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HomeMy WebLinkAboutEmailed Comments from Robert GoldbergGloria Harper From: Robert Goldberg <rgoldberg@live.com> Sent: Sunday, June 13, 20214:37 PM To: Thomas Moore; Schelly Sustarsic; Mike Varipapa; Sandra Massa-Lavitt; Joe Kalmick Cc: Jill Ingram; Gloria Harper; Charles M. Kelly; Jeannette Andruss; Kelly Telford Subject: Questions for Council Meeting 6/14/21 (Open Session) Attachments: 6.14.21.Questions.Open Session.doc; Budget Resolutions.Change in Sections 1 & 2.pdf Dear Council and Staff, Please see the attached questions for this Monday's open session including the Budget public hearing. I have also attached one referenced pdf document. Thank you for your consideration and service, Robert Goldberg Open Session Questions & Comments for 6/14/21 from Robert Goldberg Item B: Demands on Treasury: Page 1, Check 19797, $287 to APLPD Holding Company for Services "5-9 to 6-8-2021." What services we are receiving? Page 5, Check 19831, $1144 to Dino Perugino for "Daily Vehicle Inspection Forms." What are these? Item J: Dixon Resources Parking Agreement: The Council first approved a two-year agreement in August 2017 with Dixon Resources paying a flat monthly rate of $8250. From August 2017 from through June 2019, 23 payments were made totaling $189,750. In July 2019, staff presented to Council a second $45,000 agreement for "On -Call Parking Support Services," and made clear that unlike the previous agreement, "The new agreement is strictly a time and material contract and will be billed accordingly." This second agreement was amended in October 2020 to increase its maximum total to $85,000. From August 2019 through March 2021, the City has been invoiced an average of $3429 per month for "time and material" (see chart below). Invoice Date Amount Invoice Date Amount Invoice Date Amount 8/31/2019 $3,968 3/31/2020 $1,919 10/31/2020 $9,360 9/30/2019 $4,856 4/30/2020 $1,119 11/30/2020 $4,788 10/31/2019 $2,923 5/31/2020 $1,063 12/31/2020 $2,385 11/30/2019 $2,808 6/30/2020 $2,863 1/31/2021 $1,920 12/31/2019 $1,470 7/31/2020 $6,723 2/28/2021 $4,556 1/31/2020 $1,196 8/31/2020 $4,423 3/31/2021 $3,161 Average $3,429 2/29/2020 $961 9/30/2020 $6,126 In January 2021, Dixon proposed to continue to provide parking support services beyond the June 2021 expiration of contract #2 on either flat monthly rate of $3750, or on a "time & materials" basis at the same hourly rates agreed to in 2019 (see Exhibit A in proposed agreement). Regarding "Option 2: Time & Materials," the proposal states that this approach would "ensure that the project is managed in the most cost-effective and efficient manner." Recommendation: Given that monthly expenditures over the last two years have been less than the proposed flat rate, and the likelihood that the demand for services should drop as projects are completed over the next three years, I would strongly agree with the consultant that continuing our current arrangement to pay for services on a time & materials basis would "ensure that the project is managed in the most cost-effective and efficient manner." Please continue this item to June 28th, and direct staff to return with an agreement that pays the consultant on a time & materials basis. Item L: Public Hearing on FY 21-22 Budget General Fund Revenues: Prior to the 5/25/21 Workshop, I inquired in writing as why the estimated actual revenues for FY 20-21 did not include the pier fire insurance check for $1,717,793 that was issued by the CJPIA on 3/8/21. During the 5/25/21 Workshop, Councilman Moore asked the same question, and was told that the revenue "run date" for the May preliminary budget was done prior to receipt of the check. Tonight's staff report states on page 2 that final proposed budget was updated with revenue estimates based on actual receipts through May. However, the receipt of $1,717,793 is still not included in the final proposed budget. Consequently, many important budget figures are consequently underestimated by $1.72 million. These include (on just page 56 alone) Projected FY 20-21 Other Revenue, Total Revenues, Net Revenues, Ending Fund Balance, Unassigned Fund Balance, and Total Fund Balance, and by carry-over, Proposed FY 21-22 Beginning Fund Balance, Ending Fund Balance, Unassigned Fund Balance, and Total Fund Balance. Of all of these underestimated figures, the one of most significance to Council decision-making is the Proposed FY 21-22 Unassigned Fund Balance. The figure presented in the final budget of $2,815,176 (7.6% of Operating Expenses) should be $4,532,969 (12.2% of Operating Expenses). The higher figure reflects a much healthier status of our "discretionary" reserves—those that are available for expenditure now on projects or other one-time expenditures of the Council's choosing. Why does the FY 20-21 Estimated Actual for Liability Insurance Reimbursement on page 28 continue to show .