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HomeMy WebLinkAboutAgenda Packet_04082024     A G E N D A MEETING OF THE CITY COUNCIL Monday, April 8, 2024 ~ 7:00 PM City Council Chambers 211 Eighth Street Seal Beach, California SCHELLY SUSTARSIC MAYOR Fourth District LISA LANDAU MAYOR PRO TEM Third District   JOE KALMICK COUNCIL MEMBER First District                                                           THOMAS MOORE COUNCIL MEMBER Second District     NATHAN STEELE COUNCIL MEMBER Fifth District     This Agenda contains  a brief general description of  each item  to be considered. No action or discussion shall be taken on any item not appearing on the agenda, except as otherwise provided by law. Supporting documents, including agenda staff reports, and any public writings distributed by the City to at least a majority of the Council Members regarding any item on this agenda are available on the City’s website at www.sealbeachca.gov.   City  Council  meetings  are  broadcast  live  on  Seal  Beach  TV3  and  on  the  City's  website (www.sealbeachca.gov). Check  the  SBTV3  schedule  for  the  rebroadcast  of  meetings.  The meetings are also available on demand on the City’s website (starting 2012).   In  compliance with  the Americans with  Disabilities Act of 1990, if  you require disability related modifications or accommodations, including auxiliary aids or services to attend or participate in the City  Council  meeting, please  call  the  City  Clerk's  office  at  (562) 431-2527  at  least 48 hours prior to the meeting. CITY COUNCIL NORMS:                               Adopted on June 12, 2023 •Maintain a citywide perspective, while being mindful of our districts. •Move from I to we, and from campaigning to governing. •Work together as a body, modeling teamwork and civility for our community. •Assume good intent. •Disagree agreeably and professionally.  •Utilize long range plans to provide big picture context that is realistic and achievable. •Stay focused on the topic at hand.  Ensure each member of Council has an opportunity to speak. •Demonstrate respect, consideration, and courtesy to all. •Share information and avoid surprises. •Keep confidential things confidential. •Respect the Council/Manager form of government and the roles of each party. •Communicate concerns about staff to the City Manager; do not criticize staff in public.                                                                                          CIVILITY PRINCIPLES: Treat everyone courteously; Listen to others respectfully; Exercise self-control;  Give open-minded consideration to all viewpoints;  Focus on the issues and avoid personalizing debate; and, Embrace respectful disagreement and dissent as democratic rights, inherent components of an inclusive public process, and tools for forging sound decisions.  FOLLOW US ON FACEBOOK FOLLOW US ON INSTAGRAM FOLLOW US ON TWITTER/X                                       @CITYOFSEALBEACH                                                             @CITYOFSEALBEACHCA                                    @SEALBEACHCITYCA @SEALBEACHRECREATION&COMMUNITYSERVICES       @SEALBEACH_LIFEGUARD @SEALBEACHPOLICEDEPARTMENT                                    @SEALBEACHPOLICE                                                                                                   @SEALBEACHPUBLICWORKS                                                                                                   @K9YOSA                                                                                                   @K9.SAURUS CALL TO ORDER PLEDGE OF ALLEGIANCE COUNCIL ROLL CALL ORAL COMMUNICATIONS At this time members of the public may address the Council regarding any items within the  subject  matter jurisdiction  of the City Council. Pursuant  to the Brown Act, the Council  cannot  discuss  or  take  action  on  any  items  not  on  the  agenda  unless authorized  by law. Matters not on the  agenda may, at the  Council' s  discretion, be referred to the City Manager and placed on a future agenda.   Those members of the public  wishing to speak  are asked to  come forward to  the microphone and state their name for the record. All speakers will be limited to a period of five (5) minutes. Speakers must address their comments only to the Mayor and entire City Council, and not to any individual, member of the staff or audience. Any documents for review should be presented to the City Clerk for distribution. Speaker cards will be available at the Clerk’s  desk for  those wishing  to sign up to address the Council, although the submission of a speaker card is not required in order to address the Council. Supplemental Communication from Mayor Sustarsic Supplemental Communications from Council Member Moore Emailed and Public Comments from Matthew Terry Public Comments received from Eplanet Thunderstriker Supplemental Communicaitons from Mayor Pro Tem Landau APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS ORDINANCES By motion of the City Council this is the time to notify the public of any changes to the agenda and /or rearrange the order of the agenda. PRESENTATIONS / RECOGNITIONS •National Public Safety Telecommunicators Week Proclamation – April 14 – 20, 2024 •Introduction of New Full Time Employees CITY ATTORNEY REPORT Nicholas Ghirelli, City Attorney    CITY MANAGER REPORT Jill R. Ingram, City Manager    COUNCIL COMMENTS General Council Member comments and reporting pursuant to AB 1234. COUNCIL ITEMS – None CONSENT CALENDAR Items on the consent calendar are considered to be routine and are enacted by a single motion with the exception of items removed by Council Members. A.Approval of the March 25, 2024, City Council Minutes - That  the  City Council approve the minutes of the Closed Session and Regular City Council meetings held on March 25, 2024.   B.Demands on City Treasury (Fiscal Year 2024) April 8, 2024 - Ratification.   C.Council Appointment to the Seal Beach Cable Communications Foundation – District Five - It is at the request of Council Member Steele that the City Council appoint Richard (Eric) Nelson to the Seal Beach Cable Communications Foundation, as a representative for District Five.   D.Approving and Authorizing the Execution and Recordation of a Temporary Construction Easement Agreement with Old Ranch Country Club, LLC - That  the City Council adopt Resolution 7507: 1. Approving a Temporary Construction Easement Agreement with Old Ranch Country Club, LLC; and, 2. Authorizing  the  City  Manager  to  Execute  the  Temporary Construction  Easement Agreement  and to  cause the  executed  Temporary Construction Easement to be recorded at the Orange County Clerk-Recorder.   ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC HEARING – None UNFINISHED / CONTINUED BUSINESS – None NEW BUSINESS E.Fiscal Year 2023-2024 Mid-Year Budget Update and Consideration of Proposed Amendment to Fiscal Year 2023-24 Budget - That  the  City Council receive and file Fiscal Year 2023-2024 Mid-Year Budget Update and adopt Resolution 7508 to approve Budget Amendment BA #24-10-01.   ADJOURNMENT Adjourn the City Council to Monday, April 22, 2024, at 5:30 p.m. to meet in closed session, if deemed necessary. Questions for April 8, 2024 City Council Meeting Sustarsic Warrants: EFT # 3504 3/25/2024 AKM Consulting Engineers $21,754.00 Stormwater Treatment Feasibility Study 1 SSMP Audit 1/29 – 3/1/24 What are these for? Payment for Stormwater Treatment Feasibility Study is work related to OCTA/Environmental Clean Up Preparation for Grant under the Revitalization Fund (CIP BG2401). SSMP Audit payment is for the Sewer System Management Plan audit, pursuant to the Statewide Sewer Systems General Order adopted by the State Water Resources Control Board. EFT # 3515 3/25/2024 Performance Pipeline Technologies $ 1,787.50 Emergency Cleaning of Pump Station 35 & What is this for? Payment is related to the emergency cleaning and wet well debris removal at Sewer Pump Station #35. EFT # 3518 3/25/2024 Sherry Johnson $ 4,087.50 Consulting services 1/30/24 - 2/29/24 What are these services? The consultant is engaged on an as-needed basis to support the implementation of Incode, the Enterprise Resource Planning system. Specifically, their focus is on integrating previously unimplemented Human Resources and Finance modules and other support services. This ensures a streamlined and efficient operation of the ERP system in these crucial areas. # 29266 3/22/2024 Silsby Strategic Advisors , Inc $ 2,550.00 Strategic Support Services 2/2024 What are these services for? Payment is for work related to the San Gabriel River Trash Mitigation Initiative, and Advanced Clean Fleet Zero-Emission Vehicle compliance extension. # 29268 3/22/2024 Stantec Consulting Services Inc $61,449.13 EIR 1/2024; Consulting for WT2103 What are these services for? Payment in the amount of $359.38 is related to the CIP WT2103 LCWA Watermain Lining Project design services. Payment in the amount of $61.089.75 is related to the General Plan Zoning Code Update Environmental Impact Report. Questions for April 8, 2024 City Council Meeting Sustarsic Warrants: EFT # 3504 3/25/2024 AKM Consulting Engineers $21,754.00 Stormwater Treatment Feasibility Study 1 SSMP Audit 1/29 – 3/1/24 What are these for? Payment for Stormwater Treatment Feasibility Study is work related to OCTA/Environmental Clean Up Preparation for Grant under the Revitalization Fund (CIP BG2401). SSMP Audit payment is for the Sewer System Management Plan audit, pursuant to the Statewide Sewer Systems General Order adopted by the State Water Resources Control Board. EFT # 3515 3/25/2024 Performance Pipeline Technologies $ 1,787.50 Emergency Cleaning of Pump Station 35 & What is this for? Payment is related to the emergency cleaning and wet well debris removal at Sewer Pump Station #35. EFT # 3518 3/25/2024 Sherry Johnson $ 4,087.50 Consulting services 1/30/24 - 2/29/24 What are these services? The consultant is engaged on an as-needed basis to support the implementation of Incode, the Enterprise Resource Planning system. Specifically, their focus is on integrating previously unimplemented Human Resources and Finance modules and other support services. This ensures a streamlined and efficient operation of the ERP system in these crucial areas. # 29266 3/22/2024 Silsby Strategic Advisors , Inc $ 2,550.00 Strategic Support Services 2/2024 What are these services for? Payment is for work related to the San Gabriel River Trash Mitigation Initiative, and Advanced Clean Fleet Zero-Emission Vehicle compliance extension. # 29268 3/22/2024 Stantec Consulting Services Inc $61,449.13 EIR 1/2024; Consulting for WT2103 What are these services for? Payment in the amount of $359.38 is related to the CIP WT2103 LCWA Watermain Lining Project design services. Payment in the amount of $61.089.75 is related to the General Plan Zoning Code Update Environmental Impact Report. 1. What are OTHER TAXES? Can you provide a breakdown of these by specific item / revenue amount? 2. Can you provide a breakdown of CHARGES FOR SERVICES? Charges for Services are included by line item in the FY 2023-24 Budget on Page 48, attached. 3. Can you provide a breakdown of OTHER REVENUES? Other revenues are included by line item in the FY 2023-24 Budget on Page 49, attached. 