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CC SR 20150915 D - FY14-15 Budget Adjustments and Continuing AppropriationsCITY of MEMORANDUM PALOS VERDES TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS FROM: DEBORAH CULLEN, FINANCE DIRECTOR DATE: SEPTEMBER 15, 2015 SUBJECT: FY14-15 FISCAL YEAR-END BUDGET ADJUSTMENTS AND CONTINUING APPROPRIATIONS REVIEWED: DOUG WILLMORE, CITY MANAGER O'er Staff Coordinator: Kathryn Downs, Deputy Finance Director RECOMMENDATION 1. Adopt Resolution No. 2015- , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2014-41, THE BUDGET APPROPRIATION FOR FY14-15, TO REDUCE THE BUDGET FOR THE APPROVED CONTINUING APPROPRIATIONS. 2. Adopt Resolution No. 2015- , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2015-47, THE BUDGET APPROPRIATION FOR FY15-16, TO INCREASE THE BUDGET FOR THE APPROVED CONTINUING APPROPRIATIONS. 3. Adopt Resolution No. 2015- , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2014-41, THE BUDGET APPROPRIATION FOR FY14-15, TO ADJUST THE BUDGET IN VARIOUS FUNDS OF THE CITY. 4. Adopt Resolution No. 2015- , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2015-47, THE BUDGET APPROPRIATION FOR FY15-16, TO ADJUST THE BUDGET IN VARIOUS FUNDS OF THE CITY. FISCAL IMPACT There is no fiscal impact associated with the Proposed Continuing Appropriations. The FY14-15 FISCAL YEAR-END BUDGET ADJUSTMENTS AND CONTINUING APPROPRIATIONS September 15, 2015 Page 2 of 4 estimated June 30, 2016 fund balances presented during the 2015 budget process includes the expenditure of these appropriations; and continuing them from one year to the next has no impact on the estimated fund balances. Staff is requesting a number of FY14-15 adjustments to ensure budgetary compliance, and to provide for additional transfers between funds. Staff is also requesting several adjustments to correct the FY15-16 budget. The net fiscal impact of all requested General Fund adjustments is an $11,070 increase to the estimated General Fund Reserve at June 30, 2016. Revised Fund Balance Estimates at June 30, 2016: General Fund Reserve: $11,111,712 ($375,007 in excess of Policy Threshold) Equipment Replacement Fund: $ 1,854,767 ($130,885 in excess of Policy Threshold) BACKGROUND AND DISCUSSION Continuing Appropriations At the end of each fiscal year, Staff prepares a list of budgeted appropriations recommended for carryover into the next fiscal year. The list of Proposed Continuing Appropriations (Attachment A) identifies projects that were included in the FY14-15 budget, but were not completed by June 30, 2015. The majority of the continuing appropriation requests relate to ongoing Public Works projects. Many of these projects require a multi-year effort, must wait for approval from outside agencies, or require extensive planning and/or citizen engagement before commencing; and have, therefore, been carried over from year to year. Staff added an informational column to the list, noting the first year each project was appropriated. As discussed during the 2015 budget process, Public Works Staff recommended a minimal number of new projects for FY15-16; with the goal of completing many of the projects that had already been appropriated for FY14-15, or continued from prior years. There are at least two different ways that funds may legally be committed for capital projects: 1. Budget the full amount of the project (appropriate it); or 2. "Commit" the project via resolution by June 30th of each year. The "Commitment" would be reported as part of the CIP fund balance in the annual financial statements. Once the City is ready to begin the project (e.g. approval/funding from an outside agency was obtained), then that project may be budgeted from the "Committed" fund balance. The City has a long history of appropriating funding to capital projects by budgeting the funding (method #1 above), and carrying over the unspent appropriation year to year. 2 FY14-15 FISCAL YEAR-END BUDGET ADJUSTMENTS AND CONTINUING APPROPRIATIONS September 15, 2015 Page 3 of 4 With the 2016 budget process, Finance Staff will recommend "committing" funds by resolution for projects that are not likely to begin during FY16-17 (method #2 above). By taking this step, during the annual budget process City Council would have the opportunity to review the committed projects and determine if priorities or funding has changed. This step should be able to reduce the number of continuing appropriations each year; and the annually adopted budget will reflect the true annual expenditures for the City. Staff presented all budgeted appropriations for FY14-15, including the amounts requested for carryover, in the FY14-15 column of the 2015 Five -Year Financial Model that was prepared in conjunction with the FY15-16 budget. Therefore, estimated beginning fund balances presented with the FY15-16 budget were already reduced by the amount of the proposed continuing appropriations. Approval of these continuing appropriations will not change estimated ending fund balances at June 30, 2016. FYI 4-15 & FYI 5-16 Budget Adjustments Chapter 3.32 of Title 3 of the Rancho Palos Verdes Municipal Code sets forth guidelines related to the City's budget administration. Section 3.32.070 of the Code requires that all expenditures in excess of a program/function's budgeted allocation must be approved by supplemental appropriation by the City Council. A list of