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HomeMy WebLinkAbout2019-10-22; City Council; ; Approval of fiscal year 2018-19 budget carryforward requests and appropriation of funds to fiscal year 2019-20.~ CITY COUNCIL ~ Staff Report · Meeting Date: To: From: Staff Contact: Oct. 22, 2019 Mayor and City Council Scott Chadwick, City Manager Roxanne Muhlmeister, Finance Manager roxanne.muhlmeister@carlsbadca.gov or 760-602-2417 CAReview ff(. Subject: Approval of fiscal year 2018-19 budget carryforward requests and appropriation of funds to fiscal year 2019-20. Recommended Action Adopt a Resolution approving the fiscal year 2018-19 budget carryforward request listing of individual items over $100,000 and appropriating funds to the General Fund, General Capital Construction Fund and Fleet Replacement Fund in fiscal year 2019-20. Executive Summary Council Policy Statement No. 87, General Fund Surplus Policy (Policy No. 87), approved by the City Council on Aug. 27, 2019, established a new policy for the appropriation of surplus funds resulting from actual revenues exceeding actual expenditures, plus any unspent and unencumbered expenditure budget for a given fiscal year. The request for the appropriation of unspentand unencumbered expenditure budget is referred to as a budget carryforward of funds. In accordance with Policy No. 87, staff is presenting the listing of budget carryforward requests and appropriation of funds to fisca l year 2019-20 for City Council approval. Discussion The fiscal year 2018-19 unspent and unencumbered expenditure budget for the General Fund at June 30, ~019, is $16,324,327. This is the current, unaudited balance as the annual fiscal audit is currently in progress. This unspent balance is the result of several different factors, including, but not limited to, salary savings from partial year position vacancies, responsible spending from departments and items and/or activities that were budgeted in fiscal year 2018- 19 but for various reasons were not purchased or encumbered by fiscal year end. In August 2019, city departments were asked to submit carryforward requests that are one- time in nature and not for on-going services, programs or personnel to the Administrative Services Branch. Administrative Services staff met with each department to review and discuss the submitted requests. A list of requests was then presented to the city manager for review. According to Policy No. 87, the city manager may approve individual request items equal to or less than $100,000 into the following fiscal year. All items over $100,000 must be brought forward for City Council approval. Oct. 22, 2019 Item #7 Page 1 of 29 The city manager approved $2,861,988 in General Fund carryforward requests and $3,396,610 in carryforward requests for other funds (non-General Fund funds). All individual items are $100,000 or less. A listing of all city manager approved requests is included as Exhibit 2 of this Staff Report for reference. The requested items over $100,000 requiring City Council approval are .listed and described below. The General Fund carryforward requests total $4,331,244 and the non-General Fund requests total $2,099,000. A summary of these requests is included as Attachment A in the Resolution of this Staff Report. General Fund Requests for City Council Approval ($4,331,244): Housing Element Update Project, $335,000 By law, the City of Carlsbad General Plan Housing Element must be reviewed, updated and adopted by April 15, 2021, to adequately plan for its share of anticipated growth in the San Diego region during the 2021-2029 planning period. The City Council approved the work plan and the use of carryforward funds on Sept. 10, 2019, for the upcoming Housing Element Update Project. Schulman Auditorium sound system replacement, $225,000 The current sound system in the library's auditorium is 11 years old and has recently experienced failures. The City Council approved the advertising of bids for the project and the use of carryforward funds on Sept. 10, 2019. Police Officer's Association Memorandum of Understanding (MOU) fiscal impact, $1,798,400 The City Council approved an MOU with the Carlsbad Police Officers' Association on Sept. 10, 2019. Several of the negotiated items affecting salary and benefits were retroactive to Jan. 1, 2019. Since this agreement was still in the negotiation phase when the current fiscal year budget was adopted, a large majority of these impacts were not anticipated or included with the budget at the time of budget adoption. This carryforward