HomeMy WebLinkAbout27 - 1999-2000 Budget Adoption0
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TO: MAYOR AND CITY COUNCILMEMBERS
FROM: Homer Bludau, City Manager
DATE: June 28, 1999
RE: 1999 -2000 BUDGET ADOPTION
DISCUSSION:
As provided in City Council Policy F -3 titled Budget Adoption and
Administration, the City Council reviews the new fiscal year's proposed City
Budget through study sessions and ... "All proposed Council changes in the City
Manager's proposed budget shall be added to a budget checklist. Subsequent to
Council review and prior to its final adoption, the City Manager shall provide each
Council Member with an itemized list of all proposed changes to permit a roll call
vote by the City Council on each item during the budget hearing at the regular
Council meeting." Please find attached a summary sheet of the proposed Budget
Checklist items (Attachment One). Also attached is a statement regarding the
potential impact of Budget Checklist items on Fund Balance, along with a brief
explanation of each of the listed items (Attachment Two).
Upon completion of the Budget Checklist review and roll call votes on each item,
a Resolution (Attachment Three) must be adopted by the City Council adopting
the 1999 -2000 Budget as amended through the Budget Checklist actions.
RECOMMENDATION:
It is recommended that the City Council straw vote the items included on the
Budget Checklist, determine by individual vote if the Checklist items should be
included in the 1999 -2000 Budget, and approve the Resolution adopting the City's
1999 -2000 Budget, with any recommended changes.
ATTACHMENT ONE
BUDGET CHECKLIST ITEMS FOR FY 1999 -2000
Include
Fund /Projects /Budgets In Budget
No.
General Fund
Amount
1
800 MHz Radio Upgrade - Fire and Marine Department
$
19,417
2
Emergency Electrical Supply - Fire and Marine Department
$
105,800
3
Land Use Contract Planner for El Toro Issues - Planning Department
$
90,000
4
General Plan Update Airport Area - Planning Department
$
100,000
5
Economic Development for Mariners' Mile - Planning Department
$
30,000
6
Junior Civil Engineer- Public Works Department
$
56,000
7
Advertising and Public Relations - Community Services Department
$
50,000
8
OASIS Parking Lot Lighting - Community Services Department
$
18,000
9
Tree Trimming - General Services
$
50,000
10
City Hall Electrical Upgrade - Public Works (Re- budget)
$
58,643
11
Storm Drain Improvements Program - Public Works (Re- budget)
$
90,000
12
Jamboree Road /Bayview Way Landscape - Public Works (Re- budget)
$
35,000
13
Higher Level of Maintenance for Community Centers
$
100,000
14
Replacement Chairs for Council Chambers and Conference Room
$
15,000
General Fund - Park In Lieu Fees
15 Grant Howald Athletic Field - Public Works (Re- budget) $ 130,000
Gas Tax Fund
16 32nd Street Reconstruction - Public Works (Re- budget) $ 350,000
Tidelands Fund
17 Bay Spot Dredging $ 150,000
Water Fund
18 Reclaimed Water Irrigation Program - Public Works (Re- budget) $ 298,093
ATTACHMENT TWO
BUDGET CHECKLIST ITEMS FOR FY 1999 -2000
IMPACT ON FUND BALANCE
The Preliminary Budget was developed over a period of months, using projections and
assumptions that were adjusted several times as better information became available. As
of the most recent projections, the budget contains $470,352 (General Fund) not yet
committed. Therefore at this time these funds are available for checklist items, and/or to
partially offset budget amendments that come up during the year.
The total cost of items now on the checklist adds up to substantially more than that
amount ($1,745,953, to be exact). However, some of those checklist items are being re-
budgeted from the prior year, and some are already included in the budget total. Because
of that, the total "new money" needed for all items on the list amounts to $776,317, all of
which must ultimately come from the General Fund. That still exceeds the amount
available by $305,965.
In relation to a total budget of $112 million, $306 thousand is not a large amount. This is
especially true early in the year, when routine volatility and other normal variations can
be anticipated. Fiscally speaking, however, it would be still be preferable if at least $306
thousand of the checklist items were not appropriated at this point by the City Council.
On the other hand, even if every item on the list is approved, staff (if directed to do so)
should be able to make compensating administrative reductions now to bring the budget
back into balance. Actual adjustments in other accounts could then be identified as part
of the normal budget execution process over the next several months. However, if
changes go beyond the level of the current checklist, additional guidance from the City
Council will be necessary regarding compensating reductions elsewhere. It will also be
more challenging to deal with routine budget amendments that invariably come up during
the course of the year.