Proposed Budget Adjustments (Attachment B) has been prepared, and includes a brief description of each item. The impact to the General Fund is summarized below. FY14-15 Revenue Increase $180,000 FY14-15 Net Expenditure Increase 99,550 FY15-16 Net Expenditure Increase 69,380 Net Increase of General Fund Reserve $ 11;070 This report also includes proposed adjustments for activity related to the Utility User Tax (UUT) Claim Account, as summarized below. Claim Account Balance at June 30, 2014 $593,301 Additional Telecommunications UUT collected during FY14-15 120,167 FY14-15 Disbursements from Claim Account (190,467) Current Claim Account Balance $523,001 Staff requests the following transfers between funds, with no net fiscal impact: 1. Close the Building Replacement Fund and transfer the balance to the CIP Reserve, based upon City Council direction during the 2015 budget process; 2. Increase the budgeted transfer of Transient Occupancy Tax (TOT) to the CIP Reserve, based upon actual FY14-15 TOT revenue; and K, FY14-15 FISCAL YEAR-END BUDGET ADJUSTMENTS AND CONTINUING APPROPRIATIONS September 15, 2015 Page 4 of 4 3. Increase the budgeted transfer of Proposition C to the CIP Fund for the PVDE arterial rehabilitation project, based upon amounts approved by Metro. Finally, there are $20,000 of requests to increase Equipment Replacement Fund appropriations. Staff expects that the Equipment Replacement Fund will have about $150,000 of FY14-15 expenditure savings, which is more than sufficient to provide for the $20,000 of requests. Attachments A — Proposed Continuing Appropriations from FY14-15 to FY15-16 (page 5) B — Proposed Budget Adjustments FY14-15 & FY15-16 (page 11) Resolution No. 2015- , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2014-41, THE BUDGET APPROPRIATION FOR FY14-15, TO REDUCE THE BUDGET FOR THE APPROVED CONTINUING APPROPRIATIONS (page 16) Resolution No. 2015- , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2015-47, THE BUDGET APPROPRIATION FOR FY15-16, TO INCREASE THE BUDGET FOR THE APPROVED CONTINUING APPROPRIATIONS (page 19) Resolution No. 2015- , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2014-41, THE BUDGET APPROPRIATION FOR FY14-15, TO ADJUST THE BUDGET IN VARIOUS FUNDS OF THE CITY (page 22) Resolution No. 2015- , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2015-47, THE BUDGET APPROPRIATION FOR FY15-16, TO ADJUST THE BUDGET IN VARIOUS FUNDS OF THE CITY (page 24) ii Attachment A PROPOSED CONTINUING APPROPRIATIONS FROM FY14-15 TO FY15-16 Program First Appropriated Account ` BudgetSpent Available r' Request Description Staff requests a carryover of unused budget for various furniture purchases in Administration, to provide for recent City Manager Professional Services FY14-15 101-1002-411-32-00 125,000 45,074 79,926 $ 20,000 (staffing changes. Purchases of tax -defaulted parcels at 41 and 37 Cherryhill City Manager Land Purchase FY13-14 & FY14-15 '101-1002-411-71-00 115,000 12,223 102,777 102,777 (Lane are expected to be completed during FY15-16. Peafowl trapping to be completed by December 2015, based upon the Peafowl Management Plan adopted by City Council Animal Control Professional Services FY14-15 101-1025-421-32-00 111,515 81,180 30,335. 30,335 :on August 4, 2015. Continuity of Operations Plan ($25,000), and Replenish Supply Emergency Preparedness ',Caches ($8,000). Both projects were initiated during FY14-15, Professional Services FY13-14 & FY14-15 '101-1026-421-32-00 118,983 25,132 93,851 33,000 and will be completed in FY15-16. Information Technology Minor Data storage $20,000, and 3 laptops $6,000. Purchases were Equipment FY14-15 101-2030-41I-61-00 45,000 14,957 30,043 23,000 :delayed due to transition to a new IT Services provider- i Telephone handsets and other system equipment. Purchases Telephone Maintenance FY14-15 101-2035-411-43-00 12,000 - 12,000 10,000 !were delayed due to transition to a new IT Services provider. Traffic engineering studies for Sea Bluff & Hawthorne Blvd Traffic Management Professional Frontage Road and four intersections began late in FY14-15, Services FY14-15 101-3006-431-32-00 j 124,000 89,079 34,921 15,000 'and will be completed during FY15-16. i Development of the Municipal Separate Storm Sewer System (MS4) implementation, the Enhanced Watershed :Management Program (EWMP), and the Coordinated Integrated Monitoring Program (CIMP) have been an ongoing multi-year process. Extensive review by the Los Angeles Storm Water Quality Professional I Regional Water Quality Control Board has caused project Services FY13-14 ;101-3007-431-32-00 552,495 236,199 316,296 50,000 'delays. Staff anticipates completion by June 2016. !Staff requests carryover of unspent funds to complete the Sewer Maintenance Professional sewer system GIS layer, and sewer capacity study during FY15- Services FY14-15 101-3026-431-32-00 r 58,000 21,504 36,496 35,000 11116. :General Plan Update $20,000 - expected presentation to City !Council November 2015. Zone 2 EIR $23,500 - carryover request based upon recent City Council interest to reconsider FY02-03 (General certifying the Zone 2 EIR. Coast Vision Plan $2,000 - update Plan), FY09-10 per City Council direction on July 18, 2015. GIS Services (Zone2 EIR), and 11$10,000 - updates to the Zoning Map and Trails Network Plan, Planning Professional Services FY14-15 (Other) 101-4001-441-32-00 125,171 70,136 55,035 55,500 Ito be completed in FY15-16. Attachment A PROPOSED CONTINUING APPROPRIATIONS FROM FY14-15 TO FY15-16 Program FirstAppropriated Account Budget; Spent Available Request Description Printing of the General Plan update and Zoning Code $15,000 - kexpected during FY15-16, pending finalization of the i documents. Printing new business cards for staff and Planning 'Commission members due to new City domain address !