$0? Budget Resolution: The budget adoption resolution last year (#7048) contained undiscussed changes to Sections 1 & 2 that significantly broadened the City Manager's historical authority to make transfers between "functions and programs." New language was added to Section 2 to authorize more extensive transfers "between any item, account, program, accounts, departments, or fund" (see attached pdf). The latter authority to transfer money between funds was clearly novel as, historically, an appropriation limit for each fund (34 funds in FY 19-20) had been listed in Section 1 of previous resolutions (see attached pdf). However, with the Council's granting (again with no discussion) the City Manager new authority to transfer money between funds as she sees fit, the traditional listing of fund -specific appropriation limits was no longer applicable. Theoretically, money can even be transferred from the Water or Sewer Funds into the General Fund without violating the newly worded Resolution. However, this authority runs counter the City's Budget Polices on Budget Transfers which state (budget page 13) that "Transfers of appropriations between funds ... are considered budget amendments and must be authorized by the City Council." Therefore, reference to transfers between funds must be removed from Section 2 of the Resolution. Recommendations: 1) Delete the reference to transfers between funds from Section 2 of the Resolution. 2) Add a listing of appropriation limits for each Fund to Section 2. btU HUN I. i rat certain aocurnent entitled "fifty of Sea[... > Mach. ;Fiscal Year .... .................. 2019-2020 Operating Budget", a. copy of which is on file in the offi `' fae City Clerk and on the City's website, which may hereafter be amended by the Council, is hereby approved as the operating budget for the City of Seat Beach f the Fiscal Year 2019-20 29. l eain in ';;> 1 2019 and ending Jane 34, 2020. he following rim stews the appropnatlQns ::dry"i c !und., Fol' !►PPrypritinrr'�und 1� �4 LI �f FVn-sin Asset Forfeiture - State Ar Quality.Improvement Asset Fitere - Federal Appropriations 1.04, 800 2,611,500 6,994 7Q© 40,000 1 i '500 ..... 4 025-000 f 126,200 ^rin ri^� i ... ............ ... .............. . .............. .. .. ............ . ............... . . .............. ... �"� �-�� Resolution 6929 SECTION 2. Appropriations inAhe amount not to exceed $69,102,300 are authorized for the pure se of harrying on the business of the City. The City Manager is hereby authorized�to make appropriation transfers within and between functions and programs, in accordance with Fiscal Policy, as long as such transfers do not increase the adopted annual budget appropriations. SECTION 3. All encumbrances from FY 2018-2019 are re -appropriated for continued use in FY 2019-2020. SECTION 4. The City Council -hereby adopts the 5 -Year Capital Improvement Program for the City of Seal Beach, and approves the Capital improvement Program Budget for the fiscal year commencing July 1. 2019 and ending June 30, 2020, All capital project appropriation balances from FY 2018-2019 shall be carried forward for use in FY 2019-2020. SEC 1 ION S. Per the City's Municipal Code Section 3.20, Purchasing System, Section 3.20.005, the City Council hereby authorizes the City Manager to delegate spending authority to Department Heads. Other than the Director of Public Works and the Director of Finance!City Treasurer this authority shall not exceed $15,000. For the Director of Public Works thy; limit is established per the City's Charter Section 1010. For the Director of Finance0ty Treasurer. other than for Finance Department expenditures which is set at $15,000, there is additional authority to authorize purchases for the other Department Heads up to the City Manager's established signing authority - SECTION 6- The City Council hereby establishes an appropriations limit of $31,209.347 for fiscal year 2019-2020, in full compliance with Article XIIIB of the State Constitution. PASSED, APPROVED, AND AUaP1 ED by the Seal Beach City Council at a regular meeting held on 24"' day of June 2019 by the following vote: AYES: Council FAlembers: Kalmick, Massa-t_avitt. Moore, Surstarsic, Varipapa NOES: Council Members: None ABSENT: Council Members: Nore ABSTAIN: Council