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SR 10-27-2020 8B City Council Housing Authority Parking Authority Report City Council Meeting: October 27, 2020 Agenda Item: 8.B 1 of 16 To: Housing Authority, Parking Authority, Mayor and City Council From: Gigi Decavalles-Hughes, Director, Finance Department Subject: Fiscal Year 2019-20 Year-End Budget Changes; and Fiscal Year 2020 -21 Budget, Position and Compensation Changes Recommended Action Staff recommends that the City Council, Housing Authority and Parking Authority: 1.   Approve changes to the FY 2019-20 Revised Budget as detailed in Attachment A; 2.   Approve changes to the FY 2020-21 Adopted Budget, including the appropriation of CARES CRF funds received, as detailed in Attachment B.   Staff also recommends that the City Council: 1.    Review the City’s year-end financial status; and 2.    Adopt a Resolution of the City of Santa Monica establishing new classifications and adopting salary rates for various listed positions (Attachment C); and 3. Approve the position and classification changes (Attachment D). Summary The year-end budget report is an initial milestone in examining how the City is faring financially during the worst economic crisis of our generation. In this review, we compare Fiscal Year (FY) 2019-20 actual revenues and expenditures to budget targets and updated projections that took into consideration the anticipated effects of the COVID-19 pandemic. As noted in previous reports to Council, staff revised fiscal projections in May 2020 to reflect the impacts of the COVID-19 pandemic on the City’s revenues. Beginning in mid-March, with the initial State and County Stay at Home Orders, the public health emergency has changed how, and whether, we can operate programs and facilities. These orders resulted in closures and contractions in services, the majority of which persist today as the country is experiencing yet another surge in coronavirus infections. 2 of 16 Santa Monica’s economy has been and will continue to be significantly damaged by the COVID-19 pandemic. Cities across the country are suffering revenue impacts from COVID-19, and cities, including those in California, with a high dependence on sales and hotel occupancy taxes are suffering the most. Tourism and hospitality are key components of the Santa Monica economy. Transient occupancy (hotel) taxes have historically accounted for a higher proportion of General Fund revenues (17%) than in most cities, and sales taxes generated by tourists and daytime visitors at restaurants and retail outlets also contribute greatly to the City’s revenues. In fact, these two sources account for nearly one-third of General Fund revenues. The shutdown of many non-essential businesses, and continuing limitations on the operations of most other businesses, also affect other key City revenue sources such as parking, utility users taxes, and business license taxes. Considering these impacts, staff projected revenue losses that would result in General Fund deficits of $48 million in FY 2019-20, $102 million in FY 2020-21, and $74 million in FY 2021-22. To continue to provide essential services safely and within the constraints of our diminished revenues, the City’s Adopted Budget for FY 2020-21 reflected significant restructuring in services and operations, and ultimately significant staffing reductions. Resources were focused primarily on emergency response, providing clean and safe foundational services, and economic recovery, with an emphasis on the City’s values, including working towards greater racial equity. The FY 2020-21 citywide budget is $192.3 million less than the FY 2019-20 Revised Budget and has 298.8 fewer full time equivalent permanent positions and 122.3 fewer full-time equivalent as-needed positions. Within the General Fund, the difference is $111.8 million, with 234.1 fewer permanent positions and 103.3 fewer as-needed positions. Staffing reductions reflect limitations in the programming that could be offered, anticipated decreases in workload during the economic slowdown and safer at home orders, and budget constraints that required very difficult decisions to be made in order to preserve essential services. A more detailed description of service change s is included in the FY 2020-21 Adopted Budget document. 3 of 16 It is not anticipated that our national or local economy will recover quickly. Even the approval of a vaccine and progress on successful therapeutic treatments to fight coronavirus infections will not erase the permanent changes impacting the traditional economic structure that we have relied upon to achieve revenue targets. Staff project that the City’s revenues will recover to pre-COVID-19 levels in FY 2024-25, at which point it would be prudent to rebuild the City’s reserve balances and focus more attention on deferred capital projects before considering new or expanded programs and services that are not addressing the key priorities on which the current budget is based. Based on the City’s revised budget performance, the City completed the fiscal year in line with its updated projections. While we had anticipated a deficit of $48 million, we anticipated that a retraction of programs and services during the first months of the Safer at Home Orders would result in at least $6 million in expenditure savings, thereby relying on one-time funds set aside to close the remaining $42 million gap. Year-end numbers show slightly better revenue performance, resulting in an approximate $30 million gap that must be closed using one-time funds. While this still translates to a significant deficit, one-time funds have been applied to balance the budget and to put the City on a stable footing to maintain current operations. While we are able to balance the budget through reserves and other one-time funds, an extraordinary amount of uncertainty surrounding both the duration of the pandemic and its ramifications on economic recovery remains. Economic instability exists for local governments throughout the country, uncertainty made worse by the absence of substantial federal stimulus funds. This high level of uncertainty, both about the future of the COVID-19 pandemic and the economy means we must continue to exercise extreme caution in the management of our finances in the foreseeable future. This year-end review relies exclusively on budget performance, which is just one measure of the City’s overall financial performance. Audited financial performance that considers the City’s comprehensive financial standing, including a full accounting of assets and long and short-term liabilities, will be available after the end of the calendar year with the publication of the Comprehensive Annual Financial Report (CAFR). 4 of 16 In this report, staff is recommending adjustments to the FY 2019-20 and FY 2020-21 budgets. These adjustments reflect the transfer of water settlement funds to the General Fund, as previously authorized by Council, to help close budget deficits in FY 2019-20 through FY 2021-22; reappropriation of FY 2019-20 budgeted funds to FY 2020-21 for projects that were delayed; and the appropriation of funds to pay for recent lawsuit settlements, as well as increased unemployment costs. The appropriations in FY 2020-21 will result in the City accessing the remaining amount of reserves set aside to cover the FY 2019-20 deficit that was not needed due to the City’s better-than- anticipated revenue performance. While local governments have yet to receive meaningful federal financial assistance, the City did receive a nominal $1.14 million allocation of federal Coronavirus Aid, Relief and Economic Security (CARES) Act funding from the State of California. These funds cover a very small portion of the City’s unfunded needs related to the public health emergency and the economic crisis that has ensued; however, they provide some measure of relief and allow us to address, on a one-time basis, critical service needs in the areas of emergency response, clean and safe spaces and services, and economic recovery. Finally, in this report, staff is recommending that the mobility, parking, and Big Blue Bus related functions in the City be merged into one department under the leadership of the Director of Transit Services. By combining mobility planning work, BBB transit operations, taxi regulations, and parking management, we seek to advance planning and implementation of Complete / Green Streets to include bus, bike, pedestrian, micromobility, and first-last mile options in our public rights of way. We believe that this merger will elevate the work of mobility and BBB in the community and the Westside, allow our professionals in these areas to synthesize their knowledge, increase connections to our customers, and improve our leverage in accessing external funding sources. 5 of 16 Background On May 5, 2020 following Council’s April 14th direction to present a proposed plan for restructuring City operations and balancing the City budget to address impacts from the COVID-19 public health emergency, staff presented a revised revenue fore cast for FY’s 2019-20, 2020-21, and 2021-22. The forecast showed annual General Fund deficits of $48 million, $102 million, and $74 million respectively. To eliminate the deficits, maintain essential operations according to new public health protocols, a nd preserve the City’s financial resilience to the greatest extent possible, staff proposed a combination of expenditure savings in FY 2019-20; significant budget restructuring beginning in FY 2020-21; and the use of $117 million in one-time funds, including capital project funds that were deferred, reduced or cancelled, and economic uncertainty, contingency and other reserve funds, that would allow City essential operations to withstand the severe revenue dip during what we project to be the worst part of the economic crisis through June 30, 2022. The ultimate General Fund budget reductions for FY 2020-21, as adopted on June 23, 2020 and subsequently revised on July 14 and 28 to reflect additional reductions made possible through labor negotiations, resulted in a 23.9% reduction from the previously approved FY 2020-21 Budget Plan (the second year of the FY 2019-21 Biennial Budget). The use of a combination of savings and one -time funds, including funds previously budgeted towards capital programs and economic uncertainty funds, enable the City to balance the FY 2019-20 budget. Discussion For several years, we have anticipated and prepared for flattening revenue growth in the General Fund. The final quarter of FY 2019-20 marked the point at which General Fund spending was projected to significantly exceed income, unless immediate actions were taken. The economic crisis caused by COVID-19 triggered revenues to plummet altogether, and it is projected that a full recovery from the downturn will take at leas t five years. 