TITLE
Recommendation to approve the Fiscal Year 2019 third departmental and fund budget appropriation adjustments in accordance with existing City Council policy. (Citywide)
DISCUSSION
On September 4, 2018, the City Council adopted the Appropriations Ordinance governing the City's Adopted Budget for Fiscal Year 2019 (FY 19). Periodically, changes in revenue or operating conditions require mid-year 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. In accordance with the City's practice, these adjustments are presented periodically throughout the year to the City Council for consideration. Please see Attachment A for a Summary of Proposed Adjustments of impacted City funds, Attachment B for a recap of FY 19 General Fund Group Expenditure Budget Adjustments, and Attachment C for a Summary of Association of Long Beach Employees (ALBE) Skilled and General Basic Unit Raises by Department and Fund Group:
This matter was reviewed by Deputy City Attorney Amy R. Webber on December 2, 2019.
TIMING CONSIDERATIONS
The following requests for adjustments to FY 19 departmental and fund appropriations are necessary to reflect changes in operating conditions. City Council action is requested on December 17, 2019, to enable the timely processing of budget adjustments.
FISCAL IMPACT
FY 19 Appropriation Adjustments
City Manager
1. Increase appropriations in the Special Advertising and Promotions Fund Group in the City Manager Department by $150,087 for coordinating eligible special events that call attention to the City, its natural advantages, resources, enterprises, attractions, climate, and facilities, offset by funds available.
Decrease appropriation in the General Fund Group in the City Manager Department by $150,087 to reflect a transfer of expenses.
During FY 19, one-time District Priority Funds were appropriated in the General Fund Group in the City Manager's Department for City Council specific initiatives. The City Manager's Department has identified some special events that were coordinated by the Office of Special Events and Filming during FY 19 on behalf of the Council Districts and approved by the City Council that are eligible to be funded from the Special Advertising and Promotions Fund. To align expenses for these events with appropriate eligible funds, including Public Affairs costs and large events benefiting the community, it is recommended that $150,087 of special events costs in the General Fund Group be transferred to the Special Advertising and Promotions Fund Group in the City Manager's Department. Any additions because of this to the FY 19 year-end General Fund Group funds available and its recommended useswill be brought to the City Council as part of the FY 19 year-end performance report.
2. Increase appropriations in the Special Advertising and Promotions Fund Group in the City Manager Department by $75,000 for costs associated with the grand opening of the Billie Jean King Main Library, offset by funds available. The grand opening of the Billie Jean King Main Library provided the City the opportunity to showcase and the community to celebrate this new state-of-the-art public facility. Expenses were incurred to host the grand opening, including various contracted services, such as retaining the Convention and Visitor's Bureau to manage the event. An increase in appropriation is necessary to align budget with actual expenditures related to the grand opening, offset by funds available.
3. Increase appropriations in General Fund Group in the City Manager Department by $45,000 for Census 2020 activities, offset by additional citywide revenue received in the General Fund Group.
Staff started working on Census 2020-related activities to ensure a fair and accurate count in FY 19 prior to the grant agreement with the County of Los Angeles. The City's expenses for this project involve support needed to create hyperlocal communications materials for the early outreach and education phase of 2020 Census efforts. Communication materials include digital and print collateral that will help to increase residents' awareness about the Census 2020 apportionment and funding roles for the City. In FY 19, the City incurred $53,677 in expenses for Census 2020-related activities and received $45,000 in revenue, including a State reimbursement related to Census 2020 activities and a refund for an advance payment of a FUSE Fellow dedicated to the Census 2020 project, both of which increase funds available. The remaining $8,677 was absorbed within the City Manager Department's operating budget. An increase in appropriation is necessary to fund these
Census expenses in FY 19, offset by citywide FY 19 General Fund Group funds available due to citywide revenues received above budget.
4. Increase appropriations in the General Fund Group in the City Manager Department by $100,000 for the Justice Fund, offset by funds set aside for this purpose.
On December 4, 2018, the City Council authorized the establishment of the Justice Fund to provide legal representation to low-income immigrants facing deportation in the City. The Fund is to be supported by previously set-aside one-time sources of $100,000 from FY 18 General Fund Group year-end surplus and $150,000 appropriated from FY 19 adoption night actions. The $100,000 in one-time funds was not previously appropriated and is offset by funds set aside for this purpose.
5. Increase appropriations in General Grants Fund Group in the Citywide Activities Department by $16,780 for upgrades to electrical ballasts, offset by revenue received by Southern California Edison for this purpose.
As part of the First Budget Adjustment Letter in FY 19, the appropriation to transfer $25,000 for the upgrades to electrical ballasts at four City facilities was requested in the Development Services Department. At this time, the total cost of the project is $16,780; therefore, a technical correction is requested to allocate only the amount needed and to move the appropriation to the proper department to make the transfer.
6. Increase appropriations in the Special Advertising and Promotions Fund Group in the City Manager Department by $275,575 for a rebate payment to Portside Partners, LLC., offset by Transient Occupancy Tax (TOT) revenues. In 2007, the City Council approved a ten-year transient occupancy tax (TOT) sharing agreement with Portside Partners, LLC. Under the agreement, a portion of TOT generated from the Residence Inn by Marriot will be rebated to Portside Partners, LLC. The agreed
annual rebate amount was $150,000 plus interest. At any time throughout the agreement, annual payments were not to exceed 25 percent of actual TOT revenues generated from the hotel. The final rebate payment under the agreement will be in FY 19 and totals $551,150. The payment is distributed evenly between the General Fund and Special Advertising and Promotions Fund Groups, with $275,575 charged to each fund. An appropriation increase in the City Manager Department is requested to cover the final rebate. The final rebate is higher than anticipated and includes final adjustments for interest and previous payments due during the first years of the agreement when TOT revenue generated from the hotel was lower than estimated and did not cover the annual minimum payment and interest.
City Clerk
7. Increase appropriations in General Fund Group in the City Clerk Department by $86,400 for one-time election activities, offset by additional citywide revenue receivedin the General Fund Group.
The City Clerk Department received one-time funds in FY 19 of $663,000 for Election-related expenditures; however, the final costs were higher than anticipated. While the Department was able to absorb some of the costs within current operations, an appropriation increase of $86,400 is necessary to help cover the costs of actual election expenditures, offset by citywide FY 19 General Fund Group funds available due to citywide revenues received above budget.