4. Can you break down for expenses the following by department w/descriptions: a. OTHER PAY AND BENEFITS b. MAINTENANCE AND OPERATIONS Each department breakdown by expenditures for the above categories are included in the FY 2023-24 Budget book by department and program including descriptions. For example: City Council Budget Page 86, City Manager Budget Page 93, Finance Budget Page 117, and Policed Field Services Budget Page 139, each attached. The full budget can be found at this link (401 pages): https://www.sealbeachca.gov/Portals/0/Documents/Finance/ADOPTED%20BUDGET% 20FY%2023-24%20(for%20website).pdf?ver=2023-08-22-111813-357 Also if you can identify one-time event vs. ongoing in these above that would be helpful. An example of a one-time event for Maintenance and Operations: An example of a one- time event would be at the March 25 Council meeting, Item J, Ratifying the Declaration of Emergency, Approval of Emergency First Street Parking Lot Repair. This repair was not a budgeted item. The City budgets for ongoing regular maintenance. For Other Pay and Benefits: the Police Department had one-time movie revenue of approximately $100,916 and had offsetting Overtime of $65,608. The Police department has ongoing budgeted overtime expenditures for emergencies as well as the Seal Beach Car Show, The Turkey Trot, and the Holiday Parade are a few examples. Other Taxes FY 2023-24 Budget 40600 - BUSINESS LICENSE 650000 40700 - EXCISE TAX 800 40800 - BARREL TAX 200000 REVENUE DETAIL BY ACCOUNT/BY FUND - ALL FUNDS Amended Estimated Revenue Account Actual Budget Actual Budget Source Number FY 2021-22 FY 2022-23 FY 2022-23 FY 2023-24 FY 2023-2024 GENERAL FUND, CONTINUED Charges for Services Leisure Program Fees 101-000-0000-43010 (348)$-$-$-$ Recreation Service Charges 101-000-0000-43020 2,474 4,000 4,000 4,000 Recreation/Lap Swim Passes 101-000-0000-43060 676 700 700 700 Alarm Fees 101-000-0000-43130 19,175 30,000 30,100 30,000 Planning Fees 101-000-0000-43140 65,409 45,000 80,000 80,000 Plan Check Fees 101-000-0000-43150 318,887 210,000 325,000 260,000 Admin Fee - Construction/Demo 101-000-0000-43160 3,019 3,000 2,400 1,800 Transportation Permit Fees 101-000-0000-43190 1,360 2,000 1,000 1,500 Bus Sheltering Advertising 101-000-0000-43200 26,100 48,600 48,600 48,600 Film Location Fees 101-000-0000-43320 3,925 3,500 5,000 4,000 Sale of Printed Material 101-000-0000-43330 9,362 10,000 9,000 9,000 Special Events 101-000-0000-43340 7,253 6,000 6,000 6,000 Charging Station Revenue 101-000-0000-43350 3,785 4,000 6,000 6,000 Returned Check Fee 101-000-0000-43380 75 200 100 100 Reimburse for Misc Service 101-000-0000-43390 65,952 19,000 40,000 30,000 Late Charge 101-000-0000-43450 662 - 5,000 3,000 Election Fees 101-120-0013-43360 - 300 300 300 Traffic Report - Electronic 101-210-0023-43260 22,047 20,000 18,000 18,000 Booking Fees 101-210-0024-43290 425 - - - Reimburse for Miscellaneous Service 101-210-0024-43390 39 - 40 - Parking Meters 101-210-0025-43300 155,839 116,000 300,000 349,100 Recreation Facilities Rent 101-230-0073-43050 - 4,000 - - Recreation/Lap Swim Passes 101-230-0073-43060 78,475 68,000 68,000 68,000 Swimming Lessons 101-230-0073-43070 61,683 85,000 85,000 85,000 Swimming Pool Rentals 101-230-0073-43080 33,040 36,000 36,000 36,000 Plan Check Code Compliance 101-300-0030-43170 9,759 3,000 1,000 1,000 Plan Check Energy Code Com. 101-300-0030-43180 14,926 4,000 8,000 6,000 Special Services Fee 101-300-0031-43210 15,655 6,000 6,000 6,000 Administration Citation 101-300-0031-43310 100 500 1,000 500 Senior Nutrition Transportation 101-400-0016-43370 3,056 4,800 1,000 1,000 Sport Fees 101-400-0071-43030 15,199 13,000 16,000 15,000 Leisure Program Fees 101-400-0072-43010 222,182 185,000 200,000 185,000 Recreation Cleaning Fees 101-400-0072-43040 4,485 5,000 4,000 4,000 Recreation Facilities Rent 101-400-0072-43050 129,483 120,000 107,000 105,000 Tennis Center Services 101-400-0074-43090 374,242 300,000 330,000 280,000 Pro Shop Sales 101-400-0074-43100 6,596 16,000 8,000 5,000 DPW Permit Application Fees 101-500-0042-43220 27,568 22,000 25,000 25,000 Engineering Inspection Fee 101-500-0042-43230 12,755 10,000 8,000 8,000 Engineering Plan Check 101-500-0042-43235 44,482 40,000 45,000 40,000 Engineering Permit Fee 101-500-0042-43240 4,894 4,000 6,000 5,000 Street Sweeping Services 101-500-0044-43110 51,452 54,000 54,000 54,000 Tree Trimming Services 101-500-0049-43120 39,704 39,000 39,000 39,000 Refuse Services 101-500-0051-43250 1,404,009 1,400,000 1,300,000 1,400,000 Reimburse for Miscellaneous Service 101-500-0051-43390 62,700 56,000 50,000 56,000 Total Charges for Services 3,322,561$ 2,997,600$ 3,279,240$ 3,276,600$ Fines and Forfeitures Municipal Code Violations 101-000-0000-44100 42,306$ 4,000$ 5,200$ 4,000$ Vehicle Code Violations 101-000-0000-44200 88,608 80,000 85,000 85,000 Animal Citations 101-210-0036-44400 - 27,000 - 9,100 Unclaimed Property 101-000-0000-44300 9,975 5,000 7,500 7,000 48 REVENUE DETAIL BY ACCOUNT/BY FUND - ALL FUNDS Amended Estimated Revenue Account Actual Budget Actual Budget Source Number FY 2021-22 FY 2022-23 FY 2022-23 FY 2023-24 FY 2023-2024 GENERAL FUND, CONTINUED Parking Citations 101-210-0025-44400 1,730,339 1,801,500 1,600,000 1,900,000 1,871,228$ 1,917,500$ 1,697,700$ 2,005,100$ Use of Money and Property Interest on Investments 101-000-0000-45100 273,620$ 400,000$ 400,000$ 420,000$ Unrealized Gain/Loss on Investment 101-000-0000-45200 (2,143,300) - - - Rental of Property 101-000-0000-45300 46,596 25,000 34,000 34,000 Rental of Property - Telecom 101-000-0000-45400 224,982 250,000 225,000 250,000 Total Use of Money and Property (1,598,102)$ 675,000$ 659,000$ 704,000$ Transfers Sewer Overhead 101-000-0000-46800 293,500$ 293,500$ 293,500$ 293,500$ Water Overhead 101-000-0000-46900 440,000 440,000 440,000 440,000 Transfer In - Operational 101-000-0000-49200 106,600 191,200 191,200 191,200 Total Transfers 840,100$ 924,700$ 924,700$ 924,700$ Other Revenues Fuel Royalties 101-000-0000-47000 24,406$ 13,000$ 20,000$ 20,000$ Damaged Property 101-000-0000-47050 37,667 15,000 19,800 20,000 Insurance Reimbursement 101-000-0000-47100 3,000 - - - Settlement/Court Judgement 101-000-0000-47500 - - 974,039 - Sale of Property Proceeds 101-000-0000-47850 - - - - Sale of Surplus Property 101-000-0000-47900 27,442 10,000 1,000 1,000 Cash Over/Short 101-000-0000-47950 32 - - - Miscellaneous Revenue 101-000-0000-47995 14,871 3,000 1,300 1,300 Miscellaneous Revenue 101-210-0021-47995 1,243 - 75 - Subpoena Fees 101-210-0022-47300 2,627 1,000 1,800 1,500 Citation Sign Off 101-210-0023-47200 159 200 2,000 200 Vehicle Release 101-210-0023-47250 54,988 120,000 50,000 50,000 Miscellaneous Revenue 101-210-0023-47995 229 200 300 200 Subpoena Fees 101-300-0030-47300 - - 275 - Total Other Revenues: 166,664$ 162,400$ 1,070,589$ 94,200$ Total General Fund - 101 44,545,591$ 40,746,400$ 42,173,210$ 42,154,700$ SPECIAL REVENUE FUNDS Leased Facilities - 102 Rental of Property 102-150-0802-45300 156,758$ 160,900$ 100,000$ 100,000$ Total Leased Facilities - 102 156,758$ 160,900$ 100,000$ 100,000$ Special Projects - 103 AB109 103-210-0223-47418 479$ 2,400$ -$-$ 5K/10K - Marine Safety 103-230-0228-47405 2,300 - 3,300 - Plan Archival - Building 103-300-0231-47406 9,177 6,000 8,500 7,000 General Plan - Building 103-300-0231-47412 74,380 55,000 70,000 60,000 GIS - Building 103-300-0231-47416 50,830 45,000 45,000 45,000 Technical Training 103-300-0231-47419 3,204 2,000 3,000 2,000 Automation 103-300-0231-47421 2,640 - - - Business License ADA Fee 103-300-0231-47422 9,230 5,000 - - 5K/10K - Recreation 103-400-0270-47423 - 10,000 - - Plan Archival - Engineering 103-500-0242-47407 6,907 6,000 2,000 2,000 Engineering Plan Check - I405 103-500-0242-47413 455 - - - Resource/recycling/recovery 103-500-0242-47417 6,390 - 33,074 6,000 49 CITY COUNCIL PROGRAM: 0010 City Council FUND: 101 General Fund Amended Estimated Account Actual Budget Actual Budget Description Number FY 2021-22 FY 2022-23 FY 2022-23 FY 2023-24 PERSONNEL SERVICES Part-Time Salaries 101-100-0010-50030 34,964$ 32,400$ 32,400$ 32,400$ PARS Retirement 101-100-0010-50540 421 400 421 421 Medicare Insurance 101-100-0010-50570 470 500 470 476 TOTAL PERSONNEL SERVICES 35,855$ 33,300$ 33,291$ 33,297$ MAINTENANCE AND OPERATIONS Council Discretionary - District 1 101-100-0010-51101 -$ 40,000$ 40,000$ 20,000$ Council Discretionary - District 2 101-100-0010-51102 29,622 50,288 50,288 20,000 Council Discretionary - District 3 101-100-0010-51103 633 46,252 46,252 20,000 Council Discretionary - District 4 101-100-0010-51104 17,560 22,440 22,440 20,000 Council Discretionary - District 5 101-100-0010-51105 701 39,299 39,299 20,000 Office Supplies 101-100-0010-51200 645 1,000 1,000 1,000 Memberships and Dues 101-100-0010-51230 11,485 19,000 25,437 25,437 Training and Meetings 101-100-0010-51240 1,482 11,000 11,000 11,000 Contract Professional 101-100-0010-51280 - 27,900 30,800 27,900 Special Departmental 101-100-0010-52200 25 3,000 3,000 3,000 TOTAL MAINTENANCE AND OPERATIONS 62,154$ 260,179$ 269,516$ 168,337$ TOTAL EXPENDITURES 98,009$ 293,479$ 302,807$ 201,634$ Explanation of Significant Accounts: Memberships and Dues 101-100-0010-51230 Training and Meetings 101-100-0010-51240 Special Departmental 101-100-0010-52200 Contract Professional 101-100-0010-51280 FY 2023-2024 Southern California Association of Government, League of California Cities, Orange County Council of Governments, and Miscellaneous Meetings and training include, but not limited to annual training conferences, mileage, and general meetings of the City Council Miscellaneous events Strategic Workshops, Media Training, and Miscellaneous 86 CITY ANA PROGRAM: 0011 City Manager FUND: 101 General Fund Amended Estimated Account Actual Budget Actual Budget Description Number FY 2021-22 FY 2022-23 FY 2022-23 FY 2023-24 PERSONNEL SERVICES Regular Salaries - on-S orn 101-110-0011-50020 373,083$ 358,000$ 370,025$ 365,105$ Part-Time Salaries 101-110-0011-50030 9,456 - - - Overtime - on-S orn 101-110-0011-50060 - - 369 - Overtime - Part-Time 101-110-0011-50070 - - - - Auto Allo ance 101-110-0011-50130 5,546 5,500 5,580 5,250 Cell Phone Allo ance 101-110-0011-50140 2,418 1,500 1,498 1,425 Cafeteria Ta able 101-110-0011-50170 1,558 700 957 888 Comptime uy Payout 101-110-0011-50180 541 - - 1,100 acation uy Payout 101-110-0011-50190 23,071 19,300 20,569 23,781 ealth and Wellness Program 101-110-0011-50220 1,493 1,400 2,118 1,308 Tuition Reimbursement 101-110-0011-50500 - - 5,742 12,000 Deferred Compensation 101-110-0011-50520 19,677 16,900 19,703 16,592 P RS Retirement 101-110-0011-50530 138,110 140,600 131,213 127,173 Medical Insurance 101-110-0011-50550 32,450 27,700 28,169 29,856 AFLAC Insurance - Cafeteria 101-110-0011-50560 381 300 254 - Medicare Insurance 101-110-0011-50570 6,263 5,800 6,032 6,005 Life and Disability 101-110-0011-50580 2,370 1,800 2,654 1,923 Fle ible Spending - Cafeteria 101-110-0011-50600 866 800 374 - TOTAL PERSONNEL SERVICES 617,282$ 580,300$ 595,257$ 592,406$ MAINTENANCE AND OPERATIONS Office Supplies 101-110-0011-51200 3,170$ 3,000$ 3,000$ 3,000$ Memberships and Dues 101-110-0011-51230 4,155 7,500 7,500 7,500 Training and Meetings 101-110-0011-51240 4,193 10,000 10,000 10,000 Contract Professional 101-110-0011-51280 21,650 35,000 15,000 35,000 Special Departmental 101-110-0011-52200 3,925 12,697 3,000 10,000 TOTAL MAINTENANCE AND OPERATIONS 37,093$ 68,197$ 38,500$ 65,500$ TOTAL EXPENDITURES 654,375$ 648,497$ 633,757$ 657,906$ Explanation of Significant Accounts: Memberships and Dues 101-110-0011-51230 Training and Meetings 101-110-0011-51240 Contract Professional Services 101-110-0011-51280 Special Departmental 101-110-0011-52200 Orange County City Managers Assoc , International City County Mgmt Assoc , CA City Mgmt , Assoc , CA Assoc of Public Information Officials, League of CA Cities, Public mployers Labor Relations Association, American Society for Public Admin, 3CMA, and MMASC League of California Cities, Orange County City Managers Assoc , International City County Management Association, California Association of Public Information Officials, California oint Po ers Insurance Authority, MMASC, and 3CMA Pop up City all, allo een, Christmas Parade, and Miscellaneous FY 2023-2024 Communication, Media Training, and Consultant Services 93 FINANC PROGRAM: 001 Finance FUND: 101 General Fund Amended Estimated Account Actual Budget Actual Budget Description Number FY 2021-22 FY 2022-23 FY 2022-23 FY 2023-24 PERSONNEL SERVICES Regular Salaries - on-S orn 101-140-0017-50020 369,063$ 446,200$ 447,176$ 472,599$ Part-Time Salaries 101-140-0017-50030 44,637 28,400 34,477 22,689 Overtime - on-S orn 101-140-0017-50060 2,861 1,000 377 1,000 Auto Allo ance 101-140-0017-50130 945 2,900 2,956 2,940 Cell Phone Allo ance 101-140-0017-50140 987 1,200 1,267 1,260 Cafeteria Ta able 101-140-0017-50170 9,149 7,600 8,343 6,139 Comptime uy Payout 101-140-0017-50180 798 - 4,544 - acation uy Payout 101-140-0017-50190 27,692 5,300 27,769 19,445 Sick uy Payout 101-140-0017-50200 4,622 - 380 - Medical Waiver 101-140-0017-50210 - - 2,932 2,145 ealth and Wellness Program 101-140-0017-50220 2,305 2,200 2,305 - Deferred Compensation 101-140-0017-50520 9,668 13,000 12,139 13,939 P RS Retirement 101-140-0017-50530 102,886 180,600 154,134 123,527 PARS Retirement 101-140-0017-50540 5 400 213 295 Medical Insurance 101-140-0017-50550 41,562 62,900 27,534 75,344 Medicare Insurance 101-140-0017-50570 6,784 7,300 7,035 7,848 Life and Disability 101-140-0017-50580 3,157 3,700 3,200 3,967 Fle ible Spending - Cafeteria 101-140-0017-50600 1,852 - 1,597 905 nemployment 101-140-0017-50610 8,364 - 2,700 - Retiree ealth Savings 101-140-0017-50620 3,187 - -- TOTAL PERSONNEL SERVICES 640,522$ 762,700$ 741,078$ 754,041$ MAINTENANCE AND OPERATIONS Office Supplies 101-140-0017-51200 5,786$ 5,000$ 5,600$ 5,500$ Public Legal otices 101-140-0017-51210 795 800 800 800 Memberships and Dues 101-140-0017-51230 670 900 1,840 1,840 Training and Meetings 101-140-0017-51240 747 3,200 2,975 11,500 Contract Professional 101-140-0017-51280 194,871 166,500 185,680 184,300 Special Departmental 101-140-0017-52200 12,815 17,700 14,625 18,175 TOTAL MAINTENANCE AND OPERATIONS 215,685$ 194,100$ 211,520$ 222,115$ TOTAL EXPENDITURES 856,207$ 956,800$ 952,598$ 976,156$ FY 2023-2024 117 POLIC PROGRAM: 0022 PD Field Ser ices FUND: 101 General Fund Amended Estimated Account Actual Budget Actual Budget Description Number FY 2021-22 FY 2022-23 FY 2022-23 FY 2023-24 PERSONNEL SERVICES Regular Salaries - S orn 101-210-0022-50010 5,143,610$ 5,137,200$ 5,289,837$ 5,208,722$ Part-Time Salaries 101-210-0022-50030 1,400 - - - Overtime - S orn 101-210-0022-50050 641,605 370,000 574,677 400,000 Special Pay 101-210-0022-50080 5,757 10,000 - - oliday Pay 101-210-0022-50120 341,209 349,900 312,956 350,562 Cell Phone Allo ance 101-210-0022-50140 13,117 11,400 11,734 15,818 niform Allo ance 101-210-0022-50150 57,505 45,600 47,698 45,570 Annual ducation 101-210-0022-50160 155,959 147,700 161,623 147,977 Cafeteria Ta able 