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CC SR 20211221 H - Year-End Unaudited Financial Report CITY COUNCIL MEETING DATE: 12/21/2021 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action on the FY 2020-21 Year-end Unaudited Financial Report and the FY 2021-22 First Quarter Report. RECOMMENDED COUNCIL ACTION: (1) Receive and file the FY 2020-21 Year-end Unaudited Financial Report; (2) Approve the Purchase Order Carryover Schedule of $2,784,879 from FY 2020- 21 to FY 2021-22; (3) Approve Continuing Appropriations of $522,800 from FY 2020-21 to FY 2021-22; (4) Approve additional appropriation of $333,000 for FY 2021-22 transfers-out from General Fund to the Employee Pension Fund. (5) Approve decreasing FY 2020-21 Year-end Adopted Budget for the Purchase Order Carryover Schedule of $2,784,879 and Continuing Appropriations of $522,800 as follows: $1,282,151 (General Fund), $322,348 (Gas Tax), $40,129 (1911 Act Street Lighting), $241,011 (Proposition A), $142,897 (Proposition C), $26,855 (Abalone Cove Sewer), $137,855 (CDBG), $639,282 (Capital Infrastructure Program), $163,897 State Grant Fund, $187,415 (Quimby Fund), $23,839 (Measure W), and $100,000 (Measure R); (6) Approve increasing FY 2021-22 Year-end Adopted Budget for the FY 2020-21 Purchase Order Carryover Schedule of $2,784,879 and Continuing Appropriations of $522,800 as follows: $1,282,151 (General Fund), $322,348 (Gas Tax), $40,129 (1911 Act Street Lighting), $241,011 (Proposition A), $142,897 (Proposition C), $26,855 (Abalone Cove Sewer), $137,855 (CDBG), $639,282 (Capital Infrastructure Program), $163,897 State Grant Fund, $187,415 (Quimby Fund), $23,839 (Measure W), and $100,000 (Measure R); and, (7) Receive and file the FY 2021-22 First Quarter Financial Report. FISCAL IMPACT: The recommended Council actions will increase the FY 2021-22 budget by $3,640,679 in various funds. Amount Budgeted: N/A Additional Appropriation: $3,640,679 Account Number(s): See Attached Schedule C ORIGINATED BY: Christopher Browning, Senior Administrative Analyst Vina Ramos, Deputy Director of Finance REVIEWED BY: Trang Nguyen, Director of Finance APPROVED BY: Ara Mihranian, City Manager 1 CITYOF RANCHO PALOS VERDES V(L ATTACHED SUPPORTING DOCUMENTS: A. Purchase Order Carryover Schedule (page A-1) B. Additional Appropriation Schedule (page B-1) BACKGROUND: The following financial report as of June 30, 2021 is presented for the City Council’s review. The year-end report is one of the financial reports prepared annually to deliver results of the fiscal year that started on July 1, 2020 and ended on June 30, 202 1. The purpose of the report is to compare actual revenues and expenditures over year -end estimates, with the emphasis of the General Fund. The FY 2020-21 year-end report includes the following: ➢ General Fund year-end results ➢ General Fund balance reconciliation ➢ Capital Improvement Program, Special Revenue Funds, Other Funds results ➢ Purchase Order carryover and Continuing Appropriation requests The City’s external auditor, CliftonLarsonAllen LLP (formerly White Nelson Diehl), started the audit process in mid-October and is estimated to finish by mid-December. Therefore, the numbers presented in this report are unaudited. However, Staff anticipates no material changes and expects another year of clean audit. To complete the audit process, the City’s independent auditors will present the report to the City Council Audit Sub- committee, comprised of Mayor Bradley and Pro Tem Ferraro in January or February 2022. Subsequently, Staff will report the audit results and submit the Annual Comprehensive Financial Report (ACFR) to the City Council and the Finance Advisory Committee (FAC). It should be noted that that Governmental Accounting Standards Board changed this name from Comprehensive Annual Financial Report (CAFR) to ACFR effective 2021. In addition to the year-end report, Staff has reviewed all revenues and expenditures for FY 2021-22 first quarter, focusing on the General Fund. Overall, the main goal of the report is to identify any substantial changes between the adopted budget and the first quarter results that may require adjustments to the current budget and the financial model. On December 2, 2021, as part of the Finance Advisory Committee’s (FAC) annual work plan, Staff presented the year-end report for FY 2020-21 and the first quarter results for FY 2021-22. At this meeting, the FAC moved to receive and file the reports and provided feedback on the additional transfer related to the Employee Pension Fund, which will be discussed later in the report. 2 DISCUSSION: 1. Fiscal Year 2020-21 General Fund Year-End Results At the City’s Budget Adoption hearing held on June 15, 2021, Staff projected FY 2020-21 General Fund revenues to end the year at $28.5 million and expenditures to end at $27.8 million, including transfers, resulting in a positive variance of $726,400 (revenues to expenditures). The General Fund unaudited actual year-end results show the City’s operations ending the year with total revenues of over $30.2 million and almost $26.2 million of expenditures, including transfers, resulting in a positive variance of over $4 million (revenues to expenditures). The following table is a summary of Fiscal Year 2020-21 General Fund results. Table 1 – Summary of FY 2020-21 General Fund Compared to the year-end estimates, the fund balance increased over $3.3 million or 15% over year-end estimates. This change was the result of the unaudited actual for revenues ending higher than year-end estimates by over $1.7 million and a combination of savings and underspent budget for ongoing projects of approximately $1.6 million in expenditures. The increase in revenues is primarily from higher than expected inflow from property tax, permits and fees, and other taxes and miscellaneous revenue. The positive variance for expenditures is mainly due to combination of underspent budget on parks and street maintenance that were not completed by year-end, personnel and non-personnel savings, and a slight increase of transfers-out to Capital Improvement Fund. The following is a more detailed discussion on these results. General Fund Revenues Revenues increased by approximately $1.7 million or 6% compared to year-end estimates, including transfers, as illustrated in Table 2 on the next page. This table is a summary of the major revenues and compares the revised budget and year-end estimated revenues to year-end actuals. Category FY 2020-21 Year-End Estimates FY 2020-21 Unaudited Actuals Changes to Year-End Estimates Revenues 28,529,200$ 30,242,821$ 1,713,621$ Expenditures (27,802,800) (26,195,501) 1,607,299 Total 726,400$ 4,047,321$ 3,320,921$ 3 Table 2 – FY 2020-21 General Fund Revenues – Estimates vs. Actuals The ever-changing economic environment caused by the pandemic resulted in revenue estimates that changed several times throughout the year. FY 2020 -21, which began on July 1, 2020, included a small economic surge as cases waned in the late summer months and then a sharp contraction in many sectors as cases spiked in the winter. As cases started to fall in the spring and business restrictions were relaxed, a new wave of economic growth began that affected areas such as the housing market and tourism industry. Despite