HomeMy WebLinkAbout1998-02-03; City Council; 14544; Financial Status ReportA
CITY OF CARLSBAD -AGENDA BILL
9/4+/45- @
AB# )y,sYq
MTG. 213198
DEPT. FIN
TITLE:
1997-98 SECOND QUARTER
FINANCIAL STATUS REPORT, BUDGET
AMENDMENTS, AND AN AMENDMENT TO THE
AGREEMENT BETWEEN THE CITY OF CARLSBAD
AND WATSON WYATT & COMPANY
RECOMMENDED ACTIONS:
1. Accept the Second Quarter Financial Status Report for 1997-98.
2. Adopt Resolution No. 9 8 -28 increasing the revenue estimates and appropriations
for fiscal year 1997-98, and ratifying and authorizing the Mayor to sign an amendment of
the agreement between the City of Carlsbad and Watson Wyatt & Company.
Staff has completed a mid-year update of the revenues and expenditures for the City as of
December 31, 1997. The attached document (Exhibit 2) summarizes the results of the
financial review for the General fund, the Carlsbad Municipal Water District, the Sanitation
Enterprise fund, and the Redevelopment Agency. As a result of the review, several
adjustments to the current budget are being recommended. They will be discussed
throughout the remainder of this report.
Financial Update
General Fund
To date, General fund revenues exceed projections by $4.8 million or 22%. Property taxes
are slightly higher than projected for the first half of the year, while sales tax revenues are
ahead of budget by $975,000 or 16%.
Development-related revenues are ahead of expectations and include engineering fees,
planning fees, building permits and fees, and other licenses and permits. The engineering and
building departments have experienced a significant increase in activity, particularly for large
development projects. Through December 1997, the City has issued permits for 734 dwelling
units and 1,002,438 square feet of commercial/industrial space. Compared to the previous
year at this time, the City has issued permits for 397 more dwelling units and 537,979 more
square footage of commercial/industrial space.
Other Funds
Revenue for the Water Operations fund, at $8.1 million, is ahead of expectations. An
increase in the number of water customers resulted in an increase in water sales and
purchased water costs. Through December, the Water Enterprise has an operating income of
$1 .O million.
Revenue for the Sanitation Enterprise is also ahead of the expectations at $2.7 million due to
an increase in the number of customers. Expenses, at $2.0 million, are slightly below the
previous year due to lower Encina Water Authority operating costs. To date the Sewer
I
4
. ;AGE TWO OF AGENDA BILL NO. jy. 549
Operations fund has an operating income of $787,000.
Revenues for the Redevelopment Agency total $657,000 which
previous year. Expenses are as expected through December.
BUDGET REVISIONS
General Fund Revenues
Based upon the financial results
revenue estimates for the General
is essentially equal to the
through December, staff recommends an increase in the
fund totaling $6.1 million as detailed below and in Exhibit 3.
General Fund Current
Revenue Category Estimate
Taxes $30.407.326
Revised
Estimate
$33.530.000
Change in
Estimate
$3.122.674
Licenses and Permits I 3.133,ooo I 4,075,ooo I 942,000
State Subventions I 2.812.092 1 2.812.0!
Charaes for Services
Finesand Forfeitures
Interest
I 32 0
331.996 1 6:900:000 2.068.004
‘33o;ooo ‘330,000
,
0
425.000 1.425.000 0
Interdepartmental Charges
Other Revenue Sources
Total General Fund
1,650,OOO 1,650,OOO 0
521.297 521.297 0 I I I $45,110:711 I $51.243:389 1 $6.132,678
Tax revenue is estimated to increase by $3.1 million. The majority of the increase, $2.1 million,
is for the property tax and sales tax estimates. Property tax revenues are estimated to
increase by $1.0 million based on the County’s report of final assessed values for the City of
Carlsbad. Sales tax revenue is estimated to be $1.1 million higher than the current estimate
based on receipts to date and the addition of the Carlsbad Company Stores. The remainder of
the increase in the tax revenue estimate is for transient occupancy tax, franchise taxes, and
transfer tax.
Under the categories of licenses and permits and charges for services, much of the increase
($2.2 million) is the result of a substantial increase in development activities and a number of
very large projects progressing through the development process. Other increases are
projected in the areas of business licenses, ambulance fees, and recreation fees. Further
detail can be found in the attached Financial Status Report.
General Fund Appropriations
Some of the development-related costs, as well as other costs, have increased as the
revenues have grown. The following increases in appropriations are recommended.
PAGE THREE OF AGENDA BILL NO. 1 Y. 5 Y Y
1 GENERAL FUND Requested 1
Department Appropriations
Human Resources - Performance Mgmt. & Comp. Plan training $95,000
Human Resources - Survey equipment 15,000
Community Development - New computer 3,000
Recreation Oos. - Replace stolen eauipment and increase securitv 7.388
Recreation Fee Spt. - Provide additional recreation programs 153,890
Lagoon - Extra patrol shifts 2,040
Engineering - Additional support for plan check and inspection 325,000
Parks - Maintain ideal conditions of parks 25,000
TOTAL GENERAL FUND $626.318
The Human Resources department has been redesigning the Performance Management and
Compensation Plan and is beginning the implementation and training phase of this project. This
is a major change effort which will involve extensive training of all 100 management employees.
In addition, specific training will be designed and delivered to the senior management team of
the City who are tasked with the responsibility of ensuring a successful implementation. Staff is
recommending that the Council ratify Amendment No. 3 of the agreement between the City of
Carlsbad and Watson Wyatt & Company, the consultants who performed the performance
appraisal and compensation system design phase of this project. Additional appropriations in
the amount of $95,000 are requested to partner with Watson Wyatt & Company, as described
in Amendment No. 3, to design and deliver the training for a successful implementation.
During the training and implementation of the City’s new Performance Management and
Compensation System, all management employees will need to be surveyed twice to gather
information about the process and ensure a successful implementation. Staff requests an
additional appropriation of $15,000 for the computer and phone system necessary to conduct
the surveys.
The Community Development department requests additional funding in the amount of $3,000
to purchase a computer for the new Office Specialist position that was adopted in the 1997-98
operating budget. Computer costs were not included in the original budget request when the
position was adopted by Council.
Additional appropriations in the amount of $7,388 are requested for the operations segment of
the Recreation department. The Harding Community Center was broken into on the weekend
of December 20th and again on December 27th and 28th. Staff requests additional funding to
replace the stolen computer equipment, increase security guard services, and repair the
scoreboard system.
The Fee Supported segment of the Recreation department has experienced a tremendous
increase in participation in the following programs: Aquatics, Youth and Adult Sports,
Excursions, Instructional Classes and Special Events. This increase is attributed to program
popularity, higher demand to use City facilities, and the unusual warm weather this past
3
GAGE FOUR OF AGENDA BILL NO. ) Yi SW
summer. Additional appropriations in the amount of $153,890 are requested to support these
programs with part time staff, recreation instructors, excursion leaders, and miscellaneous.
supplies. It is estimated that the City will realize $138,700 in additional revenue from these
programs.
Due to the extremely warm summer, use of the Agua Hedionda Lagoon increased, resulting in
the need for extra patrol shifts to ensure proper safety. Therefore, the Agua Hedionda Lagoon
staff request additional appropriations in the amount of $2,040.
As mentioned earlier, the Engineering department has realized a significant increase in activity
and revenues to date have far exceeded the estimate. The high level of plan check and
inspection submittals resulted in a corresponding increase in expenditures. The increased
number of plan checks have been processed by contract plan checkers and temporary
employees. The increase in the inspection workload is being managed through the use of
contract inspection. Staff requests additional appropriations in the amount of $325,000 for the
Engineering department for contract plan checking costs, temporary help, and for contract
inspection costs.
The Parks department is requesting an appropriation of $25,000 to perform routine
maintenance of the City parks, such as mowing, pulling weeds, and general clean-up. Current
workers have been needed for a longer duration, during the first half of the fiscal year, than
anticipated because of mild weather conditions and public use of the parks. The addition of
Poinsettia Park, and the City’s commitment to maintaining all the parks in the best condition,
has resulted in the need for additional funding.
Capital Improvement Proiect Requests
Additionally, some changes in appropriations are recommended for the Capital Improvement
Program projects. More detail can be found in Exhibit 5.
