2016 Apr 19 - CC PACKETAGENDA
EL SEGUNCO CITE( COUNCIL
COUNCIL CHAMBERS 350 Main Street
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 come to the podium and state: Your name and residence
and the organization you represent, if desired. Please respect the time limits.
Members of the Public may place items on the Agenda by submitting a Written Request to the City Clerk
or City Manager's Office at least six days prior to the City Council Meeting (by 2:00 p.m. the prior
Tuesday). The request must include a brief general description of the business to be transacted or
discussed at the meeting. Playing of video tapes or use of visual aids may be permitted during meetings if
they are submitted to the City Clerk two (2) working days prior to the meeting and they do not exceed five
(5) minutes in length.
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, APRIL 19, 2016 — 5:00 PM
5:00 P.M. SESSION
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 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.
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 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 WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code
§54956.9(d)(1): -2- matter
1. City of El Segundo vs. City of Los Angeles, et.al. LASC Case No. BS094279
2. Li v. City of El Segundo, et all, LAXC Case No. BC605728
CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Government Code §54956.9(d)(2): -1-
matter.
Initiation of litigation pursuant to Government Code §54956.9 (d)(4): -1- matters.
DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957): -0- matter
APPOINTMENT OF PUBLIC EMPLOYEE (Gov't. Code § 54957): -0- matter
PUBLIC EMPLOYMENT (Gov't Code § 54957) -0- matter
2
E
CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6): -6-
matters
1. Employee Organizations: Police Management Association; Police Officers
Association; Police Support Services Employees Association; Supervisory and
Professional Employees Association; City Employees Association; Executive
Management Group (Unrepresented Group).
Agency Designated Representative: Steve Filarsky and City Manager
CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8): -0-
matters
3
3
AGENDA
EL SEGUNDO CITY COUNCIL
COUNCIL CHAMBERS - 350 Main Street
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 come to the podium and state: Your name and residence
and the organization you represent, if desired. Please respect the time limits.
Members of the Public may place items on the Agenda by submitting a Written Request to the City Clerk
or City Manager's Office at least six days prior to the City Council Meeting (by 2:00 p.m. the prior
Tuesday). The request must include a brief general description of the business to be transacted or
discussed at the meeting. Playing of video tapes or use of visual aids may be permitted during meetings if
they are submitted to the City Clerk two (2) working days prior to the meeting and they do not exceed five
(5) minutes in length.
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, APRIL 19, 2016 - 7:00 P.M.
7:00 P.M. SESSION
CALL TO ORDER
INVOCATION — Pastor Brandon Cash, Oceanside Christian Fellowship
PLEDGE OF ALLEGIANCE — Council Member Fellhauer
M
PRESENTATIONS
a) Presentation — Recognition of Public Works employees Michael Ward, Marco
Becerra and Jesse Pedroza for their quick action extinguishing a house fire.
b) Presentation — Recognition of Fire Marshal James Carver by the California Fire
Chiefs Association Fire Prevention Officers section, awarding the William E. Fox
lifetime achievement award.
c) Proclamation — Earth Day in El Segundo, Saturday, April 23, 2016.
d) Proclamation — El Segundo PTA's Annual Run 4 Education Day, Saturday, April
23, 2016.
e) Presentation — Stephanie Katsouleas — Plunge Update
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 tine 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 COUNCIL COMMENTS — (Related to Public Communications)
A. PROCEDURAL MOTIONS
Consideration of a motion
Agenda by title only.
Recommendation — Approval.
to read all ordinances and resolutions on the
B. SPECIAL ORDERS OF BUSINESS (PUBLIC HEARING)
5
6i
C. UNFINISHED BUSINESS
D. REPORTS OF COMMITTEES, COMMISSIONS AND BOARDS
E. CONSENT AGENDA
All items listed are to be adopted by one motion without discussion and passed unanimously. If a call for
discussion of an item is made, the item(s) will be considered individually under the next heading of
business.
1. Warrant Numbers 3010469 through 3010744 on Register No. 13 in the total
amount of $1,142,414.70 and Wire Transfers from 3/21/16 through 4/10/16 in
the total amount of $1,372,119.40.