will fund the fiscal impact for fiscal year 2019-20. The City Council approved use of carryforward funds for this purpose on Oct. 8, 2019. Invasive species (Ward's weed) mitigation, $200,000 Ward's weed is a highly invasive non-native plan that threatens native habitats, protected plant . and animal species and increases the wildfire fuel load. Investing in early and aggressive control of this species will save a significant amount of resources in the future. The City Council approved a treatment strategy and the use of carryforward funds on Oct. 8, 2019, for this project. School crossing guard contract increases, $118,624 The city recently requested bids for school crossing guard services and a new contract was approved by the City Council on Oct. 8, 2019. The increase in cost from the prior year's contract is due to an increase in the hourly rate by the contractor as well as the addition of 13 locations as recommended by the Traffic Engineering Division of the Public Works Branch between 2015 and 2019. Oct. 22, 2019 Item #7 Page 2 of 29 Parks & Recreation Master Plan update project, $250,000 The current Parks & Recreation Master Plan will expire in March 2020. To maintain the department's national accreditation with the Commission for the Accreditation of Parks & Recreation Agencies the current Master Plan must be updated. The City Council approved the consultant agreement and the use of carryforward funds on Oct. 8, 2019, for this project. External legal counsel and expert services, as needed, $200,000 The city often has a need to use external legal counsel and expert services on specific one-time or on-going legal issues. These services are used at the discretion of the City Attorney's Office. The adopted budget for fiscal year 2019-20 is $750,000. Expenses vary year to year and totaled close to $800,000 for fiscal year 2018-19. Historically the city has carried forward any remaining budget balance in the prior year to add to the current year's available budget balance. This $200,000 will be added to the existing $750,000 budget in fiscal year 2019-20. Digitize paper copies of building plans and maps, $245,000 A contract with a vendor is needed to image existing building permits, plans, mylars and maps which are currently housed in large filing cabinets at the City of Carlsbad Faraday Center. Digitizing and indexing the documents will allow for ease of access by staff and members of the public through the city's document management system. This project will eliminate the large cabinets and allow for much needed space for staff at the Faraday Center. Climate Action Plan, remaining fiscal year communications balance, $111,721 The Communications Department is planning one-time program outreach to support Climate Action Plan goals, including, 1) a digital media campaign to encourage behavior changes that reduce greenhouse gasses, 2) development of a consistent visual identity to more effectively communicate with external audiences and 3) a video series highlighting Climate Action Plan programs. Document Community & Economic Development (CED) business processes, $150,000 The CED Department is planning to develop documentation (desk manuals) for summarizing the various steps staff engage with the city's software/permitting system (EnerGov) related to the building, planning, and engineering permit process. This project will include reviewing and updating as necessary the associated forms and procedures associated with the EnerGov software system. The objective is to ensure business processes for various permit types across the divisions are captured and explained with the goal of developing a comprehensive document for each division. These documents will ensure that existing or new staff can navigate, operate and add data properly in the EnerGov system. This request was originally approved with the fiscal year 2017-18 budget. Staff turnover, workloads and system updates have delayed the start of this project. Staff anticipates posting a request for proposals for services by the end of November 2019. Fire engine outfitting costs, $160,000 The funding for the engine was approved in fiscal year 2018-19. Due to the specificity of the needs for the engine and the equipment that goes with it, the design phase took longer than anticipated and pushed into fiscal year 2019-20. The request is to carryforward this funding for the equipment purchase into fiscal year 2019-20. Oct. 22, 2019 Item #7 Page 3 of 29 Community public art, remaining fiscal year balances, $217,499 In fiscal year 2015-16, the