - detail in Attachment B2. 14.5
tanning and Community Development (24.5)
City Planning/Development Review Staffing change - detail in Attachment B2. (32.7)
Code Compliance Funds transfer from Public Works/Street Maintenance for weed abatement. 8.2
Administrative Services Corrects historical underbudgeting for fuel and for vehicle maintenance. 691.0
Special Enforcement New position - Parking Citation Review Officer, offset by decrease to overtime (9.7)
budget, reflecting funds move to the Harbor Unit (Pier Fund).
Fire I
15.2
Administration Reappropriates encumbrances from Fire capital project moved to operating, for 15.2
uniforms/equipment.
Public Works 158.1
Administrative Services Staff change - detail in Attachment B2. (82.4)
Engineering Staffing change, rent budget increase due to RDA funding loss, and funds transfer to 128.3
Planning for weed abatement.
Architecture Services Rent budget increase due to RDA funding loss. 22.4
Facilities Maintenance Corrects salary projection report error and funds trades interns 89.8
FY 2012-13
Midyear Budget Adjustments - Operating and Capital
Attachment
Adjustment Amt.
Department/Division/Project Name
Description
$ in thousands
Increase/ (Decrease)
(2,234.4);
Non -Departmental
Reflects Measure Y Payment to SMMUSD based on increased Transaction
228.1
All other transactions
projected
Transfers
and Use Revenues.
Reduces budgeted Civic Auditorium subsidy. Offsetting entry in the Civic
(1,740.3)
Auditorium Fund (32).
Transfers
Reduces budgeted Airport advance. Offsetting entry in the Airport Fund (33).
(500.0)
Transfers
Transfer from the 06 (Measure V) fund for Watershed Program Manager salary.
(222.2)
Offsetting entry in the 06 fund.
536.7
Capital Improvement Program Changes
Shotgun House Preparation
This project was funded in FY 2011-12 but not fully committed in FY 2011-12.
15.0
C014030.589000
Funding would provide for project completion.
Citywide Facilities Maintenance Program
This project was funded in FY 2011-12 but not fully committed in FY 2011-12.
521.7
M010085.589000
Funding would provide for emergency projects completion.
Other Funds
SPECIAL REVENUE SOURCE (04)
Community and Cultural Services
Police
Non-Departmental/Affordable Housing
CHARNOCK (05)
Public Works
TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS $670.9
13,194.0
Unspent funds in operating budget for Martin Charitable Trust, moving to the 04 22.6
from the General Fund.
Bequest from Robert Treisman to the Animal Shelter (received in 1995). 21.5
Appropriates funds from the sale of the City -owned property at 1920 Ocean Way 13,150.0
(revenues were budgeted in September 2012 ). Funds will be used for housing
production.
20.9
Budget entry correction 20.9
FY 2012-13 Midyear Budget Adjustments - Operating and Capital Attachment
Adjustment Amt.
Department/Division/Project Name Description $ in thousands
Increase/(Decrease)
MEASURE V/CLEAN BEACHES (06) 3,106.4
Public Works/Non-Departmental Transfers out to the Stormwater Fund (34) for operations, and to the General Fund 2,327.4
for Watershed Program Manager salary. Offsetting entries in the Stormwater and
General Funds.
Capital Improvement Program Appropriation matches budget amount to available Measure V funding. 779.0
Measure V Regional Implementation
C066024.589000
BEACH (11) (1,944.9)
Community and Cultural Services Transfer adjustment to recognize over subsidy to Beach House fund in FY 2011-12. (1,944.9)
Offsetting entry in the Beach House Fund (24).
MISCELLANEOUS GRANTS FUND (20)
109.9
Police
Reflects State reimbursement for 911 Voice Logger upgrade, received in July 2012.
109.9
BEACH HOUSE (24)
1,944.9
Community and Cultural Services
Transfer adjustment to recognize over subsidy from the Beach fund in FY 2011-12.
1,944.9
Offsetting entry in the Beach Fund (11).
WATER (25)
10.1
Public Works
Staffing change - detail in Attachment B2.
10.1
PIER (30)
126.8
Police
Move funds from the Police Department's General Fund budget to the overtime
49.0
budget in the Harbor Unit (Pier Fund)
City Manager
Corrects salaries and wages and adjusts historically underfunded water budget.
77.9
FY 2012-13 Midyear Budget Adjustments - Operating and Capital
Department/Division/Project Name Description
WASTEWATER (31)
Public Works
CIVIC AUDITORIUM (32)
Community and Cultural Services
AIRPORT FUND (33)
City Manager
Non -Departmental
STORMWATER (34)
Public Works
BIG BLUE BUS (41)
Big Blue Bus
Staffing change - detail in Attachment B2.
Transfer adjustment to recognize over subsidy from the General Fund in FY 2011-
12. Offsetting entry in the General Fund.
Adjustment to correct negative in no longer used airport division.
Removes budgeted General Fund subsidy ($500.0) and reduces budgeted Small
Business Development Corporation lease expense to reflect market value ($18.9).
Offsetting entry for subsidy reduction in the General Fund (01).
