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11-17-2020 - AGENDA ITEM 07 CONSIDERATION OF BUDGET AMENDMENTS FOR COMMUNITY DEVELOPMENT BLOCK GRANT PROJECTS, AND PARKS AND STREET IMPROVEMENTSAGENDA ITEM NO. 7 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: November 17, 2020 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF BUDGET AMENDMENTS FOR COMMUNITY DEVELOPMENT BLOCK GRANT PROJECTS, AND PARKS AND STREET IMPROVEMENTS RECOMMENDATION: It is recommended that the City Council approve the following Resolutions: 1. RESOLUTION NO. 2020-110 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2019, AND ENDING JUNE 30, 2020 (Close 19-20) 2. RESOLUTION NO. 2020-111— A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 20209 AND ENDING JUNE 30, 2021 (Open 20-21) BACKGROUND: The City Council adopted the Fiscal Year 2019-2020 budget on June 18, 2019 - Resolution No. 2019-49. The budget covered the period from July 1, 2019 through June 30, 2020. On June 23, 2020, the City Council adopted the Fiscal Year 2020-2021 - Resolution No. 2020-64. The budget covers the period from July 1, 2020 through June 30, 2021. DISCUSSION: The budget was adopted three months into the pandemic. Since then, staff and resources have been reallocated to meet the needs of the community that could not be anticipated when the Fiscal Year 2020-21 budget was being prepared and adopted. The budget amendments requested below are for two Fiscal Years: FY 2019-20 to close out projects and FY 2020-2021 to accommodate new projects and programs. FY 2019-2020 (Close Out) Proposition A County Park Bond - Fund 143 $3,377.13 is requested for the maintenance of the Del Norte Park Splash Pad, and is reimbursable through Proposition A Los Angeles County Park Bond Grant. In FY 2019-2020, expenditures in two budget lines exceeded appropriations. Reimbursement is based on approved budget. The proposed amendment is needed to get fully reimbursed. CITY OF WEST COVINA BUDGET AMENDMENT ATTACHMENT NO.4 BA # 021 Posted By: Date Posted: Date: 7/1/2020 Fiscal Year: 2020/2021 Requested by: Kelly McDonald Amount: $6,724,530.33 Dept/Div: Public Services Description: Carry Over Unexpended Balances CS Foundation/CDBG/Measure H EXPENDITURES Account Number Dept/Account Description Current Budget Proposed Amendment Amended Budget 131.22.2232.6120 CDBG Business Assistance Prg 324 831.20 324 831.20 131.22.2242.6120 CDBG/Housing Presery Pro 105 331.00 105 331.00 220.61.5103.6574 CS Foundation Youth Council 1,699.85 1,699.85 220,61.5110.6490 CS Foundation/Misc Exp 43 222.44 43 222.44 220.61.5110.6544 CS Foundation Ta for House 30 917.66 30 917.66 220.61.5110,6545 CS Foundation Walk of Fame 1,812.23 1,812.23 220.61.5110.6548 CS Foundation Memorial Wall 12 531.75 12 531.75 220.61.5150.6120 CS Foundation/Contract Sery 501.25 501.25 220.61.5150.6490 CS Foundation Misc Exp 20 269.85 20 269.85 220.61.5160.6191 CS Foundation Galster Park 2,902.66 2,902.66 220.61.5161.6192 CS Foundation Cameron 14.22 14.22 220.61.5170.6490 CS Foundation Shadow Oak 377.64 377.64 220.61.5180.6240 CS Foundation Rec Supplies 148.25 148.25 220.61.5180.6270 CS Foundation/Other Supplies 7,524.31 7,524.31 240.61.2255.6120 Measure H Contract Sery 280 742.00 280 742.00 240.61.2255.6270 Measure H Other Supplies 32 973.22 32 973.22 REVENUES Proposed Account Number Account Description Current Budget Amendment Amended Budget over of unexpended funds from FY 2019-2020 in the Community Services Foundation, CDBG, CDBG-CV, and Measure APPROVALS City Council Approval Date (if required, attach minutes): ❑ Approval Not Required Dept Head Approval: Date: Finance Director: Date: Funds Available? ❑ Yes No City Manager: Date: Comment: ❑ Approved ❑ Denied BA # 021 (cont.) CITY OF WEST COVINA Posted By; BUDGET AMENDMENT Date Posted: Date: 7/1/2020 Fiscal Year: 2020/2021 Requested by: Kelly McDonald Amount: (see first page) Dept/Div: Public Services Description: C/O Sliding Door, Add Meas W, BLD Maint, Lark Ellen House, Contracts FY0FNATT1JJ?FC Account Number Dept/Account Description Current Budget Proposed Amendment t 122,71.4132.6130 Pro C Pavement Management 25 000.00 505 313.00 124.71.4131.6110 Gas Tax Traffic Engineering 43 750.00 189.71.4189.6130 Sewer 34 000.00 89 687.00 M290152.00 197.71.4189,6130 Measure W NPDES 290 152.00181.71.4133.6110 MDS Professional Services 3 187.50. 