City Council approved an ongoing annual appropriation of $100,000 for community art projects to be included in each annual budget. This approval indicated the City Council's recognition and support of the expansion of public art in the community. Resource constraints in Library & Cultural Arts have made it difficult to expend the full amount each fiscal year. Staff is requesting the carryforward of the unexpended public art balance (since fiscal year 2015-16) into the current fiscal year. The new full-time Public Art Coordinator position, approved with the fiscal year 2019-20 budget will make it possible to expend this carryforward balance as well as the ongoing annual budget. Safety Center HVAC system repairs, $320,000 Repairs are needed on the HVAC system at the Safety Center. This will require the replacement ofthe two air handlers incorporated in that system. Plans and specifications will be developed and the repairs and replacements will then be completed. Non-General Fund (Fleet Replacement) Requests for City Council Approval ($2,099,000): Three items approved in a prior fiscal year were not yet purchased by the close of fiscal year 2018-19. These items are all individually above $100,000 and require City Council approval for carryforward. The request is to carryforward the previously approved budget in the Fleet Replacement Fund for the following items: Fire Ladder Truck ($1,500,000), Paint Truck ($419,000) and a Paver ($180,000). Fiscal Analysis The unspent and unencumbered budget balance at June 30, 2019, for the General Fund and the amounts of the department carryforwards, are summarized in the table below: GENERAL FUND CARRYFORWARD SUMMARY FISCAL YEAR 2018-19 Unspent and unencumbered budget at 6/30/19 $16,324,327 Department carryforwards requested for City Council approval (4,331,244) Department carryforwards approved by the city manager (2,861,988) REMAINING BUDGET AFTER DEPARTMENT CARRYFORWARDS $9,131,095 Staff is requesting the remaining unspent and unencumbered expenditures budget balance in the General Fund, currently calculated at $9,131,095, to be transferred and appropriated to the General Capital Construction Fund to begin the accumulation of funds needed for the future purchase and implementation of a city-wide enterprise resource planning (ERP) system. The city is currently embarking upon evaluating and procuring solutions as part of the city's digital transformation and Connected Carlsbad initiatives. These solutions will be identified and brought forward to the City Council over the next several years. Next Steps The deputy city manager of the Administrative Services Branch will appropriate all City Council approved carryforward requests to the General Fund, the General Capital Construction Fund and the Fleet Replacement Fund to fiscal year 2019-20. Oct. 22, 2019 Item #7 Page 4 of 29 The annual fiscal year audit is currently underway for fiscal year 2018-19. Administrative Services staff will return to City Council to present the results of the financial audit and the status of the city's General Fund reserve after the final audit opinion has been issued. Environmental Evaluation (CEQA) Pursuant to Public Resources Code Section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonable foreseeable indirect physical change in the environment, and therefore does not require environmental review. Public Notification and Outreach This item was noticed in accordance with the Ralph M. Brown Act and was available for viewing at least 72 hours prior to the posting of the agenda. Exhibits 1. City Council Resolution 2. Listing of city manager approved fiscal year 2018-19 General Fund and non-General Fund carryforward budget requests. Oct. 22, 2019 Item #7 Page 5 of 29 RESOLUTION NO. 2019-215 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING FISCAL YEAR 2018-19 BUDGET CARRYFORWARD REQUESTS AND APPROPRIATION OF FUNDS TO FISCAL YEAR 2019-20. WHEREAS, the City Council of the City of Carlsbad, California approved Council Policy Statement No. 87, General Fund Surplus Policy {Policy No. 87) on Aug. 27, 2019; and WHEREAS, Policy No. 87 established a policy for the appropriation of surplus funds resulting from General Fund actual revenues exceeding total actual expenditures, plus any unspent and unencumbered expenditures budgeted for a given fiscal year; and WHEREAS, at the close of fiscal year 2018-19, the remaining unaudited unspent and unencumbered expenditures budget for the General Fund is $16,324,327; and WHEREAS, per Policy No. 87, the City Council must approve the carryforward of any unspent and unencumbered budget for a particular item over $100,000; and WHEREAS, department carryforward requests submitted for City Council approval are listed in Attachment "A" attached hereto; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. 