Transfer in from the Measure V/Clean Beaches fund (06) for operations. Offsetting
entry in the 06 fund.
Increase is for capitalized labor; reflects current capital projects and the purchase of
new buses, which will increase labor -related expenses.
RISK MANAGEMENT ADMINISTRATION (58)
Finance Recognizes an increase in the City's property insurance premium.
Attachment A
Adjustment Amt.
$ in thousands
Increase/(Decrease)
1,740.3
1,740.3
528.4
9.5
518.9
(2,105.2)
(2,105.2)
688.7
688.7
191.2
191.2
TOTAL OTHER FUNDS EXPENDITURE ADJUSTMENTS $17.620.0
FY 2012-13 Midyear Budget Adjustments - Operating and Capital Attachment A
Adjustment Amt.
Department/Division/Project Name Description $ in thousands
Increase/ (Decrease)
1/ Includes Property Taxes -Unsecured, Supplemental Property Tax, Property Taxes -Delinquent, Statutory Pass-Throughs, Property Taxes -Secured.
2/ Includes Sales /Use Tax, Sales Tax In -Lieu, and Transaction and Use Tax
Frequently Asked Questions SM Talks 2012
Public Safety
1. When will Santa Monica begin reporting crime stats to the LA Times database?
The Santa Monica Police Department has provided the LA Times with crimes statistics on a
daily basis for approximately two years. However, they have yet to add this data to their
mapping program. As an alternative you can access this same data at
www.erimemaooi09--c 7.
2. Is it illegal to smoke on the beach bike path? If so, what is the City doing to enforce the no -
smoking law on the beach bike path?
Yes, it is illegal to smoke on the beach bike path per Santa Monica Municipal Code 4.44.020
(a) (3).
To enforce this law Santa Monica Police proactively patrol the beach area with sworn and
civilian staff. If an infraction is observed then the appropriate level of action is taken.
The Police Department also relies on the public to report these types of violations by calling
the department or finding police department staff that are in the field. This increases the
Police Department's ability to identify and take action in enforcing this law.
3. How will the city be impacted by a Tsunami? What can I do to prepare?
There are two types of tsunamis events which could potentially impact Santa Monica.
1) A local source tsunami would result if a significant earthquake or underwater landslide
were to occur in or near Santa Monica or the southern California region. It is possible that a
local geologic event could produce a tsunami which could cause limited damage along the
beach, on the Santa Monica Pier, and in the first stories of structures located west of Main
Street. In this case, the earthquake would be the only warning of an impending tsunami.
Tsunami hazard zone and tsunami evacuation route signage have been installed in the
identified inundation area to alert people of the potential hazard.
2) A distant source tsunami could be caused by a seismic event that has occurred somewhere
else in the world, potentially thousands of miles from Santa Monica. Over the course of
several hours, a tsunami wave created by the distant seismic event can travel and impact
Southern California. In this case, the City would likely have time to implement its tsunami
response/ evacuation plan and notify those located in the potential inundation zone. This
notification would be made through the City's emergency alert and notification system, SM
Alertslwhich would disseminate warnings to residents and businesses in the inundation
zone. The City would also use vehicles with public address systems to assist in the
notification process and work with regional partners to keep city leadership and other
stakeholders informed of the potential threat.
The best way to prepare for a tsunami event is to 1) identify if you work, live or play in the
potential tsunami inundation zone (information is available on the city's Office of Emergency
Management website), 2) sign up for SM Alerts!, 3) procure a NOAA Weather Radio, which
automatically activates when a tsunami warning is issued, and 4) make a family emergency
plan which identifies potential reunification sites outside of the tsunami inundation zone if a
tsunami were to occur.
For further information please visit the Office of Emergency Management website at
www.smeov.netfOEM or call (310) 458-2263.
Pedestrian and Bicycle Safety
4. What is the City doing to crosswalks to make roads safer for pedestrians?
Santa Monica takes pedestrian safety very seriously. The City designs, constructs, and
maintains all elements of its transportation system to ensure user safety. We systematically
evaluate accidents and investigate locations to immediately address any identified safety
concerns. Based on careful analysis and availability of funding, the City has also provided
enhancements to increase driver yielding response and increase pedestrian awareness. In the
past the City has performed assessments for entire corridors — such as Wilshire Boulevard,
Santa Monica Boulevard, Main Street, 4`h Street, Montana Avenue, Ocean Park Boulevard,
and Pico Boulevard.
Efforts to ensure that Santa Monica remains safe and walkable are ongoing and currently
include:
® Educating and fostering awareness of motorists, pedestrians and bicyclists through a
Watch the Road safety campaign.
A Pedestrian Action Plan (in process) to identify and prioritize physical improvements
to city streets, such as crosswalk upgrades, that encourage walking and improve
safety. The Pedestrian Action Plan will address pedestrian safety with education,
outreach and physical changes. The community is invited to participate the evening
of Monday. January 28 at the Civic Auditorium to provide early input into this effort.
