The URL can be used to link to this page

2020 May 05 - CC PACKETAGENDA EL SEGUNDO CITY COUNCIL 350 MAIN STREET DUE TO THE COVID-19 EMERGENCY, THIS MEETING WILL BE CONDUCTED PURSUANT TO THE GOVERNOR'S EXECUTIVE ORDER N-29-20. How Can Members of the Public Observe and Provide Public Comments? Residents are strongly encouraged to participate remotely via Spectrum Channel 3 and 22, AT&T IU -verse Channel 99 and/or EI Segundo TV at YouTube.com. Members of the Public may provide comments electronically by sending comments to the following e-mail address, with a limit of 150 words and accepted up until 30 minutes prior to the meeting: PUBLICCOMMUNICATIONS@elsegundo.org, in the subject line please state the meeting date and item number. Depending on the volume of communications, the emails will be read to Council during public communications and are subject to disclosure under the Public Records Act. Members of the Public may also provide comments in the designated area in Council Chamber up to and during public communication portion of the meeting. Members of the public must observe "social distancing" requirements at all times, i.e., remain six (6) feet from other attendees during the entirety of the event or gathering. Additional Information: The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items. Any writings or documents given to a majority of the City Council regarding any matter on this agenda that the City received after issuing the agenda packet are available for public inspection in the City Clerk's office during normal business hours. Such Documents may also be posted on the City's website at www.elsegundo.org and additional copies will be available at the City Council meeting. Unless otherwise noted in the Agenda, the Public can only comment on City -related business that is within the jurisdiction of the City Council and/or items listed on the Agenda during the Public Communications portions of the Meeting. Additionally, the Public can comment on any Public Hearing item on the Agenda during the Public Hearing portion of such item. The time limit for comments is five (5) minutes per person. Before speaking to the City Council, please state. Your name and residence and the organization you represent, if desired. Please respect the time limits. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact City Clerk, 524-2305. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, MAY 5, 2020 — 4:00 PM CALL TO ORDER ROLL CALL PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 ormore to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. SPECIAL ORDER OF BUSINESS: CLOSED SESSION: The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et sem.) for the purposes of conferring with the City's Real Property Negotiator; and/or conferring with the City Attorney on potential and/or existing litigation; and/or discussing matters covered under Government Code Section §54957 (Personnel); and/or conferring with the City's Labor Negotiators, as follows.- CONFERENCE ollows: CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Government Code §54956.9(d)(1). CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant Exposure to Litigation (Government Code §54956.9(d)(2)) Initiation of litigation (Government Code §54956.9(d)(4)) THREAT TO PUBLIC SERVICES OR FACILITIES (Government Code § 54957(a)) Consultation with: City Manager Scott Mitnick, Fire Chief Chris Donovan, Police Chief Bill Whalen and City Attorney Mark Hensley 2 E AGENDA EL SEGUNDO CITY COUNCIL 350 MAIN STREET DUE TO THE COVID-19 EMERGENCY, THIS MEETING WILL BE CONDUCTED PURSUANT TO THE GOVERNOR'S EXECUTIVE ORDER N-29-20. How Can Members of the Public Observe and Provide Public Comments? Residents are strongly encouraged to participate remotely via Spectrum Channel 3 and 22, AT&T U -verse Channel 99 and/or EI Segundo TV at YouTube.com. Members of the Public may provide comments electronically by sending comments to the following e-mail address, with a limit of 150 words and accepted up until 30 minutes prior to the meeting: PUBLICCOMMUNICATIONS@elsegundo.org, in the subject line please state the meeting date and item number. Depending on the volume of communications, the emails will be read to Council during public communications and are subject to disclosure under the Public Records Act. Members of the Public may also provide comments in the designated area in Council Chamber up to and during public communication portion of the meeting. Members of the public must observe "social distancing" requirements at all times, i.e., remain six (6) feet from other attendees during the entirety of the event or gathering. Additional Information The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items. Any writings or documents given to a majority of the City Council regarding any matter on this agenda that the City received after issuing the agenda packet are available for public inspection in the City Clerk's office during normal business hours. Such Documents may also be posted on the City's website at www elsegundo.org and additional copies will be available at the City Council meeting. Unless otherwise noted in the Agenda, the Public can only comment on City -related business that is within the jurisdiction of the City Council and/or items listed on the Agenda during the Public Communications portions of the Meeting. Additionally, the Public can comment on any Public Hearing item on the Agenda during the Public Hearing portion of such item. The time limit for comments is five (5) minutes per person. Before speaking to the City Council, please state: Your name and residence and the organization you represent, if desired. Please respect the time limits. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact City Clerk, 524-2305. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, MAY 5, 2020 - 6:00 P.M. CALL TO ORDER INVOCATION — Tracy Weaver, City Clerk 3 3 PLEDGE OF ALLEGIANCE — Council Member Nicol ROLL CALL PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The Council will respond to comments after Public Communications is closed. CITY MANAGER FOLLOW-UP COMMENTS — (Related to Public Communications) SPECIAL PRESENTATIONS: a) Chris Donovan, Fire Chief, and Dr. Marc Cohen, Medical Director, COVID-19 update. A. PROCEDURAL MOTIONS Consideration of a motion Agenda by title only. Recommendation — Approval. B. CONSENT CALENDAR to read all ordinances and resolutions on the 1. Approve Regular City Council Meeting Minutes of April 21, 2020. 2. Approve Warrant Numbers 3030925 through 3031048 and 9001418 through 9001421 on Register No. 14a in the total amount of $455,467.32 and Wire Transfers from 4/13/20 through 4/19/20 in the total amount of $355,216.16. Approve Warrant Numbers 3031049 through 3031123 and 9001422 through 9001422 on Register No. 14b in the total amount of $309,323.86 and Wire Transfers from 4/20/20 through 4/26/20 in the total amount of $424,791.46. 3. Accept as Complete the Washington Park Playground Project. Project No. PW 19-20. 4. Adopt a resolution and approve the classification list exempting certain classifications from participating in the Federal Families First Coronavirus Response Act (FFCRA) as adopted by the Federal Government on March 18, 2020. C. PUBLIC HEARINGS D. STAFF PRESENTATIONS 4 n 5. Receive and file Fiscal Year 2019-2020 General Fund Mid -Year Budget Update and Recommended Adjustments. E. COMMITTEES, COMMISSIONS AND BOARDS PRESENTATIONS: F. REPORTS — CITY CLERK G. REPORTS — CITY TREASURER H. REPORTS — COUNCILMEMBERS Council Member Giroux — Council Member Nicol - Council Member Pirsztuk - Mayor Pro Tem Pimentel — Mayor Boyles — I. REPORTS — CITY ATTORNEY J. REPORTS/FOLLOW-UP — CITY MANAGER PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The Council will respond to comments after Public Communications is closed. CLOSED SESSION The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et seq.) for the purposes of conferring with the City's Real Property Negotiator, and/or conferring with the City Attorney on potential and/or existing litigation; and/or discussing matters covered under Government Code Section §54957 (Personnel); and/or conferring with the City's Labor Negotiators. REPORT OF ACTION TAKEN IN CLOSED SESSION (if required) MEMORIAL — Sue Carter ADJOURNMENT POSTED: DATE: April 30, 2020 TIME: 1:OOPM BY: Tracy Weaver 5 6i MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, APRIL 21, 2020 — 4:00 PM This meeting was conducted virtually via Zoom conferencing CALL TO ORDER — Virtually by Mayor Boyles at 4:00 PM ROLL CALL Mayor Boyles - Present via teleconferencing Mayor Pro Tem Pimentel - Present via teleconferencing Council Member Pirsztuk - Present via teleconferencing Council Member Nicol - Present via teleconferencing Council Member Giroux - Present via teleconferencing PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) None SPECIAL ORDER OF BUSINESS. Mayor Boyles announced that Council would be meeting in closed session pursuant to the items listed on the Agenda. CLOSED SESSION: The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et seq.) for the purposes of conferring with the City's Real Property Negotiator; and/or conferring with the City Attorney on potential and/or existing litigation; and/or discussing matters covered under Government Code Section §54957 (Personnel); and/or conferring with the City's Labor Negotiators; as follows.- CONFERENCE ollows: CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION (Government Code §54956.9(d)(1). CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION 1. Significant Exposure to Litigation (Government Code §54956.9(d)(2)) 2. Initiation of litigation (Government Code §54956.9(d)(4)) DISCUSSION OF PERSONNEL MATTERS (Government Code Section §54957(a)) 1. Threat to Public Services or Facilities Adjourned at 5:55 PM 1 C: 1 REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL TUESDAY, APRIL 21, 2020 - 6:00 P.M. This meeting was conducted virtually via Zoom conferencing CALL TO ORDER — Virtually by Mayor Boyles at 6:00 PM INVOCATION — Tracy Weaver, City Clerk PLEDGE OF ALLEGIANCE — Council Member Giroux ROLL CALL Mayor Boyles - Present via teleconferencing Mayor Pro Tem Pimentel - Present via teleconferencing Council Member Pirsztuk - Present via teleconferencing Council Member Nicol - Present via teleconferencing Council Member Giroux - Present via teleconferencing PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30 minute limit total) Tracy Weaver, City Clerk, read email comments into the record received prior to the meeting due to Safer at Home restrictions. Tracey Miller-Zarneke, resident, Environmental Committee, wished everyone a Happy Earth Day, April 22, 2020. Kimberly Kelly, resident, encouraged stronger measures to enforce/encourage the County's face covering order. CITY MANAGER FOLLOW-UP COMMENTS — (Related to Public Communications) SPECIAL PRESENTATIONS: a) Chris Donovan, Fire Chief, gave a COVID-19 update. A. PROCEDURAL MOTIONS Consideration of a motion to read all ordinances and resolutions on the Agenda by title only. MOTION by Council Member Nicol, SECONDED by Council Member Pimentel Pirsztuk to read all ordinances and resolutions on the agenda by title only. