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CC SR 20221220 J - FY2021-22 Year-End and FY2022-23 Q1 CITY COUNCIL MEETING DATE: 12/20/2022 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action regarding the FY 2021-22 Year-end Unaudited Financial Report and the FY 2022-23 First Quarter Report. RECOMMENDED COUNCIL ACTION: (1) Receive and file the FY 2021-22 Year-end Unaudited Financial Report; (2) Approve the Purchase Order Carryover Schedule of $16,743,224 from FY 2021- 22 to FY 2022-23, thus, approving the following: i. Decreasing FY 2021-22 Final Budget for the following: $447,073 (General Fund), $12,405,026 (Capital Infrastructure Program), $2,383,757 (Federal Grants – ARPA), $4,039 (Abalone Cove Sewer), $142,502 (Gas Tax), $203,321 (Measure R), $31,337 (Measure W), $286,608 (Proposition C), $612,129 (Quimby), $220,938 (State Grants), $4,194 Waste Reduction, and $2,300 (Equipment Replacement); and ii. Increasing FY 2022-23 Budget for the following: $447,073 (General Fund), $12,405,026 (Capital Infrastructure Program), $2,383,757 (Federal Grants – ARPA), $4,039 (Abalone Cove Sewer), $142,502 (Gas Tax), $203,321 (Measure R), $31,337 (Measure W), $286,608 (Proposition C), $612,129 (Quimby), $220,938 (State Grants), $4,194 Waste Reduction, and $2,300 (Equipment Replacement). (3) Approve Continuing Appropriations of $5,255,573 from FY 2021-22 to FY 2022- 23, thus, approving the following: i. Decreasing FY 2021-22 Final Budget for the following: $1,272,000 (General Fund), $1,896,901 (Capital Infrastructure Program), $1,027,385 (Federal Grants – ARPA), $505,000 (Gas Tax), $200,000 (Measure M), $95,000 (Measure R), and $125,174 (Proposition C), $134,114. ii. Increasing FY 2022-23 Budget for the following: $1,272,000 (General Fund), $1,896,901 (Capital Infrastructure Program), $1,027,385 (Federal Grants – ARPA), $505,000 (Gas Tax), $200,000 (Measure M), $95,000 (Measure R), and $125,174 (Proposition C), $134,114. (4) Receive and file the FY 2022-23 First Quarter Financial Report; (5) Approve additional appropriation of $220,000 for the American Rescue Plan Act (ARPA) in FY 2022-23 for the Ladera Linda Community Park Project; and (6) Approve allocating the available budget balance of $220,000 in the CIP Fund for the Western Avenue Beautification Project. FISCAL IMPACT: The recommended Council actions will increase the FY 2022-23 budget by approximately $22.2 million in various funds. 1 Amount Budgeted: N/A Additional Appropriation: $22,198,798 Account Number(s): Various accounts; see Attachments A and B ORIGINATED BY: Jason Loya, Senior Administrative Analyst Vina Ramos, Deputy Director of Finance REVIEWED BY: Trang Nguyen, Director of Finance APPROVED BY: Ara Mihranian, AICP, City Manager 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, 2022 is presented for the City Council’s review. The year-end report is one of the financial reports prepared annually , delivering results for the fiscal year that started on July 1, 2021 and ended on June 30, 2022. The purpose of the report is to compare actual revenues and expenditures over year -end estimates, with the emphasis of the General Fund. The Fiscal Year 2021-22 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 (CLA) 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 a clean audit. To complete the audit process, CLA will present the report to the City Council Audit Subcommittee, comprised of Councilmember Bradley and Councilmember Alegria in January or February 2023. 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). In addition to the year-end report, Staff has reviewed all revenues and expenditures for FY 2022-23 first quarter, concentrating 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. 2 DISCUSSION: 1. Fiscal Year 2021-22 General Fund Year-End Results At the City’s Budget Adoption hearing held on June 21, 2022, Staff projected FY 2021 -22 General Fund revenues to end the year at approximately $35.1 million and expenditures to end at almost $32.6 million, including transfers, resulting in a positive varia nce of over $2.5 million (revenues to expenditures). The General Fund unaudited actual year -end results show the City’s operations ending the year with total revenues of over $36.2 million and $31.6 million of expenditures, including transfers, resulting in a positive variance of almost $4.6 million (revenues to expenditures). The following table is a summary of Fiscal Year 2021-22 General Fund results. Table 1 – FY 2021-22 General Fund Summary Compared to the year-end estimates, the fund balance increased by almost $2.1 million or 7% over year-end estimates. This change was the result of the unaudited actual for revenues ending higher than year-end estimates by approximately $1.1 million and underspending of almost $1 million in expenditures. The increase in revenues is primarily from higher-than-expected inflow from transient occupancy tax, sales tax, utility users’ tax, and other taxes and miscellaneous revenue. The positive variance for expenditures is mainly due to timing for the purchase and managing of real properties commonly known as the Lower Filiorum and Plumtree Properties, which closed escrow in July of 2022, the start of FY 2022-23. The subsequent discussion includes details of the results of FY 2021-22 revenues and expenditures. General Fund Revenues Revenues increased by nearly $1.1 million or 3.1% compared to year-end estimates, including transfers. Table 2 provides an overview of major revenue sources and compares the year-end estimates to unaudited year-end actuals. Category FY 2021-22 Revised Budget FY 2021-22 Year-End Estimates FY 2021-22 Unaudited Actuals Changes to Year-End Estimates Revenues 30,425,700$ 35,128,700$ 36,221,444$ 1,092,744$ Expenditures (33,258,921) (32,589,238) (31,628,316) (960,922) Total Surplus (2,833,221)$ 2,539,462$ 4,593,127$ 2,053,665$ *Including Transfers *Excluding Requests for: PO Carryover $447,073 and Continuing Appropriation of $1.3M 3 Table 2. FY 2020-21 General Fund Revenues – Estimates vs. Actuals A significant shift in the economy took place during FY 2021 -22 and led to a favorable return toward historical figures. Because of the ongoing recovery, Staff adjusted revenue projections to $35.1 million during the third quarter financial review. The economic upswing and rebound in General Fund revenues was highlighted throughout the budget cycle and remained consistent until year-end. According to unaudited year-end actuals, the City received over $36.2 million in total revenues and exceeded expectations by $1.1 million or 3.1%, including transfers. A summary of key changes to major revenue sources is detailed below. Property Tax Revenues came in at $15.7 million, $2,258 or 0.01% lower than year -end estimates. The slight negative variance between year-end estimates to unaudited actuals is attributed to Secured and Redevelopment Property Tax Trust Fund (RPTTF) revenues . Property transfer tax revenue, however, experienced greater than expected growth and ended the year at $735,378, nearly $50,000 above year-end estimates. Vehicle License Fees (VLF) also exceeded year-end estimates by $32,000, ending the year at $5.6 mill ion. Overall, robust sales activity positively contributed to a growth of 4.4% in FY 2021-22 revenues compared to the prior year. As home values continued to rise, sales prices rose accordingly due to low inventory and affordable mortgage rates at that time. Transient Occupancy Tax (TOT) Transient Occupancy Tax is separated into two categories; TOT revenue from Terranea Resort 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 $5.5 million in revenue from Terranea and $220,000 from all miscellaneous properties. As the hospitality and travel industries began to recover, projections for Terranea were increased by $1.9 million during the third quarter review. A substantial rebound in these industries led to $5.9 million in TOT revenue received from Terranea