I 1 Requested 1
CAPITAL IMPROVEMENT PROGRAM PROJECT
Pavement Manaaement Proiect
Fund Appropriations
TransNet/Local 300.000
Carlsbad Blvd. U-turn at Poinsettia Lane
Carlsbad Blvd. Bike lane
Village Area sidewalk and curb reconstruction
Gas Tax
Gas Tax
Gas Tax
20,000
20,000
40,000
Ocean Street beach access reconstruction GCC 251000
Fire facilities - removal of underaround fuel tanks GCC 10.000
1 TOTAL CIP REQUESTS 415,000 1
Staff requests an additional appropriation of $300,000 for the Pavement Management Program
to pay for staff time spent this year developing future years pavement management projects
and to do preliminary design work on pavement management projects which need
reconstruction rather than sealing or overlay. This funding could be moved up from a future
year. Funds may be borrowed from the General Capital Construction fund which will be repaid
from TransNet/Local revenues early in the next fiscal year.
PAGE FIVE 0~ AGENDA BILL NO .
The following capital projects require additional funding from the Gas Tax fund balance since
the preliminary review indicates the cost of the proposed work will exceed original expectations:
l Carlsbad Boulevard U-turn at Poinsettia Lane - additional $20,000
l Carlsbad Boulevard bike lane - additional $20,000
Staff requests a new project, called the Village Area Sidewalk and Curb Reconstruction due to
recent increased liability concerns. Appropriations in the amount of $40,000 are requested
from the Gas Tax fund balance to pay for preliminary engineering and redesign. The total
projected construction costs is approximately $450,000 over several years. The preliminary
engineering will help to refine costs and provide strategies for completing the project.
The Ocean Street beach access reconstruction requires additional funding in the amount of
$25,000 from the General Capital Construction (GCC) fund balance since the preliminary
review indicates the cost of the proposed work will exceed original expectations.
Finally, $10,000 in appropriations is requested from the GCC fund balance for the removal of
the underground fuel storage tanks at Fire Station No. 1. This project was scheduled in a
future fiscal year, but the work must be done this year or the City could be subject to a fine.
FISCAL IMPACT
Staff is recommending increases in the operating revenue estimates of $6,132,678 and
additional appropriations of $626,318 resulting in an increase to the General fund balance of
$5,506,360. Further detail can be found in Exhibits 3 and 4.
For the Capital Improvement Program projects, staff is recommending the following increases
in appropriations from fund balance:
CIP Fund
TransNet
Gas Tax
Increase in
Appropriations
$300,000
80.000
GCC 35,000
Total Increase in Appropriations $415,000
Additionally, staff recommends borrowing $300,000 from the General Capital Construction fund
balance to the TransNetILocal fund, which will be repaid from TransNetILocal revenues early in
the next fiscal year, to fund the Pavement Management Program expenses.
The approval of these Capital Improvement Program projects will not impact the scheduling or
timing of any other CIP project.
ENVIRONMENTAL IMPACT
The two new public works projects, the removal of the underground fuel storage tanks at
Fire Station No. 1 and the Village Area Sidewalk and Curb Reconstruction, were reviewed
by the Planning Director and have been found to be categorically exempt pursuant to
Section 15301 and 15304 of CEQA. Upon project approval, the Planning Director will
5
,’ F;AGESIX~FAGENDAB~LLNO. 14jW!
issue notices of exemption for these two projects. The other four projects were also
reviewed for environmental compliance and were found to be categorically exempt from
CEQA.
EXHIBITS
1. Resolution No. 98 -28 increasing the revenue estimates and appropriations for
fiscal year 1997-98, and ratifying and authorizing the Mayor to sign an amendment of the
agreement between the City of Carlsbad and Watson Wyatt & Company.
2. Second Quarter Financial Status Report for 1997-98.
3. Revised revenue estimates for 1997-98.
4. Revised operating appropriations for fiscal year 1997-98.
5. Revised Capital Improvement Program appropriations for fiscal year 1997-98.
6
d
I .
4
;
t
E
1c
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
RESOLUTION NO. 98-28
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, INCREASING
THE REVENUE ESTIMATES AND APPROPRIATIONS
FOR 1997-98, AND RATIFYING AND AUTHORIZING
THE MAYOR TO SIGN AMENDMENT NO. 3 TO THE
AGREEMENT WITH WATSON WYATT & COMPANY
TO DESIGN AND DELIVER TRAINING FOR THE
PERFORMANCE MANAGEMENT AND COMPENSATION
PLAN.
WHEREAS, the financial results through December reflect
revenue receipts which are $4.8 million ahead of the estimate and much of
the increase is related to development activity which may continue; and
WHEREAS, the City has also realized an increase in expenses for
the first half of the year; and
WHEREAS, total appropriations for each fund may only be
increased or decreased by authonzation of the City Council; and
WHEREAS, the City Council approved an agreement with Watson
Wyatt & Company dated February 24,1997 to design and develop a
Performance Management & Compensation System; and
WHEREAS, the City Council has previously approved
Amendment No.1 and Amendment No. 2 to the agreement with Watson Wyatt
& Company.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That estimated revenues will be increased by $6,132,678 as
shown in Exhibit 3.
3. That budgeted appropriations for the General fund will be
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
increased by $626,318 as shown in Exhibit 4.
4. That a loan in the amount of $300,000 is authorized from the
General Capital Construction fund balance to the TransNet/Local fund.
5. That budgeted appropriations for Capital Improvement Projects will
be increased by $415,000. Appropriations will be increased by $300,000 from
the TransNetlLocal fund, $80,000 from the Gas Tax fund balance, and
$35,000 from the General Capital Construction fund balance to fund the
projects, as shown in Exhibit 5.
6. That the Mayor of the City of Carlsbad is authorized to sign the
amendment to the contract between the City of Carlsbad and Watson Wyatt &
Company attached hereto.
PASSED, APPROVED AND ADOPTED at a regular meeting of
the City Council on the day of 3rd February , 1998, by the following
vote, to wit:
AYES: Council Members Lewis, Finnila, Nygaard, Kulchin, and Hall
NOES: None
ABSENT: None
ATTEST:
ALETHA L. RAUTENKRANZ, City Cleri( (SEW
AMENDMENT NO. 3 TO AGREEMENT
THIS AGREEMENT, made and entered into as of the 1998, by 19* day of Januarv
and between the CITY OF CARLSBAD, a municipal corporation, hereinafier referred to as
“City”, and WATSON WYATT & COMPANY, hereinafter referred to as “Contractor.”
RECITALS
City requires the services of a human resources consulting firm with expertise in
performance appraisal and compensation systems development to assist in training employees
and implementing the revised performance-based management compensation plan; and
Contractor possesses the necessary skills and qualifications to provide the services required by
the City;
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
I. CONTRACTOR’S OBLIGATIONS
Contractor’s obligations will include design, development and delivery of on-site training,
training materials, and a “tool kit” (employee handbook) for approximately 100 management
employees in the areas of I) performance planning / competencies 2) performance planning /
goal setting, 3) coaching, counseling and feedback, and 4) evaluation and compensation
administration. Each module will be offered approximately six weeks apart, respectively, and
conducted four times over a two day period. This will allow for approximately 25 participants
per 4 hour training session.
In addition, specific training will be designed and delivered to the Leadership Team who are
tasked with the responsibility of ensuring successful implementation of the Performance
Management and Compensation plan. Specific training for the Leadership Team will provide in-
rev. 1 O/22/97
1
* -
.
, 1
depth executive briefings on the administration of each of the above four modules in addition to a
module on Integrating Goal and Performance Planning Efforts. The Leadership Team training on
each module will be conducted prior to the “just-in-time” training sessions on each module for the
management employees.
2. CITY OBLIGATIONS
The City shall provide any documents, access to personnel, scheduling of employees,
facilities, audiovisual equipment, in addition to any interim reviews and approvals that are
necessary for Contractor to complete. their scope of work.
3. PROGRESS AND COMPLETION
The work under this contract will begin immediately after receipt of notification to proceed
by the City. Training will be completed by December 31, 1998. Extensions of time may be
granted if requested by the Contractor and agreed to in writing by the Human Resources
Director. The Human Resources Director will give allowance for documented and substantiated
unforeseeable and unavoidable delays not caused by a lack of foresight on the part of the
Contractor, or delays caused by City inaction or other agencies’ lack of timely action.