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 B. CONSENT CALENDAR Approve Special City Council Meeting Minutes of April 14, 2020 (Two (2) sets, Closed and Open). 2 7 2. Approve Warrant Numbers 3030760 through 3030839 and 9001374 through 9001415 on Register No. 13a in the total amount of $278,353.42 and Wire Transfers from 3/30/20 through 4/5/20 in the total amount of $374,535.81. Approve Warrant Numbers 3030840 through 3030924 and 9001416 through 9001417 on Register No. 13b in the total amount of $385,943.66 and Wire Transfers from 4/6/20 through 4/12/20 in the total amount of $2,799,877.81. Ratified Payroll and Employee Benefit checks; checks released early due to contracts or agreement; emergency disbursements and/or adjustments, and wire transfers. 3. Adopt and approve City exam plans for Fire Paramedic and Fire Captain promotional examinations. (Fiscal Impact: None) 4. Ratify actions taken by the Director of Emergency Services during the COVID-19 local emergency, including: 1) Revised Administrative Order No. 1 relating to closure of certain non-essential businesses and 2) Revised Administrative Order No. 2 relating to the closure of City Parks. (Fiscal Impact: None) MOTION by Council Member Giroux, SECONDED by Council Member Nicol, approving Consent Agenda items 1, 2, 3, and 4. MOTION PASSED BY UNANIMOUS VOICE VOTE; 5/0 C. PUBLIC HEARINGS 5. Continue the public hearing regarding Zone Text Amendment creating a pilot program to allow and regulate Short-term Rentals in the City's residential zoning districts through a Short-term Permit process to June 2, 2020. (Fiscal Impact: None) (The proposed project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Class I (Existing Facilities) (14 Cal. Code Regs. §15301), because it would "result in a negligible expansion of an existing use," as the amendment consists of establishing regulations and procedures for renting existing residential units on a short-term bases, provided the property owner resides on site). Mayor Boyles stated this was time and place to continue the Public Hearing to the regular City Council meeting of June 2, 2020. D. STAFF PRESENTATIONS 6. Approve Fiscal Year (FY) 2020-21 Budget Calendar; establishing study sessions, public hearing dates and direction to change the fiscal year (FY) cycle. (Fiscal Impact: None) 3 Joe Lillio, Finance Director, reported on the item. Council discussion MOTION by Council Member Pirsztuk, SECONDED by Council Member Giroux approving the Fiscal Year (FY) 2020-21 Budget Calendar. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0 COMMITTEES, COMMISSIONS AND BOARDS PRESENTATIONS: None REPORTS — CITY CLERK — Passed REPORTS — CITY TREASURER — Not present REPORTS — COUNCILMEMBERS Council Member Giroux — Passed Council Member Nicol — Passed Council Member Pirsztuk — Thanked staff, specifically the Finance Department, for insuring the City comes out of the pandemic financially healthy, thanked the Incident Management Team, Fire and Police for continuing efforts to keep our City safe and thanked the teachers for continuing to teach the students in these uncertain times. Mayor Pro Tem Pimentel — Passed Mayor Boyles — Passed REPORTS — CITY ATTORNEY — Passed REPORTS/FOLLOW-UP — CITY MANAGER — Stated the next City Council meeting will be June 2, 2020, fairly light agenda, except for a discussion regarding the City's budget. Mentioned EI Segundo was highlighted in the Los Angeles Business Journal. ADJOURNMENT at 6:25 PM Tracy Weaver, City Clerk 4 0 3030925 3031048 9001418 - 9001421 001 GENERAL FUND 342,806-55 104 TRAFFIC SAFETY FUND - W STATE OAS To VLMO 1.50 108 ASSOCIATED RECREATION ACTIVITIES FUND - 109 ASSET FORFEITURE FUND 7,31202 110 MEASURER - III COMM. DEVEL BLOCK GRANT - 112 PROP'A'TRANSPORTATION 72663 114 PROP'C- TRANSPORTATION 157.50 115 AIR OUALFrY INVESTMENT PROGRAM - 116 HOME SOUND INSTALLATION FUND 117 HYPERION MITIGATION FUND - lie TDA ARTICLE 3- SB 621 BIKEWAY FUND - 119 MTA GRANT 121 FEMA 120 COPS FUND - 122 L A W A FUND 121 PSAF PROPERTY TAX PUBLIC SAFETY - 124 FEDERAL GRANTS 3,93500 125 STATE GRANT 126 AIP CUPA PROGRAM OVERSIGHT SURCHARGE 413.00 129 CERTIFIED ACCESS SPECIALIST PROGRAMS 202 ASSESSMENT DISTRICT 973 - 101 CAPITAL IMPROVEMENT FUND 43,78031 302 INFRASTRUCTURE REPLACEMENT FUND 405 FACILITIES MAINTENANCE - 501 WATER UTILITY FUND 1,533.73 S02 WASTEWATER FUND 6,976,00 503 GOLF COURSE FUND 10,017.00 504 PARK VISTA 2,47720 505 SOLID WASTE - Sot EQUIPMENT REPLACEMENT 12,833 16 602 LIABILITY INSURANCE 17,25158 603 WORKERS COMP RESERVEANSURANCE 8.24 701 RETIRED EMP. INSURANCE 2,30750 702 EXPENDABLE TRUST FUND - DEVELOPER FEES 2,93040 703 EXPENDABLE TRUST FUND - OTHER 708 OUTSIDE SERVICES TRUST TOTAL WARRANTS $ 455,467.32 STATE OF CALIFORNIA COUNTY OF LOS ANGELES Information on actual expenditures is available in the Director of Finances office in the City or EI Segundo. I certify as to the accuracy of the Demands and the availability of fund for payment Thereof For Approval: Regular cheeks held for City council authorization to release CODES: R = Computer generated checks for all non-ernergentyA,rgency payments for materials, supplies and services in support of City Operations CITY OF EL SEGUNDO WARRANTS TOTALS BY FUND DATE OF APPROVAL: AS OF 45105120 VOID CHECKS DUE TO ALIGNMENT: NIA VOID CHECKS DUE TO INCORRECT CHECK_ DATE: For Ratification:� - A = Payroll and Employee Benefit checks VOID CHECKS DUE TO COMPUTER SOFTWARE ERROR: B - F = Computer generated Early Release disbursements andror adjustments approved by the City Manager. Such as: payments for utility services, petty cash and employee travel expense NOTES _ reimbursements, vanous refunds, contract employee services risislenl with cumenlcontractual agreements, instances where prompt payment discounts can be obtained or late payment penalties can be avoided or when a situation arises That The City Manager approves, H = HandWritlen E Rvlei dilWrsemenls andyepanjusiments approved by The City Manager //1 (' FINANCEDIRECTOR .� CITY MANAGER ' _ J W 1 r Sol DATE: DATE:rjs'` l Ll IV REGISTERS 14a CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 4/13120 THROUGH 4119120 Date Payee Descri t[� ion 4/1312020 Cal Pers 10,238.51 EFT Retirement Safety-Fire-PEPRA New 25020 4/13/2020 Cal Pers 20,214.09 EFT Retirement Safety-Police-PEPRA New 25021 4/13/2020 Cal Pers 34,805.10 EFT Retirement Misc - PEPRA New 26013 4/13/2020 Cal Pers 50,548.03 EFT Retirement Misc - Classic 27 4/13/2020 Cal Pers 70,793.46 EFT Retirement Safety Police Classic - 1st Tier 28 4/13/2020 Cal Pers 54,885.28 EFT Retirement Safety Fire- Classic 30168 4/13/2020 Cal Pers 4,542.21 EFT Retirement Sfty Police Classic -2nd Tier 30169 4/17/2020 Manufacturers & Traders 63,945.48 457 payment Vantagepoint 4/17/2020 Manufacturers & Traders 942.31 401(a) payment Vantagepoint 4/17/2020 Manufacturers & Traders 550.00 IRA payment Vantagepoint 4/6120-4112120 Workers Comp Activity 28,070.92 SCRMA checks issued 4/6120-4/12120 Liability Trust - Claims 14,846.50 Claim checks issued 4/6120-4112120 Retiree Health Insurance 0.00 Health Reimbursment checks issued 4/6120-4/12/20 Flexible Spending Account 834.27 Employee Health and DCA card charges DATE OF RATIFICATION: 4/21120 TOTAL PAYMENTS BY WIRE: Certified as to the accuracy of the wire transfers by: Deputy City Tres u er]I Date Dire�ctavyof Finance Date Manager Date 355,216.16 Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo. 355,216.16 PACity TreasurehWire TransferslWire Transfers 10-01-19 to 9-30-20 4/21/2020 111 11 CITY OF EL SEGUNDO WARRANTS TOTALS BY FUND 3031049 3031123 9001422 - D01 GENERALFUND 151.74988 104 TRAFFIC SAFETY FUND 106 STATE GAS TAX FUND 1352 108 ASSOCIATED RECREATION ACTIVITIES FUND IDS ASSET FORFEITURE FUND 1,125.00 110 MEASURE R 111 COMM DEVEL. BLOCK GRANT 112 PROP'A'TRANSPORTATION 014 114 PROP-C'TRANSPORTATION 115 AIR QUALITY INVESTMENT PROGRAM 116 HOME SOUND INSTALLA7ION FUND 117 HYPERION MITIGATION FUND - lie TDA ARTICLE 3- SS 421 BIKEWAY FUND 119 MTAGRANT 121 FEMA 120 C -O PS. FUND 122 L A W A. FUND ^ 123 PSAF PROPERTY TAX PUBLIC SAFETY - 124 FEDERAL GRANTS 125 STATE GRANT 126 AIP COPA PROGRAM OVER5IGHT SURCHARGE 93.61 129 CERTIFIED ACCESS SPECIALIST PROGRAMS 202 ASSESSMENT DISTRICT a73 - 301 CAPP AL IMPROVEMENT FUND 36,97815 302 INFRASTRUCTURE REPLACEMENT FUND - 405 FACILITIES MAINTENANCE - 501 WATER UTILITY FUND 56,07077 502 WASTEWATER FUND 59.86395 503 GOLF COURSE FUND 504 PARK VISTA 505 SOLID WASTE - 601 EQUIPrffHt RISFU C EII•.EN7 502 LIABILITY INSURANCE 3,09999 603 WORKERS COMP RESERVEWNSURANCE 51 10 701 RE7IREDEMP INSURANCE 702 EXPENDABLE TRUST FUND -DEVELOPER FEES 703 700 EXPENDABLE TRUST FUND - OTHER OUTSIDE SERVICES TRUST 277.75 TOTAL WARRANTS 5 309,323 86 V STATE Or CALIFORNIA COUNTY OF LOS ANGELES Informalion on actual expenditures is available in the Director of Finance's office in the City of EI Segundo - I cerliy as to the accuracy of the Demands and the availability of fund for payment thereof - For Approve) Regular checks held for City council authorization to release CODES: R = Computer generated Checks for all non-emergencylurgency payments for materials, supplies and services in support at City Operations For Ralilication A = Payroll and Employee Benefit checks DATE OF APPROVAL: AS OF 05005120 VOID CHECKS DUE TO ALIGNMENT: NIA VOID CHECKS DUE TO INCORRECT CHECK DATE: VOID CHECKS DUE TO COMPUTER SOFTWARE ERROR: 5-F= Computer generated Early Release disbursements and/or adjustments approved by the City Manager Such as: payments for utility servims, petty cash and employee travel expense NOTES ` reimbursements, Various refunds, contract employee services consistent wilh Current contraclual Mreemenls, Insl pintos where prompt payment dlsrnu of s can be obta nod or late paymOnl penalties can be avoided W Whou o situs lion arises mgt the City Managor approves H= HontlwTitlen Eadr Fe:eawtlJlshwsemenls PnWof odfustrrwnls apro 4rnd by 1ne C.1Y 7ilensgtr FINANCE DIRECTOR ,v��J;�c'I� I� [•�sj�, CITY MANAGER BATE: �'i_ L'�, •1r••' DATEI N REGISTER 4 14b CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 4120120 THROUGH 4126120 Date Payee Descri tion 4/20/2020 IRS 283,416.36 Federal 941 Deposit 4/20/2020 Employment Development 4,326.87 State SDI payment 4/20/2020 Employment Development 64,302.03 State PIT Withholding 4/20/2020 State of CA EFT 1,164.44 EFT Child support payment 4/22/2020 Lane Donovan Golf Ptr 27,522.72 Payroll and Accounts Payable Transfer 4113120-4/19120 Workers Comp Activity 43,415.13 SCRMA checks issued 4113/20-4119/20 Liability Trust - Claims 0.00 Claim checks issued 4113/20-4/19/20 Retiree Health Insurance 0.00 Health Reimbursment checks issued 4/13/20-4/19/20 Flexible Spending Account 643.91 Employee Health and DCA card charges 424,791.46 DATE OF RATIFICATION: 4/24120 TOTAL PAYMENTS BY WIRE: 424,791.46 Certified as to the accuracy of the wire transfers by: �eputyCity Treasu r Il pate Direc r f Fi ante Date ----=t—=— City Manager Date' Information on actual expenditures is available in the City Treasurer's Office of the City of EI Segundo. P:\City TreasurerlWire TransferslWire Transfers 10-01-19 to 9-30-20 4/24/2020 1/1 13 EL SEGUNDO CITY COUNCIL AGENDA STATEMENT AGENDA DESCRIPTION: MEETING DATE: May 5, 2020 AGENDA HEADING: Consent Accept as complete the Washington Park Playground Project, Project No. PW 19-29. RECOMMENDED COUNCIL ACTION: 1. Accept the work as complete; 2. Authorize the City Clerk to file a Notice of Completion in the County Recorder's office. ATTACHED SUPPORTING DOCUMENTS: 1. Notice of Completion FISCAL IMPACT: Included in the FY 2018-2019 budget Amount Budgeted: $330,000 Additional Appropriation: No. Account Number(s): $260,000 from Account #301-400-8152-8213 (Washington Park Playground Replacement) $70,000.00 from 301-400-8202-8420 (Park Facilities Upgrades) STRATEGIC PLAN: Goal: 4 Develop Quality Infrastructure and Technology Objective: A El Segundo's physical infrastructure supports an appealing, safe, and effective community. ORIGINATED BY: Cheryl Ebert, Senior Civil Engineer REVIEWED BY: Mark Watkins, Interim Public Works Director APPROVED BY: Scott Mitnick, City Manager / rl) _5A BACKGROUND AND DISCUSSION: On December 17, 2019, City Council awarded a Public Works Contract to R.E. Schultz Construction, Inc. for the Washington Park Playground Project in the amount of $298,493 and authorized an additional $29,850 for construction related contingencies. Construction began on January 21, 2020, and was completed by R.E. Schultz Construction, Inc. on March 31, 2020. The project consisted of removing the old, outdated, and worn playground equipment and installing a new ADA -accessible interactive playground with synthetic turf surfacing. 