ending FY 2021 -22, the highest amount on record. Miscellaneous TOT revenues accounted for $223,600. Combined, Revenue Source Adopted Budget 3rd Qtr Year-End Estimates Unaudited Year-End Actuals Property Tax 14,960,300$ 15,744,100$ 15,741,842$ (2,258)$ -0.01% Transient Occupancy Tax 3,978,400 5,750,100 6,170,132 420,032 7.3% Sales Tax 2,163,400 2,510,600 2,782,443 271,843 10.8% Permits & Fees 2,083,100 3,263,900 3,338,328 74,428 2.3% Franchise Tax 2,150,000 2,150,000 2,278,003 128,003 6.0% Utility Users Tax 1,915,000 2,317,100 2,525,992 208,892 9.0% Other Taxes & Misc. Revenues 2,825,500 3,042,900 3,074,704 31,804 1.0% Subtotal 30,075,700 34,778,700 35,911,444 1,132,744 3.3% Transfers In 350,000 350,000 310,000 (40,000) -11.4% Total 30,425,700$ 35,128,700$ 36,221,444$ 1,092,744$ 3.1% Changes from Year- End Estimates FY 2021-22 4 total TOT revenues surpassed year-end estimates by $420,000 or 7.3%, finishing the year at $6.2 million. Sales Tax Revenue in this category experienced a strong and consistent recovery this fiscal year , which led Staff to update year-end estimates, increasing projections by 6.2% from $2 .4 million to $2.5 million. This trend was partly attributed to the continued recovery from restaurants and hotels along with increased revenue from the state and county pools. Other than Terranea, golf clubs/courses lifted the leisure/entertainment catego ry, and all restaurant segments had strong performances. Marshalls reported the strongest sales quarter in its history, which boosted general consumer goods along with higher taxable sales from the mortuary and memorial park. Revenue ended the year at $2.8 million, roughly $271,800 or 10.8% over the year-end estimate of $2.5 million. Permits and Fees Revenue from permits and fees ended the year at $3.3 million, exceeding the year -end estimate by $74,428 or 2.3%. This revenue source is comprised of roughly 14 permit and fee types, such as building and safety permits, plan check permits, planning and zoning permits, and animal licenses. The average total number of permits and other building activities outperformed the previous fiscal year, lifting activity upward to pre-pandemic levels. Implementation of the new fee structure in July 2021 also supported growth. Franchise Tax The City received $2.3 million in revenue, approximately $128,000 or 6% 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 primarily comes from Southern California Edison and Southern California Gas Company. User Utility Tax Revenue ended the year at $2.5 million, $208,892 or 9% over year-end estimates. UUT is dependent on outside factors, including weather conditions, consumption of utilities, natural gas prices, and rate increases. Consumers continued to pay substantially higher costs for utilities due to persistent inflationary pressures, leading to higher than typical revenues received in this category. Other Taxes and Miscellaneous Revenue This revenue category consists of approximately 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 million in revenue, approximately $31,800 or 1% higher than year-end estimates. The revenue categories that had the largest impact on this better-than-expected performance were golf tax which ended the year at $730,966 (year-end estimate of $600,000), parking lot fees with $273,325 (year-end estimate $200,000), and rental/lease revenue with $607,127 (year-end estimate $472,000). 5 General Fund Expenditures At the end of FY 2021-22, total expenditures ended the year at $31.6 million, approximately $1 million or 3% lower than year-end estimates, 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 2022. Personnel Costs Salaries and benefits account for $12 million or 36% of the total revised budget, including transfers. At the end of the third quarter, Staff projected to end the year lower than budgeted at approximately $10.3 million due to unfilled vacancies and delayed recruitments. Based on the year-end actuals of almost $10.4 million, this category is slightly over than estimated by $111,200 or 1%. This amount is a combination of unanticipated vacation buy-outs from employee separations and using salary savings for temporary contract services for unfilled vacant positions based on increased service demands. 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 with $15.8 million, which is almost $1.5 million or 9% lower than the year-end estimates. The positive variance over year- Expenditure Category Revised Budget 3rd Qtr Year-End Estimates Unaudited Year-End Actuals Salaries 8,652,400$ 7,284,500$ 7,484,653$ 200,153$ 3% Benefits 3,377,800 3,006,800$ 2,917,882 (88,918) -3% Legal Services 940,000 933,100 910,480 (22,620) -2% Sheriff Contract 7,150,200 7,150,200 6,985,320 (164,880) -2% Supplies 605,586 611,586 496,310 (115,276) -19% Professional & Technical 3,357,671 2,870,389 2,649,259 (221,130) -8% Repairs & Maintenance 2,698,174 2,676,259 2,650,626 (25,633) -1% Training/Conference 346,405 268,119 233,688 (34,431) -13% Capital 1,509,554 1,441,200 444,539 (996,661) -69% Misc - General Liabilities Premium 735,400 735,000 737,134 2,134 0% Misc -Equipment Replacement Charges 314,500 308,400 308,400 0 0% Misc - Other 293,231 295,585 385,510 89,925 30% Subtotal 29,980,921 27,581,138 26,203,801 (1,377,337)-5% Transfers Out 3,278,000 5,008,100 5,424,515 416,415 8% Total 33,258,921$ 32,589,238$ 31,628,316$ (960,922)$ -3% Changes from Year-End Estimates FY 2021-22 6 end is primarily from an unspent budget in capital for land purchase and professional and technical services. The highlights of the major variances for non-personnel costs are as follows: Capital The Capital category ended the year at approximately $996,600 or 69% lower than estimated year-end amount of $1.4 million. The majority of the unspent amount is due to timing from the $1.3 million for the purchase and managing certain real properties commonly known as the Lower Filiorum and Plumtree properties. The remaining balance for the purchase will be requested as a continuing appropriation for the final transaction that was completed in July 2022. Professional and Technical Services Professional and technical services ended at approximately $2.6 million. Based on the year-end projection of $2.8 million, this category ended the year lower than projected by $221,100 or 8%. The unspent budget amounts are from projects that were already approved but not completed by year-end such as the housing element, traffic calming, employee classification and compensation study, and other minor contract services. The purchase order balances will be requested to be carried over in FY 2022 -23. Repairs and Maintenance At the end of the fiscal year, repairs and maintenance ended at approximately $2.7 million, which is $25,600 or 1% lower compared to the year-end estimates. Of this amount, $275,000 is unspent budget on unfinished projects and includes purchase order carryover requests. The unspent amount is mainly from the resurfacing of basketball and tennis courts, which are expected to be completed in FY 2022-23. 