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HomeMy WebLinkAboutSupplemental - Questions from Mayor Varipapa Robin Roberts From: Jill Ingram Sent: Monday, September 24, 2018 5:14 PM Cc: Executive Team; csteele@rwglaw.com; Dana Engstrom Subject: RE: Question for Monday's Council Meeting BCC: CITY COUNCIL Please see staff's responses to Mayor Varipapa's questions below, and as always, please call if you would like to discuss further. Jill R. Ingram, City Manager City of Seal Beach -211 Eighth Street, Seal Beach, CA 90740 (562) 431-2527, Ext. 1300 For Information about Seal Beach, please see our city website: http://www.sealbeachca.gov NOTICE: This communication may contain privileged or other confidential information. If you are not the intended recipient of this communication, or an employee or agent responsible for delivering this communication to the intended recipient, please advise the sender by reply email and immediately delete the message and any attachments without copying or disclosing the contents. Thank you. From: Michael Varipapa [mailto:mikevaripapa@mac.com] Sent: Monday, September 24, 2018 8:24 AM To: Jill Ingram Cc: Robin Roberts Subject: Question for Monday's Council Meeting Hi- For Item A: Can you please provide info that shows "flat or declining City revenues"as stated in the resolution. Maybe the revenues from the past five or so years. The following table is a 5-year history of revenues and expenses: General Fund Revenues (1) Expenses Net 2018 30,153,770 31,576,297 (1,422,527) 2017 29,164,122 31,481,298 (2,317,176) 2016 29,156,735 30,167,737 (1,011,002) 2015 29,106,232 31,509,885 (2,403,653) 2014 29,319,041 28,723,153 595,888 1 Note (1) Revenues are inclusive of one-time receipts and transfers in. The revenue in the current fiscal year is primarily higher because of property tax and manufacturers' business license. Also, if revenue had kept up with inflation we would expect total revenue to be about $30.6 million in the fiscal year just ended on June 30, 2018. Additionally, although revenue was projected higher in 2018, the total fell short of the Revenue Budget by approximately $100,000. Also, how would BB "prevent cuts to paramedic services" - Aren't we obligated contractually for fire and paramedic services? Yes; however, if Measure BB does not pass and other new revenue sources are not obtainable, the City will be unable to afford the annual increases to contract charges. OCFA has indicated that in the event of the unfortunate circumstance that we cannot afford to pay for our contractual obligations,the only option is to reduce staffing levels, which would impact fire and paramedic response times. And how would BB help improve "fire and paramedic response times"? Also, isn't inflation reason? See revenue note above. For Item F: Please verify R. Goldberg's chart and confirm if we were still in a current contract that DCOR would be paying $9,694/month. What is the current fee? $8,965/month (DCOR) and $9,349/month (So Cal Holding). The reason that So Cal Holding's proposed monthly rate has increased is that they are requesting 7 additional parking spaces. Is our current rate frozen at the 2016 fee? Yes. If correct, can we get back pay and/charge a higher fee? The negotiation process resulted in the mutually agreed upon starting point for both contracts. It is important to note that DCOR has been paying for a generator to power the pier landing since the repairs were made from the fire. DCOR filed a claim for approximately $46,400 in April, which was denied by the City's insurance company. Thanks in advance. Mike Begin forwarded message: 2 From: Robert Goldberg <rgoldberg(a,live.com> Date: September 23, 2018 at 4:42:54 PM PDT To: "mikevaripapa@mac.com" <mikevaripapa@mac.com> Subject: Fw: Question for Monday's Council Meeting FYI...per our discussion From: Robert Goldberg<rgoldbergt live.com> Sent:Sunday, September 23, 2018 4:24 PM To: Ellery Deaton; Sandra Massa-Lavitt; Michael Varipapa;tmoore@sealbeachca.gov; ssustarsic@sealbeachca.gov Cc:Jill Ingram; Robin Roberts;vbeatley@sealbeachca.gov Subject:Question for Monday's Council Meeting Item F: Oil Boat Contracts As the staff report states, both of these contracts are renewals. The staff report does not state how much the current monthly fees are. In reviewing the two expired contracts, I found that they both had previous starting fees of$8500/month with an annual inflation escalator every August 1st based on the prior May-May change in the CPI index: Expected Contractual Monthly Fee as of August 1st Year May CPI Index % Increase DCOR Socal 2011 233.367 $8,500 2012 237.032 1.6% $8,633 2013 239.346 1.0% $8,718 $8,500 2014 243.362 1.7% $8,864 $8,643 2015 246.093 1.1% $8,964 $8,740 2016 249.554 1.4% $9,090 $8,863 2017 255.674 2.5% $9,312 $9,080 2018 266.148 4.1% $9,694 $9,452 Proposed $9,300 $10,725 Fee Why is the proposed fee for DCOR almost$400 less than what they should be paying now? What are the actual current monthly fees for both companies? 3