Civil Service
8. Increase appropriations in the General Fund Group in the Civil Service Department by $40,897 for costs incurred during the transition process of filling the Civil Service Executive Director position, offset by additional citywide revenue received in the General Fund Group.
In FY 19, the Civil Service Department held a search to fill the Civil Service Executive Director position. The Department incurred unbudgeted costs associated with transition of recruiting and filling the Executive Director in FY 19. An appropriation increase is requested in the amount of $40,897 for these unbudgeted costs, offset by FY 19 General Fund Group funds available due to citywide revenues received above budget.
Development Services
9. Increase appropriations in the Development Services Fund Group in the Development Services Department by $625,000, offset by revenue received from the receipt of the SB 2 Planning Grant.
On May 7, 2019, the City Council authorized the application for, and receipt of, SB 2 Planning Grants Program funds from the State of California Department of Housing and Community Development in the amount of $625,000. An appropriation increase of $625,000 is requested for: ( 1) professional planning services to study land use and mobility regulations for the Anaheim Street corridor in the context of the City's proposed updated General Plan Land Use Element, (2) the update and environmental review of the Century Villages at Cabrillo Master Plan, and, (3) the Atlantic Bridge Community Project {homeless shelter) master planning efforts, offset by grant revenue.
Disaster Preparedness and Emergency Communications
10. Increase appropriations in the General Grants Fund Group in the Health and Human Services Department by $13, 180, offset by a reallocation of Homeland Security Program grant funding from Disaster Preparedness and Emergency Communications and Fire Departments. Decrease appropriations in the General Grants Fund Group in the Disaster Preparedness and Emergency Communications Department by $10, 176 to align with grant funded expenditures. Decrease appropriations in the General Grants Fund Group in the Fire Department by $19,434 to align with grant funded expenditures. On February 20, 2018, the City Council approved a grant from the 2016 State Homeland Security Program for reimbursement grant funding up to $488,801 to enhance the City's response capabilities. The requested adjustment will align appropriations to actual grant funded expenditures totaling $472,371 in the Health, Fire, and Disaster Preparedness and
Emergency Communications Departments. The Health and Human Services Department expended $13,180 to purchase mobile personal electric transport system (M-PETS) for transporting medications, equipment, and supplies during Point of Distribution exercises and other health responses. The appropriation increase to the Health and Human Services Department is offset from cost savings from grant funded projects within the Fire and Disaster Preparedness and Emergency Communications Departments.
Economic Development
11. Increase appropriations in the General Fund Group in the Economic Development Department by $930,975 for unfunded costs associated with the maintenance or beautification of City-owned properties and the administration of real estate
transactions, offset by a combination of fees collected during property sales and additional citywide revenue received in the General Fund Group. In FY 19, the Economic Development Department incurred approximately $930,975 in unbudgeted expenditures for the maintenance, beautification, and administration of City owned properties. An appropriation increase is needed for these expenses, offset by $688,192 of the administrative recovery fees (5 percent) received from the management of sales of Successor Agency property and intended to be used for property management purposes; and by $242,783 of FY 19 General Fund Group funds available due to citywide revenues received above budget, including revenue from the Economic Development Department.
12. Increase appropriations in the General Fund Group in the Economic Development Department by $809,000 for core, shell and tenant improvements at 309 PineAvenue, offset by additional citywide revenue received in the General Fund Group.
On December 5, 2017, the City Council authorized the release of $250,000 in funds received from the sale of former Redevelopment Agency-owned parcels, and an additional $51,000 of Capital Projects Funds were authorized through a previously approved Adopted Budget for improvements at the 309 Pine Avenue property as part of the development of the Shaun R. Lumachi Innovation Center, which provides a Downtown learning and working center supporting business workers and entrepreneurs. The Economic Development Department oversaw core and shell and interior tenant improvements at 309 Pine Avenue. During planned improvements, the funding authorized was exhausted and a need for previously unforeseen repairs was discovered, including extensive work related to the elevator shaft. These repairs were deemed necessary to bring the site up to code and crucial to the safety of patients at the building. Additional work costs are expected in FY 20. An increase in appropriations is requested for the cost of the FY 19 unforeseen repairs, offset by FY 19 General Fund Group funds available due to citywide revenues received above budget, partially including revenue from the Economic Development Department.
13. Increase appropriations in the General Fund Group in the Economic Development Department by $1,504,000 for direct costs associated with the Armory and Community Hospital Long Beach, offset by additional citywide revenue received in
the General Fund Group. In the FY 19 Adopted Budget, the Economic Development Department received one-time funding of $1,000,000 in the General Fund Group to support direct costs associated with holding the Armory and Community Hospital Long Beach properties. As staff worked toward negotiating a long-term lease for Community Hospital, an approximately $1,504,000 in expenditures beyond the one-time funding was incurred. The Community Hospital costs totaled approximately $2.2 million including security, permitting and certification, utilities and studies and repairs. The Armory costs were $284,000 and primarily included security and utilities. Community Hospital and Armory costs were, and are, necessary to maintain and
preserve the facilities for future use. The appropriation increase needed for these assets is requested, offset by FY 19 General Fund Group funds available due to citywide revenues received above budget.
14. Increase appropriations in the General Fund Group in the Economic Development Department by $311,000 for The LAB-related costs, offset by the release of Successor Agency sale proceeds.
On April 18, 2017, the City Council authorized a $350,000 reimbursement for tenant and faicade improvements for the properties along Atlantic Avenue between 55th Street and South Street, and 620 and 635 South Street, known as The LAB. The City Council authorized funding from the 75 percent of the North Redevelopment Project Area allocation of one-time sale proceeds, with an allowance for temporary internal borrowing from other project areas if necessary due to timing of cash receipts. Work and expenses associated with this project were incurred in FY 19, and additional costs are anticipated in FY 20. An appropriation increase for $311,000 of the $350,000 authorized is requested for the FY 19 costs, offset by the release of sale proceeds designated by City Council policy for this purpose.