3 14 Accounting Summary: $298,493 Construction Contract Amount $5,067 Total Change Orders, including adding additional concrete pad, adjusting the decomposed granite pathway and associated irrigation, adding additional soil and seed for the decomposed granite pathway, and temporary fencing for one month post construction. $303,560 Total Funds Spent $330,000.00 Total Budget — $303,560.00 Total Funds Spent $26,440.00 Unspent Project Funds Return to Source (General Fund) Staff respectfully recommends that City Council accept the work performed by R.E. Schultz Construction, Inc. as complete and authorize the City Clerk to file a Notice of Completion with the County Recorder's Office. (Project pictures next page.) 15 I low Recording Requested by and When Recorded Mail To: City Clerk, City Hall 350 Main Street EI Segundo, CA 90245 NOTICE OF COMPLETION OF CONSTRUCTION PROJECT Project Name: Washington Park Playground Project Project No.: PW 19-29 Contract No. 5839 Notice is hereby given pursuant to State of California Civil Code Section 3093 et seq that: 1 The undersigned is an officer of the owner of the interest stated below in the property hereinafter described. 2 The full name of the owner is: City of EI Segundo 3 The full address of the owner is: City Hall, 350 Main Street, EI Segundo, CA, 90245 4 The nature of the interest of the owner is: Public Facilities 5 A work of improvement on the property hereinafter described was field reviewed by the City Engineer on March 31, 2020. The work done was: removal of the old, outdated, and worn equipment and sand and installation of a new ADA -accessible interactive playground with synthetic tun` at the Washington Park Playground. 6. On May 5, 2020, City Council of the City of EI Segundo accepted the work of this contract as being complete and directed the recording of this Notice of Completion in the Office of the County Recorder. 7 The name of the Contractor for such work of improvement was: R. E. Schultz Construction; Inc. 8 The property on which said work of improvement was completed is in the City of EI Segundo, County of Los Angeles, State of California, and is described as follows: The playground area of Washington Park in the City of EI Segundo. 9 The street address of said property is: intersection of E. Palm Avenue and Washington Street in EI Segundo, CA 90245 Dated Mark Watkins Interim Public Works Director VERI FI CA TION I, the undersigned, say: I am the Director of Public Works of the City EI Segundo, the declarant of the foregoing Notice of Completion; I have read said Notice of Completion and know the contents thereof, the same is true of my own knowledge I declare under penalty of perjury the foregoing is true and correct. Executed on ......... 2020 at EI Segundo, California. Mark Watkins Interim Public Works Director 17 EL SEGUNDO CITY COUNCIL AGENDA STATEMENT AGENDA DESCRIPTION: MEETING DATE: May 5, 2020 AGENDA HEADING: Consent Adopt and approve the classification list exempting certain classifications from participating in the Federal Families First Coronavirus Response Act (FFCRA) as adopted by the Federal Government on March 18, 2020. RECOMMENDED COUNCIL ACTION: 1. Adopt and approve the classification list in accordance with FFCRA; 2. Adopt attached Resolution (insert identifier) 3. Authorize City Manager (Personnel Officer or designee) to make necessary changes to classification list based upon overall pandemic response, reopening, and/or rebound effect of reopening 4. Authorize the Director of Human Resources to meet/confer as soon as practicable regarding the City's Emergency Sick Leave and Family Medical Care Leave Administrative Policy and classifications listing ATTACHED SUPPORTING DOCUMENTS: A. Classification listing accordance with FFCRA B. Resolution; FISCAL IMPACT: There is no fiscal impact to the FY 19/20 budget Amount Budgeted: Included in the FY 19/20 budget Additional Appropriation: N/A Account Number(s): 001 -400 -Various Departments -4101 (salaries full-time) STRATEGIC PLAN: Goal: 3 Develop as a choice employer and workforce Objective: 1 El Segundo is a city employer of choice and consistently hires for the future, with a workforce that is inspired, world-class and engaged, demonstrating increasing stability and innovation. ORIGINATED BY: David Serrano, Human Resources DirectoG? REVIEWED BY: Joe Lillio, Director of Finance �lV� Barbara Voss, Deputy City Manager Mark Hensley, City Attorney APPROVED BY: Scott Mitnick, City Manager: * BACKGROUND AND DISCUSSION: The City finds itself, along with all local municipalities throughout the United States, responding to the novel coronavirus (COVID-19) pandemic. The Federal Government has adopted the Families First Coronavirus Response Act (FFCRA) that is applicable to the City. The FFCRA provides two different benefits for certain employees, and requires the employer (the City) to identify those classification that are exempt from participation in the new law. The following information is a general outline of FFCRA benefits and qualification requirements, but is not intended to be exhaustive, nor comprehensive. FFCRA Benefits: The FFCRA provides two benefits to eligible employees, 1) up to 80 hours of employer paid sick leave (COVID-19sick leave) for eligible employees who qualify for the benefit, through December 31, 2020; and 2) amends the FMLA, to provide employer -paid COVID-19 Emergency FMLA (COVID-19 Emergency FMLA) leave for eligible employees who qualify for the benefit, through December 31, 2020. Qualification Requirements: In order to qualify for the COVID-19 sick leave benefits, the employee must have one or more of the following — a) subject to federal, state, or local quarantine or isolation order related to COVID- 19; b) employee has been advised by health care provider to self -quarantine due to concerns related to COVID-19; c) employee is experience symptoms of COVID-19 and is seeking medical diagnosis; d) employee is caring for an individual covered by a, b, or c, above; e) employee is caring for their child due to school closure, or closure of day-care, or day-care provider is unavailable due to a, b, c above; f) employee is experiencing any other or substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and Secretary of Labor. In order to qualify for the employer -paid benefits of the Emergency FMLA provisions, the employee must have one or more of the following — a) must have worked for the City for at least 30 calendar days; b) is unable to tele -work due to need to care for child who is incapable of self- care because of mental or physical disability, whose school or place of care has been closed, or whose child care provider is unavailable due to the COVID-19 emergency; c) has not exhausted FMLA leave (Emergency FMLA leave is a form of FMLA leave, and is not in addition to FMLA leave); d) there is no other suitable person available to care for the employees child during the period for which the employee takes Emergency FMLA leave. The information above is not intended to be comprehensive regarding the new federal law, nor incorporate all of the Department of Labor guidelines regarding implementation, but only to provide City Council with a primer and brief information regarding this law. Budget Impact: The FFCRA requires employers to pay the Emergency Sick Leave, and or certain amount of wages for the COVID-19 Emergency FMLA. The FFCRA has implemented capitation rates on the amounts employers are required to pay — the employee would receive their regular pay rate, subject to the daily or aggregate capitated amounts for Emergency Sick Leave; whereas under the COVID-19 Emergency FMLA, the employee would receive up to 2/3's of their regular rate for the FMLA period of time. These amounts, which are capped in a daily rate, and an individual aggregate amount, would be paid using existing payroll budgets, thus there would be no new money, nor any new impact toward the current Fiscal Year budget. 19 List of Classifications: The City is required by the new FFCRA to make a determination as to those positions exempt from participation in the FFCRA, and those positions eligible to participate. The criteria for determining participation included: whether or not the classification is a First Responder (federal guidelines include employees from Public Works (or performing public works type duties), Police and Fire Departments; whether or not the classification is providing direct support to First Responders (for example City Manager, Finance, City Clerk, and Human Resources Departments (Planning and Building Safety also provide some support services to Public Works); and whether or not the classifications is working on and supporting the City's All Hazards Incident Management Team. Based upon these criteria, there are very few positions at the City that are eligible for FFCRA benefits. The Council could broaden its application in it's discretion but this could reduce the workforce in a manner that inhibits the City's ability to respond to the emergency and increase operating expenses beyond what is required by federal law. Although it is not directly applicable to the FFCRA, it is also noteworthy that all City employees are considered under state law to be emergency responders during a state of emergency and the County's COVID-19 identifies all government employees and Essential Infrastructure. Please note, the City's temporary Administrative Policy and this classification list is subject to presentation to the labor associations. Under the emergency section of the MMBA, California Government Code Section 3504.5(b), allows the City on an emergency basis to postpone the duty to meet and confer until, "the earliest practicable time following the adoption of the ordinance, rule, resolution, or regulation." The City has determined