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SR 04-11-2023 11A 604-001 / 911-000 / 202-002 / 506-002-03 / 701-006 City Council Housing Authority Parking Authority Report City Council Meeting: April 11, 2023 Agenda Item: 11.A 1 of 17 To: Housing Authority, Parking Authority, Mayor and City Council From: Gigi Decavalles-Hughes, Director, Finance Department, Budget Subject: Fiscal Year 2022-23 Midyear Budget Recommended Action Staff recommends that the City Council, Housing Authority and Parking Authority: 1. Appropriate FY 2022-23 midyear revenue and expenditure budget adjustments (Attachment A). Staff also recommends that the City Council: 1. Adopt a Resolution establishing new classifications and adopting salary rates for various positions (Attachment B); 2. Approve the position and classification changes (Attachment C); 3. Adopt the attached resolution authorizing the application for approved grant funds in the amount of $10 million from the California Arts Council for the Santa Monica City Yards Modernization Microgrid Projects (Attachment D); 4. Adopt the attached resolution authorizing execution of agency-state Master Agreement for State and Federal-Aid funded transportation projects with the California Department of Transportation, in the amount of $4.8 million, for the Lincoln Neighborhood Corridor Streetscape (LiNC) projects (Attachment E); 5. Authorize the City Manager to accept a grant award in the amount of $51,173 from the U.S. Department of Justice (DOJ) Edward Byrne Memorial Justice Assistance Grant (JAG) for implementation of the JAG 2022 Project “Overtime Operations to Keep Neighborhoods Safe” and execute all necessary documents to accept the grant and all grant renewals; 6. Authorize the City Manager to accept a grant award in the amount of $34,497 from the U.S. Department of Justice (DOJ) Bureau of Justice Assistance 2022 Bulletproof Vest Partnership (BVP) Grant to support the replacement of bulletproof vests and execute all necessary documents to accept the grant and all grant renewals; 7. Authorize staff to amend the City’s Fiscal Policy to allow for the suspension of the accelerated paydown of the City’s unfunded pension liability from FY 2022-23 to FY 2027-28 or later, pending restoration of City services and maintenance budgets and reserves; and, 11.A Packet Pg. 1135 2 of 17 8. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. Summary The Midyear Budget Review provides an opportunity to assess whether adopted budget projections should be adjusted based on eight months of actual data. Adjustments in current year projections are important as they may inform future year projections and therefore assist staff in developing the five-year financial forecast and the budget targets for the next biennial budget. Actual data shows that while our economy has been recovering, indicators are still reflecting high volatility and uncertainty in the economy, with continued inflation, interest rate increases, labor shortages, and changes in office work, consumer and visitor behavior. Additionally, recent bank failures have caused concerns regarding potential weakness in the global financial system, which in some cases has already required government intervention in the U.S. and abroad. The City’s General Fund primarily relies on revenue streams that are indicators of local economic activity, including sales and hotel taxes, parking revenues, and property taxes. While General Fund revenues are growing, a sign that our local economy has been recovering, levels are still below what they would have been had the economy not been disrupted by the pandemic. At the same time, as reported in the FY 2023-24 through FY 2027-28 Five Year Financial Forecast presented to City Council at the 2023 Council Workshop on March 11, 2023, while the City’s economy showed a strong recovery over the past 18 months, it is now showing signs of softening. The $21.9 million increase to budgeted FY 2022-23 General Fund revenues recommended in this report is for the most part a one-time increase, reflecting an earlier than anticipated recovery that will now shift to a significantly moderated recovery. Adding to the fiscal challenge is the current condition of the General Fund reserves. Strong reserves are necessary to cushion the delivery of services from the impact of emergency expenditures, contingent liabilities, and economic uncertainty. Since 2020, 11.A Packet Pg. 1136 3 of 17 the City has had to program General Fund reserves to deliver essential services during the COVID-19 pandemic and to cover a significant portion of the $107.3 million in legal settlement payments related to allegations of sexual abuse by former employees. The General Fund non-restricted reserves are now 70% of what they were as of June 30, 2019. Looking ahead, the City is facing some extraordinary, one-time contingent liabilities that further threaten reserve levels. To summarize, it is important to keep the following conditions in mind as we adjust the budget at midyear: • There is still a great amount of volatility and concerns about weaknesses in the economy; • General Fund revenue levels, even as adjusted, are still below the levels they were projected to have reached had the pandemic not occurred, explaining the City’s limited ability to restore services; • The pace of economic recovery has been earlier than anticipated (and budgeted), but is now showing signs of softening; and • The City’s General Fund reserves, important to maintain uninterrupted essential service delivery and maintain financial stability, are at a reduced level while contingent liabilities loom in the future. For this reason, midyear expenditure changes are kept to a minimum, with a net increase of 8.2 FTE permanent positions (7.2 FTE in the General Fund), offset by a decrease of 4.7 as-needed FTE positions (4.27 FTE in the General Fund), primarily focused on the expansion of youth programs, as preliminarily approved by Council at the 2023 Council Workshop. The expenditure adjustments also include items based on Council actions taken after the adoption of the FY 2022-23 Budget, adjustments related to revenue-sharing payments as a result of revenue changes, corrections, and adjustments based on new information. The table below summarizes the revenue and expenditure budget adjustments. The complete list of adjustments is included in Attachment A. 11.A Packet Pg. 1137 4 of 17 Proposed Budget Adjustments (in millions) Fund Revenues Expenditures Operating Capital Total General Fund $ 21.9 $ 11.6 $ 0.2 $ 11.8 Other Funds $ 42.0 $ 4.1 $ 17.0 $ 21.1 Total All Funds $ 63.9 $ 15.7 $17.2 $ 32.9 The report also includes recommendations to adopt two resolutions for State earmarks for the City Yards Modernization Microgrid and the Lincoln Neighborhood Corridor Streetscape (LiNC) projects, accept two federal grants from the U.S. Department of Justice and to authorize staff to suspend future pension fund paydown payments starting in FY 2022-23 through FY 2027-28, or later, based on Council direction at that time, providing the ability to reallocate those funds to restoring General Fund services while revenues continue to recover. Background The FY 2022-23 Operating Budget and FY 2022-24 Biennial Capital Improvement Budget was adopted by Council on June 28, 2022 (Attachment F). The FY 2022-23 Operating Budget was built in an environment of significant economic uncertainty and is focused on key areas that improve service delivery for the community. The first year (FY 2022-23) of the FY 2022- 24 Adopted Biennial Capital Improvement Program (CIP) Budget is focused on strategic investments in maintaining and enhancing critical City infrastructure and City facilities essential to providing services. At the March 11, 2023 City Council Workshop, staff presented the FY 2023-24 through FY 2027-28 Five Year Financial Forecast. The General Fund forecast, which includes the midyear adjustments proposed in this report, reflects a positive balance of revenues and expenditures for the next three years, with a low level of deficits in the last two years of the forecasted period. An overview of other funds noted that the Resource, Recycling and Recovery (RRR) Fund would achieve positive balances with the help of 11.A Packet Pg. 1138 5 of 17 rate increases, anticipated to be brought to Council for approval in June 2023, and that the Beach and Pier Funds would require subsidies from the General Fund during the forecast period. At the same meeting, Council: • Set the organizational priorities that will guide the development and implementation of the FY 2023-2025 biennial budget; and • Provided direction and preliminary approval for proposed FY 2023-25 budget items, including o the allocation of Measure CS funds, o the suspension of the unfunded pension liability paydown policy to allow the reallocation of $2.5 million in the General Fund to cover service restoration in key areas, o approval of the organizational realignment of the Community Service Department to align and focus the City’s work on Council priorities and implementation of newly adopted tax measures including Measure GS. With the exception of the priorities, which were slightly amended during the Workshop meeting (priorities as finalized are included as Attachment G), the attached March 11, 2023 staff report provides a thorough summary of the actions that were unanimously adopted. Discussion Midyear budget adjustments are made to reflect updated revenue projections, and to facilitate continuity in key service areas, for the reasons noted below. FY 2022-23 Midyear Revenue and Operating Expenditure Budget Adjustments Revenue Adjustments - General Fund Staff projects General Fund revenues to reach approximately $425.3 million in FY 2022- 23. This projection is based on actual data from July to February 2023 as well as 11.A Packet Pg. 1139 6 of 17 anticipated changes in economic conditions and community behaviors over the remainder of the fiscal year. These projections require adjustments to increase FY 2022-23 Revised Budget revenue targets in the General Fund by approximately $21.9 million. A summary of the significant budget changes is shown below. Attachment A lists all revenue budget changes by department and fund. Sales Taxes Including GSH transaction and use tax FY 2022-23 revenues are anticipated to be $7.3 million (~10%) above budget. Much of this is carryforward of strong FY 2021-22 results which reached and even slightly exceeded pre-COVID levels. However, FY 2022-23 levels are only 2% more than FY 2021-22 actuals. It is important to note that the FY 2022-23 revenue increase is accompanied by a $3.68 million expenditure increase, reflecting greater Measure GSH contributions to the School District and affordable housing. Utility Users Tax FY 2022-23 estimated revenues are exceeding budget by $2.8 million (8%), mostly due to spikes in electricity and gas costs. Transient Occupancy Tax (TOT) FY 2022-23 estimated revenues are $3.1 million (5%) above budget, primarily due to the impact of Measure CS increasing TOT rates, and higher than anticipated average room rates, partially offset by a number of rooms being off-line due to property renovations. Parking Facility Taxes FY 2022-23 estimated revenues are $1.3 million (14%) greater than budget, mostly driven by higher than anticipated revenues from private parking facilities. Property Taxes FY 2022-23 estimated revenues are $1.9 million (2.5%) above budget, reflecting higher than anticipated assessed value increases. Business License Tax FY 2022-23 estimated revenues are approximately $1 million (3%) more than budget. Documentary Transfer Tax FY 2022-23 revenues are projected to be $1 million below budget and nearly $7 11.A Packet Pg. 1140 7 of 17 million below last fiscal year as the number of transfers has declined significantly. Parking FY 2022-23 revenues are approximately $0.6 million less than budget primarily due to shifts from metered parking, which reach capacity during peak hours, to parking garages, which offer free parking for short stays; lower sales of monthly parking permits in favor of discounted parking validations as downtown businesses close, downsize, or offer more teleworking options; and less business activity than projected. Fees/Charges/Other FY 2022-23 revenues are about $2.1 million more than budget primarily reflecting a one-time SB 90 (mandated cost) reimbursement from the State. Investment Income FY 2022-23 revenues on a cash basis (excluding a typical year-end adjustment made for financial reporting purposes only) are approximately $1.1 million more than budget, reflecting a greater than anticipated increase in interest rates. Administrative Indirect (related to Cost Allocation Plan) FY 2022-23 revenues are approximately $2.9 million more than budget. This reflects an increased reimbursement to the General Fund from other funds for administrative support services, based on a recently-updated cost allocation plan. The transactions related to this item appear as expenditures throughout all of the non-General Funds in Attachment A. Those expenditures are then recorded as revenue to the General Fund. Revenue Adjustments - Other Funds FY 2022-23 revenue changes in the Other Funds result in an increase of approximately $42.0 million. Significant revenue adjustments in other funds are summarized below and detailed in Attachment A, along with all other revenue budget changes. • Beach Fund – Decrease of $580,352, primarily from a reduction in parking revenues due to delayed implementation of a projected rate increase pending California Coastal Commission (CCC) approvals, partially offset by greater than projected concession and event related revenues at the Annenberg Community Beach House. 11.A Packet Pg. 1141 8 of 17 • Big Blue Bus Fund - Increase of approximately $18.1 million is primarily related to final funding allocations from LA Metro due to higher than projected sales tax revenue and diesel sales, higher rental income related to the City’s transition from operating a ground lease to providing property management of the Bergamot Station property, and adjustments to reimbursement revenues for bus purchases, bus components, and labor. • Local Return Fund – Increase of $787,723 to align revenue based on revised funding allocations from LA Metro due to higher than projected sales tax revenue and diesel sales. Funds are to be used for local transportation projects. • Miscellaneous Grants Fund – Increase of approximately $19.4 million, reflecting funding from the State to fund the City Yards Modernization Microgrid and the LiNC projects; receipt of one-time federal HOME Investment Partnerships – American Rescue Plan (HOME-ARP) funding to provide eviction prevention services including legal services, case management, behavioral health care, and financial assistance (as approved by City Council on 9/13/22); two grant awards from the U.S. Department of Justice to support the replacement of bulletproof vests and overtime operations to keep neighborhoods safe; the annual award of the Used Oil Pay Program funds for public education, events and collection related to used oil recycling; and, other adjustments for grant funded projects projected to be completed and reimbursed by June 2023. • Resource Recovery and Recycling Fund - Decrease of approximately $2.1 million related to reduced collections fees resulting from a later than anticipated implementation of rate increases. Staff presented rate change recommendations to Council on February 28, 2023, with the new rates anticipated to be adopted by Council in June 2023 and effective in August 2023. • Self-Insurance, General Liability and Auto Fund - Increase of $3.1 million, reflecting a legal settlement payment from the General Fund related to allegations of sexual abuse by a former employee. • Special Revenue Source Fund – Increase of approximately $6.4 million reflecting initial payment received from Providence St. John's development agreement to 11.A Packet Pg. 1142 9 of 17 be used for Santa Monica behavioral health initiatives, increase in transportation impact fees due to a rebound to pre-pandemic levels of residential and commercial development activity, partially offset by decreased revenue from the revised allocation of annual entitlement funding from the State under the Permanent Local Housing Allocation Program, which is used for affordable housing production. • Vehicle Management Fund - Increase of approximately $872,000, reflecting increased vehicle maintenance revenue, which is paid by other City departments and funds. This reflects increased labor costs associated with revised salary and benefit changes based on the most recent labor agreements. • Wastewater Fund - Decrease of approximately $572,000 from decreased sewer service charges resulting from water use reduction as mandated by the City's Water Conservation Ordinance. • Water Fund - Decrease of approximately $3.4 million from decreased water sales resulting from water use reduction as mandated by the City's Water Conservation Ordinance. Operating Budget - General Fund - Expenditure Adjustments Staff proposes General Fund operating expenditure adjustments that result in an approximate $11.6 million net increase to the General Fund budget. It is important to note that $3.1 million of this amount represents the payment of funds set aside in General Fund reserves to the Liability Self Insurance Fund to pay for settlement of claims brought against the City and approximately $3.7 million is related to Measure GSH payments to the Santa Monica Malibu Unified School District and the Affordable Housing Trust Fund related to increased Transaction and Use Tax revenues. The remaining $4.8 million in operating budget adjustments reflect corrections and labor agreement impacts not included in the FY 2022-23 Adopted Budget and items that require immediate attention to maintain service levels. While Attachment A includes details of all expenditure adjustments, highlights are noted below. 11.A Packet Pg. 1143 10 of 17 Budget adjustments reflecting labor agreement impacts and corrections not included in the FY 2022-23 Adopted Budget: • Net zero adjustment to allocate funds to all departments’ budgets based on approved labor agreements. Funding for this adjustment was set aside in non- departmental to be appropriated during the midyear budget. • Appropriation of approximately $2.0 million for compensation adjustments in the Police Department, reflecting terms in the Santa Monica Police Officers Association (POA) Memorandum of Understanding, which requires base salaries of POA employees be adjusted to cause the ”net pay” of the Police Officer job classification to be the second highest in comparison local police departments. • Appropriation of $90,635 related to the Fire Executive Management Association item that is being considered in tonight’s consent calendar. • Appropriation of approximately $1.7 million to correct the Police Department’s budget for a compensation-related item that was inadvertently omitted during budget development. • Appropriation of $120,000, to provide tenant counseling services to assist residents at risk of being evicted from their homes. This is a budget correction to program funds for the second year of the two-year pilot program, as approved by Council on January 26, 2021. Budget adjustments for revenue-sharing payments, reflecting increased revenues: • Appropriation of approximately $2.5 million to increase the Measure GSH payment to the Santa Monica Malibu Unified School District from the General Fund, reflecting increased Transaction and Use Tax (TUT) revenues. • Appropriation of approximately $1.2 million to increase the Measure GSH transfer to the Affordable Housing Trust Fund from the General Fund, reflecting increased TUT revenues. 