$5,000. Budgetary compliance is by program; and although this Printing line item does not have sufficient funds for the entire $20,000 carryover, the Planning program as a whole Planning Printing FY09-10 101-4001-441-55-00 21,000 5,415 15,585 20,000 has sufficient availability for this request. Geotechnical Reviews $22,100 - several of the Monks case plaintiffs have not yet completed the planning/building permit process. Laserfiche & GIS scanning $25,000 -building plans FY09-10 (Monks), will be scanned into the City's systems during FY15-16. FY10-11 (Scanning), Geologic Review for General Plan $15,000 - review of the and FY12-13 open space hazard zoning areas related to updating the Building & Safety Professional (Geologic for General Plan and Zoning Map, to be completed during FY15- Services General Plan) 101-4002-441-32-00 197,877 96,050 101,827 62,100 16. Changes have been made to the NCCP document as a result of Natural Communities Conservation !recent parcel acquisitions and changes to the Nature Plan (NCCP) Professional Services FY97-98 1101-4005-441-32-00 I'I 75,053 75,053 75,053 Preserve. Staff expects to complete the document in FY15-16. SUBTOTAL GENERAL FUND $ 531,765 This appropriation was for the Abalone Cove Landslide ''Abatement District (ACLAD) to drill 2 dewatering wells. ACLAD has been reimbursed for one well. The carryover Landslide Dewatering Wells FY13-14 330-3030-461-73-00 170,000 59,575 110,425 85,000 '',would provide for the other well. This appropriation was for the City to drill 4 dewatering wells. The City is utilizing a hydrogeologist to determine the most is beneficial locations for the wells. Staff expects that drilling Landslide Dewatering Wells FY14-15 330-3043-461-73-00 360,000 360,000 360,000 (will be completed in summer 2016. Miraleste Arterial Street (Staff anticipates advertising for bids by December 2015, with Rehabilitation FY14-15 330-3031-461-73-00 j 2,570,000_ 35,438 2,534,562 2,534,562 ;construction scheduled for completion by June 2016. _ Residential Street Rehabilitation - _ _ FY10-11 through The combined project is underway; and construction is Prior Years' Programs FY13-14 ,330-3031-461-73-00 11 3,511,032 2,720,075 790,957 790,957 nearing completion, anticipated December 2015. j Staff anticipates to advertise bids for design services in Residential street Rehabilitation - IDecember 2015, with project completion scheduled for June FY14-15 Program FY14-15 ;330-3031-461-73-00 j' 2,229,400 2;229,400 2,229,400 ;2016. 0 Attachment A PROPOSED CONTINUING APPROPRIATIONS FROM FY14-15 TO FY15-16 Program First Appropriated Account Budget Spent Available Request Description ` ,The design has been completed, and bids will be advertised in Hawthorne Blvd Traffic Signal ;September 2015. Project award is scheduled for October Synchronization FY11-12 330-3031-461-73-00 708,312 24,684 683,628 683,628 12015, with project completion in January 2016. This project will be completed after the fiber optic conduits lfrom the Traffic Signal Synchronization project have been installed (scheduled for November 2015). Construction of the Hawthorne Blvd Pedestrian street improvements should last about 6 months, with Improvements FY10-11 330-3031-461-73-00 1,246,190 5,839 1,240,351 1,240,351 lcompletion in August 2016. PVDE Safety Improvements - Construction bids will be advertised by the end of September Guardrails FY08-09 330-3031-461-73-00 268,794 268,794 268,794 '2015, with project completion scheduled for December 2015. This remaining appropriation will be combined with the PVDE !Safety Improvements - Bronco Drive project budgeted in FY15- PVDE Safety Improvements - 16; which is currently in the design phase. Staff expects to Headland Drive FY13-14 330-3031-461-73-00 I!. 38,222 11,427 26,795 26,795 !complete the project during FY15-16. 'This project is being reprogrammed in the State Transportation Improvement Program, then must be approved by the LA County Metropolitan Transportation PVDS Safety Improvements - lAuthority. Construction can begin upon receiving approval, Bikeways FY09-10 330-3031-461-73-00 779,975 - 779,975 779,975 'anticipated July 2016. !Plans and specs are being revised to comply with new drought 1330-3031-461-73-00 mandates. Project construction is expected to begin in PVDW Median Improvements FY09-10 & FY10-11 473,690473,690 473,690 December 2015, with completion by March 2016. This is an interim project to address the S-curve at the east end of the landslide area roadway. The project has been PVDS Realignment - East End FY13-14 1330-3031-461-73-00 4.5.8,672 - 4_58_,672 458,672 delayed by the need to perform an environmental study. 