6 of 16 FY 2019-20 Budget Year-End Status General Fund The May 2020 forecast showed a deficit of $48 million in FY 2019-20, primarily due to losses in revenues. This deficit was to be covered by routine operating expenditure savings of approximately $6 million and the use of one-time funds. The COVID-19 revenue projections assumed full shutdown of all non -essential City operations and local businesses through June 30, 2020. The projections also included the assumption that various penalties and regulations associated with fees and citations would be suspended and therefore, the revenue associated with these would not be realized. The City’s finances turned out slightly better than projected. We were successful in achieving the expenditure savings target and revenues fared $11.7 million, or 3.2% better than anticipated as compared to May 2020 estimated actual projections. This was due to several factors that helped mitigate the economic impact of the shutdown. Such factors include: • the phased reopening of the economy earlier than expected • fewer than projected individuals and businesses taking advantage of tax deferrals and late payment programs • the City’s focused efforts on economic recovery initiatives • certain hotels remained open and maintained limited occupancy through June • continuation of activity through June for meter parking and private parking lots While the City and the economy did start to reopen before June 30, the effects of COVID-19 remain with us and the partial shutdown is extend ing into FY 2020-21, with some signs it could last through the entire fiscal year, exacerbating the impact on City revenues. The looming economic uncertainty combined with the practical complexities of doing business today increases the likelihood people will be unable to make payments or choose to defer payments for a longer period of time. The General Fund achieved its $6 million savings target for operating expenditures. The savings were achieved through the suspension or elimination of non-essential 7 of 16 spending as of March 2020, and the discontinuation of as-needed staffing assignments in April 2020. The City achieved this savings target despite unbudgeted COVID-19 and other emergency-related expenditures, including the activation of the Emergency Operations Center to lead the response to COVID-19 and the civil unrest on May 31. This resulted in approximately $1 million in unbudgeted costs, a portion of which has been approved for reimbursement by the Federal Emergency Management Administration (FEMA). In addition, Fire Department staff logged higher than budgeted overtime to assist with wildfires as part of multiple mutual aid strike team deployments and mobile stroke unit special deployments, for which the City was fully reimbursed, and to provide COVID-19 and Emergency Operations Center support. To balance the budget, as predicted, it is necessary to utilize savings and appropriate one-time funds to stand in for lost revenues. As reflected in the tables below, due to the better than anticipated performance in revenues, $11.7 million less in reserves will be required to balance the FY 2019-20 budget. However, assuming that our projections for FY 2020-21 revenues are accurate, these reserve funds will instead be used in FY 2020-21 to support new, previously unanticipated costs related to the pandemic and the related extended economic fallout. FY 2019-20 Year-End (in millions) Revenues $ 374.9 Expenditures Operating $ (390.6) 1 Capital $ (14.3) 2 Total $ (404.9) Revenues over Expenditures (Deficit) $ (30.0) 3 1 Adjusted to exclude expenditures associated with use of reserves. 2 Only FY 2019-20 project expenditures budgeted using FY 2019-20 Funds. 3 Deficit was anticipated to be covered by operating expenditure savings and one-time sources. Variance from May 2020 Deficit Projection May 2020 Projected Deficit $ (48.0) Year-End Deficit $ (30.0) Variance Year-End Actuals to May 20201 $ 18.0 8 of 16 1 Deficit to be covered by greater than anticipated revenues and operating expenditure savings. CARES Act funding On March 27, 2020, the $2.2 trillion CARES Act was signed into law by the President of the United States. The CARES Act appropriated $150 billion to the Coronavirus Relief Fund (CRF), to be used to make payments for specified uses to States and larger local governments with populations over 500,000. CRF funding was disbursed by the federal government to states prior to June 30, 2020. The State of California developed an allocation schedule for distributing the funding to local governments with populations under 500,000 and adopted a budget amendment effective July 1, 2020 for the State’s FY 2020-21 budget. To receive the funding, local governments must incur eligible expenditures from March 1, 2020 to December 31, 2020, and were required to file a certification by July 10, 2020 that they would use the funds consistent with federal requirements, adhere to health orders and directives, return unspent funds , and repay any disallowed costs, among other compliance certifications. The City has received its full $1.14 million allocation of CARES CRF funds into the General Fund in FY 2020 -21. These funds are reimbursing the City for personnel and services expenditures diverted to a substantially different use to respond to the COVID-19 pandemic, testing and contact tracing, increasing the City’s telework capabilities, and public health expenditures through June 30, 2020. While the City has a much higher funding need, the programming of these one-time funds will allow the City to address some critical gaps in services that have become evident as a result of budget restructuring and the effects of the pandemic. The programming of these funds is detailed later i n the report. Non-General Funds Non-General funds ended the year with revenues approximately $53 million more than estimated actuals, and operating expenditures approximately $11 million below budget, for an approximate $64 million positive impact compared to budget. It should be noted that $32 million of the $53 million in increased revenues represent contributions to the General Liability Self-Insurance Fund that was used to pay for the settlement of claims. 9 of 16 Any net increases in funds will build reserves, fund ongoing operations, and support future capital projects. Significant revenue variances in other funds in FY 2019-20 include: • Airport Fund – revenues were $5 million greater than estimated actual because rents for office and hangar rentals were received by July rather than deferred, as anticipated. • Beach Fund – revenues were $0.6 million greater than estimated actual, primarily due to parking and concessions revenue, which was assumed would be lower due to closures during the Pandemic. • Big Blue Bus Fund – revenues were $1.9 million greater than the estimated actual, primarily due to greater than projected passenger revenue received from partnership with Santa Monica College, Transit Access Pass (TAP) revenue and lease rental revenue, which were assumed would be lower due to closures related to the Pandemic. • Community Broadband Fund – revenues were $0.2 million greater than the estimated actual, primarily due to new service agreements with wireless providers to deliver wireless backhaul for 4G and 5G network installations. • Housing Authority Fund – revenues were $0.7 million greater than the estimated actual, as funding for the Section 8 Housing Assistance program increased due to an increase in lease up rates. • Miscellaneous Grants Fund – revenues were $0.8 million greater than the estimated actual, reflecting the timing of the receipt of funds for certain grants. • Resource Recovery & Recycling Fund – revenues were $3.8 million greater than estimated actuals, as usage and payments did not slow to the e xtent anticipated. 