the ups and downs of the economy, Staff maintained a conservative approach to revenue projections, allowing for possible downturns should cases spike again during the year. Revenues ended the fiscal year $1.7 million, or 6%, higher than year-end estimates. Highlights of the significant changes to the City’s major revenue sources are outlined below. Property Tax Revenue came in higher than estimates at $15.1 million, $770,800 or 5.4% higher than year-end estimates. In early 2020, it was uncertain whether property tax revenue would be impacted by the pandemic. For this reason, property tax revenue estimates were kept conservative and initially budgeted slightly above FY 2019 -20 year-end estimates to account for potential slow down. However, the housing market remained not only relatively unaffected by the pandemic, but in fact saw record growth. This growth resulted in secured property tax revenue of just under $9.1 million, $518,000 more than year-end estimates of $8.6 million and in line with typical year over year growth. Property transfer tax revenue, which is generated during the sale of a property to a new owner, also saw greater than expected growth, ending the year at $570,700, over $108,000 more than the $450,000 estimated at year end. Transient Occupancy Tax (TOT) TOT revenue was the revenue source that was impacted the most by the economic slowdown caused by the pandemic. Beginning March 19, 2020, Terranea (the largest Revenue Adopted Budget 3rd Qtr Year-End Estimate Unaudited Year-End Actuals Property Tax $14,129,700 $14,310,700 $15,081,503 $770,803 5.4% Transient Occupancy Tax 3,762,500 2,836,000 3,115,435 279,435 9.9% Sales Tax 2,312,300 1,972,300 1,919,332 (52,968) -2.7% Permits & Fees 1,819,200 1,805,500 2,007,453 201,953 11.2% Franchise Tax 2,167,500 2,150,000 2,203,130 53,130 2.5% Utility Users Tax 2,099,700 2,099,700 2,245,826 146,126 7.0% Other Taxes & Misc. Revenues 2,679,000 3,125,000 3,540,141 415,141 13.3% Subtotal $28,969,900 $28,299,200 $30,112,821 $1,813,621 6.4% Transfers In 230,000 230,000 130,000 (100,000) -43.5% Total Revenues $29,199,900 $28,529,200 $30,242,821 $1,713,621 6.0% Varriance from Year-End Estimates FY 2020-21 4 I I I source of TOT revenue) announced the temporary closure of their resort and all amenities. On June 12, 2020 the resort resumed operations, although at a decreased maximum capacity. Transient Occupancy Tax is separated in to two categories; TOT revenue from Terranea and miscellaneous TOT revenue received from America’s Best Value Inn and the Terranea Casita/Villa rental properties. During the mid-year review Staff projected $2.2 million in revenue from Terranea and $136,000 from all miscellaneous properties. As the leisure travel industry began to recover, projections for Terranea were increased to $2.7 million during the third quarter review. The total TOT revenue for Terranea ended the year at just under $3 million and miscellaneous TOT revenue finished with $145,800. In total, TOT revenue exceeded the year-end estimates by $279,000, or 9.9%, with total revenue of $3.1 million. Sales Tax As mentioned previously, the COVID-19 health crisis caused the temporary closure of Terranea Resort, along with a decrease in demand to retail and restaurants throughout the City. Sales Tax revenue continues to be one of the slowest revenue sources to recover. Terranea and local restaurants comprised nearly half of all sales tax revenue prior to the start of the pandemic and subsequently fell to just under 15% at the height of the pandemic. As leisure travel and demand for dining inside of restaurants slowly returns to pre-pandemic levels, projections show hope that sales tax revenue will also mirror this upward progress. Revenue ended the year at $1.9 million, roughly $53,000 or 2.7% under year-end estimate of almost $2 million. Permits and Fees Revenue from permits and fees ended the year at $2 million, exceeding the year-end estimate of $1.8 million by $202,000 or 11.2%. This revenue source is comprised of roughly 17 permit and fee types, such as building and safety permits, plan check permits, planning and zoning permits, and animal licenses. A larger decrease in demand was expected due to the pandemic, however, strong performance from planning and zoning permits, right of way permits, and building and safety permits helped this revenue category outperform estimates. Franchise Tax The City received $2.2 million in revenue which is approximately $53,100 or 2.5% above year-end estimates of $2.2 million. The City receives franchise tax revenue from franchisees for the use of municipal rights-of-way. This revenue source is primarily received from Southern California Edison and Southern California Gas Company. User Utility Tax Revenue ended the year at $2.2 million, $146,000 or 7% over year end estimates. UUT is dependent on outside factors, including weather conditions, consumption of utilities, natural gas prices, and rate increases. An increase in demand, most likely fueled by a larger portion of the population working from home, is the main factor in this higher-than- expected revenue. 5 Other Taxes and Miscellaneous Revenue This revenue category consists of over 20 unique revenue sources including business license tax, golf tax, interest earnings, rental/lease, and parking lot fees. In total, these other revenue sources combined for $3.5 million in revenue, approximately $415,100 or 13.3% higher than year-end estimates of $3.1 million. The revenue categories that had the largest impact on this better-than-expected performance were golf tax which ended the year at $633,000 (year-end estimate $450,000), parking lot fees with $417,000 (year- end estimate $350,000), and rental/lease revenue from cell phone tower rentals with $356,600 (year-end estimate $249,000). General Fund Expenditures At the end of FY 2020-21, the expenditures ended the year approximately $1.6 million lower than estimated, including transfers-out. Table 3 summarizes the expenditures by category, revised budget, year-end estimates, variances, and percent of change in the General Fund. Table 3 – FY 2020-21 General Fund Expenditures – Estimates vs. Actuals The following sections of the report are highlights of the changes to the year-end estimates reported at the preliminary budget in May. Personnel Costs Salaries and benefits accounts for $11.1 million or 38% of the total revised budget, including transfers. At the end of third quarter, Staff projected to end the year at approximately $10.1 million due to unfilled vacancies, delayed recruitments, and park and Expenditure Category Revised Budget 3rd Qtr Year-End Estimates Unaudited Year-End Actuals Salaries 8,338,100$ 7,382,363$ 7,316,601$ (65,762)$ -1% Benefits 2,736,900 2,710,515 2,655,670 (54,845) -2% Legal Services 975,000 905,000 884,672 (20,328) -2% Sheriff Contract 7,110,900 7,101,900 6,970,901 (130,999) -2% Supplies 608,025 514,402 452,592 (61,810) -12% Professional & Technical 3,025,946 3,127,200 2,212,629 (914,571) -29% Repairs 3,067,940 2,958,620 2,648,882 (309,738) -10% Training/Conference 311,400 258,245 151,514 (106,731) -41% Misc - General Liabilities Premium 769,600 769,600 767,128 (2,472)0% Misc - Equipment Replacement Charges 93,600 93,600 93,600 0 0% Misc - Other 315,975 394,155 290,493 (103,662) -26% Subtotal 27,353,386 26,215,600 24,444,682 (1,770,918)-7% Transfers Out 2,170,500 1,587,200 1,750,819 163,619 10% Total 29,523,886$ 27,802,800$ 26,195,501$ (1,607,299)$ -6% Changes from Year-End Estimates FY 2020-21 6 facility closures. Based on the year-end actuals of almost $10 million, this category is slightly under than estimated by $120,600 or 1%. Non-Personnel Costs This category includes the Los Angeles County Sheriff contract, legal services, repairs and maintenance, professional and technical, supplies, training and conference, and miscellaneous expense. This category ended the year $1 4.5 million, which is almost $1.7 million or 10% lower than the year-end estimates. The positive variance over year-end is mainly due to savings in all categories and unspent budget from in professional and technical services and repairs and maintenance. The highlights of the major variances for non-personnel costs are as follows: Professional and Technical Services Professional and technical services ended at approximately $2.2 million. Based on the year-end projections of $3.1 million, this category ended the year lower than projected by $914,600 or 29%. This is a combination of savings and unspent budget from projects that were not completed by the end of FY 2020 -21. Of this amount, approximately $793,00 are purchase orders and unspent budget for projects that were previously approved by the City Council that were not completed by year-end, therefore, the amount is requested to be carried over to FY 2021-22. The remaining amount of $121,600 are additional savings mainly due to reduced activities in the fourth quarter. Repairs and Maintenance At the end of fiscal year, repairs and maintenance ended at approximately $2.6 million, which is $309,700 or 10% lower compared to the year-end estimates of $3.1 million. Of this amount, $275,000 are unspent budget on unfinished projects and includes purchase order carryover requests. Similar to professional and technical services, this line item has realized an additional savings of $34,700 in the fourth quarter. Supplies, Training, and Conference Due to additional identified savings and reduced activities in the fourth quarter, these line items resulted in additional savings by year-end. Supplies ended the year at $452,600 resulting $61,800 or 12% lower than estimates. Similarly, training and conference ended the year with additional savings of $106,700 or 41% over year-end projections. Transfers-Out This category includes transfers from the General Fund to the Capital Improvement Program Fund (CIP) for $1.7 million and other Special Revenues Funds of $30,000. Compared to the year-end estimates, the transfers to CIP increased by $163,600 or 10% due to the higher than expected of TOT revenues. The remaining transfers to Portuguese Bend and Subregion One were on target, ending the year the same as year-end estimates at $30,000. 7 General Fund Balance Reconciliation The fund balance reconciliation begins with the beginning fund balance, revenues received and transfers-in, less operating expenditures and transfers-out. The remaining calculation recognizes any designations impacting the fund balance at the end of the year, such as the 50% Policy Reserve, purchase orders that were in process at year-end, and continuing appropriations. The resulting amount is the excess fund balance reserve (surplus) remaining at the end of the year. At the end of FY 2020-21, the General Fund Balance ended at almost $25.8 million, an increase of $3.3 million or 15% over year-end estimates of $22.5 million. After funding the City Council’s 50% Reserve Policy, accounting for purchase order carryover items, and continuing appropriations, the General Fund surplus ended at approximately $11.7 million. This is an increase of almost $2.3 million or 24% over year-end estimates of $9.4 million. Table 4 below is a reconciliation of the changes to estimates and the reconciliation of the General Fund balance at the end of FY 2020-21. Table 4 – FY 2020-21 Fund Balance Reconciliation Capital Infrastructure Program Fund, Special Revenue Funds, Other Funds Capital Infrastructure Program (CIP) Fund The CIP Fund ended the year with a fund balance of approximately $26.4 million. Of this amount, the FY 2020-21 total General Fund TOT transfers-in is $1.5 million, additional transfers-in of $206,500 from prior year’s surplus, and interest earnings of $215,100. The total capital outlay expenditures at the end of year are almost $890,700. At the end of the fiscal year, the surplus for CIP is almost $21 million net of the City Council policy reserve of $5 million and purchase order carryover items of $639,300. Compared to the year-end General Fund Revised Budget Year-End Estimates Unaudited Actuals Beginning Fund Balance - 7/1/2020 21,748,709 21,748,709 21,748,709 Add: Revenues 28,969,900 28,299,200 30,112,821 1,813,621 6% Add: Transfers-In 230,000 230,000 130,000 (100,000)-43% Total Revenues 29,199,900 28,529,200 30,242,821 1,713,621 6% Less: Expenditures (27,353,386) (26,215,600) (24,444,682) 1,770,918 -7% Less: Transfers to CIP (2,140,500) (1,557,200) (1,720,819) (163,619)11% Less: Other Transfers-Out (30,000) (30,000) (30,000) - 0% Total Expenditures (29,523,886) (27,802,800) (26,195,501) 1,607,299 -6% Unaudited Ending Fund Balance - 6/30/2021 21,424,723 22,475,109 25,796,030 3,320,921 15% Purchase Orders Carry-forward 859,351 859,351 0% Continuing Appropriation 422,800 422,800 0% 50% Reserve Policy 13,676,693 13,107,800 12,863,416 (244,384)-2% Unrestricted Excess/(Deficit) Reserve - 06/30/21 7,748,030 9,367,309 11,650,463 2,283,154 24% Variances FY 2020-21 8 estimates, the surplus is higher by almost $500,000 mainly due to the final results of the General Fund TOT transfer and unspent funds for projects that were not completed by the end of the fiscal year. Equipment Replacement Fund The Equipment Replacement Fund ended the year with a fund balance of approximately $2.7 million. After accounting for the amount to be set aside for the restricted Council policy of $2 million, the fund ended the year with a surplus of almost $680,700, which is higher than estimated by $545,000 due to less equipment replaced by the end of the fiscal year. Other Governmental Funds Other Governmental Funds include Special Revenue Funds and Permanent Funds of over 27 funds such as Gas Tax, Proposition A and C, Measure R, Measure M, Measure W, and Other Grants. The total restricted fund balance for these funds at the end of the fiscal year is approximately $13.2 million. A total of almost $2 million or 15% of the fund balance is restricted by City Council Policy: $238,000 for Habitat Restoration, $750,000 for Sub-Region One, and $1,000,000 for Abalone Cove Improvement Authority. In addition to the Council policy, these funds also have purchase order carryover totaling to $1.3 million and continuing appropriations of $100,000; resulting in a surplus of almost $9.8 million at year-end. Table 5 on the next page is a year-end summary of the Capital Infrastructure Program (CIP) Fund, Equipment Replacement Fund, Special Revenues, and Other Funds. CONTINUE TO NEXT PAGE 9 Table 5 – FY 2020-21 CIP Fund, Special Revenue Funds, Other Funds 2. Purchase Order Carryover As part of the year-end process, Staff reviewed