Recommendation — Approve Warrant Demand Register and authorize staff to
release. Ratify Payroll and Employee Benefit checks; checks released early due
to contracts or agreement; emergency disbursements and /or adjustments; and
wire transfers.
2. Regular City Council Meeting Minutes of April 5, 2016.
Recommendation — Approval.
3. Consideration and possible action regarding Adoption of 1) a Resolution
amending Chapter 1A2 of the Administrative Code providing benefit
changes to employees of the Executive and Management - Confidential
series; 2) Resolutions updating the employer's contribution under the
Public Employees' Medical and Hospital Care Act for the El Segundo
Executive Management Group, Management/Confidential Group,
Supervisory and Professional Employees' Association (SPEA), and Police
Managers' Association (PMA) and 3) a Resolution for Employer Paid
Member Contributions (EPMC) for Management - Confidential.
Fiscal Impact: FY 15 -16: $70,600; FY 16 -17: $372,400 _
Recommendation 1) Adopt the resolutions; 2) Alternatively, discuss and take
other action related to this item.
4. Consideration and possible action regarding authorization for the Police
Department to hire a full -time benefited Police Service Officer by
consolidating funds from two part -time and one full -time non - benefited
positions.
(Fiscal Impact: Not to exceed $106,000.00)
Recommendation — 1) Authorize the Police Department to hire one full -time
benefited Police Service Officer to increase authorized staffing by one; 2)
Authorize the Police Department to consolidate salary and benefits funding from
6
C:
(1) Office Specialist 1 and (2) part-time Police Service Officers to fund the
additional PSO; 3) Alternatively, discuss and take other possible action related to
this item.
5. Consideration and action to adopt a Resolution approving Plans and
Specifications for City -wide Catch Basin Screen Installation, Project No.
PW16 -12.
Jscal Impact: $68,000.00)
Recommendation — 1) Adopt the Resolution approving Plans and Specifications
for City -wide Catch Basin Screen Installation Project (Project No. PW16 -12); 2)
Alternatively, discuss and take other action related to this item.
6. Consideration and possible action to receive and file this report regarding
emergency work to repair dwelling units at the Park Vista Senior Housing
Facility due to water intrusion without the need for bidding in accordance
with Public Contracts Code §§ 20168 and 22050 and El Segundo Municipal
Code ( "ESMC ") §§ 1 -7 -12 and 1 -7A-4.
Fiscal Impact: $50,000.00
Recommendation — 1) Receive and file this report regarding emergency work to
repair dwelling units at the Park Vista Senior Housing Facility due to water
intrusion without the need for bidding in accordance with Public Contracts Code
§§ 20168 and 22050 and El Segundo Municipal Code ( "ESMC') §§ 1 -7 -12 and 1-
7A-4; 2) Alternatively, discuss and take other action related to this item.
7. Consideration and action to authorize the City Manager to execute an
amendment and extend the professional services agreement with Prosum
Tech Services in an amount not -to- exceed $100,000.00 for helpdesk and
technical support for the Information Systems division.
Fiscal Impact: $100,000.00
Recommendation — 1) Authorize the City Manager to execute an amendment to
extend the professional services agreement with Prosum Technology Services in
the amount not -to- exceed $100,000 to provide helpdesk and technical support
for the Information Systems division; 2) Alternatively, discuss and take other
action related to this item.
7
7
F. NEW BUSINESS
8. Consideration and possible action regarding FY 2015 -2016 Midyear
Financial Review, consider funding for the Richmond Street Project and the
Sidewalk, Curb and Gutter Restoration Program.
(Fiscal Impact: To Be Determined)
Recommendation — 1) Receive and file FY 2015 -16 Midyear Financial Review; 2)
Consider funding for the Richmond Street Rehabilitation Project; 3) Consider
funding for the Sidewalk, Curb and Gutter Restoration Program; 4) Alternatively,
discuss and take other action related to this item.