'Project design has begun, and is expected to be completed PVDS Realignment - Design Full 'll 2016. Construction of the realignment is currently Length FY13-14 330-3031-461-73-00 272,485 8,063 264,422 (January 264,422 planned for FY18-19 (per the 2015 Capital Improvement Plan). The update is currently being finalized. The consultant will facilitate integration of the updated Pavement Management Pavement Management Plan Update FY11-12 1330-3031-461-32-00 I 69,600 69,600 69,600 !System to the City's GIS, to be completed by June 2016. This project was delayed due to competing priorities. The 'design and construction should be completed in FY15-16, Eastview Dog Park FY14-15 330-3033-461-73-00 50,000 - 50,000 50,000 ; pending the Parks Use Master Plan. 7 Attachment A PROPOSED CONTINUING APPROPRIATIONS FROM FY14-15 TO FY15-16 Program First Appropriated Account Budget Spent Available '- Request- Description Staffexpects to advertise bids in October 2015 for preparation Ladera Linda Master Plan I FY11-12 330-3033-461-32-00 100,000 6,278 93,722 93,722 of the Ladera Linda Master Plan. Public review of the project is still in process. Construction of Lower Hesse Park Improvements FY14-15 ;330-3033-461-73-00 500,000 12,425 487,575 487,575 the improvements is scheduled for spring 2016. Due to competing priorities, the project was delayed. Design PVIC Building Sign & Screening Wall FY14-15 330-3033-461-73-00 110,000 - 110,000 110,000 and construction can be completed in FY15-16. The project was not completed in FY14-15 due to additional citizen engagement efforts. The project can be completed in Sunnyside Segment Trail --- FY14-15330-3033-461-73-00 465,000 --- 68,564 396,436 396,436,FY15-16. - - il - - - - --- .3 __-46 -- - ....- ---- - - - ---- The first phase of the project has been completed, and the Americans with Disabilities Act (ADA) second phase is currently in design. Project completion is Transition Plan Projects FY13-14 & FY14-15 '330-3036-461-73-00 707,336 97,199 610,137 610,137 :expected in FY15-16. John C. McTaggart Memorial Hall & _ ----- - _ _-- -- -__- _-__---___--_ City Council Chambers ,Much ofthe project was completed in FY14-15. Installation of Improvements FY13-14 1330-3036-461-73-00 225,556 131,314 94,242 94,242 new broadcast equipment will be completed in FY15-16. Staff is currently working on project planning, and anticipates (that additional funding will be required to complete Hesse Park & Ryan Park Fiber Optic I construction during FY15-16. A report to City Council is Cabling FY14-15 330-3036-461-73-00 320,000 320,000 320,000 (forthcoming for this project. Restroom improvements have been completed. Design for the remainder of improvements will be completed in September 2015, with construction to begin shortly RPVty Building Improvements FY13-14 & FY14-15 '.330-3036-461-73_-_00_ j 141,416 46,621 94,795 94,795 'thereafter. Project completion is expected spring 2016. Due to competing priorities, the project was delayed. Design Recognition Wall of Honor FY13-14 1330-3036-461-73-00 40,000 40,000 i 40,000 ;and construction can be completed in FY15-16. (Staff is requesting a carryover of only $50,000 of this i appropriation to design the project. Once the design is completed, Staff will present a recommendation to City Council to re -budget the project in a future year. There have been delays associated with state reviews of the Enhanced !Watershed Management Program; however, Staff expects to Drainage Area Monitoring System FY13-14 & FY14-15 1330-3037-461-73-00 500,000 500,000 50,000 !,complete the design work in FY15-16. SUBTOTALCIPFUND $ 12,612;753 Storm Drain System -Desig n of Point I Design work is underway, and should be completed by the Repairs FY14-15 501-3052-431-32-00 150,000 150,000 150,000 lend of the year. Altamira Canyon Drainage - Project An RFP has been issued for a design firm. Staff expects to Study Report FY14-15 1501-3052-431-32-00 1 500,000 - 500,000 500,000 present a recommendation to City Council by the end of 2015. M Attachment A PROPOSED CONTINUING APPROPRIATIONS FROM FY14-15 TO FY15-16 Program First Appropriated Account Budget Spent Available Request Description Marguerite Open Channel Erosion & Other PVDS Drainage Improvements Due to competing priorities, the project was delayed. The East of BarkenUne FY13-14 501-3052-431 73 00 776,685 16,345 � 760,340 760,340 project can be completed in FY15-16. Tr_ _2255. 52.43_ T-_--_ T The project scope has changed, and now requires geotechnical engineering to determine if placing lightweight PVDS Drainage Improvements at fill in the roadway will be detrimental to the landslide. Sacred Cove FY14-15 501-3052-431-73-00 450,000 450,000 450,000 :Construction is scheduled for completion in spring 2016. 11The design for this project was completed in FY13-14. Competing priorities have impacted delivery. Construction is Roan Drainage System (Via Colinita & ,scheduled to begin in fall 2015, with completion by December Vickery Canyon) FY11-12 501-3052-431-73-00 231,095 231,095 231,095'2015. ,The project was postponed to be combined with the FY15-16 :appropriation, for a more cost-effective project (economies of Storm Drain Lining FY13-14 & FY14-15 1111501-3052-431-73-00 799,470 799,470 799,470 Iscale). The project can be completed in FY15-16. SUBTOTAL WATER QUALITY FLOOD PROTECTION (STORM DRAIN) FUND $ 2,890,905 !This project has been combined with the Hawthorne Blvd Traffic Signal Synchronization project to minimize the impact on the community. The $90,000 appropriation is for all traffic signals in the City, which will be done in conjunction with the Hawthorne Blvd project. The project is in the design phase, sand is expected to begin fall 2015, with completion in April 