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 in $61,800 or 12% lower than year-end estimates. Of this amount, a purchase order of $11,100 will be requested to carryover to complete the purchasing of trash cans for parkways. Similarly, training and conference ended the year with additional savings of $36,700 or 14% over year-end projections of $233,700. Since training and conference are budgeted annually, there are no purchase order carryover requests for this line item. Miscellaneous – General Liabilities Premium, Equipment Replacement Charges, Other This category includes the City’s insurance payment premium, equipment replacement charges to the departments (for future use), and other miscellaneous expenses such as merchant fees. At the end of the fiscal year, the miscellaneous category ended at $1.4 million. This is $92,000 or 7% higher than estimated, mainly due to the increase in merchant fees. The merchant fees are from the increased financial transaction activities from permits, business licenses, online tax payments, recreation registration classes, and collected parking fees at Abalone Cove. 7 Overall, Table 4 is a summary of purchase order (PO) carryover requests and continuing appropriation requests for General Fund by category. Additional details are presented in a later section of the report. Table 4 – PO Carryover and Continuing Appropriation Requests Transfers-Out This category ended the year at $5.4 million which includes transfers from the General Fund to the Capital Infrastructure Program Fund (CIP), Employee Pension Service Fund, and other Special Revenues Funds. The transfers to CIP ended the year at almost $4.7 million, approximately $416,400 or 10% higher than estimated. This is largely from the higher than expected of TOT revenues. The remaining transfers to the Employee Pension Service Fund of $640,000, Portuguese Bend of $55,000, and Subregion One of $30,00 0 were on target, ending the year the same as year-end estimates at $725,000. 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 unrestricted excess fund balance reserve (surplus) remaining at the end of the year. At the end of FY 2021-22, the General Fund Balance ended at almost $30.4 million, an increase of $2.1 million or 7% over year-end estimates of $28.3 million. After the City Council’s 50% Reserve Policy, accounting for purchase order carryover items, and continuing appropriations, the General Fund has an unrestricted excess surplus of approximately $15.7 million. This is an increase of $531,00 or 3% over year-end estimates of $15.2 million. Table 5 below is a reconciliation of the changes to estimates and the reconciliation of the General Fund balance at the end of FY 2021 -22. Category PO Carryover Continuing Appropriation Capital $79,115 $985,000 Professional and Technical 288,566 0 Repairs and Maintenance 53,621 287,000 Supplies 11,128 0 Training 14,643 0 TOTAL $447,073 $1,272,000 8 Table 5 – FY 2021-22 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 $38.1 million. Of this amount, the FY 2021-22 total General Fund TOT transfers-in is approximately $4.4 million and an additional transfers-in of $309,200 from prior year’s surplus. Moreover, the total capital project expenditures ended the year at almost $674,800. Compared to the year - end estimates of $37.2 million presented to the City Council in April 2022, the ending fund balance is higher by approximately $930,000 or 3%. The variance is mainly from the increase in General Fund TOT transfer and unspent budget for projects that were not completed by year-end. Overall, based on revenues, new debt financing source, and expenditures, the CIP fund ended the year with an unrestricted excess reserve of $18.8 million. This amount is net of the City Council policy reserve of $5 million, purchase order carryover requests of $12.4 million, and app roximately $1.9 million of continuing appropriation requests. The carryover requests and continuing appropriations are projects that were approved in FY 2021-22 but not completed by yearend. Other Governmental Funds Other Governmental Funds include 29 Special Revenue Funds and Permanent Funds such as Gas Tax, ARPA, Employee Pension Fund, Proposition A and C, Measure R, Measure M, Measure W, Other Grants, and Improvement Authority. The total restricted fund balance for these funds at the end of the fiscal year is approximately $15.5 million. Of this amount, almost $1.9 million or 12% is restricted by City Council Policy: $11,900 for Habitat Restoration Endowment, $59,000 for the Habitat Restoration Fund, $750,000 for Sub-Region One, and $1 million for Abalone Cove Improvement Authority. In addition to the Council policy, these funds have purchase order carryover totaling almost $3.9 million and continuing appropriations of approximately $2.1 million, resulting in an General Fund FY 2021-22 Revised Budget FY 2021-22 Year-End Estimates (3rd Qtr) FY 2021-22 Uaudited Year-End Actuals Beginning Fund Balance - 7/1/2021 25,798,773 25,798,773 25,798,773 Add: Revenues 30,075,700 34,778,700 35,911,444 1,132,744 3% Add: Transfers-In 350,000 350,000 310,000 (40,000)-11% Total Revenues 30,425,700 35,128,700 36,221,444 1,092,744 3% Less: Expenditures (28,680,921) (26,281,138) (25,888,701) (392,437)-1% Less: Expenditures - Land (1,300,000) (1,300,000) (315,100) (984,900)-76% Less: Transfers to CIP (2,553,000) (4,283,100) (4,699,515) 416,415 10% Less: Transfers to Pension (640,000) (640,000) (640,000) - 0% Less: Other Transfers-Out (85,000) (85,000) (85,000) - 0% Total Expenditures (33,258,921) (32,589,238) (31,628,316) (960,922)-3% Unaudited Ending Fund Balance - 6/30/2022 22,965,552 28,338,235 30,391,900 2,053,665 7% PO Carryover - - 447,073 (447,073) Continuing Appropriation - - 1,271,900 (1,271,900) 50% Reserve Policy 13,709,200 13,140,569 12,944,351 196,218 1% Unrestricted Excess/(Deficit) Reserve - 06/30/22 9,256,352 15,197,666 15,728,577 530,911 3% Changes to Year-End Estimates 9 unrestricted excess reserve of $7.7 million at yearend. Additional information on purchase order carryover and continuing appropriation requests are discussed next. Equipment Replacement Fund The Equipment Replacement Fund ended the year with a fund balance of approximately $2.9 million. After accounting for the City Council’s policy restricted amount of $1.8 million, the fund ended the year with an unrestricted excess reserve of approximately $1.1 million. The City regularly evaluates assets and extends the life of the assets when possible. As such, compared to the year-end estimates, the fund balance ended the year higher than estimated by $529,000 due to fewer equipment replacements by year-end. Table 6 presents a year-end summary of the CIP Fund, Special Revenues and Other Funds, and Equipment Replacement Fund. Table 6 – FY 2021-22 CIP Fund, Special Revenue Funds, Other Funds Overall, based on the year-end results presented above, the City has ended another favorable year with solid balances across funds. As part of the City’s year-end closing process, Staff seeks the City Council’s acceptance of the FY 2021-22 Unaudited Year- End Financial Report. Once available, Staff will present the City’s ACFR to the City Council, which includes the final audit results and financial statements. 2. Purchase Order Carryover As part of the year-end process, Staff has completed reviewing purchases that were encumbered in FY 2021-22 but not finished or delivered by June 30, 2022. The total Capital Improvement Special Revenues & Other Governmental Funds Equipment Replacement Beginning Fund Balance - 7/1/2021 $26,391,050 $12,948,803 $2,759,072 Add: Revenues* (303,137) 9,800,184 288,100 Add: Transfers-In from General Fund (TOT) 4,391,072 - - Add: Other Transfers-In from General Fund 309,200 695,000 - Total Revenues 4,397,135 10,495,184 288,100 Add: Other Financing Source (BOW Loan) 8,000,000 - - Total Other Financing Source 8,000,000 - - Less: Expenditures (674,797) (7,618,574) (137,201) Less: Transfers-Out - (310,000) - Total Expenditures (674,797) (7,928,574) (137,201) Unaudited Ending Fund Balance - 6/30/2022 38,113,388 15,515,413 2,909,971 Restricted: City Council Policy (5,000,000) (1,820,900) (1,769,625) PO Carryover Requests (12,405,026) (3,888,825) (2,300) Continuing Appropriation Requests (1,896,901) (2,086,672) - Unrestricted Excess/(Deficit) Reserve - 06/30/22 18,811,462 $7,719,016 $1,138,046 *Reflects GASB 72 Fair Value Adjustment. 