101-210-0022-50170 46,254 25,300 29,453 21,946 Comptime uy Payout 101-210-0022-50180 8,785 18,800 18,800 8,757 acation uy Payout 101-210-0022-50190 91,913 78,600 99,671 56,111 Sick Payout 101-210-0022-50200 46,495 - 61,772 - Medical Waiver 101-210-0022-50210 64,785 18,400 21,127 - ealth and Wellness Program 101-210-0022-50220 - 900 1,700 850 Tuition Reimbursement 101-210-0022-50500 11,550 8,000 8,000 16,000 Deferred Compensation 101-210-0022-50520 8,093 8,300 8,109 8,731 P RS Retirement 101-210-0022-50530 2,605,022 2,895,000 2,897,392 3,028,040 PARS Retirement 101-210-0022-50540 44 - - - Medical Insurance 101-210-0022-50550 627,299 625,700 684,958 756,772 AFLAC Insurance - Cafeteria 101-210-0022-50560 5,992 6,000 5,718 661 Medicare Insurance 101-210-0022-50570 96,433 90,400 97,205 90,864 Life and Disability 101-210-0022-50580 35,429 36,200 38,807 37,062 Fle ible Spending - Cafeteria 101-210-0022-50600 3,086 4,200 3,776 1,662 TOTAL PERSONNEL SERVICES 10,011,344$ 9,887,600$ 10,375,013$ 10,196,102$ MAINTENANCE AND OPERATIONS Training and Meetings 101-210-0022-51240 48,779$ 50,000$ 49,500$ 55,000$ TOTAL MAINTENANCE AND OPERATIONS 48,779$ 50,000$ 49,500$ 55,000$ TOTAL EXPENDITURES 10,060,123$ 9,937,600$ 10,424,513$ 10,251,102$ Explanation of Significant Accounts: Training and Meetings 101-210-0022-51240 FY 2023-2024 on-POST and POST training, legislatively mandated, CA Peace Officers Assoc , OCSD, F I, CSTI, Command College, Tri-Counties Traffic, arcotics, ecutive Development, Se ual arrasement, Management Racial Profiling, Firearms, C P T , First Aid CPR, Role of the Chief, Performa Intervie - Interrogation, Domestic iolence, se of Force Driver Training, C Ops, Armorer, Reserve Coordinator Tactical Communications, ALPR, PO R, and Peer Support Program 139 Amended Estimated Revenue Account Budget MID YEAR Source Number FY 2023-24 FY 2023-24 Other Revenues Fuel Royalties 101-000-0000-47000 20000.00 20000.00 Damaged Property 101-000-0000-47050 20000.00 20000.00 Insurance Reimbursement 101-000-0000-47100 0.00 1543218.00 Settlement/Court Judgement 101-000-0000-47101 0.00 0.00 Sale of Surplus Property 101-000-0000-47900 1000.00 1000.00 Cash Over/Short 101-000-0000-47950 0.00 0.00 Miscellaneous Revenue 101-000-0000-47995 1300.00 1300.00 Miscellaneous Revenue 101-210-0021-47995 0.00 15.00 Subpoena Fees 101-210-0022-47300 1500.00 1300.00 Citation Sign Off 101-210-0023-47200 200.00 100.00 Vehicle Release 101-210-0023-47250 50000.00 55000.00 Miscellaneous Revenue 101-210-0023-47995 200.00 600.00 Subpoena Fees 101-300-0030-47300 0.00 0.00 Total Other Revenues:94200.00 1642533.00 Amended Estimated Revenue Account Budget MID YEAR Source Number FY 2023-24 FY 2023-24 Other Taxes Business License 101-000-0000-40600 650000.00 660000.00 Excise Tax 101-000-0000-40700 800.00 0.00 Barrel Tax 101-000-0000-40800 200000.00 160000.00 Total Taxes 850800.00 820000.00 Amended Estimated Revenue Account Budget MID YEAR Source Number FY 2023-24 FY 2023-24 Charges for Services Recreation Service Charges 101-000-0000-43020 4000.00 4000.00 Recreation/Lap Swim Passes 101-000-0000-43060 700.00 0.00 Alarm Fees 101-000-0000-43130 30000.00 25000.00 Planning Fees 101-000-0000-43140 80000.00 85000.00 Plan Check Fees 101-000-0000-43150 260000.00 300000.00 Admin Fee - Construction/Demo 101-000-0000-43160 1800.00 1800.00 Transportation Permit Fees 101-000-0000-43190 1500.00 1344.00 Bus Sheltering Advertising 101-000-0000-43200 48600.00 45900.00 Film Location Fees 101-000-0000-43320 4000.00 20000.00 Sale of Printed Material 101-000-0000-43330 9000.00 1000.00 Special Events 101-000-0000-43340 6000.00 6000.00 Charging Station Revenue 101-000-0000-43350 6000.00 6000.00 Returned Check Fee 101-000-0000-43380 100.00 100.00 Reimburse for Misc Service 101-000-0000-43390 30000.00 30000.00 Late Charge 101-000-0000-43450 3000.00 5000.00 Election Fees 101-120-0013-43360 300.00 300.00 Traffic Report - Electronic 101-210-0023-43260 18000.00 18000.00 Reimburse for Miscellaneous Service 101-210-0024-43390 0.00 0.00 Parking Meters 101-210-0025-43300 349100.00 80000.00 Recreation/Lap Swim Passes 101-230-0073-43060 68000.00 55000.00 Swimming Lessons 101-230-0073-43070 85000.00 90000.00 Swimming Pool Rentals 101-230-0073-43080 36000.00 45000.00 Plan Check Code Compliance 101-300-0030-43170 1000.00 2200.00 Plan Check Energy Code Com.101-300-0030-43180 6000.00 9000.00 Special Services Fee 101-300-0031-43210 6000.00 6000.00 Administration Citation 101-300-0031-43310 500.00 2000.00 Senior Nutrition Transportation 101-400-0016-43370 1000.00 3300.00 Sport Fees 101-400-0071-43030 15000.00 18000.00 Leisure Program Fees 101-400-0072-43010 185000.00 185000.00 Recreation Cleaning Fees 101-400-0072-43040 4000.00 5000.00 Recreation Facilities Rent 101-400-0072-43050 105000.00 105000.00 Tennis Center Services 101-400-0074-43090 280000.00 400000.00 Pro Shop Sales 101-400-0074-43100 5000.00 2600.00 DPW Permit Application Fees 101-500-0042-43220 25000.00 13838.00 Engineering Inspection Fee 101-500-0042-43230 8000.00 1592.03 Engineering Plan Check 101-500-0042-43235 40000.00 14808.00 Engineering Permit Fee 101-500-0042-43240 5000.00 3154.00 Street Sweeping Services 101-500-0044-43110 54000.00 49000.00 Tree Trimming Services 101-500-0049-43120 39000.00 37900.00 Refuse Services 101-500-0051-43250 1400000.00 1350000.00 Refuse Services - Delayed 101-500-0051-43251 0.00 Reimburse for Miscellaneous Service 101-500-0051-43390 56000.00 54000.00 Total Charges for Services 3276600.00 3081836.03 ABCDEGHFABCDFEHG 1 Gloria Harper From:Jill Ingram Sent:Monday, April 8, 2024 4:11 PM Cc:Executive Team; Brandon DeCriscio Subject:RE: Budget Update BCC: CITY COUNCIL In response to Lisa Landau’s question below regarding Item E (Mid-Year Budget Update), the unrealized parking revenue of $269,100 is for a reduction in parking meter revenue for the existing parking meters on Main Street from the adopted budget to anticipated year end. Any additional questions will be addressed following staff’s presentation tonight. Thank you, Jill Jill R. Ingram Jill R. Ingram, City Manager 211 Eighth Street, Seal Beach, CA 90740 (562) 431-2527 x 1300 Click here to read and subscribe to our City Manager Newsletter. View our: Shoreline Recreation Brochure Seal Beach follows Civility Principles by promoting courtesy, respectful listening, open mindedness, issue-focused debate, and embracing respectful disagreement and dissent as democratic rights and tools for sound decisions. For Information about Seal Beach, please see our City website: 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: Lisa Landau <LLandau@sealbeachca.gov> Sent: Monday, April 8, 2024 3:43 PM To: Jill Ingram <jingram@sealbeachca.gov> Cc: Barbara Arenado <barenado@sealbeachca.gov> Subject: Budget Update Hi Jill On page 2 of the staff report, 1st paragraph can you please explain what the unrealized parking revenue of $269,100 is? 2 Thank you, Lisa Landau City of Seal Beach Councilwoman District 3 211 Eighth Street, Seal Beach, CA 90740 (714) 656-8000 OCFA 911 Telecommunication Week Click to edit Master title style 1 Introduction of New Full Time Employees April 8, 2024 Lauren Barich, Management Analyst Click to edit Master title style 2 City Clerk’s Office 2 Brandon DeCriscio Deputy City Clerk Click to edit Master title style 3 Police Department 3 Paul Amerine Senior Community Services Officer Click to edit Master title style 4 Thank You! Agenda Item A AGENDA STAFF REPORT DATE:April 8, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Gloria D. Harper, City Clerk SUBJECT:Approval of the March 25, 2024, City Council Minutes ________________________________________________________________ SUMMARY OF REQUEST: That the City Council approve the minutes of the Closed Session and Regular City Council meetings held on March 25, 2024. BACKGROUND AND ANALYSIS: This section does not apply. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council approve the minutes of the Closed Session and Regular City Council meetings held on March 25, 2024. Page 2 1 6 4 8 SUBMITTED BY: NOTED AND APPROVED: Gloria D. Harper Jill R. Ingram Gloria D. Harper, City Clerk Jill R. Ingram, City Manager Prepared by: Brandon DeCriscio, Deputy City Clerk ATTACHMENTS: A. Minutes – Closed Session, March 25, 2024 B. Minutes – Regular Session, March 25, 2024 8 5 6 9 Seal Beach, California March 25, 2024 The City Council met in Closed Session at 5:30 p.m. in the City Hall Conference Room. ROLL CALL Present: Mayor Sustarsic Council Members: Moore, Landau, Kalmick, Steele Absent: None City Staff: Nicholas Ghirelli, City Attorney Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Barbara Arenado, Director of Finance/City Treasurer Iris Lee, Director of Public Works Alexa Smittle, Community Development Director Gloria D. Harper, City Clerk ORAL COMMUNICATIONS Mayor Sustarsic opened oral communications. Speakers: None. Mayor Sustarsic closed oral communications. CLOSED SESSION A. CONFERENCE WITH LABOR NEGOTIATOR Government Code §54957.6 City Negotiator(s): City Manager Jill R. Ingram and Assistant City Manager Patrick Gallegos Employee Organization(s): Police Officers Association Police Management Association Seal Beach Supervisors and Professionals Association Mid-Management and Confidential Employees Association B. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Government Code §54957(b) Title: City Manager C. Conference with Real Property Negotiators Government Code Section 54956.8 4197 Ironwood Avenue, Seal Beach, CA 90740 Under negotiation: Price and Terms of Payment City negotiators: Alexa Smittle, Community Development Director Negotiating parties: Xiagang Pan 8 5 6 9 ADJOURNMENT Mayor Sustarsic adjourned the Closed Session meeting at 6:57 p.m. Gloria D. Harper, City Clerk City of Seal Beach Approved: Schelly Sustarsic, Mayor Attested: Gloria D. Harper, City Clerk Seal Beach, California March 25, 2024 The City Council met in Regular Session at 7:08 p.m. in the City Council Chamber. Council Member Moore led the Pledge of Allegiance. ROLL CALL Present: Mayor Sustarsic Council Members: Kalmick, Moore, Steele, Landau Absent: None City Staff: Nicholas Ghirelli, City Attorney Jill R. Ingram, City Manager Michael Henderson, Police Chief Joe Bailey, Marine Safety Chief Alexa Smittle, Director of Community Development Barbara Arenado, Director of Finance/City Treasurer Iris Lee, Director of Public Works Gloria D. Harper, City Clerk Craig Covey, Orange County Fire Authority, Division Chief - Division 1 Michael Ezroj, Police Captain Nicholas Nicholas, Police Captain Kathryne Cho, Deputy Director of Public Works/City Engineer Tim Kelsey, Recreation Manager David Spitz, Associate Engineer Lauren Barich, Management Analyst PRESENTATIONS / RECOGNITIONS •San Gabriel River Trash Mitigation Initiative Grant Funds Presentation – Orange County Board of Supervisor Andrew Do, First District •National Tsunami Preparedness Week Proclamation - March 24 – 29, 2024 •City of Seal Beach Dump Day Debrief Presentation ORAL COMMUNICATIONS Mayor Sustarsic opened oral communications. Speakers: Barna Layson, Surbni, Maddie Merrill, Bill De Witt, Patty Campbell, Patty Senecal, Donna Biery, Wei Finaly, Hope Horning. Mayor Sustarsic closed oral communications. APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Mayor Pro Tem Landau pulled items H and J for separate consideration. Mayor Sustarsic pulled items D and F for separate consideration. One (1) supplemental communication was received after the posting of the agenda; it was 8 8 8 9 distributed to the City Council and made available to the public. Council Member Steele moved, second by Council Member Moore, to approve the agenda. AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried CITY ATTORNEY REPORT City Attorney Ghirelli reported that the City Council met in Closed Session regarding the three (3) items on the posted agenda. All five (5) Council Members were present, and no reportable action was taken. CITY MANAGER REPORT City Manager Ingram had no items to report. COUNCIL COMMENTS Council Member Kalmick reported his attendance at the Orange County Fire Authority (OCFA) Open House, a Rivers and Mountains Conservancy meeting, Seal Beach City Hall Courtyard Beautification Project Ribbon Cutting Ceremony, the State of the Base Briefing at the Naval Weapons Station and an OCFA Legislative Committee Meeting. He announced that the second meeting of the San Gabriel River Working Group is scheduled for Tuesday, March 26, 2024, in the Council Chambers. Council Member Moore reported his attendance at a Golden Rain Foundation (GRF) Working Group meeting, and the College Park East Town Hall meeting. Council Member Steele reported that he met with Peter Francks, who tendered his resignation from the Seal Beach Cable Communications Foundation, effective immediately. He noted that a new appointment will be forthcoming. Council Member Steele also reported his attendance at the Golden Rain Foundation (GRF) Working Group meeting, and the College Park East Town Hall meeting. He noted that he is a member of the Orange County Mosquito and Vector Control Board and that in the past year, there were nine (9) cases of dengue fever in Orange County. He also reported that he serves on the Orange County Mosquito and Vector Control Finance and Public Relations Boards and announced that the Public Relations Board will kick-off their Annual Public Relations Campaign in April. He recommended following the Orange County Mosquito and Vector Control District on Facebook and stated that the platform is helpful, but not as legendary as the Seal Beach Police Department social media platforms. 