GENERALFUND
1. 800 MHz Radio Upgrade - Fire and Marine Department
The City's Public Safety and Public Works departments are converting to 800 MHz radio
network as part of the new 800 MHz Countywide Coordinated Communications System.
The Fire and Lifeguard portions of the system were funded in the 1998 -1999 budget. Just
recently Motorola discovered that certain existing mobile radios were not compatible
with the new system. The Fire and Marine Department had expected to have these
mobile apparatus radios reprogrammed and used in the new 800 MHz system. Because
of the incompatibility, 23 additional radios need to be replaced. Motorola has negotiated
Budget Checklist Report
Page 2
with the 800 MHz Governance Committee to replace the radios at a significantly
discounted cost. This budget item requests $19,412 to fund this unexpected requirement.
2. Emergency Electrical Supply for City Hall - Fire and Marine Department
The City's Emergency Preparedness Committee has recommended the installation of two
emergency generators for City Hall. The project has been broken into two `Zones" to be
funded over a two year period. The most critical of the Zones supports GIS, MIS,
telecommunications, and some EV charging stations. This checklist item would provide
funding to handle this first Zone by purchase and installation of a 175 kW Diesel 600
Amp generator, automatic transfer switch, and all necessary peripherals. The second
emergency power Zone is scheduled to be addressed in fiscal year 2000 -2001.
3. Land Use Contract Planner for El Toro Issues — Planning Department
This position would be a temporary, full time position (contract) in the Planning
Department. The duration of the contract is estimated to be three years. The position
would monitor and review land use planning activities in the area surrounding El Toro
Airport, monitor regional plans related to air and surface transportation, and monitor the
planning activities of the County of Orange related to El Toro and John Wayne Airports.
4. General Plan Update for the Airport Area - Planning Department
The goal of this effort is the preparation and adoption of land use regulations specifically
designed for the Campus Drive strip and the MacArthur/Bristol triangle. Issues to be
resolved through the specific plan process include floor area ratio incentives tied to lot
consolidation, mitigation of traffic impacts, and review of Special Land Use Restrictions
(SLURS) established by the Irvine Company.
The City has been working with property owners in the Airport Area for three years, and
has had a market/economic feasibility study prepared by a consultant. The EDC Airport
Area Sub Committee has recently discussed a fund raising/outreach effort as a way for
property owners to contribute to the costs of the specific plan.
5. Economic Development for Mariners' Mile - Planning Department
This provides funds for continued refinement of the Mariners' Mile Design Framework,
as well as funds for design assistance for new projects in the Mariners' Mile area.
6. Junior Civil Engineer for Assessment Districts - Public Works Department
This position will be added to the Transportation and Development Division and will be
responsible for coordinating the activities of the Citywide Assessment District Program.
Funding of this position will be split between the General Fund and fees collected from
Budget Checklist Report
Page 3
the assessment districts. This position will also perform General Plan transportation issue
review and updates.
7. Advertising and Public Relations for the Library - Community Services Dept.
The Board of Library Trustees firmly believes that keeping the community aware of the
library is critical to its ongoing success as a thriving Newport Beach institution. This
belief has been reinforced through the results of the ongoing trustee telephone survey.
The library budget for FY 1999/00, as submitted, is 4% below the total budget for FY
1998/99, even with the line item of $50,000 in account 4010 -8010 (Advertising/Public
Relations).
Recently, the library has provided tremendous assets for the community. With Building
Excise Tax funds, it acquired a new American History collection and an outstanding Arts
Collection. A redesigned Young Adult area at the Central Library will be complete in
September, offering new resources and study spaces for teens. It is critical to make the
Newport Beach community aware of these new resources and services.
As a result the trustees requested $50,000 in account 4010 -8010 (Advertising /Public
Relations) for the FY 1999/00 budget. These funds will enable the library to direct mail
Newport Beach residents a clear and significant message: the Library is here for you and
has much to offer. Research shows direct mail to be a powerful and cost effective means
for reaching target customers.
8. OASIS Parking Lot Lighting - Community Services Dept.
The Oasis Senior Center has requested that lighting be installed at their off -site parking
lot at the northerly corner of Fifth Avenue and Marguerite Avenue. The lot has no
lighting except for spill over from the two streetlights on Marguerite Avenue. $18,000
would provide minimal lighting for a portion of the lot for the few times during the
month that the lot is used at night. The Oasis proposal is to contribute $ 5,000 for the
installation and install a switch that could be activated when the lot needed to be used and
turned off when not needed. The lot is between two residential areas that may be
impacted by full parking lot lighting, which would cost close to $50,000.