11.A Packet Pg. 1144 11 of 17 • Reduction of approximately $105,000 to decrease the payment for parking management services related to the parking revenue sharing agreement for Parking Structures 7 & 8, reflecting decreased parking revenues. Adjustments to Maintain Services • Appropriation of approximately $92,000 and the restoration of a net 2.93 permanent full time equivalent (FTE) positions for youth programs to meet and maintain updated staffing ratios per the City’s Child Protection protocols. This adjustment reflects the prorated FY 2022-23 costs associated with adding 7.2 permanent Community Services Program Coordinator and Community Services Program Specialist FTE positions, offset by the deletion of 4.27 As-Needed FTEs. While Council preliminarily approved this item as one of the uses for the proposed reallocation of pension pay-down funding in the next biennial budget, it is imperative that the process to recruit the positions start as soon as possible. Staff’s attempts to recruit temporary staff to achieve the needed ratios have been unsuccessful in the current labor market. The lack of consistent staffing coverage to support enrollment numbers is threatening to shut down a number of youth-related programs. Permanent positions offer candidates a consistent schedule, benefits and better pay, often resulting in more successful recruitments than those for temporary positions. Staff anticipates that these position restorations will enable the City to accomplish the following: o Move approximately 20-30 families off waitlists at PAL and VAP, o Maintain the Summer Lunch Program at VAP, o Enable the VAP Teen Center to expand operations to include high school students, o Enable the PAL Fitness Center to reopen, and o Provide some degree of stability for CREST operations at all but one SMMUSD school site, which will see the elimination of CREST Club while maintaining Enrichment. 11.A Packet Pg. 1145 12 of 17 • Elimination of a $500,000 FY 2022-23 credit to the General Fund from the Community Broadband (CBB) Fund. This credit, or transfer, was established during the City’s 2020 restructure to help the General Fund recover from revenue losses related to the pandemic. The elimination of this transfer will help ensure that the CBB Fund has sufficient funds to address critical operational needs. • Appropriation of approximately $444,000 to replace copper wire on City streetlights, as a result of a recent rash of copper wire thefts. • Appropriation of approximately $111,000 to continue contracted security services at the Pier in support of the DART team. This appropriation will access Measure CS funds received in FY 2022-23. At its March 11, 2023 meeting, Council preliminarily approved ongoing funding for continuation of DART activities from Measure CS funds. Programming of Measure CS funds, including the remainder of the funds received in FY 2022-23, will be included in the FY 2023-25 budget process. Operating Budget – Other Funds - Expenditure Adjustments Staff proposes operating expenditure adjustments that result in an approximate $4.1 million net increase in funds other than the General Fund. Attachment A details all expenditure adjustments. Significant increases are summarized below: • $2.3 million for various grant-funded programs appropriated in the Miscellaneous Grants Fund. • $2.8 million in payments to the General Fund for administrative support services provided to non-General Fund operations (reflecting the updated Cost Allocation Plan). • An offsetting amount of $1.2 million, representing an increased Measure GSH transfer (appearing as a credit) into the Housing Trust Fund from increases in sales taxes. • Staffing changes in the Department of Transportation (DOT) – Big Blue Bus Fund, result in a net addition of 1.0 FTE permanent position at a net cost of 11.A Packet Pg. 1146 13 of 17 $44,979. The changes include the addition of 1.0 FTE Principal Administrative Analyst position, partially offset by the deletion of 1.0 Senior Transit Operations Analyst position, which will address service restoration to pre-pandemic levels, implementation of the Comprehensive Operational Analysis recommendations, new Computer Aided Dispatch/Automated Vehicle Location (CAD/AVL) system and assist with the department’s ongoing recruitment and retention efforts for Motor Coach Operators (MCOs). DOT also proposes to add 1.0 FTE permanent Staff Assistant III position, partially offset by the deletion of 0.5 FTE as-needed position, to provide full time support in training, recruitment and retention of staff, specifically Motor Coach Operators, as there is a critical national shortage resulting in adverse impacts to service. Operating Budget – All Funds - Staffing Adjustments The combined midyear staffing adjustments in all funds result in a net increase of 8.2 permanent FTE positions (7.2 in the General Fund) and deletion of 4.73 as-needed FTE positions (4.27 in the General Fund). Attachment A describes each budget change in detail. Attachment B is a Salary Resolution detailing new classifications and salary rates, and Attachment C details all staffing adjustments. Capital Improvement Program (CIP) Budget Adjustments Recommended changes to the FY 2022-23 CIP budget include a net budget increase of approximately $17.2 million. The budget changes are detailed in Attachment A and summarized below. General Fund- Capital Budget Staff recommends the use of one-time CIP budget savings for an appropriation of $212,600 to fund the Rooftop Fall Protection and Access Retrofits project as part of the continued implementation and compliance of the OSHA Fall Protection Plan. This project will construct physical barriers, fall protection systems, and miscellaneous other engineering solutions to ensure safety for all staff accessing roofs of City buildings. 11.A Packet Pg. 1147 14 of 17 Non-General Funds- Capital Budget Miscellaneous Grant Fund As part of AB-179 Budget Act of 2022 legislation, the State's budget authorized two earmarks, totaling $14.8 million, to the City of Santa Monica for the City Yards Modernization Microgrid and the Lincoln Neighborhood Corridor Streetscape (LiNC) projects. In addition, the State delegated the California Arts Council and the California Department of Transportation as the pass thru agencies to distribute the two earmarks awarded to the City. Staff recommends allocating $10 million to the City Yards Modernization Microgrid project and approving the attached resolution required by the California Arts Council (Attachment D). This microgrid would provide efficient, reliable, and cost-effective energy that has a low environmental and carbon impact. It could also store energy, allowing the City Yards and surrounding businesses to continue critical operations in case of a major power outage. In addition, staff recommends allocating $4.8 million to the LiNC project and approving the attached resolution required by the California Department of Transportation (Attachment E). The LiNC project will construct medians and bulb-outs to promote efficient vehicular travel and enhance pedestrian safety. Water and Wastewater Funds Staff recommends appropriating $2.2 million in Water and Wastewater Funds for the Water Resources Tenant Improvements at the City Yards and Roof and HVAC repairs at the Arcadia Water Treatment Plant (AWTP). The tenant improvement project will relocate and construct a new bulk material storage, decant area, laydown, and equipment storage at the City Yards to support operations in the Water Resources Division. Relocating the storage area away from the homes on the east side of the City Yards would minimize noise and aesthetic impacts to residents. The roof and HVAC repairs at the AWTP will prevent water leaks in the administration building, laboratory, and control building. Amendment of Fiscal Policy to Pay Down Unfunded Pension Liabilities over a 15 Year Period 11.A Packet Pg. 1148 15 of 17 Following Council’s direction at its March 11, 2023 Workshop, this report includes a recommended action to amend the City’s Fiscal Policy to allow for the suspension of the accelerated paydown of the City’s unfunded pension liability from FY 2022-23 to FY 2027-28 or later, pending restoration of City services and maintenance budgets and reserves. As noted in the March 11, 2023 staff report, Council had suspended these payments in May 2020, with a planned resumption in FY 2022-23. While paying down unfunded liabilities at an accelerated rate is a prudent fiscal management tool, mitigating future year interest costs, the City needs to weigh this long-term fiscal management tool against the current state of our community services and our reserves. An allocation of $2.5 million in General Funds could otherwise be used to restore City services in key areas to deliver critical services and new programs that support the City’s work in economic and community revitalization, racial equity and social diversity, and sustainability. Acceptance of Grant Awards Justice Assistance Grant (JAG) 2022 - $51,173 The JAG program is a formula grant that provides funding to support a range of program areas including law enforcement. Santa Monica has been an annual recipient of varying amounts of Justice Department grant funds for the past twelve years. Santa Monica Police Department plans to leverage these funds for additional overtime operations for special details, mainly targeting analysis of crime patterns, that reduce crime and keep neighborhoods safe.  Without the JAG funds, the opportunity to respond to unanticipated neighborhood crime and public safety concerns is reduced. Justice Assistance 2022 Bulletproof Vest Partnership (BVP) Grant - $34,497 The US Department of Justice, Bureau of Justice Assistance awarded the Santa Monica Police Department a two-year grant as part of the 2022 BVP grant program. This grant would reimburse SMPD for 50 percent of the cost of approximately 70 replacement bulletproof vests purchased under the program. Bulletproof vests are an important tool for keeping officers safe in the field.  Bulletproof vests are on a five-year replacement 11.A Packet Pg. 1149 16 of 17 cycle because of the degradation of the Kevlar from repetitive use. These funds will support the purchase of vests through 2024.   Environmental Review The FY 2022-23 Midyear Budget is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The Midyear Budget is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” Therefore, it can be seen with certainty that actions would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA. Past Council Actions Meeting Date Description 06/28/22 (Attachment F) Adoption of the Second Year of the FY 2021-23 Biennial Budget, Adoption of the First Year and Approval of the Second Year of the FY 2022-24 Biennial Capital Improvement Program Budget 03/11/23 (Attachment H) 2023 Council Workshop to Select Council Priorities and Provide Direction on the Fiscal Year 2023-2025 Budget Financial Impacts and Budget Actions Recommended FY 2022-23 midyear budget adjustments result in: • Revenues: Approximately $21.9 million increase in the General Fund and $42.0 million increases in all Other Funds, for a combined $63.9 million net increase to the citywide revenue budget. • Expenditures: Approximately $11.8 million increase in the General Fund and $21.1 million decrease in all Other Funds, for a net combined $32.9 million increase throughout the citywide expenditure budget. 11.A Packet Pg. 1150 17 of 17 • FTEs: The combined midyear staffing adjustments in all funds result in a net increase of 8.2 permanent FTE positions (7.2 in the General Fund) and deletion of 4.7 as-needed FTE positions (4.3 in the General Fund). Details of FY 2022-23 midyear adjustments are in Attachment A. Prepared By: Oscar Santiago, Budget Manager Approved Forwarded to Council Attachments: A. Attachment A - Budget Adjustments FY 2022-23 B. Attachment B - Salary Resolution C. Attachment C - Position and Classification Changes D. Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project E. Attachment E - Resolution re State and Federal Aid Funded Projects F. Attachment F - June 28, 2022 Staff Report (Web Link) G. Attachment G - Council Priorities H. Attachment H - 2023 Council Workshop to Select Council Priorities and Provide Direction on the Fiscal Year 2023-2025 Budget (Web Link) I. Written Comments J. PowerPoint Presentation 11.A Packet Pg. 1151 ATTACHMENT A Adopted Budget Year to Date Approved Appropriations Approved Revised Budget before Midyear Midyear Appropriations Revised Budget after Midyear Total Operating Budget 643,177,141 25,732,745 668,909,886 15,695,695 684,605,581 Total Capital Budget 90,161,475 8,259,994 98,421,469 17,212,600 115,634,069 Citywide Budget Total 733,338,616 33,992,739 767,331,355 32,908,295 800,239,650 Fund Adopted Budget Year to Date Approved Appropriations (A) Approved Revised Budget before Midyear Midyear Appropriations Revised Budget after Midyear General Fund 380,259,557 15,346,148 395,605,705 11,614,317 407,220,022 Airport Fund 9,941,159 126,163 10,067,322 264,634 10,331,956 Beach Fund 15,978,470 300,630 16,279,100 630,312 16,909,412 Big Blue Bus 79,832,890 3,988,779 83,821,669 365,490 84,187,159 Cemetery Fund 1,925,178 163,856 2,089,034 77,821 2,166,855 Citizens Option for Public Safety Fund 104,858 - 104,858 - 104,858 Clean Beaches/Ocean Parcel Tax Fund 3,528,995 - 3,528,995 8,374 3,537,369 Community Broadband Fund 2,795,742 112,510 2,908,252 (442,106) 2,466,146 Community Development Block Grants (CDBG) Fund 448,333 - 448,333 - 448,333 Gas Tax Fund 2,686,281 - 2,686,281 - 2,686,281 Housing Authority Fund 26,845,024 88,607 26,933,631 518,145 27,451,776 Local Return Fund 1,232,538 - 1,232,538 - 1,232,538 Low/Mod Income Housing Asset Fund 372,657 - 372,657 - 372,657 Miscellaneous Grants Fund 834,047 3,595,540 4,429,587 2,320,045 6,749,632 Parking Authority Fund 900 - 900 - 900 Pier Fund 3,974,588 165,594 4,140,182 625,240 4,765,422 Resource Recovery & Recycling Fund 28,849,741 850,197 29,699,938 162,171 29,862,109 Self-insurance, Bus Fund 3,466,949 - 3,466,949 - 3,466,949 Self-insurance, Comprehensive Fund 6,226,993 - 6,226,993 - 6,226,993 Self-insurance, Risk Management Administration Fund 5,558,189 44,391 5,602,580 276,452 5,879,032 Self-insurance, Workers' Compensation Fund 14,412,574 - 14,412,574 - 14,412,574 Special Revenue Source Fund (2,612,212) 100,000 (2,512,212) (1,074,615) (3,586,827) Stormwater Management Fund 1,321,749 - 1,321,749 - 1,321,749 Tenant Ownership Rights Charter Agreement (TORCA) Fund 92,268 - 92,268 - 92,268 Vehicle Management Fund 7,681,659 203,448 7,885,107 41,809 7,926,916 Wastewater Fund 17,551,340 233,922 17,785,262 (27,139) 17,758,123 Water Fund 29,866,674 412,960 30,279,634 334,745 30,614,379 Operating Budget Total 643,177,141 25,732,745 668,909,886 15,695,695 684,605,581 Fund Adopted Budget Year to Date Approved Appropriations (B) Approved Revised Budget before Midyear Midyear Appropriations (C) Revised Budget after Midyear General Fund 13,271,604 13,271,604 212,600 13,484,204 Airport Fund 12,646,868 12,646,868 12,646,868 Beach Fund 2,080,995 2,080,995 2,080,995 Big Blue Bus 7,376,550 4,077,128 11,453,678 11,453,678 Cemetery Fund 244,333 244,333 244,333 Clean Beaches/Ocean Parcel Tax Fund 800,000 800,000 800,000 Community Development Block Grants (CDBG) Fund 925,700 925,700 925,700 Gas Tax Fund 2,200,000 2,200,000 2,200,000 Housing Authority Fund 12,371 12,371 12,371 Information Technology Replacement & Services Fund 2,835,900 2,835,900 2,835,900 Local Return Fund 3,208,000 3,208,000 3,208,000 Miscellaneous Grants Fund 4,125,838 286,948 4,412,786 14,800,000 19,212,786 Pier Fund 4,738,861 4,738,861 4,738,861 Resource Recovery & Recycling Fund 4,566,586 4,566,586 4,566,586 Self-insurance, Risk Management Administration Fund 34,148 34,148 34,148 SCAQMD AB 2766 Fund 652,000 652,000 652,000 Special Revenue Source Fund 959,900 3,477,758 4,437,658 4,437,658 Vehicle Management Fund 6,292,362 6,292,362 6,292,362 Wastewater Fund 8,523,001 265,580 8,788,581 450,000 9,238,581 Water Fund 14,666,458 152,580 14,819,038 1,750,000 16,569,038 Capital Budget Total 90,161,475 8,259,994 98,421,469 17,212,600 115,634,069 Notes: B CIP appropriations approved by Council on 7/26/22 (items 5-B and 5-C), 8/23/22 (item 5-A), 1/24/23 (item 5-B), and 2/28/23 (item 5-B and 5-E) C Proposed CIP midyear appropriation in the General Fund will be offset by the use of one-time CIP savings. FY 2022-23 Expenditure Budget Summary By Fund Operating Budget Detail by Fund Capital Budget Detail by Fund A Operating Budget appropriations approved by Council on 6/28/22 (items 5-B and 5-I), 7/12/22 (item 5-I), 7/26/22 (items 5-F ), 8/23/22 (items 5-D and 5-P ), 8/24/22 (item 11-A ) 9/13/22 (item 5-C), 9/27/22 (item 5-B and 5-E), 11/15/22 (item 5-I), 12/13/22 (items 5-M and 5-N), 1/24/23 (items 5-B and 5-F), 2/14/23 (item 5-B), 2/28/23 (item 5- G), 3/21/23 (item 5-A), and reappropriation of grant funding approved on 3/8/22 (item 3-E) April 11, 2023 A-1 11.A.a Packet Pg. 1152 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) GENERAL FUND (01) Adjustment primarily reflects reduced plan check and zoning revenues driven by the interim zoning ordinance and plan check streamlining enacted to facilitate economic recovery, resulting in fewer projects requiring permit and zoning review. The reductions are partially offset by increased percentage rent from businesses that lease properties owned by the City, reflecting earlier than anticipated economic recovery.(41,844)$ TOTAL COMMUNITY DEVELOPMENT REVENUE ADJUSTMENTS (41,844)$ Adjustment reflects increase in Community Recreation revenues primarily from the restoration of Santa Monica College (SMC) classes and permit group hours and the easing of lane capacity limits at SM Swim Center; higher tennis participation; and a surge of field/track permit requests beyond pre-pandemic levels.572,200$ Adjustment primarily reflects increased enrollment in City programs due to fewer afterschool options offered by schools. The increase in program revenue is partially offset by a reduction to budgeted revenue in the Human Services Division for Ken Edwards Center lease payments due to new lease terms.74,227$ TOTAL COMMUNITY SERVICES REVENUE ADJUSTMENTS 646,427$ FINANCE Adjustment primarily reflects one-time State reimbursement for SB 90 claims from prior years (2002 to 2013).2,213,972$ TOTAL FINANCE REVENUE ADJUSTMENTS 2,213,972$ FIRE Adjustment primarily reflects decreases in reimbursements from other agencies due to fewer wildfires requiring mutual aid deployments, and to dealyed collection of the Paramedic Advanced Life Support (ALS) Fee for Basic Life Support (BLS) Transports by the contracted Ambulance company, pending contract renegotiation. (460,800)$ TOTAL FIRE REVENUE ADJUSTMENTS (460,800)$ POLICE Adjustment primarily reflects one-time revenue, received this year, from the reconciliation of prior year alarm permit and false alarm fees. The increase is partially offset by decreased filming revenue due to fewer than projected filming assignments.148,494$ TOTAL POLICE REVENUE ADJUSTMENTS 148,494$ DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET REVENUE BUDGET ADJUSTMENTS COMMUNITY DEVELOPMENT COMMUNITY SERVICES April 11, 2023 A-2 11.A.a Packet Pg. 1153 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET PUBLIC WORKS Adjustment primarily reflects smaller and fewer utility excavation and wireless installation projects, due in part to wireless carriers postponing replacement and new installations pending the availability of new C-band wireless equipment, which was approved for phased roll out by the Federal Communications Commission (FCC). The reduction is partially offset by increases in EV charging fees based on anticipated usage.