3. That the above recitations are true and correct. That the budget carryforward requests as shown in Attachment "A" attached hereto, are approved for carryforward from fiscal year 2018-19 to 2019-20. That the deputy city manager, of the Administrative Services Branch, is authorized to appropriate carryforward amounts as shown in Attachment "A" attached hereto, to the General Fund in the amount of $4,331,244 and the Fleet Replacement Fund in the amount of $2,099,000. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 22nd day of October 2019, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Schumacher. NAYS: Hall ABSENT: ~ ivmaM-Km,m~ BARBARA ENGLESON, City Clerk ,11111111111,,,,,,,,, ,,,,,,ff! CA ,.. ,,,,,., ~Q't". '!:'rU ,:~ {SEAL) /~ .-····-~~ ~!:::/~\-v~ \Ot~'\{~)CJ % "·· ... ~ __ .. -· $ ¾ --~1 ·············...\,~ ~,,,,,,-..IFO~~,,,,~ ,,,,,,,,,,,111111111 Oct. 22, 2019 Item #7 Page 6 of 29 CITY OF CARLSBAD FY 2018-19 TO FY 2019-20 CARRYFORWARD BUDGET REQUESTS CITY COUNCIL CONSIDERATION (ITEMS OVER $100,000) GENERAL FUND REQUESTS DEPARTMENT DESCRIPTION REQUEST TYPE Community& Economic Development Housing Element Update Project Professional Services Library & Cultural Arts Replace Schulman Auditorium sound system Capital Outlay Police Police salary and benefit increases related to new MOU contract Other Public Works Invasive species mitigation (Ward's weed) Professional Services Police School Crossing Guard-contract increase Professional Services Parks & Recreation Parks & Recreation Master Plan Update Project Professional Services City Attorney External legal counsel and expert services, as needed Professional Services Digitize paper copies of building permits, plans, mylars and maps in order to allow City Clerk Services greater access of documents to staff and public Professional Services Communications Climate Action Plan-remaining communications balance from FY 18-19 Professional Services Community & Economic Development Document CED business processes & training manuals (budgeted in FY 18-19) Professional Services Fire Fire engine outfitting (budgeted in FY 18-19, to be completed in FY 19-20) Equipment & Supplies Library & Cultural Arts Community Public Art Projects remaining balances Professional Services Public Works Safety Center HVAC system repairs Professional Services Total General Fund Requests FLEET REPLACEMENT FUND REQUESTS DEPARTMENT DESCRIPTION REQUEST TYPE Public Works Fire Ladder Truck (approved & budgeted in prior year, not yet purchased) Capital Outlay Public Works Paint Truck (approved & budgeted in prior year, not yet purchased) Capital Outlay Public Works Paver (approved & budgeted in prior year, not yet purchased) Capital Outlay Total Fleet Replacement Fund Requests ATTACHMENT A REQUESTED AMOUNT $ 33S,000 225,000 1,798,400 200,000 118,624 250,000 200,000 245,000 111,721 150,000 160,000 217,499 320,000 $ 4,331,244 REQUESTED AMOUNT $ 1,500,000 419,000 180,000 $ 2,099,000 Oct. 22, 2019 Item #7 Page 7 of 29 CITY OF CARLSBAD FY 2018-19 TO FY 2019-20 CARRYFORWARD BUDGET REQUESTS CITY MANAGER CONSIDERATION (ITEMS $100,000 AND UNDER) GENERAL FUND REQUESTS REQUEST REQUESTED APPROVED APPROVED DEPARTMENT FUND DESCRIPTION TYPE AMOUNT (Y/N) AMOUNT City Attorney 001 Office upgrades for conference room/law library Capital Outlay $ 30,000 y $ 30,000 City Attorney 001 Law school intern program Other 20,000 y 20,000 City Clerk Services 001 GovOA Council Inquiry Module Professional Services 22,400 y 22,400 Funding for meals due to an increasing number of meetings and briefings that City Manager 001 must be scheduled over the lunch hour to accommodate increased workloads Other 7,500 y 7,500 City Manager 001 City Hall work space reconfiguration Capital Outlay 19,000 y 19,000 City Manager 001 ZenCity -Data Driven Decision Making Platform Pilot Program 24,000 y 24,000 City Manager 001 Biennial Resident Satisfaction /Opinion Survey (budgeted FY 18-19) Professional Services 100,000 y 100,000 City Manager 001 Contracted services for grant writer Professional Services 100,000 y 100,000 Community& Economic Development 001 Approved FY 2018-19 community assistance grants not yet disbursed Other 5,525 y 5,525 Community& Economic Development 001 Carlsbad Connector program-communication & outreach Professional