15. Increase appropriations in the General Fund Group in the Economic Development Department by $2,418,515, for general departmental operating expenses, offset by additional citywide revenue received in the General Fund Group. In FY 19, the Economic Development Department reported that it incurred unbudgeted costs related to several citywide projects considered a priority of the City Council. These projects included: (1) almost $600,000 in costs for real estate services provided to other City departments; (2) nearly $250,000 for tenant improvements related to the new WorkPlace Center at Spring Street and Clark Avenue not covered by federal grants; (3) over $125,000 for cleanup, resurfacing, and monthly lease payments to address homeless encampments and to create additional parking in the downtown; (4) over $80,000 for acquisition and site preparation of a new homeless property storage facility and the 2019 Winter Shelter; (5) over $100,000 for demolition, site preparation, and beautification of various high-profile properties; (6) over $200,000 for extensive capital repairs, maintenance, and security for 1850-1862 Atlantic within by the Refuse Fund; (7) approximately $250,000 in small business support programs including economic research consulting, technical assistance programs, special events, training, microfinance, and revolving loan program support no longer funded by Redevelopment Agency; and, (8) over $300,000 for one-time unbudgeted internal services provided for other City departments. Department management indicates it has adjusted the FY 20 budget to mitigate the underfunding of internal services provided for other City departments and will continue to evaluate solutions moving forward to better balance ongoing revenue and expenses as well as any unbudgeted one-time costs. The appropriation increase needed for these unbudgeted costs is offset by FY 19 General Fund Group funds available due to citywide revenues exceeding budgeted amounts.
Energy Resources
16. Increase appropriations in the Gas Fund Group in the Energy Resources Department by $1,000,000 to transfer funds to the General Fund Group, offset by additional revenue. In FY 19, due to above expected revenue performance, the Gas Fund Group is able to increase the FY 19 transfer to the General Fund Group by $1,000,000 from $9,350,229 to $10,350,229. This one-time additional transfer is within the City Charter authorized level.
17. Increase appropriations in the Uplands Oil Fund Group in the Energy Resources Department by $400,000 to align the budget to projected annual expenditures related to the transfer to the State associated with higher oil revenues and expenditures, offset by revenue. Increase appropriations in the Tidelands Oil Revenue Fund Group in the Energy Resources Department by $9,000,000 to align the budget to projected annual expenditures associated with higher oil revenues, offset by revenue. Estimated expenses in the Uplands Oil Fund Group and Tidelands Oil Revenue Fund Group are anticipated to exceed the budget amount. The Adopted FY 19 Budget oil projections were based on $55 per barrel and have been trending around this amount. While average price per barrel has been close to the budgeted amount, there have been lower oil-related operating expenditures. Both price and production costs impact the City's net oil revenues (gross revenues minus oil related expenditures). The revised operating costs have led to an increase in both Uplands and Tidelands net revenues and corresponding increases in payments (classified as expenditures) to the State of California Lands Commission and to the transfer amount to the Tidelands Operations Fund Group.
18. Increase appropriations in the General Fund Group in the Fire Department by $705,328 for overtime expenses related to staffing assistance for California wild/and fires, offset by reimbursement revenue from the State of California.
The Fire Department provided staffing assistance for California wildland fire events during FY 19. The overtime expense for backfilling the employees who provided support for fighting these wildland fires is unbudgeted, and an appropriation increase is necessary, to be offset by reimbursement revenue from the State of California.
19. Increase appropriations in the General Fund Group in the Fire Department by $235,218 for overtime expenses related to providing staffing at special events, offset by revenue from production companies and event promoters. The Fire Department provided staffing at various special events throughout the year, including the Grand Prix and filming for various movies, commercials and television programs. In FY 19, an increase in staffing at more and larger events caused unbudgeted
staffing costs, necessitating an appropriation increase. The increase in appropriation of $235,218 is fully offset by reimbursement revenues received from production companies, event promoters, and the Grand Prix Committee.
20. Increase appropriations in the General Fund Group in the Fire Department by $202,003 for expenses related to development and delivery of training at the Long Beach Fire Department Regional Training Center, offset by revenue from student
enrollment fees and East Los Angeles College.
Throughout the fiscal year, Long Beach Fire Department staff provided training to Department employees and Fire Recruits. An appropriation increase is necessary because the actual amount of training costs exceeded the budgeted amount. The increase in appropriation of $202,003 is fully offset by revenue received through the City's Instructional Services Agreement with East Los Angeles College.
21. Increase appropriations in the General Fund Group in the Fire Department by $616,425 for the purchase of safety equipment and supplies, offset by additional citywide revenue received in the General Fund Group.
During FY 19, the Fire Department purchased critical safety equipment and supplies used in firefighting and emergency medical services activities exceeding the budgeted amount. An appropriation increase of $616,425 is requested, offset by FY 19 General Fund Group funds available due to citywide revenues received above budget, including revenue from the Fire Department.
22. Increase appropriations in the General Fund Group in the Fire Department by $928,924 for Ground Emergency Medical Transportation Quality Assurance Fee payments to the State of California, offset by State Ground Emergency Medical
Transportation revenue.
In accordance with Senate Bill 523, the State Department of Health Care Services (DHCS) established the Ground Emergency Medical Transportation (GEMT) Quality Assurance Fee (OAF) Program to provide supplemental Medi-Cal payments to GEMT providers, increasing the amount of reimbursement for ambulance transportation of individuals covered by MediCal beginning in FY 19. DHCS calculates the annual GEMT OAF rate imposed on each emergency medical transport provided by the Fire Department. Since these payments to the State are unbudgeted, an appropriation increase is necessary. The increase in appropriation of $928,924 is fully offset by this increased State reimbursement.
23. Increase appropriations in the General Fund Group in the Fire Department by $58,773 for expenses related to the development and delivery of training at the Long Beach Fire Department Regional Training Center, offset by associated revenue for
this purpose.
Long Beach has been designated as a training hub for all fire jurisdictions in the Los Angeles Region. Throughout FY 19, instructors provided training to members of the fire service from other agencies. An appropriation increase is necessary since the actual amount of training costs exceeded the budgeted amount. The increase in appropriation of $58,773 is fully offset by fees paid by regional partners and other outside fire agencies.
24. Increase appropriations in the Tidelands Operating Fund Group in the Fire Department by $429,590 for expenses related to fire services provided to the Harbor Department, offset by associated revenue for this purpose. Decrease appropriations in the General Fund Group in the Fire Department by $1,037,772 for expenses related to fire services provided to the Harbor and Airport Departments as outlined by the FY 19 Memorandum of Understanding (MOU) foreach. The FY 19 MOU for services provided by the Fire Department to the Harbor and Airport Departments were finalized after the FY 19 budget was adopted. To align budgets for these MOUs in the Tidelands Operating Fund Group and General Fund Group, appropriation
adjustments are necessary. The requested budget adjustments match the reimbursements received from the Harbor and Airport Departments as part of the monthly MOU service charges.