purchases that were encumbered in FY 2020-21 but not completed or delivered by June 30, 2021. A Purchase Order Carryover Schedule is then prepared that reports the fund source, balance amounts, departments, and vendors. On June 30, 2021, the total purchase order carryover is almost $2.8 million. Of this amount, $1.9 million or 68% are for capital related projects and $893,000 or 32% is a combination of professional and technical, and repairs and maintenance. For the capital projects included in this total that were budgeted in FY 2020-21 but not completed by year-end are Hawthorne Median Beautification, Altamira Canyon Drainage, Ladera Linda, Stormwater improvements, Residential Street Rehabilitation, Traffic Signals, Rattlesnake Trailhead Gate, and ADA Access. For General Fund, a portion of the carryover amount includes the Housing Element project, and the remaining amount are for playground surface maintenance, fuel modification, traffic calming plans, trail repairs, and stormwater maintenance. Table 6 is the summary of the open purchase orders aggregated by fund. Capital Infrastructure Equipment Replacement Special Revenues & Other Governmental Funds Beginning Fund Balance - 7/1/2020 25,344,808 2,842,751 14,213,223 Add: Revenues 215,139 115,000 6,630,914 Add: Transfers-In from General Fund (TOT) 1,514,319 - - Add: Other Transfers-In from General Fund 206,500 - 30,000 Total Revenues 1,935,958 115,000 6,660,914 Less: Expenditures (889,716) (247,505) (7,580,399) Less: Transfers-Out - - (130,000) Total Expenditures (889,716) (247,505) (7,710,399) Unaudited Ending Fund Balance - 6/30/2021 26,391,050 2,710,246 13,163,738 Restricted by City Council Policy (5,000,000) (2,029,500) (1,988,055) PO Carry-forward (639,282) - (1,286,245) Continuing Appropriations - - (100,000) Unrestricted Excess/(Deficit) Reserve - 06/30/21 20,751,768 680,746 9,789,438 10 Table 6 – FY 2020-21 Purchase Order Carryover Schedule Summary In order to meet budgetary requirements for the projects that were previously approved but not completed by year-end, Staff recommends City Council approval to carry over the purchase orders of $2.8 million into FY 2021-22. The carryover amount has no net fiscal impact as it decreases the FY 2020-21 budget and increases the FY 2021-22 budget by the same amount. 3. Continuing Appropriations In addition to the purchase order carryover, the Finance Department, in partnership with the other departments and a final approval from the City Manager, prepares a summary of proposed continuing appropriations to be carried over to FY 2021-22. These are projects that were planned and approved but have not started. The total continuing appropriation requests for all funds is $522,800. The majority of the requests are funding for professional services and repairs such as the employee Classification and Compensation study, security camera reimbursements, pavement striping and marking services, RPVtv services, and additional feasibility study analysis of mixed-use development opportunities along Western Avenue, Silver Spur Road, and Miraleste Plaza. The amount also includes the support needed for the approved American Rescue Plan Act (ARPA) projects including restoring a portion of the personnel costs for Senior Engineer and Assistant Planner, information technology upgrades, trail counte rs, technology system upgrades, and trail repairs. The following Table 7 is a summary of the continuing requests by fund and categories. Fund Fund Name PO Balance 101 General Fund 859,351$ 202 Gas Tax 322,348 211 1911 Act Street Lighting 40,129 215 Proposition C 142,897 220 Proposition A 241,011 225 Abalone Cove Sewer District 26,855 310 CDBG 137,855 330 CIP 639,282 332 State Grants 163,897 334 Quimby Park Development 187,415 343 Measure W 23,839 TOTAL 2,784,879$ 11 Table 7 – FY 2020-21 Continuing Appropriations Requests Staff recommends City Council approval of the Continuing Appropriation Requests of $522,800 as the amount would provide support for projects that started in FY 2020 -21. The same as the purchase order carryover amount, the continuing appropriations have no net fiscal impact as the amounts decrease the FY 2020-21 budget and increases the FY 2021-22 budget for the same amount. 4. Additional Transfers to the Employee Pension Fund City Council Goal Number 71 states: Prepare a Pension Policy that provides a financial plan to address the City’s outstanding pension liability and CalPERS’ continuous change in valuation methodology. Pursuant to this goal, Staff presented the Pension Guidelines (Guidelines), as recommended by the FAC, to the City Council at the January 19, 2021 meeting and the City Council unanimously approved the Guidelines on February 2, 2021. As stated in the Guidelines, during the first year, the City Council may consider an initial contribution from the General Fund’s surplus to the Employee Pension Plan Service Fund. The recommended initial funding is based on the estimated incremental increases to the annual Unfunded Accrued Liabilities (UAL) payment equivalent to at least two years for $307,000 but no more than three years for $640,000. Based on the projected surplus for the FY 2021-22, the City Council approved a minimum transfer of $307,000 from the General Fund surplus into the newly created Employee Pension Fund. As a result of the General Fund’s surplus of $4 million (Table 1), which is an increase of $3.3 million over FY 2020-21 year-end estimates, Staff recommends an additional transfer of $333,000 increasing the initial funding for the pension liability at $640,000. This recommendation was discussed and supported by the FAC at their December 2, 2021 Committee meeting. Fund Fund Name Category Continuing Appropriation Request 101 General Fund Professional and Technical 284,800$ 101 General Fund Personnel Costs 138,000 220 Measure R Repairs and Maintenance 100,000 TOTAL 522,800$ 12 5. Decreasing FY 2020-21 Adopted Budget In accordance with Chapter 3.32 (Budget Administration) of Title 3 of the Rancho Palos Verdes Municipal Code, any changes in budget appropriations and transfers must be approved by the City Council. As summarized above, at the end of FY 2020-21, the total Purchase Order Carryover is $2,784,879 and $522,800 for Continuing Appropriations. Therefore, Staff recommends City Council approval to decrease the budget appropriations in FY 2020-21. This action has no net fiscal impact as it decreases the FY 2020-21 budget and increases the FY 2021-22 budget by the same amount. 