4. FEES TO BE PAID TO CONTRACTOR
The total fee payable for the services to be performed as outlined in Exhibit “A* shall be
$95,900. No other compensation for services will be allowed except those items covered by
supplemental agreements per Paragraph 8, “Changes in Work.” The Cii reserves the right to
withhold a ten percent (10%) retention until the project has been accepted by the City.
5. DURATION OF CONTRACT
This agreement shall extend for a period of one year from date thereof. The contract may
be extended by the City Manager for an additional one (1) year period or parts thereof, based
upon a review of satisfactory performance and the City’s needs. The parties shall prepare
extensions in writing indicating effective date and length of the extended contract.
2
rev. 1 O/22/97
,
6. PAYMENT OF FEES
Payment of approved items on the invoice shall be mailed to the Contractor within 30
days of receipt of the invoice.
7. FINAL SUBMISSIONS
Within IO days of completion and approval of the Human Resources Director the
Contractor shall deliver to the City the following items:
1). a “tool kit” (employee handbook),
8.
2) one set of training materials for management employees, and
3) one set of training materials for the Leadership Team. .
CHANGES IN WORK
If, in the course of the contract, changes seem merited by the Contractor or the City, and
informal consultations with the other party indicate that a change in the conditions of the contract
is warranted, the Contractor or the City may request a change in contract. Such changes shall
be processed by the City in the following manner: A letter outlining the required changes shall be
forwarded to the City by Contractor to inform them of the proposed changes along with a
statement of estimated changes in charges or time schedule. A Standard Amendment to
Agreement shall be prepared by the City and approved by the City according to the procedures
described in Carlsbad Municipal Code Section 3.28.172. Such Amendment to Agreement shall
not render ineffective or invalidate unaffected portions of the agreement.
9. COVENANTS AGAINST CONTINGENT FEES
The Contractor warrants that their firm has not employed or retained any company or
person, other than a bona fide employee working for the Contractor, to solicit or secure this.
agreement, and that Contractor has not paid or agreed to pay any company or person, other than
a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other
consideration contingent upon, or resulting from, the award or making of this agreement. For
3
rev. 10122197
1 -
breach or violation of this warranty, the Cii shall have the right to annul this agreement without
liability, or, in its discretion, to deduct from the agreement price or consideration, or otherwise
recover, the full amount of such fee, commission, percentage, brokerage fees, gift, or contingent
fee.
10. NONDlSCRlMlNATlON CLAUSE
The Contractor shall comply with the state and federal laws regarding nondiscrimination.
11. TERMINATION OF CONTRACT
In the event of the Contractor’s failure’ to prosecute, deliver, or perform the work as
provided for in this contract, the City Manager may terminate this contract for nonperformance by
notifying the Contractor by certified mail of the termination of the Contractor. The Contractor,
thereupon, has five (5) working days to deliver said documents owned by the City and all work in
progress to the Human Resources Director. The Human Resources Director shall make a
determination of fact based upon the documents delivered to City of the percentage of work
which the Contractor has performed which is usable and of worth to the City in having the
contract completed. Based upon that finding as reported to the Cii Manager, the Manager shall
determine the final payment of the contract.
This agreement may be terminated by either party upon tendering thirty (30) days written
notice to the other party. In the event of such suspension or termination, upon request of the
City, the Contractor shall assemble the work product and put same in order for proper filing and
closing and deliver said product to City. In the event of termination, the Contractor shall be paid
for work performed to the termination date; however, the total shall not exceed the lump sum fee
payable under paragraph 4. The City Manager shall make the final determination as to the
portions of tasks completed and the compensation to be made.
4
iv. 10/22/97
-
12. DISPUTES
If a dispute should arise regarding the performance of work under this agreement, the
following procedure shall be used to resolve any question of fact or interpretation not otherwise
settled by agreement between parties. Such questions, if they become identified ‘as a part of a
dispute among persons operating under the provisions of this contract, shall be reduced to
writing by the principal of the Contractor or the Human Resources Director. A copy of such
documented dispute shall be fowarded to both parties involved along with recommended
methods of resolution. The Human Resources Director or principal receiving the letter shall reply
to the letter along with a recommended method of resolution within ten (10) days. If the
resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the dispute
shall be forwarded to the City Council for their consideration through the office of the City
Manager. The City Council may then opt to consider the directed solution to the problem. In
such cases, the action of the City Council shall be binding upon the parties involved, although
nothing in this procedure shall prohibit the parties seeking remedies available to them at law.
13. CLAMS AND LAWSUITS
The Contractor agrees that any contract claim submitted to the City must be asserted as
part of the contract process as set forth in this agreement and not in anticipation of litigation or in
conjunction with litigation. The Contractor acknowledges that if a false claim is submitted to the
City, it may be considered fraud and the Contractor may be subject to criminal prosecution. The
Contractor acknowledges that California Government Code sections 12650 et seq., the False
Claims Act, provides for civil penalties where a person knowingly submits a false claim to a
public entity. These provisions include false claims made with deliberate ignorance of the false
information or in reckless disregard of the truth or falsity of information. If the City of Carlsbad
seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation
5
rev. 1 O/22/97
.
costs, including attorneys fees. The Contractor acknowledges that the filing of a false claim may
subject the Contractor to an administrative debarment proceeding wherein the Contractor may be
prevented to act as a Contractor on any public work or improvement for a period of up to five
years. The Contractor acknowledges debarment by another jurisdicti is grounds for the City of
k Carlsbad to disqualify the Contractor from the selection process. 1 nitial)
The provisions of Carlsbad Municipal Code sections 3.32.025,
3.32.028 pertaining to false claims are incorporated herein by reference.
14. STATUS OF THE CONTRACTOR
The Contractor shall perform the services provided for herein in Contractor’s own way as
an independent Contractor and in pursuit of Contractor’s independent calling, and not as an
employee of the City. Contractor shall be under control of the City only as to the result to be
accomplished, but shall consult with the City as provided for in the request for proposal. The
persons used by the Contractor to provide services under this agreement shall not be considered
employees of the City for any purposes whatsoever.
The Contractor is an independent Contractor of the Cii. The payment made to the
Contractor pursuant to the contract shall be the full and complete compensation to which the
Contractor is entitled. The City shall not make any federal or state tax withholdings on behalf of
the Contractor or his/her employees or subcontractors. The City shall not be required to pay any
workers’ compensation insurance or unemployment contributions on behalf of the Contractor or
his/her employees or subcontractors. The Contractor agrees to indemnify the City within 30 days
for any tax, retirement contribution, social security, overtime payment, unemployment payment or
workers’ compensation payment which the City may be required to make on behalf of the
Contractor or any employee or subcontractor of the Contractor, for work done under this
agreement or such indemnification amount may be deducted by the City from any balance owing
6
rev. I O/22/97
‘
.
to the Contractor.
The Contractor shall be aware of the requirements of the Immigration Reform and Control
Act of 1986 and shall comply with those requirements, including, but not limited to, verifying the
eligibility for employment of all agents, employees, subcontractors and Consultants that are
included in this agreement.
15. CONFORMITY TO LEGAL REQUIREMENTS
The Contractor shall cause all drawings and specifications to conform to all applicable
requirements of law: federal, state and local. Contractor shall provide all necessary supporting
documents, to be filed with any agencies whose approval is necessary.
The City will provide copies of the approved plans to any other agencies.
16. OWNERSHIP OF DOCUMENTS.
All final reports delivered under this contract will be the property of the City, whether the
work for which they are made be executed or not. In the event this contract is terminated, all
completed deliverables shall be delivered forthwith to the City. Contractor shall have the right to
make one (1) copy of the plans for his/her records.
17. REPRODUCTION RlGHTS
The Contractor agrees that all copyrights which arise from creation of the work pursuant
to this contract shall be vested in City and hereby agrees to relinquish all claims to such
copyrights in favor of City.
18. HOLD HARMLESS AGREEMENT
Contractor agrees to indemnify and hold harmless the City of Carlsbad and its officers,
officials, employees and volunteers from and against all claims, damages, losses and expenses
including attorneys fees arising out of the performance of the work described herein caused by
any willful misconduct, or negligent act, or omission of the contractor, any subcontractor, anyone
directly or indirectly employed by any of them or anyone for whose acts any of them .may be
rev. 1 O/22/97
7
.
liable.