12016 (after completion of the Synchronization project in Traffic Signal Battery Back -Up FY11-12 202-3004-431-73-00 90,000 90,000 90,000 '':January 2016). j 'This appropriation included $50,000 requested with the FY14- 15 Midyear Budget Review for replacement of grinder pumps. Abalone Cove Sewer Maintenance FY14-15 225-3025-431-43-00 132,000 88,983 43,017 43,017 11Staff expects to complete the replacement in FY15-16. Design of the PVIC Phase II Exhibit Concept Plan was Donor Restricted Contributions completed in August 2015. The carryover request will provide 1228-5028-451-32-00 Professional Services FY14-15 24,000 17,500 6,500 6,500 '11funding for work performed in July and August 2015. !The project plans have been completed, and bids will be CDBG - PVDW ADA Access ladvertised in September 2015. Construction completion is improvements FY14-15 1310-3093-461-73-00 197,687 22,730 174,957 174,957 :expected December 2015. CDBG - Mira Catalina ADA Access _ improvements FY13-14 ;310-3097-461-73-00 68,190 3,440 64,750 64,750 ',This project is scheduled to be completed in September 2015. fl PROPOSED CONTINUING APPROPRIATIONS FROM FY14-15 TO FY15-16 Program First Appropriated Account Budget I Equipment Replacement Minor Computer Equipment FY14-15 681-2082-499-61-00 ; 209,500 I Equipment Replacement Capital Computer Equipment FY09-10 681-2082-499-75-20 1,218,950 SUBTOTAL OTHER FUNDS Attachment A Spent Available - Request Description 15 Desktop replacements $30,000, Networking Equipment $20,000, Data Storage upgrade $30,000, GIS layer $10,000, and Desktop UPS devices $5,000. These purchases were delayed due to the transition to a new IT Services provider. 108,032 101,468 95,000 Purchases will be completed in FY15-16. Cityworks (Public Works system) implementation $60,000 - the purchase was approved in FY14-15, and implementation has begun. Permit & Planning system $285,000 -the RFP will be released in fall 2015, with a contract recommendation presented to City Council during FY15-16. Financial System $550,000 - a purchase recommendation is expected to be 256,635 962,315 895,000 ,'presented during FY15-16. $ 1,369,224 10 Attachment B PROPOSED BUDGET ADJUSTMENTS FY14-15 & FY15-16 Fiscal Year Description- Account Amount Justification State Mandated CostThe state unexpectedly released funds to cities for state - Reimbursements & Vehicle License 101-6000-369-20-00 mandated cost reimbursements during FY14-15 ($162,000), as FY14-15 Fees 101-6000-335-10-00 180,000 well as a residual vehicle license fee payment ($18,000). The City Clerk's Office advertised more Committee Member recruitments than anticipated during FY14-15 (e.g. FY14-15 City Clerk Advertising 101-1004-411-54-00 1,000 Infrastructure Management Advisory Committee). Additional professional service hours were necessary to meet FY14-15 �RPVty Professional Services 101-1006-411-32-00 12,000 service level demands during FY14-15.. The FY14-15 Sheriff contract approved by City Council on June 17, 2014 was $4,334,281. This included a liability trust fund contribution of $166,703; which was based on 4% of the contract. Effective January 1, 2015, the liability trust fund contribution increased to 5%, bringing the total contract to $4,355,119. Actual billings were $4,345,828. The original budget estimate of $4,306,900 was not increased for the FY14-15 Sheriff Professional Services 101-1021-421-32-00 39,000 actual contract cost. Staff requests an adjustment accordingly. The FY14-15 budget, in error, did not include an allocation for School Crossing Guards. The FY15-16 budget has been corrected, and includes the $10,000 allocation necessary to Public Safety Special Programs fund this program. A year-end adjustment is requested to FY14-15 Professional Services 101-1024-421-32-00 10,000 fund the FY14-15 services. 1� Attachment B PROPOSED BUDGET ADJUSTMENTS FY14-15 & FY15-16 Fiscal Year Description Account Amount Justification Due to staffing vacancies, additional part-time help was used to support routine accounting processes. Staff was also 'required to work overtime to keep up with deadlines. Finally, temporary professional accounting services were utilized for 4 months. At Midyear, the budget was reduced to claim staff Finance Part -Time Wages, Over -Time vacancy savings, which did not take into account the additional FY14-15 Wages, and Professional Services 101 -2020 -411 -XX -00 23,000 costs necessary to keep up with the workload. Due to new financial reporting standards, the City ordered special reports from CalPERS to facilitate preparation of required financial statement disclosures for the employee FY14-15 Finance Professional Services 101-2020-411-32-00 2,550 pension plans. The City's customers have increased use of credit cards to pay for permits and other transactions, resulting in merchant FY14-15 Finance Misc Expenditures 101-2020-411-69-00 10,000 credit card processing fees in excess of budget. Due to staffing turnover, additional equipment and furniture FY14-15 Public Works Minor Equipment 101-3001-431-61-00 2,000 was purchased to facilitate re -organization of work space. Staffing changes resulted in a shift of full-time wage allocations from the Planning Program to the View Restoration Program. This adjustment simply shifts budgeted funding from one FY14-15 Planning Full -Time Wages 101-4001-441-11-00 (6,000) program to another, with no net fiscal impact. FY14-15 