TITLE
Recommendation to approve the Fiscal Year 2016 third departmental and fund budget appropriation adjustments in accordance with existing City Council policy. (Citywide)
DISCUSSION
On September 15, 2015, the City Council adopted the Appropriations Ordinance governing the City’s Adopted Budget for Fiscal Year 2016 (FY 16). Periodically, changes in revenue or operating conditions require appropriation adjustments. For example, in certain cases, these adjustments enable departments to expend recently awarded grant revenue for which there is no existing appropriation. In addition, changes for multi-year grants/projects are necessary to bring appropriations in line with final grant/project award amounts. By the City’s practice, these adjustments are presented to the City Council periodically throughout the year for consideration. Please see Attachment A for a Summary of Proposed Adjustments of impacted City funds and Attachment B for a recapitulation of FY 16 General Fund Expenditure Budget Adjustments.
This matter was reviewed by Deputy City Attorney Amy R. Webber on August 26, 2016.
TIMING CONSIDERATIONS
The following requests for adjustments to FY 16 departmental and fund appropriations are necessary to reflect changes in operating conditions. City Council action is requested on September 13, 2016, to enable the timely processing of payments.
FISCAL IMPACT
Airport
Increase appropriations in the Airport Fund (EF 320) in the Airport Department (AP) by $331,650, for law enforcement services, partially offset by reimbursement from the Transportation Security Authority.
On January 5, 2016, City Council authorized the City to enter into a cooperative agreement with the Transportation Security Authority (TSA) to receive partial reimbursement for deploying law enforcement officers at passenger-screening checkpoints at the Long Beach Airport. TSA awarded the City an amount of $331,650 for the period of April 1, 2016 through December 31, 2018. This funding helps offset the cost of Special Services Officers under the Airport Safety and Security Division.
Increase appropriations in the Airport Fund (EF 320) in the Airport Department (AP) by $150,000, for the first installment payment for the American Association of Airport Executives Conference, offset by fund balance.
The Long Beach Airport, in collaboration with the Long Beach Convention and Visitors Bureau, will be hosting the 89th American Association of Airport Executives (AAAE) Conference and Exposition scheduled for May 7th through May 10th, 2017 at the Long Beach Convention Center. Authorization was received from City Council on May 20, 2014, and the agreement was executed on May 23, 2016. Under the agreement, payment will be made by the Airport to AAAE in three equal installments beginning in 2016. The subsequent installment payments will be included as part of the annual budget process in FY 17 and FY 18.
Development Services
Increase appropriations in the Development Services Fund (EF 337) in the Development Services Department (DV) by $67,760, for technology upgrades and maintenance for the Oil Well Inspection Program, offset by fund balance.
The Development Services Department currently oversees an Oil Well Inspection Program, which provides annual inspections of approximately 2,400 active oil wells. The initial billing for the program occurs in the Hansen system; however, the system is not currently capable of processing automated annual renewals. These funds will provide an upgrade to the Hansen system to accommodate automated annual billing that interfaces with the City’s financial and billing systems. The cost for this upgrade will be offset by technology surcharge revenue in funds available, which funds the cost of upgrades, improvement and maintenance of technology for development projects and services.
Increase appropriations in the General Grants Fund (SR 120) in the Development Services Department (DV) by $25,858, for the Cool California Challenge, offset by award revenue.
In FY 16, the City participated in the Cool California Challenge (Challenge) for the second year. The Challenge is a partnership between Energy Upgrade California, the California Air Resources Board, and the Cool Climate Network at University of California, Berkeley to encourage and reward sustainability efforts in local cities. The City’s Office of Sustainability encouraged Long Beach residents to participate in the program by tracking household energy and motor vehicle emissions. This participation led to the City receiving a $25,858 Challenge disbursement from the Center for Sustainable Energy. Of this amount, $6,000 has been disbursed to three Long Beach-based non-profit organizations and schools, who formed teams that provided the greatest contribution to the City’s second place finish. The remainder will be used for future sustainability efforts.
Disaster Preparedness and Emergency Communications
Increase appropriations in the General Grants Fund (SR 120) in the Disaster Preparedness and Emergency Communications Department (DC) by $33,991, for the purchase of Uninterruptible Power Supply batteries for the City’s Emergency Operating Center, offset by additional Homeland Security grant funds.
Increase appropriations in the General Grants Fund (SR 120) in the Fire Department (FD) by $203, to implement training and conferences, offset by additional Homeland Security grant funds.
Increase appropriations in the General Grants Fund (SR 120) in the Police Department (PD) by $61,447, to implement training and conferences, offset by additional Homeland Security grant funds.