10 of 16 • Self-Insurance Funds – revenues were $32.0 million greater than the estimated actual, primarily due to unbudgeted contributions from the City’s excess liability insurance and other funds to pay for the settlement of a number of claims. • Special Revenue Source Fund – revenues were $0.6 million greater than the estimated actual, primarily due to timing of receipt of certain developer fees. • Vehicle Management Fund – revenues were $0.7 million greater than estimated actual, primarily due to under budgeting for vehicle maintenance payments from other funds. • Wastewater Fund – revenues were $1.2 million greater than estimated actuals, primarily due to conservative estimates, which assumed reduced sewer service charges and deferred payments, however usage and payments did not slow as steeply as expected. • Water Fund – revenues were $5.1 million greater than estimated actuals, primarily due to conservative estimates, which assumed reduced commercial water sales and deferred payments, however usage and payments did not slow as steeply as expected. As noted earlier, better-than-anticipated revenue performance could be a result of the early reopening in June, which then resulted in a prolonged shutdown in the first quarter of FY 2020-21, which remains in place today. Such a prolonged shutdown, and the lack of additional federal stimulus funds for businesses and unemployed individuals could exacerbate the revenue losses anticipated this year. Other funds ended the fiscal year with operating budget expenditures approximately $11 million below budget. Most funds, with the exception of Community Broadband Fund and the Self Insurance Fund, experienced savings as a result of suspending all non-essential expenditures and closures related to the pandemic. Th e Community Broadband operating budget overage was due to unanticipated replacement of end of 11 of 16 life equipment and timing of the completion of construction work for network installations -- the expenses were budgeted, and reimbursement revenues were received in FY 2018-19, but work was completed in early FY 2019-20. Self-Insurance Fund overage was due to greater than budgeted claim payments. FY 2019-20 Operating and Capital Budget Changes Recommended changes detailed in Attachment A include: General Fund - Operating Budget An approximate $7.7 million net increase, including a $29.6 million adjustment to transfer funds previously set aside in General Fund reserves to pay for the excess settlement cost of a claim in excess of the amount covered by the City’s Liability Self Insurance program and $2.1 million in adjustments anticipated in the May 2020 forecast projections or covered by funds previously set aside in reserves for this purpose. The changes are partially offset by a $24.0 million credit showing the transfer of Gillette/Boeing settlement funds from the Water Fund to mitigate revenue losses. General Fund Capital Budget An approximate $0.3 million net increase related to the Parking Revenue Equipment and Network Infrastructure Replacement project budg ets. This increase will be funded from reserve funds set-aside from prior year capital project savings. The increase is for as-needed Parking Revenue Equipment repairs and required maintenance addressed with the Network Infrastructure Replacement project. Other Funds - Operating Budget An approximate $24.0 million net increase in expenditures related to the transfer of Gillette/Boeing settlement funds from the Water Fund to the General Fund, offset by minor reductions for computer equipment replacement p rogram contributions to the internal services funds, and other cleanup items. 12 of 16 FY 2020-21 Operating Budget Changes Recommended changes detailed in Attachment B include: General Fund - Operating Budget An approximate $12.5 million increase, primarily including a $9.8 million transfer of reserve funds from the General Fund to the Liability Fund for settlement of 2 claims brought against the City, as approved by Council on October 13, 2020; $0.6 million to re-appropriate unspent funds for programs or projects that were delayed; and a $1.0 million increase from reserve funds for unemployment claims. Staff is also recommending the transfer of the existing contract and budget for West Coast Cares from the Police Department to the Fire Department. West Coast Cares is an organization partnering with the City to work with individuals experiencing homelessness on the Beach and in the parks. This realignment of partners is one step staff is taking in employing alternative approaches to emergency response that do not involve law enforcement personnel, and also takes advantage of the proximity of Fire personnel stationed at Fire Station 7 on the Beach. Additionally, staff is appropriating CARES Act funding of $1,140,344 to address critical needs in the areas of economic recovery, clean and safe services and spaces, equity and emergency response. The appropriation will fund the following initiatives on a one-time basis: • Funds to support enhancements to mental health services and access to care for vulnerable populations and people experiencing homelessness, including potentially piloting an alternative dispatch emergency response model ($400,000). • Additional funding for the Economic Recovery Fund for additional assistance to the local business community and to expand outdoor dining 13 of 16 spaces on Ocean Avenue, which requires the temporary construction of sidewalk expansions into the existing parking lane ($280,000). • Funds to assist with continued response to the pandemic, including personal protective equipment and other supplies and resources not reimbursed by FEMA which are needed for reopening and running operations in the time of COVID-19 ($159,344). • Reinstate, through the end of the fiscal year, contracted weekend trash service to allow existing Public Landscape Division and Resource, Recovery and Recycling staff to address higher than anticipated trash volumes throughout the City ($134,000). • Hire as-needed Community Service Leaders to expand the existing COVID-19 Health Ambassador Program to monitor open spaces and park settings as parks reopen ($77,000). • Hire as-needed Library Pages to assist with Library curbside service and programming ($50,000). • Expand outreach services provided by West Coast Care to individuals experiencing homelessness ($30,000). • Purchase a truck-mounted pressure washer to assist with cleaning pedestrian, playground and restroom areas ($10,000). Other Funds - Operating Budget Minor increases related to personnel changes, offset by minor decreases related computer equipment replacement program contributions to the internal services funds. Personnel Changes and Reorganizations This report includes staffing adjustments to reflect ongoing operational changes and results of classification and compensation studies. Attachment C is a Salary Resolution 14 of 16 detailing new classifications and salary rates, and Attachment D details the staffing adjustments. As the City recovers from COVID-19 and economic conditions improve, transportation and mobility will play a more important role moving people in and through Santa Monica and the Westside. Effective December 1, 2020, staff recommends the merger of the Big Blue Bus, Mobility, and Parking Operations teams to join efforts to plan and implement safe, complete/green streets, seamless public transportation, fir st-last mile connectivity, Micro-mobility, Mobility on Demand Everyday (MODE), TDM, and parking operations/administration to provide an integrated and comprehensive approach to the City’s transportation and mobility networks. This merger will provide greater opportunities for coordinated plans and infrastructure to support multi-modal transportation, including bus, bike, and pedestrian modes; a combined effort to seek and leverage additional funding for transit and mobility projects as well as to work with stakeholders and partners to prioritize projects and provide seamless connections with our regional partners and communities in working towards a non-auto-centric future; and a more comprehensive scope of customer service to the community. We believe that this change will elevate the work of mobility and the BBB in the community and on the Westside. Any additional changes related to classification titles will be presented to Council for approval as part of the FY 2020-21 Midyear Budget in January 2021. Additional General Fund position changes include the addition of 1.0 Full Time Equivalent (FTE) Community Services Program Coordinator, offset by the deletion of 1.0 FTE Community Garden Program Specialist in the Public Works Department; the addition of 1.0 FTE Fire Prevention Coordinator, offset by the deletion of 1.0 FTE Fire Safety Coordinator in the Fire Department; the deletion of 1.0 FTE Staff Assistant III and 1.0 FTE Fire Code Enforcement Officer I/II in the Fire Department to effectuate changes reflected in the City’s budget restructuring; and the transfer of the Mobility and Parking Operations Divisions from the Community Development Department to the Big Blue Bus Department. These changes result in a net decrease of 2.0 FTEs in the General Fund. 15 of 16 In the Big Blue Bus fund, staff recommends the addition of 1.0 FTE Transit Safety, Security and Training Technician, offset by the deletion of 1.0 FTE Staff Assistant III. This results in a net increase of approximately $5,000 in the Big Blue Bus Fund. Looking Ahead There continue to be factors that will indirectly and directly impact the City’s finances. Local and national economic forecasts indicate that the economy continues to struggle and recovery will be slow. Unemployment rates will remain high for the next few years, the leisure and hospitality sector will continue to struggle, the CARES Act unemployment benefits and Lost Wages Assistance program have expired and we cannot rely on the prospect of new federal stimulus funding coming to local go vernment in the near future. Finally, the rising cost of liabilities and claims against the City continues to be a threat to the General Fund and is exacerbated by the significant hardening of an insurance market that is struggling as a result of payouts related to natural disasters and the economic and public health crisis. This results in more pressure being put on City resources when addressing claims. Past Council Actions Meeting Date Description 06/25/19 (Attachment E) Adoption of FY 2019-20 Budget and Approval of FY 2020-21 Budget Plan and Adoption of FY 2019-20 CIP Budget 06/23/20 (Attachment F) Adoption of the FY 2020-21Budget and Adoption of the First Year and Approval of the Second Year of the FY 2020 -22 Biennial CIP Budget Financial Impacts and Budget Actions The budget changes recommended for FY 2019 -20 result in an approximate $32 million net increase over the FY 2019-20 Revised Budget. Detail for these changes is in Attachment A. Recommended FY 2020-21 expenditure changes result in an approximate $12.5 million increase over the FY 2020-21 Adopted Budget. Detail for FY 2020-21 changes is in Attachment B. 16 of 16 Prepared By: Gigi Decavalles-Hughes, Director Approved Forwarded to Council Attachments: A. Attachment A - Budget Adjustments FY 2019-20 B. Attachment B - Budget Adjustments FY 2020-21 C. Attachment C -- Salary Resolution D. Attachment D - Position and Classification Changes E. Attachment E - Adoption of 1st Year and Approval of 2nd Year of FY 2019 -21 Biennial Budget, Adoption of 2nd Year of FY 2018 -20 Biennial Capital Improvement Program Budget (Web Link) F. Attachment F - Adoption of FY 2020-21 Operating Budget and Adoption of 1st Year and Approval of 2nd Year of FY 2020-22 Biennial Capital Improvement Program Budget (Web Link) G. Written Comments ATTACHMENT A Fund/Department Description FY 2019-20 Increase / (Decrease) INFORMATION TECH REPLACEMENT & SERVICES FUND (71) INFORMATION SYSTEMS Reflects adjustments to computer equipment replacement program contributions. This is funded by corresponding reductions in departments' budgets.44.5$ 44.5$ SPECIAL REVENUE SOURCE FUND (10) LIBRARY Reflects correction for donations revenue. 