10 purchase order carryover is approximately $16.7 million. Of this amount, $16.3 million or 97% are related to capital projects and $447,000 or 3% is a combination of professional and technical, and repairs and maintenance in the General Fund. The main capital projects that were budgeted in FY 2021-22 but not completed by yearend are Ladera Linda Community Park, Portuguese Bend Landslide Remediation, residential street rehabilitation, and the Mixed-Use Overlay District. For the General Fund, a portion of the carryover amount includes projects such as the Housing Element, solar automated license plate readers (ALPR), facilities asset management, and various park repairs. Table 7 is the summary of the open purchase orders aggregated by fund. Additional details for the purchase order requests are presented in Attachment A. Table 7 – FY 2021-22 Purchase Order Summary (by Fund) To meet budgetary requirements for the projects that were previously approved but not completed by yearend, Staff seeks the City Council’s approval to carry over the purchase orders of $16.7 million into FY 2022 -23 (Attachment A). The carryover amount has no fiscal impact as it decreases the FY 2021 -22 budget and increases the FY 2022-23 budget by the same amount. 3. Continuing Appropriations Additionally, the Finance Department, in partnership with the other departments and the City Manager, prepares a summary of proposed continuing appropriations to be carried over to FY 2022-23. The request includes emergency repairs, additional funding for utilities and merchant fees, and projects that were approved in FY 2021 -22 but have not started. Table 8 shows the summary amounts of the continuing appropriation requests by fund. Additional details are included in Attachment B of the staff report. Fund Fund Name PO Balance 101 General Fund $447,073 202 Gas Tax 142,502 213 Waste Reduction 4,194 215 Proposition C 286,608 220 Measure R 203,321 225 Abalone Cove Sewer District 4,039 330 CIP 12,405,026 331 Federal Grants-ARPA 2,383,757 332 State Grants 220,938 334 Quimby Park Development 612,129 343 Measure W 31,337 682 Equipment Replacement 2,300 TOTAL $16,743,224 11 Table 8 – FY 2021-22 Continuing Appropriation Requests Staff seeks the City Council’s approval of the Continuing Appropriation Requests of almost $5.3 million to meet budgetary requirements for the land purchase, emergency repairs, maintenance, and ongoing capital projects. 4. Fiscal Year 2022-23 First Quarter Financial Report General Fund Revenues The City received close to $5.5 million in General Fund revenues through the first quarter of FY 2022-23. Total revenues rose by $0.5 million or 11% compared to the same quarter of the prior fiscal year. The net positive results, however, are accompanied b y an economy that is still best described as uncertain. Fiscal challenges such as historically high inflation, labor shortages, and less-affordable mortgage rates remain prevalent. In light of these indicators, Staff continues to monitor the ebb and flow of the economy while upholding the City Council’s fiscally conservative approach to budgeting. As such, the section below provides a detailed review of first quarter results compared to last year in addition to a forward-looking perspective for the current fiscal year. As a starting point, Table 9 below summarizes first quarter results for each major revenue source, including transfers, and provides a comparison between FY 2021-22 to FY 2022- 23. Fund Name Continuing Appropration General Fund $1,272,000 CIP 1,896,901 Federal Grants-ARPA 1,027,385 Gas Tax 505,000 Measure M 200,000 Measure R 95,000 Proposition C 125,174 Quimby Park Development 134,114 TOTAL $5,255,573 12 Table 9: 1st Quarter General Fund Revenues - Current Year vs. Prior Year The year-over-year increase in first quarter FY 2022-23 is mostly associated with the notable growth in revenues from TOT, sales tax, and permits and fees. These categories combined to account for $3.7 million or 68% of first quarter revenues. Overall growth in major General Fund revenue sources was marginally offset by net decreases in property tax, other taxes and miscellaneous revenues, and transfers-in. Greater insight into these varying results is provided for each revenue source in the respective section below. On a forward-looking basis, revenues received through the first quarter make up 15% of the FY 2022-23 Adopted Budget. TOT, permits and fees, and utility users’ tax have individually received approximately 35%, 34%, and 31% of budgeted revenues during this period, respectively. Quarterly results are in line with expectations overall yet impacts from the rise in federal interest rates and implications of decelerated economic growth will be closely monitored as the year progresses. Table 10 provides a breakdown of revenues, including transfers, received through September 30, 2022, compared to the adopted budget. Table 10: FY 2022-23 1st Quarter Revenue Status FY 2021-22 FY 2022-23 1st Quarter 1st Quarter Property Tax 421,500$ 390,382$ (31,118)$ -7.4% Transient Occupancy Tax 1,682,900 2,037,843 354,943 21.1% Sales Tax 495,500 640,428 144,928 29.2% Permits & Fees 661,900 1,035,082 373,182 56.4% Franchise Tax 326,700 340,579 13,879 4.2% Utility Users Tax 635,900 677,062 41,162 6.5% Other Taxes & Misc. Revenues 592,469 255,142 (337,327) -56.9% Transfers In 87,500 75,000 (12,500) -14.3% Total Revenues $ 4,904,369 $ 5,451,517 $ 547,148 11.2% Revenue Source Variance FY 2022-23 FY 2022-23 Adopted Budget 1st Quarter Property Tax 16,406,800$ 390,382$ 2.4% Transient Occupancy Tax 5,750,100 2,037,843 35.4% Sales Tax 2,687,200 640,428 23.8% Permits & Fees 3,077,600 1,035,082 33.6% Franchise Tax 2,150,000 340,579 15.8% Utility Users Tax 2,201,200 677,062 30.8% Other Taxes & Misc. Revenues 3,464,100 255,142 7.4% Transfers In 300,000 75,000 25.0% Total Revenues $ 36,037,000 $ 5,451,517 15.1% Revenue Source % Received 13 Property Tax Revenue is budgeted at $16.4 million in FY 2022 -23, an increase of about $666,000 or 4.2% over last fiscal year. At the end of the first quarter, the City received approximately $31,000 less revenue when compared to the first quarter of FY 2021-22. This variance is primarily attributed to timing because the bulk of property tax revenue is r eceived from December through June. It’s also worth noting that real estate trends during 2021, which included strong sales activity and price increases, are reflected in the FY 2022 -23 tax rolls. Recent concerns over rising interest rates and a cooling real estate market will have greater impacts in the subsequent fiscal year, pending actual experience. 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 noted, a rebound in the hospitality and travel industries contributed to the highest TOT revenues received on record by yearend. The upward trend continued into FY 2022 -23 with TOT revenues totaling over $2 million at the end of the first quarter. Compared to first quarter of the previous fiscal year, TOT revenues increased by almost $355,000 or 21%. The $2 million in TOT revenue also represents 35% of the adopted budget. Quarterly results demonstrate a positive outlook for this revenue source in consideration of persistent inflation and changes in the economy. Despite the overall positive outlook, no adjustments are recommended at this time but will be considered as new trends are revealed. Sales Tax On a quarterly basis, sales tax revenues increased by almost $145,000 or 29% compared to FY 2021-22. At just over $640,000 through the first quarter, sales tax revenues received account for almost 24% of the adopted budget. Prices on taxable goods remained high during this period as inflation persisted, however, these conditions positively impacted sales tax revenues. The Federal Reserve Board’s ongoing battle with inflation is projected to result in slower growth through the remainder of FY 2022-23. Staff continues to monitor sales tax trends and will recommend adjustments to budgeted revenues as needed. Permits and Fees Permits and Fees revenue totaled over $1 million through first quarter FY 2022 -23. Revenues increased by over $373,000 or 56% compared to the first quarter of last fiscal year. Building and safety permit revenue of more than $673,000 significantly outperformed all other areas within this category. These results are partly attributed to an increase in permits for accessory dwelling unit and junior accessory dwelling unit construction because of state law to streamline the review and development process. No adjustments are recommended at this time. However, the ongoing review of revenue trends will continue. 