Decrease appropriations in the General Grants Fund (SR 120) in the Health and Human Services Department (HE) by $489 to reallocate the grant funds and partially offset other Departments’ grant expenditures.
In March 2015, the City Council approved the City’s Federal 2014 Urban Area Security Initiative (UASI 2014) grant award for $5,489,507. Recently, the City Council appropriated a total of $404,020 of additional funding approved by the granting agency. Subsequently, additional funds in the amount of $95,127 have been made available to Long Beach from the region for Grant-eligible programs and equipment, for a total award of $5,988,654. These additional funds authorize the City to fund Uninterruptible Power Supply batteries for the City’s Emergency Operations Center and various training and conferences for the Police and Fire Departments. Therefore, appropriation adjustments are requested for the Disaster Preparedness and Emergency Communications, Fire, Police and Health and Human Services Departments to offset grant eligible expenditures within the grant performance period. As part of the UASI 2014 grant funds, $25 will be reduced from the Harbor Department to partially offset other Departments’ expenditures. No appropriation decrease is necessary for Harbor Department’s portion of the UASI grant change.
Economic and Property Development
Increase appropriations in the Parking and Business Area Improvement Fund (SR 132) in the Economic and Property Development Department (EP) by $568,645, for payments to the City’s Business Improvement Districts (BIDs), offset by assessment revenue received by the City.
The City of Long Beach collects assessment revenue on behalf of each BID. The annual budget for this activity is based on prior year assessments and is developed in advance of the annual reports for each BID. Due to higher than anticipated revenues, pass-through payments are expected to exceed FY 16 appropriation. The appropriation increase of $568,645 will be fully offset by additional assessment revenues.
Increase appropriations in the General Fund (GF) in the Economic and Property Development Department (EP) by $5,642, for the business interruption payment to the Asian American Drug Abuse Program, offset by the release of funds set aside from sale proceeds of Successor Agency properties.
On July 6, 2015, the Oversight Board of the Successor Agency approved the sale of the Successor Agency property located at 1900 Atlantic Avenue. As a result of the sale, the Department was required to make a payment to the Asian American Drug Abuse Program, which leased the second floor of the building located on the property. The payment was made to compensate the tenant for the interruption of business during the sale of the property. The staff has identified this payment as an appropriate use of the former Central Redevelopment Project Area’s 75 percent share of the proceeds from the sale of former Redevelopment properties.
Financial Management
Increase appropriations in the Transportation Fund (SR 182) in the Financial Management Department (FM) by $285,936, to cover the incremental cost of alternative fuel vehicles, offset by fund balance.
The AB 2766 Subvention Program receives funds from a motor vehicle registration fee surcharge and distributes them to the South Coast Air Quality Management District (SCAQMD) for disbursement. The City receives an annual allocation to cover projects that reduce pollution from motor vehicles, mandated by the requirements of Federal and State Clean Air Acts and the Air Quality Management Plan (AQMP). In its efforts to reduce greenhouse gas emissions and lower gasoline and diesel fuel consumption, the City is replacing older equipment with Compressed Natural Gas (CNG), hybrid, and plug-in hybrid-powered models, which have a higher replacement cost than their gasoline-powered equivalents. This increase in appropriation will cover the incremental cost of replacement, which reduces the cost burden to user departments.
Health and Human Services
Increase appropriations in the General Fund (GF) in the Health and Human Services Department (HE) by $3,250, to extend the Winter Shelter Program, offset by a rental payment by the Long Beach Rescue Mission.
On October 20, 2015, the City Council approved a lease agreement between Eddie N. John #1, a limited liability company, and the City, and a Sublease between the City and the Long Beach Rescue Mission to operate a temporary winter shelter from November 2, 2015 through March 15, 2016 at 6845 Atlantic Avenue. The Long Beach Rescue Mission, as the winter shelter provider, paid a monthly base rent of $6,500 to the City. Services included nightly shelter for individuals, vouchers for families with children, two daily meals, security, intake and case management services that link participants to additional programs aimed at establishing improved health and economic efficiency. In March 2016, the Los Angeles County Board of Supervisors approved an extension for the Winter Shelter Program from March 15, 2016 to March 31, 2016. The Long Beach Rescue Mission paid the rent in the amount of $3,250. An appropriation increase of the same amount is needed to pay rent to Eddie N. John #1 for the two-week extension of the Winter Shelter Program.