Health and Human Services
25. Increase appropriation in the General Fund Group in the Health Department by $121,814 for hazardous waste cleanup, offset by additional citywide revenue received in the General Fund Group.
The Health Department coordinates and manages the hazardous waste cleanup for the City. The budget of $233,575 for these services are in the Public Works Department. However, in FY 19, the number of calls for service for hazardous waste
cleanup exceeded the budgeted amount by $121,814. The appropriation increase is needed in the Health Department General Fund Group, offset by FY 19 General Fund Group funds available due to citywide revenues received above budget.
Human Resources
26. Increase appropriations in the Insurance Fund Group in the Human Resources Department by $232,000 to cover additional insurance premium costs for General Liability, offset by revenues recouped from departments.
Expenses in the Insurance Fund Group exceeded budget by $232,000 to cover additional insurance premium costs for General Liability on excess liability, marine, and special event renewal expenses. A budget adjustment is needed to align budget with actuals, offset by revenues recouped from departments user charges.
Library Services
27. Increase appropriations in the General Grants Fund Group in the Library Services Department by $228,983 for programming and materials, offset by revenue from the Public Library Foundation and from other agencies.
Library Services has received funds totaling $214,892 from the Long Beach Public Library Foundation, including $3, 11 O from the Pacific Library Partnership as reimbursement for Veterans' programming and expenses. Approximately $68,712 in funding is intended for programming and materials for the Library's literacy programs, and $143,070 from the JetBlue consent decree is earmarked for materials purchases. In addition, Library Services has received $14,091 from the Southern California Library Cooperative Mental Health initiative as reimbursement for mental health programming and expenses. An appropriation increase is necessary to budget these funds and allow for their expenditure.
Parks, Recreation and Marine
28. Increase appropriations in the General Fund Group in the Parks, Recreation and Marine Department by $60,000 for veterinary care, offset by funds reserved for veterinary care purposes.
The Parks, Recreation and Marine Department, Animal Care Services (ACS) Bureau had various unbudgeted expenses in FY 19. These unbudgeted expenses are related to inhouse and contractual services for veterinary care. ACS has various reserve accounts intended to promote the live outcome of animals through adoption, rescue and fostering programs, medical treatment and veterinary care, spay and neutering of animals, and shelter improvements for both animals and ACS staff and patrons. The funds associated with this budget adjustment are from a trust that is designated for veterinary care. These funds cannot be used for other purposes. A budget adjustment in the amount of $60,000 is requested in the General Fund Group, offset by funds set aside for these purposes in the medications and veterinary donation reserves.
29. Increase appropriations in the Special Advertising and Promotions Fund Group in the Parks, Recreation and Marine Department by $60,000 for the 2019 Municipal Band Summer Concert Season, offset by sponsorship and private donations revenues.
Increase appropriations in the Tidelands Operations Fund Group in the Parks, Recreation and Marine Department by $44,000 for the 2019 Municipal Band Summer Concert Season, offset by sponsorship and private donations revenues.
The Parks, Recreation and Marine Department is requesting an appropriation increase in the amount of $60,000 in the Special Advertising and Promotions Fund Group and $44,000 in the Tidelands Operations Fund Group to pay for activities associated with the 2019 Municipal Band Summer Concert Season. These increases in appropriation are fully offset
by revenues generated from sponsorship and private donations.
30. Increase appropriations in the General Fund Group in the Parks, Recreation and Marine Department by $62,730 to support Animal Care Services Bureau, offset by donations received.
In 2018, the Parks, Recreation and Marine Department received a donation collected through Partners of Parks for the Animal Care Services Bureau, in the amount of $69,700. Of this amount, Partners of Parks retains a 1 O percent operational fee. The remaining amount is deposited in Partners of Parks to offset Animal Care Services Bureau's operational expenses. The amount retained by Partners of Parks for this donation is $6,970 and the amount available for the Animal Care Services Bureau is $62,730. A budget adjustment in the amount of $62,730 is requested to offset general expenses pertaining to the care and medical treatment of animals and purchase of pharmaceuticals and medical supplies, offset by revenue from Partners of Parks.
31. Increase appropriations in the General Fund Group in the Parks, Recreation and Marine Department by $16,755 to reimburse First Serve, Inc., for improvements to the El Dorado Tennis Center, offset by funds reserved for this purpose.
The Parks, Recreation and Marine Department has two Tennis Centers, Billie Jean King (BJK) and El Dorado Park. First Serve, Inc., has a permit for the operation and management of both Tennis Centers. All revenue derived from the tennis concession is deposited into the City's Tennis Reserve account. All expenditures from this reserve must be expended for the purchase, maintenance, operation or improvement of grounds, buildings, structures, equipment or facilities for public tennis. Pursuant to reserve requirements, the El Dorado Park Tennis Center made electrical panel repairs and replaced 12 light bulbs and corresponding components at a cost of $16,755. A budget adjustment in the amount of $16,755 is requested to reimburse First Serve, Inc., for the improvements, offset by funds from the reserve.
32. Increase appropriations in the General Grants Fund Group in the Health and Human Services Department by $25,000, offset by a reallocation of UASI grant funding from the Parks, Recreation, and Marine Department.
Decrease appropriations in the General Grants Fund Group in the Parks, Recreation, and Marine Department by $25,000, to offset grant expenditures in the Health and Human Services Department.
On April 4, 2017, the City Council approved the Federal 2016 Urban Area Security Initiative (UASI 2016) grant award for $6,216,170. The requested reallocation is from cost savings in grant-eligible programs and equipment in the Parks, Recreation and Marine Department and will be used to support grant-eligible expenditures in the Health and Human Services Department. The increased appropriations will support the Health and Human Services Department expenses related to the City's Counterterrorism and Emergency Response Training. These include costs to form a committee of City staff to update the Citywide Mass Care and Sheltering Operations Plan, develop a mass care training schedule, prepare for a Mass Care Shelter Operation, and any annexes required for individual departments. A udget adjustment is requested in the amount of $25,000, to offset these eligible expenses within the grant performance period.