19. ASSIGNMENT OF CONTRACT
The Contractor shall not assign this contract or any part thereof or any monies due
thereunder without the prior written consent of the Cii.
20. SUBCONTRACTING
If the Contractor shall subcontract any of the work to be performed under this contract by
the Contractor, Contractor shall be fully responsible to the City for the acts and omissions of
Contractor’s subcontractor and of the persons either directly or indirectly employed by the
subcontractor, as Contractor is for the acts and omissions of persons directly employed by
Contractor. Nothing contained in this contract shall create any contractual relationship between
any subcontractor of Contractor and the City. The Contractor shall bind every subcontractor and
every subcontractor of a subcontractor by the terms of this contract applicable to Contractor’s
work unless specifically noted to the contrary in the subcontract in question approved in writing
by the City.
21. PROHIBITED INTEREST
No official of the City who is author&d in such capacity on behalf of the City to negotiate,
make, accept, or approve, or take part in ‘negotiating, making, accepting, or approving of this
agreement, shall become directly or indirectly interested personally in this contract or in any part
thereof. No officer or employee of the City who is author&d in such capacity and on behalf of
the City to exercise any executive, supervisory, or similar functions in connection with the
performance of this contract shall become directly or indirectly interested personally in this
contract or any part thereof.
rev. 1 O/22/97 a
22. VERBAL AGREEMENT OR CONVERSATION
No verbal agreement or conversation with any officer, agent, or employee of the City,
either before, during or after the execution of this contract, shall affect or moclii any of the terms
or obligations herein contained nor entitle the Contractor to any additional payment whatsoever
under the terms of this contract.
23. SUCCESSORS OR ASSIGNS
Subject to the provisions of Paragraph 18, “Hold Harmless Agreement,” all terms,
conditions, and provisions hereof shall inure to and shall bind each of the parties hereto, and
each of their respective heirs, executors, administrators, successors, and assigns.
24. EFFECTlVE DATE
This agreement shall be effective on and from the day and year first written above.
25. CONFLICT OF INTEREST
The City has determined, using the guidelines of the Political Reform Act and the City’s
conflict of interest code, that the Contractor will not be required to file a conflict of interest
statement as a requirement of this agreement. However, Contractor hereby acknowledges that
Contractor has the legal responsibility for complying with’ the Political Reform Act and nothing in
this agreement, releases Contractor from this responsibility.
26. INSURANCE
The Contractor shall obtain and maintain for the duration of the contract and any and all
amendments insurance against claims for injuries to persons or damage to property which may
arise out of or in connection with performance of the work hereunder by the Contractor, his
agents, representatives, employees or subcontractors. Said insurance shall be obtained from an
insurance carrier admitted and authorized to do business in the State of California. The
insurance carrier is required to have a current Best’s Key Rating of not less than VA-V and shall
meet the City’s policy for insurance as stated in Resolution No. 91-403.
9
rev. 1 O/22/97
A. Coverages and Limits.
Contractor shall maintain the types of coverages and minimum limits indicated
herein, unless a lower amount is approved by the City Attorney or City Manager:
1. Comprehensive General Liability Insurance. $1 ,OOO,OOO combined single-
limit per occurrence for bodily injury, personal injury and property damage. If the submitted
policies contain aggregate limits, general aggregate limits shall apply separately to the work
under this contract or the general aggregate shall be twice the required per occurrence limit.
2. Automobile Liability (if the use of an automobile is involved for Contractor’s
work for the City). $l,OOO,OOO combined single-limit per accident for bodily injury and property
damage.
3. Workers’ Compensation and Employer’s Liability. Workers’ Compensation
limits as required by the Labor Code of the State of California and Employer’s Liability limits of
.$I ,OOO,OOO per accident for bodily injury,
4. Professional Liability. .Errors and omissions liability appropriate to the
contractor’s profession with limits of not less than $l,OOO,OOO per claim. Coverage shall be
maintained for a period of five years following the date of completion of the work.
B. Additional Provisions
Contractor shall ensure that the policies of insurance required under this
agreement contain, or are endorsed to contain, the following provisions.
1. The City shall be named as an additional insured on all policies excluding
Workers’ Compensation and Professional Liability.
2. The Contractor shall furnish certiicates of insurance to the City before
commencement of work.
3. The Contractor shall obtain occurrence coverage, excluding Professional
Liability which shall be written as claims-made coverage.
10
rev. 1 O/22/97
4. This insurance shall be in force during the life of the agreement and any *
extension thereof and shall not be canceled without 30 days prior written notice to the City sent
by certified mail.
5. If the Contractor fails to maintain any of the insurance coverages required
herein, then the City will have the option to declare the Contractor in breach, or may purchase
replacement insurance or pay the premiums that are due on existing policies in order that the
required coverages may be maintained. The Contractor is responsible for any payments made
by the City to obtain or maintain such insurance and the Cii may collect the same from the
Contractor or deduct the amount paid from any sums due the Contractor under this agreement.
27. RESPONSIBLE PARTlES
The name of the persons who are authorized to give written notices or to receive written
notice on behalf of the City and on behalf of the Contractor in connection with the foregoing are
as follows:
For Ci: Tiie Human Resources Director
Name Ann Cheverton
Address 1200 Cartsbad Village Drive
Carl&ad. CA 92008
For Contractor: Title Practice Leader Compensation
Name Luellen Lucid/ PaulMee
Address 15303 Ventura Blvd. Suite 700
Sherman Oaks. CA 91403-3197
28. BUSINESS LICENSE
Contractor shall obtain and maintain a City of Carlsbad Business License for the duration
of the contract.
rev. 1 O/22/97
11
i - .
29. ENTIRE AGREEMENT
This agreement, together with any other written document referred to or contemplated
herein, embody the entire agreement and understanding between the parties relating to the
subject matter hereof. Neither this agreement nor any provision hereof may be amended,
modified, waived or discharged except by an instrument- in writing executed by the party against l
which enforcement of such amendment, waiver or discharge is sought.
. Executed by Contractor this 19th
CONTRACTOR:
Paul Mee. Vice President
s (print name/title) 1
. . .
By: (sign here)
(print name/title)
ATTEST:
City Clerk
(Proper notarial acknowledgment of execution by Contractor must be attached.)
(President or vice-president and secretary or assistant secretary must sign for corporations. If only one officer signs, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering that officer to bind the corporation.)
APPROVED AS TO FORM:
RONALD R. BALL
rev. 1 O/22/97
12
-
CALlFORNlA ALL-PURPOSE ACKNOWLEDGMENT
State of CALlFmNlA
County of LOS ANCELGS
On t\PNuAtC.3 19.1996 DATE ’ before me, AllAm4 C,-PiRICH; dd~WL )
NAME, TITLE OF OmCER -E.G., ‘JANE DOE, NOTARY PUBLIC”
personally appeared %kul V. Mee I NAME(S) OF SIGNER(S)
@fpersonally known to me . . . -OR--
to be the person@ whose name(#) is&e
subscribed to the within instrument and ac-
knowledged to me that he/&&hey executed
the same in his/be&++& authorized
capacity@%+, and that by his/he&bet+
signature(sj on the instrument the person(sj,
or the entity upon behalf of which the
person(S?I acted, executed the instrument.
WITNESS my hand and official seal.
SIGNATURE OF NOTARY
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRU’TION OF ATTACHED DOCUMENT
0 lNDlVlDUAL
u CORPORATE OFFICER
S$P.&
A-& ipduwn Wq o&Car-Mad
undWWoatta8C
TITLE OR TYPE OF DOCUMENT
0 PARTNER(S) 0 LIMITED q GENERAL
; ATTOMY;;t+FACT
TRU
0 GUARDlAN/CONSERVATOf?
0 OTHER:
SIGNER Is REPRESEm ~~pERsoNo~~W4
I3
NUMBER OF PAGES
&nua~ 19, I998
BATE OF DOCUMENT
&+-\?a L.T&xkenkrbnz ’
ROddR.~~\
SIGNER(S) OTHER THAN NAMED ABOVE
@I993 NATIONAL NOTARY ASSOClATtON l 9239 Remmet Ave., P.O. Box 7194 l Canoga Park. CA 91309-7194
-.