5. What bicycle transit improvements are planned for FY2012-2013?
The City published its proposed two-year work effort on Bikeway Improvements last
November, when the Bike Action Plan was adopted. In the first year, over 14 miles of bike
lanes and 13 miles of shared roadways were introduced. In the next fiscal year, the City is
working on both bike programs and capital projects including bike sharing, bicycle detection
at intersections, educational events, and additional bicycle parking (both racks and corrals).
A grant -funded planning effort is also getting started for the Michigan Avenue Neighborhood
Greenway linking the beach, civic center, high school, Expo stations and neighborhoods south
of the 1-10 with a landscaped greenway. The Colorado Esplanade project will be the first to
establish a physically buffered bike lane in Santa Monica. Moving forward, other streets
under consideration for cycle tracks or other separated treatments include segments of 17th
Street, 16th Street, Michigan/20th Street and Olympic Drive.
6. How is the City ensuring bicyclists follow the law while riding on our streets?
The City is using engineering, education and enforcement to promote safe riding. The City
provided free bicycle education classes, partnered with the school district on bicycle
education, joined a county -wide safe streets initiative, improved signs and markings on over
30 miles of streets, and now, over 20 new sidewalk locations. The Police Department
established a Bicycle Ambassador position to identify best practices in enforcement.
7. Is the City working towards a diversion program for bicyclists who receive citations?
The City is developing an educational curriculum that could be offered as part of an
alternative enforcement or adjudication program. The Police Department is considering
possible cost -neutral programs that could promote safety and compliance with local law.
8. What types of school and community-based bicycle safety training programs are being
offered? How can the community support these programs?
The City is actively working with four schools on a grant -funded Safe Routes to School pilot
program providing education and encouragement to safely walk and bicycle. The pilot is
focused on Lincoln Middle School, John Adams Middle School, Roosevelt Elementary School,
and Will Rogers Elementary School in collaboration with the Santa Monica -Malibu United
School District and school Parent -Teacher -Student Associations. Since the beginning of the
school year, the program included weekend workshops for students and parents, a Family
Bike Fest, and Bikelt! Walklt! events including the first ever walking school buses in Santa
Monica.
The City created a free Bike Campus at 1 Ocean Park Boulevard (Barnard Way and Ocean Park
Boulevard), where everyone can practice bike handling skills and road skills in a comfortable,
off-street location. Video education segments are at www.bikesantamonica.org. Bicycle
safety training opportunities for all members of the community, including specifically for
seniors, is provided through the Santa Monica Bike Center and Sustainable Streets
(htto. sustainablestreets.org%education/).
The City offered free eight-hour bike classes every month last year through an Office of Traffic
Safety grant.
This year there is a monthly skills clinic (sign up at httn°/�ustainabiestreets.orelbieycle-skai6sm
clinics ), and special education and training events are being planned such as a Kidical Mass
ride.
The community can support these efforts by letting people know about them, participating,
volunteering, making suggestions, encouraging others to participate, spreading the word
about upcoming events, supporting grant applications and other efforts to provide resources
that make them possible, and practicing safe riding whenever they are on the road.
Specifically, residents can become a certified bicycle instructor (the League of American
Bicyclists offers a League Certified Instructor training course) and teach classes locally. Parents
can also become involved through their schools by participating in Bike It! Walk It! events and
looking for opportunities to encourage safe bicycling and walking habits.
Community Spaces and Services
9. Can the City repurpose alley ways into alternative uses and pick up refuse on the street
instead?
Our alleys are heavily used for numerous critical activities including trash and recycling,
access, and deliveries. We continue working interdepartmentally to improve alleys that
support many uses. For example, as described in both Creative Capital and the Parks and
Recreation Master Plan, alleys under certain circumstances could be considered as
opportunities for the integration of cultural and/or recreational uses in the future.
10. What are the plans for the Senior Center on Ocean Avenue? How will Seniors access the
facility in the future?
In Spring 2013 following upgrades to the first floor of the Ken Edwards Center (KEC), many of
the senior activities currently held at 1450 Ocean Avenue will transition to renovated
space. WISE & Healthy Aging, located on the second and third floor of the KEC, will integrate
the programming into the full range of services for older adults that they already offer at the
KEC.
Relocating senior activities to KEC will create a one-stop center for senior services, which is
both a national best -practice and a recommendation of the City's 2008 Evaluation of Services
for Older Adults. Programming at 1450 Ocean Avenue will gradually transition to a greater
emphasis on community -cultural programming, offering senior -focused classes and activities
during the day, and programming for all adults in the evenings and on weekends. Seniors
will be able to continue to access programs at 1450 Ocean Avenue through Emeritus College
and the City's Community Programs Division, much as they do now.
In early 2013, a series of community meetings will be held to gather suggestions regarding
the types of programming adults of all ages would like to see at 1450 Ocean Avenue. If you
would like to stay informed of these meetings, please send your contact information
to: seniorkroarams.maitboxpsmeov.net.