9. City Wide Tree Trimming - General Services Department
During the past fiscal year, it has become apparent that an increase in funding for tree
trimming to return to previous trimming levels would result in reduced complaints by
residents and business owners. By granting $50,000 in additional expenditures, 1,282
more trees could be trimmed on an annual basis ($39 per tree). Not only would the
service level increase closer to the level achieved prior to budget reductions in 1994, but
Budget Checklist Report
Page 4
tree root damage to hardscape could be reduced by containing the growth rate of the tree •
crowns of troublesome species such as ficus trees.
10. City Hall Electrical Upgrade - Public Works (Re- budget)
The upgrade of the electrical system at City Hall was budgeted for Fiscal Year 1998 -1999
in the amount of $70,000. Due to engineering delays and extensive coordination with
Southern California Edison, the project will not be ready for bid until July 1999. Staff is
requesting the remaining funding be re- budgeted for Fiscal Year 1999 -2000.
11. Storm Drain Improvements Program - Public Works (Re- budget)
The total re- budget for storm drains will be $300,000. Projects are under design and will
require Coastal permits but should be under construction in the Fall of 1999. The Master
Plan of Storm Drains is in the priority development stage and will be agendized for City
Council approval in August or September 1999.
12. Jamboree RoadBayview Way Landscape - Public Works (Re- budget)
The plans for the landscaping of the parkway along Jamboree Road and Bayview Way
have been completed and are awaiting the approval of the Resource Agencies and the
Coastal Commission. The landscaping is being placed to reduce the glare from lights.
Fletcher Jones has agreed to match these funds up to a maximum of $30,000.
13. Higher Level of Maintenance for Community Centers
The City has eleven buildings, plus the Council Chambers, available for use by
individuals and organizations, when they are not being used for City programming.
There is heavy demand. They include Balboa, Bonita Creek, and Carroll Beek
Community Centers; Central Library Friends Meeting Room; Cliff Drive Park;
Community Youth Center (CYC); Eastbluff Boys & Girls Club; Lincoln Gymnasium;
OASIS Senior Center; Vince Jorgensen Room; and West Newport Community Center.
In Fiscal Year 1998/99 the capital improvement budget included $50,000 for minor
repairs and ongoing maintenance only of these buildings (exclusive of the Central Library
and the Council Chambers). No major improvements or upgrading were undertaken.
The same amount was expended in Fiscal 1997/98, also only for ongoing repairs. All the
facilities are in need of improvements, including air conditioning, remodeling of kitchen
facilities, interior improvements, carpeting, and furnishings (tables and chairs).
14. Replacement Chairs for City Council Chambers and Conference Room
The mechanical support structure and the fabric covers of the chairs are in a deteriorated
state. The chairs are only marginally serviceable at this point, and they are at or near the
Budget Checklist Report
Page 5
end of their useful lives. This proposal would provide a total of 25 replacement chairs for
the three areas, not necessarily all of the same design. (The chairs at the Conference
Table in front of Council Chambers are still serviceable and not included.)
GENERAL FUND (Park In Lieu Fees)
15. Grant Howald Athletic Field - Public Works (Re- budget)
The electrical and lighting portion of the work was awarded in Fiscal Year 1998 -99. The
remaining work, scheduled for FY 99 -00, consists of new turf; landscaping; chain -link
fences, gates, and dugouts; irrigation system; drainage system; grading; and retaining
walls. In order to provide the new ballfield turf and landscaping with the most favorable
and longest growth and establishment period during the year and have the ballfield ready
for the summer, it is best to have these improvements constructed during the Spring.
GAS TAX FUND
16. 32nd Street Reconstruction - Public Works (Re- budget)
The project consists of rehabilitation of the streets on 32 "d Street from Newport Boulevard
to Balboa and Newport Boulevard from 32 "d Street to 30th Street. Also the storm drain
alignment has been redesigned to enhance drainage in this area. A new outlet to the
Rhine Cannel at 30' Street will be installed. The outlet will require approval from the
California Coastal Commission. The application process is underway and is expected to
be completed by September. The project will be constructed during the fall to reduce the
impact to motorists on Newport Boulevard.