WATSON WYATT & COMPANY
CERTIFICATE OF ASSISTANT SECRETARY
I, James S. Minogue, III, Assistant Secretary of Watson Wyatt & Company, a
Delaware corporation (the “Company”), do hereby certify that:
1. I am the duly elected, qualified and acting Assistant Secretary of the Company;
2. The resolutions attached hereto as Exhibit A are true and complete copies of the
resolutions duly adopted at a meeting of the Board of Directors of the Company on November
22, 1996, and such resolutions are in full force and effect as of the date hereof.
3. - Pursuant to such resolutions Paul V. Mee, Vice President and Western Regional
Manager has been delegated the authority to bind the Company and is authorized to execute an
agreement for the provision of consulting services to the City of Carlsbad, California.
IN WITNESS WHEREOF, I have hereunto set my hand and have affixed the corporate
seal as of the 28th day of January, 1997.
[SEAL] \A4 sistant Secretary u
- ,’
Exhibit A
RESOLVED, that the President and Chief Executive Officer, the Executive Vice President and Chief
Operating Officer, the Vice President and Chief Financial Offker, the General Counsel, and any
Regional Manager are hereby authorized and empowered in the name and on behalf of the Company to
execute and deliver any contracts (including confidentiality agreements, engagement letter agreements
and software license agreements) to provide professional services (in the case of Regional Managers,
within said Regional Manager’s respective jurisdiction) to clients;
FURTHER RESOLVED, that the Regional Managers and the Executive Vice President and Chief
Operating Officer are hereby authorized to redelegate, in their discretion, to Managing Consultants,
National/Global Practice Directors, regional or local practice directors, account managers or other
senior consultants the authority to execute and deliver any contracts (including confidentiality
agreements, engagement letter agreements and software license agreements) to provide professional
services to clients serviced by the respective office or practice, provided however, that any bucii
agreement pursuant to which the aggregate fees anticipated to be received by the Company will be
greater than US$l,OOO,OOO shall also require the signature of the Regional Manager; and
g:\colpkccclt\formsbsstsety.doc
.
,’ -
EXHIBIT A
Performance Management and Compensation Program Training
Scope of Work and Fee Schedule
TRAINING FOR 100 MANAGEMENT-STAFF:
Development of Training Materials*
l Performance PlanningICompetencies
l Performance Planning/Goal Setting
l Coaching, Counseling & Feedback
l Evaluation & Compensation Administration
Delivery of Training Modules with Kathy Bums
l 7 days (14 sessions) @ $2,00O/day
l 1 day (2 sessions) @ $2,60O/day
Estimated Expenses**
As
Negotiated
$28,000
$16,660
$5,000
TOTAL $49,600
ESTIMATED COSTS FOR LEADERSHIP TEAM TRAINING:
Development of Workshop and Training Materials*
Workshop Facilitation and Delivery of Training with
Kathy Bums
l Up to 4 days @ $2,6OO/day
Expenses**
Not to
Exceed
$15,000
$10,400
$3,600
TOTAL $29,000 .’
Not to
ESTIMATED COSTS FOR OTHER EXPENSES: Exceed
Development of Tool Kit $10,000
Miscellaneous Training Expenses $6,400
TOTAL $16,400
GRAND TOTAL $95,000
l All materials will include only one set of revisions; Watson Wyatt will deliver one set of
materials to the City of Carlsbad and the City will reproduce and distribute the required number
of copies.
* Watson Wyatt charges 5% for administrative expenses and charges out-of-pocket
expenses (travel, express mail, etc.) at cost. We estimate total expenses for this project to be
approximately 10% of professional fees.
Exhibit 2
‘Financial Status Report
Prepared by fhe Finance Department
Second Quarter - Fiscal Year 1997-98
INTRODUCTION
For the first six months of
the year, Carlsbad’s
General fund revenues
total $26 million which is
$4.8 million or 22%
ahead of the estimate. A
large portion of the
increase in the General
fund is due to a
continued high level of
building activity which
may continue throughout
the year. Along with the
increase in revenues, the
City has realized an
increase in related
expenditures.
CITY OF CARLSBAD
Property Taxes Planning Fees
ales Tax Building Dept. Fees
Transient Occupancy Tax Ambulance Fees
This report will provide a
closer look at the major
General fund revenue
categories and review the expenditures through December. Revenues and expenditures for the
Water and Sanitation Enterprises and the Redevelopment Agency will also be addressed.
GENERAL FUND
Taxes
Sales tax is the City’s single largest
source of tax revenue. Through
December, sales tax receipts total $7.0
million which is $975,000, or 16%,
ahead of the projections. Gains in sales
tax revenue can be found in leasing,
new auto sales, department stores, and
light industry. Sales tax receipts from
Carlsbad Company Stores are not
reflected in these numbers. We will
begin to see those increases in
February or March 1998.
Tax Revenue
Budget to Actual
December1997
TRANSIENT TAX
SALES TAX
!=RO!‘EFW TAX
0.0 1.0 2.0 3.0 4.0 5.b 6.b 7.0
In millions
0 Budget WActuals
Property tax revenues, of $5.8 million, are 5% or $295,000 ahead of projections to date.
Financial Status Report Page Two
Transient occupancy tax (TOT) receipts year-to-date total $2.7 million, which is an increase of
$374,000 or 16% ahead of expectations. Some of the growth in TOT is due to the opening of the
Four Seasons Resort at Aviara. In addition, tourism throughout San Diego County has been on the
rise.
Franchise taxes are $483,000 and appear to be 29%, or $110,000, ahead of the expected revenue.
However, this is due to a timing difference in the receipt of one of the franchise payments and is
not expected to continue. Franchise fees are calculated as a percentage of gross annual receipts
from the cable TV franchise, the trash collection franchise, and the SDG&E. Transfer taxes total
$242,000 year-to-date and are 87% ahead of expectations. It is difficult to predict if this trend will
continue throughout the year.
Development Fee Revenues
As stated earlier, a
continued high level of
development activity has
resulted in development-
related revenues
significantly ahead of
expectations through
December.
BUILDING PERMITS
Development Fee Revenue
Budget to Actual
December 1997
ENGINEERING
The Economic Bulletin noted
that, BUILDING
“Construction continues
to rebound from San
Diego’s five-year lull of
building activity. More
permits for larger building
projects are being issued,
including single family
homes, multi-unit
residences, and office,
retail, and industrial building projects.“’
PLANNING
0 200 400 600 800 1000 1200 1400 1600
In Thousands
I 0 Budget H Actualsl
Engineering fees, which are received for improvement plan check services and inspections, reflect
this increase in building activity. Engineering fees total $1.5 million and reflect the most significant
variance of $882,000. Through December, engineering fees exceed the revenues budgeted for the
entire year by $247,000. Some of the engineering revenue received was for large development
projects, including Aviara, Carrillo Ranch, The Meadowlands, Ranch0 Verde, Poinsettia Hill,
Poinsettia Shores, Carlsbad by the Sea, Ocean Bluff, Carlsbad Spectrum, and Legoland.
’ Greater San Diego Chamber of Commerce, Economic Bulletin, October 1997. “May 1997 Greater San Diego Chamber of
Commerce Economic Indicators” p. 6.
‘. ‘I
.
‘kancial Status Report Page Three
Building activity in Carlsbad is also reflected in the building permit fees. Receipts from building
permits total $1 .O million and are over projections by $652,000 or 167%. Building permit fees
through December exceed the revenues budgeted for the entire year by $142,000. During
December residential permit activity remained strong, with permits issued for an additional 123 new
homes. This brings the fiscal year total up to 734 residential permits . The City also issued
permits for 278,535 square feet of commercial space in December. Some of the large non-
residential development this fiscal year is for S.M.A.C. Warehouse, Del Dios Inc., Denso
International, Airport Self Storage, Blackmore, Marriott International, Koll, Grand Pacific Resort,
and LEG0 office, security, and maintenance buildings. Compared to the previous fiscal year at this
time, the City has issued permits for 397 more dwelling units and 537,979 more square footage of
commercial/industrial space.
Building department fees are almost twice the previous year’s receipts year-to-date at $695,000.
Building department revenues to date exceed the expected budget by $453,000 or 187%.
Additionally, building department revenues exceed the amount budgeted for the entire year by
$45,000. Due to the increase in activity, the building department budgeted expenditures also
increased in November by $299,550.