11. What is the long-term plan for the Civic Auditorium?
The Santa Monica Civic Auditorium will close on June 30, 2013. The City is in the process of
researching options for the future of the facility based on the feedback received from the
public and City Council at the October 23, 2012 study session. Major capital investment is
needed to upgrade the Civic Auditorium for public assembly and to meet the technical
requirements of today's performances. At a minimum, $8-$10 million is needed for seismic
upgrades and associated ADA work, while the budget for complete renovation is
approximately $52 million.
More research and discussion, including community meetings, will occur this winter. Staff
will make recommendations for next steps to the City Council in Spring 2013.
12. Are there any plans for a dog park on the beach or elsewhere in the city?
There are currently four off -leash dog areas in Santa Monica at the following locations:
® Airport Park Dog Park, 3210 Airport Avenue
® Herb Katz Dog Park at Joslyn Park, 633 Kensington Road
® Memorial Park Dog Run, 1401 Olympic Boulevard
® Pacific Street Dog Park, Pacific and Main Streets
The Santa Monica City Council has expressed support for establishing an off -leash dog beach
pilot program for several years. However, since Santa Monica State Beach is owned by the
State of California, State approval is required for any program on the beach. The State
maintains the position of no off -leash dog beaches for all State parklands. The prohibition is
based on concerns regarding the risk to threatened species, such as the snowy plover, and to
sensitive ecosystems, the possible threat to the safety of visitors, wildlife, other dogs,
interference or displacement of recreational users, and health issues related to dog feces and
dog urine in the water and sand. City staff will continue discussions with the State Parks
Department to explore the possibility of establishing a pilot dog beach on Santa Monica State
Beach but it is unlikely there will be a policy change in the near future.
13. Can residents plant trees in small grass areas (parkways) in front of homes?
Residents are allowed to plant trees in the parkway adjacent to their homes as long as they
plant the approved designated species and follow the spacing guidelines in the Urban Forest
Faster Plan http:// . Residents should use a
licensed landscape contractor to plant their trees and they must obtain a Tree Planting
Permit from the Public landscape Division. Include contact info for permit application.
14. What types of trees are being planted on Ocean Park Blvd? How often will they be trimmed?
The wood trees in the new medians are Koelrueteria paniculata and Melaleuca linerifolia.
The wood trees in the bio-swale on the north and south side of Ocean Park Boulevard are the
Arbutus 'Marina' and were planted among the existing Cassia leptophylla. These trees will
be pruned on a 3 — 5 year cycle; however they won't be pruned for at least the first 2 years
after they have been planted.
The palms in the median are the Butia capitata and the palms in the parkway adjacent to the
mural are Wodyetia bifurcate. They will be pruned on a 2 — 3 year cycle.
15. Are there additional locations the City has or is identifying for community garden space?
The City understands there is a demand for additional community gardens in Santa Monica
and is open to suggestions regarding potential opportunities and funding sources, however
there are no plans for additional gardens at this time. There are other opportunities for
residents to become involved in gardening through the Garden Sharing Registry. This free
service connects Santa Monica homeowners with prospective Santa Monica gardeners.
Homeowners may choose from a list of avid gardeners in need of space to grow.
Homeowners and gardeners work together to organize a partnership that includes schedule
of use, cost sharing, supply storage and length of commitment. The home/property owners
provide the land and the water and the gardeners do the work. Together, they share the
crop!
For registration information, please visit
�;96wwdae.sm�ov. net jd mentslceardensharinx.aspx
16. Will the City make a permanent ice-skating rink?
The City is currently seeking a development team to implement the community's vision for the
City -owned property on Arizona Avenue between Fourth and Fifth Streets. The criteria for
development of the site include the creation of a publicly accessible open space that can
accommodate a variety of seasonal uses, including an ice-skating rink.
Sustainability and the Environment
17. What information and programs exist to reduce waste and encourage recycling?
The Resource Recovery & Recycling Division offers numerous programs to reduce waste and
encourage recycling. Information concerning existing programs and our proposed Zero Waste
Strategic Plan can be found on our web page at htt_p: Jwww.smeov.netfr3 . The Resource
Recovery & Recycling Division also has a booklet describing all of our existing programs that
reduce waste and encourage recycling. The booklet can be obtained by contacting Resource
Recovery & Recycling Division at 310-458-2223 or reevc!ln&@smeov.net to request an
electronic copy.
18. What is the City doing to conserve water?
The City continues to use water efficiently through the installation of high -efficiency water -
savings fixtures in all new and remodeled buildings, such as the new Pico Library, and beach
restrooms and City Hall restrooms. The City continues to upgrade its aging irrigation systems
in parks and open spaces to more efficient products. Since 2007, the water used in parks and
open spaces has been reduced by 17 percent. In addition, within private buildings and
properties, the City offers rebates for indoor and exterior water efficiency improvements,
and landscape workshops to help residents and businesses save water and comply with local
water -efficiency regulations. More information on city rebates can be found at the Office of
Sustainability and the Environment website, htt %VSVsust4inablesm.o rebates.
19. How does the City evaluate the ways increasing development will impact the city's water
resources?