(504,711)$ TOTAL PUBLIC WORKS REVENUE ADJUSTMENTS (504,711)$ DEPARTMENT OF TRANSPORTATION Adjustment reflects lower parking revenue due to shifts from metered parking, which reach capacity during peak hours, to parking garages, which offer free parking for short stays; lower sales of monthly parking permits in favor of discounted parking validations as downtown businesses close, downsize, or offer more teleworking options; and less business activity than projected. The decrease in revenue is partially offset by decreased expenditures in parking management services.(683,400)$ Adjustment primarily reflects increased valet parking revenues from certain service sector businesses resuming operations.203,869$ TOTAL DEPARTMENT OF TRANSPORTATION REVENUE ADJUSTMENTS (479,531)$ NON-DEPARTMENTAL Adjustment reflects increased reimbursement to the General Fund from other funds for general government administrative support services provided to all non-General Fund operations, as a result of the revised cost allocation plan.2,854,880$ Reflects adjustments to various revenues, including sales tax, transaction and use tax, utility users tax, hotel tax, parking facility tax, property tax, business license, and other sources, to align budget with revised projections based on year-to-date trends. Further detail related to tax revenue projection and trends was included in the March 11, 2023 Council Workshop staff report.17,494,733$ TOTAL NON-DEPARTMENTAL REVENUE ADJUSTMENTS 20,349,613$ 21,871,620$ AIRPORT FUND (57) Public Works Adjustment reflects greater than anticipated revenue from event activity and a new agreement with Santa Monica College (SMC), partially offset by reduced demand for aviation fuel and fewer noise abatement violations.116,000$ 116,000$ TOTAL AIRPORT FUND REVENUE ADJUSTMENTS NON-GENERAL FUNDS TOTAL GENERAL FUND REVENUE ADJUSTMENTS April 11, 2023 A-3 11.A.a Packet Pg. 1154 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET BEACH FUND (11) COMMUNITY SERVICES Adjustment reflects an increase in event rental revenue from private events and higher concession and parking revenues at the Beach House as a result of expanded programming.277,553$ COMMUNITY DEVELOPMENT Adjustment primarily reflects a reduction in parking revenues due to setbacks in the implementation of a projected rate increase pending California Coastal Commission (CCC) approvals, a key step in the process to implement a rate increase.(857,905)$ (580,352)$ BIG BLUE BUS (60) DEPARTMENT OF TRANSPORTATION Adjustment reflects increased revenues to align with final funding allociations from LA Metro, anticipated receipt of reimbursement revenues for bus purchases, and higher rental income from property management of the Bergamot Station Arts Center.18,118,478$ 18,118,478$ CITIZEN'S OPTION FOR PUBLIC SAFETY (COPS) FUND (22) POLICE Adjustment reflects increase to align the Citizen’s Option for Public Safety (COPS) Program funds allocation with historical actuals.20,000$ TOTAL COMMUNITY BROADBAND FUND REVENUE ADJUSTMENTS 20,000$ GAS TAX FUND (26) PUBLIC WORKS Adjustment reflects decreased gas tax revenue based on California Department of Finance projections, issued annually in January, which reflects lower fuel consumption than estimated in January 2022.(202,466)$ TOTAL GAS TAX FUND REVENUE ADJUSTMENTS (202,466)$ HOUSING AUTHORITY FUND (12) COMMUNITY SERVICES Adjustment reflects an increase primarily in higher Section 8 voucher utilization offset by a decline in rental subsidy revenue related to the Emergency Housing Voucher program.73,627$ 73,627$ LOCAL RETURN FUND (27) PUBLIC WORKS Adjustment reflects increased Local Return revenue based on revised Metro funding marks.787,723$ TOTAL SCAQMD AB 2766 FUND REVENUE ADJUSTMENTS 787,723$ TOTAL BIG BLUE BUS REVENUE ADJUSTMENTS TOTAL HOUSING AUTHORITY FUND REVENUE ADJUSTMENTS TOTAL BEACH FUND REVENUE ADJUSTMENTS April 11, 2023 A-4 11.A.a Packet Pg. 1155 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET MISCELLANEOUS GRANTS FUND (20) COMMUNITY SERVICES Adjustment reflects the receipt of one-time funding from the United States Department of Housing and Urban Development (HUD) under the HOME Investment Partnerships – American Rescue Plan (HOME-ARP) to provide eviction prevention services including legal services, case management, behavioral health care, and financial assistance, as approved by City Council on 9/13/22.2,220,124$ POLICE Adjustment reflects grant awards from the U.S. Department of Justice for the 2022 Bulletproof Vest Partnership Grant to support the replacement of bulletproof vests and the 2022 Justice Assistance Grant for the "Overtime Operations to Keep Neighborhoods Safe" program. 85,670$ PUBLIC WORKS Adjustment reflects the annual award of the Used Oil Pay Program funds for public education, events and collection related to used oil recycling.14,251$ Adjustment reflects the receipt of funds from the State's AB-179 Budget Act of 2022 legislation, authorizing two earmarks to the City for the City Yards Modernization Microgrid and the Lincoln Neighborhood Corridor Streetscape (LiNC) projects.14,800,000$ DEPARTMENT OF TRANSPORTATION Adjustment reflects an overall increase in reimbursement revenues relating to various projects that are expected to be completed by the end of June 2023.2,252,117$ 19,372,162$ PIER FUND (53) COMMUNITY DEVELOPMENT Adjustment reflects a reduction in parking revenues due to setbacks in the implementation of a projected rate increase pending California Coastal Commission (CCC) approvals, a key step in the process to implement a rate increase as well as longer than anticipated parking deck closure, offset by more event activations and greater than projected lease revenues.72,775$ 72,775$ RESOURCE RECOVERY & RECYCLING FUND (54) PUBLIC WORKS Adjustment reflects reduced revenue from collections fees resulting from a later than anticipated implementation of rate changes, now projected to take effect in the fall of 2023. (2,079,232)$ TOTAL RRR FUND REVENUE ADJUSTMENTS (2,079,232)$ SELF-INSURANCE, GENERAL LIABILITY/AUTO FUND (72) NON-DEPARTMENTAL Adjustment reflects a one-time contribution from the General Fund to the General Liability Fund to pay for a settlement claim brought against the City.3,100,000$ 3,100,000$ TOTAL MISCELLANEOUS GRANTS FUND REVENUE ADJUSTMENTS TOTAL PIER FUND REVENUE ADJUSTMENTS TOTAL SELF-INSURANCE, GENERAL LIABILITY/AUTO FUND REVENUE ADJUSTMENTS April 11, 2023 A-5 11.A.a Packet Pg. 1156 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET SPECIAL REVENUE SOURCE FUND (10) COMMUNITY DEVELOPMENT Adjustment reflects the initial payment received from Providence St. John's development agreement restricted for Santa Monica behavioral health initiatives.5,000,000$ COMMUNITY SERVICES Adjustment reflects a decrease to align budget with the annual entitlement funding that will received from the State under the Permanent Local Housing Allocation Program. The funds are used for the production of affordable housing. (136,879)$ DEPARTMENT OF TRANSPORTATION Adjustment reflects an increase in transportation impact fees due to a rebound in residential and commercial development activity.1,500,000$ 6,363,121$ VEHICLE MANAGEMENT FUND (70) PUBLIC WORKS Adjustment primarily reflects increased vehicle maintenance revenue, which is paid by other City departments and funds. This reflects increased labor costs associated with revised salary and benefit changes as a result of revised labor agreements.871,719$ 871,719$ WASTEWATER FUND (51) PUBLIC WORKS Adjustment primarily reflects decreased sewer service charges due to water use reduction, as mandated by the City's Water Conservation Ordinance. (571,737)$ (571,737)$ WATER FUND (50) PUBLIC WORKS Adjustment primarily reflects decreased water sales due to water use reduction mandated by the City's Water Conservation Ordinance. (3,413,084)$ TOTAL WATER FUND REVENUE ADJUSTMENTS (3,413,084)$ TOTAL NON-GENERAL FUND REVENUE ADJUSTMENTS 42,048,734$ GRAND TOTAL - ALL FUND REVENUE ADJUSTMENTS 63,920,354$ EXPENDITURE BUDGET ADJUSTMENTS GENERAL FUND (01) CITY COUNCIL This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.13,962$ TOTAL CITY COUNCIL EXPENDITURE ADJUSTMENTS 13,962$ TOTAL WASTEWATER FUND REVENUE ADJUSTMENTS TOTAL VEHICLE MANAGEMENT FUND REVENUE ADJUSTMENTS TOTAL SPECIAL REVENUE SOURCE FUND REVENUE ADJUSTMENTS April 11, 2023 A-6 11.A.a Packet Pg. 1157 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET CITY MANAGER This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.446,270$ This net zero adjustment reflects the transfer of 1.0 FTE Communications and Marketing Coordinator from the Community Services Department to the City Manager's Office.63,962$ TOTAL CITY MANAGER EXPENDITURE ADJUSTMENTS 510,232$ CITY ATTORNEY This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget. $ 542,804 Adjustment is a budget correction to program funds for the second year of the two-year pilot program, as approved by Council on January 26, 2021. Funds are used to provide tenant counseling services to assist residents at risk of being evicted from their homes. $ 120,000 TOTAL CITY ATTORNEY EXPENDITURE ADJUSTMENTS 662,804$ RECORDS & ELECTION SERVICES This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.91,510$ TOTAL RECORDS & ELECTION SERVICES EXPENDITURE ADJUSTMENTS 91,510$ COMMUNITY DEVELOPMENT This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.699,920$ Adjustment reflects additional funding to continue contracted security services at the Pier in support of the DART team. This appropriation will access Measure CS funds received in FY 2022-23. At its March 11, 2023 meeting, Council preliminarily approved ongoing funding for contracted security services at the Pier from Measure CS funds.111,462$ TOTAL COMMUNITY DEVELOPMENT EXPENDITURE ADJUSTMENTS 811,382$ COMMUNITY SERVICES This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.605,888$ April 11, 2023 A-7 11.A.a Packet Pg. 1158 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET This net zero adjustment reflects the transfer of 1.0 FTE Communications and Marketing Coordinator to the City Manager's Office from the Community Services Department.(63,962)$ Adjustment reflects the prorated FY 2022-23 costs associated with adding 3.75 Community Services Program Coordinator and 3.45 Community Services Program Specialist positions, offset by the deletion of 4.27 As- Needed FTEs required to meet the staffing ratios, per the City’s Child Protection protocols, for youth programs. This item was preliminarily approved as one of the uses for the proposed reallocation of pension pay- down funding by Council at the 2023 Council Workshop on March 11, 2023. 91,642$ Adjustment reflects a reduction to the City's maintenance and utility costs due to new lease terms with WISE and Healthy Aging, which transfers the responsibility for all utilities and most maintenance needs to the agency.(53,000)$ TOTAL COMMUNITY SERVICES EXPENDITURE ADJUSTMENTS 580,568$ FINANCE This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.428,326$ TOTAL FINANCE EXPENDITURE ADJUSTMENTS 428,326$ FIRE This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget. $ 4,984,412 Adjustment reflects the MOU changes to the Fire Executive Management Association, presented separately to Council on April 11, 2023. $ 90,635 TOTAL FIRE EXPENDITURE ADJUSTMENTS 5,075,047$ HUMAN RESOURCES This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.238,900$ This net zero adjustment reflects the transfer of 1.0 FTE Volunteer Coordinator position from the Human Resources Department to the Finance Department, Risk Management Administration division (Risk Management Administration Fund).(119,168)$ TOTAL HUMAN RESOURCES EXPENDITURE ADJUSTMENTS 119,732$ April 11, 2023 A-8 11.A.a Packet Pg. 1159 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET INFORMATION SERVICES This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget. $ 393,415 TOTAL INFORMATION SERVICES EXPENDITURE ADJUSTMENTS 393,415$ LIBRARY This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.359,658$ TOTAL LIBRARY EXPENDITURE ADJUSTMENTS 359,658$ POLICE This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.4,172,899$ Adjustment reflects compensation adjustments related to terms in the Santa Monica Police Officers Association (POA) Memorandum of Understanding, which requires base salaries of POA employees be adjusted to cause the ”net pay” of the Police Officer job classification to be the second highest in comparison local police departments.1,957,214$ Adjustment reflects a correction to the Police Department’s budget for a compensation-related item that was inadvertently omitted during budget development.1,682,048$ TOTAL POLICE EXPENDITURE ADJUSTMENTS 7,812,161$ PUBLIC WORKS This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.1,825,123$ Adjustment reflects the one-time costs to replace copper wire on City streetlights, as a result of a recent rash of copper wire thefts.443,963$ TOTAL PUBLIC WORKS EXPENDITURE ADJUSTMENTS 2,269,086$ DEPARTMENT OF TRANSPORTATION This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget. $ 302,725 Adjustment reflects decrease in the parking revenue sharing agreement payment for Parking Structures 7 & 8, reflecting decreased parking revenues. $ (104,647) TOTAL DEPARTMENT OF TRANSPORTATION EXPENDITURE ADJUSTMENTS 198,078$ April 11, 2023 A-9 11.A.a Packet Pg. 1160 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET NON-DEPARTMENTAL This is a net zero adjustment, which allocates funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside to be appropriated during the midyear budget.(15,105,812)$ Adjustment reflects a payment from the General Fund to the General Liability Fund for a legal settlement payment of a claim brought against the City.3,100,000$ Adjustment reflects increased funding allocation to SMMUSD due to projected increases in Transaction and Use Tax revenues.2,450,000$ Adjustment reflects increased transfer to the Special Revenue Source Fund related to Measure GSH to be used for affordable housing, due to projected increases in Transaction and Use Tax revenues.1,225,000$ This net zero adjustment transfers existing funds for the 1.0 FTE Volunteer Coordinator position from the General Fund to the Risk Management Administration Fund, where the position will now be located.119,168$ Adjustment reflects the elimination of a transfer from the Community Broadband Fund to the General Fund. The transfer was established during the restructure to help the General Fund recover from revenue losses related to the pandemic. The elimination of this transfer will help ensure that CBB has sufficient funds to address critical operational needs.500,000$ TOTAL NON-DEPARTMENTAL EXPENDITURE ADJUSTMENTS (7,711,644)$ CAPITAL IMPROVEMENT PROGRAM (CIP) Public Works Adjustment reflects use of one-time CIP budget savings to fund the Occupational Safety and Health Administration (OSHA)- compliant fall protection plan which includes construction of physical barriers, installation of fall protection systems, and miscellaneous other engineering solutions to ensure safety for individuals required to work on rooftops. Locations include Fire Stations 2 and 3, Ken Edwards Center (KEC), and the Public Safety Facility (PSF).212,600$ TOTAL CAPITAL IMPROVEMENT PROGRAM EXPENDITURE ADJUSTMENTS 212,600$ TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS 11,826,917$ GENERAL FUND - EXPENDITURE OFFSETS Use of Reserves One-time CIP budget savings to fund the Occupational Safety and Health Administration (OSHA)- compliant fall protection plan which includes construction of physical barriers, installation of fall protection systems, and miscellaneous other engineering solutions to ensure safety for individuals required to work on rooftops. Locations include Fire Stations 2 and 3, Ken Edwards Center (KEC), and the Public Safety Facility (PSF).(212,600)$ (212,600)$ 11,614,317$ TOTAL GENERAL FUND EXPENDITURE OFFSETS) NET GENERAL FUND EXPENDITURE ADJUSTMENTS April 11, 2023 A-10 11.A.a Packet Pg. 1161 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET NON-GENERAL FUNDS AIRPORT (57) FUND Public Works This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.126,165$ Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.264,634$ Non-Departmental This is a net zero adjustment, which allocates funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside to be appropriated during the midyear budget.(126,165)$ TOTAL AIRPORT FUND EXPENDITURE ADJUSTMENTS 264,634$ BEACH (11) FUND Community Development Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.267,312$ Community Services This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.56,418$ Adjustment reflects reduced reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.(31,260)$ Public Works This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.244,212$ Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.394,260$ Non-Departmental This is a net zero adjustment, which allocates funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside to be appropriated during the midyear budget.(300,630)$ TOTAL BEACH FUND EXPENDITURE ADJUSTMENTS 630,312$ April 11, 2023 A-11 11.A.a Packet Pg. 1162 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET BIG BLUE BUS (60) Department of Transportation This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.3,919,352$ Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.320,511$ Adjustment reflects the addition of 1.0 FTE Principal Administrative Analyst, partially offset by the deletion of 1.0 FTE Senior Transit Operations Analyst to better align the position with the scope of responsibilities and improve operational efficiencies; as well as the addition of 1.0 FTE Staff Assistant III, partially offset by the deletion of 0.5 FTE as-needed Staff Assistant III position to provide full time support in the area of recruitment and retention efforts.44,979$ Non-Departmental This is a net zero adjustment, which allocates funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside to be appropriated during the midyear budget.(3,919,352)$ TOTAL BIG BLUE BUS FUND EXPENDITURE ADJUSTMENTS 365,490$ CEMETERY (59) FUND Public Works This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.58,128$ Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.77,821$ Non-Departmental This is a net zero adjustment, which allocates funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside to be appropriated during the midyear budget.(58,128)$ TOTAL CEMETERY FUND EXPENDITURE ADJUSTMENTS 77,821$ CLEAN BEACHES & OCEAN PARCEL TAX (16) FUND Non-Departmental Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.8,374$ TOTAL CLEAN BEACHES & OCEAN PARCEL TAX FUND EXPENDITURE ADJUSTMENTS 8,374$ April 11, 2023 A-12 11.A.a Packet Pg. 1163 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET COMMUNITY BROADBAND (55) FUND Information Services This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.42,390$ Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.57,894$ Non-Departmental This is a net zero adjustment, which allocates funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside to be appropriated during the midyear budget.(42,390)$ Adjustment reflects the elimination of the transfer to the General Fund. The transfer was established during the restructure to help the General Fund recover from revenue losses related to the pandemic. The elimination of this transfer will help ensure that CBB has sufficient funds to address critical operational needs.(500,000)$ TOTAL COMMUNITY BROADBAND FUND EXPENDITURE ADJUSTMENTS (442,106)$ HOUSING AUTHORITY (12) FUND This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.88,607$ Adjustment reflects an increase primarily in Section 8 voucher utilization offset by a decline in Emergency Housing Voucher payments.518,145$ Non-Departmental This is a net zero adjustment, which allocates funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside to be appropriated during the midyear budget.