Also affected by the increased pace of the building industry were the other licenses and permits
which include grading, plumbing, electrical and various other permits and licenses. These
revenues, at $643,000, exceed expectations by $185,000 or 40%.
Planning fees at $615,000 are $162,000 or 36% ahead of expectations. The majority of the
planning department revenue comes from fees for landscape plan checks and inspections and
from the sale of plans and maps. Compared to the previous year, planning fees have decreased
by $216,000 or 26% through December.
Other Revenue
Budget to Actual
December 1997
up 29%
AMBULANCE FEES
BUSINESS LICENSE
RECREATION FEES
FINE8
FORFElTURES
Other Revenues
Ambulance fee revenues total
$352,000, which is $93,000, or
36%, ahead of projections.
Compared to the previous year at
this time, ambulance fee revenues
have increased by $40,000 or
13%.
Recreation fees total $473,000 and
are $87,000, or 22%, more than
expected through December.
Recreational classes, aquatics VEHICLE LICENSE
FEE programs, special events, and
sports programs make up the
majority of the recreation fees.
Property rental fees total $89,000
and are $8,000 or 10% more than
0 200 400 660 860 1060 1200 14iKl
In Thousands
/OBudget WActual ~
expected through December. Property rental revenue is received from the rental of City facilities,
such as the Senior Center and the pool.
‘hancial Status Report Page Four
Vehicle license fees are ahead of projections by $131,000 or 11%. The State Controller’s office
provides an estimate of how much each city and county should expect to receive for the upcoming
year. Last year’s estimate from the State was conservative and, so far this year, it appears that
vehicle license fees will again exceed expectations.
Fines and forfeitures revenue, at $204,000, is $35,000 or 20% higher than expected. Most of this
revenue comes from State vehicle code violation fines. It is expected that fines and forfeitures
revenue will exceed the estimate for the year based on new legislation which expands the City’s
share of revenue received from moving traffic violation fines.
Business license revenues exceed expectations by $200,000 or 29%. Although the majority of
business license revenue is in the category of business license renewals, there has been a
$26,500 increase in new business licenses.
Interest income totals $741,000 and is ahead of the estimate by $29,000. “Other revenue
sources” total $201,000 and include $41,000 from mandated reimbursements and $115,000 from
developers for local facilities management zones and various studies required prior to
development.
GENERAL FUND REVENUE COMPARISON
ESTIMATE THROUGH ACTUAL THROUGH DOLLAR PERCENT
DECEMBER 1997 DECEMBER 1997 CHANGE CHANGE
Taxes $14,308,170
State Subventions 1,215,117
Licenses and Permits 1,529,533
Charges for Services 2,192,994
Fines and Forfeitures 169,805
Interest 712,500
Interdepartmental Charges 825,000
Other Revenue Sources 317,695
$16,174,924 $1,866,754
1,381,184 166,067
2,566,319 1,036,786
3,976,040 I ,783,046
204,336 34,531
741 ,I 86 28,686
790,649 (34,351)
200,995 (116,700)
13%
14%
68%
81%
20%
4%
-4%
-37%
TOTAL REVENUES $21,270,812 $26,035,633 $4,764,821 22%
‘hancial Status Report Page Five
GENERAL FUND
DETAIL REVENUE COMPARISON
YEAR-TO-DATE FISCAL YEAR
ACTUAL CHANGE FROM PROJECTED
EXPECTED REVENUE EXPECTED PERCENT REVENUE
BUDGET 12/31/97 BUDGET CHANGE 1997-98
LU<ES
PROPERTY TAX 5,481,514 5,776,814 295,300 5% 11,3oo,ooc
SALES TAX 6,023,716 6,998,933 975,217 16% 12,607,326
TRANSIENT TAX 2,300,OOO 2,673,775 373,775 16% 4,600,OOC
FRANCHISE TAX 373,528 483,440 109,912 29% 1,54o,ooc
TRANSFER TAX 129,412 241,962 112,550 87% 360,OOC
3TAL TAXES 14,308,170 16,174,924 1,866,754 13% 30,407,32e
TATE SUBVENTIONS ”
VEHICLE LICENSE FEES 1,215,117 1,345,891 130,774 11% 2,600,OOC
OTHER 0 35,293 35,293 0% 205,OOC
3TAL STATE SUBVENTIONS 1,215,117 1,381,184 166,067 14% 2,805,OOC
ICENSES AND PERMITS
BUILDING PERMITS 390,087 1,041,918 651,831 167% 9oo,ooc
BUSINESS LICENSES 68 1,494 881,350 199,856 29% 1,45o,ooc
LICENSE TAX-CONSTRUCTION 0 0 0 0% C
OTHER LICENSES & PERMITS 457,951 643,051 185,100 40% 783,00C
3TAL LICENSES 8, PERMITS 1,529,533 2,566,319 1,036,786 68% 3,133,00(1
HARGES FOR SERVICES
PLANNING FEES 453,375 615,086 161,711 36% 9oo,ooc
BUILDING DEPT. FEES 242,507 695,489 452,982 187% 650,OOC
ENGINEERING FEES 645,073 1,527,274 882,201 137% 1,280,OOC
AMBULANCE FEES 258,960 351,603 92,643 36% 480,OOC
RECREATION FEES 386,602 473,278 86,676 22% 840,OOC
PROPERTY RENTAL 80,376 88,521 8,145 10% 17o,ooc
OTHER CHARGES OR FEES 126,101 224,789 98,688 78% 404,996
3TAL CHARGES FOR 2,192,994 3,976,040 1,783,046 81% 4,724,996
ERVICES
NES AND FORFEITURES 169,805 204,336 34,531 20% 330,000
ITEREST INCOME 712,500 741,186 28,686 4% 1,425,OOO
ITERDEPARTMENTAL 825,000 790,649 (34,351) 4% 1,650,OOO
HARGES
I-HER REVENUE SOURCES 317,695 200,995 (116,700) -37% 635,389
TOTAL GENERAL FUND 21,270,812 26,035,633 4,764,821 22% 45,110,711
-
‘iinancial Status Report Page Six
Expenditures
To date, $24.0 million has been expended or is committed to be spent in the General fund. This
equals 50.8% of the total $47.4 million budget leaving 49.2% available for the remainder of the
year. At the end of December 1996, 51% of the total expenditures were expended or committed to
be spent. If funds were spent in the same proportion as last year, we would expect to have 49%
available as of the end of December. Thus, expenses are as expected for this time of year.
The following table identifies the allocation of Contingency funds during the fiscal year. To date,
$448,150 has been authorized from the contingency account.
CONTINGENCY ACCOUNT
USE OF FUNDS
Explanation
Adopted Budget
Library internet access
Part time salary adjustment
Building department appropriation
Resolution
Amount Date Number
$1,487,765 6124197 97-518
(3,000) 718197 97-524
(145,600) 10/01/97 97-615
(299,550) 11 I4197 97-675
Current Balance $1,039,615
During September 1997, the Hosp Grove Certificates of Participation were refunded. The bonds
were refunded to take advantage of the lower interest rates available in the bond market at the
time. As a result of the refunding, the General fund will realize annual debt service savings of
approximately $70,000 per year.
A detailed schedule of General fund expenditures is provided on the following page.