100.0$ 100.0$ TOTAL NON-GENERAL FUND REVENUE ADJUSTMENTS 144.5$ GRAND TOTAL - ALL FUND REVENUE ADJUSTMENTS 144.5$ CITY MANAGER Reflects adjustments for bargaining unit agreements and correction for unbudgeted personnel expenses, which are covered by funds previously set aside in reserves for this purpose. Also includes reductions for computer equipment replacement program contributions.566.0$ TOTAL CITY MANAGER EXPENDITURE ADJUSTMENTS 566.0$ CITY ATTORNEY Reflects adjustments for bargaining unit agreements, Consumer Protection Unit, legal expenses, and correction for unbudgeted personnel expenses, all of which are covered by funds previously set aside in reserves for this purpose. Also includes reductions related to computer equipment replacement program contributions.617.3$ TOTAL CITY ATTORNEY EXPENDITURE ADJUSTMENTS 617.3$ COMMUNITY AND CULTURAL SERVICES Reflects reductions for computer equipment replacement program contributions.(3.3)$ TOTAL COMMUNITY AND CULTURAL SERVICES EXPENDITURE ADJUSTMENTS (3.3)$ FINANCE Reflects reductions for computer equipment replacement program contributions.(13.4)$ TOTAL FINANCE EXPENDITURE ADJUSTMENTS (13.4)$ FIRE Reflects adjustments for bargaining unit agreements and correction for unbudgeted personnel expenses, which are covered by funds previously set aside in reserves for this purpose. Also includes reductions for computer equipment replacement program contributions.183.0$ TOTAL FIRE EXPENDITURE ADJUSTMENTS 183.0$ NON-GENERAL FUNDS TOTAL INFORMATION TECH REPLACEMENT & SVCS FUND REVENUE ADJUSTMENTS TOTAL SPECIAL REVENUE SOURCE FUND REVENUE ADJUSTMENTS REVISIONS TO FY 2019-20 REVENUE AND EXPENDITURE BUDGET APPROPRIATIONS EXPENDITURE BUDGET ADJUSTMENTS ($ IN THOUSANDS) GENERAL FUND (01) REVENUE BUDGET ADJUSTMENTS ($ IN THOUSANDS) October 27, 2020 1 of 5 ATTACHMENT A Fund/Department Description FY 2019-20 Increase / (Decrease) REVISIONS TO FY 2019-20 REVENUE AND EXPENDITURE BUDGET APPROPRIATIONS HOUSING AND ECONOMIC DEVELOPMENT Reflects reductions for computer equipment replacement program contributions.(3.2)$ TOTAL HOUSING AND ECONOMIC DEVELOPMENT EXPENDITURE ADJUSTMENTS (3.2)$ HUMAN RESOURCES Reflects reductions for computer equipment replacement program contributions.(0.1)$ TOTAL HUMAN RESOURCES EXPENDITURE ADJUSTMENTS (0.1)$ INFORMATION SERVICES Reflects corrections for unbudgeted personnel expenses, which are covered by funds previously set aside in reserves for this purpose. Also includes reductions for computer equipment replacement program contributions.272.9$ TOTAL INFORMATION SERVICES EXPENDITURE ADJUSTMENTS 272.9$ LIBRARY Reflects correction for unbudgeted personnel expenses, which are covered by funds previously set aside in reserves for this purpose.173.9$ TOTAL LIBRARY EXPENDITURE ADJUSTMENTS 173.9$ PLANNING AND COMMUNITY DEVELOPMENT Reflects reductions for computer equipment replacement program contributions.(3.2)$ ADJUSTMENTS (3.2)$ POLICE Reflects adjustments for bargaining unit agreements, which are covered by funds previously set aside in reserves for this purpose. Also includes reductions for computer equipment replacement program contributions.295.5$ TOTAL POLICE EXPENDITURE ADJUSTMENTS 295.5$ PUBLIC WORKS Reflects reductions for computer equipment replacement program contributions.(4.6)$ TOTAL PUBLIC WORKS EXPENDITURE ADJUSTMENTS (4.6)$ NON-DEPARTMENTAL Reflects adjustment to transfer funds previously set aside in reserves to pay for settlement cost of a claim in excess of the amount covered by the City’s Liability Self Insurance program. Funds were previously set aside in reserves for this purpose.29,600.0$ Reflects transfer to cover departments' unbudgeted expenses related to Parking Cashout Program.(8.9)$ Reflects correction related to the transfer-in from the Grants Fund to the Housing Fund, which covers costs related to the administration of Federal HOME Investment Partnership Grant Program. The transfer-in was inadvertently recorded in the General Fund instead of the Housing Authority Fund.18.4$ Reflects transfer-in of Gillette/Boeing settlement funds from the Water Fund to the General Fund to mitigate revenue losses due to the pandemic.(24,000.0)$ TOTAL NON-DEPARTMENTAL EXPENDITURE ADJUSTMENTS 5,609.5$ October 27, 2020 2 of 5 ATTACHMENT A Fund/Department Description FY 2019-20 Increase / (Decrease) REVISIONS TO FY 2019-20 REVENUE AND EXPENDITURE BUDGET APPROPRIATIONS CAPITAL IMPROVEMENT PROGRAM (CIP) Information Services Reflects increase to computer equipment replacement program for department contributions related to new equipment purchased in FY 2019-20.38.7$ Reflects funds for increased costs related to Network Infrastructure Replacement project as a result of greater than anticipated network infrastructure repairs. Increase is covered by project savings from other General Fund projects.58.5$ Community Development Reflects funds for increased costs related to Parking Revenue Equipment project, as a result of greater than projected parking meter repairs. Increase is covered by project savings from other General Fund projects.226.1$ TOTAL CAPITAL IMPROVEMENT PROGRAM EXPENDITURE ADJUSTMENTS 323.3$ 8,013.5$ GENERAL FUND - EXPENDITURE OFFSETS Use of Reserves and Restricted Funds Release reserves specifically set aside for adjustments associated with bargaining unit agreements and unbudgeted leave cash-outs.(1,807.1) Release reserves of General Fund CIP project savings to cover expenses related to Parking Revenue Equipment and Network Infrastructure Replacement projects.(284.6) Release reserves for unbudgeted legal expenses incurred by the City Attorney's Office.(254.6) Release restricted reserve funds for unbudgeted expenses incurred by the Public Rights Unit in the City Attorney's Office.(48.8) Release reserves to pay for the settlement cost of a claim in excess of the amount covered by the City’s Liability Self Insurance program.(29,600.0)$ (31,995.1)$ (23,981.6)$ GENERAL FUND - RESERVE ASSIGNMENTS FROM FY 2019-20 FUNDS Reserve Assignments Creation of reserve assignment for funds received from the Water Fund to be used to mitigate revenue losses due to the pandemic, as authorized by City Council on May 5, 2020.24,000.0$ Creation of reserve assignments of City’s Other Post Employment Benefit (OPEB) Trust payment, which was temporarily suspended in FY 2019-20 to be used to cover revenue losses as necessary.2,254.0$ Creation of reserve assignments from FY 2019-20 unspent funds for reappropriation for programs or projects that were delayed.1,702.6$ 27,956.6$ 1 Reflects the transfer-in of $24m in Gillette/Boeing settlement funds from the Water (50) Fund, as reflected below, to mitigate revenue losses due to the pandemic. This is partially offset by the $18,405 correction to the Housing Authority (12) fund for the transfer-in related to the HOME program administration costs. TOTAL GENERAL FUND - EXPENDITURE OFFSETS NET GENERAL FUND EXPENDITURE ADJUSTMENTS 1 TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS TOTAL GENERAL FUND - RESERVES FROM FUND BALANCE October 27, 2020 3 of 5 ATTACHMENT A Fund/Department Description FY 2019-20 Increase / (Decrease) REVISIONS TO FY 2019-20 REVENUE AND EXPENDITURE BUDGET APPROPRIATIONS AIRPORT (57) FUND Public Works Reflects reductions for computer equipment replacement program contributions.(1.0)$ Capital Improvement Program Reflects increase to computer equipment replacement program for the Fund's contributions related to new equipment purchased in FY 2019-20.1.0$ -$ BEACH (11) FUND Community Services Reflects reductions for computer equipment replacement program contributions.(1.2)$ Capital Improvement Program Reflects increase to computer equipment replacement program for the Fund's contributions related to new equipment purchased in FY 2019-20.1.2$ -$ COMMUNITY BROADBAND (55) FUND Information Services Reflects reductions for computer equipment replacement program contributions.(1.4)$ Capital Improvement Program Reflects increase to computer equipment replacement program for the Fund's contributions related to new equipment purchased in FY 2019-20.1.4$ TOTAL COMMUNITY BROADBAND FUND EXPENDITURE ADJUSTMENTS -$ HOUSING AUTHORITY (12) FUND Non-Departmental Reflects correction related to the transfer-in from the Grants Fund to the Housing Fund, which covers costs related to the administration of Federal HOME Investment Partnership Grant Program. The transfer-in was inadvertently recorded in the General Fund instead of the Housing Authority Fund.(18.4)$ (18.4)$ RESOURCE RECOVERY AND RECYCLING (54) FUND Public Works Reflects reductions for computer equipment replacement program contributions.(1.0)$ Capital Improvement Program Reflects increase to computer equipment replacement program for the Fund's contributions related to new equipment purchased in FY 2019-20.1.0$ -$ SELF-INSURANCE, COMPREHENSIVE (72) FUND Non-Departmental Reflects adjustment to transfer funds previously set aside in General Fund reserves to pay for settlement cost of a claim in excess of the amount covered by the City’s Comprehensive Self Insurance program.