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HomeMy WebLinkAbout65F - 15-16 SURPLUS ALLOCATIONREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 20, 2016 TITLE: ADOPT THE FISCAL YEAR 2015-16 SURPLUS ALLOCATION PLAN AND APPROVE APPROPRIATION ADJUSTMENT (STRATEGIC PLAN NOS. 1, 1; 2, 1, 2) L4' r CITY NJACjER BACKGROUND CLERK OF COUNCIL USE ONLY: ® As Recommended © As Amended ® Ordinance on 1" Reading 0 Ordinance on 211 Reading El Implementing Resolution 0 Set Public Hearing For CONTINUED TO FILE NUMBER It is important to provide background prior to staff recommendations, given the significance of the Triple Flip Sales Tax revenue in the amount of $5,600,000. During the June 21, 2016 City Council Meeting, staff provided a projected fiscal year 2015-16 General Fund Surplus range of $1,500,000 to $3,500,000. This projected range has remained unchanged and was on target with a final balance of $3,500,000. However, the City later received communication from the State of California that they were issuing the final true -up payment from the Triple Flip Sales Tax program, totaling $5,600,000. Although payment was received in July 2016, the timing of the receipt of the revenue was required to be accrued back to fiscal year 2015-16. As a result, the combination of the initial projected Surplus and receipt of the true -up from the Sales Tax Triple Flip increased the final surplus amount to $9,100,000. The completion of the City's financial audit during December 2016, certified the General Fund's Surplus for fiscal year 2015-16 in the amount of $9,100,000. Below is a summary of the recommended actions proposed for the FY 2015-16 Surplus Allocation Plan. Review and select an option for the Surplus Allocation Funds for Fiscal Year 2015-16 in the amount of $2,620,000: Option A: Public Safety and Neighborhood Improvement Committee recommended the following initiatives, total of $2,620,000: • Skate Park- $1,120,000 • Park Development/ Joint Use - $1,500,000 Option B: Enforcement and Neighborhood Public Safety Initiatives to be utilized for various Police Department purchases total of $2,620,000 (Exhibit 1): • Enforcement (reduction in crime, auto theft, domestic violence) • Prevention • Intervention 65F-1 Budget Surplus Allocation Plan December 20, 2016 Page 2 2. Approve $880,000 from the Fiscal Year 2015-16 Surplus Allocation Funds for the following items: Public Safety initiative of the shared cost of construction for the County Animal Shelter - $750,000 Public Safety Communication — 800 MHz Partnership Costs, to fully fund obligation - $130,000 Approve formal implementation of items previously approved by Council of the unanticipated Triple Flip of $5,600,000 (Exhibit 2) • Enterprise Fund Assessment reduction to the General Fund — $2,388,082 • Transfer of Graffiti Abatement Services from the Sanitation Fund to the General Fund —$1,200,000 • Civic Center Safety and Security Enhancement Initiatives — $731,836 • Public Safety Communication — 800 MHz Partnership Costs — $1,280,082 The above -referenced items require Appropriation Adjustments and are recommended to be funded from the Fiscal Year 2015-16 General Fund Balance and appropriating the amount to the Council Special Projects Fund expenditure and reserve accounts as outlined in the Surplus Allocation Plan noted above. DISCUSSION During the most recently completed two fiscal years, 2014-15 and 2015-16, Finance and Management Services Agency (Finance Staff) upon conclusion of the City's annual audit have prepared a plan allocating General Fund Surplus Funding for Council Consideration. During the June 21, 2016 City Council Meeting, Finance Staff identified a potential General Fund surplus range for Fiscal Year (FY) 2015-16 between $1,500,000 to $3,500,000. However, the City's General Fund Surplus increased to $9,100,000, largely as a result of increased revenue derived from repayment from the State of California Board of Equalization for Sales Tax -Triple Flip totaling approximately $5,600,000. Public Safety Initiatives $2,620,000: As noted above direction was provided to Finance Staff to evaluate the Public Safety initiatives. The options were compiled (see below) from recommendations made by the Public Safety and Neighborhood Improvement Committee (Committee) on November 22, 2016 that may be funded from the remaining General fund Surplus projection of $1,500,000 to $3,500,000. Option A - ($2,620, 000) The Committee recommended evaluation of the appropriateness in developing a Skate Park and entering into a Joint -Use agreement for the development of Parks project as a means of fulfilling the Public Safety initiative of a Preventive program. The Parks, Recreation and Community Services Agency (PRCSA) has proposed to construct a Skate Park; similar to the Centennial Facility at Memorial Park or at Angels Community Park. The cost estimate provided by PRCSA with developing a Skate Park is approximately $1,120,000. 