The City's Department of Planning and Community Development (PCD) is responsible for city-
wide planning and development issues and coordinates closely with the Water Resources
Division to ensure adequate water supply and wastewater collection system capacity exists
to accommodate future growth. The recently adopted Land Use and Circulation Element
(LUCE) of the City's general plan includes a comprehensive Water Supply Assessment.
20. What green energy projects are planned for Santa Monica?
Fully funded City solar projects currently under construction:
• Parking Structure Six — 80 kW of solar plus 30 electric vehicle (EV) charging spaces
• Pico Library — 6-7 kW of solar
• Village Low Income housing in the Civic Center —180 kW solar
• Santa Monica municipal pool — solar thermal to heat a small portion of swimming
pool water
• City capital projects are evaluated for onsite renewable energy potential
SMMUSD and Santa Monica College solar projects currently underway:
• Installation of solar on 6 SMMUSD elementary schools
• SMMUSD high school renovation project includes solar (funding sources currently
being identified)
• SMC new Science Building will have solar — quantity unknown at this time
City energy efficiency and electric vehicle charging projects:
• Civic Center parking structure lighting retrofit will save 191,000 kWh annually
• Library parking garage lighting retrofit will save 301,743 kWh annually
• An additional 24 EV charging stations will be installed in various locations in the
downtown parking structures
And, the City is currently auditing all of its facilities for potential energy efficiency projects that will
save money and reduce operating costs.
21. What is being done to avoid urban runoff? Who can I contact for more specific information?
The installation of post -construction capture devices to harvest rainwater or storm water and
enforcement of water wasting and urban runoff codes are two programs to reduce urban
runoff volume, which also reduces pollution. Each of these programs also involves education
about urban runoff challenges and solutions. Information about urban runoff is available at
www sustainablesar ordrunoff.
A city law (urban runoff pollution mitigation ordinance SMMC 7.16) requires construction
projects that exceed specific building thresholds to install post -construction devices which
harvest a specific amount of precipitation from roofs, driving and parking surfaces exposed to
rain. LA County and the LA Regional Water Quality Control Board set standards that the City
must abide by in capturing water runoff. By harvesting water, pollution in the water is
treated onsite and kept out of Santa Monica Bay. This water resource can also become a
usable non-potable water supply for indoor and outdoor applications.
City staff also enforces water wasting and runoff codes to ensure there is no runoff, e.g.
pollution, from specific types of activities that cause runoff, such as irrigation overspray and
leaks, hosing of hardscapes, and construction site discharges. City staff is in the field daily in
to respond to violation reports from the public.
Please contact the City's storm water Program Manager, Rick Valte, for detailed information
at (310) 458-8234 or Neal Shapiro at (310)-458.8223, neat shapiro@smeov,net.
22. How is the City enforcing wasteful water use from washing cars or restaurants dumping dirty
water into the street?
City staff enforces two municipal code sections regarding wasteful water use and dumping
dirty water. SMMC section 7.16 addresses wasteful water use and SMMC section 7.10
addresses urban runoff. The City's enforcement efforts for these code sections also involve
education about using water efficiently and preventing urban runoff pollution.
Staff from the Office of Sustainability and the Environment, Code Compliance, Engineering
and Water Resource Protection are in the field daily in search of violations or responding to
violation reports from the public. The public should report violations via the government
Outreach system, email to env*ironment@smgov.net or call (310) 458-4952.
When a violation is documented, either an educational warning letter with solutions is
mailed, a notice to correct is issued on the spot, or a citation is sent to the responsible party
to correct the violation. In urgent cases, City staff will call the responsible party to correct a
problem. City staff also performs annual onsite inspections of all restaurants to review the
City's laws on water efficiency and urban runoff, answer any questions and make sure each
business is in compliance.
For situations in which water is used inefficiently, the City has a number of financial incentive
programs to encourage property owners to replace wasteful water practices with more
efficient practices, whether for the landscape, e.g. water efficient plants, low volume
irrigation systems, rainwater harvesting, or indoors, e.g. front -loading washing machines,
high efficiency toilets. The Office of Sustainability and the Environment has many rebates
programs listed on its website,t¢o;flwww sustainablesm,orgf rebates
The City includes in its Municipal Code a "No Water Waste" ordinance (Code Section
7.12.300). Enforcement begins with education. When the City becomes aware of wasteful
water use practices, the responsible party is mailed a notice to cease the wasteful practice,
including information about water conservation practices appropriate to the residence or
business, as well as opportunities for assistanceavailable from the City. Should wasteful
practices continue, subsequent measures can include administrative fines and
discontinuation of water service.
23. How much does it cost to install an electric vehicle (EV) charging station? Who pays for the
installation?
The cost of installing an EV charging station varies based on site conditions. Charging
equipment is currently about $2,000 and a simple new installation is another $2,000. The
existing public chargers in the City for the most part were installed as upgrades of existing
charging stations to the new standardized J1772 Electric Vehicle Supply Equipment (EVSE).
Upgrading an existing charger is less expensive than a new installation because electric
circuitry is already in place. The City has received grant funding that covered the installation
of the existing public chargers. Future public chargers will also be paid for with grant funds.