that such emergency exists with the adoption and ratification of the City's Emergency Proclamations on March 17, 2020. As required by the FFCRA, the City's temporary emergency Administrative Policy, the classification list as attached, and the resolution, comply with the requirements of the FFCRA, and Staff recommends approval of this item. 20 Classifications Designated as Exempt from the Families First Coronavirus Response Act Accountant Accounting Supervisor Accounting Technician Accounting Technician Administrative Specialist Administrative Specialist — Fire Department Administrative Specialist (PPT) — Public Works Assistant City Engineer Assistant City Engineer Assistant Fire Marshal Assistant Planner— Essential Housing Projects Associate Engineer Associate Engineer (Part -Time) Battalion Chief Building Inspector I Building Inspector II Building Safety Manager Business Services Manager Chief of Police (At -Will) City Clerk City Engineer (At -Will) City Manager (At -Will) City Treasurer Civil Engineering Assistant Code Compliance Inspector Community Cable Program Specialist Community Cable Supervisor Computer Graphics Designer Councilmember Crime Prevention Analyst I Crime Prevention Analyst II Crime Scene Investigator I Crime Scene Investigator 11 Custodian Deputy City Clerk I Deputy City Clerk II Deputy City Manager Deputy City Treasurer I Deputy City Treasurer II Deputy Fire Chief Director of Finance (At -Will) Director of Human Resources (At -Will) Director of Information Systems (At -Will) Director of Library Services (At -Will) Director of Planning and Building Safety (At - Will) Director of Public Works (At -Will) Director of Recreation and Parks (At -Will) Economic Development Coordinator Emergency Management Coordinator Engineering Technician Environmental Safety Manager Equipment Maintenance Supervisor Equipment Mechanic I 21 Classifications Designated as Exempt from the Families First Coronavirus Response Act Equipment Mechanic II Executive Assistant— Police Department/City Managers Office Facilities Maintenance Supervisor Facilities Systems Mechanic Facilities Systems Mechanic (Part -Time) Finance Manager Fire Captain Fire Chief (At -Will) Fire Engineer Fire Equipment Mechanic Fire Marshal Fire Paramedic Fire Prevention Specialist Firefighter General Services Manager Human Resources Analyst Human Resources Assistant Human Resources Manager Human Resources Senior Analyst Information Systems Manager Information Systems Specialist Librarian I — If Assigned to All Hazard Incident Management Team (AHIM) Library Assistant — If Assigned to AHIM Library Assistant (PT) — If Assigned to AHIM Library Clerk I — If Assigned to AHIM Library Clerk I (PT) — If Assigned to AHIM Library Clerk II — If Assigned to AHIM Library Network Assistant — If Assigned to AHIM License/Permit Specialist I Management Analyst — If Assigned to AHIM Management Analyst — Police Department Management Analyst— Fire Department Management Analyst— Finance Mayor Meter Reader/Repairer Payroll Accountant Plan Check Engineer Planning Manager Police Assistant I Police Assistant I (Part -Time) Police Assistant II Police Cadet Police Cadet (Hourly) Police Cadet (Permanent Part -Time) Police Captain Police Lieutenant Police Officer Police Officer (Part-time) (Retiree) Police Officer Trainee Police Records Specialist I Police Records Specialist II Police Records Supervisor Police Sergeant 22 Classifications Designated as Exempt from the Families First Coronavirus Response Act Police Service Officer I Police Service Officer I (Part -Time) Police Service Officer II Principal Civil Engineer Principal Environmental Specialist Principal Planner Public Works Inspector Purchasing Agent Recreation Assistant — If Assigned to AHIM or Park Vista Facility Recreation Coordinator— If Assigned to AHIM or Park Vista Facility Recreation Leader— If Assigned to AHIM or Park Vista Facility Recreation Specialist— If Assigned to AHIM or Park Vista Facility Recreation Superintendent— If Assigned to AHIM or Park Vista Facility Recreation Supervisor— If Assigned to AHIM or Park Vista Facility Senior Administrative Analyst — Police Department Senior Administrative Specialist — Planning and Building Safety Senior Building Inspector Senior Civil Engineer (At -Will) Senior Engineer Associate Senior Librarian — If Assigned to AHIM Senior Library Assistant— If Assigned to AHIM Senior Management Analyst — Public Works and Fire Department Senior Network Assistant Senior Plan Check Engineer Senior Recreation Leader — If Assigned to AHIM or Park Vista Facility Senior Video Technician (Hourly) Senior Video Technician II (Hourly) Senior Video Technician II/Senior Media Specialist Senior Video Technician/Media Specialist Street Maintenance Leadworker Street Maintenance Supervisor Street Maintenance Worker I Street Maintenance Worker II Technical Services Analyst Video Technician I Video Technician I (Hourly) Video Technician II (Part -Time) (Hourly) Video Technician II/Media Assistant Video Technician III (Part -Time) (Hourly) Wastewater Maintenance Leadworker Wastewater Maintenance Worker I Wastewater Maintenance Worker I (Part -Time) Wastewater Maintenance Worker II Wastewater Supervisor Water Maintenance Leadworker (Part -Time) Water Maintenance Worker I (Part -Time) 23 Classifications Designated as Exempt from the Families First Coronavirus Response Act Water Maintenance Leadworker Water Maintenance Worker I Water Maintenance Worker II 24 RESOLUTION NO. A RESOLUTION ADOPTING THE FEDERAL LAW FAMILIES FIRST CORONAVIRUS CLASSIFICATION EXEMPTION LIST AND AUTHORIZING THE CITY MANAGER TO TAKE ANY ACTIONS NECESSARY TO EFFECTUATE THE FAMILIES FIRST CORONAVIRUS REQUIREMENTS The City Council of the City of EI Segundo does resolve as follows: SECTION 1: The City Council finds and declares as follows: A. Due to the Novel Coronavirus (Covid-19) pandemic, the City of EI Segundo proclaimed an Emergency on March 16, 2020 (with City Council adoption of the Proclamation of Emergency on March 17, 2020), invoking Disaster Services Workers, and activating the City's All Hazard Incident Management Team (AHIMT); B. On March 18, 2020, President Donald J. Trump signed into law the Families First Coronavirus Response Act ("FFCRA"), which includes the Emergency Paid Sick Leave Act ("EPSLA") and the Emergency Family and Medical Leave Expansion Act ("EFMLEA"); C. The FFCRA authorizes public agencies to exclude "emergency responders" from the EPSLA and the EFMLEA, and from receiving the leave benefits provided under those acts. (H.R. 6201, §§ 3105, 5102.); D. The Department of Labor ("DOL") subsequently issued temporary regulations defining the terms "emergency responder" as used in the FFCRA; E. According to the DOL, "emergency responder" means any employee "necessary for the provision of transport, care, healthcare, comfort and nutrition of such patients, or others needed for the response to COVID-19. This includes but is not limited to military or national guard, law enforcement officers, correctional institution personnel, fire fighters, emergency medical services personnel, physicians, nurses, public health personnel, emergency medical technicians, paramedics, emergency management personnel, 911 operators, child welfare workers and service providers, public works personnel, and persons with skills or training in operating specialized equipment or other skills needed to provide aid in a declared emergency, as well as individuals who work for such facilities employing these individuals and whose work is necessary to maintain the operation of the facility. This also includes any individual whom the highest official of a State or territory, including the District of Columbia, determines is an emergency responder Page 1 of 2 25 necessary for that State's or territory's or the District of Columbia's response to COVID-19." (29 C.F.R 826.30(c)(2).); F. In order to ensure the continued provision of emergency services, the City of EI Segundo adopts this policy to exclude certain job classifications that are necessary to the City's provision of emergency services from the provisions of the Families First Coronavirus Response Act ("FFCRA"), including the Emergency Paid Sick Leave Act ("EPSLA") and the Emergency Family and Medical Leave Expansion Act ("EFMLEA").; G. The City Manager has identified the following job classifications whose services are necessary in order for the City of EI Segundo to provide emergency services and in order to respond to the COVID-19 emergency, and deems the following job classifications as "Emergency Responders": See Attachment A This list is subject to change at any time by the City Manager. H. The City Council finds it is in the safety of the public to adopt the classification listing exempting certain classifications form participation in the FFCRA; and, SECTION 2: Adoption and Authorization. The City Council hereby adopts the Classification Listing exempting certain classifications from participating in the FFCRA, as attached as Exhibit A and incorporate into this resolution in full by reference. The City Manager or his designee is hereby authorized to take any actions necessary to effectuate the implementation of the FFCRA and this Resolution. SECTION 3: The City Clerk is directed to certify the adoption of this Resolution. SECTION 4: This Resolution will become effective immediately upon adoption. PASSED AND ADOPTED this 5th day of May, 2020. Drew Boyles, Mayor ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM: Mark D. Hensley, City Attorney Attachment: Exhibit A — Classifications Exempt from FFCRA 2020 Page 2 of 2 26 EL SEGUNDO CITY COUNCIL MEETING DATE: May 5, 2020 AGENDA STAFF REPORT AGENDA HEADING: Staff Presentation SUBJECT Fiscal Year 2019-2020 General Fund Mid -Year Budget Update and Recommended Adjustments RECOMMENDEDATION 1. Receive FY 2019-2020 General Fund Mid -Year Budget Update. 