65F-2 Budget Surplus Allocation Plan December 20, 2016 Page 3 Additionally, PRCSA also evaluated the feasibility of establishing a Joint -Use agreement for the purpose of developing a Park Capital Improvement Project. The proposal by PRCSA is to develop a Park for the Lacey neighborhood with the acquired half acre site. Development of this park will allow for Community Garden and enhancement of joint -use programs at adjacent Garfield Elementary School. The estimate provided by PRCSA in entering into this agreement is approximately $1,500,000. Option B - ($2,620,000) The Committee also recommended Staff to evaluate additional Public Safety initiatives that deal with Prevention, Intervention and Enforcement. The Police Department provided a list of the initiatives that meet the spirit for these goals. The Police Department is requesting funding for Front Line Law Enforcement Services ($1,480,000), including funding for traffic safety education and enforcement, prostitution mitigation, foot/bike patrols, and other community based programs that are both proven to be effective, and are highly popular with residents. In addition, the Police Department proposes adding $580,000 to support the Department's hiring efforts. Police Officer hiring is one of the biggest challenges facing law enforcement throughout the nation. These additional monies will fund a recruitment video, a lateral incentive program, additional marketing and advertising expenses, and overtime to attend recruitment events. The Police Department also proposes adding $504,376 to fund Crime Prevention/Intervention Programs that will provide detectives with additional resources needed to help solve domestic violence cases, sexual assault cases, cold case rape cases, and other violent crimes. Lastly, the Police Department is requesting $55,624 for various Community Engagement activities that will build trust between law enforcement and the community. The Police Department will use these monies to fund activities at the Police Athletic Activity League (SAPAAL) Center, the Gang Reduction and Intervention Partnership (GRIP) program, and for officers to attend Neighborhood Association meetings to collaborate with residents. Previous Council Approved Recommendations for Public Safety Initiatives ($880,000): The construction agreement with the County of Orange for Animal Care Services and New Shelter was approved by the City Council on April 19, 2016. The City's annual estimated costs, as provided by the County, totaled approximately $714,138. However, only 14 of the originally estimated 18 partner cities have agreed to participate. In anticipation of a revised estimate, staff recommends to fund the FY 2017-18 costs in the amount of $750,000 from available FY 2015-16 surplus funding. On May 19, 2015, the City Council approved a resolution financing the equipment, installation and partnership costs for the 800 MHz Communications System project. The third and final year of the one-time partnership costs were not financed at the time in order to reduce the City's interest cost related to the financing agreement. Staff recommends to fund the final portion of the payment due for FY 2017-18 by assigning available fund balance in the amount of $130,000. Council has previously considered financing the main component of the costs. 65F-3 Budget Surplus Allocation Plan December 20, 2016 Page 4 Formal Implementation of items previously approved by Council of the unanticipated Triple Flip ($5,600,000): On September 20, 2016, the City Council unanimously approved the reduction of the assessment from the Water Enterprise Fund to the General Fund by $2,388,082 in fiscal year 2015-2016. Therefore, staff recommends a one-time augmentation of $2,388,082 to continue to provide general fund support of community services and programs related to the reduction in the General Fund assessment which is assessed to the General Fund in the amount of $2,388,082. Also on September 20, 2016, the City Council unanimously approved the establishment of general fund support for Graffiti Abatement Services in the amount of $1,200,000 utilizing projected surplus monies. Additionally, Staff also recommends to utilize FY 2015-16 Surplus Funding to continue the Graffiti Abatement program and appropriate $1,200,000 within the General Fund. On September 6, 2016, the Mayor and City Council approved resolution Declaring a Public Health and Safety Crisis Related to the Homeless and Urging the County of Orange to take Immediate Action to Provide Services to the