8 8 8 9 Council Member Steele concluded his remarks by reminding everyone that this week is Holy Week, and that the week is not about the crucifixion on Good Friday, but about the Resurrection on Easter Sunday and noted that the story of Jesus’ crucifixion and resurrection can be read near the end of Matthew, Mark, Luke, and John in the New Testament of the Bible. Mayor Pro Tem Landau stated that Run Seal Beach was a huge success. She addressed residents’ concerns regarding the event. She reported that she received several emails and texts from residents regarding street closures, noting that many residents were stuck in the city due to the closures. She sent the concerns to City Manager Ingram, who immediately forwarded them to Police Chief Henderson for a response. She thanked Chief Henderson for his timely response. She read an excerpt from Chief Henderson’s response regarding the importance of safety within the community and noted that the police department and City do listen and that no question is ever too small. Mayor Sustarsic reported that on March 8, 2024, she attended McGaugh’s Pageant of the Arts. She also reported her attendance at a Rossmoor Community Services District meeting regarding parking and traffic on Montecito Road and Shakespeare Drive. She noted that all the proposals received a majority “No” vote from residents. She also reported her attendance at the Seal Beach Chamber of Commerce networking breakfast, Run Seal Beach, Seal Beach City Hall Courtyard Beautification Project Ribbon Cutting Ceremony, the State of the Base Briefing at the Naval Weapons Station, the Association of California Cities-Orange County (ACC-OC) Mayoral Round Table, and the College Park East Town Hall. She thanked City Manager Ingram, Director of Finance Arenado, Police Chief Henderson, Police Captain Nicholas, Police Lieutenant Hendrix, Police Seargent Gray, Director of Public Works Lee, and Community Development Director Smittle for attending the Town Hall. Lastly, Mayor Sustarsic reported her attendance at Los Alamitos High School for the visit of the Western Association of Schools and Colleges (WASC) regarding the school’s accreditation. COUNCIL ITEMS - None CONSENT CALENDAR A. Approval of the March 11, 2024, City Council Minutes - That the City Council approve the minutes of the Regular City Council meeting held on March 11, 2024. B. Demands on City Treasury (Fiscal Year 2024) March 25, 2024 - Ratification. C. Monthly Investment Report (February 29, 2024) - Receive and file. D. Council Appointment to the Recreation and Parks Commission – District Four - It is at the request of Mayor Sustarsic that the City Council appoint William Holliday De Witt II to the Recreation and Parks Commission, as a representative for District Four. E. 2023 Annual General Plan Progress Report - That the City Council receive and file 8 8 8 9 the 2023 Annual General Plan Progress Report (APR) and authorize staff to submit the APR to the State Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (OPR), as required by State law. F. Approval of a Sale Contract for 4197 Ironwood Avenue - That the City Council adopt Resolution 7490: 1. Authorizing the sale of 4197 Ironwood Avenue, Seal Beach, CA to the highest qualified bidder; and, 2. Acceptance of net revenues into the General Fund Reserve, which will be restricted for stormwater network improvements; and, 3. Authorizing the City Manager to take any necessary action to execute the sale of the property. G. Accepting Grant Funds and Authorizing Execution of Agreement with the County of Orange for the San Gabriel River Trash Mitigation Initiative and Approving Budget Amendment BA #24-09-01 - That the City Council adopt Resolution 7499: 1. Accepting an award of grant funds in the amount of $525,000 from the County of Orange for the San Gabriel River Trash Mitigation Initiative; and, 2. Approving Budget Amendment BA #24-09-01 recognizing $525,000 to account 217- 500-0375-42400, and appropriating $525,000 to account 217-500-0375-51280; and, 3. Authorizing the City Manager or her designee to execute the Agreement with the County of Orange, amendments and other related documents, and to utilize the funds for and take such other actions associated with the implementation of the San Gabriel River Trash Mitigation Initiative and other applicable beach clean-up efforts. H. Approving and Authorizing Amendment No. 1 to the Professional Services Agreement with Raftelis Financial Consultants, Inc. for Water and Wastewater Financial Planning Services - That the City Council adopt Resolution 7500: 1. Approving Amendment No. 1 to the Professional Services Agreement with Raftelis Financial Consultants, Inc. dated June 23, 2023, to provide additional Water and Wastewater Financial Planning Services; increase compensation for such additional services by $48,352 for a revised total contract not-to-exceed amount of $135,767; and extend the term to December 31, 2024; and, 2. Authorizing and directing the City Manager to execute Amendment No. 1 on behalf of the City. I. Awarding and Authorizing a Professional Services Agreement with Silsby Strategic Advisors, Inc. for the San Gabriel River Trash Mitigation Initiative - That the City Council adopt Resolution 7501: 1. Approving and awarding a Professional Services Agreement with Silsby Strategic Advisors, Inc. in a not-to-exceed amount of $144,000 to provide strategic support services for the San Gabriel River Trash Mitigation Initiative; and, 2. Authorizing and directing the City Manager to execute the Professional Services Agreement; and, 3. Authorizing the City Manager to approve additional work requests up to $15,000 in connection with the San Gabriel River Trash Mitigation Initiative. J. Ratifying the Declaration of Emergency, Approval of Emergency First Street Parking Lot Repair and Dispensing with Public Bidding Requirements, Approval of Emergency First Street Parking Lot Geotechnical Evaluation, Approval of 8 8 8 9 Notice of Completion, and Authorization to Approve Payments for the Emergency First Street Parking Lot Repair and Geotechnical Evaluation - That the City Council adopt Resolution 7502: 1. Declaring that the Emergency First Street Parking Lot Repair, CIP EM2403, was necessary for the immediate preservation of life, health and property of the City, and therefore ratifying the declaration by the Public Works Director that the Emergency First Street Parking Lot Repair, CIP EM2403, was of urgent necessity for the immediate preservation of life, health and property; and, 2. Authorizing the City Manager to execute a purchase order with Hardy & Harper, Inc. for the Emergency First Street Parking Lot Repair, CIP EM2403, in the amount of $49,535 under an existing on-call agreement with Hardy & Harper, Inc. without advertising for bids; and, 3. Accepting the work to the Emergency First Street Parking Lot Repair, CIP EM2403, by Hardy and Harper, Inc. in the amount of $49,535; and, 4. Directing the City Clerk to file a “Notice of Completion” with the Orange County Clerk-Recorder within 15 days of the date of approval of the resolution and to release retention 35 days after the recordation of the Notice of Completion contingent upon no claims being filed on the Project; and, 5. Authorizing the City Manager to execute a purchase order with GMU Geotechnical, Inc. for the Emergency First Street Parking Lot Geotechnical Evaluation in connection the Emergency First Street Parking Lot Repair, CIP EM2403, in the amount of $15,600; and, 6. Approving Budget Amendment BA #24-09-02 in the amount of $66,000. K. Acceptance of Tree Donation from Trees for Seal Beach - That the City Council adopt Resolution 7503: 1. Accepting a donation from Trees for Seal Beach of thirty- three (33) trees, valued at $12,425, for City-wide tree reforestation; and, 2. Authorizing the City Manager, or her designee, to accept thirty-three (33) trees from Trees for Seal Beach, and to direct the City Arborist to install the trees at appropriate locations throughout the City. L. Awarding and Authorizing Execution of a Public Works Agreement with HZS Engineering Inc. dba HZS Construction, for the Pier Concrete Abutment Restoration, CIP BP2201 - That the City Council adopt Resolution 7504: 1. Approving the plans, specifications, and contract documents for the Pier Concrete Abutment Restoration, CIP BP2201; and, 2. Approving and awarding a Public Works Agreement to HZS Engineering Inc. dba HZS Construction in the amount of $567,300; incorporating the corrections set forth in HZS Construction’s March 19, 2024 letter; waiving any and all minor bid irregularities; and rejecting all other bids; and, 3. Authorizing the City Manager to execute a Public Works Agreement for construction services to HZS Engineering Inc. dba HZS Construction; and, 4. Authorizing the City Manager to approve additional work requests up to $19,766 and inspection services up to $11,200 in connection with the Project, in the cumulative not-to-exceed amount of $30,966. M. Seeking City Council approval to Purchase Noise Flash Diversionary Devices Pursuant to the City’s “Military Equipment” Use Policy and State Law - That the City Council adopt Resolution 7505 to approve the purchase of Noise Flash Diversionary Devices (NFDD) for the Seal Beach Police Department (“SBPD”), pursuant to the City’s “military equipment” use policy. 8 8 8 9 N. Accepting an Award of Hazard Mitigation Grant Program funds and Authorizing for the Purchase of Equipment or Services or for Reimbursement of Funds for the City of Seal Beach Hazard Mitigation Plan Update - That the City Council adopt Resolution 7506: 1. Accepting an award of federal grant funds from the Hazard Mitigation Grant Program (“HMGP”) in an amount up to $120,541.50 from the Department of Homeland Security - Federal Emergency Management Agency (“FEMA”) as the Federal obligation for 75% of the project cost ($160,722.00) and authorizing use of “in-kind” staff time to match the 25% cost share of $40,180.50; and, 2. Authorizing the City Manager and/or Chief of Police to execute all agreements and forms and to take any further actions necessary for the purpose of obtaining the grant funds under the HMGP provided by the FEMA and sub-granted through the California Office of Emergency Services (“Cal OES”). Council Member Kalmick moved, second by Council Member Steele, to approve the recommended actions on the consent calendar with the exception of items D, F, H, and J. The vote below is for the Consent Calendar Items with the exception of items D, F, H, and J. AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried ITEMS REMOVED FROM THE CONSENT CALENDAR D. Council Appointment to the Recreation and Parks Commission – District Four - It is at the request of Mayor Sustarsic that the City Council appoint William Holliday De Witt II to the Recreation and Parks Commission, as a representative for District Four. Mayor Sustarsic expressed her gratitude to Mr. De Witt for his decision to join the Recreation and Parks Commission. She introduced him to the City Council and the community and thanked former Recreation and Parks Commissioner Ann Saks for her service to the Commission and to the community. Mayor Sustarsic moved, second by Mayor Pro Tem Landau, to approve item D. AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried F. Approval of a Sale Contract for 4197 Ironwood Avenue - That the City Council 8 8 8 9 adopt Resolution 7490: 1. Authorizing the sale of 4197 Ironwood Avenue, Seal Beach, CA to the highest qualified bidder; and, 2. Acceptance of net revenues into the General Fund Reserve, which will be restricted for stormwater network improvements; and, 3. Authorizing the City Manager to take any necessary action to execute the sale of the property. City Manager Ingram introduced Community Development Director Smittle, who gave an overview of the staff report and resolution. Community Development Director Smittle turned the presentation over to Mohammed Baghdadi, President of Westridge Commercial Inc., to provide information on the offers received on the property. A dialogue ensued between the Council Members, Director Lee and Director Smittle regarding the cost and some specifics about stormwater drain improvement projects. Mayor Pro Tem Landau and Mayor Sustarsic stated that they were in favor of keeping the house. Additionally, Community Development Director Smittle provided information on how Community Facilities Districts (CFDs) work and could potentially be utilized. She stated she would conduct research into CFDs to determine if an option is available. Lastly, Director of Finance Arenado explained that past and future funds would be a part of the General Fund should the house be sold. Council Members Steele, Moore, and Kalmick stated