(29,600.0)$ (29,600.0)$ TOTAL RRR FUND EXPENDITURE ADJUSTMENTS TOTAL BEACH FUND EXPENDITURE ADJUSTMENTS TOTAL HOUSING AUTHORITY FUND EXPENDITURE ADJUSTMENTS TOTAL AIRPORT FUND EXPENDITURE ADJUSTMENTS NON-GENERAL FUNDS TOTAL SELF-INSURANCE,COMPREHENSIVE FUND EXPENDITURE ADJUSTMENTS October 27, 2020 4 of 5 ATTACHMENT A Fund/Department Description FY 2019-20 Increase / (Decrease) REVISIONS TO FY 2019-20 REVENUE AND EXPENDITURE BUDGET APPROPRIATIONS WASTEWATER (51) FUND Public Works Reflects reductions for computer equipment replacement program contributions.(0.5)$ Capital Improvement Program Reflects increase to computer equipment replacement program for the Fund's contributions related to new equipment purchased in FY 2019-20.0.5$ -$ WATER (50) FUND Public Works Reflects reductions for computer equipment replacement program contributions.(0.7)$ Non-Departmental Reflects transfer of Gillette/Boeing settlement funds from the Water Fund to the General Fund to mitigate revenue losses due to the pandemic.24,000.0$ Capital Improvement Program Reflects increase to computer equipment replacement program for the Fund's contributions related to new equipment purchased in FY 2019-20.0.7$ 24,000.0$ (5,618.4)$ TOTAL NON-GENERAL FUND REVENUE ADJUSTMENTS 144.5$ GRAND TOTAL FY 2019-20 ALL FUNDS REVENUE ADJUSTMENTS 144.5$ TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS 8,013.5$ TOTAL NON-GENERAL FUND EXPENDITURE ADJUSTMENTS (5,618.4)$ GRAND TOTAL FY 2019-20 ALL FUNDS EXPENDITURE ADJUSTMENTS 2,395.1$ TOTAL GENERAL FUND - EXPENDITURE OFFSETS (31,995.1)$ (31,995.1)$ NET GENERAL FUND EXPENDITURE ADJUSTMENTS 1 (23,981.6)$ (5,618.4)$ (29,600.0)$ 27,956.6$ 27,956.6$ 1 Reflects the transfer-in of $24m in Gillette/Boeing settlement funds from the Water (50) Fund, as reflected below, to mitigate revenue losses due to the pandemic. This is partially offset by the $18,405 correction to the Housing Authority (12) fund for the transfer-in related to the HOME program administration costs. 2 Reflects the transfer-in of $29.6 million from the General Fund from use of reserves for settlement payment of two claims. The amount is partially offset by the transfer-out of $24 million to the general fund to be used to mitigate revenue losses due to the pandemic and $18,405 correction to the Housing Authority (12) fund for the transfer-in related to the HOME program administration costs. 3 This does not signify the reduction of the budget. This illustrates the infusion of reserves released to cover expenditures. TOTAL NON-GENERAL FUND EXPENDITURE ADJUSTMENTS GRAND TOTAL FY 2019-20 NET RESERVES FROM FUND BALANCE NET GENERAL FUND RESERVES FROM FUND BALANCE NET NON-GENERAL FUND EXPENDITURE ADJUSTMENTS 2 GRAND TOTAL FY 2019-20 NET ALL FUNDS EXPENDITURE ADJUSTMENTS 3 GRAND TOTAL FY 2019-20 ALL FUNDS - EXPENDITURE OFFSETS TOTAL WATER FUND EXPENDITURE ADJUSTMENTS TOTAL WASTEWATER FUND EXPENDITURE ADJUSTMENTS October 27, 2020 5 of 5 ATTACHMENT B Fund/Department Description FY 2020-21 Increase / (Decrease) BIG BLUE BUS Reflects adjustments related to the consolidation of mobility, parking and transportation functions into the Big Blue Bus department.32,228.0$ TOTAL BIG BLUE BUS REVENUE ADJUSTMENTS 32,228.0$ COMMUNITY DEVELOPMENT Reflects adjustments related to the consolidation of mobility, parking and transportation functions into the Big Blue Bus department.(32,228.0)$ TOTAL COMMUNITY DEVELOPMENT REVENUE ADJUSTMENTS (32,228.0)$ NON-DEPARTMENTAL Reflects the adjustment to recognize one-time funding received from the Federal CARES Act.1,140.0$ TOTAL NON-DEPARTMENTAL REVENUE ADJUSTMENTS 1,140.0$ 1,140.0$ INFORMATION TECH REPLACEMENT & SERVICES FUND (71) INFORMATION SYSTEMS Reflects adjustments to computer equipment replacement program contributions. This is funded by corresponding reductions in departments' budgets.44.5$ 44.5$ MISCELLANEOUS GRANTS FUND (20) BIG BLUE BUS Reflects adjustments related to the consolidation of mobility, parking and transportation functions into the Big Blue Bus department.2,658.6$ COMMUNITY DEVELOPMENT Reflects adjustments related to the consolidation of mobility, parking and transportation functions into the Big Blue Bus department.(2,658.6)$ -$ SPECIAL REVENUE SOURCE FUND (10) BIG BLUE BUS Reflects adjustments related to the consolidation of mobility, parking and transportation functions into the Big Blue Bus department.1,445.1$ COMMUNITY DEVELOPMENT Reflects adjustments related to the consolidation of mobility, parking and transportation functions into the Big Blue Bus department.(1,445.1)$ -$ TOTAL NON-GENERAL FUND REVENUE ADJUSTMENTS 44.5$ GRAND TOTAL - ALL FUND REVENUE ADJUSTMENTS 1,184.5$ TOTAL SPECIAL REVENUE SOURCE FUND REVENUE ADJUSTMENTS TOTAL GENERAL FUND REVENUE ADJUSTMENTS REVISIONS TO FY 2020-21 REVENUE AND EXPENDITURE BUDGET APPROPRIATIONS REVENUE BUDGET ADJUSTMENTS ($ IN THOUSANDS) GENERAL FUND (01) TOTAL INFORMATION TECH REPLACEMENT & SVCS FUND REVENUE ADJUSTMENTS NON-GENERAL FUNDS TOTAL MISCELLANEOUS GRANTS FUND REVENUE ADJUSTMENTS October 27, 2020 1 of 5 ATTACHMENT B Fund/Department Description FY 2020-21 Increase / (Decrease) REVISIONS TO FY 2020-21 REVENUE AND EXPENDITURE BUDGET APPROPRIATIONS CITY MANAGER Reflects reappropriation of unspent funds for audit services and reduction related to computer equipment replacement program contributions.58.2$ TOTAL CITY MANAGER EXPENDITURE ADJUSTMENTS 58.2$ CITY ATTORNEY Reflects reduction related to computer equipment replacement program contributions. $ (1.7) TOTAL CITY ATTORNEY EXPENDITURE ADJUSTMENTS (1.7)$ BIG BLUE BUS Reflects adjustments related to the consolidation of mobility, parking and transportation functions into the Big Blue Bus department. $ 22,280.2 TOTAL BIG BLUE BUS EXPENDITURE ADJUSTMENTS 22,280.2$ COMMUNITY DEVELOPMENT Reflects reduction related to computer equipment replacement program contributions.(3.2)$ Reflects adjustments related to the consolidation of mobility, parking and transportation functions into the Big Blue Bus department.(22,280.2)$ TOTAL COMMUNITY DEVELOPMENT EXPENDITURE ADJUSTMENTS (22,283.4)$ COMMUNITY SERVICES Reflects reappropriation of unspent funds for recreation management software system and reduction related to computer equipment replacement program contributions.38.2$ TOTAL COMMUNITY SERVICES EXPENDITURE ADJUSTMENTS 38.2$ FINANCE Reflects reappropriation of unspent funds for fee study and reduction related to computer equipment replacement program contributions.71.6$ TOTAL FINANCE EXPENDITURE ADJUSTMENTS 71.6$ FIRE Reflects adjustments related to transfer of oversight of the West Coast Care contract for outreach to individuals experiencing homelessness at the Beach and in parks from the Police Department to the Fire Department and reduction related to computer equipment replacement program contributions. $ 99.8 TOTAL FIRE EXPENDITURE ADJUSTMENTS 99.8$ HUMAN RESOURCES Reflects reduction related to computer equipment replacement program contributions.(0.1)$ TOTAL HUMAN RESOURCES EXPENDITURE ADJUSTMENTS (0.1)$ INFORMATION SERVICES Reflects reduction related to computer equipment replacement program contributions.(3.6)$ TOTAL INFORMATION SERVICES EXPENDITURE ADJUSTMENTS (3.6)$ EXPENDITURE BUDGET ADJUSTMENTS ($ IN THOUSANDS) GENERAL FUND (01) October 27, 2020 2 of 5 ATTACHMENT B Fund/Department Description FY 2020-21 Increase / (Decrease) REVISIONS TO FY 2020-21 REVENUE AND EXPENDITURE BUDGET APPROPRIATIONS POLICE Reflects adjustments related to transfer of oversight of the West Coast Care contract for outreach to individuals experiencing homelessness at the Beach and in parks from the Police Department to the Fire Department and reduction related to computer equipment replacement program contributions.(103.5)$ TOTAL POLICE EXPENDITURE ADJUSTMENTS (103.5)$ PUBLIC WORKS Reflects reduction related to computer equipment replacement program contributions and personnel classification changes.(1.9)$ TOTAL PUBLIC WORKS EXPENDITURE ADJUSTMENTS (1.9)$ NON-DEPARTMENTAL Reflects one-time increase for anticipated unemployment claims, funded by set- aside reserve funds.1,000.0$ Reflects transfer of reserve funds from the General Fund to the Comprehensive Liability Self Insurance Fund for settlement of two claims brought against the City, as approved by Council on October 13, 2020.9,825.0$ Reflects one-time appropriation of funding received from Federal CARES Act.1,140.0$ Strategic Goals Reflects reappropriation of unspent funds for programs or projects that were delayed.383.4$ TOTAL NON-DEPARTMENTAL EXPENDITURE ADJUSTMENTS 12,348.4$ CAPITAL IMPROVEMENT PROGRAM (CIP) Information Services Reflects increase to computer equipment replacement program for department contributions related to new equipment purchased in FY 2019-20.38.7$ TOTAL CAPITAL IMPROVEMENT PROGRAM EXPENDITURE ADJUSTMENTS 38.7$ 12,540.8$ GENERAL FUND - EXPENDITURE OFFSETS Use of Reserves Release reserves for settlement of two claims brought against the City, as approved by Council on October 13, 2020.(9,825.0)$ Release reserves to fund anticipated unemployment claims.(1,000.0)$ Release reserves of prior-year unspent funds for Strategic Goals projects that were delayed.(383.4)$ Release reserves of prior-year unspent funds for audit services in the City Manager's Office, fee study in the Finance Department, and recreation management software system in the Community Services Department.(189.7)$ (11,398.1)$ 1,142.7$ 1 Amount funded by $1,140,000 in revenue related to Federal CARES Act funds, as reflected in revenues section, plus $2,696 increase related to personnel classification changes in the Public Works Department. NET GENERAL FUND EXPENDITURE ADJUSTMENTS 1 TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS TOTAL GENERAL FUND - EXPENDITURE OFFSETS Use of Prior Year Funds October 27, 2020 3 of 5 ATTACHMENT B Fund/Department Description FY 2020-21 Increase / (Decrease) REVISIONS TO FY 2020-21 REVENUE AND EXPENDITURE BUDGET APPROPRIATIONS AIRPORT (57) FUND Public Works Reflects reduction related to computer equipment replacement program contributions.