2. Amend FY 2019-2020 General Fund Revenues from $76,710,208 to $67,107,993 and Appropriations from $80,782,540 to $74,595,883 (as itemized in Exhibit A). FISCAL IMPACT The proposed General Fund budget adjustments are necessary to absorb the significant economic impacts of the COVID-19 pandemic and to ensure the FY 2019-2020 ends with a balanced budget on September 30, 2020. STRATEGIC PLAN COMPLIANCE Implementation of staff s recommendations will ensure compliance with the Citywide 2020- 2022 Strategic Plan, including: Goal: 5(b) Champion Economic Development and Fiscal Sustainability: El Segundo approaches its work in a financially disciplined and responsible way Objective: 1 City will maintain a structurally balanced budget 2 City will maintain a stable, efficient, and transparent financial environment Prepared by: Joseph Lillio, Director of Finance V V Reviewed & Approved by: Scott Mitnick, City Manager x/ BACKGROUND The City uses a federal fiscal year budget calendar which runs from October 1St to September 30th. On September 3, 2019, City Council adopted the FY 2019-2020 Citywide Operating Budget of $137,748,721 for all funds. Of this amount, $80,782,540 was allocated to the General Fund Budget. The General Fund pays for the majority of the City's basic operations, services, and general capital improvement projects. Sample General Fund services include: public safety (police, fire, paramedics, emergency services), public works (highways, streets, engineering), community services (parks, recreation programs, senior programs, teen programs, library, arts & culture), community development (planning, building services, zoning, housing), support services (City Clerk, City Treasurer, finance, information technology, human resources), and general governance and administration (City Council, City Manager, City Attorney). S 27 The following table provides an overview of the Adopted FY 2019-2020 Operating Budget: 1 General Fund $80,782,540 58.6% 2 Water Fund 29,622,670 21.5% 3 Equipment Replacement Fund 7,849,761 5.7% 4 Wastewater Fund 5,235,334 3.8% 5 Workers Compensation Fund 2,934,272 2.1% 6 CIP Fund 2,749,000 2.0% 7 Transportation Funds 2,284,527 1.7% 8 General Liability Fund 1,783,333 1.3% 9 Public Safety Revenue Fund 1,661,565 1.2% 10 Golf Fund 1,417,800 1.0% 11 Other Special Revenue Funds 578,806 0.4% 12 Debt Service Fund 545,000 0.4% 13 Solid Waste Fund 545,000 0.0% 14 Senior Housing Fund 74,113 0.1% In addition to the General Fund, the City maintains a series of Special Revenue Funds (including Transportation Funds and Public Safety Fund); a Debt Service Fund (for Douglas Street Gap Closure Project); Capital Improvement Projects Fund; four Enterprise Funds (Water, Wastewater, Golf, and Solid Waste); three Internal Service Funds (Equipment Replacement, Liability Insurance, and Workers' Compensation); and, a Senior Housing Fund. It is the City's practice to prepare quarterly budget updates. On February 18, 2020, City Council was provided with a FY 2019-2020 First Quarter Budget Update for all funds which reflected a strong and positive outlook for all funds, due to a very healthy and diverse local economy. In fact, the early indications were that General Fund revenues would end the fiscal year with a greater than originally estimated outcome. The future of the City looked robust and positive. Shortly after the February 18th First Quarter Budget Update, the unanticipated effects of the global COVID-19 pandemic started to work their way into the United States. By mid-March, the national government, State of California, Los Angeles County, and City of El Segundo issued a series of emergency declarations, proclamations, and executive/administrative orders to protect the physical health of local residents. These orders included shutting down all "non-essential" businesses and requiring the vast majority of residents to stay at home until the orders are lifted. This resulted in the significant drop in recurring General Fund revenues and the decision to shut down a variety of City services, including: Recreation & Park programs, Library services, and cultural programs. All City facilities were shut down to the general public as well. Given the significant impact COVID-19 is having on the General Fund, the bulk of this mid -year analysis will focus on the General Fund. After the General Fund discussion, there will be a brief update to the other fund categories for FY 2019-2020. 2 DISCUSSION GENERAL FUND: To better understand the impacts of COVID-19 on the General Fund, and the necessary corrective steps to ensure that FY 2019-2020 budget remains balanced by year-end on September 30, 2020, staff did a thorough review and analysis of both revenues and expenditures. By April 21, 2020, staff analyzed three different scenarios based on the timing of the peak of the virus and beginning of the economic recovery. Each scenario assumes a time separation of three months as follows: • Scenario One: Virus peaks in May 2020 & Economic Recovery starts in July 2020 In this scenario, the General Fund is projected to experience a $9.6 million (or 12%) FY 2019-2020 revenue loss. • Scenario Two: Virus peaks in August 2020 & Economic Recovery starts in Oct. 2020 In this scenario, the General Fund is projected to experience a $15.2 million (or 20%) FY 2019-2020 revenue loss. Scenario Three: Virus peaks in Dec. 2020 & Economic Recovery starts in January 2021 In this scenario, the General Fund is projected to experience a $16.1 million (or 21%) FY 2019-2020 revenue loss plus starting FY 2020-2021 (October 1, 2020) with a much lower base than last year. With each scenario, the level of necessary off -setting budget appropriation reductions, position reductions, and service impacts becomes more pronounced. Based on the current status of the existing emergency declarations, proclamations, and orders, combined with staff's financial analysis to date, staff is basing its FY 2019-2020 General Fund Mid -Year Budget Review and recommended actions, at this time, on Economic Recovery Scenario One. Under this scenario, it is anticipated that the COVID-19 virus will officially peak in May 2020, the State of California and Los Angeles County will lift the more restrictive emergency orders by the end of May, and that the local economy begins to slowly recover starting in July. Staff will do a FY 2019-2020 Nine -Month Budget Update in July/August (as part of the FY 2020-2021 Annual Budget preparation process) to determine if it will be necessary to shift to the Economic Recovery Scenario Two model. At the same time, if other factors develop (such as new State of California or Los Angeles County orders that push the economy recovery further out), staff will further evaluate the status of the FY 2019-2020 General Fund Budget and report back to City Council when needed. 29 Economic Recovery Scenario One: FY 2019-2020 General Fund Budget Adjustments The following table summarizes Scenario One's impact on the City's General Fund Budget: Table 1: Revised General Fund Balances for Fiscal Year-end 2019-20 (Scenario One) 1 Beg. Fund Balance (10/o1/19) $20,783,395 $24,198,953 $3,415,558 18% 2 Revenues 76,710,208 67,107,993 (9,602,215) (12%) 3 Appropriations (80,782,540) (74,595,883) (6,186,657) (8%) 4 Use of Reserves 0 0 0 - 5 End. Fund Balance (9/30/20) 16,711,063 16,711,063 0 - 6 Transfer -out Pension Trust (1,559,000) (1,559,000) 0 - 7 Total Reserves at Year-end $15,152,063 $15,152,063 $0 - General Fund Revenues The Adopted FY 2019-2020 General Fund Budget included estimated revenues totaling $76,710,208. Due to the impact of COVID-19, staff is estimating that revenues will decline by $9,602,215 (12%) to $67,107,993. Prior to the pandemic taking shape in March 2020, the initial FY 2019-2020 revenues were actually performing better than anticipated and were on track to reach approximately $81,000,000 by year-end (September 30, 2020). As a result, the revised post COVID-19 year-end revenue estimate reflects a de -facto $14,000,000 (17.3%) decline from the peak pre COVID-19 year-end projection. However measured, the estimated decline in General Fund revenues in FY 2019-2020 under Scenario One is significant. The following table reflects the revised revenue estimates: Table 2: FY 2019-20 Revised General Fund Revenue Estimates 1 Transient Occupancy Tax $15,200,000 9,059,660 $(6,140,340) (40%) 2 Business License Tax 12,510,000 12,260,000 (250,000) (2%) 3 Sales Tax 11,500,000 10,676,000 (824,000) (7%) 4 Property Tax 8,816,500 8,599,500 (217,000) (3%) 5 Utility Users Tax 6,450,000 5,992,062 (457,938) (7%) 6 Tax Resolution Agreement 5,600,000 5,902,063 302,063 5% 7 Charges for 5,298,845 3,798,845 (1,500,000) (28%) 8 Other Revenues 3,218,995 3,018,995 (200,000) (6%) 9 Franchise Tax 3,200,000 3,200,000 0 - 10 Intergov. Revenues 1,851,490 1,926,490 75,000 3% 11 License & Permits 1,688,358 1,538,358 (150,000) (12%) 12 Interest & Rentals 824,000 804,000 (20,000) (2%) 13 Fines & Forfeitures 412,020 192,020 (220,000) (53%) 14 Transfers —in 140,000 140,000 0 - al WE The major estimated General Fund revenue reductions are: • Transient Occupancy Tax -- $6,140,340 (40%) • Charges for Services -- $1,500,000 (28%) • Sales Tax -- $824,000 (7%) • Utility Users Tax -- $457,938 (7%) • Business License Tax -- $250,000 (2%) • Fines and Forfeitures (primarily parking citations) -- $220,000 (53%) • Property Tax -- $217,000 (3%). In an effort to provide additional analysis, the table below provides a list of major revenues and their performance through the second quarter compared to the adopted revenues, as well as compared to the second quarter revenues from the prior year (FY 2018-19). Following this table is a more detailed discussion of the top five General Fund revenue sources. Table 3: General Fund Revenues 2"d Quarter Analysis 1 Transient Occupancy Tax $15,200,000 $4,272,692 28% $3,960,514 2 Business License 12,510,000 11,636,300 93% 11,790,628 3 Sales & Use Tax 11,500,000 4,354,864 38% 4,320,449 4 Property Tax 8,816,500 5,053,916 57% 4,656,766 5 Utility Users Tax 6,450,000 3,331,150 52% 3,849,820 6 Tax Resolution Agreement 5,600,000 5,902,063 105% 6,171,627 7 Charges for Services 5,298,845 2,418,596 46% 2,066,486 8 Other Revenues 3,218,995 768,859 24% 1,333,145 9 Franchise Tax 3,200,000 76,015 2% 84,549 10 Intergov. Revenues 1,851,490 1,002,652 54% 888,145 11 License & Permits 1,688,358 1,195,886 71% 961,186 12 Interest & Rentals 824,000 487,162 60% 593,267 13 Fines & Forfeitures 412,020 131,740 32% 284,934 14 Sub -Total $76,570,208 $40,631,895 53% $40,961,516 15 Transfers In 140,000 140,000 100% 16 Total General Fund $76,710,208 $40,771,895 530W $40,961,516 5 31 Transient Occupancy Tax (TOT): FY 2018-19 2nd Quarter $3,960,514 FY 2018-19 Year-end (YE) $ 14,598,200 FY 2019-20 2nd Quarter 1 4,272,692 FY 2019-20 Revised YE 1 9,059,660 Although TOT revenues are the largest single revenue source, revenues for this year was trending higher than the previous year through March 31. Due to the impact of COVID-19, both leisure and business travel have come to a complete stand -still. The month of March saw a Citywide hotel occupancy rate of only 44%. The normal occupancy rate averages 80% to 90%. For the months of April -June, the occupancy rate is anticipated to be just 5%. As the Stay -At - Home orders are gradually lifted, the local economy will slowly begin to recover in July. It is anticipated the TOT revenue will decrease by $6,140,340 for the year. Pre COVID-19, this revenue source was on track to achieve the budgeted revenue of $15,200,000. Staff will continue to monitor occupancy and the tax receipts closely. The below graph provides a 20 -year history of TOT revenue: 0 32 Business License Tax: FY 2018-19 2nd Quarter $11,790,628 FY 2018-19 Year-end (YE) $ 12,225,018 FY 2019-20 2nd Quarter 1 11,636,300 FY 2019-20 Revised YE 12,260,000 The City's second largest General Fund revenue source is Business License Tax, accounting for 16% of its total estimated revenues. The majority of this revenue stream is collected in December and January. It is anticipated that this revenue will be slightly lower than budget this year due to a reduction in filming activity as a result of COVID-19 restrictions, as well as fewer new businesses opening within the City in the 3`d and 4th quarters due to COVID-19. Pre COVID-19, this revenue source was on track to achieve the budgeted revenue of $12,510,000. The graph below provides a 20 -year history of Business License Tax revenues: 7 33 Sales Tax: FY 2018-19 2nd Quarter $4,320,449 FY 2018-19 Year-end (YE) $13,023,091 FY 2019-20 2nd