View Restoration Full -Time Wages 101-4004-441-11-00 6,000 See above. NET FY14-15 IMPACTTO`GENERAL FUND RESERVE 80,450 IN Attachment B PROPOSED BUDGET ADJUSTMENTS FY14-15 & FY15-16 Fiscal Year Description Account Amount Justification As reported previously, there was a period during which the City's telecommunications providers continued to collect UUT until the transition in their billing systems was complete. Staff requests an adjustment to add this additional revenue to the FY14-15 Utility User Tax (UUT) Revenue 101 -6000 -315 -XX -00 120,167 UUT Claim Account. I A total of $713,468 has been set-aside in the General Fund for UUT Claims ($593,301 set aside for FY13-14, plus $120,167 collected during FY14-15). During FY14-15, claims administration expense of $72,961 (capped at $80,000 per the City Council approved contract), and $3,570 of language translation costs were incurred. In addition, $113,936 of refunds were distributed. Staff requests an adjustment to provide for FY14-15 expenditure of the funds set aside. Once Misc Expenditures for the final claims distribution is made in FY15-16, staff will Telecommunications UUT Claims & request a FY15-16 adjustment for the additional disbursement FY14-15 iAdministration 101-6000-411-69-00 190,467 from the UUT Claim Account. NET FY1415 IMPACT TC►UUT CLAIM ACCOUNT-, (700300) The City's fleet of vehicles required more maintenance than FY14-15 Vehicle Maintenance Expense 681-3081-499-43-00 5,000 lanticipated. As directed by City Council during the 2015 budget process, the Building Replacement Fund will be closed and the fund Transfer Building Replacement Fund balance transferred to the CIP Reserve. This adjustment FY14-15 Balance to CIP 686-3086-491-91-00 940,000 provides for the fiscal year-end transfer between funds. Transfer Building Replacement Fund FY14-15 Balance to CIP 330-3030-391-10-00 i 940,000 See above. 13 Attachment B PROPOSED BUDGET ADJUSTMENTS FY14-15 & FY15-16 Fiscal Year Description Account Amount Justification Actual FY14-15 TOT revenue was $4.8 million, compared to the Transfer amount equal to Transient budgeted amount of $4.7 million. The adjustment will allow FY14-15 Occupancy Tax to CIP 101-6000-491-91-00 140,000 for a transfer of the full amount of TOT received for FY14-15. Transfer amount equal to Transient I FY14-15 Occupancy Tax to CIP 330-3030-391-10-00 140,000 See above. Additional Proposition C funding is available for the PVDE Transfer Proposition C to CIP for ! arterial rehabilitation project. This adjustment will allow for FY14-15 PVDE Improvements 215-3015-491-91-00 271,976 the additional transfer before the FY14-15 books are closed. Transfer Proposition C to CIP for FY14-15 PVDE Improvements 330-3031-391-10-00 271,976 See above. NET FY1445 IMPACT OF;, OTHER FUND" ADJUSTMENTS (5,000} As part of the 2015 budget process, the RPVty program went through numerous revisions to provide additional staff hours for increased service, as well as changes in hourly rates. As a result of the revisions, an error was made, and the final adopted FY15-16 budget for professional services was insufficient. In addition, the budget anticipated continuation of part-time employee staffing; which has since been shifted to consulting services. The net appropriation increase due to these corrections is $69,380. The FY15-16 revised program budget will be $213,700 ($144,320 adopted + $69,380 requested). As a comparison, total FY14-15 actual program FY15-16 RPVty Professional Services 101-1006-411-32-00 97,100 expenditures were $180,445. FY15-16 RPVty Part -Time Wages 101-1006-411-12-00 (25,750) See above. FY15-16 RPVty Part -Time Benefits 101-1006-411-29-00 (1,970) See above. NET FY2S-16 IMPACT TO GENERAL FUND (69,3$0) 14 PROPOSED BUDGET ADJUSTMENTS FY14-15 & FY15-16 IFY15-16 (Vehicle Purchases Attachment B Amount Justification Purchase of a Cargo Trailer, as a portable public outreach station for the Recreation & Parks Department, was originally budgeted in FY14-15 for $10,000. However, the program budget was consumed with additional vehicle maintenance, as well as equipment necessary to outfit the new truck purchased' by Public Works. Staff requests to re -budget the purchase of the Cargo Trailer in FY15-16, with a more realistic estimate based on initial bidding results. The trailer will also be used for 681-3081-499-76-00 I 15,000 Isupply storage, for the monthly volunteer events. 15 RESOLUTION NO. 2015 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2014-41, THE BUDGET APPROPRIATION FOR FY14-15, TO REDUCE THE BUDGET FOR THE APPROVED CONTINUING APPROPRIATIONS WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council: and WHEREAS, on June 17, 2014, the City Council of the City of Rancho Palos Verdes adopted Resolution 2014-41, approving a spending plan and appropriating the budget for FY14-15: and WHEREAS, certain projects included in the FY14-15 budget will be carried over as continuing appropriations to FY15-16; and WHEREAS, the City Council desires that the FY14-15 budget be reduced for each of the continuing appropriations carried over to FY15-16. BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES: The following adjustments are made to the FY14-15 budget: Decrease the General Fund budaet as follows: Account Description Account Number Request City Manager Professional Services 101-1002-411-32-00 $ 20,000 City Manager Land Purchase 