2005 MAY 20 SPECIALAGENDA
EL SEGUNDO CITY COUNCIL
EMERGENCY OPERATIONS CENTER (EOC)
In Police Building
348 Main Street, El Segundo, CA 90245
The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items
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 portion of the
Meeting The time limit for comments is five (5) minutes per person
Before speaking to the City Council, please come to the podium and 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.
SPECIAL MEETING OF THE EL SEGUNDO CITY COUNCIL
FRIDAY, MAY 20, 2005
EMERGENCY OPERATIONS CENTER (EOC) in Police Building
348 Main Street, El Segundo, CA 90245
7:30 A.M. -10:30 A.M.
7:30 A.M. SESSION
CALL TO ORDER
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
SPECIAL ORDERS OF BUSINESS:
Preliminary Strategic Planning Session regarding the City's Operating budget for Fiscal
Year 2005/2006
A Introduction
(Mayor Kelly McDowell)
(City Manager Mary Strenn)
(City Manager Designee Jeff Stewart)
B Background Budget Information (Administrative Services Director Bret Plumlee)
1 Historical Graph of Mayor General Fund Revenue Sources FY 1986 -87 to FY
2005 -06
C Budget Assumptions for FY 2005 -2006 (staff presentation)
1 Revenue Estimate
2 Estimate of Expenditure Increases and Offsets
3 Potential General Fund Shortfall Range $500,000 - $1 5 Million
D Budget Balancing Policy Options (staff presentation) — See Exhibit A
E Council Direction — Preliminary Council discussion and direction regarding potential
budget shortfall or enhancements and means of addressing them, including program
reductions in all City departments, staff issues citywide, interfund transfers, capital
improvement project changes, alternate funding of special projects for the budget year
of 2005 -06, new and /or increased City department fees and new revenue options
F Next steps for budget preparation and adoption process (staff presentation)
II Presentation regarding bids received on Douglas Street Project and preliminary discussion
regarding funding of Construction Project and Construction Schedule
ADJOURNMENT
POSTED DATE
T11 rl 0
TIME
°2: J~�o r m .
NAME
2
Exhibit A
Budget Balancing Policy Options
A. Staffs Recommendation regarding a 2 -Year Budget Balancing Plan FY
2005 -2006 and FY 2006 -2007
1 FY 2005 -2006 Estimated Beginning General Fund budget shortfall of
$723,600 (Range likely to be between $500,000 and $1 5 million)
2 Fund Equipment Replacement shortfall of $1,438,100 over next 3 years at
$479,400 each year
3 Eliminate $500,000 transfer from General Fund to Infrastructure
Replacement Fund for next 2 years while Equipment Replacement Fund is
being replenished
4 Pay back $795,000 reimbursement of loan from General Fund to Water
fund over next 2 years at $397,500 in FY 2005 -2006 and $397,500 in FY
2006 -2007 based on payment received in FY 2004 -2005
5 Use balance in Economic Uncertainty Fund in FY 2005 -2006 and deposit
any excess FY 2006 -2007 General Fund savings back into the fund
6 Replenish Liability Insurance fund back up to 70% Confidence Level for an
unspecified term at the rate of $200,000 annually
7 If the Council approves the recommendations above, departments to
prepare contingency plan to cut $505,500 with contingency plans to cut up
to $700,000
B. Items to consider for possible funding:
1 Consider replenishment of Equipment Replacement funding of $1438
million
2 Consider funding up to $250,000 in Retiree health costs per GASB 45
requirement
3 Consider funding up to $250,000 in additional Capital Improvement
Projects
4 Consider funding up to $50,000 in Executive Technology Review
