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Home My WebLink About15 - Surfing-Sailing-Tennis Budget AmendmentCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 15 March 23, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Recreation & Senior Services Department Laura Detweiler, Director 644 -3157, Idetweiler()newportbeachca.gov Matt Lohr, Recreation Manager 644 -3164, mlohr(a)newportbeachca.gov SUBJECT: Budget Amendment — Surfing I Sailing I Tennis Reserve Accounts ISSUE: Should the City Council approve a Budget Amendment in the amount of $42,225 to transfer funds from the surfing, sailing, and tennis reserve accounts into the General Fund per City Council Policy B -2 — Recreational Instructional Activities? RECOMMENDATION: Approve a budget amendment in the amount of $42,225 and transfer funds from the surfing, sailing and tennis reserve accounts into the General Fund. DISCUSSION: Each Fiscal Year, the Recreation & Senior Services Department prepares a City Council Report for the transfer of funds from Reserve Accounts into the General Fund per City Council Policy B -2 (Attachment A). City Council Policy B -2 states that a percentage of gross revenue derived from surfing, sailing and tennis classes be set aside annually for the purpose of purchasing or replacing equipment, refurbishing courts or developing new recreational programs or facilities. This year, staff is requesting funds for the projects as listed below, (Attachment B provides a detailed breakdown): • Funds from the surfing reserve account in the amount of $14,000. Funds will be used to purchase surfing and aquatic equipment for summer programs. The current balance in this reserve account is $232,006. • Funds from the tennis reserve account in the amount of $8,725 will be used for tennis and basketball court resurfacing. The current balance in this reserve account is $28,017. Budget Amendment — Surfing / Sailing / Tennis Reserve Accounts March 23, 2010 Page 2 • Funds from the sailing reserve account in the amount of $19,500 will be used to repair 12 Sabots and 4 Lidos for the City sailing program, repair the sailboat storage rack at 18th and Bay Street, and purchase supplies to include lifejackets, a new dinghy with motor, sails and emergency radios. The current balance in this reserve account is $80,958. ENVIRONMENTAL REVIEW: The City Council's approval of this agenda item does not require environmental review. PUBLIC NOTICE: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). FUNDING AVAILABILITY: There are sufficient funds available in the following accounts to transfer funds: Amount From $14,000 010 -3740 - Surfing Reserve Acct $8,725 010 -3742 - Tennis Reserve Acct $19,500 010 -3741- Sailing Reserve Acct 42225 TOTAL Prepared by: Submitted by: To 4330 -8371 4330 -8372 4330 -8373 Matthew Lohr Laur a eiler, Director Recreation Manager Recreation & Senior Services Department Attachments: A: City Council Policy B -2 B. Breakdown of Funds C. Budget Amendment Attachment A Budget Amendment — Surfing / Sailing / Tennis Reserve Accounts LNSTRLCTIONAL RECREATION ACTIVITIES March 23, 2010 Page 3 E -2 The instructional recreational programs for cluldren and adults provided by the Recreation and Senior Services Department will be conducted on the basis of being at least self - supporting. Registration fees will be based on an amount sufficient to acquire independent contractors, class materials and the administrative overhead and a facility use fee. Occasionally, it may be necessary to conduct a specific class in nnlsich revenues are not sufficient to be self- supporting. However, each total recreation programs, such as tennis, sailing, surfing, etc., will be at least self - supporting. The Recreation and Senior Services Director or designee is authorized to enter into agreements for securing independent contractors for approved instructional recreation activities. A sum of money equivalent to 10% of the gross annual revenues derived from the instructional classes in surfing shall be set aside and used for the purpose of purchasing new or replacement surfboards or development of aquatic and surf related activities. A total of 20% of the registration fees from tennis instructional classes shall be set aside annually for refurbishment or development of courts or development of new recreational programs or facilities. A total of 20% of the registration fees from the sailing instructional classes and 100% of the proceeds from the agreement for the use of the 29th Street public dock shall be set aside annually for refurbislunent and replacement of the recreation sail boat fleet and development of waterfront activities program. Adopted - October 1963 Amended - August 30, 1966 Amended - November 25,1968 Amended - March 1970 Amended - April 12,1971 Amended - August 9, 1971 Amended - February 14, 1972 Amended - March 13, 1972 Amended November 11, 1974 Amended - March 24,1975 Amended - December 8,1975 Ascended - November 27,1978 Amended - November 28,1988 Reassigned - January 24,1994 Amended - February 27, 1995 Amended - December 14,1998 Amended - May 8, 2001 Amended - April 8, 2003 Amended - April 13, 2004 Amended - September 13, 2005 Amended - October 10, 2006 Amended - August 11, 2009 Formerly I-6 Formerly I -2 Budget Amendment — Surfing / Sailing / Tennis Reserve Accounts M h 23 2010 Attachment B Surfina Reserves Account 010 -3740 Misc. Equip. & Supplies (Summer Camp & Aquatic Programs) Portable Shade Structures for Aquatic Camps & Classes Taxes & Shipping 2.000 $14,000 • UM 3,000 Sailina Reserves Account 010 -3741 Repairs for boats & storage 10,000 Supplies (sails, radios, etc) 3,500 New dingy & motor 3,500 Tax & Shipping 2,500 $19,500 Tennis Reserves Account 010 -3742 Park/Type of Court Resurfacing Grant Howald - Tennis 1,350 Grant Howald - Basketball 2,550 38th Street — Basketball 3,825 Contingency 11000 $8,725 Total Budget Amendment Requested arc Page 4 14 000 19 500 8 725 $42,225 City of Newport Beach BUDGET AMENDMENT 2009 -10 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase Expenditure Appropriations AND PX Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues from unappropriated fund balance EXPLANATION: NO. BA- 10BA -034 AMOUNT: $a2,zz5.00 Increase in Budgetary Fund Balance Decrease in Budgetary Fund Balance PX No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To increase expenditure appropriations from the Surfing, Tennnis, and Sailing Reserves to the Recreation -Fee Based Classes operating budget. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account Description 010 3740 General Fund - Surfing Reserve 010 3742 General Fund - Tennis Reserve 010 3741 General Fund - Sailing Reserve REVENUE ESTIMATES (3601) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Description Division Number 4330 Recreation - Fee Based Classes Account Number 8371 Surfing Reserve Division Number 4330 Recreation - Fee Based Classes Account Number 8372 Tennis Reserve Division Number 4330 Recreation - Fee Based Classes Account Number 8373 Sailing Reserve Division Number Account Number Signed: % � �/� Fin ial Appr val: dministrative Services Director Signed: Approval: City Amount Debit Credit $14,000.00 ' $8,725.00 - $19,500.00 $14,000.00 $8,725.00 $19,500.00 2. �, 1 Date 311 D o Date Signed: City Council Approval: City Clerk Date