Quarter 4,354,864 FY 2019-20 Revised YE 10,676,000 Sales Tax is the third largest revenue source, accounting for about 15% of the total General Fund revenues. Sales Tax receipts for the first half of the year are almost identical to the same period last year. It is anticipated that this revenue will decrease by $824,000 for the current year due to a reduction in taxable sales transactions within the City as a result of COVID-19 restrictions. Pre COVID-19, this revenue source was trending higher than the budget at $13,000,000. Please note also that the Sales Tax revenue estimates also take into consideration the temporary COVID-19 Sales Tax Deferment Executive Orders issued by the Governor, as follows: • Governor's Executive Order provides 90 -day extension for first quarter filings • Businesses with returns of <$1,000,000 will receive an extra three months to file (through July 31, 2020). • Since these revenues will be received in July 2020, this executive order will not impact the City's Sales Tax revenue for FY 2019-20. This represents a three month delay in cash flow. • California Department of Tax and Fee Administration (CDTFA): 12 -month, interest free, $50,000 deferral • Small businesses (annual gross revenues of $5,000,000 or less) may enter into payment plans to distribute up to $50,000 of sales tax liability over a 12 -month period, interest-free with monthly installments due beginning in July 2020, and final payment due by June 30, 2021. The City's anticipated exposure is approximately $195,000. The below graph provides a 20 -year history of Sales Tax revenues: 34 Property Tax: FY 2018-19 2nd Quarter $4, 56,766 FY 2018-19 Year-end (YE) $ 8,468,828 FY 2019-20 2nd Quarter 1 5,053,916 1 FY 2019-20 Revised YE 8,599,500 This revenue source is anticipated to be approximately $400,000 higher than the same period last year mainly due to continuous restoration and remodel construction projects. which increased aggregate assessed value. This figure also reflects the 2% CPI increase applied by the Assessor's Office. The COVID-19 pandemic will not affect the current year assessed values that were determined in early 2019. However, it is anticipated the April 2020 installment may have a slightly higher delinquency rate than normal. This higher delinquency rate is expected to reduce Property Tax revenues by $217,000. The bulk of Property Tax revenue is received from the County in four large payments that occur in December, January, March, and April of each year. The graph below provides a 20 -year history of Property Tax revenues: W 35 Utility Users Tax: FY 2018-19 2"d Quarter $3,849,820 FY 2018-19 Year-end (YE) $ 7,421,219 1 FY 2019-20 2"d Quarter 3,331,150 FY 2019-20 Revised YE 5,992,062 This revenue was trending approximately $600,000 higher than the budget of $6,450,000 prior to March 2020. The revenue estimate is being revised downward to $5,992,062 for a reduction of just under $500,000, due to the negative impacts of COVID-19. The graph below provides a 20 -year history of UUT revenues: Charges for Services: FY 2018-19 2"d Quarter $2,066,486 FY 2018-19 Year-end (YE) $5,255,706 FY 2019-20 2"d Quarter $2,418,596 FY 2019-20 Revised YE $3,798,845 These revenues include Recreation and Parks programming and services, Zoning and Planning fees, Plan Check fees, Plan Retention fees, Energy Plan Check fees, Planning Service fees, and Paramedic Transport. These revenues are anticipated to decline by $1,500,000, primarily due to Recreation and Parks programming closed through early June. Since the cost of these programs are subsidized by the General Fund, the reduced costs to run these programs will be more than offset by the lost revenue for this activity. 10 36 Recommended FY 2019-2020 Mid -Year General FL111d f3udaet AdjUStMents To adjust to the Economic Recovery Scenario One revenue impacts, staff has identified $9.6 million in FY 2019-2020 General Fund Mid -Year fiscal adjustments, as follows: 1. Use of FY 2018-19 General Carryover Balance of $3.4 million 2. Reduced FY 2019-20 General Fund Appropriations of $6.2 million A. $4.3 million in reduced Operating Appropriations • $3.1 million in reduced Salaries & Benefits (Approx. 33 full-time positions & 125 part-time positions remain vacant) • $1.3 million in reduced Maintenance & Operations B. $1.8 million in deferred Capital Improvement Projects (moved into FY 2020-2021) 3. No use of General Fund Reserve or Economic Uncertainty Reserve Use of FY 2018-19 General Fund Budget Carryover Balance As of the end of March 2020, City completed its FY 2018-19 Year -End Financial Audit. When the FY 2019-20 Annual Budget was prepared, the estimated year-end revenues and expenditures for FY 2018-19 were based on prior assumptions. The final audit resulted in an unaticipated FY 2018-2019 General Fund budget carryover balance of $3,415,558 which was due to higher than anticipated position vacancies (increased employee turnover) and a $1,123,000 Sales Tax back payment due to a glitch in the State's new computer software program. Revised General Fund Appropriations/Expenditures The Adopted FY 2019-20 General Fund included Appropriations totaling $80,782,540. This figure included a built-in 5% vacancy rate (14 positions) throughout the year which will result in a savings of about $2.2 million. Due to the impact of COVID-19, staff is recommending a series of strategic operating reductions and deferral of five capital improvement projects into FY 2020- 21 for a total savings of $6.2 million. The following table reflects the revised appropriations/expenditures by category: Salaries & Benefits $60,019,674 $56,929,096 $(3,090,578) Maintenance & Operations 18,002,376 16,706,297 (1,296,079) Capital Outlay (non-CIP) 11,490 11,490 0 4 Total Operating 78,033,540 73,646,883 (4,386,657) 5 Capital Improvement Projects 2,695,000 895,000 (1,800,000) 6 Capital Improvement Design 54,000 54,000 0 11 37 The major reductions in General Fund appropriations of $6,186,677 is as follows: Salaries & Benefits Reductions: $3,090,578 19 Full -Time Position Vacancies -- $2,044,737 125 Part -Time Position Vacancies -- $474,600 • Health Insurance Savings -- $571,241 The current vacancy rate is about 12% (33 positions). This is an additional 7% (19 positions) over what the budget anticipated at 5% (14 positions). The total impact of maintaining a 12% vacancy rate eqals approximately 33 full-time positions. Also, due to the Recreation and Parks and Library programs and services being shuttered for March -May there will be salary savings from part-time staff. For example, approximately 125 seasonal part-time positions are not being paid. A selective hiring freeze will remain in place for the remainder of FY 2019-20. A Vacancy Review Committee has been established and meets on a regular basis to analyze each vacant position to determine whether the position should remain within the organizational structure. If the position is determined to remain, the review committee will further determine if the position should be frozen or open for recruitment. Depending on the level of retirements and employees continuing to leave for other organizations, this strategic decision will likely save the City up to an additional $1 million beyond the amount reflected above, if not more. Maintenance & Operations Reductions: $1,296,079 • Professional Services -- $827,700 • Utilities & Fuel Savings -- $150,000 • Travel & Training -- $275,000 • Emergency Repairs -- $43,379 These savings reflect reductions in professional service contracts in various departments, including: Planning & Building Safety, Library, and Recreation & Parks totaling $800,000. There will also be a reduction in utility costs, fuel, and travel and training budgets in the amount of $300,000. Travel for training will be limited to COVID-19 pandemic instruction, economic recovery, and essential training and professional development, as approved by the City Manager. If Recreation & Parks programs remain closed through the summer, there will likely be an additional $1.2 million to $1.5 million in operating appropriation/expenditure savings. 12 01 Capital Improvement Project Deferrals into FY 2020-2021: $1,800,000 Based on City Council's direction to defer non-essential capital improvement projects, along with looking at those projects which do not have legal commitments to continue to move forward, staff recommends defering five projects into FY 2020-2021. This recommendation will result in an additional $1.8 million in short-term savings. The following table reflects the revised Capital Improvement Projects (listed in red) for FY 2019-20: It is important to recognize that some of the recommended deferred projects have already incurred design and other costs to date and may achieve reduced construction costs by staying on schedule due to current economic conditions. Delaying these projects may result in increased future costs due to both potential future increased construction costs and increased opreating cost impacts associated with existing deteriorating facility conditions. In addition, moving forward with these projects would help stimulate the local economy by providing local construction jobs, support jobs, and have a multiplier effect on other local industries. The above table only reflects those capital improvement projects which were in the FY 2019-20 General Fund CIP Budget. It does not account for other capital improvement projects paid for via other funds (such as Water Fund, Wastewater Fund, Transportation Fund, etc.). Further, it does include General Fund capital improvement projects that have yet to recevie funding, such as The Plunge Pool Renovation Project. These projects will be reviewed and acted on by City Council via separate future agneda items. It is also possible that most of these type of projects will be consdiered via the upcoming FY 2020-2021 General Fund Budget preparation process. 13 39 Adopted General Fund Unexpended FY 2019-2020 1 Teen Center Upgrades (defer into FY 2020-21) $800,000 2 City Hall Windows Replacement ($500,000 budgeted; $50,000 est. expended; defer $450,000 into FY 2020-21) 450,000 3 Fiber Vault Lids Replacements ($300,000 budgeted; $150,000 est. expended: defer $150,000 into FY 2020-21) 150,000 4 Acacia Park Construction (defer into FY 2020-21) 300,000 5 Police Firing Range Remodel (project is committed to be completed) 204,000 6 Recreation Park Restrooms Rehabilitation 200,000 7 City Hall Security Improvements 125,000 8 Library Park Project (grant funding component) 120,000 9 Fitness Trail at Memory Row (defer into FY 2020-21) 100,000 10 Catch Basin Inserts Installations RevisedAdopted General Fund Allocation to CIP 100,000 $2,749,000 $949,000 It is important to recognize that some of the recommended deferred projects have already incurred design and other costs to date and may achieve reduced construction costs by staying on schedule due to current economic conditions. Delaying these projects may result in increased future costs due to both potential future increased construction costs and increased opreating cost impacts associated with existing deteriorating facility conditions. In addition, moving forward with these projects would help stimulate the local economy by providing local construction jobs, support jobs, and have a multiplier effect on other local industries. The above table only reflects those capital improvement projects which were in the FY 2019-20 General Fund CIP Budget. It does not account for other capital improvement projects paid for via other funds (such as Water Fund, Wastewater Fund, Transportation Fund, etc.). Further, it does include General Fund capital improvement projects that have yet to recevie funding, such as The Plunge Pool Renovation Project. These projects will be reviewed and acted on by City Council via separate future agneda items. It is also possible that most of these type of projects will be consdiered via the upcoming FY 2020-2021 General Fund Budget preparation process. 