Services 23,000 y 23,000 Community & Economic Development 001 Outsourced support for EnerGov permitting system reports Professional Services 23,052 y 23,052 Community & Economic Development 001 Safe Routes to School (outreach & marketing campaign) Professional Services 51,000 y 51,000 Community& Economic Development 001 2.0 FTE part-time (short-term) hourly staff (Neigh Serv, Code and LDE) Other 54,800 y 54,800 m Community& X :I: Economic Development 001 Unspent developer deposits received for third party studies Other 65,423 y 65,423 "' Community& =l N Economic Development 001 Third party geotech & traffic analysis, as needed Professional Services 95,000 y 95,000 Oct. 22, 2019 Item #7 Page 8 of 29 CITY OF CARLSBAD FY 2018-19 TO FY 2019-20 CARRYFORWARD BUDGET REQUESTS CITY MANAGER CONSIDERATION (ITEMS $100,000 AND UNDER) GENERAL FUND REQUESTS REQUEST REQUESTED APPROVED APPROVED DEPARTMENT FUND DESCRIPTION TYPE AMOUNT (Y/N) AMOUNT Finance 001 Increase in annual FY 2019-20 SANDAG membership dues Other 19,006 y 19,006 Finance 001 Professional services for August 2019 Council Financial Symposium Professional Services 20,000 y 20,000 Finance 001 City-wide fee study contract amendment (change in scope) Professional Services 40,000 y 40,000 Finance 001 Additional training and conferences (for new finance employees) Other 20,000 y 20,000 Fi re 001 Marketing/promotion materials for fire community engagement Equipment & Supplies 3,421 y 3,421 Fi re 001 Mobile data computers for new fire apparatus (budgeted FY 18-19) Capital Outlay 5,092 y 5,092 Fi re 001 Stop the Bleed Kits for all public buildings Equipment & Supplies 6,000 y 6,000 Fire 001 Flag disposal drop box (boxes to be placed at two fire stations) Equipment & Supplies 6,600 y 6,600 Fire 001 Cordico Firefighter mental wellness application Pilot Program 15,000 y 15,000 Fire 001 SCBA Equipment (budgeted in FY 2018-19) Equipment & Supplies 18,998 y 18,998 Fire 001 Key Hoses Replacements (budgeted in FY 2018-19) Equipment & Supplies 20,969 y 20,969 Fire 001 Audio/visual equipment for Emergency Operations Center Equipment & Supplies 23,821 y 23,821 Fire 001 Nakoa firefighter wellness program & workshops Pilot Program 30,000 y 30,000 Fire 001 Contract to update the fire department's Standards of Cover analysis Professional Services 65,000 y 65,000 m X :::c Fire 001 Safety Center (conference rooms) audio/visual upgrades Capital Outlay 39,601 y 39,601 c:, =i N Fire 001 Fire station bay monitor displays (all stations) Capital Outlay 67,025 y 67,025 Oct. 22, 2019 Item #7 Page 9 of 29 CITY OF CARLSBAD FY 2018-19 TO FY 2019-20 CARRYFORWARD BUDGET REQUESTS CITY MANAGER CONSIDERATION (ITEMS $100,000 AND UNDER) GENERAL FUND REQUESTS REQUEST REQUESTED APPROVED APPROVED DEPARTMENT FUND DESCRIPTION TYPE AMOUNT (Y/N) AMOUNT Library & Cultural Arts 001 FY 18-19 Community Arts Grants awarded, not yet disbursed Other 2,000 y 2,000 Library & Cultural Arts 001 Dove Library Interior Signage-remaining project balance Equipment & Supplies 8,111 y 8,111 Library & Cultural Arts 001 Safety access control for Dove Circulation staff & Cole Community Room doors Equipment & Supplies 11,100 y 11,100 Library & Cultural Arts 001 Carlsbad City (Dove) Library Cafe Sign Equipment & Supplies 13,293 y 13,293 Library & Cultural Arts 001 Arts & Culture Master Plan remaining project balance Professional Services 20,848 y 20,848 Library & Cultural Arts 001 Bid Review and Project Management for library auditorium sound replacement Professiona I Services 25,000 y 25,000 Library & Cultural Arts 001 Awnings for Cole loading dock & Learning Center patio Equipment & Supplies 25,000 y 25,000 Li brary & Cultural Arts 001 Safety CCTV camera purchase and installation at three libraries Equipment & Supplies 39,550 y 39,550 Library & Cultural Arts 001 Biennial Library Community Survey Professional Services 40,000 y 40,000 Library & Cultural Arts 001 Library Succession Planning (year 3 of 3 on contract, budgeted in FY18-19) Professional Services 65,000 y 65,000 Dove Library Collections & Technical Services space reconfiguration for staff & Library & Cultural Arts 001 storage needs Equipment & Supplies 80,000 y 80,000 Library & Cultural Arts 001 Cultural Arts Mobile Outreach (Master Plan item) Other 82,551 y 82,551 Library & Cultural Arts 001 Carlsbad City (Dove) Library wayfinding remaining project balance Professional Services 91,100 y 91,100 Parks & Recreation 001 Replace Scout House fence with a higher security fence Equipment & Supplies 10,000 y 10,000 ITI X Parks & Recreation Utility cart for