Parks, Recreation and Marine
Increase appropriations in the General Fund (GF) in the Parks, Recreation and Marine Department (PR) by $7,700, for improvements to the Long Beach Animal Shelter, offset by revenues from the Shelter Building Trust.
The Shelter Building Trust provides resources for improvements to the Long Beach Animal Shelter. Americans with Disabilities Act compliance upgrades were required, and Shelter Building Trust resources are requested to complete the required upgrades to the cat shelter building in the amount of $7,700.
Increase appropriations in the General Fund (GF) in the Parks, Recreation and Marine Department (PR) by $15,000, to purchase medical supplies and veterinary care, offset by revenues from the Medication/Veterinary Care Trust.
The Parks, Recreation and Marine Department (PR) maintains the Medication/Veterinary Care Trust, which was established specifically for the purchase of medical supplies and veterinary care for animals. In provision with the trust requirements, Animal Care Services (ACS) purchased medical equipment for the new surgery facility in the amount of $15,000.
Increase appropriations in the General Fund (GF) in the Parks, Recreation and Marine Department (PR) by $35,000, for the spay/neuter voucher program, offset by revenues from the Dr. Eslinger Memorial Trust.
ACS issues vouchers to the public to reduce the cost of a spay/neuter procedure at participating veterinary clinics. An appropriation increase of $35,000 is requested for the ACS spay/neuter voucher program, offset by revenues from the Dr. Eslinger Memorial Trust.
Increase appropriations in the General Fund (GF) in the Parks, Recreation and Marine Department (PR) by $25,000, for a summer swim program at Cabrillo High School, offset by revenue received from the Long Beach Unified School District (LBUSD).
On July 7, 2015, the City Council approved an agreement with LBUSD to conduct a summer swim program at Cabrillo High School. Program expenses are offset by revenue received from LBUSD.
Increase appropriations in the General Fund (GF) in the Parks, Recreation and Marine Department (PR) by $12,180, to fund the building lease at Miracle Park, offset by revenue from the Cingular Trust.
On February 14, 2006, the City Council approved the Cingular Trust, which requires all funds to be used within the greater Alamitos Beach Neighborhood area, where Miracle Park is located. An appropriation increase is requested in the amount of $12,180 to fund the building lease at Miracle Park, offset by revenues collected from the Cingular Trust. The building is leased from the Openden Family for providing indoor space for recreational programming. This request covers the rental payment period of October 2015 through September 2016.
Increase appropriations in the General Fund (GF) in the Parks, Recreation and Marine Department (PR) by $24,750, for Movies in the Park, offset by sponsorship from Signal Hill Petroleum.
Signal Hill Petroleum has sponsored Movies in the Park since 2005, and is providing Partner of Parks with $27,500 for movies shown at various park sites in the City. Partners of Parks retains 10 percent of the sponsorship as an operational fee. The remaining amount of $24,750 has been deposited in the General Fund in support of program staffing.
Police
Increase appropriations in the General Fund (GF) in the Police Department (PD) by $370,886, for the purchase of technology and facility needs, offset by Asset Forfeiture funds.
The Chief of Police is authorizing the use of $370,886 in State and Federal Asset Forfeiture funds for the purchase of unbudgeted software and technology to use for training and investigations, replacement of Crime Lab equipment, investigative training, and miscellaneous equipment and miscellaneous facility repair.
Increase appropriations in the General Fund (GF) in the Police Department (PD) by $25,000, for various at-risk youth programs and overtime for a Youth Explorer Advisor, offset by Asset Forfeiture funds.
The Chief of Police is authorizing the use of $25,000 in State Asset Forfeiture funds for Youth Intervention/Prevention programs for at-risk youth, which include National Association for the Advancement of Colored People (NAACP)’s Afro-Academic, Cultural, Technological and Scientific Olympics (ACTSO), Long Beach Bar Foundation’s Short Stop Program, and the Operation Jump Start Program. Additional appropriation will fund overtime for a Youth Explorer Advisor who coordinates the Youth Explorer Program for youth interested in a law enforcement career.
Increase appropriations in the General Grants Fund (SR 120) in the Police Department (PD) by $559,667, for front-line law enforcement efforts, offset by State COPS grant revenue.
On February 16, 2016, the City Council approved the State of California Citizens Option for Public Safety Program funding from the County of Los Angeles Supplemental Law Enforcement Services Fund (State COPS), in the amount of $39,521 for the grant year 2016. The Police Department received an additional $559,667 for the grant year 2016 from State COPS funds, bringing the total to $599,188. These State COPS funds will be used for training, supplies and equipment related to front-line law enforcement efforts.