Members: Nene Thomas Moore, Mayer RESOLUTION NUMBER 7048r 6/zzj t,,, A RESOLUTION OF THE SEAL BEACH CITY COUNCIL ADOPTING THE FISCAL YEAR 2020-21 OPERATING AND CAPITAL IMPROVEMENT BUDGET, SETTING THE APPROPRIATION LIMIT FOR FISCAL YEAR 2024-21, APPROVING THE PREVIOUSLY ADOPTED FISCAL YEAR 2015-20 COST RECOVERY SCHEDULE TO BE USED FOR FISCAL YEAR 2020-71 RECITALS A. On May 28, 2020 and Mune 04, 2020, the City Council conducted budget workshops to provide an opportunity to the public to cornment on the Proposed Fiscal Year 202.0-21 Operating and Capital Improvement Budget. B. Pursuant to Seal Beach City Charter Article X, the City Council held a auly noticed public hearing on June 22, 2020 to consider adopting the Fiscal Year 2020-21 Operating and Capital Improvement Budget. Copies of the proposed budget have been available for inspection by the public in the City Clerk's Office and on the City's website at least 10 days prior to the public hearing. C. On November 6, 1970, the voters of California added Article }Cil! B to the State Constitution placing various limitations on the appropriations of the State and local governments. Article X111 B provides that the appropriations limit for the Fiscal Year 2020-21 shall not exceed the appropriations limit for the prior year adjusted for the change in the cost of liv:ng and the c'iange in population. The proposed appropriations of $23.713;400 does not exceed the appropriations limit for Fiscal Year 2020-21 of $32,237,487, which has been adjusted for the change in the cost of living and the change in popuiation. D. At the duly noticed workshops and the public hearing held on June 22; 2020, the City COWIGil provided an opportunity for the public to comment on the Proposed Fiscal Year 2020-21 Operating and Capital Improvement Budget and the appropriations limit. NOW THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE. SECTION 1 That certain document entitled `City of Seal Beach Fiscal Year 2020-2021 Operating and Capital Improvement Budget", a copy of which is on file in the office of the City Clerk and available on the City's website at ht p5:�lwww.sealbeachca. oviDe artrnentslFinancelBud et, which may hereafter be amended by the Council, is hereby approved as the operating and capitaF improvement budget for the City of Seal Beach for the Fiscal Year 2020-21,. beginning July 1, 2020 and ending June 30, 2021. [L_1 ell L r At'r'r:�t'� E SECTION 2- Appropriations in the amount not to exceed $03,252,203 are authorized for the purpose of carrying on the business of the City. The Q.lt c Manager is hereby authorized to make appropriation transfers within andLr p9 r7 between any item, account, program, department or fund, in accordance with t � �� Fiscal Policy. as long as such transfers do not increase the adopted annual budget appropriations. SECTION 3. The Operating Budget for Fiscal Year 2020-21 shall be ccrsidered amended upon the close of Fiscal Year 2019-20 to include and re -appropriate ail encumbrances carried forward. SECTION 4- The Capital improvement Program Budget for Fiscal Year 2020-21 shall be considered amended upon the close of Fiscal Year 2019 20 to include the re -appropriated funds for all previously approved capital projects that have not been completed. SECTION 5. 1 he City Council hereby authorizes the City Manager to issue salary adjustments of 2% as prov'ded in applicable Me-noranda of understanding, effective on July 1, 2020, for those employees in the following employee groups - Mid -Management and Confidential-, Seal Beach Supervisors and Professionals Association; Orange County Employccs Association; and Seal Beach Marine Safety Management Association; and a 0.7% salary adjustment for Executive Management employees representing CPI as of April 2020 SECTION 6. [he City Council hereby approves the Financial and Budget policies in the Pioposed Fiscal Year 2020-21 Operating and Capital Improvement Budget. SECTION 7. Pursuant to Seal Beach Municipal Code Section 3.20-005. the City Council hereby authorizes the City Manager to delegate spending authority to Department Heads. Other than the Urectur of Public Works and the Director of Finance/City Treasurer this authority shall not exceed $15,000 per purchase or contract. For the Director of Public Works the limit is established per the City's Charter Section '1010. For the Director of Finance!City Treasurer, other than for Finance Department expenditures which is set at $15.000. there is additional authority to authorize purchases for City Departments up to the City Manager's established contract Signing authority.