Carrillo Ranch parks maintenance staff Capital Outlay 15,000 y 15,000 :I: 001 Cl ::::j Parks & Recreation 001 Carrillo Ranch caretaker residence repairs Professional Services 25,000 y 25,000 N Oct. 22, 2019 Item #7 Page 10 of 29 CITY OF CARLSBAD FY 2018-19 TO FY 2019-20 CARRYFORWARD BUDGET REQUESTS CITY MANAGER CONSIDERATION (ITEMS $100,000 AND UNDER} GENERAL FUND REQUESTS REQUEST REQUESTED APPROVED APPROVED DEPARTMENT FUND DESCRIPTION TYPE AMOUNT (Y/N) AMOUNT Parks & Recreation 001 Alga Norte Aquatic Center pool tile replacement Professional Services 30,000 y 30,000 Parks & Recreation 001 Buena Vista Reservior Park public outreach Professional Services 30,000 y 30,000 Parks & Recreation 001 Leo Carrillo Ranch AV and HVAC equipment replacements Capital Outlay 32,000 y 32,000 Parks & Recreation 001 Alga Norte Competition Pool welded pool covers Capital Outlay 40,500 y 40,500 Increase the overtime budget for citywide special events permitting to add Parks & Recreation 001 additional officers and paramedics at community events Other 48,989 y 48,989 Parks & Recreation 001 Leo Carrillo Ranch repair of granite surfaces (parking lot, pat hways, etc.) Capital Outlay 60,000 y 60,000 Parks & Recreation 001 Harding Community Center office remodel to accomadate existing staff Professiona I Services 95,000 y 95,000 Police 001 Office Furniture for new officers (Homeless Outreach Team) Equipment & Supplies 5,000 y 5,000 Police 001 LEFTA, field training software, invoice (invoice was intended for FY 18-19) Professional Services 5,325 y 5,325 Police 001 Additional software module to track police equipment assigned to vehicles Professional Services 7,500 y 7,500 Police 001 Install gun safes at four schools for School Resource Officer use Equipment & Supplies 8,000 y 8,000 Police 001 Uniforms for two new Motor Officers Equipment & Supplies 10,000 y 10,000 Police 001 Continue Police wellness program Professional Services 15,000 y 15,000 Police 001 Replacement Motorcycle (due to a recent collision) Capital Outlay 20,753 y 20,753 m X :::c Police 001 Axon (body camera) license for new officers Professional Services 22,083 y 22,083 ttl ~ N Police 001 Outfitting and converting two ambulances for police (special task forces) Equipment & Supplies 50,000 y 50,000 Oct. 22, 2019 Item #7 Page 11 of 29 ~ -·---------------------- CITY OF CARLSBAD FY 2018-19 TO FY 2019-20 CARRYFORWARD BUDGET REQUESTS CITY MANAGER CONSIDERATION (ITEMS $100,000 AND UNDER) GENERAL FUND REQUESTS REQUEST DEPARTMENT FUND DESCRIPTION TYPE Police 001 School Resource Officer vehicle (approved FY 18-19) Capital Outlay Cost increases needed for FY 19-20 approved police patrol vehicle purchase (5 Police 001 vehicles, increase is $22,000 each vehicle) Capital Outlay Police 001 Three marked police vehicles (approved and budgeted FY 18-19) Capital Outlay Police 001 Outfitting for 5 recently purchased police vehicles (budgeted FY 18-19) Equipment & Supplies Public Works 001 Climate Action Plan -siting plan services for EV charging locations Professional Services Public Works 001 General and Supplemental Provisions update to Public Works contracts Professional Services Public Works 001 Electrical diagnostic equipment for city electritian staff position Equipment & Supplies Construction management services for the Rancho Carrillo caretaker residence Public Works 001 remodel Professiona I Services Public Works 001 Safety Training Center CCTV security system and cameras Professional Services New use of force simulator at Safety Training Center-current system is outdated Public Works 001 and is no longer supported by the vendor Capital Outlay Public Works 001 Concrete Grinder Replacement Equipment & Supplies Public Works 001 Communications equipment and laptops for streets maintenance staff Capital Outlay Public Works 001 Asphalt and materials for Pio Pico sidewalk repair Equipment & Supplies Public Works 001 Outsourced support for EnerGov permitting system reports Professional Services Total General Fund Requests REQUESTED APPROVED APPROVED AMOUNT (Y/N) AMOUNT 70,000 y 70,000 110,000 y 110,000 210,000 y 210,000 140,000 y 140,000 49,900 y 49,900 32,000 y 32,000 10,000 y 10,000 26,100 y 26,100 30,000 y 30,000 50,000 y 50,000 4,500 y 4,500 12,000 y 12,000 19,500 y 19,500 23,052 y 23,052 $ 2,861,988 $ 2,861,988 m X :l: 0:, =i N Oct. 22, 2019 Item #7 Page 12 of 29 CITY OF CARLSBAD FY 2018-19 TO FY 2019-20 CARRYFORWARD BUDGET REQUESTS CITY MANAGER CONSIDERATION (ITEMS $100,000 AND UNDER) OTHER FUNDS (NON-GENERAL FUND) REQUESTS REQUEST REQUESTED APPROVED