Committee projects
C. Budget balancing options:
1 Additional departmental cuts across the board
2 Decrease annual transfer from General Fund to Facilities Maintenance
Fund up to $175,000
3 Transfer designation in Facilities Maintenance Fund up to $215,000 to the
General Fund
4 Consider paying back $795,000 reimbursement of loan from General Fund
to the Water fund based on payment received in FY 2004 -2005
5 Consider any new and /or increases in department recommended fees and
new revenue
6 Consider implementation of Lighting and Landscaping District
7 Consider prefundmg Calpers retirement obligation in FY 2005 -2006
D. Unfinished Project Account Balances as of May 20, 2005:
1 Community Center $5,945,500
2 City Hall Improvements $819,900
3 Downtown Specific Plan $152,100
4 Aquatics Master Plan $675,750
5 Soccer fields $5,500,000
6. Fire Station # 2 $2,241,300
7. CIP Savings designated first toward Douglas $1,360,350
8, Developer Deposits in Fire, Police, Library $544,650
Douglas Street Funding
Prn,e�. Fie.nenra end �n,:rs Total Estimated Expended to
Current Deficit
Pn }nnhal Fundmn Smv�ua
1 Prop C 25% Grant
2 Water Enterprise Funds
3 Federal Transportation Bill
4 TEA -21 STPL
5
-
�usr ueur
1
Design
$1,845,000
2
Right of Way (County)
_ $_4_95,000
_
3
_ _ _ _
Right of Way (Acquisitions)
_ _
$1,568,530
4
Utility Relocations
$3,771,381 $4,228,189
5
Railroad Work
$1,652,720
6
MTA Grant Administration
$103,983
Cons Not avail for other protects
(TCSP Grant)
7
Protect Report (required by TCSP)
$50,000
8
Construction Engmeen_ng
$1,800,000
9
Construction Contract
$19,239,025
10
Construction Contingency
$1,923,903
Total Protect
$32.449.542 $4.228.189
Current Deficit
Pn }nnhal Fundmn Smv�ua
1 Prop C 25% Grant
2 Water Enterprise Funds
3 Federal Transportation Bill
4 TEA -21 STPL
5
wrrenc runum
5
1
HUD Grant _
$231,250
2
TCSP Grant
$937,433
3
FTA Grant
$2,079,661
4
MTA Grant(STIP)
$9,233,000
5
City
_
$4,700,000
6
Developer Fee
$250,000
Cons Not avail for other protects
T..6.1 t.... A.. I,.....1."^
t 49 A14 %AA
Current Deficit
Pn }nnhal Fundmn Smv�ua
1 Prop C 25% Grant
2 Water Enterprise Funds
3 Federal Transportation Bill
4 TEA -21 STPL
5
CIP Savings (General Fund)
5
Developer Contributions
6
Traffic Mitigation funds
7
Prop C Local Return
8
Cons Other work deferred
MTA Line of Credit
9
Deferral of Funded Capital
Cons Match req'd, Reimbursement
Improvement Protects
$500,000
$270,000
$4,000,000
$500,000
$1,360,350
$2,000,000
$1,600,000
$600,000
$3,000,000
See Attached List
N \Douglas \Funding Board lump As 1 of 2
($15,018,198)
Resulting
r ms uencn
($14,518,198)
Pros Grant, no match
Cons None
($14,248,198)
Pros Cash available
Cons Other work deferred
($10,248,198)
Pros Grant
Cons Match req'd, Reimbursement
_
($9,748,198)
Pros Available
Cons Match req'd, Reimbursement
_
($8,387,848)
Pros Available
Cons Not avail for other protects
($6,387,848)
Pros Benefactors pay
Cons Not secured
($4,787,848)
Pros Cash available
Cons Other work deferred
($4,187,848)
Pros Available, no match
_ Cons Eligibility, Other work deferred
($1,187,848)
Pros Helps complete protect
Cons 25 years without Prop C
Pros Cash Available
Cons Projects Deferred Indefinite)
Unencumbered CIP Account Balances May 20,2005
Community Center
$5,945,500
General
Fund
City Hall Improvements
$819,900
General
Fund
Downtown Specific Plan
$162,100
General
Fund
Aquatics Master Plan
$675,750
General
Fund
Soccer Fields
$5,500,000
General
Fund
Fire Station No. 2
$2,241,300
General
Fund
Five Year Street
$215,000
Gas Tax
Reconstruction
Total $15,549,550
N TouglasTunding Board lump xls 2 of 2