A
Financial Status Report Page Seven
TOTAL AVAILABLE %
BUDGET COMMITTED* BALANCE AVAILABLE”
‘EPT DESCRIPTION FY 1997-98 12/31197 12/31/97 12/31197 D
OLICY/LEADERSHIP GROUP
CITY COUNCIL 173,983 96,805 77,178 44.4%
CITY MANAGER 893,414 456,332 437,082 48.9%
CITY CLERK 351,520 153,122 198,398 56.4%
ATTORNEY 571,553 280,481 291,072 50.9%
TREASURER 126,027 39,327 86,700 68.8%
CONTINGENCY 1,039,615 0 1,039,615 100.0%
TOTAL POLICY/LEADERSHIP 3,156,112 1,026,067 2,130,045 67.5%
DMINISTRATIVE SERVICES
FINANCE 1,133,361 626,350 507,011 44.7%
PURCHASING 461,546 206,491 255,055 55.3%
HUMAN RESOURCES I,21 3,424 578,738 634,686 52.3%
NON-DEPARTMENTAL:
DEBT SERVICE - HOSP GROVE 800,068 68 800,000 100.0%
VISITOR’S INFORMATION BUREAU 375,667 375,667 0 0.0%
OTHER NON-DEPARTMENTAL (a) 1,682,160 1,303,659 378,501 22.5%
TOTAL ADMINISTRATIVE SERVICES 5666,226 3,090,973 2,575,253 45.4%
c
c
UBLIC SAFETY
POLICE 10,375,622 5,122,103 5,253,519 50.6%
FIRE 7,738,434 3,954,795 3,783,639 48.9%
TOTAL PUBLIC SAFETY 18,114,056 9,076,898 9,037,158 49.9%
OMMUNITY DEVELOPMENT
COMMUNITY DEVELOPMENT 1,084,581 532,330 552,251 50.9%
PLANNING 2,293,057 I, 129,068 1,163,989 50.8%
BUILDING 1,294,034 738,792 555,242 42.9%
TOTAL COMMUNITY DEVELOPMENT 4,671,672 2,400,190 2,271,482 48.6%
OMMUNITY SERVICES
COMMUNITY SERVICES ADMIN. 626,582 305,030 321,552 51.3%
RECREATION 1,931,454 1,049,576 881,878 45.7%
SENIOR PROGRAMS 308,395 140,754 167,641 54.4%
LIBRARY 2,862,050 1,446,266 1,415,784 49.5%
CULTURAL ARTS 310,790 155,642 155,148 49.9%
TOTAL COMMUNITY SERVICES 6,039,271 3,097,268 2,942,003 48.7%
UBLIC WORKS
PUBLIC WORKS ADMIN. 63,843 4,904 58,939 92.3%
ENGINEERING 3,927,604 2,373,491 1,554,113 39.6%
PARKS 1,951,212 978,448 972,764 49.9%
STREETS & TRAFFIC SIGNALS 2,120,739 1,164,631 956,108 45.1%
FACILITIES 1,645,981 833,376 812,605 49.4%
TOTAL PUBLIC WORKS 9,709,379 5,354,850 4,354,529 44.8%
DTAL GENERAL FUND 47,356,716 24,046,246 23,310,470 49.2%
t--*-n ^^---:&A--l :--,..-I-- ^._^__ A:*..--- 0 ^__.. -L------
Pi
I
TC
l ‘I “La, c;“,,,,l,,lLt3” ,I,G,““es axparl”ll”les a tx,L;“,,,“la,,Ges.
l * Amount available would be 49% if funds were spent in the same proportion as the previous
(a) Other non-departmental expenses include Community Assistance and the Hiring Center
year.
GENERAL FUND
EXPENDITURE STATUS BY DEPARTMENT
‘kiiancial Status Report
WATER ENTERPRISE
Revenues
Page Eight
To date, revenues total $8.1 million which is $427,000 or 5.6% ahead of collections from last year
at this time. Water sales receipts total $5.8 million and are ahead of last year by $137,000 due to
the addition of new customers. Charges for current services are $154,000 more than last year due
to new customers and higher rates. New delivery charges became effective with the l/15/97
through 2/15/97 billing period, so the higher rates were not reflected in the revenues through
1 I/30/96. Also, the rates for larger size meters increased substantially from the previous rates.
Interest income has also increased compared to the previous year by $110,000.
Expenses
Expenses total $7.0 million, an increase of $827,000 compared to last year’s expenses. The
largest expense category for the department, purchased water, shows a $240,000 increase over
the previous year due to the addition of new customers. Materials and supplies reflect a $216,000
increase compared to last year due to an accounting change. Last year supplies were charged
directly to inventory and this year supplies are charged directly to the materials and supplies
account. Staffing expenses are $124,000 higher than the previous year due to a reallocation of
staff expense in the current fiscal year. Capital outlay is $94,000 higher than last year due to the
purchase of a remittance processing system. Through December, the Water Enterprise shows an
operating income of $1 .O million.
CARLSBAD MUNICIPAL WATER DISTRICT
WATER OPERATIONS FUND
DECEMBER 31, 1997
FY 1997-981 Y-T-D Y-T-D % II BUDGET1 12/31/96 12131 I97 DIFFERENCE DIFFERENCE II REVENUES: I WATER SALES 11,300,000 5,680,436 5,817,436 137,000 2.1
CHARGES FOR CURRENT SERVICES 2,545,500 1,366,369 1,520,022 153,653 11.:
FINES, FORFEITURES & PENALTIES 220,000 113,667 104,959 (8,708) (7.7
INTEREST 259,000 260,633 370,330 109,697 42.’
OTHERREVENUES 332,000 214,480 249,626 35,146 16.4
TOTAL OPERATING REVENUE 14,656,500 7,635,585 8,062,373 426,788 5.1
EXPENSES:
STAFFING 2,151,731 900,616 1,024,265 123,649 INTERDEPARTMENTAL SERVICES 876,084 488,015 440,843 (47,172) cb”;
PURCHASED WATER 8,023,OOO 3,893,921 4,134,263 240,342 6.:
MWD/CWA READY-TO-SERVE 307,000 123,927 157,544 33,617 27.’
UTILITIES 100,700 41,342 44,981 3,639 8.1
OUTSIDE SERVICES/MAINTENANCE 324,408 82,873 95,785 12,912 15.l
GENERAL OFFICE EXPENSE 199,507 60,231 56,373 (3,858) (6.4
MATERIALS AND SUPPLIES 444,339 74,766 290,971 216,205 289.:
DEPRECIATION 1,300,000 498,000 650,000 152,000 30.!
CAPITAL OUTLAY 194,858 18,899 113,203 94,304 499.l
MISCELLANEOUS EXPENSES 47,100 13,119 14,146 1,027 7.1
TOTAL OPERATING EXPENSES 13,968,727 6,195,709 7,022,374 826,665 13.:
4
2
‘1
1
4
3
7
‘1
2
1
3
3
)
2
5
3
3
3
1
4 a J’ -.
II OPERATING INCOME/LOSS 687,773
I
1,439,876 1,039,999 (399,877) (27.8
-
. * ,, - Financial Status Report
SANITATION ENTERPRISE.
Page Nine
Revenues
Income to the Sanitation Enterprise totals $2.7 million through December, which is $204,000 higher
than the previous year. Charges for current services are the primary reason for the increase due
to an increase in the number of customers. Interest revenue is also higher than the previous year
by $44,000. This is to be expected with the increase in revenues and operating income.
ExDenses
Expenses total approximately $2.0 million reflecting a decrease of $96,000 compared to the prior
year. The difference reflects lower Encina Water Authority operating costs with two quarterly
payments made so far this year. Interdepartmental services are $36,000 lower than the previous
year due to a reduction in the overhead charged to the Sanitation Enterprise for services received
from the General fund. Interdepartmental charges were budgeted to decrease by $75,000, for the
year, based on the overhead calculations in the updated Cost Allocation Plan.
The Sanitation Enterprise fund shows an operating income of approximately $787,000 through
December 1997.
II CARLSBAD MUNICIPAL WATER DISTRICT
SEWER OPERATIONS FUND
DECEMBER 31,1997
FY 1997-98 Y-T-D Y-T-D %
BUDGET 12/31/96 12/31/97 DIFFERENCE DIFFERENCE
REVENUES:
CHARGES FOR CURRENT SERVICES 4,682,985 2,379,334 2,545,698 166,364 7.c
INTEREST 159,000 153,116 197,465 44,349 29.c
OTHER REVENUES 17,500 9,616 2,575 (7,041) (73.2;
TOTAL OPERATING REVENUE 4,859,485 2,542,066 2,745,738 203,672 8.C
EXPENSES:
STAFFING 655,593 289,093 289,384 291 INTERDEPARTMENTAL SERVICES 193,868 134,779 99,219 (35,560) (26:;
UTILITIES/RENTALS AND LEASES 109,989 26,056 33,291 7,235 27.8
OUTSIDE SERVICES/MAINTENANCE 297,565 18,265 18,652 387 2.1
MATERIALS AND SUPPLIES 89,690 14,221 21,372 7,151 50.3
DEPRECIATION 1,200,000 628,800 600,000 (28,800) (4.6)
ENCINA PLANT SERVICES 1,725,OOO 916,286 871,026 (45,260) (4.9)
CAPITAL OUTLAY 72,045 16,109 10,952 (5,157) (32.0)
MISCELLANEOUS EXPENSES 44,690 10,968 14,365 3,397 31.0
TOTAL OPERATING EXPENSES 4,388,440 2,054,577 1,958,261 (96,316) (4.7)
OPERATING INCOME/LOSS 471,045 487,489 787,477
- A
. I. . a- : Financial Status Report Page Ten
REDEVELOPMENT AGENCY
Revenues
Revenues for the Redevelopment Agency total $657,000 through December 1997. This is
essentially the same as the previous year and on target with the budgeted revenues for the year.