APPROVED DEPARTMENT FUND DESCRIPTION TYPE AMOUNT (Y/N) AMOUNT Community & Economic Development 133 Interfaith contract for housing assistance at Carlsbad Service Center Professional Services $ 40,000 y $ 40,000 Community & Economic Development 133 Co nference travel for housing staff Other 9,000 y 9,000 Community & Carryfoward of remaining Agricultural Mitigation Grant balances (awarded, Economic Development 171 but not yet disbursed) Unspent Grant Balance 66,818 y 66,818 Community & Economic Development 190 Carryforward remaining budget in Section 8 federal rental program Unspent Grant Balance 58,025 y 58,025 Information Technology 640 City Sourced (replacement for Public Stuff application) Professional Services 35,000 y 35,000 Information Technology 640 Velocity -ADFS Implementation Professional Services 10,980 y 10,980 Information Technology 640 City Innovate -STIR Membership Other 15,000 y 15,000 Information Technology 640 Core cashiering equipment required for system upgrade Equipment & Supplies 25,000 y 25,000 Information Technology 640 Security assessment & hacking test Professiona I Services 100,000 y 100,000 Information Technology 640 Annual library maintenance for SirsiDynix (invoice received after 6/30) Professional Services 98,690 y 98,690 Information Technology 640 lnfor Services-public sector suite upgrade Professional Services 24,000 y 24,000 Information Technology 640 Granicus upgrade to city internet & intranet sites Professional Services 80,000 y 80,000 Approved FY 2018-19 replacement equipment not yet purchased (all Information Technology 641 individual items are under $100,000 each) Capital Outlay 1,600,000 y 1,600,000 Library & Cultural Arts 145 Mobile MakerSpace Program-carryforward of unexpended donated funds Equipment & Supplies 10,460 y 10,460 ITI X :I: Lighting District 162 Boom truck rust prevention Professional Services 10,000 y 10,000 gJ ~ N Public Safety Grants 124 Carryforward unspent safety gra nt funds Unspent Grant Balance 53,909 y 53,909 Oct. 22, 2019 Item #7 Page 13 of 29 CITY OF CARLSBAD FY 2018-19 TO FY 2019-20 CARRYFORWARD BUDGET REQUESTS CITY MANAGER CONSIDERATION (ITEMS $100,000 AND UNDER) OTHER FUNDS (NON-GENERAL FUND) REQUESTS REQUEST REQUESTED APPROVED APPROVED DEPARTMENT FUND DESCRIPTION TYPE AMOUNT (V/N) AMOUNT Approved FY 18 & FY 19 replacement vehicles not yet purchased (individual Public Works 621 items are under $100,000 each) Capital Outlay 545,000 y 545,000 Potable Water 501 Risk and resiliency assessments Professional Services 100,000 y 100,000 Potable Water 501 Connection fee study Professional Services 33,000 y 33,000 Potable Water 501 Warehouse storage racks (split funding) Equipment & Supplies 30,000 y 30,000 Potable Water 501 Dump truck rental & trench plate purchase Equipment & Supplies 15,000 y 15,000 Potable Water 501 Non-compliant fire flow retro-fitting Professional Services 25,000 y 25,000 Potable Water 501 Outfitting for vehicle replacements approved in FY 2018-19 Capital Outlay 30,000 y 30,000 Potable Water 501 Cost increase for FY 2019-20 approved hydro-excavator (split funding) Capital Outlay 85,000 y 85,000 Recycled Water 502 Cost increase for FY 2019-20 approved hydro-excavator (split funding) Capital Outlay 15,000 y 15,000 Recycled Water 502 Outfitting for vehicle replacements approved in FY 2018-19 Capital Outlay 20,000 y 20,000 Recycled Water 502 Connection fee study Professional Services 13,000 y 13,000 Recycled Water 502 Warehouse storage racks (split funding) Equipment & Supplies 10,000 y 10,000 Solid Waste Grants 520 Carryforward of unspent grant budgets in solid waste fund Unspent Grant Balance 54,727 y 54,727 Stormwater 521 Agua Hedionda hydrologic area study for restoration projects Professiona I Services 14,000 y 14,000 m X ~ Wastewater 511 Outfitting for vehicle replacements approved in FY 2018-19 Capital Outlay 35,000 y 35,000 c:i =i IV Wastewater 511 Sewer benefit area study Professional Services 25,000 y 25,000 Oct. 22, 2019 Item #7 Page 14 of 29 CITY OF CARLSBAD FY 2018-19 TO FY 2019-20 CARRYFORWARD BUDGET REQUESTS CITY MANAGER CONSIDERATION (ITEMS $100,000 AND UNDER) OTHER FUNDS (NON-GENERAL FUND) REQUESTS REQUEST DEPARTMENT FUND DESCRIPTION TYPE Wastewater 511 Connection fee study Professional Services Wastewater 511 Warehouse storage racks (split funding) Equipment & Supplies Wastewater 511 Lift station soft start study Professional Services Total Other Funds (Non-General Fund) Requests REQUESTED APPROVED AMOUNT (Y/N) 25,000 y 10,000 y 75,000 y $ 3,396,610 APPROVED AMOUNT 25,000 10,000 75,000 $ 3,396,610 m X ::c C0 ~ N Oct. 22, 2019 Item #7 Page 15 of 29 Fiscal Year 2018-19 Budget Carryforward Requests Laura Rocha, Deputy City Manager, Administrative Services Roxanne Muhlmeister, Finance Manager October 22, 2019 Item #7 Oct. 22, 2019 Item #7 Page 16 of 29 Recommended Action •Adopt a resolution approving and appropriating the fiscal year 2018-19 budget carryforward request listing of individual items over $100,000. 