G. REPORTS — CITY MANAGER
H. REPORTS — CITY ATTORNEY
I. REPORTS — CITY CLERK
J. REPORTS — CITY TREASURER
K. REPORTS — CITY COUNCIL MEMBERS
Council Member Fellhauer —
Council Member Atkinson —
Council Member Dugan —
Mayor Pro Tern Jacobson —
Mayor Fuentes —
N.
PP
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per
person, 30 minute limit total) Individuals who have receive 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.
MEMORIALS —
CLOSED SESSION
The City Council may move into a closed session pursuant to applicable law, including the Brown Act
(Government Code Section §54960, et sect.) 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)
ADJOURNMENT
POSTED:
DATE: "T ' r ,/ .
TIME:
NAME:
Presentation
Recognition of Public Works employees Michael Ward, Marco Becerra
and Jesse Pedroza.
Quick action extinguishing a house fire.
WE
Presentation
Recognition of Fire Marshal James Carver
California Fire Chiefs Association Fire Prevention Officers section,
awarding the William E. Fox lifetime achievement award.
11
tortamatt"011 (l,Citp of (9t Oegunbo, Catifornia
WHEREAS, the global community now faces extraordinary challenges, such as global
health issues, food and water shortages, and economic struggles; and
WHEREAS, all people, regardless of race, gender, income, or geography, have a moral
right to a healthy, sustainable environment with economic growth; and
WHEREAS, it is understood that the citizens of the global community must step forward
and take action to create a green economy to combat the aforementioned
global challenges; and
WHEREAS, a green economy can be achieved on the individual level through
educational efforts, public policy, and consumer activism campaigns; and
WHEREAS, it is necessary to broaden and diversify this global movement to achieve
maximum success; and
NOW, THEREFORE, the Mayor and members of the City Council of the City of El
Segundo, California, hereby proclaim April 23, 2016 as "Earth Day" in El Segundo and
encourage all citizens to support environmental initiatives and promote others to
undertake similar actions.
L
T y�r
WayorSuzanne Fuentes
Wayor fto Tem Cadjacobson Counci(Wem6er Dave Atkinson
Councif911em6er Jllarie Feffhauer Counci(Wem6er 91lichaef Dugan
12
tortamatt,on QCitp of V begunbo, California
WHEREAS, The El Segundo Council PTA's Run 4 Education was established 25 years ago to give a healthyand
fun way for the community to come together to support education; and
WHEREAS, In the course of its history, the Run 4 Education started out as the Center Street School Run. In
the first year of the run, approximately 600 participants had the option of running a 5k, 10k, ora
Kids Fun Run and all of the money raised went to support Center Street School. The event netted
nearly $8,000, which was used to refurbish classroom furniture and was made possible by Center
Street School PTA volunteers, the El Segundo Fire Department, Explorer Scouts, ESUSD personnel
and city employees; and
WHEREAS, Today, the Run 4 Education is hosted by the El Segundo Council PTA, benefitting all four schools
in our district. The Run 4 Education has developed into the Council PTA's largest fundraiser,
raising over $50,000, welcoming over 1,000 guests from the community and surrounding area to
the streets of El Segundo to run, jog or walk in the 5k, 10k, or Kids Fun Run through the town of
El Segundo to support our schools; and
WHEREAS, The money raised from this event is used to support much more than furniture. Today, this
money will be used to support technology requests, provide playground equipment, enhance the
schools' appearance, provide for unique student experiences, and support our teachers through
professional development; and
WHEREAS, Community support is still of the utmost importance with this event, relying on the El Segundo
Police Department, City of El Segundo, parent volunteers from the four schools, and high school
student volunteers. The funds raised from this event will be used to support El Segundo High
School, El Segundo Middle School, Center Street School and Richmond Street School; and
WHEREAS, Community partners now play an important role in supporting this event, we are fortunate to
have Big 5 Sporting Goods, SuperTots Sports Academy, 1-800-GOT-JUNK?, Haz Away Today.com,
You Move Me, Skechers, Chevron, El Segundo Athletic Club, Davis & Derosa Physical Therapy, Inc.
as some of our sponsors, as well as a Fun & Fitness Expo following the race for participants to
enjoy at Library Park, while awaiting race results; and
WHEREAS, The goal of the El Segundo Council PTA is to positively impact the lives of children and families,
serving its members and its community by providing opportunities and experiences to make El
Segundo School District the best it can be.