(1.0)$ Capital Improvement Program Reflects increase to computer equipment replacement program for the Fund's contributions related to new equipment purchased in FY 2019-20.1.0$ -$ BEACH (11) FUND Community Services Reflects reduction related to computer equipment replacement program contributions.(1.2)$ Capital Improvement Program Reflects increase to computer equipment replacement program for the Fund's contributions related to new equipment purchased in FY 2019-20.1.2$ -$ BIG BLUE BUS (60) Big Blue Bus Reflects adjustments related to position and classification changes.19.7 19.7$ COMMUNITY BROADBAND (55) FUND Information Services Reflects reduction related to computer equipment replacement program contributions.(1.4)$ Capital Improvement Program Reflects increase to computer equipment replacement program for the Fund's contributions related to new equipment purchased in FY 2019-20.1.4$ TOTAL COMMUNITY BROADBAND FUND EXPENDITURE ADJUSTMENTS -$ PARKING AUTHORITY (61) FUND Big Blue Bus Reflects the consolidation of mobility and transportation functions into the Big Blue Bus department.0.9$ Community Development Reflects the consolidation of mobility and transportation functions into the Big Blue Bus department.(0.9)$ -$ RESOURCE RECOVERY AND RECYCLING (54) FUND Public Works Reflects reduction related to computer equipment replacement program contributions.(1.0)$ Capital Improvement Program Reflects increase to computer equipment replacement program for the Fund's contributions related to new equipment purchased in FY 2019-20.1.0$ -$ SELF-INSURANCE, COMPREHENSIVE (72) FUND Non-Departmental Reflects transfer of reserve funds from the General Fund to the Comprehensive Self Insurance Fund for settlement of two claims brought against the City, as approved by Council on October 13, 2020.(9,825.0)$ (9,825.0)$ NON-GENERAL FUNDS TOTAL SELF-INSURANCE,COMPREHENSIVE FUND EXPENDITURE ADJUSTMENTS TOTAL PARKING AUTHORITY FUND EXPENDITURE ADJUSTMENTS TOTAL BEACH FUND EXPENDITURE ADJUSTMENTS TOTAL AIRPORT FUND EXPENDITURE ADJUSTMENTS TOTAL BIG BLUE BUS FUND EXPENDITURE ADJUSTMENTS TOTAL RRR FUND EXPENDITURE ADJUSTMENTS October 27, 2020 4 of 5 ATTACHMENT B Fund/Department Description FY 2020-21 Increase / (Decrease) REVISIONS TO FY 2020-21 REVENUE AND EXPENDITURE BUDGET APPROPRIATIONS SPECIAL REVENUE SOURCE (10) FUND Big Blue Bus Reflects the consolidation of mobility and transportation functions into the Big Blue Bus department.170.7$ Community Development Reflects the consolidation of mobility and transportation functions into the Big Blue Bus department.(170.7)$ -$ WASTEWATER (51) FUND Public Works Reflects reduction related to computer equipment replacement program contributions.(0.5)$ Capital Improvement Program Reflects increase to computer equipment replacement program for the Fund's contributions related to new equipment purchased in FY 2019-20.0.5$ -$ WATER (50) FUND Public Works Reflects reduction related to computer equipment replacement program contributions.(0.7)$ Capital Improvement Program Reflects increase to computer equipment replacement program for the Fund's contributions related to new equipment purchased in FY 2019-20.0.7$ -$ (9,805.3)$ TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS 12,540.8$ TOTAL NON-GENERAL FUND EXPENDITURE ADJUSTMENTS (9,805.3)$ GRAND TOTAL FY 2020-21 ALL FUNDS EXPENDITURE ADJUSTMENTS 2,735.6$ TOTAL GENERAL FUND - EXPENDITURE OFFSETS (11,398.1)$ (11,398.1)$ NET GENERAL FUND EXPENDITURE ADJUSTMENTS 1 1,142.7$ (9,805.3)$ (8,662.6)$ 1 Amount funded by $1,140,000 in revenue related to Federal CARES Act funds, as reflected in revenues section, plus $2,696 increase related to personnel classification changes in the Public Works Department. 2 Reflects the transfer-in of funds from the General Fund from use of reserves for settlement payment of two claims. The payments will be issued from the Self Insurance, Comprehensive Fund. The amount is partially offset by $19,721 increase related to position and classification changes in the Big Blue Bus. NET NON-GENERAL FUND EXPENDITURE ADJUSTMENTS 2 GRAND TOTAL FY 2020-21 NET ALL FUNDS EXPENDITURE ADJUSTMENTS TOTAL NON-GENERAL FUND EXPENDITURE ADJUSTMENTS GRAND TOTAL FY 2020-21 ALL FUNDS - EXPENDITURE OFFSETS TOTAL SPECIAL REVENUE SOURCE FUND EXPENDITURE ADJUSTMENTS TOTAL WATER FUND EXPENDITURE ADJUSTMENTS TOTAL WASTEWATER FUND EXPENDITURE ADJUSTMENTS October 27, 2020 5 of 5 ATTACHMENT C City Council Meeting: October 27, 2020 Santa Monica, California RESOLUTION NUMBER ________(CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING NEW CLASSIFICATIONS AND ADOPTING SALARY RATES FOR FIRE PREVENTION COORDINATOR, SENIOR TRANSIT MAINTENANCE WORKER, AND TRANSIT SAFETY, SECURITY AND TRAINING TECHNICIAN NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The following salary levels are hereby established, effective October 27, 2020, for the indicated permanent classifications: FIRE PREVENTION COORDINATOR $7,940/month, Step 5 SENIOR TRANSIT MAINTENANCE WORKER $6,199/month, Step 5 TRANSIT SAFETY, SECURITY, AND TRAINING TECHNICIAN $5,744/month, Step 5 SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: GEORGE S. CARDONA Interim City Attorney POSITION AND CLASSIFICATION CHANGES ATTACHMENT D FUND DEPT FTE POSITION TITLE FUND DEPT FTE POSITION TITLE NET FTE CHANGE NET SAL CHANGE 60 BBB 1.0 Staff Assistant II 60 BBB 1.0 Transit Safety, Security, and Training Technician 2 - 5,333 60 BBB 2.0 Sr Transit Maintenance Worker 60 BBB 2.0 Sr Transit Maintenance Worker 2 - 14,388 01 CD 1.0 Assistant Director of Community Development/Chief Mobility Officer 01 BBB 1.0 Assistant Director of Community Development/Chief Mobility Officer 3 - - 01 CD 1.0 Principal Traffic Engineer 01 BBB 1.0 Principal Traffic Engineer - - 01 CD 1.0 Principal Transportation Planner 01 BBB 1.0 Principal Transportation Planner - - 01 CD 3.0 Senior Transportation Planner 01 BBB 3.0 Senior Transportation Planner - - 01 CD 1.0 Sr Transportation Planner - Bicycle Program 01 BBB 1.0 Sr Transportation Planner - Bicycle Program - - 01 CD 1.0 Staff Assistant III 01 BBB 1.0 Staff Assistant III - - 01 CD 1.0 Traffic Painter Crew Leader 01 BBB 1.0 Traffic Painter Crew Leader - - 01 CD 1.0 Transportation Engineer 01 BBB 1.0 Transportation Engineer - - 01 CD 1.0 Transportation Management Coordinator 01 BBB 1.0 Transportation Management Coordinator - - 01 CD 2.5 Transportation Management Specialist 01 BBB 2.5 Transportation Management Specialist - - 01 CD 2.0 Transportation Planning Assistant 01 BBB 2.0 Transportation Planning Assistant - - 01 CD 4.0 Transportation Planning Associate 01 BBB 4.0 Transportation Planning Associate - - 01 CD 1.0 Lead Traffic Signal Technician 01 BBB 1.0 Lead Traffic Signal Technician - - 01 CD 1.0 Parking Meter Crew Leader 01 BBB 1.0 Parking Meter Crew Leader - - 01 CD 2.0 Parking Meter Technician 01 BBB 2.0 Parking Meter Technician - - 01 CD 1.0 Traffic Operations Supervisor 01 BBB 1.0 Traffic Operations Supervisor - - 01 CD 2.0 Traffic Signal Technician 01 BBB 2.0 Traffic Signal Technician - - 01 CD 1.0 Customer Service Supervisor 01 BBB 1.0 Customer Service Supervisor - - 01 CD 1.0 Parking Manager 01 BBB 1.0 Parking Manager - - 01 CD 1.0 Parking Operations Specialist 01 BBB 1.0 Parking Operations Specialist - - DELETE ADD SUBTOTAL 1 October 27, 2020 POSITION AND CLASSIFICATION CHANGES ATTACHMENT D FUND DEPT FTE POSITION TITLE FUND DEPT FTE POSITION TITLE NET FTE CHANGE NET SAL CHANGE DELETE ADD SUBTOTAL 1 01 CD 1.0 Parking Permits Assistant 01 BBB 1.0 Parking Permits Assistant - - 01 CD 1.0 Principal Administrative Analyst 01 BBB 1.0 Principal Administrative Analyst - - 01 Fire 1.0 Fire Safety Coordinator 4 01 Fire 1.0 Fire Prevention Coordinator 4 - - 01 Fire 1.0 Fire Code Enforcement Officer I/II 4 (1.0) - 01 Fire 1.0 Staff Assistant III 4 (1.0) - 01 PW 1.0 Community Garden Program Specialist 01 PW 1.0 Community Services Program Coordinator 2 - 2,696 -2.0 FTE 22,417 -2.0 FTE 22,417 PERMANENT EMPLOYEES TOTAL 1 Salary totals include fringe costs. 2 Positions have been prorated to 8 months. 3 Pending new title GRAND TOTAL 4 These deletions are required to effectuate changes reflected in the City’s budget restructuring. Salary savings in the Fire Department have already been incorporated in the FY 2020-21 Adopted budget; therefore, there is no additional impact to the budget at this time. October 27, 2020 Santa Monica Mobility Commission Proposal Why Create a Mobility Commision for Santa Monica? jump to proposal ⇨ see supporters ⇨ Careful and comprehensive attention to Mobility issues is prerequisite to better outcomes on many of Santa Monica’s central issues: Climate change, congestion, quality of life, road safety (Vision Zero), equity, and access require the City to focus strongly on practical mobility policies, initiatives and outcomes. Mobility is one of the City’s five focus initiatives. The proposal to combine Big Blue Bus and the Mobility Division results in a division with a quarter of the City’s employees (500); that consumes significant recurrent yearly revenue ($70M); expends close to $30 million yearly in capital, and has a direct daily impact on every part of the City; commercial, residential, retail, service, access. In practice, the proposed new mobility-focused Department will develop mobility policy, operate Big Blue Bus as transit, assess parking policy, implement parking policy, write TDM plans, traffic engineer, and in general, be the major policy originator, operator and regulator for transportation and mobility options in Santa Monica. Each decision made by the Department will impact every individual, individual choice, business, business community, business choice, commercial viability, overall City economic viability, and community in the City. Santa Monica’s mobility assets are overwhelming. There is a progressive population with 75% bike ownership; significant ongoing City revenue (despite