33. Increase appropriations in the General Fund Group in the Parks, Recreation and Marine Department by $8,580 for the Summer Fun Day Camp program, offset by associated reimbursement revenue.
The Parks, Recreation and Marine Department incurs expenses related to the youth recreational programming for the Summer Fund Day Camp program that included participants' field trips and !-shirts. These expenses were unbudgeted, and the Department received reimbursement revenues to offset these expenses. An appropriation increase of $8,580 is requested to offset Summer Fun Day Camp programming expenses, offset by reimbursement revenue.
34. Increase appropriations in the General Fund Group in the Parks, Recreation and Marine Department by $243,000, for plant maintenance at DeForest Wetlands, offset by additional citywide revenue received in the General Fund Group.
The original contract for the construction of the DeForest Wetlands Project included a threeyear plant performance period. Due to increased construction costs, the three-year plant performance requirement was eliminated. This action provides the equivalent funding for the work to be done by the Parks, Recreation and Marine Department. Total costs of maintenance over a three-year period are estimated at $243,000, offset by FY 19 General Fund Group funds available due to citywide revenues received above budget, including revenue from the Public Works Department.
35. Increase appropriations in the Tidelands Operating Fund Group in the Parks, Recreation and Marine Department by $250,000 for emergency responses to storm damage and repairs, offset by funds available.
On March 27, 2019, the Parks, Recreation and Marine Department released a memorandum regarding unbudgeted costs due to Tropical Storm Rosa and Hurricane Sergio. For the first time, an "all-City" emergency response team was created to mitigate conditions created by Tropical Storm Rosa and Hurricane Sergio, between October 1 to October 12, 2018. The emergency response, equipment, and debris removal caused the Department to exceed budget in the Tidelands Operating Fund Group. An appropriation increase is requested to align budget to expenditures, offset by Tidelands funds available.
Police
36. Increase appropriations in the General Grants Fund Group in the Police Department by $1,222,948, for front-line enforcement, offset by State COPS 18 grant revenue.
The Long Beach Police Department received an additional $1,222,948 for grant year 2018 from the State of California Citizens Option for Public Safety (COPS) Program funding from the County of Los Angeles Supplemental Law Enforcement Services Account. These State COPS funds will be used for front-line law enforcement efforts, including overtime hours and to support a Deputy Probation Officer assigned by the County of Los Angeles.
37. Increase appropriations in the General Fund Group in the Police Department by $26,315 for legal services, training, and equipment, offset by Asset Forfeiture funds.
The Chief of Police is authorizing the use of $26,315 in Federal Asset Forfeiture funds for unbudgeted legal services, investigations training, and law enforcement equipment.
38. Increase appropriations in the General Fund Group in the Police Department by $12,000 for youth intervention/prevention programs, offset by Asset Forfeiture funds.
The Chief of Police is authorizing the use of $12,000 in State Asset Forfeiture funds for youth intervention/prevention programs for at-risk youth, which includes National Association for the Advancement of Colored People's (NAACP) Stay in School Program and the Long Beach Bar Foundation's Short Stop Program.
Public Works
39. Increase appropriations in the General Fund Group in the Public Works Department by $1,300,000 for permit inspection costs, offset by permit inspection revenues.
Due to the higher than usual volume of construction permits issued, operational expenses ave also increased as each permit is inspected to verify the permit requirements are being met. An appropriation increase in the General Fund Group in the Public Works Department in the amount of $1,300,000 is requested to cover unbudgeted costs related to citywide permit inspections, offset by the increased permit revenue the Public Works Department has received in the General Fund Group.
40. Increase appropriations in the General Fund Group in the Public Works Department by $25,000 for Pine Avenue landscaping improvements, offset by a transfer from the Citywide Activities Department; Decrease appropriations in the Capital Projects Fund Group in the Public Works Department by $25,000 as a technical correction; and, Decrease appropriations in the General Fund Group in the Citywide Activities Department by $25,000, to offset a transfer to the Public Works Department.
On June 18, 2019, the City Council approved the use of $25,000 of the First Council District one-time District Priority Funds to support sustainable landscaping design and installation, as well as irrigation repairs, along Pine Avenue between 3rd and 10th Streets. An appropriation increase in the Capital Projects Fund Group in the Public Works Department was approved. This recommendation provides a technical correction to move appropriation to the correct fund group where the expenditure will be realized. A decrease in appropriations in the General Fund Group in the Citywide Activities Department is necessary to facilitate a transfer to the Public Works Department.
41. Decrease appropriations in the Capital Projects Fund Group in the Public Works Department by $1,357,617 for removal of one low flow diversion (LFD) system near the Los Angeles River Estuary from the scope of work per amended Grant Agreement 13-511-550.
On March 12, 2013, the City Council authorized the City Manager to submit a grant application, and accept the grant if awarded, for the Clean Beaches Initiative (CBI) Grant Program to divert water from one storm drain that discharges into the Los Angeles River Estuary and from two storm drain mains that discharge to the beach at the San Pedro Bay. In April 2014, Agreement 13-511-550 was executed with a budget of $4,470,626. The purpose of the Agreement was for designing, constructing, and monitoring effectiveness of two Vortex Separation System trash removal devices and three low flow diversion (LFD) systems to sanitary sewers to decrease the fecal indicator bacteria pollutant loading to San Pedro Bay Beach and the Los Angeles River Estuary. On April 17, 2016, the City requested an amendment to the Agreement. The request was to remove the LFD near the Los Angeles River Estuary from the scope of work, which would decrease the grant award from
$4,470,626 to $3,113,009. This recommendation reduces the appropriation to match the revised grant award amount.
42. Increase appropriations in the Civic Center Fund Group in the Public Works Department by $250,000 for the design phase of Lincoln Park, offset by a transfer of Park Impact Fees revenue from the Capital Projects Fund Group in the Parks,
Recreation and Marine Department.
Lincoln Park is a new development of four acres of park and open space adjacent to the newly developed Civic Center. The park will include a dog park, playground, special event space and adult recreation areas. The park design will include lighting, walkways, irrigation, landscaping, a public restroom, and space for a concessionaire. This appropriation increase is offset by a transfer of $250,000 of Park Impact Fees from the Capital Projects Fund Group in the Parks, Recreation and Marine Department. Use of Park Impact Fees has been approved by the Director of the Parks, Recreation and Marine Department.