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 received over $340,000 in revenue through the first quarter, 15.8% of the $2.2 million budgeted in FY 2022 -23. First quarter revenue 14 is up by almost $14,000 when compared to FY 2021-22. No adjustments to the budget are needed at this time. Utility Users Tax (UUT) This revenue source is driven primarily by weather conditions, utility rates and consumption. The City received over $677,000 in revenue through the first quarter, 30.8% of the $2.2 million budgeted in FY 2022 -23. First quarter revenues are up by approximately $41,000 when compared to the first quarter of FY 2021-22. Higher than average utility costs have led to increased revenue growth and budget for the current fiscal year. As inflation remains, current revenue assumptions remain consistent with industry trends. No budget adjustments are recommended at this time. Other Taxes and Miscellaneous Revenue Revenues totaled over $255,000 through first quarter FY 2022-23 and represent 7.4% of budgeted revenues to date. Compared to last fiscal year, revenues are lowe r by $337,000 or roughly 57% mainly due to the transfer of investments from Vining Sparks to Stifel. Staff is working with the Stifel’s investment team to reconcile the City’s investment portfolio. General Fund Expenditures As of September 30, 2022, the total for General Fund expenditures is approximately $8.3 million or 22% of total budget, including transfers out. As shown on Table 11 below, compared to the same period last year, the expenditures increased by almost $2.2 million or 38%. The increases are aligned with the City’s adopted budget such as capital purchase, resumed programs, and ongoing maintenance. Table 11 provides a comparison of the first quarters in FY 2021-22 and FY 2022-23. Table 11: First Quarter – FY 2021-22 vs. FY 2022-23 A brief summary of the increased activities is discussed below. Expenditure Type 1st Quarter FY 2021-22 1st Quarter FY 2022-23 Salaries $1,485,788 1,894,237$ 408,449$ 27% Benefits 644,851 750,871 106,020$ 16% Sheriff Contract 1,727,646 1,208,100 (519,547)$ -30% Legal Services 157,721 295,239 137,518$ 87% Supplies 66,890 117,468 50,578$ 76% Professional and Technical 348,774 476,494 127,719$ 37% Repairs 515,320 512,013 (3,307)$ -1% Training and Conference 39,454 68,854 29,399$ 75% Capital - 1,012,417 1,012,417$ 100% Misc. Expense 333,061 344,808 11,748$ 4% Transfers-Out 736,250 1,647,225 910,975$ 124% Grand Total $6,055,757 $8,327,726 $2,271,969 38% Variance 15 Personnel Costs At the end of the first quarter, salaries ended at approximately $1.9 million or 20% of the FY 2022-23 Adopted Budget. Compared to the prior year, this category is $408,500 or 27% higher. The variance is in line with vacant positions that were filled in Community Development (Building and Safety Division), Recreation and Parks, and Public Works, Cost of Living Adjustments (COLA), performance merit increases, and increased activities from the resumed Recreation and Parks programs. Correspondingly, benefits ended higher than the previous year at approximately $106,000 or 16%. Non-Personnel Costs At the end of the first quarter, the non-personnel categories ended at approximately $4 million or 22% of the FY 2022-23 Adopted Budget. This category includes Legal Service, Sheriff Contract, Repairs and Maintenance, Professional and Technical, Supplies, Training and Conference, Capital, and Miscellaneous Expense. Overall, as anticipated from increased citywide activities, the non-personnel costs are higher by almost $900,000 or 27% compared to the same period as l ast year. The increased amount is mainly from the purchase and managing real properties of the Lower Filiorum and Plumtree properties and the timing of disbursements such as the Sheriff contract services, litigation services, and professional and technical services. Transfers-Out At the end of first quarter, Transfers-Out ended at approximately $1.6 million or 25% of the FY 2022-23 Adopted Budget. Compared to the same period last year, this category is almost $911,000 or 125% higher, due to the increased TOT revenue budget. Table 12 summarizes FY 2022-23 expenditures and the percentage of expenditures over budget for the period ending September 2022. Table 12: FY 2022-22 General Fund Status Report - Expenditures Expenditure Type FY 2022-23 Adopted Budget 1st Quarter Actuals % Expenditures Salaries $9,512,100 1,894,237$ 20% Benefits 3,359,400 750,871$ 22% Sheriff Contract 7,254,000 1,208,100$ 17% Legal Services 940,000 295,239$ 31% Supplies 621,528 117,468$ 19% Professional & Technical 3,623,289 476,494$ 13% Repairs 3,810,798 512,013$ 13% Training & Conference 382,543 68,854$ 18% Capital - 1,012,417$ 100% Misc. Expense 1,701,015 344,808$ 20% Transfers-Out 6,588,900 1,647,225$ 25% Grand Total $37,793,573 $8,327,726 22% 16 Overall, at the end of FY 2022-23 first quarter, the City’s General Fund expenditures are on track and there are no significant changes or adjustments to report currently. Similar to the City’s process annually, Staff will continue to monitor all categories and if applicable, Staff will report any significant changes in future quarterly reports. As such, at this time, Staff recommends receiving and filing the General Fund’s FY 2022 - 23 first quarter report. 5. ARPA Expenditures Overall, since the City received the $9.9 million of ARPA funds, the City Council has committed $9.6 million or 97% of the funds. Based on these commitments and once completed, the utilization of ARPA funds would relieve the General Fund for needed one- time costs and deferred maintenance projects and generate available funds in the CIP that can be used for future projects and initiatives. Based on the financial status report presented on September 20, 2022, the City Council assigned the remaining allocation of $200,000 and interest earnings to the Ladera Linda Community Park Project and reduced the use of the CIP Fund in the same amount. Hence, as part of the first quarter budget adjustment in FY 2022-23 for ARPA funds, Staff requests the City Council’s approval for the additional appropriation of $200,000 and an estimated interest earnings in the amount of $20,000 for the Ladera Linda Community Park Project. Staff will continue to monitor the interest earnings and report the status in future quarterly reports. 6. Reallocation of CIP Fund Currently, the FY 2022-23 budget for CIP Fund has an available amount of $220,000. As mentioned above, this is a result of the City Council’s approval on September 20, 2022, to allocate $220,000 of ARPA funds to the Ladera Linda Community Park Project instead of using CIP Funds. At the request of the Public Works Department, to advance the Western Avenue Beautification Project, Staff requests the City Council approve the available allocation of $220,000 to this project. This funding will advance the engineer design for this project in the FY 2022-23. As such, if approved, this action will increase the project budget for Western Avenue Beautification by $220,000 in FY 2022-23. ADDITIONAL INFORMATION: Investments at Fair Value In accordance with Governmental Accounting Standards Board (GASB), the City’s investments are reported in the accompanying statement of net position and balance sheet at fair value. Changes in fair value that occur during a fiscal year are recognized as revenue from use of money and property reported for that fiscal year. Revenue from use of money and property includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments. To comply with GASB 72 – Fair Value Measurement and Valuation (GASB 72), the fair value adjustment reported at the end of the year is $1.9 million. Of this amount, almost $1.1 million is the difference between the investment’s par value and fair value for Stifel’s investments. The remaining amount of $800,000 is the difference between the Local 17 Agency Investment Fund’s (LAIF) investment account market valuation and its fair value. Given that the City’s practice is to hold investments until maturity, the fair value adjustments are reversed in July 2022 as there is no impact to the fund balance in FY 2022-23. 