24. What are the costs associated with using an electric vehicle (EV) charging station?
Currently there is no charge to use most public EV charging stations in the Santa Monica and
costs to the City have been insignificant. However, staff is investigating options for
recovering the cost of EV charger operations (which include cost for purchase, installation
and maintenance of the charger as well as the electricity used) as costs are expected to
increase as usage increases. Installed public chargers have the capability to be fitted with
credit card readers and other payment options, and new charger installations may have cost
recovery systems built in.
25. How will the City or other agencies dispose of future expended batteries from electric vehicles
(EV)?
EV batteries are recyclable and the US Department of Energy has funded expansion of
battery recycling facilities throughout the country. EV batteries still have 70% to 80% of their
capacity when no longer viable for an EV, so there is a secondary market as energy storage
for electric utilities and renewable power generation. Due to this secondary value, all EV
batteries will likely be reused and then ultimately recycled through the private marketplace.
Planning and Community Development
26. How do local hiring programs work?
Local hiring programs involve Santa Monica businesses taking extra steps to give residents an
opportunity to work at the businesses. These steps can include advertising job availability in
locations that target Santa Monica residents, participating in or holding local job fairs, working
with local non-profit organizations that offer job training and placement services, and giving
priority to residents during the interviewing process.
For more information visit the Hire Local - Santa Monica Job Bank at
fatt e www santamonacagobhank,com�
27. It is hard to look the current development activity and not conclude that residents come
second to the interest of tourists and developers. In simple terms, what does this
development do for residents besides increase traffic and other aggravations in our daily
lives?
With adoption of the LUCE, the City Council established a new policy that most projects
(those over a low base height) must provide community benefits — amenities and resources
that address fundamental neighborhood needs and priorities. Previously no community
benefits were required of most projects. Projects are also required, depending on the type of
land use, to provide for (through fees or construction) affordable housing production,
childcare, public art and parks. Council will be considering new fees for transportation, and
increases to affordable housing and parks fees in the upcoming months.
The Council has also adopted policies to address resident concerns about neighborhood
disruption and congestion. Projects approved today are held to higher standards of vehicle
trip reduction and must incorporate programs and features to reduce new vehicle trips.
Additionally, investments in system improvements such as signal synchronization, bike
facilities, transit and walking are made possible.
The City depends upon a healthy local economy to continually deliver programs and services
that contribute to the overall well-being of Santa Monica's residents and visitors such as
social services, parks, cultural events, and recreational programs. The City also delivers
supportive services for those in need, including children, families, seniors, people with
disabilities, and low-income or homeless individuals. Being proactive about responding to the
needs and concerns of residents is one of the things that sets Santa Monica apart in
California.
Some amount of change is necessary within cities to respond to changing resident needs,
living conditions, and demographics. The City works within the bounds of private property
rights and the Municipal Code to manage change so that it meets current and future needs
which include a growing senior population, smaller average household sizes and demand for
affordable housing. Policies have been adopted for monitoring and managing change on a
regular basis to ensure that it is meeting the needs of the community.
28. How does the LUCE influence the type of development in the city? Is the LUCE a regulatory
document that City staff must follow or does it simply inform how development should occur?
The LUCE is the City's policy document that serves as the framework for land use decisions in
the community. It identifies goals, policies and implementation efforts to achieve the
community's expressed vision for neighborhood conservation, mixed-use housing on the
transit corridors, integration of the future Expo Light Rail station and congestion
management.
New development must be consistent with the goals and policies established in the LUCE.
staff uses these provisions to evaluate development applications and work with applicants to
ensure compliance with the LUCE.
The LUCE is also the foundation for the City's Zoning Ordinance, and the Zoning Ordinance
update project will provide specific standards to further implement the LUCE's policy vision.
Other implementation efforts such as the Bike Action Plan, Bergamot Area Plan and
Downtown Specific Plan advance the policy framework of the LUCE with additional
standards, guidelines and priorities.
Technology
29. Can the City provide the same internet access service city-wide that private companies enjoy?
The City does have an extensive fiber network and under a program titled CityNet, the City
leases fiber connections to businesses in commercial corridors where this municipal fiber is
located. As part of the CityNet program, the City partners with private internet vendors to
provide the connection between the City's fiber network and that of the business to deliver
internet access.
The City is always seeking opportunities to provide more and better internet access to the
community. Currently, providing internet service city-wide directly to residential and
business customers would be cost prohibitive due to the expense of underground fiber
construction and other start-up costs.
W
30. What are health risks associated with Wi-Fi hotspots and wireless parking meters?
The City's hotspot and parking meter equipment complies with all necessary federal
requirements related to the use of Wi-Fi and cellular technology. The Federal
Communications Commission (FCC) sets regulations related to Wi-Fi and other wireless
communications and has a webpage that discusses these issues:
htto°ddwww fcc e�vi
es -and -health -concerns
Currently,
Currently, the FCC finds no substantiated connection between wireless communications and
cancer or other health issues. The FCC does advise those with pacemakers that they may
want to avoid placing any wireless device (mobile phone, pager, Wi-Fi router) within 8 inches
of a pacemaker. The City's W1-Fi devices are installed in a manner that they should not come
within 8 inches of anyone in the public.