43. Increase appropriations in the Capital Projects Fund Group in the Public Works Department by $191,491 for the installation of the Multi-Space Parking Pay Stations, offset by parking revenue.
On December 2, 2014, the City Council approved the purchase and installation of new smart parking meters throughout the City and included in this action was a recommendation from the Downtown Long Beach Business Alliance (DLBA) that a portion of the revenue generated by the parking meters over a base amount be dedicated to a Downtown area parking-related improvement-project. To date, $536,873 of revenue has been received in the Downtown area, of which $345,382 is budgeted. An appropriation increase of $191,491 is requested to align the budget with revenues received. The revenues will be used to fund the installation of Multi-Space Parking Pay Stations in the Downtown area to improve parking for visitors and residents.
44. Increase appropriations in the Capital Projects Fund Group in the Public Works Department by $200,000 for the design and construction of a traffic circle at Hellman Street, offset by a transfer from the General Fund Group; and,
Increase appropriations in the General Fund Group in the Public Works Department by $200,000 for a transfer to the Capital Projects Fund Group, offset by additional citywide revenue received in the General Fund Group.
Design and construction of the traffic circle at Hellman Street and Orange Avenue is necessary to reduce the negative effects of motor vehicle use and improve conditions for non-motorized street users within the area. In addition to the benefit of enhanced mobility and traffic calming, installation of a traffic circle will preserve the livability of the residential areas within the Craftsman Village Historic District. This project will be funded by FY 19 General Fund Group funds available due to citywide revenues received above budget, including revenue from the Public Works Department.
45. Increase appropriations in the Capital Projects Fund Group in the Public Works Department by $100,000 to install a hydration station at the Bixby Dog Park, offset by a transfer from the General Fund Group; and,
Increase appropriations in the General Fund Group in the Public Works Department by $100,000 for a transfer to the Capital Projects Fund Group, offset by additional citywide revenue received in the General Fund Group.
When the Bixby Park Dog Park was built in 2017, the project did not include hydration stations due to increased construction costs. Installation of hydration stations for both pets and their owners includes a new backflow device, trenching and water line installation, installation of the sump, concrete pad and fountain, and the repair of irrigation lines that may be damaged in the process of the installation. Total project cost is estimated at $100,000 and will be funded by FY 19 General Fund Group funds available due to citywide revenues exceeding budget, including revenue from the Public Works Department.
46. Increase appropriations in the Capital Projects Fund Group in the Public Works Department by $200,000 for installation of plastic tree grates, offset by a transfer from the General Fund Group; and,
Increase appropriation in the General Fund Group in the Public Works Department by $200,000 for a transfer to the Capital Projects Fund Group, offset by additional citywide revenue received in the General Fund Group.
The existing steel tree grates on Pine Avenue between Ocean Boulevard and 7th Street pose safety concerns to the public, as they do not accommodate the growth of the trees. As the trees mature, the existing steel tree grates are lifted, creating potential tripping hazards. As a result, 105 recyclable plastic tree grates will be installed. The plastic tree grates will reduce maintenance costs, trip hazards, increase accessibility, and accommodate for the growth of the tree. All the recyclable plastic tree grate products are ADA-compliant and their installation will adhere to ADA standards throughout the sidewalks. Installation of the new recyclable plastic tree grates includes removal of sidewalk concrete, base material and soil as needed, construction of underlaying concrete curbs and bases to assure level installation, installation of tree grates, and removal of power outlets and capping of electrical wires. Total project costs are estimated at $200,000, offset by FY 19 General Fund Group funds available due to citywide revenues received above budget, including revenue from the Public Works Department.
47. Increase appropriations in the Capital Projects Fund Group in the Public Works Department by $150,000, for renovations at Silverado Park and Admiral Kidd Park, offset by a transfer from the General Fund Group; and,
Increase appropriation in the General Fund Group in the Public Works Department by $150,000 for a transfer to the Capital Projects Fund Group, offset by additional citywide revenue received in the General Fund Group.
Due to unforeseen conditions at Silverado Park and Admiral Kidd Park, additional funding is needed to complete the original scope of work. Additional funds will support completing the kitchen and restroom renovation at Silverado Park and restroom renovations at Admiral Kidd Park. Improvements include replacing kitchen cabinets, counter tops, backsplash and kitchen sink at Silverado Park, and replacement of restroom fixtures, concrete floor refinishing, tiling, partitions, lighting and door closers at Silverado Park and Admiral Kidd Park. Total project costs are estimated at $150,000, offset by FY 19 General Fund Group funds available due to citywide revenues received above budget, including revenue from the Public Works Department.
48. Increase appropriations in the Capital Projects Fund Group in the Public Works Department by $116,834 to replace light fixtures at the El Dorado Tennis Center, offset by a transfer of funds reserved for this purpose in the General Fund Group in
the Parks, Recreation and Marine Department; and,
Increase appropriation in the General Fund Group in the Parks, Recreation and Marine Department by $116,834 to transfer to the Public Works Department, offset by funds reserved for this purpose.
Replacement is needed for 96 light fixtures at the El Dorado Tennis Center with LED fixtures to reduce operating and maintenance costs. There are 48 existing light poles, each holding 2-3 lights, with a total of 120 light fixtures throughout the Center. Representatives from the Center have thoroughly researched appropriate fixtures for this environment, and NLS VUE 3 fixtures were chosen based on design and successful implementation at the nearby Billie Jean King Tennis Center. Total project costs are estimated at $267,000 of which $150,000 is already budgeted in the Capital Projects Fund Group in the Public Works Department. An additional $116,834 is needed to complete the project and will be funded by the City's Tennis Reserve account. All revenue derived from the tennis concession is deposited into the City's Tennis Reserve account. All expenditures from this reserve must be expended for the purchase, maintenance, operation or improvement of grounds, buildings, structures, equipment or facilities for public tennis.
49. Increase appropriations in the Capital Projects Fund Group in the Public Works Department by $78,977 to repair the Recreation Park Lawn Bowling Facility roof, offset by a transfer from the General Fund Group in the Parks, Recreation and Marine Department.