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. 2021-08, 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 the prior year’s results. At the end of FY 2021-22, the City has an operating surplus of over $4.6 million and cumulatively of almost $15.87 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 2023-24 budget process. Transfers to the Employee Pension Fund City Council Goal No. 71 is to 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 Finance Advisory Committee (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, the City Council may consider a transfer from the General Fund’s surplus to the Employee Pension Plan Service Fund. As requested by the FAC, on December 19, 2022, Staff will present an analysis regarding the impact of making Additional Discretionary Payments (ADPs) toward the City’s CalPERS Unfunded Accrued Liability (UAL). Any recommendations from the FAC will be reported to the City Council at a future meeting. CONCLUSION: At the end of FY 2021-22, the results show another favorable year for the City’s General Fund ending with an operating surplus of almost $4.6 million by generating more revenue than expected and spending less than year-end estimates. Revenues ended the year almost $1.1 million or 3% above expectations largely due to the substantial performance of TOT and sales tax revenues. An increase in consumer spending within the travel and tourism industry resulted in the highest TOT revenues received on record. Taxable sales growth for restaurants, resorts, and golf courses also contributed to the favorable year - end results. Property tax revenues outperformed prior year actuals by more than 4% and continue to represent the City’s largest General Fund revenue source. For expenditures, the City maintained its long history of fiscal discipline by monitoring spending, staying within budget, and identifying savings, when possible, in FY 2021 -22. The expenditures ended the year lower than year-end estimates by almost $1 million or 3%. A port ion of the underspent budget is also due to ongoing projects that are expected to be completed in FY 2022-23. As such, the City’s General Fund’s fund balance increased by almost $4.6 18 million from prior year. After accounting for the 50% City Council Policy Reserve, purchase order carryover, and continuing appropriations, the General Fund ended the year with approximately $15.7 million in unrestricted excess reserve. Like the General Fund, the year-end results also demonstrate another favorable year for the CIP Fund, Special Revenue Funds, and Other Funds. The CIP’s fund balance ended at $38.1 million with an unrestricted excess reserve of approximately $18.8 million, after deducting the City Council Policy of $5 million and requests for purchase orders and continuing appropriations. The Equipment Replacement Fund’s balance ended at $2.9 million with an unrestricted excess reserve of over $1.1 million. The City’s Special Revenue Funds and Other Funds ended the year at $15.5 million with unrestricted excess reserve of over $7.7 million, net of required reserves, purchase order carryover, and continuing appropriations. Finally, in addition to the FY 2021-22 year-end report, Staff included a summary report of the General Fund’s first quarter results in FY 2022-23. As summarized in the report, the actuals indicate that the City’s revenue has grown compared to the prior year. At the end of the first quarter, the City received $5.5 million in revenues or approximately 15% of the adopted budget and spent approximately $6.1 million or 19% of the adopted budget. Overall, total revenues are up by $0.5 million or 11% over last year’s first quarter revenues. The major contributing factor is the City’s TOT revenues, ending the quarter at $2 million, roughly 35% of the budgeted revenues in FY 2022-23. For the City’s expenditures, as anticipated, the first quarter ended higher than last year by almost $2.3 million or 38%. This result was expected due to increased activities from capital purchase, resumed programs, filled vacancies, and ongoing maintenance projects. Similar to the City’s process annually, Staff will continue to monitor all categories and if applicable, Staff will report any significant changes in future quarterly reports. ALTERNATIVES: In addition to the Staff recommendation, the following alternative action s are available for the City Council’s consideration: 1. Direct Staff not to approve the additional appropriation of $220,000 for ARPA in FY 2022-23. 2. Take other action, as deemed appropriate. 19 City of Rancho Palos Verdes Purchase Order Carryover Schedule FY 2021-22 ACCOUNT NUMBER FUND CODE Fund Description Dept Description ACCT DESCRIPTION PO NUMBER VENDOR NUMBER VENDOR NAME PO OPEN AMOUNT BALANCE AMOUNT COMMENT/DESC JUSTIFICATION 101-400-1311-6102 101 General Fund City Administration Publications/Journals 20210226 1923 MUNICIPAL CODE, CORP. 14,643 14,643 FY20-21 CC RECODIFICATION OF MUNICIPAL CODE Ongoing project. 101-400-1450-5101 101 General Fund City Administration Professional/Technical Service 20220229 2438 PUBLIC SECTOR PERSONNEL CONSULTANTS, INC. 10,000 10,000 FY21-22 PSPC CLASS & COMP STUD Ongoing project. 101-400-1470-5101 101 General Fund City Administration Professional/Technical Service 20220250 6 RAMUNDSEN SUPERIOR HOLDINGS, LLC. 27,740 27,740 FY21-22 TRAKIT ASSESSMENT Ongoing project. 101-400-1470-5101 101 General Fund City Administration Professional/Technical Service 20220288 1478 FORTECH, LLC 619 619 FY21-22 IT CONSULTING HOURS Ongoing project. 101-400-1470-5101 101 General Fund City Administration Professional/Technical Service 20220291 2525 SECURITYMETRICS, INC 9,220 9,220 FY21-22 VALIDATED PCI SAQ ASSE Ongoing project. 101-400-1470-5201 101 General Fund City Administration Repair & Maintenance Services 20220289 865 WRIGHT, BRANDON 5,000 5,000 FY 21-22 CENTRICITY REPORTER A Ongoing project. 101-400-1470-5201 101 General Fund City Administration Repair & Maintenance Services 20220292 619 KNOWBE4, INC. 4,212 4,212 FY21-22 KNOWBE4 COMPLIANCE AND Ongoing project. 101-400-3110-5101 101 General Fund Public Works Professional/Technical Service 20220075 16 WILLDAN ENGINEERING 2,190 2,190 FY21-22 RETAINING WALL ASSESSM Ongoing project. 101-400-3110-5101 101 General Fund Public Works Professional/Technical Service 20220272 3033 INTERWEST CONSULTING GROUP, INC. 5,440 5,440 FY21-22 FRONT COUNTER PLAN CHE Ongoing project. 101-400-3110-5101 101 General Fund Public Works Professional/Technical Service 20220274 456 HARRIS & ASSOCIATES 1,350 1,350 FY21-22 LLMD ANNUAL REPORT PRE Ongoing project. 101-400-3110-5101 101 General Fund Public Works Professional/Technical Service 20220276 2436 INTEGRATED ENGINEERING MANAGEMENT 27,960 27,960 FY21-22 RETAINING WALL CREST R Ongoing project. 101-400-3110-5101 101 General Fund Public Works Professional/Technical Service 20220282 2436 INTEGRATED ENGINEERING MANAGEMENT 19,020 19,020 FY21-22 RATTLESNAKE TRAIL & GA Ongoing project. 101-400-3110-5101 101 General Fund Public Works Professional/Technical Service 20220283 2436 INTEGRATED ENGINEERING MANAGEMENT 17,610 17,610 FY21-22 PVIC RESTROOM IMPROVEMENT Ongoing project. 101-400-3110-5101 101 General Fund Public Works Professional/Technical Service 20220287 2436 INTEGRATED ENGINEERING MANAGEMENT 49,920 49,920 FY21-22 FACILITIES ASSET PROJECT Ongoing project. 101-400-3120-5101 101 General Fund Public Works Professional/Technical Service 20210232 52 KOA CORPORATION 5,822 5,822 FY20-21 TRAFFIC CALMING PLANS Ongoing project. 