101-1002-411-71-00 102,777 Animal Control Professional Services 101-1025-421-32-00 30,335 Emergency Preparedness Professional Services 101-1026-421-32-00 33,000 Information Technology Minor Equipment 101-2030-411-61-00 23,000 Telephone Maintenance 101-2035-411-43-00 10,000 Traffic Management Professional Services 101-3006-431-32-00 15,000 Storm Water Quality Professional Services 101-3007-431-32-00 50,000 Sewer Maintenance Professional Services 101-3026-431-32-00 35,000 Planning Professional Services 101-4001-441-32-00 55,500 Planning Printing 101-4001-441-55-00 20,000 Building & Safety Professional Services 101-4002-441-32-00 62,100 Natural Communities Conservation Plan (NCCP) Pro Services 101-4005-441-32-00 75,053 Decrease the Street Maintenan Traffic Signal Improvements 202-3004-431-73-00 90,000 16 jecrease the Abalone Cove Sewer Ulstrlct 1-und budget as tollows: Account Description Account Number Request' Abalone Cove Sewer Maintenance 225-3025-431-43-00 43,017 Decrease the Donor Restricted Contributions Fund budget as follows: Account Description Account Number Request Donor Restricted Contributions Professional Services 228-5028-451-32-00 6,500 Uecrease the Uommunity Uevelopment biocKyrant Fund budget as tollows: Account Description Account Number Request CDBG ADA Improvements 310-3093-461-73-00 174,957 CDBG ADA Improvements 310-3097-461-73-00 64,750 Account Description Infrastructure Admin Improvements Landslide Improvements Street Improvements Pro Services Street Improvements Park Improvements Pro Services Park Improvements Building Improvements Water Quality Improvements Decrease the Water Qualitv Flood P 330-3030-461-73-00 85,000 330-3043-461-73-00 360,000 330-3031-461-32-00 69,600 330-3031-461-73-00 9,751,246 330-3033-461-32-00 93,722 330-3033-461-73-00 1,044,011 330-3036-461-73-00 1,159,174 330-3037-461-73-00 50,000 FP) Fund budaet as fo Water Quality Flood Protection Pro Services 501-3052-431-32-00 650,000 Water Quality Flood Protection Improvements 501-3052-431-73-00 2,240,905 Decrease the Eauiament Rel,lacement Fund budaet as follows: Account Description Account Number Request' Equipment Replacement Minor Computer Equipment 681-2082-499-61-00 95,000 Equipment Replacement Capital Computer Equipment 681-2082-499-75-20 895,000 PASSED, APPROVED, AND ADOPTED THE 15th DAY OF SEPTEMBER 2015. I•_rl[MO MAYOR 17 CITY CLERK State of California ) County of Los Angeles )ss City of Rancho Palos Verdes ) I, CARLA MORREALE, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2015- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on September 15, 2015. CITY CLERK CITY OF RANCHO PALOS VERDES W-0 RESOLUTION NO. 2015 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2015-47, THE BUDGET APPROPRIATION FOR FY15-16, TO INCREASE THE BUDGET FOR THE APPROVED CONTINUING APPROPRIATIONS WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council: and WHEREAS, on June 16, 2015, the City Council of the City of Rancho Palos Verdes adopted Resolution 2015-47, approving a spending plan and appropriating a budget for FY15-16: and WHEREAS, certain projects included in the FY14-15 budget will be carried over as continuing appropriations to FY15-16; and WHEREAS, the City Council desires that the FY15-16 budget be increased for each of the continuing appropriations carried over from FY14-15. BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES: The following adjustments are made to the FY15-16 budget: Increase the General Fund budaet as follows: Account Description Account Number Request City Manager Professional Services 101-1002-411-32-00 $ 20,000 City Manager Land Purchase 101-1002-411-71-00 102,777 Animal Control Professional Services 101-1025-421-32-00 30,335 Emergency Preparedness Professional Services 101-1026-421-32-00 33,000 Information Technology Minor Equipment 101-2030-411-61-00 23,000 Telephone Maintenance 101-2035-411-43-00 10,000 Traffic Management Professional Services 101-3006-431-32-00 15,000 Storm Water Quality Professional Services 101-3007-431-32-00 50,000 Sewer Maintenance Professional Services 101-3026-431-32-00 35,000 Planning Professional Services 101-4001-441-32-00 55,500 Planning Printing 101-4001-441-55-00 20,000 Building & Safety Professional Services 101-4002-441-32-00 62,100 Natural Communities Conservation Plan (NCCP) Pro Services 101-4005-441-32-00 75,053 Increase the Street Maintenance Fund budaet as fol Traffic Signal Improvements 202-3004-431-73-00 90,000 19 Cove Sewer Abalone Cove Sewer Maintenance u 225-3025-431-43-00 ` 43,017 Increase the Donor Restricted Contributions Fund budget as follows: Account Description Account Number Request Donor Restricted Contributions Professional Services 228-5028-451-32-00 6,500 Increase the Community Development Block Grant Fun Account Description CDBG ADA Improvements CDBG ADA Improvements Increase the Capital Im Infrastructure Admin Improvements Landslide Improvements Street Improvements Pro Services Street Improvements Park Improvements Pro Services Park Improvements Building Improvements Wate r Qual ity Improvements nt Proiects Fund bu as fol 310-3093-461-73-00 174,957 310-3097-461-73-00 64,750 follows: 330-3030-461-73-00 85,000 330-3043-461-73-00 360,000 330-3031-461-32-00 69,600 330-3031-461-73-00 9,751,246 330-3033-461-32-00 93,722 330-3033-461-73-00 1,044,011 330-3036-461-73-00 1,159,174 330-3037-461-73-00 50,000 Increase the Water Quality Flood