COVID-19 induced downturn): a City-owned regional bus operator, three light rail stations and daily service, city ownership of large downtown parking assets with thousands of parking spaces, control of parking pricing, control and maintenance of its own streets, numerous micro-mobility options, a large installed base of rideshare customers, a major State freeway, and an ability and determination to lead the region and make a difference on key policy issues Currently absent is a coordinated, comprehensive, Citywide approach to mobility with policy, practice, and operations that integrate bus transportation, train transit, bike options, pedestrian capacity, rideshare, micro-mobility, car control and movement; infrastructure to support clean fuel vehicles (i.e., electric); and parking policy: prioritizes value for money; and looks to immediate social outcomes for the City and populations. In the transportation field, this approach is known as mobility management. The COVID-19-induced recession is likely to reduce fares, advertising, state, and local funding for transit and mobility options for many years. Social distancing and health concerns continue to impact bus and transit ridership.This is a great reset for mobility and our economy more broadly. Therefore, this moment is an opportunity to directly improve key outcomes in reducing congestion, lowering emissions, encouraging walking, boosting biking, assessing non-car alternatives, and improving road safety. The proposal for a Mobility Commission in a moment of 1 Item 8.B 10/27/2020 1 of 8 Item 8.B 10/27/2020 Santa Monica Mobility Commission Proposal unprecedented change is an opportunity to transform the way residents and visitors can move around Santa Monica. The reduction in paid parking during the coronavirus has exposed the limits of relying on parking revenues versus using parking to achieve the city’s mobility and economic goals. This change foreshadows how a future of increased use of alternatives to driving and parking, including automated vehicles, will impact the city’s revenues. Deep attention is needed to transition from parking revenues towards a more sustainable source of funds, such as cordon pricing or congestion pricing. In this age of big data, A new Mobility Commission can be chartered with an outcomes-focused approach through performance tracking of injury, congestion, modal split, and other performance measures. This contrasts with the status quo’s predominant focus on inputs such as plans and projects. Mobility Commission Proposal Finding #1: The City of Santa Monica has long been a leader in public mobility. The City created California’s third municipal transit operator when it started the nearly a century ago Big Blue Bus in 1928 (SMMC 2.12.060). Finding #2: Mobility remains central to quality of life congestion, safety, and environmental impact in Santa Monica. The evolution of mobility in Santa Monica and beyond is essential to the fiscal, environmental, and social sustainability of the City in the next century. Finding #3: A 2018 City Greenhouse Gas Emissions Inventory identified vehicle transportation as the source of 63% of community GHG emissions. In May 2020, the City Council adopted a goal to reduce GHG emissions 80% below 1990 levels by 2030. Finding #4: Between 2009 and 2018, an average of 4 people were killed and 26 were severely injured each year on Santa Monica’s streets. Fifty-two percent of those killed or severely injured were walking or on bicycles. In February 2016, the Santa Monica City Council adopted a Vision Zero goal to eventually eliminate traffic fatalities and severe injuries Finding #5: Achieving the City’s vision for mobility will require substantial governmental intervention and policy-induced behavioral change, and engagement and governance of these changes requires more time and expertise than the Planning Commission and City Council can devote. Finding #6: Consideration and deliberations of mobility issues incidental to other decisions (e.g. Development Agreement approvals) do not allow careful expert considerations of the issues and comprehensive options. A Mobility Commission would make the Planning Commission and City 2 Item 8.B 10/27/2020 2 of 8 Item 8.B 10/27/2020 Santa Monica Mobility Commission Proposal Council more efficient and make the city’s mobility decision-making more comprehensive and effective. Finding #7: A Mobility Commission could be implemented without additional general fund resources because it would offload existing burdens from the Planning Commission and Council, make these two bodies more efficient, and transit enterprise funds could be used for any additional staff support deemed required. Therefore, the City of Santa Monica should establish an outcomes-focused Mobility Commission that provides vision, oversight, and insight into Santa Monica’s mobility challenges and opportunities as the mobility sector transforms substantially in the coming decades. 1)A proposed composition of this Commission would include 7 members: a)Three members shall be transportation practitioners working in advocacy consulting, operations, research or service delivery with at least 5 years of professional experience b)One member shall be a member of the senior community c)One member who is an adult and is fully or partially reliant on public, shared, active mobility options. d)A student attending any high school or public college in Santa Monica California. This individual shall resign when no-longer an enrolled student. e)One at-large member 2)In addition, the Commission should include ex-officio observer members (non-voting members) from Accredited Institutions of Higher Education which assess a student fee to provide free Big Blue Bus passes to students. As of this writing, these are: a)A member appointed by the UCLA Graduate Students Association b)A member appointed by the Associated Students of Santa Monica College Within Mobility Commission Purview ●Required and voluntary public hearings for Transit Division (Big Blue Bus) including FTA-mandated Title VI hearings, Short Range Transit Plans ●Oversight of paratransit and social service transportation such as Dial-a-Ride and Mobility on Demand Everyday ●Permitting of Bikeshare/Shared Mobility/Micro-mobility (SMMC 3.06, 3.20, 3.21, 3.22) ●Bicycle Action Plan annual reporting and performance measures ●Pedestrian Action Plan annual reporting and performance measures ●Vision Zero regular outcomes reporting and key projects ●Mobility capital projects and Capital Improvement Program input to City Council ●Hearings pertaining to management of city parking facilities (hold hearings and advise CC on parking pricing) (SMMC 3.04) 3 Item 8.B 10/27/2020 3 of 8 Item 8.B 10/27/2020 Santa Monica Mobility Commission Proposal ●Transportation Demand Management (SMMC 9.53) reporting and oversight ●Private use of Public Right of Way for parklets, valet zone, outdoor dining, etc. (SMMC 6.120, SMMC 7.06) ●Consideration of and initial hearings related to congestion charges in Santa Monica (prospective) ●Mobility-related communications and marketing campaigns such as GoSamo and Take the Friendly Road ●Safe Routes to School oversight and, in coordination with SMMUSD, public recognition of Bike-It / Walk-It / Bus-It campaign ●Transportation Management Organization (TMO) reports and oversight ●PC or CC may refer mobility aspects of discretionary review to MC. Mobility Commission meetings on mobility aspects of discretionary review are not mandated unless requested by the public, applicant, staff, or as directed by the City Council. ●Preferential parking permit hearings (SMMC 3.08, 3.10) ●Public hearings and recommendations to CC regarding changes to traffic regulations and curb management (SMMC 3.12) ●Advisory to CC and PC on Long-range and Strategic Planning, such as LUCE, Bike Action Plan, Pedestrian Action Plan, Electric Vehicle Action Plan ●Advisory to Planning Commission on the Housing Element regarding mobility issues Maybe within purview No ●Transportation Impact Fee Program (SMMC 9.66) ●Parking enforcement & enforcement discretion (currently a PD function, could be rolled into Mobility Department in concurrence with best practices at SFMTA, LADOT, Long Beach) ●Development impact fees ●Civil penalties for parking violations (SMMC 3.04) ●Development impact mitigation ●Big Blue Bus Governing Board remains City Council ●Contract approvals (remains CC). ●Parking and mobility-related variances for development and re-development (e.g. bike room placement, employee showers) 4 Item 8.B 10/27/2020 4 of 8 Item 8.B 10/27/2020 Santa Monica Mobility Commission Proposal Supporters list as of 10/26 City-appointed Board and Commission Members: Leslie Lambert, Chair, Planning Commission Shawn Landres, Chair, Planning Commission Ellis Raskin, Planning Commissioner Carl Hansen, Housing Commissioner Leonor Yetter, Housing Commissioner Juan Matute, Vice Chair Downtown Santa Monica, Inc. Pam O’Connor, Commission Working Group, Metrolink Board, former President Southern California Association of Governments, former Chair of Los Angeles County Metro Carter Rubin, Santa Monica Pier Corporation Board Natalya Zernitizkaya, Audit Subcommittee Community Members Abby Arnold, former Chair, Santa Monica Pier Corporation Board Anne Hawthorne, Executive Director of a foundation supporting community and youth. Jason Islas, mobility professional and environmental action organization board member Richard McKinnon, former Planning Commissioner Greg Morena, former City Councilmember Zoe Muntaner, Candidate for Santa Monica City Council. Cynthia Rose, Executive Director of Santa Monica Spoke and Chairwoman, California Bicycle Coalition 5 Item 8.B 10/27/2020 5 of 8 Item 8.B 10/27/2020 A community group dedicated to walking and biking in Santa Monica. Working to make the City of Santa Monica   a more sustainable, walkable and bikeable place to live, work and play.   