101-400-3120-5101 101 General Fund Public Works Professional/Technical Service 20220219 2137 RAWAD HANI 889 889 FY21-22 SM TRAFFIC STUDY & ENG Ongoing project. 101-400-3130-5118 101 General Fund Public Works Reimbursable Services 20220092 1230 GEOSYNTEC CONSULTANTS, INC. 58,030 26,694 FY21-22 CIMP IMPLEMENTATION Ongoing project. A-1 City of Rancho Palos Verdes Purchase Order Carryover Schedule FY 2021-22 ACCOUNT NUMBER FUND CODE Fund Description Dept Description ACCT DESCRIPTION PO NUMBER VENDOR NUMBER VENDOR NAME PO OPEN AMOUNT BALANCE AMOUNT COMMENT/DESC JUSTIFICATION 101-400-3150-5101 101 General Fund Public Works Professional/Technical Service 20220198 456 HARRIS & ASSOCIATES 13 6 FY21-22 BURMA ROAD GATE CRASH Ongoing project. 101-400-3150-5101 101 General Fund Public Works Professional/Technical Service 20220265 2436 INTEGRATED ENGINEERING MANAGEMENT 14,083 14,083 FY21-22 GATE CONSTRUCTION MGMT Ongoing project. 101-400-3150-5101 101 General Fund Public Works Professional/Technical Service 20220266 2436 INTEGRATED ENGINEERING MANAGEMENT 8,160 8,160 FY21-22 BURMA FENCE & BOLLARD Ongoing project. 101-400-3150-5201 101 General Fund Public Works Repair & Maintenance Services 20220182 2345 D2L CONSTRUCTION, INC 13,002 13,002 FY21-22 BURMA ROAD TRAILHEAD Ongoing project. 101-400-3150-5201 101 General Fund Public Works Repair & Maintenance Services 20220198 456 HARRIS & ASSOCIATES 13 7 FY21-22 BURMA ROAD GATE CRASH Ongoing project. 101-400-3151-5201 101 General Fund Public Works Repair & Maintenance Services 20220295 2526 TAYLOR TENNIS COURTS INC 15,000 15,000 FY21-22 BASKETBALL AND TENNIS Ongoing project. 101-400-3180-4310 101 General Fund Public Works Operating Materials & Supplies 20220290 1500 RECYCLE AWAY, LLC 11,128 11,128 FY21-22 TRASH CANS FOR PARKWAY Ongoing project. 101-400-4110-5101 101 General Fund Community Development Professional/Tech Services 20220159 2120 PIASKY SOLUTIONS 2,000 2,000 FY21-22 WESTERN AVE PROJECT PS Ongoing project. 101-400-4120-5101 101 General Fund Community Development Professional/Technical Service 20210206 19 E.S.A. 44,240 44,240 FY21 HOUSING ELEMENT PROF SVS Ongoing project. 101-400-5122-5101 101 General Fund Recreation and Parks Professional/Technical Service 20220254 2132 PARKMOBILE, LLC 5,141 5,141 FY21-22 DEL CERO PARKING APP M Ongoing project. 101-400-5122-5101 101 General Fund Recreation and Parks Professional/Technical Service 20220271 1438 ALTA PLANNING + DESIGN, INC 10,463 10,463 FY21-22 TRAILS NETWORK PLAN SV Ongoing project. 101-400-6120-5201 101 General Fund Public Safety Repair & Maintenance Services 20220269 3187 VIGILANT SOLUTIONS, LLC. 66,558 16,400 FY21-22 SOLAR ALPR TRAILERS Ongoing project. 101-400-6120-8101 101 General Fund Public Safety Equipment & Furniture 20220269 3187 VIGILANT SOLUTIONS, LLC. 69,707 25,005 FY21-22 SOLAR ALPR TRAILERS Ongoing project. 101-400-6120-8201 101 General Fund Public Safety Vehicles 20220269 3187 VIGILANT SOLUTIONS, LLC. 80,360 54,110 FY21-22 SOLAR ALPR TRAILERS Ongoing project. 202-400-3120-8101 202 Gas Tax CIP Equipment & Furniture 20220279 2523 STATEWIDE TRAFFIC SAFETY AND SIGNS INC. 1,888 720 FY21-22 TRAFFIC SAFETY AND SIG Ongoing project. 202-400-8808-8005 202 Gas Tax CIP Engineering Design Services 20200242 1070 DCA CIVIL ENGINEERING GROUP, INC. 28,863 28,863 FY 19-20 CRENSHAW BLVD REHAB-Ongoing project. 202-400-8844-8001 202 Gas Tax CIP Professional/Tech Services 20220176 2592 BUCKNAM, PETER JOSEPH 112,919 112,919 FY21-22 PAVEMENT MGMT PROGRAM Ongoing project. 213-400-0000-5101 213 Waste Reduction CIP Professional/Technical Service 20220121 2961 MSW CONSULTANTS 4,194 4,194 FY21-22 SOLID WASTE REGULATORY Ongoing project. 215-400-8302-8001 215 Proposition C CIP Professional/Tech Services 20220202 2379 HOUT CONSTRUCTION SERVICES, INC. 222,791 108,905 FY21-22 PBLS PROJECT MANAGEMENT Ongoing project. A-2 City of Rancho Palos Verdes Purchase Order Carryover Schedule FY 2021-22 ACCOUNT NUMBER FUND CODE Fund Description Dept Description ACCT DESCRIPTION PO NUMBER VENDOR NUMBER VENDOR NAME PO OPEN AMOUNT BALANCE AMOUNT COMMENT/DESC JUSTIFICATION 215-400-8302-8001 215 Proposition C CIP Professional/Tech Services 20220293 2534 FEHR & PEERS 6,400 6,400 FY21-22 REVIEW EXISTING PVDS S Ongoing project. 215-400-8809-8005 215 Proposition C CIP Engineering Design Services 20220184 362 STATE OF CA, DEPT OF TRANSPORTATION 130,000 25,000 FY21-22 WESTERN AVE RIGHT-TURN Ongoing project. 215-400-8809-8804 215 Proposition C CIP Arterial St Improvements 20220184 362 STATE OF CA, DEPT OF TRANSPORTATION 130,000 105,000 FY21-22 WESTERN AVE RIGHT-TURN Ongoing project. 215-400-8837-8802 215 Proposition C CIP Other Improvements 20210032 364 CROSSTOWN ELECTRICAL & DATA, INC 41,303 41,303 FY 20-21 TRAFFIC SIGNAL INSTALL Ongoing project. 220-400-3120-8101 220 Measure R CIP Equipment & Furniture 20220279 2523 STATEWIDE TRAFFIC SAFETY AND SIGNS INC. 1,888 1,168 FY21-22 TRAFFIC SAFETY AND SIG Ongoing project. 220-400-8304-8001 220 Measure R CIP Professional/Tech Services 20200268 1851 CHAMBERS GROUP INC. 112,877 112,877 FY19-20 EIR PB LANDSLIDE MITIG Ongoing project. 220-400-8843-8801 220 Measure R CIP Infrastructures 20220211 16 WILLDAN ENGINEERING 89,277 89,277 FY21-22 PROF SRV ARTERIAL REHA Ongoing project. 225-400-0000-5101 225 Abalone Cove Sewer District CIP Professional/Technical Service 20210199 1074 NV5, INC. 2,949 2,949 FY20-21 ABALONE COVE SEWER SYS Ongoing project. 225-400-0000-5101 225 Abalone Cove Sewer District CIP Professional/Technical Service 20220233 1074 NV5, INC. 1,091 1,091 FY21-22 AB COVE SEWER SYSTEM C Ongoing project. 330-400-8304-8001 330 Capital Infrastructures Project CIP Landslide - Prof/Tech 20220063 1479 GEOLOGIC ASSOCIATES, INC. 514 514 FY21-22 PB Landslide Mitigation Ongoing project. 330-400-8304-8001 330 Capital Infrastructures Project CIP Landslide - Prof/Tech 20220202 2379 HOUT CONSTRUCTION SERVICES, INC. 217,416 148,771 FY21-22 PBLS PROJECT MANAGEMENT Ongoing project. 330-400-8304-8001 330 Capital Infrastructures Project CIP Landslide - Prof/Tech 20220296 1479 GEOLOGIC ASSOCIATES, INC. 1,495 1,495 FY21-22 ON-CALL PBLS MITIGATION Ongoing project. 330-400-8405-8001 330 Capital Infrastructures Project CIP Ll Master Plan - Prof/Tech 20220281 2505 GILMAN CONSTRUCTION MEDIA LLC 5,213 5,213 FY21-22 LL CONSTRUCTION WEB CA Ongoing project. 330-400-8405-8403 330 Capital Infrastructures Project CIP Parks Improvements 20220215 2416 AMG & ASSOCIATES, INC. 11,786,734 11,786,734 FY21-22 CONSTRUCT LADERA LINDA Ongoing project. 330-400-8420-8802 330 Capital Infrastructures Project CIP Sign - Other Improvements 20190296 1294 PALOS VERDES PENINSULA LAND CONSERVANCY 70,596 70,596 FY18-19 NATURE PRESERVE ENTRY Ongoing project. 330-400-8503-8001 330 Capital Infrastructures Project CIP Professional/Tech Services 20220234 1241 M. ARTHUR GENSLER JR. & ASSOCIATES, INC. 20,946 20,946 FY21-22 CIVIC CENTER PRELIMS S Ongoing project. 330-400-8503-8001 330 Capital Infrastructures Project CIP Professional/Tech Services 20220235 3094 GRIFFIN STRUCTURES, INC. 107,540 107,540 FY21-22 CIVIC CENTER PROJECT M Ongoing project. 330-400-8509-8001 330 Capital Infrastructures Project CIP Professional/Tech Services 20220177 2331 BUREAU VERITAS TECHNICAL ASSESSMENTS LLC 21,239 21,239 FY21-22 FACILITIES ASSET MANAGE Ongoing project. A-3 City of Rancho Palos Verdes Purchase Order Carryover Schedule FY 2021-22 ACCOUNT NUMBER FUND CODE Fund Description Dept Description ACCT DESCRIPTION PO NUMBER VENDOR NUMBER VENDOR NAME PO OPEN AMOUNT BALANCE AMOUNT COMMENT/DESC JUSTIFICATION 330-400-8708-8001 330 Capital Infrastructures Project CIP Professional/Tech Services 20210181 456 HARRIS & ASSOCIATES 53,753 53,753 FY20-21 ALTAMIRA CYN DRAINAGE Ongoing project. 330-400-8708-8001 330 Capital Infrastructures Project CIP Professional/Tech Services 20220202 2379 HOUT CONSTRUCTION SERVICES, INC. 156,527 26,544 FY21-22 PBLS PROJECT MANAGEMENT Ongoing project. 