Public Works
Increase appropriations in the Capital Projects Fund (CP) in the Public Works Department (PW) by $79,000, for the FY 16 Beach Streets Event, offset by revenue.
The Beach Streets event was held on March 19, 2016. This one-day event closed streets to automotive traffic and opened them for residents to walk and bike. The total cost of the event is estimated at $281,000. Of the total cost, the City received a contribution in the amount of $78,000 from the Office of Los Angeles County Supervisor Don Knabe. In addition to the contribution, the Public Works Department will fund $1,000 for the event from current General Fund resources. This request will appropriate the contribution and the operating transfer to the Capital Projects Fund. Additional funding sources to support the event include $100,000 in AB 2766 Traffic Mitigation Funds, $2,000 from City Council District 3 discretionary funds and $50,000 from City Council District 2 discretionary funds. Lastly, the City is anticipating $50,000 in grant funds from the Clean Transportation Mobile Source Air Pollution Reduction Review Committee. A request to appropriate grant funding is pending finalization of the grant agreement.
Increase appropriations in the Capital Projects Fund (CP) in the Public Works Department (PW) by $10,000, for plan check and compliance monitoring of the Oregon Park Development Agreement, offset by developer contributions.
On November 10, 2015, the City Council approved an application for a Development Agreement with The Long Beach Project Owner, LLC, and DEM Investment Company, LLC (the Developer). The Development Agreement includes the development of Oregon Park. The Developer provided a $10,000 contribution to the Public Works Department for the facilitation and coordination of the plan check and project entitlements for Oregon Park, as well as for staff time to monitor the compliance with the Development Agreement.
Increase appropriations in the Capital Projects Fund (CP) in the Public Works Department (PW) by $75,000, for the design of the Stearns Park Community Center Roof Repair Project, offset by revenue from the General Fund.
The Stearns Park Community Center roof is in need of repair due to significant deterioration from weathering. Also, the repairs will address the potential fire and safety issues resulting from roof leaks. An appropriation increase of $75,000 is needed to initiate design, project support and plan check. The expense from the General Fund will be absorbed within current Public Works General Fund appropriations. The total project cost is unknown at this time and will depend on the outcome of the design phase. Upon completion of the design phase, the Department will return to the City Council to appropriate additional resources for subsequent project phases.
Increase appropriations in the General Fund (GF) in the Public Works Department (PW) by $11,000, for sign replacement at Long Beach Poly High School, offset by the release of funds set aside from sale proceeds of former Redevelopment properties.
The Long Beach Poly High School entrance sign at the southeast corner of Atlantic Avenue and Pacific Coast Highway was in need of replacement due to a traffic collision that severely damaged the sign. The cost of replacement is $11,000. Staff has identified this cost as an appropriate use of the former Central Redevelopment Project Area’s 75 percent share of the proceeds from the sale of former Redevelopment properties.
Citywide Activities
Increase appropriations in the General Fund (GF) in the Citywide Activities Department (XC) by $2,651,115, available for debt service payments on the Open Space Bonds, offset by State-approved loan repayments.
In 2006, the City sold bonds secured by the General Fund for the development of open space in the City’s underserved areas. Alternative, short-term funding sources were identified to pay the debt for the first ten years of the Open Space Bond debt service. Originally, in the 11th year following the expiration of the Downtown Redevelopment Plan, debt repayments from the former Downtown Redevelopment Project Area to the City were to be used to make the bi-annual bond payments. While the dissolution of redevelopment agencies statewide put an end to the original plan, debt repayments from the Successor Agency to the City under certain circumstances, allowed by amendments to the Redevelopment Dissolution Act, now allow other redevelopment loan repayments to the City to be used for debt service on the Open Space Bonds. The first repayment was made in 2016. An appropriation increase of $2,651,115 is needed to transfer funds to the Debt Service Fund, to make scheduled repayments of the Open Space Bonds debt service, as approved by the California Department of Finance.
Increase appropriations in the Insurance Fund (IS 390) in the Citywide Activities Department (XC) by $3,800,000, to fund settlements of prior lawsuits with the City of Long Beach, offset by fund balance.
On April 5, 2016 and August 9, 2016, the City Council authorized the City Attorney to pay the full settlements of the lawsuits entitled N.W., a minor by and through his guardian ad litem Tkeyah Boyd v. City of Long Beach, et al., Nona Opsitnick and Linda Sterett v. City of Long Beach, and Lucia Morejon, and Estate of Hector Morejon v. City of Long Beach, et al., respectively.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
APPROVED:
PATRICK H. WEST
CITY MANAGER