182.71.4133.6110 MD2 Professional Services 2,542.50 2,542.50 183.71.4133.6110 CSS/Professional Services 5,130.00 5,130.00 184.71.4133.6110 MD4/Professional Services 3,992.50 3,992.50 186.71.4133.6110 MD6/Professional Services 2,320.00 2,320.00 187.71.4133.6110 MD7/Professional Services 2,345.00 2,345.00 188.71.4133.6110 CWMD Professional Services it 588.75 7,177.50 18 766.25 189.71A133.6110 Sewer Professional Services 24 588.78 7,177.50 31 766.28 110.61A142.6120 Park Maint Contract Sery 6,235.00 42 000.00 48 235.00 110.61.4142.6130 Park Maint Service Contracts 551 696.00 63 000.00 614 696.00 110.61A142.6141 Park Maint Natural Gas 7,500.00 5,500.00 13 000.00 110.61.4142.6142 Park Maint/Electricit 137 500.00 78 000.00 215 500.00 110.61.4142.6143 Park Maint Water 262 500.00 74 000.00 336 500.00 110.61.4142.6270 Park Maint Other Supplies 36 000.00 20 000.00 56 000.00 110.61.4144,6270 Buildings/Supplies 85 000.00 30 000.00 115 000.00 110.61.5150.6188 Gen Fund Events 7,500.00 7,500.00 188A1.4141.6130 CWMD 348 710.00 300 000.00 648 710.00 225.61.5121.6120 CDBG-CV Contract Sery 114 694.30 114 694.30 225.61.5121.6460 CDBG-CV Subreci Tents 347 500.00 347 500.00 21028.169.7700 Lark Ellen House Desi n&Demo 200 000.00 200 000.00 169.80.7004.7700 21029.131.7700 Sliding Doors at Sr Center 100 000.00 100 000.00 131.80.7004.7700 21030.110.7700 Shadow Oak Lower Restroom 408 600.00 408 600.00 110.80.7004.7700 21031.124.7200 Sidewalk Assessment & Repair 240 000.00 240 000.00 124.80.7005.7200 21032.110.7500 Dispatch Center New Roof 60 000.00 60 000.00 110.80.7001.7500 21033.110.7500 Energy Efficiency Project 2,805,162.00 2,805,162.00 110.80.7001.7500 I Account Number I Account Description I Current Budget I Amendment IAmended Budget Carry over of unexpended funds from FY 2019-2020 in CDBG-Sliding Door Project. Addition of NPDES expenses against Measure W and Lark Ellen House Design & Demo. Correction for Agreements with Transtech and Wilidan. Maintenance for BLD and increase in tree contract for 5-vr trim cvcle on right-of-ways APPROVALS City Council Approval Date (if required, attach minutes): ❑ Approval Net Required Dept Head Approval: Date: Finance Director: Date: Funds Available? o Yes No City Manager: Date: Comment: o Approved ❑ Denied Senior Meals Program - Fund 146 $107,590.30 is requested in response to COVID-19. Due to the pandemic the City received more than anticipated funding through Los Angeles County Workforce Development Aging and Community Services for the Senior Meals Program. The proposed amendment increases the appropriation for meals costs to balance expenditures with funding received. The remainder of the FY 2019-2020 proposed budget amendments are for the carryover of unexpended balances to FY 2020-2021 - totaling $865,799.53 and new programs and projects - totaling $5,858,730.80, with an explanation by fund below. FY 2020-2021 (Carryover Programs/Projects) Community Development Block Grant - Fund 131 $430,162.20 is requested as a carryover. The proposed amendment carries over the unexpended FY 2019-2020 balances of the Business Assistance Program and Housing Preservation Program. Community Services Foundation - Fund 220 $121,922.11 is requested as a carryover. The unexpended balances in the Community Services Foundation, for which donations have directed to activities. County Measure H - Fund 240 $313,715.22 is requested as a carryover of County Measure H funds to address homelessness. In collaboration with four other cities, the City received a grant of Measure H funds to fund Housing Navigation services. Union Station was contracted to provide these services. The proposed amendment appropriates the unexpended FY 2019-2020 balances of the agreement with Union Station and the required cash -match for the grant in FY 2020-2021. FY 2020-2021 (New Programs/Projects) General Fund - Fund 110 $3,593,762.00 is requested for three projects: Shadow Oak Park new lower parking lot restrooms - $408,600.00; the Citywide Energy Efficiency Project $2,805,162.00; and maintenance of Big League Dreams for the remainder of the fiscal year $282,500. Additionally, $37,500.00 is requested for supplies. On October 6, 2020, the City Council approved the Energy Efficiency Project, which included construction of a new Shadow Oak Park restrooms. As originally approved, the project was to be financed with payments made through energy savings costs. Since that approval, staff has explored a series of financing alternatives, and ultimately determined the project should be funded through the current year budget. Approval of this budget amendment will allow the project to be funded without the use a long-term debt instrument. Proposition C (LA County Metro) - Fund 122 $505,313.00 is requested for the work of Transtech Engineers