they were in favor of selling the property. Council Member Moore suggested the creation of an Ad Hoc Committee to study flooding in the community. Council Member Steele agreed and suggested the creation of an Ad Hoc Committee to study methods to procure finances to be used for stormwater drain improvement projects. City Attorney Ghirelli advised that the agenda item is for the sale of property; therefore, an Ad Hoc Committee could not be created at this meeting but could be agendized for the next meeting. Council Member Moore moved, second by Council Member Steele, to direct staff to agendize the creation of a City-wide Storm Drain Ad Hoc Committee for the next agenda. City Manager Ingram requested and was granted additional time to agendize the item. City Clerk Harper took a roll call vote: AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried 8 8 8 9 Mayor Pro Tem Landau moved, second by Mayor Sustarsic, to not sell the property located at 4197 Ironwood Avenue. City Clerk Harper took a roll call vote: AYES: Landau, Sustarsic NOES: Kalmick, Moore, Steele ABSENT: None ABSTAIN: None Motion failed Council Member Steele moved, second by Council Member Kalmick, to sell the property, in accordance with revised Resolution 7490. Mayor Pro Tem Landau added an amendment to include reserving the funds for stormwater drainage improvements in College Park East. Council Member Steele accepted the amendment. Council Member Moore withdrew his support of selling the property. Council Member Steele withdrew his motion. Citty Attorney Ghirelli advised that an amended motion could be made to add a new section to Resolution 7490 to clarify that funds generated from the sale of 4197 Ironwood Avenue be set aside in an assigned fund balance in the General Fund for stormwater drainage improvements in College Park East. Mayor Sustarsic moved, second by Council Member Steele to revise Resolution 7490 to add a new section clarifying that funds generated from the sale of 4197 Ironwood Avenue be set aside in an assigned fund balance in the General Fund for stormwater drainage improvements in College Park East. City Clerk Harper took a roll call vote: AYES: Kalmick, Landau, Steele, Sustarsic NOES: Moore ABSENT: None ABSTAIN: None Motion carried Council Member Steele moved, second by Council Member Kalmick, to adopt revised Resolution 7490, approving the sale of 4197 Ironwood Avenue. City Clerk Harper took a roll call vote: AYES: Kalmick, Steele NOES: Moore, Landau, Sustarsic ABSENT: None ABSTAIN: None Motion failed 8 8 8 9 H. Approving and Authorizing Amendment No. 1 to the Professional Services Agreement with Raftelis Financial Consultants, Inc. for Water and Wastewater Financial Planning Services - That the City Council adopt Resolution 7500: 1. Approving Amendment No. 1 to the Professional Services Agreement with Raftelis Financial Consultants, Inc. dated June 23, 2023, to provide additional Water and Wastewater Financial Planning Services; increase compensation for such additional services by $48,352 for a revised total contract not-to-exceed amount of $135,767; and extend the term to December 31, 2024; and, 2. Authorizing and directing the City Manager to execute Amendment No. 1 on behalf of the City. City Manager Ingram introduced Director of Public Works Lee, who gave a brief overview of the staff report. A dialogue ensued between Mayor Sustarsic, Mayor Pro Tem Landau, Council Member Steele, Director of Public Works Lee, and City Attorney Ghirelli. The City Council’s comments and concerns were addressed by Director of Public Works Lee. City Attorney Ghirelli clarified that the purpose of the contract amendment with Raftelis Financial Consultants Inc., is to ensure that the consultant is available for additional services and future meetings. Mayor Pro Tem Landau moved, second by Council Member Moore, to approve item H. AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried J. Ratifying the Declaration of Emergency, Approval of Emergency First Street Parking Lot Repair and Dispensing with Public Bidding Requirements, Approval of Emergency First Street Parking Lot Geotechnical Evaluation, Approval of Notice of Completion, and Authorization to Approve Payments for the Emergency First Street Parking Lot Repair and Geotechnical Evaluation - That the City Council adopt Resolution 7502: 1. Declaring that the Emergency First Street Parking Lot Repair, CIP EM2403, was necessary for the immediate preservation of life, health and property of the City, and therefore ratifying the declaration by the Public Works Director that the Emergency First Street Parking Lot Repair, CIP EM2403, was of urgent necessity for the immediate preservation of life, health and property; and, 2. Authorizing the City Manager to execute a purchase order with Hardy & Harper, Inc. for the Emergency First Street Parking Lot Repair, CIP EM2403, in the amount of $49,535 under an existing on-call agreement with Hardy & Harper, Inc. without advertising for bids; and, 3. Accepting the work to the Emergency First Street Parking Lot Repair, CIP EM2403, by Hardy and Harper, Inc. in the amount of $49,535; and, 4. Directing the City Clerk to file a “Notice of Completion” with the Orange County Clerk-Recorder within 15 days of the date of approval of the resolution and to release retention 35 days after the recordation of the Notice of Completion contingent upon no claims being filed on the 8 8 8 9 Project; and, 5. Authorizing the City Manager to execute a purchase order with GMU Geotechnical, Inc. for the Emergency First Street Parking Lot Geotechnical Evaluation in connection the Emergency First Street Parking Lot Repair, CIP EM2403, in the amount of $15,600; and, 6. Approving Budget Amendment BA #24-09-02 in the amount of $66,000. City Manager Ingram introduced Director of Public Works Lee, who gave a brief overview of the staff report. A dialogue ensued between Council Member Kalmick, Council Member Steele, Mayor Pro Tem Landau, Director of Public Works Lee, and City Attorney Ghirelli regarding the scope of the work. There was also discussion to send the GMU Geotechnical Evaluation to the Environmental Quality Control Board (EQCB) for review. Council Member Steele moved, second by Council Member Kalmick, to approve item J. AYES: Kalmick, Landau, Moore, Steele, Sustarsic NOES: None ABSENT: None ABSTAIN: None Motion carried Mayor Pro Tem Landau moved, second by Mayor Sustarsic to send the GMU Geotechnical Evaluation, included in Item J to the Environmental Quality Control Board (EQCB) for review. City Clerk Harper took a roll call vote: AYES: Landau, Moore, Sustarsic NOES: Kalmick, Steele ABSENT: None ABSTAIN: None Motion carried PUBLIC HEARING There were no public hearing items. UNFINISHED/CONTINUED BUSINESS There were no unfinished/continued business items. NEW BUSINESS There were no new business items. ADJOURNMENT Mayor Sustarsic adjourned the City Council meeting at 9:07 p.m. to Monday, April 8, 2024, at 5:30 p.m. to meet in Closed Session if deemed necessary. 8 8 8 9 __________________________ Gloria D. Harper, City Clerk City of Seal Beach Approved: ___________________________ Schelly Sustarsic, Mayor Attested: ____________________________ Gloria D. Harper, City Clerk Agenda Item C AGENDA STAFF REPORT DATE:April 8, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Gloria D. Harper, City Clerk SUBJECT:Council Appointment to the Seal Beach Cable Communications Foundation – District Five ________________________________________________________________ SUMMARY OF REQUEST: It is at the request of Council Member Steele that the City Council appoint Richard (Eric) Nelson to the Seal Beach Cable Communications Foundation, as a representative for District Five. BACKGROUND AND ANALYSIS: Pursuant to Government Code Section 54974(a), whenever an unscheduled vacancy occurs on any board, commission, or committee for which the legislative body has the appointing power, an unscheduled vacancy notice shall be posted and appointment to the board, commission, or committee shall not be made by the legislative body for at least ten (10) working days after the posting of the notice. The notice of resignation for Peter Franck from the Seal Beach Cable Communications Foundation was received March 14, 2024; and the required Notice of Vacancy was posted March 20, 2024. The term for the new appointee will expire in December 2026. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: No legal analysis is required for this item. FINANCIAL IMPACT: There is no financial impact for this item. Page 2 1 7 6 7 STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: It is at the request of Council Member Steele that the City Council appoint Richard (Eric) Nelson to the Seal Beach Cable Communications Foundation, as a representative for District Five. SUBMITTED BY: NOTED AND APPROVED: Gloria D. Harper Jill R. Ingram Gloria D. Harper, City Clerk Jill R. Ingram, City Manager Prepared by: Brandon DeCriscio, Deputy City Clerk ATTACHMENTS: A. Redacted Application – Richard (Eric) Nelson Agenda Item D AGENDA STAFF REPORT DATE:April 8, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Iris Lee, Director of Public Works SUBJECT:Approving and Authorizing the Execution and Recordation of a Temporary Construction Easement Agreement with Old Ranch Country Club, LLC ________________________________________________________________ SUMMARY OF REQUEST: That the City Council adopt Resolution 7507: 1. Approving a Temporary Construction Easement Agreement with Old Ranch Country Club, LLC; and, 2. Authorizing the City Manager to execute the Temporary Construction Easement Agreement and to cause the executed Temporary Construction Easement to be recorded at the Orange County Clerk-Recorder. BACKGROUND AND ANALYSIS: The Lampson Avenue Bike Lane Gap Closure Project (“Project”) received Active Transportation Program federal transportation grant funding. The Project will be adding a bike lane in both eastbound and westbound directions along Lampson Avenue between Basswood Street and Seal Beach Boulevard. In compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (the “Uniform Act”), a Right-of-Way Certification is required to document property interests within the Project’s limits. On October 24, 2022, the City Council adopted Resolution 7342 approving and accepting the Project-necessitated Temporary Construction Easement (“Original TCE Agreement”) at the northeast corner of Lampson Avenue approaching Seal Beach Boulevard. This property is owned by Old Ranch Country Club, LLC. The Original TCE Agreement was recorded at the Orange County Clerk-Recorder as Doc. No. 2022000353598 on November 3, 2022. The Original TCE Agreement expired on February 1, 2024, while the federal construction funding allocation was being processed. As such, staff recommends Page 2 1 7 6 4 that the City Council approve the execution and recordation of a new Temporary Construction Agreement (“TCE Agreement”) with an expiration date of April 8, 2025. The Project construction Notice-to-Proceed has been issued. Construction mobilization is scheduled for early April 2024. ENVIRONMENTAL IMPACT: This item is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that approval of an easement document will not have a significant effect on the environment. The State has determined that this Project has no significant impacts on the environment as defined by the National Environmental Policy Act (“NEPA”), and that there are no unusual circumstances as described in 23 CFR 771.117(b). The State has determined that the project is a Categorical Exclusion under 23 CFR 771.117(c), activity (c)(3). This Project complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under section 15301 (c) of the CEQA Guidelines. LEGAL ANALYSIS: The City Attorney has reviewed the Temporary Construction Easement Agreement and approved the resolution as to form. FINANCIAL IMPACT: There is no financial impact for this item. STRATEGIC PLAN: This item is not applicable to the Strategic Plan. RECOMMENDATION: That the City Council adopt Resolution 7507: 1. Approving a Temporary Construction Easement Agreement with Old Ranch Country Club, LLC; and, 2. Authorizing the City Manager to Execute the Temporary Construction Easement Agreement and to cause the executed Temporary Construction Easement to be recorded at the Orange County Clerk-Recorder. Page 3 1 7 6 4 SUBMITTED BY: NOTED AND APPROVED: Iris Lee Jill R. Ingram Iris Lee, Director of Public Works Jill R. Ingram, City Manager ATTACHMENTS: A. Resolution 7507 B. Temporary Construction Easement Agreement RESOLUTION 7507 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING AND AUTHORIZING EXECUTION AND RECORDATION OF A TEMPORARY CONSTRUCTION EASEMENT AGREEMENT WITH OLD RANCH COUNTRY CLUB, LLC FOR THE LAMPSON AVENUE BIKE LANE GAP CLOSURE PROJECT, CIP ST1811 WHEREAS, the Old Ranch Country Club, LLC (“Grantor”) is the record fee owner of that certain real property identified as APN 130-012-55 and 130-012-58 and located at 3901 Lampson Avenue, in the City of Seal Beach, California (“Property”); and, WHEREAS, on October 24, 2022, City Council adopted Resolution 7342 approving a Temporary Construction Easement Agreement (“Original TCE Agreement”) from Grantor for the Lampson Avenue Bike Lane Gap Closure Project (“Project”), CIP ST1811, and recorded the Original TCE Agreement at the Orange County Clerk- Recorder as Doc. No. 2022000353598 on November 3, 2022; and, WHEREAS, the Original TCE Agreement expired on February 1, 2024, and the City desires to enter a new Temporary Construction Easement Agreement (“TCE Agreement”) with a termination date of April 8, 2025, unless terminated earlier in accordance with the TCE Agreement. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: Section 1. The City Council hereby approves the TCE Agreement. Section2. The City Council hereby authorizes the City Manager to execute the TCE Agreement on behalf of the City, and to cause the executed TCE Agreement to be recorded in the Official Records of the Orange County Clerk-Recorder. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 8th day of April 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members 8 8 9 9 Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7507 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 8th day of April 2024. Gloria D. Harper, City Clerk Agenda Item E AGENDA STAFF REPORT DATE:April 8, 2024 TO:Honorable Mayor and City Council THRU:Jill R. Ingram, City Manager FROM:Barbara Arenado, Director of Finance/ City Treasurer SUBJECT:Fiscal Year 2023-2024 Mid-Year Budget Update and Consideration of Proposed Amendment to Fiscal Year 2023-24 Budget ________________________________________________________________ SUMMARY OF REQUEST: That the City Council receive and file Fiscal Year 2023-2024 Mid-Year Budget Update and adopt Resolution 7508 to approve Budget Amendment BA #24-10-01. BACKGROUND AND ANALYSIS: This report provides a Mid-Year Budget Update (second quarter) of the City’s financial position for Fiscal Year (FY) 2023-2024 (Attachment A – Exhibit A). To develop the mid-year update, the Finance Department meets with City departments to gather revenue projections, reviews and analyzes data with the City’s consultants, and evaluates the potential fiscal impacts. Preparing for an uncertain future requires consideration of a wide range of factors, including direct and indirect influences on the City. This report represents the City’s best estimates based on the most current information. The FY 2023-2024 Mid-Year Budget Update Summary (Attachment B) is based on actuals from July 1, 2023, through December 31, 2023. The economy is experiencing slower growth, higher inflation, and higher interest rates than had been projected in the City’s FY 2023-2024 Budget. However, even though economic conditions continue to be volatile, one-time revenue keeps the overall General Fund revenue positive. Staff is closely monitoring revenues and expenditures for further impacts. With expenditures consistently surpassing revenues, it is expected that the upcoming budget will face further adverse effects. General Fund revenues recorded through December 2023 were reviewed in the context of FY 2022-2023 actual results, performance to date, and historical budget average. Property Tax continues to be a consistent revenue source and is estimated to meet budget expectations. Sales tax performance remained positive through December, although the City’s sales tax consultant, HdL, has reduced Page 2 1 7 7 1 revenues and flattened projections. Utility Users Tax (UUT) and Transient Occupancy Tax (TOT) continue to outperform budget expectations; however, these revenues are completely offset by $500,000 in reductions in citation revenue due to greater compliance, rain, implementation of animal control, unfilled positions, as well as unrealized parking meter revenue of $269,100 Mid-Year Budget Update Summary, (Attachment B). These adverse effects will hinder programing and services in the future budget. As of the second quarter, General Fund non-personnel expenditures (maintenance and operations) are trending higher than prior years and are offset by the salary savings from ongoing vacant positions throughout the City. The City is currently in negotiations with bargaining units and further adjustments may be necessary in the FY 2023-2024 Budget. When those updates are available, staff will bring forth to the City Council for approval. The Mid-Year Report also documents the increasing effects storms and weather events have had on expenditures beyond the amounts projected. Along with revenue adjustments, an increase in expenditures is requested, due to increased legal expenses, increased staff time, the needs of SBTV-3, and contract expenditures increases. Further details are noted below and provided in the Budget Adjustment Detail Report (Attachment A – Exhibit A). Fire Bond The City paid the last payment of Fire Station 48 Bond in January 2024, and the City received the reserve funds of $637,167 that were established to meet the debt covenant. Including the residual balance in Fund 402, $659,500 will close the Fire Station Bond Fund 402 and the balance will transfer to the General Fund. 2016 Pier Fire The May 2016 Seal Beach pier fire severely damaged the pier and restaurant. The reconstruction was accepted in 2020, and the City’s insurance carrier reimbursed the City based on a negotiated contribution except for a holdback to re-establish utility connections for the future pier restaurant. As the pier restaurant’s scope of work has yet to be determined, the City’s insurance carrier has now opted to issue the City $397,000 as final insurance reimbursement and is anticipated to be received by the end of the fiscal year. Emergency Pier Repair From December 23, 2022, through and including January 16, 2023, the City and surrounding areas were hit by repeated “Atmospheric River” major storm events. The Seal Beach pier was damaged by the tide and wave activity. The City received Emergency Pier Repair reimbursements of $1,146,218. Filming Detail Reimbursement The filming of the "On Call" police drama at the Police Station was an unforeseen opportunity that arose outside of our standard budgeting process; thus, it was not allocated for in our initial budget. This event required the involvement of public safety officers and professional staff to ensure the filming proceeded smoothly and safely, given the unique nature of filming on police premises. Despite not being a Page 3 1 7 7 1 pre-scheduled event, the film brought $100,916 in increased revenue to the City, showcasing a positive collaboration between the Police Department and the entertainment industry. Importantly, all the expenses incurred during this detail were covered by the production company, making this a revenue-positive event. Given these circumstances, a request for reimbursement of $65,608 is included to cover the costs associated with this overtime detail, recognizing the benefit it brought to the City and the department without prior budget allocation. The remaining balance will go the General Fund. Legal Fees Legal fees from the City’s labor and employment counsel at Liebert Cassidy Whitmore (LCW) have increased $81,000, primarily due to a higher volume of personnel-related issues, including complex matters concerning worker’s compensation and industrial disability retirements. These increased fees ensure that proper procedures are adhered to, thereby minimizing the risk of liability and potential litigation. Additionally, the City has enlisted a labor consultant from LCW to aid in labor negotiations with its four labor associations. Moreover, costs have escalated due to increased compliance analysis, aimed at safeguarding the City from potential violations of employment laws, regulations, and new legislation that it must adhere to. Lastly, there has been a rise in investigative matters necessitating additional legal consultation. Axon/Taser Reimbursement The procurement of body-worn cameras and tasers, provided by Axon, represents a critical investment in the safety and accountability of our officers and the community they serve. This initiative, spanning five years, was launched to enhance transparency, reduce incidents of misconduct, and provide clear evidence in contentious situations. However, it was not included in the original budget at the program's inception. The importance of this technology in modern policing cannot be overstated, and its benefits extend well beyond the confines of the Department, positively impacting community trust and legal clarity. Although the Police Department has absorbed most of the cost in their current budget, $54,315 is necessary from the General Fund for this essential expenditure. Supplemental Law Enforcement Services Fund (SLESF) Overtime Costs An additional $30,000 appropriation from fund balance in the SLESF budget is driven by the need to cover unexpected overtime costs that have arisen due to intensified efforts against organized retail theft. A portion of the overtime expense has been allocated to operations specifically targeting this growing issue. Organized retail theft not only affects local businesses but also undermines the economic stability and safety of our community. The operations conducted were essential in curbing this trend, leading to the apprehension of perpetrators and the recovery of stolen goods. Aquatics Staffing McGaugh Pool programing has increased during the last year and $38,000 is requested to fund the program. The amount of pool use has surpassed pre- pandemic levels. The City is offering new programs that include an after-school Page 4 1 7 7 1 aquatics program, extended lap swim hours, and a new inflatable obstacle course for recreation swim. These programming enhancements require additional staff support. Throughout this fiscal year, the pool has been open for more extended periods and experienced fewer breakdowns. In contrast, the previous fiscal year saw the pool closed for approximately six weeks, resulting in a $15,000 reduction in wages for that period. 2024 Winter Storm Impacts During the 2024 winter season, the City was faced with high-intensity storms compounded with king tides. As a result of these unforeseen events, the Public Works Department expenditures exceeded the budgeted amounts. This includes staffing overtime, portable storm water pump rentals and storm preparation materials, emergency tree removals, and pavement damages from repeated water infiltration, which amounted to $200,000 and will impact contract professional in storm drain and street maintenance programs. Public Works Contract Professional As inflation continues to impact labor and material prices, the City has observed significant increases in contract costs, particularly in the landscape maintenance contract. Following a thorough public solicitation and negotiation process, the contract awarded to Brightview Landscape amounted to approximately $260,000 more than the previous legacy contracts for similar services. While the Public Works Department has managed to accommodate most of this cost within their existing budget, a request for $49,000 is made to ensure adequate maintenance of the City’s landscape assets. SBTV-3 City staff met with representatives of the Cable Communications Foundation in order to assist the Foundation with its budgeting needs this fiscal year. Based on a review of the Foundation's budget, the Foundation has incurred greater than expected operational expenses, largely based on the Foundation's expanded role in managing SBTV-3 following Robin Fort-Lincke's tragic passing last year. As a result, it is recommended that the budget be amended to provide $70,000 from the General Fund to support Foundation operations for this fiscal year. Funds previously budgeted with Public, Educational, and Governmental (PEG) fees will remain available as needed for capital costs incurred by the Foundation and/or City to support SBTV-3. Strategic Planning Directives On January 30, 2024, the Seal Beach City Council met at Fire Station 48 Community Room for a Special Meeting of the City Council – Strategic Planning Workshop. All five (5) City Council members were present and one of the agendized goals of the Workshop was to discuss and establish the Council’s top priorities for FY 2024-2025. The Council directed City staff to allocate Revitalization funds to several different priority projects and to refocus funds for Lifeguard Headquarters and the Police Substation. The following reflects the direction of the Council and City staff will move forward with executing the Council’s direction. Although these funds are set aside for City Council priorities, Page 5 1 7 7 1 respective departments are directed to return to the Council for updates and procurement approvals. As noted below and in the Budget Adjustment Detail Report, (Attachment A - Exhibit A): •$75,000 for the Citywide Information technology (IT) Master Plan •$325,000 for the License Plate Reader System Upgrade •$230,000 for the Locally Controlled Gas Tax Measure and Potential Transaction Use Tax •$236,312 for Repaving of the 8th/10th Parking lots with American with Disabilities Act (ADA) Upgrades, with the remaining portion of $563,688 from the Pool BG0904, totaling $800,000 •$200,000 for the Gas Line Heater and McGaugh Pool •$3,632,136 