6. Increasing FY 2021-22 Adopted Budget Accordingly, Staff also seeks for City Council’s approval to increase the FY 2021 -22 Adopted Budget for the same amount of $2,784,879 for Purchase Order Carryover and $522,800 for Continuing Appropriations. For the City’s Employee Pension Fund, the FY 2021-22 Adopted Budget includes $307,000, therefore, Staff seeks for City Council’s approval of additional appropriation for transfers in the amount of $333,000 from General Fund to the Employee Pension Fund. Since this amount is from surplus, if approved, there are no impacts to the current programs and services that are funded by the General Fund. 7. Fiscal Year 2021-22 First Quarter Financial Report General Fund Revenues During the first three months of the fiscal year, the General Fund received over $4.9 million in revenue, approximately $1 million more than was received at this same point last year. As COVID-19 restrictions continue to be relaxed and business reopen throughout Los Angeles County and the State of California as a whole, nearly all of the City’s revenue numbers have improved compared to the first quarter of FY 2020-21. It is also important to keep in mind that the first quarter of last fiscal year ran from July through September of 2020 which was still a very uncertain time, and many sectors of the economy reflected this uncertainty. Staff will continue to monitor these categories and if applicable, Staff will report any significant changes in future reports. Table 8 provides a comparison of FY 2020-21 and FY 2021-22 first quarter General Fund revenues, including transfers. CONTINUE TO NEXT PAGE 13 Table 8: 1st Quarter General Fund Revenues - Current Year vs. Prior Year As shown in Table 8, revenue is up roughly 27.2% through the 1st quarter when compared to the 1st quarter of FY 2020-21. The largest contributing factor to this increase, making up just over 74% of the overall growth, is Transient Occupancy Tax (TOT) which is $779,100 higher than this point last year. Greater detail on all of the revenue sources will be provided in the pages that follow. The only revenue category that saw a decrease was Other Taxes & Miscellaneous services. This is due to the one-time Federal Grant revenue of $515,000 that was received in FY 2020-21 to assist with the costs of COVID-19 preventative measures implemented throughout the City. When this one-time revenue is removed, revenue actually increased by 10.5% from $536,100 in FY 2020-21 to $592,500 in FY 2021-22. Through the 1st quarter, the City has received 16.1% of budgeted revenue. This is slightly ahead of the 13.2% of the adopted budgeted received in the first quarter of FY 2020-21. It should be noted that future economic activity, legislation , and policy decisions, as well as any other unforeseen circumstances could affect the City's revenue sources for the remainder of FY 2021-22. Tables 9 and 10 on the next page provide a view of how first quarter revenues, including transfers in, in FY 2020-21 and FY 2021-22 compared to the total adopted budget. Revenue Type 1st Quarter FY 2020-21 1st Quarter FY 2021-22 Property Tax $338,600 $421,500 24.5% $82,900 Transient Occupancy Tax $903,800 $1,682,900 86.2% $779,100 Sales Tax $276,400 $495,500 79.3% $219,100 Permits & Fees $547,400 $661,900 20.9% $114,500 Franchise Tax $165,600 $326,700 97.3% $161,100 Utility User Tax $514,400 $635,900 23.6% $121,500 Other Taxes & Misc. Revenue $1,051,100 $592,469 -43.6%($458,631) Transfers In $57,500 $87,500 52.2% $30,000 Total Revenues $3,854,800 $4,904,369 27.2%$1,049,569 Variance 14 Table 9: FY 2020-21 1st Quarter Revenue Status Table 10: FY 2021-22 1st Quarter Revenue Status Revenue Type FY 2020-21 Adopted Budget Q1 FY 2020-21 Actuals % Received Property Tax $14,129,700 $338,600 2.4% Transient Occupancy Tax $3,762,500 $903,800 24.0% Sales Tax $2,312,300 $276,400 12.0% Permits & Fees $1,819,200 $547,400 30.1% Franchise Tax $2,167,500 $165,600 7.6% Utility User Tax $2,099,700 $514,400 24.5% Other Taxes & Misc. Revenue $2,679,000 $1,051,100 39.2% Transfers In $230,000 $57,500 25.0% Total $29,199,900 $3,854,800 13.2% Revenue Type FY 2021-22 Adopted Budget Q1 FY 2021-22 Actuals % Received Property Tax $14,960,300 $421,500 2.8% Transient Occupancy Tax $3,978,400 $1,682,900 42.3% Sales Tax $2,163,400 $495,500 22.9% Permits & Fees $2,083,100 $661,900 31.8% Franchise Tax $2,150,000 $326,700 15.2% Utility User Tax $1,915,000 $635,900 33.2% Other Taxes & Misc. Revenue $2,825,500 $592,469 21.0% Transfers In $350,000 $87,500 25.0% Total $30,425,700 $4,904,369 16.1% 15 Staff has provided a more detailed look at the City’s major revenue sources below. Property Tax Revenue is budgeted at over $14.9 million in FY 2021 -22, an increase of $830,600 over last fiscal year. As of the end of the first quarter, revenue is up $82,900 when compared to the first quarter for FY 2020-21. This is a small variance that can be attributed to timing. The bulk of property tax revenue is received from December through June. At this time, no modifications are needed for the revenue estimates. Staff will continue to monitor the City’s largest source of revenue for changes. Transient Occupancy Tax (TOT) As mentioned previously in this staff report, TOT was the revenue source that has improved the most year over year. The City has received $1.7 million in revenue through the 1st quarter, 42.3% of the $4 million budgeted in FY 2021-22. As of the end of the first quarter revenue is up $779,100 when compared to the first quarter of FY 2020-21. This significant increase of 86.2% is an indicator of the recovery taking place in the leisure travel sector. Staff will continue to monitor TOT revenue and may consider adjusting year end projections if this trend continues. Sales Tax Last fiscal year the COVID-19 health crisis caused the temporary closure of Terranea Resort and decreased demand for local restaurants. Terranea and local restaurants comprised nearly half of all sales tax revenue prior to the pandemic. This fiscal year sales tax revenue is reflecting the gradual recovery of the economy. The City has received $496,000 in revenue through the first quarter of FY 2021-22. First quarter revenue is up $219,100, or 79.3%, when compared to first quarter of FY 2020-21. Staff will continue to monitor how this revenue source performs through the holiday season and review updates from HdL, the City’s sales tax consultant. Currently, there are no substantial changes to the budget, therefore, no modifications are necessary. Permits & Fees First quarter revenue has reached $661,900, up $114,500 or 20.9%, when compared to first quarter of FY 2020-21. Permits & fees revenue is led by $363,900 in building and safety permits and $119,900 in plan check permits. At this time there are no substanti al changes to the budget, therefore, no modifications are necessary. Franchise Tax Franchise Tax is levied on the providers of utility, refuse, and cable services in exchange for use of the City’s rights-of-way. The City has received $326,700 in revenue through the 1st quarter, 15.2% of the $2.1 million budgeted in FY 2021 -22. As of the end of the first quarter revenue is up $161,100 when compared to first quarter of FY 2020-21. However, this increase is a result of timing and does not reflect an actual increase in year over year revenue. No adjustments to the budget are needed at this time. Utility Users Tax (UUT) Utility Users Tax revenue saw a slight uptick during FY 2020-21, primarily the result of increased demand most likely due to a larger portion of the population spending more 16 time at home. This revenue source is driven primarily by weather conditions, utility rates and consumption. The City has received $635,900 in revenue through the first quarter, 33.2% of the $1.9 million budgeted in FY 2021 -22. As of the end of the first quarter revenue is up $121,500 when compared to first quarter of FY 2020-21. However, this increase is a result of timing and does not reflect an actual increase in year over year revenue. There has not been any indication after the first quarter that any