Transportation and Traffic
31. How will the City mitigate traffic when the California Incline is closed?
Staff is working closely with the design team developing the demolition and construction
plans for the California Incline. The City is committed to developing a comprehensive traffic
management plan for the duration of the project.
This plan will detour traffic away from the California Incline to alternate routes with the most
available capacity. The primary detour route will be using the Moomat Ahiko ramp between
Pacific Coast Highway and Ocean Avenue. Secondary detour routes will include the Lincoln
Boulevard and 7`" Street ramps from and to 1-10, respectively. The traffic management plan
is currently in development and will be completed prior to the start of construction.
The traffic management plan will also identify necessary traffic control measures to deter
traffic from utilizing Santa Monica Canyon and 7" Street as a detour. The City will use
everything at its disposal to actively monitor and manage traffic during the California Incline
construction. This includes deploying additional changeable message signs, closed-circuit
television cameras, and signage. The traffic management plan will also address -
contingencies and other potential situations to ensure that emergency access is maintained
throughout the construction period.
32. With the increase of development on major transit corridors, how is the City mitigating cut -
through traffic in residential neighborhoods?
Projects such as transit signal priority and traffic signal synchronization along major corridors
ensure that the higher capacity non-residential streets continue to carry the majority of
traffic, rather than residential streets. The site design of each new building is carefully
evaluated to balance the need for autos to travel smoothly on transit corridors or boulevards
and the desire to minimize intrusion into residential neighbors. The City has also
implemented projects to encourage autos to travel at neighborhood appropriate speeds,
reinforcing the role of boulevards as places for through trips; the recently completed
Borderline Street Improvement project is one example. A new conceptual planning effort,
Michigan Avenue Neighborhood Greenway, will be initiated with community involvement in
2013.
33. Can we make downtown car -free and park in the surrounding area? Maybe have a tram?
Downtown Santa Monica is exceptionally walkable, and the City continues to invest in
improvements to support walkability. This past year a number of bike -oriented
improvements have also been implemented, and several more are being planned. While
investing in pedestrian orientation and bicycle accessibility are priorities, there continues to
be a need for automobile access to Downtown and specifically access to the City's multiple
public parking structures which must be accessed from downtown streets. Operation of a
tram is costly and funding availability is an issue. The Downtown Specific Plan will provide
the overarching vision for circulation in downtown and the community is invited to be
involved as the plan is reviewed and finalized.
34. When will Big Blue Bus provide real-time bus arrival information?
Big Blue Bus real-time information is already available via the Route Wizard feature on its
websitel To view the next buses arriving at any particular stop, select the Route Wizard
feature and click on the "Stop Lookup" option to access real-time bus information. Detailed
instructions on how to access real-time information are available here or available at
www.B1ABlueBus.com on the homepage. Real-time bus information will also be available 24 -
hours a day via the customer service phone line and via a mobile device application in the
near future.
Santa Monica Airport
35. When does the 1984 Santa Monica Airport agreement expire? What will happen to the Santa
Monica Airport when the 1984 agreement expires?
The 1984 Santa Monica Airport Agreement between the City of Santa Monica and the Federal
Aviation Administration (FAA) expires June 30, 2015. The City has embarked on a rigorous
three-phase public process regarding the 227 -acre Santa Monica Airport Campus, which
includes 187 acres of "Aviation Land" that must be used for aeronautical activities and 40
acres of "Non -aviation Land" that is open to other uses. All land and building leases
throughout the Airport Campus expire in 2015. The 2015 timeframe provides a unique
opportunity for the City and the community to discuss the range of possibilities for the future
of the Airport Campus. Staff will return to the City Council in spring 2013 with results from
the third and final phase of the public process to seek direction and next steps.
36. What is being done now to mitigate the noise and environmental impacts at Santa Monica
Airport before the 1984 agreement expires?
The City of Santa Monica aggressively enforces one of the most stringent noise ordinances in
the nation. In addition to responding to the community's noise concerns and enforcing the
City's Aircraft Noise Abatement Code, which includes a maximum allowable noise level,
curfew hours and certain operational limitations, Airport staff is involved in a variety of
supplementary activities intended to reduce the overall impact of aircraft operations on the
residential areas surrounding the Airport.
In addition, numerous procedures and limitations have been incorporated into the Airport's
Fly Neighborly Program. They are designed to reduce operational impacts and include: a
voluntary night arrival curfew, recommended visual flight rules procedures, Auxiliary Power
Unit limitations, requested minimum reverse thrust use, IFR engine start procedures, IFR hold
11
area procedures, and helicopter arrival procedures. There are more efforts being undertaken
through the Visioning process. More information can be found at www.smovisioning.org.
37. What is the nature of the relationship between the City and the Federal Aviation
Administration in the operation of Santa Monica Airport?