NOW, THEREFORE, the Mayor and Members of the City Council of the City of El Segundo, California, herebyproclaim
April 23rd as El Segundo Council PTA's Run 4 Education Day in El Segundo and encourage all citizens to take part
in the 25th anniversary celebration.
r
911ayorSuzanne Fuentes
Wayor (Pro Tem Cad Yacobson Cound[Wember DaveAtkinson
CouncifWem6erMarie FeCChauer CouncifWemberWichaefftgj�
Presentation
Stephanie Katsouleas — Plunge Update
14
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15
CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
3/21/16 THROUGH 4/10/16
Date
Payee
Description
3/25/2016
Manufacturers & Traders
22,444.71
457 payment Vantagepoint
3/25/2016
Manufacturers & Traders
467.31
IRA payment Vantagepoint
3/25/2016
South Bay Credit Union
10,200.38
Payroll credit union deduction pmt
3/25/2016
State of CA EFT
982.68
EFT Child support payment
3/25/2016
Nationwide NRS EFT
34,837.25
EFT 457 payment
3/25/2016
Health Comp
2,932.50
Weekly claims
3/28/2016
IRS
236,369.34
Federal 941 Deposit
3/28/2016
Employment Development
3,408.98
State SDI payment
3/28/2016
Employment Development
48,886.12
State PIT Withholding
3/30/2016
Cal Pers
96,692.77
EFT Retirement Misc
3/30/2016
Cal Pers
287,855.88
EFT Retirement Safety
3/30/2016
Cal Pers
1,576.60
EFT Retirement Safety - Police
3/30/2016
Cal Pers
23,439.46
EFT Retirement Misc
4/1/2016
Health Comp
384.62
Weekly claims
4/8/2016
South Bay Credit Union
10,200.38
Payroll credit union deduction pmt
4/8/2016
State of CA EFT
1,006.91
EFT Child support payment
4/8/2016
Cal Pers
500,424.94
EFT Health Insurance Payment
4/8/2016
Health Comp
2,479.07
Weekly claims
3/31/2016
Lane Donovan Golf Ptr
21,754.34
Payroll Transfer
3/14/16- 3/20/16
Workers Comp Activity
22,510.52
SCRMA checks issued
3/21/16- 3/27/16
Workers Comp Activity
25,253.71
SCRMA checks issued
3/28/16- 4/3/16
Workers Comp Activity
17,028.18
SCRMA checks issued
3/14/16- 3/20/16
Liability Trust - Claims
0.00
Claim checks issued
3/21/16- 3/27/16
Liability Trust - Claims
0.00
Claim checks issued
3/28/16- 4/3/16
Liability Trust - Claims
982.75
Claim checks issued
1,372,119.40
DATE OF RATIFICATION: 4/7/16
TOTAL PAYMENTS BY WIRE:
1,372,119.40
Certified as to the accuracy of the wire transfers by:
Date
- a-
Date
Date
Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo.
P: \City Treasurer \Wire Transfers \Wire Transfers 10 -01 -15 to 9 -30 -16 4/762016 1/1
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, APRIL 5, 2016 — 5:00 PM
5:00 P.M. SESSION
CALL TO ORDER — Mayor Fuentes at 5:00 PM
ROLL CALL
Mayor Fuentes -
Present
Mayor Pro Tem Jacobson -
Present
Council Member Atkinson -
Present
Council Member Fellhauer -
Present
Council Member Dugan -
Present
PUBLIC COMMUNICATION — (Related to City Business Only — 5 minute limit per
person, 30 minute limit total) None
Mayor Fuentes announced that Council would be meeting in closed session pursuant to
the items listed on the Agenda.
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 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 WITH LEGAL COUNSEL — EXISTING LITIGATION (Gov't Code
§54956.9(d)(1): - 3- matter
1. City of El Segundo vs. City of Los Angeles, et.al. LASC Case No. BS094279
2. Li v. City of El Segundo, et all, LAXC Case No. BC605728
3. Simonek v. City of El Segundo, USDC CV15 -9190
CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Government Code §54956.9(d)(2): -1-
matter.