TIDELANDS FUND
17. Bay "Spot' Dredging
Specific dredging responsibilities in lower Newport Harbor are the subject of an exhibit
originally prepared for the City Council in March. That exhibit indicates that the
majority of main navigational channels are the responsibility of the Army Corps of
Engineers. The Corps surveys their areas of responsibility once a year. The most recent
survey was done in December of 1998. They are currently resurveying the harbor after
dredging was done adjacent to Linda Island and Harbor Island.
The balance of the area of responsibility lies with the adjacent harbor permittees. Their
responsibility is from the bulkhead to pierhead line as prescribed by Council Policy.
It is important to note that once an area is identified as needing dredging it sometimes
takes up to two years to process the necessary permits through the Army Corps of
Engineers, and for the Corps to obtain funding. This checklist item would appropriate
Budget Checklist Report
Page 6
funds in advance allow the City to do any emergency dredging, if necessary, while
working with the Corps to process a permit.
PAVIN16I1 M1
18. Reclaimed Water Irrigation Program - Public Works (Re- budget)
The plans for retrofitting Eastbluff Park and Bonita Creek Park have been completed and
the Bluffs Association is requesting a loan to complete their facilities. The continuation
of the reclaimed water program will allow full utilization of the Green Acres water that
the Orange County Water District is furnishing to the City through the transmission main
completed last year.
0623/99 10:17 AM CHKLIST.DOC
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RESOLUTION NO. 99 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH ADOPTING THE BUDGET FOR THE 1999-
2000 FISCAL YEAR.
WHEREAS, the City Manager of the City of Newport Beach has prepared and
submitted to the City Council a preliminary annual budget for the 1999 -2000 fiscal Year;
WHEREAS, the City Council has reviewed said preliminary budget, determined the
time for the holding of a public hearing thereon, and caused a notice of said hearing to be published not
less than ten (10) days prior hereto in the official newspaper of the City, and copies of the proposed
budget were made available for inspection by the public in the Office of the City Clerk and the
Administrative Services Department at least ten (10) days prior to said hearing; and
WHEREAS, the City Council has held a public hearing on said preliminary budget on
June 14, 1999, and has made such revisions in the preliminary budget as it deemed advisable; and
WHEREAS, all requirements of the City Charter relating to the preparation and
. consideration of the annual budget have been complied with.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
Newport Beach that the budget of the City of Newport Beach for the 1999 -2000 Fiscal Year as revised
by the City Council is hereby adopted. The total approved appropriation of $120,244,804.00 has been
allocated to the following funds in the amounts hereinafter shown:
Fund
Operating
Capital
Net
Total
Budget
Budget
Transfers
Budget
General Fund
$74,223,136
$6,452,000
$4,108,049
$76,567,087
Ackerman Fund
185,000
0
0
185,000
CDBG Fund
0
505,000
(99,000)
604,000
AQMD Fund
29,000
0
(15,000)
44,000
NAF Fund
201,619
0
0
201,619
SLESF - Cops Fund
10,279
0
0
10,279
Misc. Grants Fund
61,102
0
0
61,102
State Gas Tax Fund
0
2,105,000
(100,000)
2,205,000
OC Comb. Trans. Fd.
0
954,960
(64,000)
1,018,960
Tidelands Fund
1,408,424
927,000
(3,580,049)
5,915,470
Contribution Fund
0
60,000
0
60,000
Circulation Fund
0
431,040
0
431,040
Building Excise Tax Fd.
0
490,000
0
490,000
Environmental Liab. Fd.
0
0
0
0
CIOSA Fund
0
260,000
0
260,000
Bonita Canyon Dev. Fd.
0
5,912,000
0
5,912,000
Insurance Reserve Fund
5,012,615
0
0
5,012,615
Equipment Fund
3,451,432
0
(250,000)
3,701,432
Water Fund
12,573,905
2,305,000
0
14,878,905
Wastewater Fund
1,552,492
1,133,800
0
2,686,292
Cannery Village Fund
0
0
0
0
Total Appropriations
$98,709,004
$21.535,800
$
$120,244.804
BE IT FURTHER RESOLVED that a copy of said approved budget, certified by the
City Clerk shall be filed with the persons retained by the City Council to perform auditing functions for
the Council, and a further copy shall be placed, and shall remain on file, in the Office of the City Clerk
where it shall be available for public inspection.
BE IT FURTHER RESOLVED that the budget so certified shall be reproduced and
copies made available for the use of the public and of departments, offices and agencies of the City.
ADOPTED the 28'h day of June, 1999.
MAYOR
ATTEST:
CITY CLERK
0623/99 10: IS AM BUDRESOMOC
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