adjustment to the adopted budget will be necessary. No adjustments to the budget will be made at this time. Other Taxes & Miscellaneous Revenue As previously mentioned, this revenue category consists of over 20 unique revenue sources including business license tax, golf tax, interest earnings, rental/lease, and parking lot fees. This is a revenue source that can be difficult to predict due to the wide variety of revenue sources that are included in this category. Revenue in this category has reached just over $592,500 during the first quarter, down 43.6% or $458,600, compared to this same period last fiscal year. This is due to the one-time Federal Grant revenue of $515,000 that was received in FY 2020-21 for COVID-19 preventative measures implemented throughout the City. When this one-time revenue is removed revenue actually increased by 10.5% from $536,100 in FY 2020 -21 to $592,500 in FY 2021-22. Staff anticipated this change during the FY 2021 -22 budget process and the budget was adjusted accordingly. Staff will continue to monitor how this revenue source performs and adjust projections later in the fiscal year if necessary. Currently, there are no substantial changes to the budget, therefore, no modifications are necessary. At the end of the first quarter, September 30, 2021, General Fund revenues totaled $4.9 million. General Fund Expenditures As of September 30, 2021, the total for the General Fund expenditures is approximately $6.1 million or 19% of total budget, including transfers out. As shown on Table 11 below, compared to the same period last year, the total expenditures increased by almost $2 million or 49%. The increases are aligned with the City’s current increased activities due to re-opening of parks, resumed programs, ongoing maintenance, and timing of disbursements. Staff will continue to monitor these categories and if applicable, Staff will report any significant changes in future reports. A brief summary of the activities is discussed on the following page. 17 Table 11: First Quarter General Fund Expenditures - Current Year vs. Prior Year Personnel Costs At the end of the first quarter, Salaries ended at approximately $1.5 million or 17% of the FY 2021-22 Adopted Budget. Compared to the prior year, this category is $105,600 or 6% higher. The variance is in line with filled vacant positions and increased activities from the resumed recreation and parks programs. Similarly, Benefits ended at approximately $644,900 or 19% of the FY 2021-22 Adopted Budget. Compared to the prior year, Benefits is about $215,000 or 50% higher, due to the increased required annual payment for the CalPERS unfunded liability. Non-Personnel Costs At the end of the first quarter, the non-personnel categories ended at approximately $3.2 million or 20% of the FY 2021-22 Adopted Budget. This category includes Legal Service, Sheriff Contract, Repairs & Maintenance, Professional & Tec hnical, Supplies, Training and Conference, and Miscellaneous Expense. Overall, as anticipated from increased citywide activities, the non-personnel costs are higher by $1.4 million or 83% compared to the same period as last year. The increased amount is from the timing of disbursements including Sheriff contract services, and street maintenance services. There are also increases from general operations such as water usage, scheduled repairs that were approved from the prior year, and consultant services. Transfers-Out At the end of first quarter, Transfers-Out is at $736,300 or 25% of the FY 2021-22 Adopted Budget. Compared to the same period last year, this category is $245,300 or 50% higher due to the increased TOT revenue budget. In summary, Table 12 and Table 13 on the next page provide a view of how first quarter expenditures, including transfers, in FY 2020-21 and FY 2021-22 compared to the total budget. Expenditure Type 1st Quarter FY 2020-21 1st Quarter FY 2021-22 Salaries 1,396,506$ 1,485,788$ 89,282$ 6% Benefits 429,871 644,851 214,980 50% Sheriff Contract 618,093 1,727,646 1,109,553 180% Legal Services 233,286 157,721 (75,565) -32% Supplies 92,383 66,890 (25,493) -28% Professional & Technical 222,379 348,774 126,395 57% Repairs 255,430 515,320 259,890 102% Training & Conference 37,410 39,454 2,044 5% Misc. Expense 282,946 333,061 50,115 18% Transfers-Out 491,000 736,250 245,250 50% Grand Total 4,059,304$ 6,055,757$ 1,996,453$ 49% Variance 18 Table 12: FY 2020-21 General Fund Status Report - Expenditures Table 13: FY 2021-22 General Fund Status Report - Expenditures At the end of first quarter in FY 2020-21, the total expenditures were at $4 million or 14% of the adopted budget. As anticipated, due to the increased Citywide activities, the first quarter in FY 2021-22 shows an increase of almost $2 million, ending the qu arter at $6 million or 19% of the adopted budget. Expenditure Type FY 2020-21 Adopted Budget 1st Quarter Actuals % Spent Salaries 8,368,100$ 1,396,506$ 17% Benefits 2,736,900 429,871 16% Sheriff Contract 7,222,400 618,093 9% Legal Services 1,000,000 233,286 23% Supplies 557,600 92,383 17% Professional & Technical 2,675,500 222,379 8% Repairs 2,780,400 255,430 9% Training & Conference 311,400 37,410 12% Misc. Expense 1,184,600 282,946 24% Transfers-Out 1,964,000 491,000 25% Grand Total 28,800,900$ 4,059,304$ 14% Expenditure Type FY 2021-22 Adopted Budget 1st Quarter Actuals % Spent Salaries 8,574,400$ 1,485,788$ 17% Benefits 3,377,800 644,851 19% Sheriff Contract 7,150,200 1,727,646 24% Legal Services 940,000 157,721 17% Supplies 587,548 66,890 11% Professional & Technical 3,128,806 348,774 11% Repairs 2,806,497 515,320 18% Training & Conference 327,100 39,454 12% Misc. Expense 1,385,400 333,061 24% Transfers-Out 2,945,000 736,250 25% Grand Total 31,222,751$ 6,055,757$ 19% 19 ADDITIONAL INFORMATION Reserve Policy In response to the significant drop of General Fund transfers to the CIP Fund caused by the pandemic, on March 2, 2021, the City Council Adopted Resolution No. 2021-008, amending City Council Policy No. 41 “Reserve Policies”. One of the objectives of the amended policy was for Staff to analyze and provide the City Council with options, if feasible, to increase General Fund transfers to the CIP after a surplus is identified from prior year’s results. At the end of FY 2020-21, the City has an operating surplus of over $4 million and cumulatively of almost $11.7 million of unrestricted excess reserve. As stated in the policy, based on these favorable results, the City Council may consider allocating additional transfer to the CIP Fund during the FY 2022-23 budget process. CONCLUSION: At the end of FY 2020-21, the results show another favorable year for the City’s General Fund ending with a surplus of $4 million by generating more revenue than expected and spending less than year-end estimates. The revenues ended the year almost $1.8 million or 6% higher than anticipated mainly from the record growth in housing market resulting in higher property tax revenues. In addition, resumed business operations also contributed to the increased year-end revenues including Terranea Resort, golf taxes, permits and fees, and parking fees. For expenditures, the City maintained its long history of fiscal discipline by monitoring spending and identifying savings, when possible, in FY 