Protection (WQFP) Fund budget as follows: Account Description Account Number Request Water Quality Flood Protection Pro Services 501-3052-431-32-00 650,000 Water Quality Flood Protection Improvements 501-3052-431-73-00 2,240,905 Increase the Equipment Replacement Fund budget as follows: AccountDescription Account Number Request Equipment Replacement Minor Computer Equipment 681-2082-499-61-00 95,000 Equipment Replacement Capital Computer Equipment 681-2082-499-75-20 895,000 PASSED, APPROVED, AND ADOPTED THE 15th DAY OF SEPTEMBER 2015. ATTEST: 411 CITY CLERK State of California ) County of Los Angeles )ss City of Rancho Palos Verdes ) I, CARLA MORREALE, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2015- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on September 15, 2015. CITY CLERK CITY OF RANCHO PALOS VERDES 21 RESOLUTION NO. 2015 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2014-41, THE BUDGET APPROPRIATION FOR FY14-15, TO ADJUST THE BUDGET IN VARIOUS FUNDS OF THE CITY WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council: and WHEREAS, on June 17, 2014, the City Council of the City of Rancho Palos Verdes adopted Resolution 2014-41, approving a spending plan and authorizing a budget appropriation for FY14-15: and WHEREAS, certain programs included in the FY14-15 budget will have revenue and expenditures which vary from the adjusted budget; and WHEREAS, the City Council desires that the FY14-15 budget be adjusted for each of these programs to assure budgetary compliance. BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES: The following adjustments are made to the FY14-15 budget: Adjust the General Fund Revenue budget as follows: Account Description Account Number Amount State Mandated Cost Reimbursements 101-6000-369-20-00 162,000 Vehicle License Fees 101-6000-335-10-00 18,000 Utility User Tax (UUT) Revenue 101 -6000 -315 -XX -00 120,167 Adjust the General Fund Expenditure budget as follows: Account Description Account Number Amount City Clerk Advertising 101-1004-411-54-00 1,000 RPVty Professional Services 101-1006-411-32-00 12,000 Sheriff Professional Services Public Safety Special Programs Professional Services Finance Part -Time Wages, Over -Time Wages, & Pro Services Finance Professional Services Finance Misc Expenditures Public Works Minor Equipment Planning Full -Time Wages View Restoration Full -Time Wages Misc Exp forTelecommUUT Claims & Admin 101-1021-421-32-00 39,000 101-1024-421-32-00 10,000 101 -2020 -411 -XX -00 23,000 101-2020-411-32-00 2,550 101-2020-411-69-00 10,000 101-3001-431-61-00 2,000 101-4001-441-11-00 (6,000) 101-4004-441-11-00 6,000 101-6000-411-69-00 190,467 22 Adjust the General Fund Transfers budget as follows: Account Description Account Number Amount Transfer amount equal to Transient Occupancy Tax to CIP 101-6000-491-91-00 140,000 Transfer Proposition C to CIP for PVDE Improvements 215-3015-491-91-00 271,976 Adiust the Capital Improvement Proiects Fund budaet as follows: Account Description Account Number Amount Transfer Building Replacement Fund Balance to CIP 330-3030-391-10-00 940,000 Transfer amount equal to Transient Occupancy Tax to CIP 330-3030-391-10-00 140,000 Transfer Proposition C to CIP for PVDE Improvements 330-3031-391-10-00 271,976 Adjust the Equipment Replacement Fund Account Description Vehicle Maintenance Expense Adjust the Building Replacement Fund 681-3081-499-43-00 5,000 Transfer Building Replacement Fund Balance to CIP 686-3086-491-91-00 940,000 PASSED, APPROVED, AND ADOPTED THE 15th DAY OF SEPTEMBER 2015. MAYOR �r_:�3j CITY CLERK State of California ) County of Los Angeles )ss City of Rancho Palos Verdes ) I, CARLA MORREALE, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2015- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on September 15, 2015. CITY CLERK CITY OF RANCHO PALOS VERDES 23 RESOLUTION NO. 2015 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2015-47, THE BUDGET APPROPRIATION FOR FY15-16, TO ADJUST THE BUDGET IN VARIOUS FUNDS OF THE CITY WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council: and WHEREAS, on June 16, 2015, the City Council of the City of Rancho Palos Verdes adopted Resolution 2015-47, approving a spending plan and authorizing a budget appropriation for FY15-16: and WHEREAS, certain programs included in the FY15-16 budget will have expenditures which vary from the adjusted budget; and WHEREAS, the City Council desires that the FY15-16 budget be adjusted for each of these programs to assure budgetary compliance. BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES: The following adjustments are made to the FY15-16 budget: Adiust the General Fund Expenditure budaet as follows: Account Description Account Number Amount RPVty Professional Services 101-1006-411-32-00 97,100 RPVty Part -Time Wages 101-1006-411-12-00 (25,750) RPVty Part -Time Benefits 101-1006-411-29-00 (1,970) Adjust the Equipment Replacement Fund budget as follows: Account Description Account Number Amount Vehicle Purchases 681-3081-499-76-00 15,000 PASSED, APPROVED, AND ADOPTED THE 15th DAY OF SEPTEMBER 2015. ATTEST: CITY CLERK State of California ) MAYOR ME County of Los Angeles )ss City of Rancho Palos Verdes ) I, CARLA MORREALE, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2015- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on September 15, 2015. CITY CLERK CITY OF RANCHO PALOS VERDES 25