(88,607)$ TOTAL HOUSING AUTHORITY FUND EXPENDITURE ADJUSTMENTS 518,145$ MISCELLANEOUS GRANTS (20) FUND Community Services Adjustment reflects the required appropriation of funds related to the allocation of one-time funding from HUD under the HOME Investment Partnerships – American Rescue Plan (HOME-ARP) to provide eviction prevention services including legal services, case management, behavioral health care, and financial assistance This item was approved by City Council on 9/13/22.2,220,124$ Police Adjustment reflects the award of the 2022 Bulletproof Vest Partnership Grant to support the replacement of bulletproof vests and the 2022 Justice Assistance Grant for Project "Overtime Operations to Keep Neighborhoods Safe" from the U.S. Department of Justice. 85,670$ Community Services April 11, 2023 A-13 11.A.a Packet Pg. 1164 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET Public Works Adjustment reflects the annual award of the Used Oil Pay Program funds for public education, events and collection related to used oil recycling.14,251$ Capital Improvement program Adjustment reflects use of State funds earmarked for the City Yards Modernization Microgrid project, which will integrate a small, localized energy grid (microgrid) consisting of onsite renewable generation and energy storage based at the City Yards and surrounding city properties.10,000,000$ Adjustment reflects use of State funds earmarked for the City's Lincoln Neighborhood Corridor Streetscape (LiNC) project, which will construct medians and bulbouts to promote efficient vehicular travel and enhance pedestrian safety. 4,800,000$ TOTAL MISCELLANEOUS GRANTS FUND EXPENDITURE ADJUSTMENTS 17,120,045$ PIER (53) FUND Community Development This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.15,733$ Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.499,582$ Police This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.71,805$ Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.9,405$ Public Works This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.36,510$ Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.116,253$ Non-Departmental This is a net zero adjustment, which allocates funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside to be appropriated during the midyear budget.(124,048)$ 625,240$ TOTAL PIER FUND EXPENDITURE ADJUSTMENTS April 11, 2023 A-14 11.A.a Packet Pg. 1165 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET RESOURCE RECOVERY AND RECYCLING (54) FUND Public Works This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.775,819$ Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.162,171$ Non-Departmental This is a net zero adjustment, which allocates funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside to be appropriated during the midyear budget.(775,819)$ TOTAL RESOURCE RECOVERY & RECYCLING FUND EXPENDITURE ADJUSTMENTS 162,171$ RISK MANAGEMENT ADMINISTRATION (75) FUND Finance This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.44,391$ Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.276,452$ Net zero adjustment reflects the transfer of 1.0 FTE Volunteer Coordinator position from the Human Resources Department (General Fund) to the Finance Department, Risk Management Administration Division.119,168$ Non-Departmental This is a net zero adjustment, which allocates funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside to be appropriated during the midyear budget.(44,391)$ Net zero adjustment reflects the transfer of 1.0 FTE Volunteer Coordinator position from the Human Resources Department (General Fund) to the Finance Department, Risk Management Administration Division.(119,168)$ TOTAL RISK MANAGEMENT - ADMIN FUND EXPENDITURE ADJUSTMENTS 276,452$ SPECIAL REVENUE SOURCE (10) FUND Department of Transportation Adjustment reflects a correction to appropriate funds for the annual use of Transportation Impact Fees for the Transportation Demand Transportation Management Organization (TMO) agreement. While the item was approved by Council on March 2022, funds were not encumbered at that time; therefore a FY 2022-23 appropriation is required. 150,385$ April 11, 2023 A-15 11.A.a Packet Pg. 1166 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET Non-Departmental Adjustment reflects increased transfer-in to the Special Revenue Source Fund related to Measure GSH to be used for affordable housing, due to projected increases in Transaction and Use Tax revenues. (1,225,000)$ TOTAL SPECIAL REVENUE SOURCE FUND EXPENDITURE ADJUSTMENTS (1,074,615)$ VEHICLE MANAGEMENT (70) FUND Public Works This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.199,635$ Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.41,809$ Non-Departmental This is a net zero adjustment, which allocates funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside to be appropriated during the midyear budget.(199,635)$ TOTAL VEHICLE MANAGEMENT FUND EXPENDITURE ADJUSTMENTS 41,809$ WASTEWATER (51) FUND Public Works This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.210,042$ Adjustment reflects reduced reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.(27,139)$ Non-Departmental This is a net zero adjustment, which allocates funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside to be appropriated during the midyear budget.(210,042)$ Capital Improvement Program Adjustment reflects costs associated with the Water Resources Tenant Improvements at the City Yards to minimize noise and aesthetic impacts to residents.450,000$ TOTAL WASTEWATER FUND EXPENDITURE ADJUSTMENTS 422,861$ WATER (50) FUND Public Works This is a net zero adjustment to allocate funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside in non-departmental to be appropriated during the midyear budget.412,960$ April 11, 2023 A-16 11.A.a Packet Pg. 1167 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT A Fund/Department Description FY 2022-23 Increase / (Decrease) DETAIL OF PROPOSED REVISIONS TO FY 2022-23 BUDGET Adjustment reflects increased reimbursement to the General Fund for general government administrative support services provided to all non- General Fund operations, as a result of the revised cost allocation plan.334,745$ Non-Departmental This is a net zero adjustment, which allocates funds to all departments’ budgets as a result of approved labor agreements. Funding for this adjustment was set aside to be appropriated during the midyear budget.(412,960)$ Capital Improvement Program Adjustment reflects costs associated with the Water Resources Tenant Improvements at the City Yards to minimize noise and aesthetic impacts to residents.1,050,000$ Adjustment reflects costs associated with Roof and HVAC repairs at the Arcadia Water Treatment Plant (AWTP) to prevent water leaks in the administration building, laboratory, and control building.700,000$ TOTAL WATER FUND EXPENDITURE ADJUSTMENTS 2,084,745$ 21,081,378$ TOTAL GENERAL FUND REVENUE ADJUSTMENTS 21,871,620$ TOTAL NON-GENERAL FUND REVENUE ADJUSTMENTS 42,048,734$ GRAND TOTAL ALL FUNDS REVENUE ADJUSTMENTS 63,920,354$ GENERAL FUND OPERATING EXPENDITURE ADJUSTMENTS 11,614,317$ GENERAL FUND CAPITAL EXPENDITURE ADJUSTMENTS 212,600$ TOTAL GENERAL FUND EXPENDITURE ADJUSTMENTS 11,826,917$ NON-GENERAL FUND OPERATING EXPENDITURE ADJUSTMENTS 4,081,378$ NON-GENERAL FUND CAPITAL EXPENDITURE ADJUSTMENTS 17,000,000$ TOTAL NON-GENERAL FUND EXPENDITURE ADJUSTMENTS 21,081,378$ GRAND TOTAL ALL FUNDS EXPENDITURE ADJUSTMENTS 32,908,295$ (212,600)$ -$ (212,600)$ NET GENERAL FUND EXPENDITURE ADJUSTMENTS 11,614,317$ 21,081,378$ 32,695,695$ GENERAL FUND - CAPITAL EXPENDITURE OFFSETS (One-Time Capital Savings) NET NON-GENERAL FUND EXPENDITURE ADJUSTMENTS SUMMARY - REVENUE BUDGET ADJUSTMENTS GRAND TOTAL FY 2022-23 ALL FUNDS - EXPENDITURE OFFSETS TOTAL NON-GENERAL FUND - EXPENDITURE OFFSETS NET NON-GENERAL FUND EXPENDITURE ADJUSTMENTS SUMMARY - EXPENDITURE BUDGET ADJUSTMENTS GRAND TOTAL FY 2022-23 ALL FUNDS EXPENDITURE ADJUSTMENTS, NET OF OFFSETS April 11, 2023 A-17 11.A.a Packet Pg. 1168 Attachment: Attachment A - Budget Adjustments FY 2022-23 [Revision 2] (5534 : FY 2022-23 Midyear Budget) ATTACHMENT B 1 City Council Meeting: April 11, 2023 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 THE FOLLOWING NEW OR EXISTING CLASSIFICATIONS: BACKGROUND INVESTIGATION OFFICER, FLEET MAINTENANCE SUPERINTENDENT, FLEET MAINTENANCE SUPERVISOR, GIS TECHNICIAN, HAZARDOUS MATERIALS SPECIALIST, INFORMATION SECURITY ANALYST, INVESTIGATIVE SPECIALIST, LEAD TRANSIT MECHANIC, MECHANIC I, MECHANIC II, MOTOR COACH OPERATOR TRAINEE, SENIOR MECHANIC, SWIM INSTRUCTOR/POOL LIFEGUARD, TRANSIT MECHANIC I, TRANSIT MECHANIC II, TRANSIT MECHANIC SUPERVISOR, TRANSIT VEHICLE MAINTENANCE SUPERINTENDENT, WASTEWATER COLLECTION WORKER III, WASTEWATER TREATMENT PLANT OPERATOR-IN-TRAINING, WASTEWATER TREATMENT PLANT OPERATOR I, AND WASTEWATER TREATMENT PLANT OPERATOR II 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 April 23, 2023, for the indicated classifications: Classification Salary Reason Background Investigation Officer $48.53/hour; Step 1 Equity adjustment Fleet Maintenance Superintendent $145,536/annual; Step 5 Equity adjustment Fleet Maintenance Supervisor $119,772/annual; Step 5 Equity adjustment GIS Technician $86,256/annual; Step 5 Restoration of classification Hazardous Materials Specialist $110,892/annual; Step 5 New classification Information Security Analyst $140,112/annual; Step 5 Equity adjustment Investigative Specialist $48.53/hour; Step 1 Equity adjustment Lead Transit Mechanic $104,148/annual; Step 5 Equity Adjustment Mechanic I $87,072/annual; Step 5 Equity adjustment Mechanic II $96,876/annual; Step 5 Equity adjustment Motor Coach Operator Trainee $21.53/hour; Step 1 Equity adjustment Senior Mechanic $104,148/annual; Step 5 Equity adjustment Swim Instructor/Pool Lifeguard $21.69/hour; Step 1 Equity adjustment Transit Mechanic I $87,072/annual; Step 5 Equity adjustment Transit Mechanic II $96,876/annual; Step 5 Equity adjustment Transit Mechanic Supervisor $119,772/annual; Step 5 Equity adjustment 11.A.b Packet Pg. 1169 Attachment: Attachment B - Salary Resolution (5534 : FY 2022-23 Midyear Budget) ATTACHMENT B 2 Transit Vehicle Maintenance Superintendent $145,536/annual; Step 5 Equity adjustment Wastewater Collection Worker III $90,228/annual; Step 5 New classification Wastewater Treatment Plant Operator-In-Training $85,944/annual; Step 5 New classification Wastewater Treatment Plant Operator I $98,832/annual; Step 5 Title change and equity adjustment Wastewater Treatment Plant Operator II $108,720/annual; Step 5 New classification 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: Douglas T. Sloan City Attorney 11.A.b Packet Pg. 1170 Attachment: Attachment B - Salary Resolution (5534 : FY 2022-23 Midyear Budget) POSITION AND CLASSIFICATION CHANGES ATTACHMENT C FUND DEPT FTE POSITION TITLE FUND DEPT FTE POSITION TITLE 01 CSD 1.0 Communications & Marketing Coordinator 01 CMO 1.0 Communications & Marketing Coordinator 1 Transfer - 01 CSD 3.8 Community Services Program Coordinator Add 3.8 01 CSD 1.8 Community Services Program Specialist 01 CSD 5.3 Community Services Program Specialist Add 3.5 01 Fire 1.0 Environmental & Safety Inspection Specialist 01 Fire 1.0 Hazardous Materials Specialist Add/Delete - 01 HR 1.0 Volunteer Coordinator 01 Finance 1.0 Volunteer Coordinator 1 Add/Delete - 01 PW 1.0 Urban Forest Coordinator 01 PW 1.0 Urban Forest Supervisor Add/Delete - 51 PW 2.0 Wastewater Collections Worker II 51 PW 2.0 Wastewater Collections Worker III 2 Add/Delete; reclassification - 51 PW 1.0 Wastewater Treatment Plant Operator 51 PW 1.0 Wastewater Treatment Plant Operator II 2 Add/Delete - 57 PW 1.0 Airport Maintenance Crew Leader 57 PW 1.0 Facilities Supervisor (Limited Term) 2, 3 Add/Delete - 57 PW 1.0 Maintenance Assistant 57 PW 1.0 Airport Maintenance Worker (Limited Term) 2, 3 Add/Delete - 60 DOT 1.0 Senior Transit Operations Analyst 60 DOT 1.0 Principal Administrative Analyst 2 Add/Delete - 60 DOT 1.0 Staff Assistant III 2 Add 1.0 PERMANENT EMPLOYEES TOTAL 8.2 FTE 01 CSD 4.0 CCS Leader 01 CSD 3.0 CCS Leader Add/Delete (1.0) 01 CSD 3.2 CCS Assistant Delete (3.2) 60 DOT 0.5 Staff Assistant III Delete (0.5) -4.7 FTE 3.5 FTEGRAND TOTAL DELETE ADD REASON NET FTE CHANGE TEMPORARY EMPLOYEES TOTAL 1 Position change has no net impact to the General Fund budget. 2 Cost of the position change will be offset by savings and/or the reallocation of budgeted funds within department budgets, resulting in a net zero impact to the budget. 3 Limited-term ending June 30, 2028. April 11, 2023 11.A.c Packet Pg. 1171 Attachment: Attachment C - Position and Classification Changes (5534 : FY 2022-23 Midyear Budget) ATTACHMENT D 1 City Council Meeting: April 11, 2023 Santa Monica, California RESOLUTION NO. ________ (CCS) (City Council Series) A RESOLUTION OF THE CITY OF SANTA MONICA APPROVING THE APPLICATION OF GRANT FUNDS FOR THE SANTA MONICA CITY YARDS MODERNIZATION MICROGRID PROJECT WHEREAS, the Legislature and Governor of the State of California have approved a grant for the Santa Monica City Yards Modernization Microgrid Project; and WHEREAS, the California Arts Council has been delegated the responsibility for the administration of the grant project, setting up necessary procedures entitled Designated Funding Grants Capital Outlay Procedural Guide (Procedural Guide), which are attached hereto and incorporated herein as Exhibit A; and WHEREAS, the California Arts Council requires a grantee to certify by resolution the approval of an application for grant funds before submission of said application of grant funds to the State of California; and WHEREAS, upon award, the City of Santa Monica, as grantee, will enter into a grant funding agreement with the State of California for the Santa Monica City Yards Modernization Project. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: 11.A.d Packet Pg. 1172 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) ATTACHMENT D 2 SECTION 1. The City Council authorizes the City to apply for grant funding for the Santa Monica City Yards Modernization Microgrid Project. SECTION 2. The City Council approves the acceptance of general fund allocation for local assistance for the Santa Monica City Yards Modernization Microgrid Project. SECTION 3. The City certifies that the City understands the assurances and certification in the Project Information Form. SECTION 4. The City certifies that the City will have sufficient funds to operate and maintain the Santa Monica City Yards Modernization Microgrid Project or will enter into an agreement with another entity to perform said operation and maintenance. SECTION 5. The City certifies that the City has reviewed and understands the General Provisions contained in the Project Agreement shown in the Procedural Guide. SECTION 6. The City authorizes the City Manager, or their designee, to conduct all negotiations, execute and submit all documents including, but not limited to the Project Information Form, agreements, payment requests and so on, which may be necessary for the completion of the Santa Monica City Yards Modernization Microgrid Project. SECTION 7. 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: _______________________ DOUGLAS SLOAN City Attorney 11.A.d Packet Pg. 1173 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) DESIGNATED FUNDING GRANTS Capital Outlay Procedural Guide ATTACHMENT D Exhibit A A-1 11.A.d Packet Pg. 1174 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) TABLE OF CONTENTS INTRODUCTION 3 GENERAL GRANT INFORMATION, TERMS AND REQUIREMENTS 4 PROJECT ADMINSTRATION 5 PROJECT INFORMATION PACKAGE CHECKLIST 6 WHAT TO SUBMIT- DETAILED INSTRUCTIONS 7 PROJECT INFORMATION FORM 9 PROJECT SUMMARY 10 AUTHORIZING RESOLUTION TEMPLATE 11 COST ESTIMATE FORM FOR DEVELOPMENT PROJECTS 12 PROJECT TIMELINE 13 PROPERTY DATA SHEET 14 PAYEE DATA RECORD 15 PAYMENT REQUEST INSTRUCTIONS 16 STATE AUDIT AND ACCOUNTING REQUIREMENTS 17 SAMPLE GRANT AGREEMENT 20 ATTACHMENT D Exhibit A A-2 11.A.d Packet Pg. 1175 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 3 INTRODUCTION This procedural guide governs the administration of local assistance appropriations made to the California Arts Council (Agency) for specified capital improvement projects. Enclosed are items that make up a Project Information Package, a grant agreement template, a resolution template, payment instructions and other resources. The completed Project Information Package provides a means to define projects for grant funding as well as to specify its authorized representative delegated to sign all documents to be submitted to the California Arts Council. Unless otherwise stated in the budget act, projects have until June 30, 2023 to be completed. No funds will be disbursed until an agreement between the Agency and the Grantee is signed by both parties. Please submit completed Project Information Package to the Agency Grants Administrator: Margaret Durkin California Arts Council 2750 Gateway Oaks Drive, Suite 300 Sacramento, CA 95833 margaret.durkin@arts.ca.gov ATTACHMENT D Exhibit A A-3 11.A.d Packet Pg. 1176 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 4 GENERAL GRANT INFORMATION, TERMS AND REQUIREMENTS Grant Agreement - Funds will not be disbursed until there is a fully executed agreement between the California Arts Council (Agency) and the grantee. Expenditures made prior to the effective date of the appropriation will not be reimbursed. Grant Period - Agreements for funds approved by the Legislature must be executed within the period of availability provided in the state budget. Funds must be expended and all invoices received by June 30, 2023. California Environmental Quality Act (CEQA) Compliance - As applicable, grantees must identify their CEQA compliance status. Grantees must receive CEQA approval for the proposed project prior to construction or be exempt from CEQA. Proper documentation of CEQA compliance will be required as part of the information package. Required Approvals - The grantee must certify that all approvals (including, but not limited to, local permitting requirements and/or rules from local agencies) required for the project, will be obtained. Reporting Requirements – Grantees are required to submit a final report which must include a Disaster Management Plan including preparedness, response, recovery for varied types of disaster. Financial Management and Grant Administration Requirements - It is the responsibility of all grantees to ensure appropriate stewardship of State grant funds. Each grantee must maintain financial management systems that provide accurate, current, and complete disclosure of the financial activities of the grant-funded project. To meet this requirement, grantees must maintain adequate accounting practices and procedures, internal controls, and audit trails. Grant Agreement and Invoicing – A single payment for the full grant amount will be made upon approval of the contract and submission of an invoice by the Grantee. Generally, Grantees will receive payment within 6-8 weeks of submitting a properly completed invoice. ATTACHMENT D Exhibit A A-4 11.A.d Packet Pg. 1177 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 5 PROJECT ADMINSTRATION Process after Designation of Grant Award by Legislature 1. Grantee completes and submits Project Information Package (Package) to Agency. 2. Agency reviews Package and, if the proposed project scope meets the legislative intent, develops a Grant Agreement with the Grantee. Agency sends a Grant Agreement to Grantee for signature. 3. Grantee returns signed Grant Agreement to Agency. 4. Agency returns fully executed Grant Agreement to Grantee. 5. Grantee may then submit payment request for the full grant amount. 6. Grantee completes project and notifies Agency Grants Administrator. 