TITLE
Recommendation to authorize the transfer of the City's portion of the Tidelands Oil Revenue Fund net profits into the Tidelands Operating Fund for specified capital improvement projects and transfer $3,397,000 into the Harbor Revenue Fund;
Increase appropriations in the Tidelands Oil Revenue Fund (NX 420) in the Long Beach Gas and Oil Department (GO) by $18,000,000; and
Increase appropriations in the Tidelands Operating Fund (TF 401) and the Department of Parks, Recreation and Marine (PR) by $3,550,000, increase appropriations in the Tidelands Operating Fund (TF 401) and the Department of Public Works (PW) by $8,850,000, increase appropriations in the Tidelands Operating Fund (TF 401) and the Department of Citywide Activities (XC) by $2,000,000. (Districts 2,3)
DISCUSSION
The passage of Measure D last year clarified the City Charter, that the City Council has complete jurisdictional oversight over all City owned or controlled oil operations presently owned or hereafter acquired including but not limited to both existing and new oil contracts and oil revenue. Formerly, some oil leases within the Harbor District were being handled through the Board of Harbor Commissioners.
Between November 30, 2010 and April 30, 2011, $18 million has been deposited into the Tidelands Oil Revenue Fund (TORF) from the City's net profits in the Harbor District. TORF is the depository for all Tidelands oil revenues including those revenues belonging to the State. Under the direction of the City Council, the City's portion of TORF funds can be transferred into the Tidelands Operating Fund (TOF) and/or the Harbor Revenue Fund. To date this fiscal year, no such transfer has occurred.
Consistent with the City Council-approved Harbor Department FY 11 budget, the Harbor Department will be allocated approximately $3.4 million in oil revenue from TORF. It is recommended that the City Council authorize the transfer of the remaining TORF balance of City-controlled net oil revenue i...
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