2 Oct. 22, 2019 Item #7 Page 17 of 29 Council Policy No. 87 •General Fund Surplus policy •Issued Aug. 27, 2019 •Established a new policy for the appropriation of any actual revenues less actual expenditures, in a given fiscal year, plus any unspent and unencumbered expenditure budget. 3 Oct. 22, 2019 Item #7 Page 18 of 29 Council Policy No. 87 Surplus funds will be used to: 1.Replenish reserve deficiencies, if needed, per the City Council General Fund Reserve Policy No. 74. 2.Replenish any pension liability deficiencies, if needed, as defined in City Council Pension Funding Policy No. 86. 3.Remaining surplus funds will be used for one-time expenditures and will not create new ongoing services, programs or personnel. 4 Oct. 22, 2019 Item #7 Page 19 of 29 Council Policy No. 87 •Carryforward requests of individual items over $100,000 must be approved by the City Council. •Individual item amounts less than or equal to $100,000 may be approved by the city manager. 5 Oct. 22, 2019 Item #7 Page 20 of 29 Fleet Replacement Fund Requests Three vehicles were approved in a prior adopted budget but were not purchased by the close of the fiscal year. •Fire ladder truck, $1,500,000 •Paint truck, $419,000 •Paver, $180,000 6 Oct. 22, 2019 Item #7 Page 21 of 29 Fiscal Year 2018-19 General Fund Carryforward Summary Unspent and unencumbered budget at 6/30/19:$16,324,327 (unaudited) Carryforward Requests: Approved by the city manager $2,861,988 Approved to date by the City Council 2,927,024 Requested for City Council approval 10,535,315 Total requests $16,324,327 7 Oct. 22, 2019 Item #7 Page 22 of 29 Carryforward Requests over $100,000 Approved to Date by City Council •Housing Element update project, $335,000 •Schulman Auditorium sound system replacement, $225,000 •Police Officer’s Association MOU fiscal impact, $1,798,400 •Invasive species (Ward’s weed) mitigation, $200,000 •School crossing guard contract increase, $118,624 These five requests have already been approved by the City Council in separate agenda items in fiscal year 2019-20. 8 Oct. 22, 2019 Item #7 Page 23 of 29 Carryforward Requests over $100,000 City Council Approval Requested •Digitize paper copies of building plans and maps, $245,000 •External legal counsel and expert services, $200,000 •Climate Action Plan, remaining communications balance, $111,721 •Document Community & Economic Development business processes, $150,000 9 Oct. 22, 2019 Item #7 Page 24 of 29 Carryforward Requests over $100,000 City Council Approval Requested •Fire engine outfitting costs, $160,000 •Community public art, remaining budget balances, $217,499 •Safety Center HVAC system repairs, $320,000 10 Oct. 22, 2019 Item #7 Page 25 of 29 Carryforward Requests over $100,000 City Council Approval Requested Enterprise Resource Planning (ERP) System, $9,131,095 •Set aside funding for a city-wide ERP system. Additional funding requests will come forward in the fiscal year 2020-21 budget. •Unite the separate finance, human resources, timekeeping, payroll, purchasing, asset management and other city software systems into a cohesive system. •The city is in the early stages of gathering information for an ERP system and will return to City Council when solutions have been identified. 11 Oct. 22, 2019 Item #7 Page 26 of 29 Fiscal Year 2018-19 General Fund Carryforward Summary Unspent and unencumbered budget at 6/30/19:$16,324,327 (unaudited) Carryforward Requests: Approved by the city manager $2,861,988 Approved to date by the City Council 2,927,024 Requested for City Council approval 10,535,315 Total requests $16,324,327 12 Oct. 22, 2019 Item #7 Page 27 of 29 Fiscal Year 2018-19 General Fund Reserve Balance General Fund Reserve Balance -Unassigned June 30, 2018 (audited) $72.6M (50% reserve) June 30, 2019 (unaudited) $82.6M (49% reserve) Reserve policy target is 40% of prior fiscal year adopted General Fund budgeted expenditures. 13 Oct. 22, 2019 Item #7 Page 28 of 29 Recommended Action •Adopt a resolution approving and appropriating the fiscal year 2018-19 budget carryforward request listing of individual items over $100,000. 14 Oct. 22, 2019 Item #7 Page 29 of 29