330-400-8715-8004 330 Capital Infrastructures Project CIP Architecture Design Services 20190337 1070 DCA CIVIL ENGINEERING GROUP, INC. 7,276 7,276 FY 18-19 STORM DRAIN DEFICIENC Ongoing project. 330-400-8828-8005 330 Capital Infrastructures Project CIP Engineering Design Services 20220207 16 WILLDAN ENGINEERING 8,200 8,200 FY21-22 REVISE PLANS & SPECS @ Ongoing project. 330-400-8834-8005 330 Capital Infrastructures Project CIP Engineering Design Services 20190227 2663 SUNBEAM SOLAR 146,205 146,205 FY18-19 RES. REHAB AREAS 3 AND Ongoing project. 332-400-4120-5101 332 State Grants CIP Professional/Tech Services 20220125 501 DUDEK 220,938 220,938 FY21-22 MIXED-USE OVERLAY ZONI Ongoing project. 333-400-8005-8001 333 Federal Grants-Arpa CIP Professional/Tech Services 20220232 1423 SHI INTERNATIONAL CORP. 8,885 8,885 FY 21-22 CH NETWORK UPGRADE- CO Ongoing project. 333-400-8005-8101 333 Federal Grants-Arpa CIP Equipment & Furniture 20220214 1423 SHI INTERNATIONAL CORP. 5,950 5,950 FY21-22 NEW WIFI ACCESS POINTS Ongoing project. 333-400-8005-8101 333 Federal Grants-Arpa CIP Equipment & Furniture 20220252 2473 IMPEX TECHNOLOGIES, INC. 3,221 3,221 FY 21-22 NEW NUTANIX CLUSTER Ongoing project. 333-400-8405-8001 333 Federal Grants-Arpa CIP Professional/Tech Services 20220115 3094 GRIFFIN STRUCTURES, INC. 471,439 471,439 FY21-22 LADERA LINDA PROJ. & C Ongoing project. 333-400-8405-8001 333 Federal Grants-Arpa CIP Professional/Tech Services 20220185 616 COTTON, SHIRES AND ASSOCIATES, INC. 2,143 2,143 FY21-22 GEO- TECHNICAL SERVICES Ongoing project. 333-400-8405-8001 333 Federal Grants-Arpa CIP Professional/Tech Services 20220186 3033 INTERWEST CONSULTING GROUP, INC. 20,280 20,280 FY21-22 LADERA LINDA PLAN CHEC Ongoing project. 333-400-8405-8008 333 Federal Grants-Arpa CIP Material Testings 20220187 2340 H2 ENVIRONMENTAL CONSULTING SERVICES, INC 3,710 635 FY21-22 LADERALINDA MATERIALS Ongoing project. 333-400-8405-8008 333 Federal Grants-Arpa CIP Material Testings 20220218 2418 ASSOCIATED SOILS ENGINEERING, INC. 58,875 58,875 FY21-22 GEOTECH SRV- LADERA LI Ongoing project. 333-400-8405-8403 333 Federal Grants-Arpa CIP Parks Improvements 20220215 2416 AMG & ASSOCIATES, INC. 1,190,384 1,789,130 FY21-22 CONSTRUCT LADERA LINDA Ongoing project. 333-400-8508-8005 333 Federal Grants-Arpa CIP Engineering Design Services 20220157 2295 HOUSTON/TYNER, A PROFESSIONAL ARCHITECTURAL CORP 23,200 23,200 FY21-22 PSA FOR PVIC RESTROOM Ongoing project. 334-400-8405-8004 334 Quimby Park Development CIP Architecture Design Services 20190312 1377 JOHNSON FAVARO, LLP 357,942 357,942 FY18-19 LADERA LINDA ARCHITECT Ongoing project. 334-400-8405-8006 334 Quimby Park Development CIP Inspection Services 20220217 2419 SMITH-EMERY LABORATORIES, INC 245,891 245,891 FY21-22 INSPECTION & MATERIALS Ongoing project. A-4 City of Rancho Palos Verdes Purchase Order Carryover Schedule FY 2021-22 ACCOUNT NUMBER FUND CODE Fund Description Dept Description ACCT DESCRIPTION PO NUMBER VENDOR NUMBER VENDOR NAME PO OPEN AMOUNT BALANCE AMOUNT COMMENT/DESC JUSTIFICATION 334-400-8405-8008 334 Quimby Park Development CIP Material Testings 20220187 2340 H2 ENVIRONMENTAL CONSULTING SERVICES, INC 4,960 3,075 FY21-22 LADERALINDA MATERIALS Ongoing project. 334-400-8405-8099 334 Quimby Park Development CIP Misc./Other Expenses 20220210 160 MOBILE MINI, INC. 5,222 5,222 FY21-22 PARK/RANGERS STORAGE U Ongoing project. 343-400-3130-5101 343 Measure W CIP Professional/Tech Services 20220092 1230 GEOSYNTEC CONSULTANTS, INC. 58,030 31,337 FY21-22 CIMP IMPLEMENTATION Ongoing project. 681-400-0000-8101 681 Equipment Replacement Equipment Replacement Equipment & Furniture 20220263 2521 CANON SOLUTIONS AMERICA, INC. 2,300 2,300 FY21-22 CANON COPIERS LEASE AN Ongoing project. TOTAL 16,772,993 16,743,224 A-5 City of Rancho Palos Verdes Continuing Appropriation Schedule FY 2021-22 Account Fund Fund Name Dept Program Description Cont Appropriation Justification 101-400-2999-8803 101 General Fund 2999 Non-Department Capital - Land 985,000$ Final phase for the purchase of the Lower Filiorum and Plumtree properties 101-400-6120-5201 101 General Fund 6120 Public Safety Repair & Maintenance 50,000 Wireless upgrades for the ALPR system. 101-400-2999-4901 101 General Fund 3140 Non-Department Misc./Other Expenses 137,000 Emergency repairs for PVIC and Catalina Wing. 101-400-XXXX-5302 101 General Fund 3140 Public Works Utilities - Water 70,000 Based on new rates and actual consumption for water. 101-400-2999-4901 101 General Fund 2999 Non-Department Misc./Other Expenses 30,000 Merchant fees based on increased in credit card transactions from permits, recreation programs, and other online payments. 330-400-8304-8005 330 CIP 8304 Port. Bend Landslide Area Strategic Engineering Design Services 654,733 Included in the CIP Schedule FY 22-23. 330-400-8405-8101 330 CIP 8405 Ladera Linda Equipment & Furniture 273,168 Included in the CIP Schedule FY 22-23. 330-400-8845-8005 330 CIP 8845 Traffic Calming - PV Preserve Engineering Design Services 75,000 Included in the CIP Schedule FY 22-23. 330-400-8405-5105 330 CIP 8405 Ladera Linda Interest Expense 894,000 Included in the CIP Schedule FY 22-23. 333-400-8424-8802 333 Federal Grants - ARPA 8424 Park Monument Signs Other Improvements 380,160 Included in the CIP Schedule FY 22-23. 333-400-8006-8101 333 Federal Grants - ARPA 8006 IT - Hesse Park Technology Improvement Equipment & Furniture 264,000 Funded by ARPA - IT Hesse Park Upgrade. B-1 City of Rancho Palos Verdes Continuing Appropriation Schedule FY 2021-22 Account Fund Fund Name Dept Program Description Cont Appropriation Justification 333-400-8007-8101 333 Federal Grants - ARPA 8007 Emergency Preparedness Equipment & Furniture 225,000 Funded by ARPA - Emergency Preparedness. 333-400-8007-8001 333 Federal Grants - ARPA 8007 Emergency Preparedness Professional/Tech Services 100,000 Funded by ARPA - Emergency Preparedness. 333-400-8005-8101 333 Federal Grants - ARPA 8005 IT Citywide Technology Improv Equipment & Furniture 55,788 Funded by ARPA - IT Citywide Technology Upgrade 333-400-8005-8001 333 Federal Grants - ARPA 8005 IT- Citywide Technology Improv Professional/Tech Services 2,437 Funded by ARPA - IT Citywide Technology Upgrade. 202-400-8848-8805 202 Gas Tax 8848 Arterial @ Silver Spur South Residential St Improvements 315,000 Included in the CIP Schedule FY 22-23. 202-400-8004-8802 202 Gas Tax 8004 Public Signs Replacement Pro Other Improvements 155,000 Included in the CIP Schedule FY 22-23. 202-400-8004-8006 202 Gas Tax 8004 Public Signs Replacement Pro Inspection Services 25,000 Included in the CIP Schedule FY 22-23. 202-400-8004-8002 202 Gas Tax 8004 Public Signs Replacement Pro Construction Management 10,000 Included in the CIP Schedule FY 22-23. 221-400-8809-8003 221 Measure M 8809 Western Ave. Traffic Congest Environmental Review 200,000 Included in the CIP Schedule FY 22-23. 220-400-8848-8805 220 Measure R 8848 Arterial @ Silver Spur South Residential St Improvements 40,000 Included in the CIP Schedule FY 22-23. 220-400-8848-8006 220 Measure R 8848 Arterial @ Silver Spur South Inspection Services 35,000 Included in the CIP Schedule FY 22-23. 220-400-8848-8002 220 Measure R 8848 Arterial @ Silver Spur South Construction Management 20,000 Included in the CIP Schedule FY 22-23. 215-400-8837-8005 215 Proposition C 8837 Traffic Signal @ Pvds & Pvde Engineering Design Services 125,174 Included in the CIP Schedule FY 22-23. 334-400-8405-8004 334 Quimby Park Development 8405 Ladera Linda Architecture Design Services 129,403 Included in the CIP Schedule FY 22-23. B-2 City of Rancho Palos Verdes Continuing Appropriation Schedule FY 2021-22 Account Fund Fund Name Dept Program Description Cont Appropriation Justification 334-400-8405-8099 334 Quimby Park Development 8405 Ladera Linda Misc./Other Expenses 4,711 Included in the CIP Schedule FY 22-23. TOTAL 5,255,573$ B-3