The Recreation Park Lawn Bowling Facility roof is in disrepair and needs to be repaired to prevent further damage. The project consists of replacement of the tile underlayment, rotten or damaged plywood, approximately 50 percent of the clay ceiling tiles and clay trims, and the flashings to avoid further water damage to the structure. The project is estimated at $78,977, which includes construction cost and project/construction management. Project costs will be offset by a transfer from General Fund Group in the Parks, Recreation and Marine Department from operational savings in the Maintenance Operations Bureau.
50. Increase appropriations in the Civic Center Fund Group in the Public Works Department by $11,935,556 for the Public Safety Parking Structure, offset by revenues from the 2019-AA Bond Issue and a pending revolving line of credit; and,
Decrease appropriations in the Capital Projects Fund Group in the Public Works Department by $13,300,000 as a technical correction.
In May 2019, the City Council approved $13,300,000 for a Public Safety Parking Structure at the Civic Center. The City issued bonds of $10,373,944 and expects to secure a line of credit for an approximate additional $1,561,612 to complete the funding authorized by the City Council. This appropriation adjustment is a technical correction to transfer the appropriation to the fund where project expenses, including construction costs and project management, are being realized and to reduce appropriation to reflect savings related to the bond issuance.
51. Increase appropriations in the Civic Center Fund Group in the Public Works Department by $207,369 for workforce privacy upgrades to the Battalion Chief's quarters at Fire Station 1, offset by a transfer from the Fire Department; and,
Increase appropriations in the Capital Project Fund Group in the Fire Department by $207,369 for a transfer to the Public Works Department, offset by Fire Facilities Impact Fee revenue.
The Fire Station 1 Battalion Chief's Quarters Project facilitated the move of the Battalion Chief from Fire Station 10 to Fire Station 1. Moving the Battalion Chief from Central Long Beach to Downtown was necessary to place an incident commander closer to the Port of Long Beach and Downtown high-rise structures. The project includes new plumbing, bathroom fixtures and electrical work. The estimated cost is $207,369 and will be funded by Fire Facilities Impact Fee revenue in the Fire Department and transferred to the Capital Projects Fund Group in the Public Works Department. The use of Fire Facilities Impact Fees has been approved by the Fire Chief.
52. Increase appropriations in the Tidelands Operating Fund Group in the Public Works Department by $641,798 for the Seaside Way Storm Drain Project, offset by reimbursement grant revenue; and,
Decrease appropriations in the Capital Projects Fund Group in the Public Works Department by $641,798 as a technical correction.
On April 23, 2019, the City Council authorized the City Manager to execute an agreement with the California Governor's Office of Emergency Services to accept and expend Federal grant funds in the amount of $641,798, for the construction of the Seaside Way Storm Drain Project. The funds were originally budgeted in the Capital Projects Fund. Seaside Way Storm Drain Project is within the Tidelands area and the grant funds will be deposited in the Tidelands Operating Fund Group. This item is a technical correction to appropriate funds in the fund group where the expenditures and grant revenue will be realized.
53. Increase appropriations in the Tidelands Capital Projects Fund within the Tidelands Operating Fund Group in the Public Works Department by $995,017 to support the project management, construction management, and inspection costs related to
delivering Tidelands Capital Projects, offset by a decrease in appropriation in the Tidelands Operating Fund Group; and,
Decrease appropriations in the Tidelands Operating Fund within the Tidelands Operating Fund Group in the Public Works Department by $995,017 to be consistent with other citywide capital project budgeting practices.
The City has historically budgeted its project management, construction management, and inspection costs within the Capital Improvement Program (CIP) budget, to capture the complete cost of delivering CIP projects. For Tidelands CIP projects, however, City staff costs related to project and construction management, and inspection have been budgeted within the Tidelands Operating budget rather than in the CIP project budgets. This recommendation will move budget related to project management costs into the associated Tidelands area capital project budgets to be consistent with all other CIP project budgets citywide, and appropriately capture complete costs of Tidelands area CIP projects within each project. Moving forward, project management costs for Tidelands projects will be incorporated in the capital project budgets to be consistent with other citywide capital project budgeting practices.
54. Increase appropriation in the Capital Projects Fund Group in the Public Works Department by $1,503,414, offset by revenue received from the Douglas Park Community Facilities District Funds.
The Public Works Department is requesting an increase in appropriation in the Capital Projects Fund Group by $1,503,414, offset by the City of Long Beach Community Facilities District No. 2007-1 (Douglas Park - Commercial Area) and District No. 2011-1 (Douglas Park - North of Cover Street Area - Services Levy) funds. This appropriation will be used to pay the costs of street improvements, which include grind and patch of deteriorated roadway, slurry seal, and restriping. The Capital Projects Fund Group will bill the Douglas Park Community Facilities District Fund for actual costs.
Citywide Activities
55. Increase appropriations in the Insurance Fund Group in the Citywide Activities Department by $20,636,000, to fund City settlements, judgements and legal fees of prior lawsuits, offset by funds available.
In FY 19, the City Council authorized the City Attorney to pay full settlements of 44 lawsuits, and 9 case judgements were also issued as payouts. An increase of appropriation is requested for the settlements, judgements, and legal fees of the 53 cases in FY 19, offset by funds available in the Insurance Fund Group.
56. Increase appropriations in the General Fund Group in the Citywide Activities Department by $7,238,526 to fund one-time cash support for critical technology infrastructure needs, offset by funds previously set-aside for this purpose or from FY
19 General Fund Group funds available.
On December 5, 2017, the City Council authorized critical technology needs projects totaling $65.1 million (reduced from $66.8 million), to be funded via a combination of capital lease financing debt of $47.8 million and one-time cash of $17.3 million. The critical technology needs include installing a Citywide fiber optic system, replacing outdated technology in the new Civic Center, and supporting needed systems to meet critical City needs. The cash portion of $17.3 million is being funded by $5.3 million from funds available in the General Services Fund Group and one-time cash transfers of $11.9 million from various departments and funds in FY 19. The General Fund Group portion of one-time cash support totals $7,238,526, which will be funded from funds previously set-aside for this purpose or from FY 19 General Fund Group funds available depending on the status of FY 19 year-end.
57. Increase appropriations in the General Fund Group in the Citywide Activities Department by $11,300,000 for debt service payments on the Open Space Bonds, offset by State-approved loan repayment revenue.