to move the Pool Funding to Lifeguard and Police Substation Headquarters capital improvement project ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has reviewed and approved as to form. FINANCIAL IMPACT: The recommended budget adjustments are included above in the Budget Adjustment Detail Report (Attachment A – Exhibit A). RECOMMENDATION: That the City Council receive and file Fiscal Year 2023-2024 Mid-Year Budget Update and adopt Resolution 7508 to approve Budget Amendment BA #24-10-01. SUBMITTED BY: NOTED AND APPROVED: Barbara Arenado Jill R. Ingram Barbara Arenado, Director of Finance Jill R. Ingram, City Manager Page 6 1 7 7 1 ATTACHMENTS: A. Resolution 7508 with Exhibit A B. Mid-Year Budget Update Summary RESOLUTION 7508 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING FISCAL YEAR 2023-2024 MID-YEAR BUDGET AMENDMENT BA #24-10-01 WHEREAS, on May 1, 2023 and May 2, 2023, the City Council conducted budget workshops to provide an opportunity to the public to comment on the Proposed Fiscal Year 2023-24 Operating and Capital Improvement Budget; and, WHEREAS, on May 22, 2023, the City Council unanimously approved Resolution 7409, adopting the City’s Fiscal Year 2023-2024 Budget; and, WHEREAS, on April 8, 2024 the Mid-Year Budget Review was presented to City Council; and, WHEREAS, unforeseen situations and conditions, including changes in operations or funds received, since the City Council’s adoption of the Fiscal Year 2023-2024 Budget have brought about the need to amend certain items within the budget. NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE: SECTION 1. The City Council hereby approves Budget Amendment BA 24-10-01 to modify the Fiscal Year 2023-2024 Budget as included in Exhibit A - Budget Adjustment Detail Report. PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 8th day of April 2024 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Schelly Sustarsic, Mayor ATTEST: Gloria D. Harper, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7508 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 8th day of April 2024. Gloria D. Harper, City Clerk Budget Amendment: BA 24-10-01 Description Project No. Revised/Adopted Budget Proposed Budget Budget (diff) Amendment 402-220-0026-59200 101-000-0000-49200 Fire Station Reserve and Fire Station Fund Balance $ 191,200 $ 850,700 $ 659,500 One-Time Transfer Out/In Fund 401 to 101Fire Station Bond Reserve ($637,168) and Fund Balance to Close the Fund 101-000-0000-47100 Insurance Pier Reimbursements $ - $ 1,543,218 $ 1,543,218 One-Time Emergency Pier Repair ($1,146,218) and Pier Fire Reimbursement ($397,000) 101-210-0023-43390 Movie Detail Reimbursement $ - $ 100,916 $ 100,916 One-Time Movie/television reimbursement to cover overtime 101-000-0000-40400 Transient Occupancy Tax $ 1,600,000 $ 1,800,000 $ 200,000 Transient Occupancy Tax Hotel Revenue 101-000-0000-40302 Utility Users Tax $ 4,500,000 $ 5,100,000 $ 600,000 Utility Users Tax (Telecommunication, Electric, Gas)101-210-0025-44400 Parking Meters $ 349,100 $ 80,000 $ (269,100)Unrealized Parking Meter Revenue 101-210-0025-43300 Parking Citations $ 1,900,000 $ 1,400,000 $ (500,000)Reductions in Citywide Parking CitationsTotal General Fund Revenues 2,334,534$ 101-210-0022-50050 Movie Detail Overtime Reimbursement $ 400,000 $ 465,608 $ 65,608 Movie/Television Offset from Revenue 101-210-0023-51280 Police Axon Body Worn Cameras 85,500$ 139,815$ $ 54,315 Unbudgeted Police Axon - Body Worn Cameras101-130-0015-51961 Legal - Personnel Matters LCw $ 39,000 $ 120,000 $ 81,000 Unanticipated Legal Matters101-230-0073-50030 Part-time Salaries 147,703$ 185,703$ 38,000$ Marine Safety Aquatics 101-500-0044-51280 PW Contract Professsional 930,000$ 1,080,000$ 150,000$ Unforseen weather impacts, including pavement damage and alley voids 101-500-0049-51280 PW Contract Professsional 235,000$ 284,000$ 49,000$ Increase in landscape contract, inlcuding emergency tree removal 101-500-0043-51280 PW Contract Professsional 113,000$ 163,000$ 50,000$ Unforseen weather impacts, including pump rentals, emergency pre/post storm needs 101-150-0053-51280 Contract Professional - SBTV 85,500$ 155,500$ 70,000$ General Fund SBTV Total General Fund Expenditures 557,923$ 301-500-0333-55000 Citywide IT Master Plan Review BG2401 $ 13,846,855 $ 13,921,855 $ 75,000 IT Master Plan (Revitalization) 301-500-0333-55000 Police License Plate Reader System BG2401 13,921,855$ 14,246,855$ $ 325,000 License plate reader system upgrade (Revitalization) 301-500-0333-55000 Gas Tax and Transaction Use Tax Measure BG2401 14,246,855$ 14,476,855$ 230,000$ Locally controlled Gas Tax Measure and Potential Transaction Use Tax, mailings, review, consultation 301-500-0333-55000 Repave 8th/10th Parking lots with ADA upgrades BG2401 14,476,855$ 14,713,167$ $ 236,312 $236,312 (Revitalization), $563,688 (Swimming Pool)City Council Workshop Revitalization Fund 866,312$ 301-500-0333-55000 Pool CIP BG0904 14,713,167$ 10,317,343$ (4,395,824)$ Realign Pool to LGHQ 301-500-0333-55000 Gas Line McGaugh Pool BG0904 10,317,343$ 10,517,343$ 200,000$ Gas line and heater at McGaugh pool (Swimming Pool) 301-500-0333-55000 Repave 8th/10th Parking lots with ADA upgrade BG0904 10,517,343$ 11,081,031$ $ 563,688 $236,312 (Revitalization), $563,688 (Swimming Pool) 301-500-0333-55000 Set Aside For Lifeguard Headquarters 11,081,031$ 14,713,167$ $ 3,632,136 Move funding to Lifeguard HeadquartersCity Council Workshop Pool and LGHQ 4,395,824$ 201-210-0600-50050 Increase SLESF Overtime 100,000$ 130,000$ 30,000$ Increase SLESF Overtime from Fund BalanceSpecial Fund Total 30,000$ 1 | P a g e MID-YEAR BUDGET UPDATE July - December 2023 The Mid-Year Budget Update for Fiscal Year (FY) 2023-24 provides an analysis of General Fund revenues and expenditures based on July 1, 2023, through December 31, 2023, actuals with a comparison to prior year. SUMMARY The development of the FY 2023-24 Mid-Year Budget Update includes analysis of financial activity from July 1, 2023, through December 31, 2023. This report includes six months of the fiscal year. The City ended the prior fiscal year in a strong financial position due to continued fiscal recovery from the pandemic. During the second quarter of FY 2023-24, City programs and services have resumed to pre-pandemic operations. Mid-year assessments indicate that General Fund revenue projections are generally in line with the budget, supported by one-time revenue. Ongoing reductions in revenue will negatively impact programs and services in future budgets. Property Tax remains a reliable revenue source and is expected to meet budget expectations. Sales tax performance remained favorable through December, although revenue projections from the City’s sales tax consultant, HdL, have been reduced and are leveling off. It’s too early to determine the year-end impact of Sales and Use Tax. Utility Users Tax (UUT) and Transient Occupancy Tax (TOT) continue to exceed budget expectations.; however, these gains are offset by a $500,000 decrease in citation revenue due to increased compliance, weather conditions, implementation of animal control, and unfilled positions and $269,100 in unrealized parking meter revenue. SOURCES ADOPTED BUDGET YTD-ACTUAL %ADOPTED BUDGET YTD-ACTUAL % 01-PROPERTY TAXES 13,648,600 5,726,311 42%14,797,300 6,084,746 41% 02-SALES AND USE TAXES 11,765,700 3,919,472 33%11,307,000 3,811,888 34% 03-UTILITY USERS TAX 4,170,000 2,132,422 51%4,500,000 2,325,571 52% 04-TRANSIENT OCCUPANCY TAX 1,250,000 518,565 41%1,600,000 533,289 33% 05-FRANCHISE FEES 1,091,000 206,042 19%1,090,000 230,613 21% 06-OTHER TAXES 630,800 480,612 76%850,800 728,714 86% 07-LICENSES AND PERMITS 967,100 601,794 62%859,000 534,698 62% 08-INTERGOVERNMENTAL 146,000 19,421 13%146,000 36,199 25% 09-CHARGES FOR SERVICES 2,997,600 1,612,216 54%3,276,600 1,684,944 51% 10-FINES AND FORFEITURES 1,917,500 471,247 25%2,005,100 625,981 31% 11-USE OF MONEY AND PROPERTY 675,000 315,547 47%704,000 197,647 28% 13-OTHER REVENUES 162,400 107,842 66%94,200 310,733 330% TOTAL OPERATING REVENUE 39,421,700 16,111,490 41%41,230,000 17,105,022 41% 14-TRANSFERS IN 924,700 733,500 79%924,700 -0% TOTAL REVENUES & SOURCES 40,346,400 16,844,990 42%42,154,700 17,105,022 41% USES, BY TYPE 01-REGULAR SALARIES 9,694,200 4,416,125 46%10,044,256 4,462,556 44% 02-OTHER PAY AND BENEFITS 4,578,000 2,172,418 47%4,874,982 2,149,903 44% 03-RETIREMENT 4,865,000 3,795,153 78%4,959,523 3,812,827 77% 04-MAINTENANCE AND OPERATIONS 19,186,100 10,107,148 53%20,127,015 10,881,495 54% 05-CAPITAL OUTLAY 21,000 -0%10,000 10,000 100% 06-DEBT EXPENSE 91,800 45,905 50%91,807 45,905 50% TOTAL OPERATING EXPENDITURES 38,436,100 20,536,749 53%40,107,583 21,362,686 53% 07-TRANSFERS OUT 4,591,565 1,398,750 30%15,330,789 1,022,393 7% TOTAL EXPENDITURES & USES 43,027,665 21,935,499 51%55,438,372 22,385,079 40% FY 2022-2023 FY 2023-2024 FY 2023-24 General Fund General Fund Summary MID-YEAR UPDATE During this period, revenues in both years accounted for approximately 41 percent of the adopted budget. It's important to note that the majority of revenues are typically received in the latter half of the fiscal year. Fluctuations and unforeseen events may still arise due to external factors such as labor shortages, inventory constraints, emergencies, and ongoing inflation. Departments are monitoring expenditures closely to ensure they remain within budget and any further adjustments will be brought forth to Council. PROPERTY TAX revenues have increased compared to the same period in the prior fiscal year due to the timing of payments, but it is anticipated to have slight growth throughout the fiscal year. The growth is primarily due to the overall sales and market value increases that helped add value to the City’s assessed valuations. The City’s FY 2023-24 Assessed Valuation, as released by the Orange County Assessor, is $7.1 billion, an increase of 4.5 percent from the prior year. Median home price during this period was $1.4 million. Although there was an increase in median price from the previous time last year, there were 39 fewer sales transactions, which is a 24 percent decline in the number of homes sold which will be reflected in the additive FY 2024-25 tax roll reducing year of year growth. Residential property tax payments are largely received by the City in the months of December and April. Property tax provides 35 percent of annual budgeted General Fund operating revenues and remains on budget. SALES TAX is collected by the State and advanced to the City monthly with funds distributed two months following the period the revenue is earned. According to HdL, the City’s tax consultant, the City’s receipts from July through September were down 5.5 percent below the same period the prior year. Results from autos & transportation, service stations, convenience stores, building & construction, and the state and county pools were also down. Returns from casual dining and quick service restaurants increased and combined to offset the net quarterly loss. Otherwise, retailers experienced flat to decreased receipts as many apparel categories, home furnishings and sporting goods struggled to keep pace with the prior year. Sustained price increases and interest rate hikes have consumers contemplating where to spend their dollars. Sales tax represents 27 percent of annual budgeted General Fund operating revenue. The chart below is based on the latest available data from the California Department of Tax & Fee Administration (CDTFA) and reflects quarter-over-quarter (3-month) results as of September 30th. Quarterly data is typically on a lag, and staff adjusts forecasts accordingly. REVENUES MID-YEAR UPDATE Source: HdL, Sales and Use Tax UTILITY USERS TAX (UUT) is 11 percent of the FY 2023-24 Budget. UUT is charged to customers of electric, natural gas, telecommunications and pre-paid wireless. Revenues in this category are impacted by consumption levels and have experienced strong growth from prior periods due to return to work, increases in utilities, and businesses opening back up to pre-covid levels. Year end is expected to be above budget. The City is also seeing moderate growth in UTT mostly due to rate increase in electric. Bundling of data and voice/text in cellphone plans continues to negatively impact wireless revenues and migration of landlines to cellular continues to negatively impact wired revenues. However, increases in rates will continue to impact customers. MID-YEAR UPDATE CHARGES FOR SERVICES is 8 percent of the FY 2023-24 Budget. Charges for services are used to recover costs of programs for specific end users. Programs provided through Community Services are typically subsidized by the General Fund to encourage participation. Plan check fees and Tennis Center revenue are trending higher than budget the first half of the year. Charges for services are anticipated to be lower than budget due to unrealized meter parking revenue of $269,100. A substantial portion of Charges for Services is for Refuse Services and the spike in August is for a correction in delayed services. FINES & FORFEITURES is primarily parking revenue and is 5 percent of the FY 2023-24 Budget. Staff is anticipating $500,000 in reductions in citation revenue due to greater compliance, rain, implementation of animal control, and unfilled positions. Fluctuations in August through November are due to the training for Animal Control staff and winter storms. Staff is monitoring closely, and at mid-year, this revenue is MID-YEAR UPDATE under budget. This trend is anticipated to continue and will severely impact programming and services in future budgets. TRANSIENT OCCUPANCY TAX accounts for 4 percent of the General Fund. Due to impacts of COVID-19 that began in the second half of FY 2020, the hotel industry reported its lowest occupancy rates since 2007. Year-to-date through December, TOT revenue is up 2.8 percent compared to the prior year. TOT has recovered to pre-pandemic levels and is anticipated to exceed budget projections by $200,000. The City’s three hotels are performing beyond expectations. This revenue source is volatile and is strongly correlated with economic impacts. FRANCHISE FEES are imposed on various public utilities and account for 2 percent of the General Fund. The franchise grants the public utilities the right to use public property for system infrastructure such as lines and pipes. It also grants exclusive rights to provide cable television within the City. Revenues are typically received in the later part of the fiscal year, with the largest payment from Electric in April. Franchise fees remain relatively stable. MID-YEAR UPDATE OTHER REVENUE is made up of a variety of relatively small revenue categories including Licenses and Permits, Intergovernmental, Use of money and Property, and Miscellaneous Public Safety Revenues. Other revenue includes one-time payments that the City may receive. Staff anticipates other revenue will meet budget projections and fluctuations are due to timing of receipts. The spike in April of FY 2022- 23 is from a one-time settlement payment. MID-YEAR UPDATE REGULAR SALARIES in the first half of the year were under budget primarily due to the City’s vacant positions. Several vacancies are in the hiring process; however, there have been delays in both full and part time hiring due to ongoing labor market constraints. Departments have utilized some of this savings to absorb other unanticipated impacts. A request to increase aquatics due to heightened pool activities has been proposed. OTHER PAY & BENEFITS include part-time salaries, medical benefits, insurance, the City’s health and wellness program, tuition reimbursement, employee benefits and overtime. Medical Benefits, Insurance, part-time salaries, and overtime comprise most of this category. Overtime is well monitored in the City but fluctuates based on unanticipated events and emergencies. During the first half of the fiscal year, overtime was lower than budget projections as many scheduled events occur in the summer. Staff has proposed an increase in overtime movie detail, balanced by movie detail revenue. EXPENDITURES MID-YEAR UPDATE RETIREMENT The City offers a defined benefit plan through California Employees’ Public Retirement System (CalPERS) to manage the pension and health benefits. CalPERS is the largest pension fund in the nation offering benefits to 1.6 million public employees, retirees, and their families. The FY 2023-24 budget includes the required increases estimated by CalPERS to pay down the unfunded actuarial liabilities of all plans. Funding for these payments is included in the City’s operating budget, spread across several funds, including the General Fund. The City’s unfunded liabilities and the payments required to pay off those liabilities are calculated by CalPERS’ actuarial staff. These calculations are made annually and can change the amount of the City’s unfunded liabilities based on a number of factors, including variances from expected results relative to investment returns and employee demographics, as well as any changes in the assumptions that CalPERS uses to make their calculations. Over the last couple of years, CalPERS has phased in the reduction in their investment return assumption, taking it from 7.5 percent to 6.8 percent. This change and CalPERS negative returns on investments has resulted in significant increases in the City’s unfunded liabilities in recent years, in spite of the fact that the City has been making its required payments on its unfunded liabilities. This change in investment return assumptions is also a primary factor in the projected increases in future contributions that will be required to pay off the City’s unfunded pension liabilities. These increases will hinder the City’s ability to fund other services. The California Public Employees’ Pension Reform Act (PEPRA) of 2013 became effective on January 1, 2013. PEPRA primarily affects new members. PEPRA’s primary areas of impact concern limiting benefit formulas, increasing the time of final average compensation period, pensionable compensation, setting a salary cap and increasing the employee retirement contributions. Termination of the City’s contract with CalPERS would require the payment of a termination fee to guarantee the payment of pension obligations that have already accrued. This fee would be several times the current unfunded pension liability. The City prepays the unfunded liability portion at the beginning of the fiscal year for substantial savings. MID-YEAR UPDATE The City engages in contracts with vendors to avail various services, including specialized consulting, legal, financial, landscape and facility maintenance, and program support, on a contractual basis. Maintenance and Operations constitutes 48 percent of the overall General Fund Budget for FY 2023-24. The primary General Fund M&O expenditures for FY 2023-24 include $6.8 million for Fire Contract services (which accounts for 34 percent of M&O), $1.3 million for Refuse, $2.6 million for General Liability, Property Insurance, and Workers Compensation, $1.0 million for West-Comm Contract services, and $1.0 million for Street Maintenance Contracts. Increases in contract costs are mainly attributed to State-mandated prevailing and/or minimum wage hikes, alongside the integration of additional City infrastructure and/or emergency repairs (such as streets, trees, community centers, signalized intersections, etc.). The Mid-Year Report indicates that the recent storms have had an increasingly negative effect on expenditures beyond the amounts projected in this report. The Public Works Department estimated expenditures exceed their year-end projections as a result of these unforeseen events. Additionally, landscape contracts have had significant increases since budget adoption. CITY OF SEAL BEACH Fiscal Year 2023-24 Mid-Year Budget Update 1 FY 2023-24 Mid-Year General Fund Update 2 FISCAL YEAR 2023-24 Mid-Year Budget Update SOURCES ADOPTED BUDGET YTD-ACTUAL % OF BUDGET ADOPTED BUDGET YTD-ACTUAL % OF BUDGET 01-PROPERTY TAXES 13,648,600 5,726,311 42%14,797,300 6,084,746 41% 02-SALES AND USE TAXES 11,765,700 3,919,472 33%11,307,000 3,811,888 34% 03-UTILITY USERS TAX 4,170,000 2,132,422 51%4,500,000 2,325,571 52% 04-TRANSIENT OCCUPANCY TAX 1,250,000 518,565 41%1,600,000 533,289 33% 05-FRANCHISE FEES 1,091,000 206,042 19%1,090,000 230,613 21% 06-OTHER TAXES 630,800 480,612 76%850,800 728,714 86% 07-LICENSES AND PERMITS 967,100 601,794 62%859,000 534,698 62% 08-INTERGOVERNMENTAL 146,000 19,421 13%146,000 36,199 25% 09-CHARGES FOR SERVICES 2,997,600 1,612,216 54%3,276,600 1,684,944 51% 10-FINES AND FORFEITURES 1,917,500 471,247 25%2,005,100 625,981 31% 11-USE OF MONEY AND PROPERTY 675,000 315,547 47%704,000 197,647 28% 13-OTHER REVENUES 162,400 107,842 66%94,200 310,733 330% TOTAL OPERATING REVENUE 39,421,700 16,111,490 41%41,230,000 17,105,022 41% 14-TRANSFERS IN 924,700 733,500 79%924,700 - 0% TOTAL REVENUES & SOURCES 40,346,400 16,844,990 42%42,154,700 17,105,022 41% FY 2022-2023 FY 2023-2024 FY 2023-24 General Fund 3 FISCAL YEAR 2023-24 Mid-Year Budget Update Property Taxes, $14.8 M, 35% Sales Tax, $11.3 M, 27% Utility Users Tax, $4.5 M, 11% Other Revenues, $2.7 M, 6% Charges for Services, $3.3 M, 8% Fines and Forfeitures, $2.0 M, 5% Transient Occupancy Tax, $1.6 M, 4% Franchise Fees, $1.1 M, 2% Licenses and Permits, $0.9 M, 2% Property Tax Sales Tax Utility Users Tax Franchise Fees Transient Occupancy Tax 73% 79% Property Tax Seal Beach Assessed Valuation FY 2023-24 •$7.1 Billion Orange County Assessor •6,493 Parcels •7.2% change from FY 2022-23/County 6.41% •Median Detached Single-Family Home $1.35 M •Property Tax $14.8 M •35% of General Fund •Stable Revenue Source •.15 of $1.00 •On Budget FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 Millions Sales Tax Sales Tax Components $11.3 M: •Largest Consumer Goods and Restaurants •3Q23 Seal Beach down -3.8% •Receipts under from the same time as last year •4Q23 State down -2.5% FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 2015A2016A2017A 2018A 2019A 2020A 2021A2022A2023A 2024BMillions Sales Tax Transaction Tax PS Sales Tax Utility Users Tax (UUT) UUT $4.5 M Budget 11%: •Anticipate $600,000 •Electric, Natural Gas, Telecommunications •Lowered in 2014 •General Government FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024BMillions Transient Occupancy Tax (TOT) TOT $1.6 M: •3 Hotels •The Pacific Inn •Ayres •Hampton •Continues to exceed all historic levels FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024BMillions Charges for Services Charges for Services 8% $3.3 M: •A fee collected to pay for services related to the activity. •Subsidized by General Fund •Reduction in Parking Meter Revenue FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024BMillions Fines and Forfeitures •Municipal Code Violations •Vehicle Code Violations •Unclaimed Property •Parking Citation Revenue Reduction •No Animal Control Citations – Warnings •Unanticipated Increase in Animal Control Calls FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024BMillions As of July 1, 2023, Seal Beach Police Department took over animal control services FY 2023-24 One-Time Revenue 10 FISCAL YEAR 2023-24 Mid-Year Budget Update •$659,500 Fire Station Bond - Close the Fund •Emergency Pier Reimbursement 2022-23 $1.1 million •May 2016 Pier Fire Final Reimbursement $397,000 •Film Detail $100,915 FY 2022-23 Mid-Year General Fund Update FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE SOURCES ADOPTED BUDGET YTD-ACTUAL % OF BUDGET ADOPTED BUDGET YTD-ACTUAL % OF BUDGET 01-REGULAR SALARIES 9,694,200 4,416,125 46%10,044,256 4,462,556 44% 02-OTHER PAY AND BENEFITS 4,578,000 2,172,418 47%4,874,982 2,149,903 44% 03-RETIREMENT 4,865,000 3,795,153 78%4,959,523 3,812,827 77% 04-MAINTENANCE AND OPERATIONS 19,186,100 10,107,148 53%20,127,015 10,881,495 54% 05-CAPITAL OUTLAY 21,000 - 0%10,000 10,000 100% 06-DEBT EXPENSE 91,800 45,905 50%91,807 45,905 50% TOTAL OPERATING EXPENDITURES 38,436,100 20,536,749 53%40,107,583 21,362,686 53% 07-TRANSFERS OUT 4,591,565 1,398,750 30%15,330,789 1,022,393 7% TOTAL EXPENDITURES & USES 43,027,665 21,935,499 51%55,438,372 22,385,079 40% FY 2022-2023 FY 2023-2024 FY 2022-23 General Fund Expenditures Regular Salaries, $10.0 M, 25% Other Pay and Benefits, $4.9 M, 12% Retirement, $5.0 M, 13% Maintenance and Operations, $20.1 M, 50% FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE Maintenance and Operations •Increased costs due to 2024 Winter Storms •Increased Landscape Maintenance •SBTV-3 •Legal Fees •Body Worn Cameras •Film Detail Reimbursement FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE CC Discretionary, 0.10m, 0%Supplies/Dues/Train ing, 0.93m, 5% Rental/Lease Equipment, 0.14m, 1% Contract Professional, 6.15m, 30% Fire Services, 6.75m, 33% West Comm, 0.97m, 5% Insurance/Workers Comp, 2.63m, 13% Legal, 0.54m, 3% Maintenance, 1.03m, 5% Equipment, Materials, other, 0.92m, 5% Salaries and Benefits •Vacant Positions •Monitoring Sworn Overtime •Prepayment to CalPERS •Increased Pool Staffing FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE City Council Strategic Initiatives 15 FISCAL YEAR 2023-24 Mid-Year Budget Update $75,000 for the Citywide IT Master Plan $325,000 for the License Plate Reader System Upgrade $230,000 for the Locally Controlled Gas Tax Measure and Potential Transaction Use Tax $800,000 for Repaving of the 8th/10th Parking lots with ADA Upgrades $200,000 for the Gas Line Heater at McGaugh Pool $3,682,136 to move the Pool Funding to Lifeguard and Police Substation Headquarters capital project. Next Steps •Start Planning Now •Look for Alternative Funding Options and Seek New Revenue Opportunities •Review Discretionary Spending •Budget Development •Potential Services Delivery Reductions Jan Feb Mar Apr May June Revenue and Expense Projections Personnel Budget Development Departmental Budget Preparation Department CIP Preparation City Manager Review Preliminary Budget Preparation Public Input and Engagement City Council Review Budget Adoption Budget Development Timeline Fiscal Outlook •High inflation/Interest Rates •Heading towards fiscal challenges •Unemployment low •Reductions in Revenues •Expenditures Outpacing Revenues FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE CITY OF SEAL BEACH Fiscal Year 2023-24 Mid-Year Budget Update 17