13 39 Use of General Fund Reserve and/or Economic Uncertainty Reserve Staff is not recommending the use of the General Fund Reserve or the $2,000,000 Economic Uncertainty Reserve, as part of Economic Recovery Scenario One. If staff recommendations are approved, this will result in a continued balanced budget for FY 2019-20, while maintaining a 18% General Fund Reserve, in addition to a $2 million Economic Uncertainty Reserve, for a combined General Fund de facto total reserve of 20%. Multi -Year General Fund Impact of Economic Recovery Scenario One The graph below provides the current FY 2019-2020 year-end forecast with staff recommendations to address the current fiscal issues related to COVID-19, as well as a five-year projection. The `gray horizontal line represents the projected fund balance for each fiscal year. The orange horizontal line represents the Government Finance Officers Association (GFOA) recommended minimum General Fund balance of two months of appropriations/expenditures. Note: FY 2020-2021 represents a nine month fiscal year, as a result of converting to a July 1 to June 30 fiscal year starting on July 1, 2021. Investment Portfolio Impact In addition to maintaining the General Fund Reserve and $2,000,000 of the Economic Uncertainty Reserve, City's total investment portfolio as of April 15, 2020 was approximatley $105.1 million (with $31.5 million belonging to the General Fund). This is the highest portfolio balance in the City's history. The City's investment portfolio did not lose any funds associated with the COVID-19 pandemic crisis. Each investment remains secure. 14 .N SPECIAL REVENUE FUNDS: Special Revenue funds are used to account for, and track, dedicated programs funded primarily from dedicated Federal, State, and County programs. Funding for these programs usually come legal restrictions. Examples include: Traffic Safety Fund, State Gas Tax Funds, Asset Forfeiture Fund, Measure R Transportation Fund, Measure M Transportation Fund, Proposition A Transportation Fund, Proposition C Transportation Fund, CDBG Fund, COPS Fund, and other Federal and State grant funds. Those special revenue funds that are not related to transportation are on track with the adopted budget for these funds. The Special Revenue funds related to transportation were on track to meet the current year revenue budget prior to COVID-19. Since most of these funds are based on sales taxes and gas taxes, they will be negatively impacted for the second half of the fiscal year. The magnitude of COVID-19 on fuel consumption and, therefore, tax collections and allocations depend on many as -yet unknown factors, including: the impact of the disease itself, continued restrictions by Federal and State governments on activities, and changes in transportation choices through the recovery. Many of the larger road transportation projects in California will be curtailed for several months to come. The timing and funding of City's Park Place Transportation Project, for example, may be negatively impacted. Fuel taxes are collected each month for sales occurring in the prior month and then allocated according to statute. Consequently, the City will begin to see the effect of COVID-19 starting with the May 2020 allocations. Cities will likely see a reduction in FY 2019-20 Road Maintenance Rehabilitation Account (RMRA) allocations of approximately 20% and of Highway Users Tax Act (HUTA) allocations of approximately 30%. Using these assumptions, the fiscal impact for El Segundo may be a decrease of approximately $200,000 for Gas Tax/SB-1 funding in FY 201-2020. The allocation of these funds to the City for FY 2020-21 will be known by June 2020 and incorporated into the Proposed FY 2020-21 Annual Budget. It is possible that the impact to the FY 2020-21 budget will be milder. However, this will depend on the timing of the economic recovery. COVID-19 will have a fiscal impact on the County transportation -related revenues (Measure M, Measure R, Proposition A, and Proposition Q. The FY 2019-2020 reduction is anticipated to be 20%. This may result in a reduction of approximately $220,000 from transportation related revenues. In preparing the FY 2020-21 Budget, staff will analyze the impact these revenue declines will have on the City's ability to properly maintain local streets and sidewalks, along with the City's various transportation programs. 15 41 DEBT SERVICE FUND The Debt Service fund records the City's lease payments for the Douglas Street Gap Closure capital improvement project. In September 2005, the City entered into a facility lease agreement with California Infrastructure and Economic Development Bank (CIEDB) whereby CIEDB issued $10,000,000 in bonds to finance the Douglas Street Gap Closure Project. The City makes semi-annual lease payments over a 30 -year period from Traffic Mitigation Fees which began in February 2006. The Debt Service Fund is on target to meet the revenue and expenditure budgets. ENTERPRISE FUNDS Water Fund Water Fund revenues are on track with the budget and the difference from last year is due to timing issues in revenue recording for the specific period. The prior year expenses were $800,000 higher due to additional capital projects in the prior year. Other expenses are on track. Revenues: FY 2018-19 2"d Quarter Revenues $16,159,851 FY 2019-20 2nd Quarter Revenues 15,367,117 FY 2019-20 Adopted Budget 31,281,360 Expenditures: FY 2018-19 1 1 Quarter Expenses $1.3,544,785 FY 2019-20 1St Quarter Expenses 12,732,419 FY 2019-20 Adopted Budget 29,812,$73 Wastewater Fund Wastewater Fund revenues are on track with the budget projection and the difference from last year's same period is due to timing issues in revenue recording for the specific period. There are three capital improvement projects: annual sewer main repair, AMR Meters install, and the wastewater pump station rehabilitation totaling $1 million. Expenses are on track with budget. Revenues: FY 2017-18 1" Quarter Revenues $2,517,614 FY 2018-19 1St Quarter Revenues 2,172,874 FY 2018-19 Adopted Budget 3,886,200 Expenditures: FY 2018-19 1" Quarter Expenses $1,957,772 FY 2019-20 11t Quarter Expenses 1,816,822 FY 2019-20 Adopted Budget 5,330,136 16 W Golf Course Fund Golf Course fund revenues were $563,783, or 38% of budget, for the 2 quarter. Revenues decreased due to the anticipated timing of the upcoming conversion to a Topgolf facility and unexpected timing of the COVID-19 pandemic. Expenses of $690,655 are at 49% of budget. Expenses continue to track higher than revenues. On average, the Golf Course Fund has a net operating loss of $21,667 per month, or about $260,000 per year. This recurring short -fall is made up via a continued General Fund subsidy. Staff will continue to monitor the Golf Course Fund and any developments that will impact its future operations. INTERNAL SERVICE FUNDS The City manages three Internal Service funds: 1) Equipment Replacement fund, 2) Liability Insurance fund, and 3) Workers Compensation Insurance fund. The Equipment Replacement fund is trending under budget. The Workers Compensation fund is trending higher than budget. This fund will be closely monitored to determine if future budget adjustments are necessary. The General Liability Insurance fund is on target to meet the adopted budget. Staff will continue to monitor and report any changes during the 3rd quarter financial review. SENIOR HOUSING FUND In 1986, the City constructed a 97 -unit senior housing project, Park Vista. The City continues to own and maintain Park Vista. The property is overseen by the Senior Citizen Housing Corporation Board and managed by a third party property management firm, The Cadman Group. The FY 2019-2020 Senior Housing Fund budget is $74,113, which includes $60,000 for capital improvements. Through March 31, 2020, expenses of $5,638 have been incurred. Economic Recovery Scenario Two: FY 2019-2020 General Fund Budget Adjustments If the State and/or Los Angeles County emergency orders are extended into June or July and/or the economic recovery doesn't start until closer to October, then staff will return to City Council with the recommendation to shift to Scenario Two budget reductions. For the General Fund, total revenue losses would approach $15,200,000 and trigger up to $5,600,000 in additional FY 2019-2020 Budget appropriation reductions (including a reduction of six more positions). Economic Recovery Scenario Three: FY 2019-2020 General Fund Budget Adjustments If the State and/or Los Angeles County emergency orders are extended through the end of fiscal year (through September 30, 2020) and/or the economic recovery doesn't start until January 2021, then staff will return to City Council with the recommendation to shift to Scenario Three budget reductions. For the General Fund, this may involve up to another $900,000 in additional FY 2019-2020 Budget appropriation reductions and potentially more significant reductions in FY 2020-2021. 