2020-21. The expenditures ended the year lower than year-end estimates by $1.6 million or 6%. A portion of the underspent budget is also due to ongoing projects that are expected to be completed in FY 2021-22. As such, after accounting for the 50% City Council Policy Reserve, purchase order carryover, and continuing appropriations, the General Fund ended the year with approximately $11.7 million in unrestricted excess reserve. With the solid reserve balance, the City Council may consider an additional appropriation of $333,000 for a total of $640,000 for the initial funding in accordance with the new Pension Guideline adopted in February 2021. Similar to General Fund, the year-end results also demonstrate another favorable year for CIP Fund, Special Revenue Funds, and Other Funds. The CIP’s fund balance ended at $26.4 million with an unrestricted excess reserve of almost $21 million, after deducting the City Council Policy of $5 million and purchase order carryover. The Equipment Replacement’s fund balance ended at $2.7 million with an unrestricted reserve of almost $681,700. Finally, the City’s Special Revenue Funds and Other Funds ended the year at $13.2 million with unrestricted excess reserve of almost $9.8 million, net of required reserves, purchase order carryover, and continuing appropriations. Finally, in addition to the FY 2020-21 year-end report, Staff included a summary report of the General Fund’s first quarter results in FY 2021-22. As summarized in the report, the actuals indicate that the City’s revenue has grown compared to the prior year. At the end of first quarter, the City received $4.9 million in revenues or approximately 16% of the 20 adopted budget and spent approximately $6.1 million or 19% of the adopted budget. Overall, the total revenues are up by $1 million or 27% over last year’s first quarter revenues. The major contributing factor is the City’s TOT revenues, ending the quarter at $779,100 or 74% higher than the previous year. For the City’s expenditures, as anticipated, the first quarter ended higher than last year by almost $2 million or 49%. This result was expected due to increased activities from filled vacancies, ongoing maintenance projects, re-opening of parks, and resuming recreation programs. ALTERNATIVES: In addition to the Staff recommendation, the following alternative action is available for the City Council’s consideration: 1. Direct Staff not to approve additional appropriation of $333,000 for FY 2021-22 transfers-out from General Fund to the Employee Pension Fund. 2. Take other action, as deemed appropriate. 21 Attachment A Purchase Order Carryover Schedule FY 2020-2021 ACCOUNT NUMBER Fund FUND DESC Dept ACCT DESCRIPTION VENDOR NUMBER VENDOR NAME PO NUMBER OPEN AMOUNT COMMENT/DESC CARRYOVER NOTES 101-400-4120-5101 101 GENERAL FUND Community Development PROFESSIONAL/ TECHNICAL SERVICE 19 E.S.A.20210206 $187,440.86 FY21 HOUSING ELEMENT PROF SVS Housing element project through 2022 101-400-3151-8010 101 GENERAL FUND Public Works MAINTENANCE/ REPAIRS 2148 R.E. SCHULTZ CONSTRUCTION, INC.20210222 $134,184.50 FY20-21 PLAYGROUND SURFACE IMP Ongoing project. 101-400-3230-5201 101 GENERAL FUND Public Works REPAIR & MAINTENANCE SERVICES 3269 STAY GREEN INC.20210117 $123,612.10 FY 20-21 FUEL MODIFICATION BY Work is ongoing. Delay in work at the Preserve due to the nesting birds. 101-400-3130-5118 101 GENERAL FUND Public Works REIMBURSABLE SERVICES 116 JOHN L. HUNTER & ASSOCIATES, INC.20210083 $115,172.94 FY20-21 NPDES PROGRAM IMPLEMEN Ongoing project. 101-400-3130-5101 101 GENERAL FUND Public Works PROFESSIONAL/ TECHNICAL SERVICE 116 JOHN L. HUNTER & ASSOCIATES, INC.20210083 $18,680.84 FY20-21 NPDES PROGRAM IMPLEMEN Ongoing project. 101-400-3120-5101 101 GENERAL FUND Public Works PROFESSIONAL/ TECHNICAL SERVICE 52 KOA CORPORATION 20210232 $89,636.00 FY20-21 TRAFFIC CALMING PLANS Ongoing project. 101-400-3130-5118 101 GENERAL FUND Public Works REIMBURSABLE SERVICES 3160 ANCHOR QEA 20210059 $33,955.56 FY20-21 MONITOR WATER GRP RECE Work is ongoing. Timeframe was extended to December 31, 2021. 101-400-3130-5101 101 GENERAL FUND Public Works PROFESSIONAL/ TECHNICAL SERVICE 3160 ANCHOR QEA 20210059 $46,646.23 FY20-21 MONITOR WATER GRP RECE Work is ongoing. Timeframe was extended to December 31, 2021. 101-400-1311-6102 101 GENERAL FUND City Administration PUBLICATIONS/J OURNALS 1923 MUNICIPAL CODE, CORP.20210226 $19,305.00 FY20-21 CC RECODIFICATION OF M Ongoing project. 101-400-2999-5101 101 GENERAL FUND Non-Department PROFESSIONAL/ TECHNICAL SERVICE 1720 KOSMONT TRANSACTIONS SERVICES, INC.20200197 $9,457.35 FY19-20 CIVIC CENTER & LADERA Ongoing project. 101-400-4180-5101 101 GENERAL FUND Community Development PROFESSIONAL/ TECHNICAL SERVICE 65 COUNTY OF LOS ANGELES 20210068 $13,526.65 FY20-21 LA COUNTY ANIMAL CONTR Waiting for FY20-21 invoice. Estimated to receive by the 60 day requirement 101-400-3150-5201 101 GENERAL FUND Public Works REPAIR & MAINTENANCE SERVICES 1873 BELLFREE CONTRACTORS, INC 20210240 $11,300.00 FY20-21 TRAIL REPAIRS PEPPERTR Ongoing project. 101-400-5122-5101 101 GENERAL FUND Recreation and Parks PROFESSIONAL/ TECHNICAL SERVICE 2132 PARKMOBILE, LLC 20210219 $11,133.00 FY20-21 PARKING RESERVATION AP Ongoing project. 101-400-3110-5101 101 GENERAL FUND Public Works PROFESSIONAL/ TECHNICAL SERVICE 2663 SUNBEAM SOLAR 20210183 $7,930.00 FY20-21 RATTLESNAKE GATE INSPE Ongoing project. A-1 Attachment A Purchase Order Carryover Schedule FY 2020-2021 ACCOUNT NUMBER Fund FUND DESC Dept ACCT DESCRIPTION VENDOR NUMBER VENDOR NAME PO NUMBER OPEN AMOUNT COMMENT/DESC CARRYOVER NOTES 101-400-5122-5101 101 GENERAL FUND Recreation and Parks PROFESSIONAL/ TECHNICAL SERVICE 1438 ALTA PLANNING + DESIGN, INC 20190332 $6,094.24 FY18-19 TRAILS NETWORK PLAN Ongoing project. 101-400-4130-5101 101 GENERAL FUND Community Development PROFESSIONAL/ TECHNICAL SERVICE 3033 INTERWEST CONSULTING GROUP, INC.20210074 $5,940.38 FY 20-21 BUILDING PROF SERVICE Waiting for FY20-21 invoice. Estimated to receive by the 60 day requirement 101-400-3151-5201 101 GENERAL FUND Public Works REPAIR & MAINTENANCE SERVICES 2164 FENCESCREEN INC 20210236 $5,000.00 FY20-21 TENNIS COURT SCREENING Work is ongoing. 101-400-2110-5101 101 GENERAL FUND Finance PROFESSIONAL/ TECHNICAL SERVICE 1964 IGM TECHNOLOGY CORP.20210106 $5,000.00 FY20-21 BUDGET BOOK - GRAVITY Ongoing project. 101-400-3120-5101 101 GENERAL FUND Public Works PROFESSIONAL/ TECHNICAL SERVICE 2137 RAWAD HANI 20210234 $5,000.00 FY 20-21 TRAFFIC ENGINEERING C Ongoing project. 101-400-1470-5101 101 GENERAL FUND City Administration PROFESSIONAL/ TECHNICAL SERVICE 6 RAMUNDSEN SUPERIOR HOLDINGS, LLC.20210157 $4,360.00 FY20-21 TRAKIT CONSULTING HOUR Ongoing project. 101-400-4140-5101 101 GENERAL FUND Community Development PROFESSIONAL/ TECHNICAL SERVICE 16 WILLDAN ENGINEERING 20210212 $3,585.00 FY 20-21 CODE ENFORCEMENT TEMP Waiting for FY20-21 invoice. Estimated to receive by the 60 day requirement 101-400-5170-5101 101 GENERAL FUND Recreation and Parks PROFESSIONAL/ TECHNICAL SERVICE 635 TRIPEPI SMITH & ASSOCIATES, INC.20210149 $1,642.50 FY20-21 SEARCH ENGINE OPTIMIZA Ongoing project. 101-400-4180-5101 101 GENERAL FUND Community Development PROFESSIONAL/ TECHNICAL SERVICE 822 LOS ANGELES COUNTY 20210075 $747.54 FY20-21 LA CO WEIGHTS & MEAS -Ongoing project. 