Homeless at the Santa Ana Bus Terminal which the County of Orange both owns and operates. In response to this resolution, on September 20, 2016, the City Council approved an appropriation adjustment to implement the Civic Center Safety and Security Program in the amount of $731,836 from available FY 2015-16 surplus funding. As noted above, on May 19, 2015, the City Council approved a resolution financing the equipment, installation and partnership costs for the 800 MHz Communications System project. The third and final year of the one-time partnership costs were not financed at the time in order to reduce the City's interest cost related to the financing agreement. Staff recommends to fund the final portion of the payment due for FY 2017-18 by assigning available fund balance in the amount of $1,280,082. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #1 - Community Safety, Objective 1 (modernize the Community Policing Philosophy to improve customer service, crime prevention and traffic/pedestrian/bicycle safety). Goal #2 — Youth, Education, Recreation, Objective #1 (ensure coordination among organizations serving Santa Ana's youth to optimize programs) and Objective #2 (expand youth programming). FISCAL IMPACT The appropriation adjustment will recognize and carry forward from Fiscal Year 2015-16 an available General Fund balance (account no. 01102002-50001) of $9,100,000 and appropriate to the Council Special Projects Fund (account no. 05005018-69011) and assigned general fund balances. Any amounts not assigned will remain in the unassigned account. 65F-4 Budget Surplus Allocation Plan December 20, 2016 Page 5 APPROVED AS TO FUNDS AND ACCOUNTS: Execute Director Finance and Management Services Agency EXHIBITS: 1. Public Safety Initiatives 2. Surplus Allocation Plan Items 65F-5 65F-6 FY 2015-16 Surplus - Public Safety Use of Funds YNOW1:M A. Front Line Police Services 58,398 1 Traffic Safety Education and Enforcement Plan 190,000 2 Prostitution Mitigation Programs -Overtime 135,200 3 Project Oriented Foot/Bike Neighborhood Program - 43,200 Overtime for four officers per week 42,627 4 Mounted Enforcement - Overtime funding for additional 21,600 deployments 13,773 5 Bike Trail / Creek Safety Enhancement Efforts - Overtime 90,000 for monthly patrols 184,945 6 Overtime for Front Line Patrol Services 1,000,000 Subtotal 1,480,000 B. Recruitment and Hiring 1 Agreement with Backgrounds Contractor 60,000 2 Additional Marketing/Advertising- Funding for second year 250,000 of Sensis program 3 Recruitment Website Enhancement- Funding for landing 25,000 page and professional optimization services 4 Recruitment Video - Funding to develop video 75,000 5 Lateral Recruitment Incentive 100,000 6 Overtime for Backgrounds- Investigations/Recruitment 70,000 Subtotal 580,000 C. Crime Prevention/Intervention 1 Violent Crime Reduction Plan (VCRP) -Overtime to 120,000 successfully investigate serious crimes more expeditiously 2 Sexual Assault Rapid Response Program — Overtime for 58,398 sexual assault investigations 14,760 3 Cold Case Rape Project— Overtime for investigations of 37,617 rape cases 10,000 4 Domestic Violence Immediate Impact Project—Overtime 42,627 for rapid investigation 5,000 5 Sex Registrant Verification Checks—Overtime to monitor 13,773 registered sex offenders 6 Auto Theft Assessment& Reduction Program — Overtime to 184,945 reduce auto thefts 7 Digital Crime Scene Replacement Program — Replacing 47,016 aging digital camera equipment Subtotal 504,376 D. Community Engagement 1 Neighborhood Association Meetings -Overtime to 14,760 collaborate with neighborhood associations 2 Photography Instructor - PAAL Center 10,000 3 Anaheim Angels RBI Baseball Program -PAAL Center 24,000 4 Guitar Replacements - PAAL Center 5,000 5 Gang Reduction Intervention Partnership (GRIP) -Overtime 1,864 to expand program training and school activities Subtotal 55,624 Total 2,620,000 65F-7 EXHIBIT 2 PROJECTED SURPLUS FOR FY 2015.16: $9,100,000 PROGRAM COUNCIL APPROVED AMOUNT Construction Costs of CountyAnimal Shelter $750,000 800 MHz Partnership Costs (fully fund) $130,000 RECOMMENDED SUBTOTAL: $880,000 OPTION A Skate Park $1,120,000 Park DevelopmentlJoint Use Agreement $1,500,000 For Consideration - Option A: $2,620,000 Public Safety lnfiatives: Prevention, Interventlon, &Enforcement General Fund Support of Programs &Services (due m weber transfer reduction) Graffiti Abatement (General Fund) Civic Center Homeless I Public & Employee Safety 800 MHz Partnership Costs (FY 17-18) For Consideration - Option B: $2,620,000 65F-8 OPTION TOTAL: $2,620,000 SUBTOTAL+ OPTION TOTAL: $3,500,000 9/2012016 $2,388,082 9120/2016 $1,200,000 912012016 $731,836 RECOMMENDED SUBTOTAL: $5.600.000 GRAND TOTAL: $9.1