October 27, 2020   Item 8B   Dear Mayor, City Council, Management and Staff, Santa Monica Spoke and the Santa Monica Safe Streets Alliance would like to express their support for re- envisioning Santa Monica’s Green Street Future through the creation of a “Department of Transportation,” but we strongly urge you to ensure that there is no rush in merging the Mobility, parking, taxi and Big Blue Bus operations into one department. Although we agree that Santa Monica can beneﬁt by creating and streamlining these departments, a merger of this magnitude is a huge undertaking with far-reaching organizational challenges. Racing to weave together several long-standing divisions, with cultures particular to their charges, could be detrimental to achieving the fundamental goal to streamline and strengthen efficiencies. We do support building a credible “Department of Transportation” or equivalent, for Santa Monica that aims at shifting away from a car-centric use of our largest public asset—our streets. We also support establishing a Mobility Commission to help further streamline and oversee the new vision and help hold accountable the new department to be action oriented with measurable outcomes. The new consolidated department must have an enabling organizational structure that equalizes and balances the input of vastly differing teams with measurable outcomes reﬂective of the City's goals for multi-mobility. We must thoughtfully weigh the process of how to mesh these two organizations to make the outcomes doable and accountable. A similar process in Oakland utilized 18 months to engage, explore and implement their organizational structure overseeing their transportation vision. We don’t necessarily need that long a time, but we must not rush if we intend to get this right, without precipitating unintended inadequacies or structural restrictions. The culture of Santa Monica’s Mobility Division has evolved to imagine, plan and establish a system of streets and multi-modal travel that implements the City’s adopted visions and goals. Despite suffering throttling and roadblocks, out of its immediate control, along with the stresses of the pandemic, the dedicated staff management has continued to beneﬁt the community with many years of commitments and investments in successful programs and projects that have been realized to improve safety, multi-mobility and productivity for our residents, businesses and visitors.     During COVID-19 those programs and projects that were kept moving or launched include: •Broadway protected bike lanes, •Main Street reconﬁgured for outdoor retail and alfresco dining, •Curbside management - permitting of pick up zones, •Parklets, •Pedestrian buttons reprogramming, •Traffic signal reprogramming, •Ocean Ave - protected bike lanes, sidewalk dining and realignment of pedestrian walkways, •17th Street protected bike lanes, •Stewart bike lanes, •Bike Action Plan Amendment - protected bike lanes, •ATP Grant apps for Stewart and Wilshire Blvd, •New e-bike share, shared mobility permitting and launch, •Breeze ride free program implementation and management, •ZED pilot - Zero Emissions Delivery zones successful application and forthcoming implementations.   Item 8.B 10/27/2020 6 of 8 Item 8.B 10/27/2020 For at least the last decade, Mobility has been hugely successful at securing funding and approvals for new implementations. Delays are often due to internal departmental roadblocks. A rushed attempt to resolve those blockages going forward would likely create new and further impediments. We need to avoid imposing a structure that locks us into unavoidable layers of bureaucracy to deal with notoriously stringent federal regulations. Without care to set up the new organization’s structure appropriately, we are bound to reduce agility and ﬂexibility of the Mobility Division to be dynamic and nimble moving forward. Differing substantially from the culture of multi-mobility is that of the Big Blue Bus given its mandates as a safety-driven, federally-regulated 24/7 logistical operation. By contrast, the Mobility Division and the related departments proposed for integration are 9/80 administrative operations charged with developing and implementing a new model of mobility in Santa Monica. Culturally, these groups are very different. Combining them must be done with balanced care so as not to dwarf the vision or thwart smooth implementation of a Green Streets Future. Everything that moves in Santa Monica goes through “Mobility.” Mobility is responsible for everything that parks or moves by any mode in Santa Monica. Though comparatively small by budget standards, Mobility shoulders enormous deliverables, responsibilities and expectations. We must create an organizational structure of balanced input between the massive Big Blue Bus and Mobility as well as the additional departmental functions,  prioritizing measurable desired outcomes that remain achievable and accountable to the adopted multi-modal Green Streets Future visions and goals of our City. Because the Big Blue Bus is a service operator carrying passengers over 53 square miles of routes, it involves a broad based customer area beyond our City. By contrast, Mobility is tasked with being a visionary administrative organization focused on implementing programs and infrastructure to serve how everyone and everything moves within Santa Monica. Any new department must balance these interests to serve the overall vision of multi-mobility for our City. Combining these departments and services with a merger requires thoughtful planning to ensure the desired, action oriented results. The new leadership of the merged departments must be open, imaginative and visionary to ensure that the structure and teamwork are balanced, collaborative, proactive with accountable action oriented expectations. Creating a new transportation department is no simple task and must be done with insight and balance. This will involve signiﬁcant staff time and effort. That staff is already carrying out busy work loads, with fewer personnel, following months of duress due to severe budget reductions, multiple pandemic requirements, and considerable new projects, protocols and practices for COVID-19 recovery. Building a department of transportation is a sound aspiration that has long been supported as a means to develop a complete streets plan leading to a multi-modal mobility system of transportation for all users to move safely and productively through equitable, welcoming and sustainable streets. Particularly at the threshold of a climate resilient age in Santa Monica, the effort to merge into an innovative division should not be compromised by dashing to meet an arbitrary deadline. Only with intentional, careful consideration in devising this new department can the City avoid unintended problems or unanticipated impacts or trade-offs that could confound or constrain future choices, particularly complicated with tight ﬁnancial resources. Let’s remember that the innumerable car-centric demands and infrastructure that we are now re-working and redesigning were once defaults to predetermined biases cemented eras ago. We are currently suffering and struggling to address the unintended consequences of building roads for over 50 years that have prioritized vehicles and speed instead of securing equity and safety for people.   Innovation in a new transportation department will be critical to respond to ﬁscal and practical conditions that are bound to shift. That we are now experiencing an unexpected, extraordinary onslaught of the pandemic and accelerating climate urgencies is an unfortunate new normal. Let us not miss the historical opportunity to concentrate on implementing projects during this unprecedented time instead of, once again, distracting an already overworked staff with a rushed restructuring to create what we concede is an important new department. This can be done in good time - but let’s choose wisely how we allocate these precious resources in these crucial moments as we build and rebuild from the COVID-19 crisis. There needs to be ample time to build a collaborative team that can capitalize on the respective strengths and capabilities, while determining timely goals and priorities, in addition to contending with any competing concerns. Item 8.B 10/27/2020 7 of 8 Item 8.B 10/27/2020 Most important, to generate a noteworthy complete Green Streets Future that can be successfully implemented there must be genuine community engagement. As long-term residents and community advocates and users of multi-modal mobility, as decades-long Big Blue Bus riders, and as members of the Transportation Management Organization Advisory Team, we have participated in or helped lead numerous programs and community meetings about commuting in Santa Monica. We have worked closely with the Mobility Division and have communicated candidly with the Big Blue Bus leaders. We value the opportunity to coalesce capacities of disparate divisions dealing with transportation options and the varied uses of our streets. Yet, a robust integration requires a reasonable amount of time for the result to be efficient, effective and responsive to all users while remaining action oriented and accountable for achieving Santa Monica’s Green Streets Future and multi-modal visions and goals. The merger is not a race. We urge the Council to direct staff to take the time necessary to be thoughtful and thorough in creating any such merger for it to be efficient and successful, and we enthusiastically support creating a Mobility Commission to support the departmental structure and efficiencies. At this point we are left asking, “What is the rationale for the staff to recommend that the merger be ‘effective December 1, 2020’? What is expected to be completed or underway by December?”     With respect,      Cynthia Rose Director, Santa Monica Spoke Cris Gutierrez  Co-Chair, Santa Monica Safe Street Alliance Co-Chair, Santa Monica Safe Streets Alliance SMSpoke.org  Item 8.B 10/27/2020 8 of 8 Item 8.B 10/27/2020