17 43 If Scenario Three were to play out, FY 2020-2021 will start out on October 1 with a significantly lower base budget than last year. This would require the City to make fundamental changes to how it delivers municipal services to the public. Without spending down reserves and/or obtaining new revenues sources right away, the City would have to further reduce service levels and positions. In some cases, actual services might have to be eliminated completely. However, the City is not yet at this stage and it does not appear that will happen based on the current COVID-19 situation and anticipated timing of recovery of our local economy. The City needs to remain cognizant of the wide range of uncertainty that lies ahead. FY 2819-2020 Budget Summary If approved by City Council, staff will implement the proposed FY 2019-20 General Fund Revenue and Appropriations adjustments based on the Economic Recovery Scenario One model. These adjustments are the necessary implementation action items to ensure that FY 2019-2020 ends with a balanced budget on September 30, 2020. Going forward, staff will continue to continue to deploy a series of internal financial management tools to ensure that the City is able to weather the COVID-19 financial storm. Some of these tools include: • Use of a "Selective Hiring Freeze," with each new position recruitment to be approved by the City Manager. • Use of an internal "Vacancy Review Committee" (City Manager, Finance Director, and Human Resources Director) to review Citywide position vacancies every other week to determine which positions to retain in the budget and which ones should be removed. Over the course of the remaining five months of FY 2019-2020 (May through September), staff will continue monitor recurring revenue and expenditures to ensure the budget remains balanced. Part of this effort will include a "Nine -Month Budget Review" in July/August to determine if it will be necessary to shift the Economic Recovery Scenario Two model. At the same time, if other factors (such as new State of California or Los Angeles County orders come out that push the economy recovery further out), staff will further evaluate the status of the FY 2019-2020 General Fund Budget and report back to City Council. Proposed FY 2028-2021 Budget Preparation Process As part of the upcoming FY 2020-2021 Annual Budget preparation process, staff will further explore other budget balancing options, including: • Review existing labor contracts • Use of furloughs (including winter holidays furlough) ■ Voluntary reduction in hours • Further position reductions IN a Increased use of private contracts/privatization of services a Regionalization of services a Additional "Pension Reform" options a Across-the-board appropriation cuts a Continued deferred maintenance a Sale of City property and assets a End of General Fund subsidies a Use of General Fund Reserves and/or Economic Uncertainty Reserves a Revenue enhancements a Additional service reductions a Citywide re -organization to achieve a more efficient operational structure a Other items (TBD) The next steps in working with City Council on the Proposed FY 2020-21 Budget include: a 2020-2022 Citywide Strategic Plan Study Session with City Council in July 2020 a FY 2020-2021 Annual Budget Study Session with City Council in August 2020 a FY 2020-2021 Annual Budget Pubic Hearing with City Council on September 15, 2020 Long -Term Financial Strategic Plan As a reminder, staff is working with a financial firm to prepare a Long -Term Financial Strategic Plan to provide a ten to twenty year forecasting model for all City funds, with the major emphasis focused on the General Fund. This will help the City organization better plan for, and understand, its financial future. Use of this type of financial planning tool has become an important Best Management Practice (BMP) for California local governments over the past decade. Once prepared, this tool will help ensure that the City is better positioned to deal with COVID-19 type of emergencies going forward. List of Exhibits Exhibit A — Summary of Fiscal Year 2019-2020 Mid -Year Budget Adjustments 19 45 EXHIBIT A -1 SUMMARY Exhibit A: Fiscal Year 2019-2020 Mid -Year Budget Adjustments Fiscal Impact Item k Description Appropriations_ Revenues General Fund Reduction to personnel budget due to continued vacancies (33 1 FTEs identified) $ (2,044,737) 2 Reduction to Part -Time budget (474,600) 3 Reduction to Group Health Insurance budget (571,241) Reduction to Transfers -Out to Capital Improvements - Details 4 Listed (1,800,000) 5 Total reduction to GF operating & maintenance appropriations (1,296,079) Total General Fund Appropriation Reductions Use of General Fund Carryover (unassigned fund balance) 6 from FY 2018-19 7 Reduction to Genral Fund Revenue Budget Capital Iinpra.ement Fund (301} 4(a) Capital Improvements - TeenCenter 4(b) Capital Improvements-CityHallWindows 4(c) Capital Improvements -Acacia Park Construction 4(d) Capital Improvements -Fiber Vault Lids 4(e) Capital Improvements -Fiber Vault Lids Decrease in CIP Fund 301 Appropriations Decrease in CIP Fund Revenues - Reduction to Transfers- in 4(f) from General Fund to Capital Projects (6,186,657) Account _Comments 001-400-xxxx-41xx Various Departments/Divisions 001-400-xxxx-4102 Various Departments/Divisions 001-400-xxxx-4204 Various Departments/Divisions Projects are itemized on page 3 001-400-0000-9301 of Exhibit A 301-400-8201-8232 Accounts are itemized on page 3 001-400-xxxx-xxxx of Exhibit A Deferred to FY 2020-21 Accounts are itemized on page 2 of Exhibit A (3,415,558) 001-299-0000-2990 (9,602,215) Various (800,000) 301-400-8202-8222 Deferred to FY 2020-21 $500,000 approved budget - Deferred $450,000 to FY 2020- (450,000) 301-400-8201-8232 21 (300,000) 301-400-8152-8212 Deferred to FY 2020-21 $300,000 approved budget - (150,000) 301-400-8201-8209 Deferred $150,000 to FY 2020- 21 (100,000) 301-400-8201-8209 Deferred to FY 2020-21 $ (1,800,000) (1,800,000) 301-300-0000-9399 CIP (301) 20 46 EXHIBIT A -2 R 0 W S 2019-20 Base Budget FY 19-20 REVISED REVENUES 2019-20 Base Increase/Reduction Account No. 2019-20 Revised YEE COVID-19 Revenues / Transfers In 1 Transient Occupancy Tax 15,200,000 (6,140,340) 001-300-0000-3203 9,059,660 2 Business License Tax 12,510,000 (250,000) 001-300-0000-3301 12,260,000 3 Sales Tax 11,500,000 (824,000) 001-300-0000-3201 10,676,000 4 Property Tax 81816,500 (217,000) 001-300-0000-3101 8,599,500 5 UUT 61450,000 (457,938) 001-300-0000-321x 5,992,062 6 TRA 51600,000 302,063 001-300-0000-3218 5,902,063 7 Charges for Services 5,298,845 (1,500,000) 001-300-0000-38xx 3,798,845 8 Franchise Fees 3,200,000 0 001-300-0000-3202 3,200,000 9 Other Revenue 2,618,995 0 001-300-0000-3xxx 2,618,995 10 Interngovernmental Revenues 1,851,490 75,000 001-300-0000-3715 1,926,490 11 Other License & Permits 1,688,358 (150,000) 001-300-0000-34xx 1,538,358 12 Interest & Rental Income 824,000 (20,000) 001-300-0000-3601 804,000 13 Real Property Transfer Tax 600,000 (200,000) 001-300-0000-3204 400,000 14 Fines & Forfeitures 412,020 (220,000) 001-300-0000-35xx 192,020 15 Subtotal Revenues 76,570,208 (9,602,215) 66,967,993 Transfers & Reimbursements 16 1 Transfers In 140,000 0 001-300-0000-9104 1 140,000 17 TOTAL REVENUES 76,710,208 1 (9,602,215)1 1 67,107,993 47 EXHIBT A - 3 No. FY 2019-20 Bud et - CIP Reductions 1 ($800,000)Teen Center Fund 301 2 (450,000) City Hall Windows Replacement Fund 301 3 (300,000) Acacia Park Fund 301 4 (150,000) Fiber Vault Lids Fund 301 5 (100,000) Fitness Trail at Memory Row Fund 301 6 (1,8011,000) Total CIP Reduction (Deferred to FY 2020-21) Fund 301 FY 2019-20 Bud et - GENERAL FUND Ci&M Reductions Division No. Amount Description No. 7 (11,000) City Council - Travel & Training & Office Supplies 1101 8 (4,000) City Treasurer - Travel&Training 1201 9 (6,000) City Clerk - Travel & Training 1301 10 (76,800) Elections - Contractual Services 1302 11 (25,000) CM - Professional Services Contract 2101 12 (30,000) CM - Group Medical Insurance 2101 13 (27,000) Communications - Operating Budget not used through March 2102 14 (26,600) Economic Development - Professional Services - Group Medical Ins 2401 15 (105,000) Economic Development - Professional Services 2401 16 (30,000) Planning Admin - Group Medical Insurance 2402 17 (34,000) Planning Admin - Professional Services 2402 18 (30,000) Building Safety - Group Medical Insurance 2403 19 (7,000) Building Safety 2403 20 (10,000) BS admin - Group Insurance 2404 21 (6,000) BS admin - Various Operating accounts 2404 22 (5,600) finance admin -Travel & Training 2501 23 (30,000) Accounting - Group Insurance 2502 24 (14,000) Accounting - Various Operating Accounts 2502 25 (50,000) Business Services - Group Insurance 2504 26 (5,000) Business Services - Travel & Training 2504 27 (30,000) IS - Group Insurance 2505 28 (26,000) IS - Various Operating Accounts 2505 29 (40,000) HR - Group Insurance 2506 30 (174,000) HR - Employee Engagement, Travel & Training, Professional Services 2506 31 (62,000) Gov't Buildings - Emergency Repairs, Utility Exp, Operating Supplies 2601 32 (120,192) Nondepartmental - Vacation & Sick Payouts 2901 33 (60,000) PD Admin - Group Insurance 3101 34 (92,350) PD Admin - Various Operating acounts 3101 35 (29,200) Police Comm Center - Various Operating accounts 3107 36 (19,641) PD - Animal Control - Group Insurance 3108 37 (10,000) Fire Admn - Group Insurance 3201 38 (50,000) Fire Admn - Various Operating accounts 3201 39 (75,000) Fire Suppression - various operating accounts 3202 40 (25,000) Fire Paramedic - Group Insurance 3203 41 (25,000) Fire Paramedic - Various O&M 3203 42 (5,000) Fire Prevention - Group Insurance 3204 43 (20,000) Engineering - Travel & Training, Phone, Contractual Services 4101 44 (10,000) PW- streets services - Group Insurance 4201 45 (6,000) PW- streets services - Operating Supplies 4201 46 (25,000) PW -Street Maint - Group Insurance 4202 47 (50,000) PW -Traffic Safety - Contractual Services, Utilities 4205 48 (38,000) PW - Storm Drains - Various O&M 4302 49 (10,000) PW - Equipment Maint - Group Insurance 4601 50 (60,000) PW - Equipment Maint - Gasoline, Utilities, Emergency vehicle repair 4601 51 (10,000) PW Admin - Group Insurance 4801 52 (25,000) Parks Admin - Part -Time Staff 5101 53 (23,000) Parks Admin - Travel & Training, Phone, Repairs/Maint 5101 54 (18,000) Park Ops - Part -Time Staff 5102 55 (9,700) Park Ops - Travel & Training, Repairs 5102 56 (18,000) Rec Ops - Part -Time Staff 5201 57 (5,000) Rec Ops - Travel & Training 5201 58 (10,000) Aquatics - Group Insurance 5202 22 48 EXHIBT A - 3 59 (180,600) Aquatics - Part-time Staff 5202 60 (12,000) Aquatics - Travel & Training, Phone, Supplies 5202 61 (5,000) Cultural Arts (Clubhouse) - Group Insurance 5203 62 (17,500) Cultural Arts (Clubhouse) - Part -Time Staff 5203 63 (2,830) Cultural Arts (Clubhouse) - Professional Services 5203 64 (5,000) Sports - Part -Time Staff 5204 65 (18,000) Sports - Professional Services 5204 66 (25,300) Teen Center - Part -Time Staff 5205 67 (10,000) Teen Center - Group Insurance 5205 68 (6,400) Teen Center - Professional Services, Supplies 5205 69 (15,000) Joslyn/Seniors - Part -Time Staff 5206 70 (7,000) Joslyn/Seniors - Professional Services 5206 71 (7,000) Farmers Market - Part -Time Staff 5208 72 (1,100) Farmers Market - Professional Services 5208 73 (8,200) Special Events - Part-time Staff 5210 74 (14,300) Special Events - Professional Services 5210 75 (5,000) Wiseburn Aquatics - Group Insurance 5213 76 (130,000) Wiseburn Aquatics - Part -Time Staff 5213 77 (12,400) Wiseburn Aquatics - Various Operating accounts 5213 78 (20,000) Library admin - Group Insurance 6101 79 (8,900) Library admin - Various Operating accounts 6101 80 (10,000) Library Support Ser - Group Insurance 6102 81 (1,900) Library Support Ser - Various Operating accounts 6102 82 (15,000) Library Youth Ser - Group Insurance 6103 83 (6,593) Library Youth Ser - Various Operating Accounts 6103 84 (10,814) Library Info Sery - Various Operating accounts 6104 85 (20,000) Library Info Sery - Group Insurance 6104 86 (25,000) Community Cable - Part-time staff 6601 87 (25,000) Community Cable - Group Insurance 6601 88 (2,000) Community Cable - O&M 6601 Total O&M Reductions ($571,241- Group Ins., $474,600 - Part -Time Staff, 89 (2,341,920) $1,296,079 - O&M) 90 (2,044,737) Total Salary & Benefit Reductions (Full-time Employees) 91 (3,415,558) Use of carry-over funds from FY 2018-19 92 (1,800,000) Total CIP Reduction (Deferred to FY 2020-21) 93 (9,602,215) Total Budget Reductions & Use of FY 2018-19 Carryover for FY 2019-20 (scenario 1) Operating & Maintenance: Professional Services, Travel & Training, Operating Supplies, Repairs, & Utilities group insurance Part-time staff 23 49