7. Grantee completes closeout package and final report, and sends to Agency Grants Administrator 8. The State may continue to perform audits, as frequently as annually, and for 3 years following payment of grant funds. Project Withdrawal If a jurisdiction fails to submit a Project Information Package for its allocated amount or otherwise elects not to use its allocation, the allocation will be lost to that jurisdiction. In the event an approved project cannot be completed, and if grant funds were released, those funds plus any accrued interest must be returned to the state within 30 days. Changes to Approved Project A Grantee wishing to change an approved project shall submit the proposed change in writing to Agency for approval. Any change must be consistent with the authorizing legislation. Time Extensions A Grantee wishing to request a time extension shall submit the proposed change and its justification to Agency for approval before the end of the grant period, and report that change in their Final Report. Any change must be consistent with the authorizing legislation. ATTACHMENT D Exhibit A A-5 11.A.d Packet Pg. 1178 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 6 PROJECT INFORMATION PACKAGE CHECKLIST Grantee sends a completed Project Information Package to Agency. Grantees should keep a complete copy of the Project Information Package for future use and reference. Provide the package in order shown in the following checklist, via email to the Agency Grants Administrator: Description Page # Project Information Package Checklist (this page) Pg. 6 Project Information Form Pg. 9 Project Summary Pg. 10 Authorizing Resolution Pg. 11 Cost Estimate Pg. 12 Project Timeline Pg. 13 Property Data Sheet Pg. 14 Land Tenure/Site Control Documents N/A Photos of the Project Site N/A Site Plan, if applicable N/A CEQA Compliance Documents, if applicable N/A Payee Data Form (std. 204) Pg. 15 ATTACHMENT D Exhibit A A-6 11.A.d Packet Pg. 1179 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 7 WHAT TO SUBMIT- DETAILED INSTRUCTIONS 1. Project Information Form - Fill out as follows: a.Grantee: The grantee is the organization that takes formal responsibility and assumes liability for the project. All correspondence regarding the administrative process will be sent to the day-to-day contact person listed for the grantee. b.Project: Provide the title of your project. c.District Information: List the district numbers for the Congressional, State Senate, and State Assembly districts in which the project is located. d.CEQA Status: Indicate the environmental compliance status of your project by checking the applicable box in this section. e.Site Control/Land Tenure: Indicate how the Grantee will satisfy site control by checking the applicable box. f.Individual authorized in the Resolution must sign the certification at the bottom of the page. 2. Project Summary - Provide a one-page overview of the project. 3. Authorizing Resolution - Provide a signed resolution from the governing board, providing authorization to apply for the project. Follow the template included in this guide. 4. Development Cost Estimate - identify all costs associated with the project. Projects using in-house services must also detail the labor, materials and equipment costs as separate line items. 5. Project Timeline - Provide the timeline for key milestones and estimated date ranges of accomplishments. 6. Property Data Sheet - Complete the Property Data Sheet for all property/ parcels to be developed. 7. Land Tenure/Site Control Documents - Provide copies of documents identifying current ownership information associated with each property/parcel on which the project will take place. Documents may include recorded deeds, tax records, and owner data sheets from county records, title reports or other documents that verify ownership. All documents verifying ownership must have the parcel numbers clearly indicated on the document (handwritten acceptable). If the project site is owned by a party other than the grantee: provide a copy of the land tenure agreement (lease, easement, Memorandum of Understanding, etc.) which gives the Grantee legal access, permission to construct and maintain the project, and public access to the resultant project for the required number of years. ATTACHMENT D Exhibit A A-7 11.A.d Packet Pg. 1180 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 8 If a signed agreement is not fully executed at the time of submittal, provide a letter from each landowner identifying the property/parcel(s), and indicating that the owner is willing to enter into a long-term agreement with the grantee to allow long-term access for construction, maintenance and public use of project on the affected parcel(s). No funds can be released until all agreements have been fully executed and submitted to Agency. 8. Photos - Provide a maximum of five (5) labeled color photographs of the project site. 9. Site Plan -Plans should contain details of the property to be developed and show where each of the features and amenities listed in the scope/cost estimate will be located at the project site. 10. Permit Approval Status - Indicate the types of permits necessary to complete the project. 11. CEQA Compliance - Grantees must demonstrate CEQA compliance, as applicable. If completed, provide with package . 12. Payee Data Record - Fill in sections 2-5. ATTACHMENT D Exhibit A A-8 11.A.d Packet Pg. 1181 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 9 PROJECT INFORMATION FORM Project Name Estimated Date of Completion: _ Grant Amount Requested: $ _ Estimated Total Project Cost: $ (State Grant and other funds and In-Kind donations) Grantee Name (with mailing address) Check one: Non-Profit Local Public Agency State Agency County Project Address (or nearest cross street) Senate Dist. Assembly Dist. US Congressional Dist. Grantee's Representative Authorized in Resolution (Signature required at bottom of this page) Name: Title: Phone: Email Address: Project Manager - Person with day to day responsibility for project (if different from authorized representative) Name: Title: Phone: Email Address:_ Brief Description of Project (Summarize major activities to be funded by this Grant) Latitude Longitude Exempt from CEQA, pursuant to CEQA Guideline # _ (Attach Notice of Exemption) CEQA Approval received from another public Agency Attach lead agency's resolution approving the project, along with the Notice of Determination, Negative Declaration, or Mitigated Negative Declaration, stamped by State Clearinghouse and County Clerk's Office. CEQA is not complete, but a completed Draft Initial Study with Checklist is provided. I certify that the information contained in this project application, including required attachments, is complete and accurate. Signed: Grantee's Authorized Representative as shown in Resolution Date Print Name: Print Title: ATTACHMENT D Exhibit A A-9 11.A.d Packet Pg. 1182 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 10 PROJECT SUMMARY With your Project Information Package, submit a one-page summary that provides a description of the proposed project. Grantees must comply with all current laws and regulations which apply to the Project, including, but not limited to, legal requirements for construction contracts, building codes, environmental laws, health and safety codes, and disabled access laws. Grantee certifies that, prior to commencement of construction, all applicable permits and licenses (e.g., state contractor’s license) will have been obtained. ATTACHMENT D Exhibit A A-10 11.A.d Packet Pg. 1183 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 11 AUTHORIZING RESOLUTION TEMPLATE Resolution No. RESOLUTION (GOVERNINIG BODY OF THE GRANTEE) APPROVING THE APPLICATION FOR GRANT FUNDS FOR _ _ (TITLE OF PROJECT) WHEREAS, the Legislature and Governor of the State of California have approved a grant for the project shown above; and WHEREAS, the California Arts Council has been delegated the responsibility for the administration of the grant project, setting up necessary procedures; and WHEREAS, said procedures established by the California Arts Council, the Grantee to certify by resolution the approval of application(s) before submission of said application(s) to the state; and WHEREAS, the Grantee will enter into an agreement with the State of California for subject project(s): NOW, THEREFORE, BE IT RESOLVED that the _ _ (Grantee) 1.Approves the acceptance of general fund allocation for local assistance for the above project(s); and 2.Certifies that said agency understands the assurances and certification in the Project Information Form; and 3.Certifies that said agency will have sufficient funds to operate and maintain the project(s) or will enter into an agreement with another entity to perform said operation and maintenance; and 4.Certifies that said agency has reviewed and understands the General Provisions contained in the Project Agreement shown in the Procedural Guide; and 5.Appoints the (designated position, not person occupying position) _ as agent to conduct all negotiations, execute and submit all documents including, but not limited to Project Information Form, agreements, payment requests and so on, which may be necessary for the completion of the aforementioned project(s). Approved and adopted the _ day of 20_ ...... I, the undersigned, hereby certify that the forgoing Resolution Number was duly adopted by the _ _ . (Governing Body) Following Roll Call Vote: Ayes: Nos: Absent: _ _ Clerk/Secretary for the Governing Board ATTACHMENT D Exhibit A A-11 11.A.d Packet Pg. 1184 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 12 COST ESTIMATE FORM FOR DEVELOPMENT PROJECTS All cost elements included should be consistent with the scope, site plan and CEQA documents. Add and delete project elements as applicable to your project. Project Elements (SAMPLE ONLY) Total Project Costs General Fund Grant Other Funding (if applicable) Other Funding (if applicable) NON-CONSTRUCTION COSTS Direct Project Management & Administration Staff Time (direct costs only) Incidental Charges Ineligible Consultants Subtotal – Direct Management Planning, Design & Permitting Staff Time (direct costs only) Consultants Permit Costs Subtotal - Planning, Design & Permitting CEQA Compliance (if applicable) Staff Time (direct costs only) Consultants Subtotal – CEQA SUB-TOTAL Non-Construction Costs (not to exceed 25% of grant) CONSTRUCTION COSTS Component X (Specify) Component Y (Specify) Component Z (Specify) SUB- TOTAL Construction Costs Contingency (not to exceed 10% of grant) PROJECT GRAND TOTAL Category listing should be detailed and customized to fit the project. Each Funding source, whether In-Kind or cash should have its own column. Specify In-Kind or cash in each column heading. The General Fund Grant and Other Funding Sources should sum the Total Project Costs column. LS = Lump Sum ATTACHMENT D Exhibit A A-12 11.A.d Packet Pg. 1185 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project 13 PROJECT TIMELINE Activity Description Timeline Preliminary work on the project Month 20XX- Month 20XX Submit CEQA documents Month 20XX Submit final site design/plans/specifications Month 20XX - Month 20XX Submit evidence of bond acknowledgement sign Month 20XX Construction period Month 20XX- Month 20XX Submit Project Closeout package with Final Report to State Month 20XX ATTACHMENT D Exhibit A A-13 11.A.d Packet Pg. 1186 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 14 PROPERTY DATA SHEET Complete the Property Data Sheet listing each parcel included in the proposed project, as well as the owner(s) of each parcel. Indicate and attach all required documents* including any clarifying comments below. Attach additional sheets if necessary. No Owner Name Assessor Parcel Number(s) Acreage If parcel(s) owned by Grantee(s), indicate type of ownership For all parcels, indicate *document used to demonstrate ownership and attach a copy of each document-clearly labeled with the APN-to this document If parcel(s) not owned by Grantee(s) indicate *document verifying long- term Permission to Develop and maintain and attach Entity to perform O&M # of years O&M to be performed F e e Si m pl e E a s e m e nt Oth er (de scri be) Proof of Ownership (tax bill, grant deed, etc.) O& M Agr ee me nt L e a s e J P A Lett er fro m Ow ner Oth er (de scri be) 1 2 3 4 5 6 7 8 Comments: Total Number of Parcels: Total Number of Acres: __ ATTACHMENT D Exhibit A A-14 11.A.d Packet Pg. 1187 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project ATTACHMENT D Exhibit A A-15 11.A.d Packet Pg. 1188 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 16 PAYMENT REQUEST INSTRUCTIONS Before Submitting  Check that all costs are allowable. a. Costs must be incurred within the project performance period outlined on the grant agreement cover page and/or subsequent amendments and must align with the cost estimate. b. For capital projects, there is a 25% cap on non-construction funds. c. All costs must directly relate to the grant funded project (i.e. no overhead costs such as rent or utilities). What to Submit Payment Request Form filled out with original signature of authorized agent. Payment Tracking Sheet filled in with amounts for the request. Itemized List of Project Expenditures, Grantee Labor Cost Form, and Equipment Cost Form (as applicable). Descriptions should clearly tie to the line items on the payment tracking sheet, as well as the backup documentation. Payment – Payment will be released upon approval of the contract and Grantee payment request, for the full grant award amount. Final Report - Final Report must be filed, along with closeout documents. This includes: a.Summary of Expenditures from all Project Funding Sources b.Certification of Completion Form c.Notice of Completion (if applicable) d.Recorded MOUGA/Deed Restriction (if applicable) ATTACHMENT D Exhibit A A-16 11.A.d Packet Pg. 1189 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 17 STATE AUDIT AND ACCOUNTING REQUIREMENTS ●All projects may be subject to an audit by the State of California, Department of Finance within three (3) years following the final payment of grant funds. If the project is selected for an audit, the grantee will be contacted in advance. The audit shall include all books, papers, accounts, documents, canceled checks or other records of the grantee, as they relate to the project for which the funds were granted . ●The grantee must retain the project records for a period of three (3) years and one (1) year following an audit. All documents must be readily available, and an employee with knowledge of the project must be available to assist the auditor. The Grantee must provide a copy of any document, paper, record, or the like, requested by the auditor. In the event of an audit, contact the Grant Administrator for questions about the following requirements: Accounting Requirements Grantees must use accounting practices that: ●Provide accounting data that clearly records costs incurred on the project and accurately reflects fiscal transactions, with the necessary controls and safeguards. ●Provide good audit trails, especially the source documents (purchase orders, receipts, progress payments, invoices, time cards, cancelled warrants, warrant numbers, etc.) specific to the project. ●Provides accounting data so the total cost of each individual project can be readily determined. Accounting Rules for Employee Services Grantees must follow these accounting practices for employee services: ●Maintain time and attendance records as charges are incurred, identifying the employee through a name or other tracking system, and that employee’s actual time spent on the project. ●Time estimates for work performed on the project are not acceptable. ●Time sheets that do not identify the specific employee’s time spent on the project are not acceptable. ●Costs of the salaries and wages must be calculated according to the grantee’s wage and salary scales and may include employer paid benefit costs such as “workers’ compensation.” ●Overtime costs may be allowed under the grantee’s established policy, provided that the regular work time was devoted to the same project ATTACHMENT D Exhibit A A-17 11.A.d Packet Pg. 1190 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 18 Documents Required for the Department of Finance Audit Please have the following documents, files, records, and other resources available for the Department of Finance during their audit of the grant. Internal Controls: 1. Grantee's organization charts. 2. Written internal procedures and flowcharts for the following procedures: a. Grantee's receipts and deposits b. Grantee's disbursements c. Grantee's invoice preparation 3. Audit reports covering the Grantee's internal control structure and/or expenditures within the last two years. Contracts: 1. Original contract between the Grantee and the State, including any amendments. 2. All contract documents between the Grantee and any subcontractors. 3. Listing of all active or completed contracts funded by Proposition 12, 13, 40, and 50. Budgets: 1. Budget modification documents. Invoices: 1. Invoices from the Grantee to the State for payments made under the grant. 2. Invoices from the subcontractors to the Grantee for payments made under the grant. 3. All supporting documentation associated with the above invoices. Cash Documents: 1. Receipts showing payment received from the State. 2. Deposit slips showing deposit of the payments received from the State. 3. Canceled checks or disbursement documents showing payments made to vendors for contract disbursements. 4. Bank statements showing the deposit of the receipts and interest earned on any monies held by the Grantee. ATTACHMENT D Exhibit A A-18 11.A.d Packet Pg. 1191 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 19 Accounting Records: 1. Ledgers showing entries for cash receipts and cash disbursements. Travel/Per Diem: 1. Grantee travel policies. 2. Travel claims for travel costs charged to the contract organized by the Grantee Invoice on which the travel was charged. 3. Mileage logs, if mileage for grantee employees claimed and paid with Grant funds. Project Files: 1. All supporting documentation maintained in the project files. ATTACHMENT D Exhibit A A-19 11.A.d Packet Pg. 1192 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 20 SAMPLE CALIFORNIA ARTS COUNCIL GRANT AGREEMENT Grantee Name: Insert Here Project Title: Insert Here Agreement Number: XXXXXX-0 Authority: Bill No. AB 179, Specified Funding FY 2022-23 Program: General Fund Designated Funding Grant Projects PROJECT DESCRIPTION Brief Project Description A detailed project scope and activities, project schedule and project budget are described and attached hereto as Exhibit A. Grant Funds are to be used to support capital asset projects/programmatic project in accordance with the provisions contained in the Procedural Guide for Dedicated Funding Grant Projects and this Agreement. TERMS AND CONDITIONS OF GRANT Special Provisions Special Provisions, if applicable EXAMPLES ONLY: (see other Sample Special Provisions in B&G/Procedures–Various/Preparation of Grant Agreement) 1. Insert if California Environmental Quality Act (CEQA) (including Greenhouse Gas Emissions) has not yet been completed at time of Grant Agreement: As conditions precedent to the State’s obligation to make any construction funding available pursuant to this agreement, Grantee shall first provide evidence of compliance with CEQA. 2. Insert if nonprofit: If the Grantee is a nonprofit organization and ceases to exist, all of its rights, title and interest in the real property shall vest in the State of California. ATTACHMENT D Exhibit A A-20 11.A.d Packet Pg. 1193 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 21 The State may, at its discretion, identify an appropriate public or private entity to accept the right, title and interest in the real property in lieu of the State. 