The City maintains a close working relationship with the Federal Aviation Administration
(FAA) regarding the operation of the Santa Monica Airport. The City is responsible for the
maintenance and administration of the overall facility. The aviation aspects of aircraft
operations and use of the nation's airspace is regulated by the FAA. The City is jurisdictionally
preempted by federal law from establishing or enforcing new local laws that would affect
aircraft operations or the use of airspace around the Santa Monica Airport.
Parking
38. Why did the City recently install the new parking meters?
On -street parking spaces are some of the most convenient and heavily used spaces.
Their use is subject to time limits to encourage turnover and to increase the likelihood
of finding convenient on -street parking near where you want to go. Under the old
meters, enforcement of established time limits was labor intensive and not effective
in preventing "feeding" the meters and parking beyond the posted time limits, thus
reducing availability of parking spaces. This made it difficult for those seeking short-
term parking, typically business customers or visitors, to find available parking near
their desired place of business. The new meters allow us to better allocate a limited
and valuable resource to the community.
39. Why don't the new meters state how many minutes you get for a quarter?
The meters display the rate per hour, such as "§1.00 per hour." Nickels, dimes and quarters
would pay for a proportional amount of time.
City Administration
40. What steps has the City taken in the last year to address the municipal pension liability?
Over the past few years the City has taken several actions to curb the City's pension liability.
Miscellaneous employees contribute 6.7% of the employee contribution rate towards the
cost of their retirement benefits. Public Safety employees currently contribute 2%. The
Public Safety contribution will increase to 3% beginning July 1, 2013. The City also established
a second tier retirement program for employees hired after July 1, 2012. These employees
will receive a lower level of retirement benefits. Further, the City reduced its retirement rates
by paying down $20 million of its unfunded liability from savings, as well as pre -paying a
large portion of its annual contribution for a number of years. This was all completed before
the State took action on pension reform.
Residents and the City
41. The GO system is a great tool to report a problem. if I don't have a smart phone, what ways
can I communicate a street light is out or a similar problem exists to the City?
The government outreach system (GO) system is available on the internet at
hdPjI_ ww>smgov.netdsm eo asox. You can access GO on your mobile device or desktop
EFA
computer. You can also call the City at 310-458-8411 to inform staff of a street light that is
out or of any other problems or concerns.
42. Who is in charge of the Neighborhood Associations? How are they managed?
Neighborhood associations are independent organizations that are typically governed by
representatives elected by the residents of a neighborhood. Neighborhood organizations can
be informal grassroots groups or formally organized entities. Most of the neighborhood
associations in Santa Monica are volunteer organizations that have incorporated as nonprofit
public benefit corporations and are run by a Board of Directors elected by the members of
the neighborhood organization. Nonprofit organizations are subject to State and Federal laws
that govern how they operate.
The City provides support to qualifying neighborhood groups through the Neighborhood
Organization Matching Grant Program which provides up to $4,000 annually to assist in
communications activities and membership building. Neighborhood groups must provide a
50% match to the grant funds with cash or in-kind services. Also, at the beginning of each
calendar year, the City provides materials, printing and mailing services and pays the postage
for each accredited neighborhood group to conduct a membership drive. The mailers are sent
to every residential address within the established neighborhood boundaries.
To qualify for the City's support, a neighborhood organization must:
® Represent a commonly recognized neighborhood within Santa Monica;
® Possess tax-exempt status as a nonprofit organization under Section 501(c)(3) or
Section 501(c)(4) of the Internal Revenue Service Code or Section 23701(d) or
23701(f) of the California State Franchise Tax Code;
® Have an active board of directors or officers, selected in accordance with
association bylaws, who meet regularly, with meetings open to the public;
® Hold at least one general membership meeting annually;
® Maintain a membership list of at least 50 active members (residing at separate
addresses) or 10 percent of eligible households within the neighborhood
boundaries as defined in the bylaws, whichever is less.
43. How can residents find out what is going on in the City?
The City works to creatively utilize its communications resources so that residents can easily
find out what is going on in the City. This includes:
a. The City's website, www,smxov.not . The home page regularly features city events
and programs and the caiend4re is a resource for events as well. The news section
is a listing of recent press releases from the City and many of them promote special
events and provide more detail.
b. Many City departments and programs welcome you "liking" them or following them
via social media. A list of social media feeds is on-line.
c. Seascape is the City's bi-monthly community newsletter that is delivered to every
postal address in Santa Monica. Full of events, news, programs and useful
information, Seascape is also on—line.
13
d. If you have cable television, CityTV provides live coverage of public meetings, news
and other programming about what is going on in Santa Monica. The channel can also
be viewed live on-line at cs"t V ora.
e. Several City departments provide regular e-newsletters to the community. One that
provides regular listings of things to do is the Palette a weekly e-newsletter that
promotes arts, theater and cultural events in Santa Monica.
f. If you are at a local library, the Ken Edwards Center or City Hall, many events are
promoted with flyers and postcards that are readily available at their public counters.
g. The local press regularly provides coverage of upcoming events and some have
calendar listings as well.
14
Reference Resolution Nos.
10725 (CCS) and 10726