Expenditures
Total expenditures and encumbrances through December are $925,000. All anticipated costs for
annual property rentals are encumbered as of the beginning of the year which is why the available
balance for Rentals and Leases is so low (only 13.8% remaining). Debt expense includes the first
debt service payment on the tax allocation bonds. Thus, Redevelopment Agency expenses are as
expected for this time of the year.
CARLSBAD REDEVELOPMENT AGENCY
OPERATIONS AND DEBT SERVICE FUNDS
DECEMBER 31,1997
REVENUE
FY 1997-98
BUDGET
REVENUES
Y-T-D Y-T-D
12/31/96 12/31/97 DIFFERENCF
PROPERTY TAXES
INTEREST
MISCELLANEOUS REVENUES
TOTAL AVAILABLE %
EXPENDITURES FY 1997-98 COMMITTED BALANCE AVAILABLE
BUDGET 12/31/97 (1) 12/31/97 12/31/97 (2
STAFFING 137,664 86,772 50,892 37.(
INTERDEPARTMENTAL SERVICES 93,452 45,522 47,930 51.:
RENTALS & LEASES 116,685 100,627 16,058 13.t
DEBTEXPENSE 1,077,800 659,808 417,992 38.t
OUTSIDE SERWMAINTJMISC. 204,028 31,986 172,042 84.1
TOTAL EXPENDITURES 1,629,629 924,715 704,914 43.:
EXCESSOFREVENUESOVER
EXPENDITURES (216,329)
(1) Total committed includes expenditures and encumbrances.
(2) Amount available would be 50% is funds were spent evenly throughout the year.
Exhibit 3
CITY OF CARLSBAD
OPERATING FUNDS
REVISED REVENUE ESTIMATES FOR 1997-98
CURRENT REVISED CHANGE
REVENUE REVENUE IN
REVENUE SOURCE ESTIMATE ESTIMATE ESTIMATE
IGENERAL FUND I
TAXES
PROPERTY TAX
SALES TAX
TRANSIENT TAX
FRANCHISE TAX
TRANSFER TAX
TOTAL TAXES
$11,300,000 $12,300,000 1 ,ooo,ooo
12,607,326 13,700,000 1,092,674
4,600,OOO 5,500,000 900,000
1,540,000 1,580,OOO 40,000
360,000 450,000 90,000
30,407,326 33,530,ooo 3,122,674
LICENSES AND PERMITS
BUILDING PERMITS
BUSINESS LICENSES
OTHER LICENSES & PERMITS
TOTAL LICENSES & PERMITS
900,000 1,402,OOO
1,450,000 1,700,000
783,000 973,000
3.133.000 4.075000
502,000
250,000
190,000
942.000
STATE SUBVENTIONS
VEHICLE LICENSE TAX
OTHER
TOTAL STATE SUBVENTIONS
2,600,OOO 2,600,OOO
212.092 212.092
0
0
2,812,092 2,812,092 0
CHARGES FOR SERVICES
PLANNING FEES
BUILDING DEPT. FEES
ENGINEERING FEES
AMBULANCE FEES
RECREATION FEES
PROPERTY RENTALS
OTHER CHARGES OR FEES
TOTAL CHARGES FOR SERVICES
921,000
650,000
1,280,OOO
480,000
840,000
170,000
490,996
4,831,996
921,000
955,000
2,500,000
700,000
1,040,000
170,000
0
305,000
1,220,000
220,000
200,000
0
614,000 123,004
6,900,OOO 2,068,004
FINES AND FORFEITURES 330.000 330.000 0
INTEREST 1,425,OOO 1,425,OOO 0
INTERDEPARTMENTAL CHARGES 1,650,OOO 1,650,OOO 0
OTHER REVENUE SOURCES 521,297 521.297 0
TOTAL GENERAL FUND 45,110,711 51,243,389 6,132,678
- Exhibit 4
L
6 CITY OF CARLSBAD
OPERATING FUNDS
REVISED APPROPRIATIONS FOR FISCAL YEAR 1997-98
CURRENT REVISED
APPROPRIATIONS APPROPRIATIONS INCREASE/
EPT DESCRIPTION FY 1997-98 FY 1997-98 (DECREASE)
iENEf?AL FUND I
OLICYILEADERSHIP GROUP
CITY COUNCIL 173,983 173,983 0
CITY MANAGER 893,414 893,414 0
CITY CLERK 351,520 351,520 0
ATTORNEY 571,553 571,553 0
TREASURER 126,027 126,027 0
CONTINGENCY 1,039,615 1,039,615 0
TOTAL POLICY/LEADERSHIP 3,158,112 3,158,112 0
DMINISTRATIVE SERVICES
FINANCE 1,133,361 1,133,361 0
PURCHASING 461,546 461,546 0
HUMAN RESOURCES 1,213,424 1,323,424 110,000
NON-DEPARTMENTAL:
DEBT SERVICE - HOSP GROVE 800,068 800,068 0
VISITOR’S INFORMATION BUREAU 375,667 375,667 0
OTHER NON-DEPARTMENTAL (a) 1,682,160 1,682,160 0
TOTAL ADMINISTRATIVE SERVICES $666,226 5,776,226 110,000
UBLIC SAFETY
POLICE 10,375,622 10,375,622 0
FIRE 7,738,434 7,738,434 0
TOTAL PUBLIC SAFETY 18,114,056 18,114,056 0
OMMUNITY DEVELOPMENT
COMMUNITY DEVELOPMENT
PLANNING
BUILDING
TOTAL COMMUNITY DEVELOPMENT
OMMUNITY SERVICES
COMMUNITY SERVICES ADMIN.
RECREATION
SENIOR PROGRAMS
LIBRARY
CULTURAL ARTS
TOTAL COMMUNITY SERVICES
UBLIC WORKS
PUBLIC WORKS ADMIN.
ENGINEERING
PARKS
STREETS & TRAFFIC SIGNALS
FACILITIES
TOTAL PUBLIC WORKS
3TAL GENERAL FUND
i ,oa4,5ai I ,087,5ai 3,000
2,293,057 2,293,057 0
1,294,034 1,294,034 0
4,671,672 4,674,672 3,000
626,582 626,582 0
1,931,454 2,094,772 163,318
308,395 308,395 0
2,862,050 2,862,050 0
310,790 310,790 0
6,039,271 6,202,589 163,318
63,843 63,843 0
3,927,604 4,252,604 325,000
1,951,212 1,976,212 25,000
2,120,739 2,120,739 0
1,645,981 1,645,981 0
9,709,379 10,059,379 350,000
$47,356,716 $47,983,034 $626,318
- Exhibit 5
i I.
1 - CITY OF CARLSBAD
CAPITAL IMPROVEMENT PROGRAM
REVISED APPROPRIATIONS FOR FISCAL YEAR 1997-98
CURRENT REVISED
FY 1997-98 FY 1997-98 INCREASE/
PROJECT DESCRIPTION FUND APPROPRIATIONS APPROPRIATIONS (DECREASE)
CAPITAL IMPROVEMENT PROGRAM I /I
Street Proiects:
Pavement Management Project (Northeast Quad.) TrnsntILocal
Carlsbad Blvd. U-Turn at Poinsettia Lane Gas Tax
Carlsbad Blvd. Bike Lane Gas Tax
Village Area Sidewalk & Curb Reconstruction Gas Tax
Park Maintenance:
Ocean Street Beach Access Reconstruction GCC
Facilities Maintenance:
Fire Facilities-Removal of Underground Fuel Tanks GCC
TOTAL CAPITAL IMPROVEMENT PROGRAM CHANGES
2,066,320 2,366,320 300,000
55,000 75,000 20,000
15,000 35,000 20,000
0 40,000 40,000
40,000 65,000 25,000
0 10,000 10,000
$415,000