3. Insert if grantee has not yet obtained land tenure/site control: As conditions precedent to the State’s obligation to make any funding available pursuant to this agreement, Grantee shall first provide evidence of adequate land tenure and evidence that the project will be operated and maintained for a minimum of 25 years satisfactory to the State for all land to be improved under this agreement. ATTACHMENT D Exhibit A A-21 11.A.d Packet Pg. 1194 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 22 General Provisions A. Definitions 1. The term "Act" means Bill No. AB 179 (2022). 2. The term “Acquisition” means obtaining a fee interest or any other interest, including easements, leases, and development rights. 3. The term “Agreement” means this Grant Agreement. 4. The term “Application Guidelines” means the Procedural Guide for General Fund Specified Grant Projects. 5. The term “Development” means improvement, rehabilitation, restoration, enhancement, preservation, protection and interpretation or other similar activities. 6. The term “Fair Market Value” means the value placed upon the property as supported by an appraisal that has been reviewed and approved by the California Department of General Services (DGS). 7. The term “Grant” or “Grant Funds” means the money provided by the State to the Grantee in this agreement. 8. The term “Grant Agreement” means a contractual arrangement between the State and Grantee specifying the payment of funds by the State for the performance of specific project objectives within a specific project performance period by the Grantee. 9. The term “Grantee” means an applicant who has a signed agreement for grant funds. (Grantee’s Authorized Representative signature required on Grant Agreement.) 10. The term “Interpretation” means visitor-serving amenities that communicate the significance and value of natural, historical and cultural resources in a manner that increases the understanding and enjoyment of these resources, or other similar activities. 11. The term “Other Sources of Funds” means cash or in-kind contributions that are required or used to complete the project beyond the grant funds provided by this Agreement. 12. The term “Payment Request Form” means Invoice. 13. The term "Project" means the acquisition or development activity described in the application as modified by Exhibit A to be accomplished with grant funds. ATTACHMENT D Exhibit A A-22 11.A.d Packet Pg. 1195 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 23 14. The term “Project Budget” means the State approved cost estimate included as Exhibit A to this Agreement. 15. The term “Project Scope” means the description or activity for work to be accomplished by the project. 16. The term "State" means the Secretary for California Arts Council or his/her representatives, or other political subdivision of the State. B. Project Execution 1. Subject to the availability of funds in the Act, the State hereby grants to the Grantee a sum of money (Grant Funds) not to exceed the amount stated on the signature page in consideration of and on condition that the sum be expended in carrying out the purposes as set forth in the description of project in this Agreement and its attachments and under the Terms and Conditions set forth in this agreement. 2. Grantee shall furnish any and all additional funds that may be necessary to complete the project. 3. Grantee shall complete the project in accordance with the Project Performance Period set forth on the signature page, unless an extension has been formally granted by the State and under the Terms and Conditions of this agreement. Extensions may be requested in advance and will be considered by State, at its sole discretion, in the event of circumstances beyond the control of the Grantee, but in no event beyond June 30, 2023. 4.Grantee shall at all times ensure that project complies with the California Environmental Quality Act (CEQA) (Public Resources Code, Division 13, commencing with section 21000, et. seq., Cal Code Regs tit. 14, section 15000 et. seq.) and all other environmental laws, including but not limited to obtaining all necessary permits. Grant funds will not be disbursed before the close of the period for legal challenge under CEQA. Grant funds for planning and document preparation may be available sooner if included in the grant project scope (Exhibit A) and approved by the State. CEQA compliance shall be completed within one (1) year from the Grant Agreement start date, unless an extension is granted by the State. Changes to the scope resulting from CEQA compliance are permitted provided the State determines that the project continues to meet all objectives of the General Fund Specified Grant Project and is consistent with the intent cited in the original Application. ATTACHMENT D Exhibit A A-23 11.A.d Packet Pg. 1196 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 24 If a grantee's project is disapproved on grounds related to the California Arts Council’s CEQA determination, the grantee shall have the option of either: (1) reimbursing the CAC for all state-reimbursed preliminary costs (e.g., planning, design, etc.), or (2) relinquishing any planning/design documents, including all copies, reproductions, and variations resulting from said funding, without a license to use or otherwise retain in any form. 5. Projects must comply with any applicable laws pertaining to prevailing wage and labor compliance. 6. Grantee certifies that the project does and will continue to comply with all current laws and regulations which apply to the project, including, but not limited to, legal requirements for construction contracts, building codes, environmental laws, health and safety codes, and disabled access laws. Grantee certifies that, prior to commencement of construction; all applicable permits and licenses (e.g., state contractor’s license) will have been obtained. 7. Grantee shall provide access by the State upon 24-hours’ notice to determine if project work is in accordance with the approved project scope, including a final inspection upon project completion. 8. Prior to the commencement of any work, Grantee agrees to submit in writing to the State for prior approval any deviation from the original project scope per Exhibit A and the application. Changes in project scope must continue to meet the need cited in the original application or they will not be approved. Any modification or alteration in the project as set forth in the application on file with the State must be submitted to the State for approval. Any modification or alteration in the project must also comply with all current laws and regulations, including but not limited to CEQA. 9. Grantee shall provide for public access and/or educational features where feasible. 10. Grantee must have (1) fee title, (2) leasehold, or (3) other interest to project lands and demonstrate to the satisfaction of the State that the proposed project will provide public benefits that are commensurate with the type and duration of the interest in land. Any acquisition of project lands by Grantee following award shall not involve eminent domain proceedings or threat of eminent domain proceedings. 11. Grantee shall promptly provide photographs of the site during and after implementation of project at the request of the State. C. Project Costs ATTACHMENT D Exhibit A A-24 11.A.d Packet Pg. 1197 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 25 1.Grant funds provided to Grantee under this agreement will be disbursed in a single payment distribution for eligible costs. Payments are made as follows, but shall not exceed in any event the amount set forth on the signature page of this agreement: a.A single distribution payment of the total contract dollar amount will be made upon approval of the contract and submission of an invoice by the Grantee. Grantee agrees to use any Grant Funds under the terms of this Agreement solely for the Project herein described. b.The Grantee shall place these Funds in a separate interest-bearing account, setting up and identifying such account prior to the release of grant funds. Interest earned on Grant Funds shall be used on the Project, as approved by the State. Any overpayment of Grant Funds in excess of final project costs shall be returned to the State within sixty (60) days of completion of the Project or the end of the Project performance period as shown on the signature page, whichever is earlier. 2. Payment Documentation: a. A payment request must be submitted using a completed Payment Request Form. b. If the payment request package is incomplete, inadequate or inaccurate, the State will inform the Grantee and hold the payment request until all required information is received or corrected. Any penalties imposed on the Grantee by a contractor, or other consequence, because of delays in payment will be paid by the Grantee and is not reimbursable under this agreement. 3. Grant funds in this award have a limited period in which they must be expended. Grantee expenditures funded by the State must occur within the time frame of the Project Performance Period as indicated in this agreement. 4. The State reserves the right to request reimbursement of any funds spent on the project, even funds deemed eligible costs, if the project is not completed in accordance with the Grant Agreement and the guidelines. 5. Except as otherwise provided herein, the Grantee shall expend grant funds in the manner described in the Exhibit A approved by the State. The total dollars of a category in the project budget may be increased by up to ten percent (10%) through a reallocation of funds from another category, without approval by the State. However, the Grantee shall notify the State in writing when any such reallocation is made and shall identify both the item(s) being increased and those being decreased. Any cumulative increase or decrease of more than ten percent ATTACHMENT D Exhibit A A-25 11.A.d Packet Pg. 1198 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 26 (10%) from the original budget in the amount of a category must be approved by the State. In any event, the total amount of the grant funds may not be increased, nor may any adjustments exceed the limits for management costs as described in the Application Guidelines. D. Project Administration 1. Grantee shall promptly provide project reports and/or photographs upon request by the State. In any event Grantee shall provide the State a report showing total final project expenditures with the final payment request and required closing documents. 2. Grantee shall make property and facilities acquired or developed pursuant to this agreement available for inspection upon request by the State. 3. Grantee shall use any income earned by the Grantee from use of the project to further project purposes, or, if approved by the State, for related purposes within the jurisdiction. 4. Grantee shall submit all documentation for project completion, including a notice of completion as applicable within ninety (90) days of project completion, but in no event any later than September 30, 2023. 5.This agreement may be amended by mutual agreement in writing between Grantee and State. Any request by the Grantee for amendments must be in writing stating the amendment request and reason for the request. The Grantee shall make requests in a timely manner and in no event less than sixty (60) days before the effective date of the proposed amendment. 6. Grantee must report to the State all sources of other funds for the project. E. Project Termination 1. The State reserves the right to terminate a Grant Agreement for any reason at any time. There are no vested rights or entitlements to funding that a Grantee can or should rely upon, and once a notice of termination is provided to the Applicant, only authorized and eligible work prior to that notification of termination will be paid by the State. 2. Prior to the completion of project construction, either party may terminate this agreement by providing the other party with thirty (30) days’ written notice of such termination. The State may also terminate this Grant Agreement for any reason at any time if it learns of or otherwise discovers that there is a violation of ATTACHMENT D Exhibit A A-26 11.A.d Packet Pg. 1199 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 27 any state or federal law or policy by Grantee which affects performance of this or any other grant agreement or contract entered into with the State. 3. If the State terminates without cause the agreement prior to the end of the Project Performance Period, the Grantee shall take all reasonable measures to prevent further costs to the State under this agreement. The State shall be responsible for any reasonable and non-cancelable obligations incurred by the Grantee in the performance of the agreement prior to the date of the notice to terminate. 4. If the Grantee fails to complete the project in accordance with this agreement, or fails to fulfill any other obligations of this agreement prior to the termination date, the Grantee shall be liable for immediate repayment to the State of all amounts disbursed by the State under this agreement, plus accrued interest and any further costs related to the project. The State may, at its sole discretion, consider extenuating circumstances and not require repayment for work partially completed provided that the State determines it is in the State’s best interest to do so. This paragraph shall not be deemed to limit any other remedies available to the State for breach of this agreement. 5. Failure by the Grantee to comply with the terms of this agreement or any other agreement under the Act may be cause for suspension of all obligations of the State hereunder. 6. Failure of the Grantee to comply with the terms of this agreement shall not be cause for suspending all obligations of the State hereunder if, in the judgment of the State, such failure was due to no fault of the Grantee. At the discretion of the State, any amount required to settle at minimum cost any irrevocable obligations properly incurred shall be eligible for reimbursement under this agreement. 7. Because the benefit to be derived by the State, from the full compliance by the Grantee with the terms of this agreement, is the for the purposes as stated in the application for the people of the State of California, and because such benefit exceeds to an immeasurable and unascertainable extent the amount of money furnished by the State by way of grant funds under the provisions of this agreement, the Grantee agrees that payment by the Grantee to the State of an amount equal to the amount of the grant funds disbursed under this agreement by the State would be inadequate compensation to the State for any breach by the Grantee of this agreement. The Grantee further agrees therefore, that the appropriate remedy in the event of a breach by the Grantee of this agreement shall be the specific performance of this agreement, unless otherwise agreed to by the State. F. Hold Harmless ATTACHMENT D Exhibit A A-27 11.A.d Packet Pg. 1200 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 28 1.Grantee shall waive all claims and recourses against the State, including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this agreement, except claims arising from the gross negligence of State, its officers, agents and employees. 2. Grantee shall indemnify, hold harmless and defend State, its officers, agents and employees in perpetuity against any and all claims, demands, damages, costs, expenses or liability costs arising out of the project, including development, construction, operation or maintenance of the property described in the project description which claims, demands or causes of action arise under Government Code Section 895.2 or otherwise, including but not limited to items to which the Grantee has certified, except for liability arising out of the gross negligence of State, its officers, agents or employees. Grantee acknowledges that it is solely responsible for compliance with items to which it has certified. 3. Grantee and State agree that in the event of judgment entered against the State and Grantee because of the gross negligence of the State and Grantee, their officers, agents or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment. G. Financial Records 1. Grantee shall maintain satisfactory financial accounts, documents and records for the project and to make them available to the State for auditing at reasonable times. Grantee shall also retain such financial accounts, documents and records for three (3) years after final payment and one (1) year following an audit. 2. Grantee agrees that during regular office hours, the State and its duly authorized representatives shall have the right to inspect and make copies of any books, records or reports of the Grantee pertaining to this agreement or matters related thereto. Grantee shall maintain and make available for inspection by the State accurate records of all of its costs, disbursements and receipts with respect to its activities under this agreement. 3. Grantee shall use applicable Generally Accepted Accounting Principles, unless otherwise agreed to by the State. H. Use of Facilities 1. The real property (including any portion of it or any interest in it) may not be sold or transferred without the written approval of the State of California, acting through the CAC or its successor, provided that such approval shall not be unreasonably withheld as long as the purposes for which the grant was awarded are maintained. ATTACHMENT D Exhibit A A-28 11.A.d Packet Pg. 1201 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 29 2.Grantee shall use the property for the purposes for which the grant was made and shall make no other use or sale or other disposition of the property. This agreement shall not prevent the transfer of the property from the Grantee to a Public Agency, if the successor public agency assumes the obligations imposed by this agreement. 3. If the use of the property is changed to a use that is not permitted by the agreement, or if the property is sold or otherwise disposed of, at the State’s sole discretion, an amount equal to (1) the amount of the Grant (2) the Fair Market Value of the real property, or (3) the proceeds from the sale or other disposition, whichever is greater, may be reimbursed to the State. If the property sold or otherwise disposed of is less than the entire interest in the property funded in the Grant, an amount equal to either the proceeds from the sale or other disposition of the interest or the Fair Market Value of the interest sold or otherwise disposed of, whichever is greater, shall be reimbursed to the State. 4. The Grantee shall not use or allow the use of any portion of the real property for mitigation without the written permission of the State. 5. The Grantee shall not use or allow the use of any portion of the real property as security for any debt. I. Nondiscrimination 1. During the performance of this grant, grantee and its subcontractors shall not unlawfully discriminate, harass or allow harassment, against any person because of sex, sexual orientation, race, color, religious creed, marital status, denial of family and medical care leave, ancestry, national origin, medical condition (cancer/genetic characteristics), age (40 and above), disability (mental and physical) including HIV and AIDS, denial of pregnancy disability leave or reasonable accommodation. Grantee and subcontractors shall ensure that the evaluation and treatment of all persons, and particularly their employees and applicants for employment are free from such discrimination and harassment. Grantee and its subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, §12900 et seq.) and the applicable regulations promulgated thereunder (Cal. Code Regs, tit. 2, §7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, §12990 (a)–(f), are incorporated into this grant by reference and made a part hereof as if set forth in full (Cal. Code Regs, tit. 2, §7285.0 et seq.). Grantee shall include this non-discrimination and compliance provisions of this clause in all subcontracts to perform work under the grant. 