related to various capital improvement projects. Transtech is responsible for project management services on the City of West Covina capital projects. Gas Tax - Fund 124 $283,750.00 is requested for two programs: $240,000.00 is requested to complete a multi -year sidewalk assessment and repair program; $43,750.00 is requested for traffic engineering services provided by Transtech Engineers. Community Development Block Grant - Fund 131 $100,000.00 is requested for five sets of new sliding doors at the Cortez Park Senior Center. This project has received approval from the United States Department of Housing and Urban Development. New Parkland Acquisition - Fund 169 $200,000 is requested for demolition of the single family house located at 707 S. Lark Ellen and the design and expansion of Cortez Park. Maintenance Districts 1-7 - Fund 181-187 $19,517.50 is requested for the completion of the engineering reports used to establish the district levy. Citywide Maintenance District - Fund 188 $307,177.50 is requested to increase the tree trimming budget and trim street trees once every five years instead of the current eight -year trim cycle. Sewer Maintenance - Fund 189 $96,864.50 is requested to pay for engineering costs incurred by Transtech related to the City sewer system and for the preparation of the engineering cost estimate used to set sewer assessments. Measure W Stormwater - Fund 197 $290,152.00 is requested to pay for improving the water quality of stormwater that flows into the storm drains by reducing the pollutants in the water. The City will be receiving approximately $1,300,000 in Measure W funding, which is assessed on all property owners in Los Angeles County. Community Development Block Grant — COVID-19 (CDBG-CV) - Fund 225 $462,194.30 is requested in response to COVID-19 pandemic. The City received additional CDBG funds through the CARES Act, which were appropriated in FY 2019-2020. The proposed amendment appropriates the unexpended balances in FY 2020-2021. An agreement with A1taMed for COVID-19 testing and funding agreements with public service agencies (food banks and meal delivery for the homebound) are associated with this funding. CONCLUSION The budget amendments cover Fiscal Year 2019-20 and Fiscal Year 2020-21 as summarized below: FY 2019-20 $110,967.43 - added costs offset by revenues from Los Angeles County and the CARES Act ( 865,799.53) - carryover to FY 2020-21 ($754,832.10) - Total net reduction FY 2020-21 $ 865,799.53 - carryover programs/projects S5,858,730.80 - new programs/projects $6,724,530.33 - Total cost The total general fund cost is $3,593,762.00; the total impact to special revenue funds is $3,130,768.33. Adequate funding exists to pay for the programs and projects listed above. LEGAL REVIEW: The City Attorney's Office has reviewed and approved the resolutions as to form. OPTIONS: Options available to the City Council are as follows: 1. Approve the recommendation; or 2. Provide alternative direction. Prepared by: Mark Persico, Assistant City Manager Additional Approval: Robbeyn Bird, CPA, Finance Director Fiscal Impact FISCAL IMPACT: The Fiscal Year 2019-2020 budget amendment is for ($754,832.10) per Budget Amendment No. 067 (Attachment No. 2). The Fiscal Year 2020-2021 budget amendment for is for $6,724,530.33 per Budget Amendment No. 021 (Attachment No. 4). Attachments Attachment No. 1 - Resolution No. 2020-110 Attachment No. 2 - Exhibit A (Resolution 2020-110) Attachment No. 3 - Resolution No. 2020-111 (Budget Amendment FY 2020-2021) Attachment No. 4 - Exhibit A (Resolution No. 2020-111) CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability Enhance City Facilities and Infrastructure Enhance the City Image and Effectiveness Protect Public Safety Respond to the Global COVID-19 Pandemic Engage in Proactive Economic Development ATTACHMENT NO. 1 Ili Sf.YU1L 11 [O►M`►CM-T1XlafDl A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2019, AND ENDING JUNE 30, 2020 (Close 19-20) WHEREAS, the City Manager, on or about June 18, 2019, submitted to the City Council a proposed budget for the appropriation and expenditure of funds for the City for West Covina for Fiscal Year 2019-20; and WHEREAS, following duly given notice and prior to budget adoption, the City Council held public meetings, considered and evaluated all comments, and adopted a budget for the fiscal year commencing July 1, 2019 and ending June 30, 2020; and WHEREAS, amendments must periodically be made to the budget to conform to changed circumstances following adoption of the budget. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA DOES RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby approves Budget Amendment No. 067, attached hereto as Exhibit A, related to Fiscal Year 2019-20. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall enter the same in the book of original resolutions and it shall become effective immediately. PASSED, APPROVED, AND ADOPTED this 17th day of November, 2020. Tony Wu Mayor APPROVED AS TO FORM ATTEST Thomas P. Duarte Lisa Sherrick City Attorney Assistant City Clerk I, LISA SHERRICK, Assistant City Clerk of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2020-110 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 17th day of November, 2020, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Lisa Sherrick Assistant City Clerk ATTACHMENT NO. 2 Date: Requested by: Dept/Div: EXPENDITURES CITY OF WEST COVINA BUDGET AMENDMENT 6/30/2020 Kelly McDonald Public Services BA # 067 Posted By: Date Posted: Fiscal Year: 2019/2020 Amount: (754,832.10) Description: CS Foundation 2019-2020 Close Out to Carry Over to 2020-2021 Account Number Dept/Account Description Current Budget Propose Amendment Amended Budget 131.22.2232.6120 CDBG/Business Assistance Prg 325 000.00 324 831.20 168.80 131.22.2242.6120 CDBG/Housing Presery Prg 145 935.00 SOS 331.00 40 604.00 143.61.5172.5111 Park Bond/Full Time Salaries 11 560.00 2,054.13 13 614.13 143.61.5172.8101 Park Bond Admin Overhead 2 946.00 1,323.00 4,269.00 146.61.5186.6158 Sr. Meals/Meals 60 000.00 107 590.30 167 590.30 220.61.5103.6574 CS Foundation/Youth Council 1,783.41 (1,699.85) 83.56 220.61.5110.6490 CS Foundation Misc Exp 45 962.19 43 222.44 2,739.75 220.61.5110.6544 CS Foundation/Taylor House 31 939.09 30 917.66 1,021.43 220.61,5110.6545 CS Foundation/Walk of Fame 1,812.23 (1,812.23) 220.61.5110.6548 CS Foundation Memorial Wall 12 531.75 12 531.75 220.61.5150.6120 CS Foundation/Contract Sery 501.25 501.25 220.61.5150.6166 CS Foundation/Summer Conc 3,232.07 3,232.07 220.61.5150.6490 CS Foundation Misc Exp 38 953.67 20 269.85 18 683.82 220.61.5160.6191 CS Foundation Galster Park 2,902.66 (2,902.66) 220.61.5161.6192 CS Foundation/Cameron 14.22 14.22 220.61.5170.6490 CS Foundation/Shadow Oak 377.64 377.64 220.61.5180.6240 CS Foundation/Rec Supplies 148.25 148.25 220.61.5180.6270 CS Foundation/Other Supplies i 13 094.32 (7,524.31)1 5 570.01 240.61.2255.6120 Measure H/Contract Sery 343 250.00 280 742.00 62,508 240.61.2255.6270 IMeasure H/Other Su lies 33 000.00 32 973.22 26.78 REVENUES Propose Account Number Account Description Current Budget Amendment Amended Budget Close out FY 2019-2020 to carry over of unexpended funds in the Community Services Foundation, CDBG, CDBG-CV, and Measure H. Adjustments to County Park Bond and Senior Meals to balance funds received. APPROVALS City Council Approval Date (if required, attach minutes): ❑ Approval Not Required Dept Head Approval: Date: Finance Director: Date: Funds Available? ❑ Yes ❑No City Manager: Date: Comment: ❑ Approved ❑ Denied ATTACHMENT NO.3 Ili Sf.YU1L 11 [O►M`►CM-T1Xlaffl A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2020, AND ENDING JUNE 30, 2021 (Open 20-21) WHEREAS, the City Manager, on or about June 23, 2020, submitted to the City Council a proposed budget for the appropriation and expenditure of funds for the City for West Covina for Fiscal Year 2020-21; and WHEREAS, following duly given notice and prior to budget adoption, the City Council held public meetings, considered and evaluated all comments, and adopted abudget for the fiscal year commencing July 1, 2020 and ending June 30, 2021; and WHEREAS, amendments must periodically be made to the budget to conform to changed circumstances following adoption of the budget. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA DOES RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby approves Budget Amendment No.021, attached hereto as Exhibit A, related to Fiscal Year 2020-21. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall enter the same in the book of original resolutions and it shall become effective immediately. APPROVED, AND ADOPTED this 17th day of November, 2020. Tony Wu Mayor APPROVED AS TO FORM ATTEST Thomas P. Duarte Lisa Sherrick City Attorney Assistant City Clerk I, LISA SHERRICK, Assistant City Clerk of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2020-111 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 17th day of November, 2020, by the following vote of the City Council: AYES: NOES: ABSENT: ABSTAIN: Lisa Sherrick Assistant City Clerk