202-400-8804-8802 202 GAS TAX CIP OTHER IMPROVEMENTS 1815 MARINA LANDSCAPE, INC.20200250 $211,486.80 FY 19-20 HAWTHORNE MEDIAN BEAU Ongoing project. 202-400-8808-8005 202 GAS TAX CIP ENGINEERING DESIGN SERVICES 1070 DCA CIVIL ENGINEERING GROUP, INC.20200242 $28,862.70 FY 19-20 CRENSHAW BLVD REHAB-Ongoing project. 202-400-3170-5201 202 GAS TAX CIP REPAIR & MAINTENANCE SERVICES HARDY & HARPER $81,998.96 FY20-21 ROADWAY MAINTENANCE SRVS Ongoing project. 211-400-8838-8005 211 1911 ACT STREET LIGHTING CIP ENGINEERING DESIGN SERVICES 16 WILLDAN ENGINEERING 20200230 $3,418.00 FY19-20 TRAFFIC SIGNAL DESIGN Awaiting NOC, expected 1st quarter of FY21-22 211-400-8838-8802 211 1911 ACT STREET LIGHTING CIP OTHER IMPROVEMENTS 2002 GLOBAL ROAD SEALING, INC.20210146 $34,151.00 FY20-21 TRAFFIC SIGNAL VIA RIV Awaiting NOC, expected 1st quarter of FY21-22 A-2 Attachment A Purchase Order Carryover Schedule FY 2020-2021 ACCOUNT NUMBER Fund FUND DESC Dept ACCT DESCRIPTION VENDOR NUMBER VENDOR NAME PO NUMBER OPEN AMOUNT COMMENT/DESC CARRYOVER NOTES 211-400-8838-8006 211 1911 ACT STREET LIGHTING CIP INSPECTION SERVICES 725 FARR, JASON 20210140 $2,560.00 FY20-21 INSPECT TRAFFIC SIGNAL Awaiting NOC, expected 1st quarter of FY21-22 215-400-8837-8802 215 PROPOSITION C CIP OTHER IMPROVEMENTS 364 CROSSTOWN ELECTRICAL & DATA, INC 20210032 $119,870.16 FY 20-21 TRAFFIC SIGNAL INSTAL Work delayed due to other agencies working in the same area. 215-400-8828-8005 215 PROPOSITION C CIP ENGINEERING DESIGN SERVICES 16 WILLDAN ENGINEERING 20190360 $3,826.81 FY 18-19 TRAFFIC SIGNAL PVDS/P Work delayed due to other agencies working in the same area. 215-400-8837-8006 215 PROPOSITION C CIP INSPECTION SERVICES 725 FARR, JASON 20210061 $19,200.00 FY20-21 PVDS/PVDE TRAFFIC SIGN Work delayed due to other agencies work in same area. 220-400-8304-8001 220 MEASURE R CIP PROFESSIONAL/ TECH SERVICES 1851 CHAMBERS GROUP INC.20200268 $130,814.45 FY19-20 EIR PB LANDSLIDE MITIG Ongoing project. 220-400-8809-8005 220 MEASURE R CIP ENGINEERING DESIGN SERVICES 16 WILLDAN ENGINEERING 20190282 $78,918.41 FY18-19 WESTERN AVE CONGEST DE Ongoing project. 220-400-8839-8005 220 MEASURE R CIP ENGINEERING DESIGN SERVICES 1570 ARDURRA GROUP, INC.20210175 $31,278.15 FY20-21 PVDE WIDENING & PATH I Ongoing project. 225-400-0000-5101 225 ABALONE COVE SEWER DISTRICT CIP PROFESSIONAL/ TECHNICAL SERVICE 1074 NV5, INC.20210199 $24,970.00 FY20-21 ABALONE COVE SEWER SYS Ongoing project. 225-400-0000-5101 225 ABALONE COVE SEWER DISTRICT CIP PROFESSIONAL/ TECHNICAL SERVICE 1074 NV5, INC.20210220 $1,885.04 FY20-21 AB COVE SEWER SYSTEM C Ongoing project. 310-400-8810-8802 310 CDBG CIP OTHER IMPROVEMENTS 2136 NR DEVELOPMENT, INC.20210217 $113,850.00 FY20-21 ADA ACCESS IMPROV-CADD Ongoing project. 310-400-3110-5101 310 CDBG Public Works PROFESSIONAL/ TECH SERVICES 3028 MICHAEL BAKER INTERNATIONAL, INC.20210084 $2,505.00 FY20-21 CDBG PROGRAM & GRANT A Ongoing project. 310-400-8841-8001 310 CDBG Public Works PROFESSIONAL/ TECH SERVICES 3028 MICHAEL BAKER INTERNATIONAL, INC.20210084 $7,553.34 FY20-21 CDBG PROGRAM & GRANT A Ongoing project. 310-400-8810-8001 310 CDBG CIP ADA IMPROV - PROF/TECH 3028 MICHAEL BAKER INTERNATIONAL, INC.20200083 $1,446.25 FY 19-20 CDBG GRANT & CONTRACT Ongoing project. 310-400-8810-8006 310 CDBG CIP INSPECTION SERVICES 725 FARR, JASON 20210214 $12,500.00 FY20-21 ADA ACCESS INSPECTION-Ongoing project. 330-400-8708-8001 330 CAPITAL INFRASTRUCTUR ES PROJEC CIP PROFESSIONAL/ TECH SERVICES 456 HARRIS & ASSOCIATES 20210181 $198,815.64 FY20-21 ALTAMIRA CYN DRAINAGE Ongoing project. A-3 Attachment A Purchase Order Carryover Schedule FY 2020-2021 ACCOUNT NUMBER Fund FUND DESC Dept ACCT DESCRIPTION VENDOR NUMBER VENDOR NAME PO NUMBER OPEN AMOUNT COMMENT/DESC CARRYOVER NOTES 330-400-8423-8802 330 CAPITAL INFRASTRUCTUR ES PROJEC CIP OTHER IMPROVEMENTS 798 METROCELL CONSTRUCTION, INC.20210147 $120,995.00 FY20-21 RATTLESNAKE TRAIL GATE Ongoing project. 330-400-8709-8807 330 CAPITAL INFRASTRUCTUR ES PROJEC CIP CONNECTOR PIPE - STORMWATER 1313 UNITED STORM WATER, INC.20190237 $59,941.95 FY18-19 CONSTRUCTION OF SANTA Resolving Reimbursement with Grant Agency, then NOC 330-400-8834-8005 330 CAPITAL INFRASTRUCTUR ES PROJEC CIP ENGINEERING DESIGN SERVICES 2663 SUNBEAM SOLAR 20190227 $146,205.00 FY18-19 RES. REHAB AREAS 3 AND Awaiting LA County acceptance 330-400-8420-8802 330 CAPITAL INFRASTRUCTUR ES PROJEC CIP SIGN - OTHER IMPROVEMENTS 1294 PALOS VERDES PENINSULA LAND CONSERVANCY 20190296 $70,595.50 FY18-19 NATURE PRESERVE ENTRY Ongoing project. 330-400-8421-8005 330 CAPITAL INFRASTRUCTUR ES PROJEC CIP ENGINEERING DESIGN SERVICES 1570 ARDURRA GROUP, INC.20200244 $18,948.75 FY 19-20 PVIC MASTER PLAN SITE Ongoing project. 330-400-8503-8001 330 CAPITAL INFRASTRUCTUR ES PROJEC CIP PROFESSIONAL/ TECH SERVICES 1720 KOSMONT TRANSACTIONS SERVICES, INC.20200197 $9,457.35 FY19-20 CIVIC CENTER & LADERA Ongoing project. 330-400-8715-8004 330 CAPITAL INFRASTRUCTUR ES PROJEC CIP ARCHITECTURE DESIGN SERVICES 1070 DCA CIVIL ENGINEERING GROUP, INC.20190337 $8,505.62 FY 18-19 STORM DRAIN DEFICIENC Ongoing project. 330-400-8709-8004 330 CAPITAL INFRASTRUCTUR ES PROJEC CIP CONNECTOR DESIGN SERVICES 514 PSOMAS 20190264 $3,317.50 FY18-19 SANTA MONICA BAY CATCH Ongoing project. 330-400-8504-8004 330 CAPITAL INFRASTRUCTUR ES PROJEC CIP ADA - ARCHITECTURE DESIGN 46 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY 20190328 $2,500.00 FY 18-19 ADA TRANSITION PLAN Ongoing project. 332-400-8709-8807 332 STATE GRANTS CIP STORMWATER IMPROVEMENTS 1313 UNITED STORM WATER, INC.20190237 $163,896.70 FY18-19 CONSTRUCTION OF SANTA Resolving Reimbursement with Grant Agency, then NOC 334-400-8405-8004 334 QUIMBY PARK DEVELOPMENT CIP ARCHITECTURE DESIGN SERVICES 1377 JOHNSON FAVARO, LLP 20190312 $187,415.00 FY18-19 LADERA LINDA ARCHITECT Ongoing project. 343-400-3130-5118 343 MEASURE W Public Works REIMBURSABLE SERVICES 116 JOHN L. HUNTER & ASSOCIATES, INC.20210083 $23,839.35 FY20-21 NPDES PROGRAM IMPLEMEN Ongoing project. TOTAL $2,784,879.12 A-4 Attachment B Summary of Continuing Appropriations and Additional Appropriations FY 2020-2021 Fund Fund Name Account Numbers Description Amount 2,784,879$ 101 General Fund various accounts: 101-400-XXXX-5101 101-400-XXXX-5201 101-400-2999-4901 Employee compensation study, American Rescue Plan Act (ARPA)support, security camera reimbursements, pavement striping and marking services, RPVtv services, and additional feasibility study analysis of mixed-use development opportunities, information technology upgrades, trail counters, technology system upgrades, and trail repairs. 284,800 101 General Fund various salaries and benefit accounts: 101-400-3110-4XXX 101-400-4110-4XXX Personnel costs for ARPA support including restoring a portion of the personnel costs for Senior Engineer and Assistant Planner. 138,000 220 Measure R 220-400-XXXX-5101 Eligible Measure R projects for repairs and maintenance, traffic studies, striping, signage. 100,000 101 682 General Fund Employee Pension Fund 101-400-0000-9682 682-300-0000-9101 Transfers-Out from General Fund to Employee Pension Plan in accordance with City's Employee Pension Guideline. 333,000 TOTAL 3,640,679$ See Attachment A for details - Purchase Order Carryover Schedule B-1