The debt service on the 2006 bonds for the development of open space in the City's underserved areas was to be paid after the first few years from Redevelopment Agency (RDA) funds. Although the dissolution of redevelopment agencies statewide ended the original structure, the ensuing redevelopment loan repayments by the State to the City effectively allow the debt service to still be paid by the RDA and not the General Fund. This action transfers RDA loan repayment proceeds for debt service on the bonds as well as eventual calling of the bonds from the General Fund to the Debt Service Fund. For FY 19, an appropriation increase of $11,300,000 is requested to transfer these funds to the Debt Service Fund, offset by RDA loan payments made by the State to the City for this purpose.
58. Decrease appropriations in the General Fund Group in the Citywide Activities Department by $16,005 to offset a transfer of Ninth Council District one-time District Priority Funds to the City Manager Department for the Jazz Festival Event; and,
Decrease appropriations in the General Fund Group in the City Manager Department by $22,222 to remove duplicate appropriation.
On May 21, 2019, the City Council authorized an appropriation increase in the City Manager Department to be offset by the use of Ninth Council District one-time District Priority Funds and an anticipated contribution of up to $35,278 from Partners of Parks (POP), among other sources. Any funding contribution not able to be achieved by POP was to be supplemented by the Ninth Council District one-time District Priority Funds. The POP contribution was short by $16,005. This recommendation authorizes the transfer from the Ninth Council District one-time District Priority Funds to the City Manager Department to cover the contribution shortfall for this event. The May 21, 2019 Council action also authorized an appropriation increase of $22,222 in the General Fund Group to be offset by a transfer from the Special Advertising and Promotions Fund Group. This is a technical correction, removing the excess appropriation as expenditures were realized in the Special Advertising and Promotions Fund Group, and therefore a transfer of these funds to the General Fund Group is no longer necessary.
59. Increase appropriations in the General Fund Group in the Citywide Activities Department by $41,099 for a transfer to the Development Services Fund Group in the Development Services Department for the establishment of a parking solution
fund, offset by revenue received for the sale of a former Successor Agency property in the Downtown Long Beach Area also known as part of the Broadway Block.
The settlement agreement between the City and the Long Beach Transportation and Parking Solutions (LBTAPS), a citizens group, agreed to have the City conduct a Parking Study of the Downtown and Alamitos Beach areas and establishes a parking Solution Fund using 5 percent of the 75 percent that is retained for non-recurring economic programs in the Downtown area of the City's share of the net sale proceeds from the sale of certain Cityowned properties within the Downtown Long Beach area, as specified in the settlement agreement. The Parking Solution Implementation Fund is used to address parking issues Downtown and to implement recommendations and suggestions identified in the Parking Study. Escrow for the sale of the Broadway Block, roughly the east side of Long Beach Boulevard from 3rd Street to Broadway, have closed and funds have been remitted to the County for disbursement to effected taxing entities. An appropriation increase is needed to transfer revenues to the Development Services Department for the parking solution fund per the LBT APS settlement agreement.
60. Decrease appropriations in the General Fund Group in the Citywide Activities Department by $1,664 to offset a transfer of Third Council District one-time District Priority Funds to the City Manager Department as a technical correction.
On July 23, 2019, the City Council authorized an appropriation increase in the City Manager Department to be offset by the use of Third Council District one-time District Priority Funds for a contribution to Friends of Belmont Shore for a community concert. The City Council action incorrectly recommended that the required decrease of appropriation be in the Special Events Department when it should have stated the Citywide Activities Department This is a technical correction to identify the correct department name for the decrease in appropriation for the transfer of funds to the City Manager Department.
61. Increase appropriations in the General Fund Group in the relevant departments by $226,840, as shown in table below, to implement the City Council-approved amendments to the current Terms and Conditions for the Association of Long Beach
Employees (ALBE) Skilled and General Basic Unit, fully offset by funds set aside for this purpose.
Department Amount
Library Services $3,864
Parks, Recreation and Marine $54,743
Police $12,689
Public Works $155,544
Total $226,840
On October 22, 2019, the City Council approved amendments to the current Terms and Conditions for ALBE Skilled and General Basic Unit. Included in the amendment was a 2 percent general salary increase, retroactive to October 1, 2018. The FY 19 cost impact for the retroactive 2 percent amendment is $226,840 in the General Fund Group and $960,000 All Funds as shown in Attachment C. The General Fund Group cost is offset by funds set aside for this purpose. Costs to the other funds will be absorbed within current FY 19 appropriations.
62. Increase appropriations in the General Fund Group in the Citywide Activities Department by $1,456,056 to record unallocated Council District Priority Funds, offset by funds transferred from the Capital Projects Fund Group due to conversion of
legacy financial system (FAMIS) to the new financial system (Munis).
When converting to the new financial system (Munis), it was necessary to transfer the unallocated Council District Priority Funds (also known as Divide-by-Nine Funds) from the Capital Projects Fund Group to the General Fund Group in the Citywide Activities Department, where it will be more efficiently managed in the new financial system. This is a technical appropriations adjustment and does not change any City Council authorized funding allocation. This appropriation increase is offset by funds transferred from the Capital Projects Fund Group. The transfer amounts listed in the table below by Council District reflect balances as of the end of FY 18 and do not reflect the current available balances.
City Council District
Unallocated District
Priority Funds*
District 1 $ 330,828
District 2 $ 86,133
District 3 $ 77,289
District 4 $ 288,581
District 5 $ 224,679
District 6 $ 260,756
District 7 $ 66,818
District 8 $ 101,818
District 9 $ 19,154
Total Unallocated District
$
Priority Funds
1,456,056
* These amounts reflect the balance as of the end of FY 18 and do
not reflect the current available balances by Council District.
63. Increase appropriations in the General Fund Group in the Citywide Activities Department by $10, 132,449, to fund City settlements, judgements and legal fees of McWilliams v City of Long Beach settlement, offset by release of reserve set aside for this purpose.
In 2018, the City agreed to settle the class action lawsuit McWilliams v City of Long Beach. The settlement required that the City provide refunds of telephone taxes collected between August 11, 2005 and December 19, 2008. Per the settlement, the City agreed to pay up to a maximum of $16.6 million. As of FY 19 year-end, $10,132,499 has been disbursed for costs related to the attorney fees, settlement administrator costs and refund claims, among other related costs. An increase of appropriation is requested to support these payments offset by a reserve fund created for this purpose. The total cost is not yet known, but will not exceed $16.6 million.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
ACTING CITY MANAGER