2. The Grantee shall not discriminate against any person on the basis of residence except to the extent that reasonable difference in admission or other fees may be maintained on the basis of residence and pursuant to law. ATTACHMENT D Exhibit A A-29 11.A.d Packet Pg. 1202 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 30 3.The completed project and all related facilities shall be open to members of the public generally, except as noted under the special provisions of this agreement or under provisions of the Act. J. Application Incorporation The Grant Guidelines and the Application and any subsequent changes or additions to the Application approved in writing by the State are hereby incorporated by reference into this agreement as though set forth in full in this agreement. K. Severability If any provision of this agreement or the application thereof is held invalid, that invalidity shall not affect other provisions or applications of this agreement which can be given effect without the invalid provision or application, and to this end the provisions of this agreement are severable. L. Waiver No term or provision hereof will be considered waived by either party, and no breach excused by either party, unless such waiver or consent is in writing and signed on behalf of the party against whom the waiver is asserted. No consent by either party to, or waiver of, a breach by either party, whether expressed or implied, will constitute consent to, waiver of or excuse of any other, different or subsequent breach by either party. M. Assignment Except as expressly provided otherwise, this agreement is not assignable by the Grantee either in whole or in part. N. Disputes If the Grantee believes that there is a dispute or grievance between Grantee and the State arising out of or relating to this agreement, the Grantee shall first discuss and attempt to resolve the issue informally with the Agency Grants Administrator. If the issue cannot be resolved at this level, the Grantee shall follow the following procedures: 1. If the issue cannot be resolved informally with the Agency Grants Administrator, the Grantee shall submit, in writing, a grievance report together with any evidence to the Director of the California Arts Council. The grievance report must state the issues in the dispute, the legal authority, or other basis for the Grantee’s position and the remedy sought. Within ten (10) working days of receipt of the written grievance report from the Grantee, the Director shall make a determination on the issue(s) and shall respond in writing to the Grantee ATTACHMENT D Exhibit A A-30 11.A.d Packet Pg. 1203 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) 31 indicating the decision and reasons therefore. Should the Grantee disagree with the Director’s decision, the Grantee may appeal to the Governor’s office. 2. The Grantee must submit a letter of appeal to the Governor’s office explaining why the Director’s decision is unacceptable. The letter must include, as an attachment, copies of the Grantee’s original grievance report, evidence originally submitted, and response from the Director. The Grantee’s letter of appeal must be submitted within ten (10) working days of the receipt of the Director’s written decision. The Governor’s office or designee shall, within twenty (20) working days of receipt of Grantee’s letter of appeal, review the issues raised and shall render a written decision to the Grantee. The decision of the Governor’s office or designee shall be final. O. Audit Requirements Grant projects are subject to audit by the State annually and for three (3) years following the final payment of grant funds. The audit shall include all books, papers, accounts, documents, or other records of the Grantee, as they relate to the project for which the grant funds were granted. Please have Grantee’s Authorized Representative sign and date below, and return in electronic format: ___________________________________________ ____________________ Grantee’s Authorized Representative (Date) ___________________________________________ ____________________ California Arts Council, Executive Director (Date) ATTACHMENT D Exhibit A A-31 11.A.d Packet Pg. 1204 Attachment: Attachment D - Resolution for Santa Monica City Yards Modernization Microgrid Project (5534 : FY 2022-23 Midyear Budget) ATTACHMENT E 1 City Council Meeting: April 11, 2023 Santa Monica, California RESOLUTION NO. ________ (CCS) (City Council Series) A RESOLUTION OF THE CITY OF SANTA MONICA AUTHORIZING EXECUTION OF ADMINISTERING AGENCY-STATE MASTER AGREEMENTS FOR STATE AND FEDERAL-AID FUNDED PROJECTS WHEREAS, the City of Santa Monica (City) is eligible to receive Federal and/or State funding for certain Transportation Projects through the California Department of Transportation; and WHEREAS, Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements and/or Fund Transfer Agreements must be executed with the California Department of Transportation before such funds can be claimed; and WHEREAS, the City wishes to delegate the authority to execute these agreements and any amendments thereto to the City Manager. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. the City designates the City Manager as the person authorized to execute all Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements and/or Fund Transfer Agreements, and any amendments thereto with the California Department of Transportation. 11.A.e Packet Pg. 1205 Attachment: Attachment E - Resolution re State and Federal Aid Funded Projects (5534 : FY 2022-23 Midyear Budget) ATTACHMENT E 2 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: _______________________ DOUGLAS SLOAN City Attorney 11.A.e Packet Pg. 1206 Attachment: Attachment E - Resolution re State and Federal Aid Funded Projects (5534 : FY 2022-23 Midyear Budget) ATTACHMENT G Council Priorities The following are the City Council approved priorities for the next two years, which will guide the development of the FY 2023-25 biennial budget: Addressing Homelessness: Prevent housed Santa Monicans from becoming homeless and increase the supply of affordable housing, address the behavioral health needs of vulnerable individuals and advocate for regional capacity to address homelessness. Clean & Safe Santa Monica: Create an atmosphere marked by clean and safe public spaces and neighborhoods, including parks for recreation and leisure activities. Cultivate Economic Recovery & Expand Community & Cultural Offerings: Cultivate economic opportunity and recovery and invest in community and cultural amenities and programs for all community members, focused on expanding opportunities for youth, teens and seniors. Racial Justice, Equity & Social Diversity: The City of Santa Monica acknowledges the effects of generational and institutional racism and discrimination, and its consequences that continue to impact our residents and businesses. These lessons of our history cannot be ignored. The City is committed to advancing racial equity and social diversity to improve the wellbeing of people who live, work, learn, play, and do business in our City and create a community where differences in life outcomes cannot be predicted by race, class, gender, disability or other identities. Everyone in Santa Monica must have an opportunity to thrive. Sustainable & Connected Community: Ensure that City policies and programs enhance our resources, prevent and remedy harm to the natural environment and human health, and benefit the social and economic wellbeing of the community for the sake of current and future generations. 11.A.g Packet Pg. 1207 Attachment: Attachment G - Council Priorities (5534 : FY 2022-23 Midyear Budget) 1 Vernice Hankins From:Council Mailbox Sent:Monday, April 10, 2023 8:44 AM To:councilmtgitems Subject:Fw: Task Force Input to City Council April 11, 2023 Meeting From: Early Childhood Task Force <ectaskforce@outlook.com>  Sent: Saturday, April 8, 2023 9:32 AM  To: Council Mailbox <Council.Mailbox@santamonica.gov>  Subject: Task Force Input to City Council April 11, 2023 Meeting   EXTERNAL  Dear Mayor Davis, Mayor Pro Tem Negrete, and Honorable Councilmembers:  Thank you for your leadership in setting priorities at the March 11, 2023, Special Council Meeting. We are  particularly grateful that you expanded council priorities to include and support the needs of children,  youth, and their families.   As the council reviews the midyear budget and makes adjustments based on the City's economic recovery, the  Task Force urges you to increase allocations for programs that support children and families.   Increased support for children, youth, and their families is a key facet for all five of the approved priorities.  For example:   Cultivate Economic Recovery & Expand Community & Cultural Offerings   Investing in early childhood and after school childcare is critical to the City's economic recovery. A lack of  childcare causes businesses to lose revenue due to employee absenteeism, high rates of turnover, and a  reduction in their work hours. This leaves our families more vulnerable, causes postponement of their  education or training opportunities, and causes parents to leave the workforce.  Racial Justice, Equity & Social Diversity   The Task Force believes that supporting young children and their families is essential to "create a   community where differences in life outcomes cannot be predicted by race, class, gender, disability  or other identities."  Clean & Safe Santa Monica   Law Enforcement leaders from Fight Crime: Invest in Kids have advocated for over 25 years in policies and  programs that support youth. These law enforcement leaders consistently state that the best way to see less  crime, incarceration, and homelessness is to invest in high‐quality early childhood education and support  our low‐income families in accessing childcare.  Addressing Homelessness   We also urge you to increase funding for the City's Human Services Grants Program, which provides direct  services for the city's most vulnerable residents of all ages. The agencies funded by these grants are on the  Item 11.A 04/11/23 1 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1208 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) 2 front line helping housed residents, including families with children, get the support, training, and services  they need to improve their lives and remain housed.      On behalf of the Early Childhood Task Force and Santa Monica's 4,500 children under five, we greatly  appreciate your strong support for children and families.   If you have any questions or want to discuss this in greater detail, please do not hesitate to contact us  at ectaskforce@outlook.com.   Sincerely,  The Santa Monica Early Childhood Task Force Steering Committee  McKenna Belgarde and Julie Taren  Co‐Chairs Santa Monica Early Childhood Task Force     Item 11.A 04/11/23 2 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1209 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) 1 Vernice Hankins From:Anjuli Kronheim Katz <akronhe1@gmail.com> Sent:Monday, April 10, 2023 3:08 PM To:councilmtgitems; Gleam Davis; Phil Brock; Oscar de la Torre; Lana Negrete; Christine Parra; Jesse Zwick; Caroline Torosis Subject:Support for Early Childhood Task Force Steering Committee Recommendations EXTERNAL    Dear Mayor Davis, Mayor Pro Tem Negrete, and Honorable Councilmembers:    I write in support of the Santa Monica Early Childhood Task Force Steering Committee's recommendations to increase  allocations for programs investing in early childhood and after school childcare. I also support increasing funding fo  the City's Human Services Grants Program, which provides direct services for the city's most vulnerable residents of all  ages ‐ including families and children.     Thank you,  Anjuli Kronheim Katz  Former Housing Commissioner     ‐‐   Anjuli Kronheim Katz  Cell: 484‐213‐4811  Item 11.A 04/11/23 3 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1210 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) 1 Vernice Hankins From:zinajosephs@aol.com Sent:Monday, April 10, 2023 11:38 PM To:Gleam Davis; Lana Negrete; Christine Parra; Oscar de la Torre; Phil Brock; Caroline Torosis; Jesse Zwick; councilmtgitems Cc:David White; Gigi Decavalles; zinajosephs@aol.com Subject:Re: City Council Mtg. 4/11/23 - Item 11A - Fiscal Year Midyear Budget - Neighborhood organization grants EXTERNAL    April 10, 2022 To: Mayor Davis and City Council members From: Zina Josephs RE: 4/11/23 agenda item 11-A -- Neighborhood Organization Grants I support the letter below from the Wilmont Board. Sunset Park has about 7,000 residential addresses and another 1,000 or so business addresses. Using the street addresses provided to us by the city, it cost us more than $9,000 last year to print and send out a newsletter using a bulk mail permit. FOSP could afford to make up the difference between the grant and the actual cost of the mailing, but it's really unfair to expect Wilmont to do that when their neighborhood has so many more addresses. Again, I support the letter below from the Wilmont Board. *************************************************************************************************   In a message dated 4/10/2023 6:10:53 PM Pacific Standard Time, emvandenburgh@gmail.com writes:           Mayor Davis and Council Members,     The Wilshire Montana Neighborhood Coalition (Wilmont) Board of Directors asks for the following change to be  made to the Fiscal Year Midyear Budget based on equity and support of all city neighborhoods with the annual  city grant of $7,000.      We request that the annual neighborhood grant become variable.  Wilshire Montana Neighborhood  Coalition (Wilmont) was given a list of over 13,000 addresses in our neighborhood via a city  Item 11.A 04/11/23 4 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1211 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) 2 process.  Historically the city requested and sent our annual newsletter in recognition of the value of  neighborhood groups.     We use our grant to send out an annual newsletter to all our Wilmont residents.  Wilmont is the  largest neighborhood in terms of addresses.  Currently, each neighborhood gets the same $7,000  grant.   Last year we obtained multiple estimates of the price to generate 13,000 copies, labels and postage  for our annual newsletter and on average it was about $1/newsletter.  The $7,000 does not cover  this.  We request that Council address these differences by still providing $7,000 per neighborhood  groups that have 7,000 or less addresses and provide a $1/address for other neighborhoods that  have greater than 7,000 addresses.  For Wilmont, that would be $13,000 in 2023, or an addition of  $6,000 to send newsletters out to every address in our neighborhood.  Thank‐you     Thank‐you for ensuring the vitality and continued importance of the city's neighborhoods.     Board of Directors  Wilshire Montana Neighborhood Coalition (Wilmont)           Item 11.A 04/11/23 5 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1212 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) 1 Vernice Hankins From:Tricia Crane <1triciacrane@gmail.com> Sent:Tuesday, April 11, 2023 9:36 AM To:councilmtgitems; Gleam Davis; Oscar de la Torre; Lana Negrete; Christine Parra; Phil Brock; Jesse Zwick; Caroline Torosis; Gigi Decavalles; David White Subject:Fwd: Support for Wilmont request - City Council Mtg. 4/11/23 - Item 11A - Fiscal Year Midyear Budget EXTERNAL    To: City Council  From: Northeast Neighbors  Re: City Council Agenda Item 11A  April 11, 2023    Dear Mayor, City Council and City Manager,  The Board of Northeast Neighbors has voted to support the request of our neighbors in Wilshire Montana Neighborhood Association (Wilmont) to receive from the City adequate funding to continue their good work.   We ask the Council to provide the public funds needed by Wilmont to conduct outreach and build membership in their large and densely populated neighborhood.  Sincerely,  Tricia Crane  On behalf of the Board of Northeast Neighbors Neighborhood Association  www.neneighbors.org        Item 11.A 04/11/23 6 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1213 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) 2 Mayor Davis and Council Members,    The Wilshire Montana Neighborhood Coalition (Wilmont) Board of Directors asks for the following change to be made to  the Fiscal Year Midyear Budget based on equity and support of all city neighborhoods with the annual city grant of  $7,000.     We request that the annual neighborhood grant become variable.  Wilshire Montana Neighborhood Coalition  (Wilmont) was given a list of over 13,000 addresses in our neighborhood via a city process.  Historically the  city requested and sent our annual newsletter in recognition of the value of neighborhood groups.     We use our grant to send out an annual newsletter to all our Wilmont residents.  Wilmont is the largest  neighborhood in terms of addresses.  Currently, each neighborhood gets the same $7,000 grant.   Last year we obtained multiple estimates of the price to generate 13,000 copies, labels and postage for our  annual newsletter and on average it was about $1/newsletter.  The $7,000 does not cover this.  We request  that Council address these differences by still providing $7,000 per neighborhood groups that have 7,000 or  less addresses and provide a $1/address for other neighborhoods that have greater than 7,000  addresses.  For Wilmont, that would be $13,000 in 2023, or an addition of $6,000 to send newsletters out to  every address in our neighborhood.  Thank‐you    Thank‐you for ensuring the vitality and continued importance of the city's neighborhoods.    Board of Directors  Wilshire Montana Neighborhood Coalition (Wilmont)        Item 11.A 04/11/23 7 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1214 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) 1 Vernice Hankins From:Steve Bevilacqua <emb233@yahoo.com> Sent:Tuesday, April 11, 2023 10:48 AM To:councilmtgitems Subject:SUBJECT: FYE’24 BUDGET: Support Early Childhood EXTERNAL    Dear Mayor Davis, Mayor Pro Tem Negrete, and Honorable Councilmembers: I am writing to express my support for childcare in Santa Monica. As a parent who has sent their child to the Growing Place, I benefited from having access to quality childcare service at the Growing Place Marine Park Child Development Center. The Growing Place is fantastic and deserves your continued support. We are a household with two working parents and the Growing Place was an incredible asset and benefit to our lives when our daughter was enrolled there. Child care is essential for working parents who need a safe and nurturing environment for their children while they are at work, and it plays a critical role in the development of young children. Our City must do everything possible to support Santa Monica families and ensure its children have access to quality early education and care. This includes investing in early childhood education and providing financial assistance to families who need it most. I urge the Santa Monica City Council to prioritize childcare as a critical infrastructure component of our community. Investing in child care supports working families, promotes early childhood education, and ensures that all children and families in our community have the opportunity to thrive. Thank you for your attention to this important issue; keep children learning, parents earning, and communities growing in Santa Monica! Sincerely, Steve Bevilacqua 310.430.9837 Item 11.A 04/11/23 8 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1215 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) TO: SM CITY COUNCIL (councilmtgitems@santamonica.gov) SUBJECT: FYE’24 BUDGET: Support Early Childhood TO: Santa Monica City Council councilmtgitems@santamonica.gov SUBJECT: Fiscal Year 2024 Budget Support Early Childhood Education. Dear Mayor Davis, Mayor Pro Tem Negrete, and Honorable Council members: I am writing to express my support for childcare in Santa Monica. As a longtime resident of Santa Monica, I benefit from the Human Services Grant Program (HGSP) through the Growing Place Marine Park facility; I understand the importance of providing quality childcare services to families in our city. The education system in Santa Monica including programs like the Growing Place are a critical and important services to provide for families of our city. As a member of a two-parent working household, we would challenged if it were not for services provided by institutions like the Growing Place. Our county and city are becoming increasingly expensive and, in many cases, cost prohibitive. We battle landlords that refuse to maintain their buildings all the while continues to increase rents. We travel great distances to our places of work so that we may live in one of the best cities in Southern California which provides wonderful public services and public education for our two daughters. Childcare is essential for working parents who need a safe and nurturing environment for their children while they are at work. It also plays a critical role in the development of young children, providing them with early education and socialization opportunities that are essential for their future success. Unfortunately, access to quality infant/toddler/preschool programs is limited due to high costs, long waiting lists, and limited availability of licensed childcare providers. This significantly burdens working parents, especially low- income families who struggle to make ends meet. Our city must do everything it can to support Santa Monica families and ensure our children have access to quality child care. This includes investing in early childhood education and providing financial assistance to families who need it most. I urge the Santa Monica City Council to prioritize childcare as a critical infrastructure component of our community. Investing in childcare supports working families, promotes early education, and ensures that all children and families in our community can thrive. Please ensure our young children have access to early childhood education and socialization. Help our parents maintain and keep our much-needed jobs and careers. Furthermore, help our communities grow and thrive in Santa Monica. Sincerely, Zachary Hoevet 229 San Vicente Blvd, Apt H Santa Monica, CA 90402 503-260-9202 Item 11.A 04/11/23 9 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1216 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) 1 Vernice Hankins From:Bruce Leddy <bruce.leddy@gmail.com> Sent:Tuesday, April 11, 2023 11:56 AM To:councilmtgitems; Gleam Davis; David White Cc:emvandenburgh@gmail.com; Nancy Coleman Subject:City Council Mtg 4-11-23 – ITEM 11A EXTERNAL  To: City Council  From: NOMA  Re: City Council Agenda Item 11A  April 11, 2023  Dear Mayor, City Council and City Manager -  The Executive Board of NOMA (North of Montana Association) fully supports our neighboring organization, the Wilshire Montana Neighborhood Association (Wilmont), and their request to receive proportional funding from the City for resident outreach.  The strength of all neighborhood organizations depends on active participation by residents, and Wilmont's higher population means their outreach through mailings is more expensive. We request that you grant their request for additional funding to continue their good work which benefits their residents and the City.   Sincerely,  Bruce Leddy  On behalf of the Board of the North of Montana Association  Mayor Davis and Council Members, The Wilshire Montana Neighborhood Coalition (Wilmont) Board of Directors asks for the following change to be made to the Fiscal Year Midyear Budget based on equity and support of all city neighborhoods with the annual city grant of $7,000. Item 11.A 04/11/23 10 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1217 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) 2  We request that the annual neighborhood grant become variable. Wilshire Montana Neighborhood Coalition (Wilmont) was given a list of over 13,000 addresses in our neighborhood via a city process. Historically the city requested and sent our annual newsletter in recognition of the value of neighborhood groups.  We use our grant to send out an annual newsletter to all our Wilmont residents. Wilmont is the largest neighborhood in terms of addresses. Currently, each neighborhood gets the same $7,000 grant.  Last year we obtained multiple estimates of the price to generate 13,000 copies, labels and postage for our annual newsletter and on average it was about $1/newsletter. The $7,000 does not cover this. We request that Council address these differences by still providing $7,000 per neighborhood groups that have 7,000 or less addresses and provide a $1/address for other neighborhoods that have greater than 7,000 addresses. For Wilmont, that would be $13,000 in 2023, or an addition of $6,000 to send newsletters out to every address in our neighborhood. Thank-you Thank-you for ensuring the vitality and continued importance of the city's neighborhoods. Board of Directors Wilshire Montana Neighborhood Coalition (Wilmont) Item 11.A 04/11/23 11 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1218 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) From:Asa Greenberg To:councilmtgitems Subject:FYE’24 BUDGET: Support Early Childhood Date:Tuesday, April 11, 2023 1:04:03 PM EXTERNAL Dear Mayor Davis, Mayor Pro Tem Negrete, and Honorable Councilmembers: I am writing to express my support for childcare in Santa Monica. As a Santa Monica parent, resident, and member of the City's workforce, I benefited from having access to quality childcare service at the Growing Place Marine Park Child Development Center. Child care is essential for working parents who need a safe and nurturing environment for their children while they are at work, and it plays a critical role in the learning and development of young children. As a dual-working family/working parent whose child attended the program several years ago, I experienced firsthand the program's benefits, including extended hours for childcare. Few options if any in the area provide childcare in a wonderful environment for parents who need coverage throughout the working day. As my wife and I both work full-time, Growing Place Marine Park's extended hours (with early drop-off and late pickup available every day) were indispensable, enabling both of us to continue working in our demanding jobs without having to curtail our work schedules or make costly arrangements for at home care during the working day. Our City must do everything possible to support Santa Monica families and ensure its children have access to high quality early education and care. This includes investing in early childhood education and providing financial assistance to families who need it most. I urge the Santa Monica City Council to prioritize childcare as a critical infrastructure component of our community. Investing in child care supports working families, promotes early childhood education, and ensures that all children and families in our community have the opportunity to thrive. Thank you for your attention to this important issue; keep children learning, parents earning, and communities growing in Santa Monica! Sincerely, Asa Greenberg -- - Asa Greenberg Kilogram Entertainment Item 11.A 04/11/23 12 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1219 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) From:Kemper Donovan To:councilmtgitems Subject:FYE’24 BUDGET: Support Early Childhood Date:Tuesday, April 11, 2023 2:27:28 PM EXTERNAL Dear Mayor Davis, Mayor Pro Tem Negrete, and Honorable Councilmembers: I am expressing my support for Growing Place Marine Park to continue to receive City funding through the Human Services Grant Program; to sustain its programming to young children and families in our City. As a resident of Santa Monica and a working parent, I order the City to sustain this program. High-quality early childhood education and care supports the City’s priorities: Cultivate Economic Recovery - childcare is essential to working families, so we can continue our jobs/careers and participate in our local economy Equity and Social Diversity - women who must re-enter the workforce after childbirth need access to infant care Sustainable and Connected Community - child development centers enhance the well-being of families and benefit the social and economic well-being of the community For six years now, my husband and I have benefited from the excellent childcare and pedagogy consistently practiced by this wonderful program for the benefit of our two daughters. This is exactly the sort of program that deserves public funding. The benefits are endless for children and parents who attend this twenty-three-year established family resource. Please, invest in early childhood education and provide financial assistance to families who need it most; this will ensure all Santa Monica children and families have the opportunity to thrive! Thank you for your attention to this important issue. Sincerely, Kemper Donovan Item 11.A 04/11/23 13 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1220 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) Item 11.A 04/11/23 14 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1221 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) From:Megan Kelly To:councilmtgitems Subject:FYE’24 BUDGET: Support Early Childhood Date:Tuesday, April 11, 2023 2:40:30 PM EXTERNAL Dear Mayor Davis, Mayor Pro Tem Negrete, and Honorable Councilmembers: I am expressing my support for Growing Place Marine Park to continue to receive City funding through the Human Services Grant Program; to sustain its programming to young children and families in our City. As a resident of Santa Monica and a working parent, I urge the City to sustain this program. High-quality early childhood education and care supports the City’s priorities: Cultivate Economic Recovery - childcare is essential to working families, so we can continue our jobs/careers and participate in our local economy Equity and Social Diversity - women who must re-enter the workforce after childbirth need access to infant care Sustainable and Connected Community - child development centers enhance the well- being of families and benefit the social and economic well-being of the community The benefits are endless for children and parents who attend this twenty-three-year established family resource. Please, invest in early childhood education and provide financial assistance to families who need it most; this will ensure all Santa Monica children and families have the opportunity to thrive! I also urge you to support you to increase allocations for programs that support children and families. Thank you for your attention to this important issue. Sincerely, Megan Kelly Item 11.A 04/11/23 15 of 15 Item 11.A 04/11/23 11.A.i Packet Pg. 1222 Attachment: Written Comments [Revision 1] (5534 : FY 2022-23 Midyear Budget) City Council –April 11, 2023 FY 2022-23 Midyear Budget 11.A.j Packet Pg. 1223 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) June 2022 •FY 2022-23 Budget Adoption and Public Hearing March 11 Retreat •Staff presents 5 Year Forecast for all funds, state of operations •Council affirms & adopts priorities for FY 2023-25Biennial Budget April 11 •Council adopts FY 2022-23 midyear budget adjustments May 23 •Proposed FY 2023-25Budget Published •Presented to City Council –Study Sessions for feedback June 27 •FY 2023-25 Budget Public Hearing and Adoption The City’s Biennial Budget Timeline 11.A.j Packet Pg. 1224 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) General Fund -FY 2022-23 Midyear Revenue Adjustments FY 2022-23 Adopted Budget Midyear Adjustments FY 2022-23 Revised Budget $403.4 million $21.9 million $425.3 million Earlier Recovery (~$15M) •~$7M Sales and TUT Tax •~$3M Transient Occupancy (Hotel) Tax •~$1M Parking Facility Tax •$1M Business License Tax •~$2M Fees/Charges/Other Updated Data (~$7M) •~$3M Utility Users Tax •~$2M Property Tax •-$1.0M Documentary Transfer Tax •~$3M Administrative Indirect 11.A.j Packet Pg. 1225 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) General Fund FY 2022-23 Midyear Revenue Uses: 4 Revenue Sharing Obligations (Primarily Measure GSH) $3.5 million Items to maintain services $1.1 Corrections and Impacts of Labor Agreements $3.8 million Payment of settlement of claims brought against the City $3.1 Enables us to keep funds in Reserves for future working capital $10.3 million ~$21.9 million in Revenues 11.A.j Packet Pg. 1226 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) General Fund -Operating Budget FY 2022-23 Midyear Expenditure Adjustments ~ $11.6 million ~$3.5 million Adjustments for revenue- sharing payments and based on new information •GSH payment to SMMUSD ($2.5M) •GSH transfer to Affordable Housing Trust Fund ($1.2M) •Reductions based on parking revenue sharing and lease agreement ($.2M) ~$1.1 million Require immediate attention to maintain services •Increase capacity of youth programs, net +7.2 permanent FTEs and –4.3 as- needed FTEs ($.09M) •Eliminate transfer from CBB Fund ($.5M) •Funding for copper wire thefts ($.44M) •Funding for security services at Pier ($.11M) 11.A.j Packet Pg. 1227 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) General Fund -Operating Budget FY 2022-23 Midyear Expenditure Adjustments ~ $11.6 million ~$3.9 million Labor agreements and corrections not included in adopted budget •POA MOU •FEMA MOU •Correction Police Dept. budget •Correction for tenant counseling services funding •Net zero adjustment allocating funds for approved labor agreements $3.1 million Liability Self Insurance Fund •Payment for settlement of claims brought against the City 11.A.j Packet Pg. 1228 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) Revenues ~$42M •Funding Allocations, Grants & DA •BBB $18.1M and Local Return $.8M •Miscellaneous Grants $19.4M •DA & Impact Fees $6.4M •Water Use Reduction ($4M) •Pending rate changes •RRR collection fees ($2.1M) •Beach parking rates ($0.6M) •Interfund Contributions $4M Expenditures ~$4M •Miscellaneous Grants $2.3M •BBB .5FTE and $.05M •Housing Trust Fund $.5M •Administrative Indirect (all) $2.8M •Special Revenue and Community Broadband -$1.6M Other Funds Operating Budget FY 2022-23 Midyear Revenue and Expenditure Adjustments 11.A.j Packet Pg. 1229 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) FY 2022-23 Midyear CIP Budget Adjustments General Fund +$212,600 for Rooftop Fall Protection and Access Retrofits –funded with one-time CIP budget savings Other Funds Miscellaneous Grants $10M City Yards Modernization Microgrid Project $4.8M Lincoln Neighborhood Corridor Streetscape (LiNC) Project Wastewater Fund $0.45M Water Resources Tenant Improvements at City Yards Water Fund $1.1M Water Resources Tenant Improvements at City Yards $0.7M Roof and HVAC Repairs at Arcadia Water Treatment Plant $17.0 million net increase 11.A.j Packet Pg. 1230 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) Other Business •Adopt Resolution to apply for grant funds from the California Arts Council •Adopt Resolution authorizing execution of Master Agreement for State and Federal-Aid funded transportation projects with the California Department of Transportation •Authorization to accept a grant award from the U.S. Department of Justice (DOJ) Edward Byrne Memorial Justice Assistance Grant (JAG) •Authorization to accept a grant award from the U.S. Department of Justice (DOJ) Bureau of Justice Assistance 2022 Bulletproof Vest Partnership (BVP) Grant •Authorization to amend the City’s Fiscal Policy to allow for the suspension of the accelerated paydown of the City’s unfunded pension liability from FY 2022-23 to FY 2027-28 or later 11.A.j Packet Pg. 1231 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) Progress on FY 2023-25 Biennial Budget March 11, 2023 Council Retreat •Financial Overview •Adoption of Priorities AddressingHomelessness Clean & SafeSanta Monica Cultivate Economic Recovery & Expand Community &Cultural Amenities Racial Justice,Equity & Social Diversity Sustainable &Connected Community 11.A.j Packet Pg. 1232 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) Progress on FY 2023-25 Biennial Budget March 11, 2023 Council Retreat •Preliminary direction on FY 2023-25 Biennial Budget allocations Measure CS Fund Allocation Reallocation of $2.5M Organizational Realignment 11.A.j Packet Pg. 1233 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) Allocation of Measure CS funds •Expand Homeless Liaison Program in PD •Expand homeless multidisciplinary outreach team beyond Downtown & Beach •24/7 intakes at SAMOSHEL interim housing •Continue Clean & Safe programs in Police,Public Works, Code Enforcement, Parking •Short term rental enforcement •Homelessness Strategic Plan Implementing Priorities: FY 2023-25 11.A.j Packet Pg. 1234 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) Resource Reallocation for Restorations $2.5M GF •Support public, free, art and cultural programming and events through the Art of Recovery program •Further restore Library hours and services •Increase capacity of youth programs •Continue funding Playground Club •Establish RRR low-income reduced rate program •Create Small Business Tenant Improvement Fund •Restore Planning and Economic Development staffing to support economic development Diversity, Equity and Inclusion Fund •Designate 2% earnings from Out of Home Wayfinding agreement w/Big Outdoor •Approximately $100,000-$250,000 per year starting in FY 2025-2026 Implementing Priorities: FY 2023-25 11.A.j Packet Pg. 1235 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) May 12, 2023 •Budget Document published May 23, 2023 •Council Budget Study Session June 27, 2023 •Council Budget Adoption Progress on FY 2023-25 Biennial Budget 11.A.j Packet Pg. 1236 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget) Recommended Actions •Approve midyear budget adjustments and position and classification changes •Adopt resolutions: Establishing new classifications and adopting salary rates for various positions Authorizing the application for approved grant funds from the California Arts Council for the Santa Monica City Yards Modernization Microgrid Projects Authorizing execution of agency-state Master Agreement for State and Federal-Aid funded transportation projects with the California Department of Transportation, for the Lincoln Neighborhood Corridor Streetscape (LiNC) projects •Authorize staff to: Accept a grant award from the U.S. Department of Justice (DOJ) Edward Byrne Memorial Justice Assistance Grant (JAG) for implementation of the JAG 2022 Project “Overtime Operations to Keep Neighborhoods Safe” and execute all necessary documents to accept the grant and all grant renewals Accept a grant award from the U.S. Department of Justice (DOJ) Bureau of Justice Assistance 2022 Bulletproof Vest Partnership (BVP) Grant to support the replacement of bulletproof vests and execute all necessary documents to accept the grant and all grant renewals; Amend the City’s Fiscal Policy to allow for the suspension of the accelerated paydown of the City’s unfunded pension liability from FY 2022-23 to FY 2027-28 or later, pending restoration of City services and maintenance budgets and reserves; and, •Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. 11.A.j Packet Pg. 1237 Attachment: PowerPoint Presentation (5534 : FY 2022-23 Midyear Budget)