Initiation of litigation pursuant to Government Code §54956.9 (d)(4): -1- matters.
DISCUSSION OF PERSONNEL MATTERS (Gov't Code §54957): -0- matter
M
MINUTES OF THE REGULAR CITY COUNCIL MEETING
APRIL 5, 2016
PAGE No. 1
17
APPOINTMENT OF PUBLIC EMPLOYEE (Gov't. Code § 54957): -0- matter
PUBLIC EMPLOYMENT (Gov't Code § 54957) -0- matter
CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Gov't Code §54957.6):-6-
matters
Employee Organizations: Police Management Association; Police Officers
Association; Police Support Services Employees Association; Supervisory and
Professional Employees Association; City Employees Association; Executive
Management Group (Unrepresented Group).
Agency Designated Representative: Steve Filarsky and City Manager
CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8): -0-
matters
Adjourned at 6:50 PM
MINUTES OF THE REGULAR CITY COUNCIL MEETING
APRIL 5, 2016
PAGE No. 2
MR
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, APRIL 5, 2016 - 7:00 P.M.
7:00 P.M. SESSION
CALL TO ORDER — Mayor Fuentes at 7:00 PM
INVOCATION — Father Alexei Smith, St. Andrew Russian Greek Catholic Church
PLEDGE OF ALLEGIANCE — Council Member Dugan
PRESENTATIONS
a) Proclamation read by Mayor Fuentes, proclaiming April as National Donate Life
Month.
b) Proclamation read by Council Member Dugan, proclaiming April as Sexual
Assault Awareness Month and April 27, 2016 as Denim Day.
c) Presentation by Sindee Pickens, El Segundo Public Library, on National Library
Week is April 11 -17, 2016.
ROLL CALL
Mayor Fuentes -
Present
Mayor Pro Tern Jacobson -
Present
Council Member Atkinson -
Present
Council Member Fellhauer -
Present
Council Member Dugan -
Present
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per
person, 30 minute limit total)
Mike Robbins, resident, commented on the minimum wage raise, the April 12, 2016
election, the El Segundo Lakes Golf Course and Top Golf CenterCal deal and the
Wiseburn School district Pool deal.
Fernando Aguilar, Tree Muskeeters, Youth Manager, invited Council and residents to
the Earth Day Celebration on Saturday, April 23, 2016 from 9:30 am — 11:30 am.
Loretta Frye, resident, spoke highly of the Police Department and Fire Department,
wanted to make sure they are thanked for the effort they provide to the community,
commented she felt there was not enough time to review the revised regular and special
meeting agendas and feels both items that were added, should be decided on with the
new seated Council.
CITY COUNCIL COMMENTS — (Related to Public Communications)
Council commented on items from Public Communications.
MINUTES OF THE REGULAR CITY COUNCIL MEETING
APRIL 5, 2016
PAGE No. 3
WE
A. PROCEDURAL MOTIONS
Consideration of a motion to read all ordinances and resolutions on the Agenda by title
only.
MOTION by Mayor Pro Tern Jacobson, SECONDED by Council Member Fellhauer to
read all ordinances and resolutions on the Agenda by title only. MOTION PASSED BY
UNANIMOUS VOICE VOTE. 5/0
B. SPECIAL ORDERS OF BUSINESS (PUBLIC HEARING)
C. UNFINISHED BUSINESS
Consideration and possible action regarding a presentation about potential
amendments to the development standards for the Single - Family Residential (R-
1) Zone. Applicant: City of El Segundo.
(Fiscal Impact: None).
Council Member Atkinson, excused himself due to a conflict and left the dais.
Greg Carpenter, City Manager, introduced the item.
Sam Lee, Planning and Building Safety, Director, gave a presentation.
Council Discussion
MOTION by Council Member Fellhauer Jacobson, SECONDED by Council Member
Dugan directed staff to prepare a Zoning Code amendment (and associated
environmental documents) that will "clean -up" the R -1 Zone development standards and
improve /eliminate modulation requirements for the Planning Commission's and City
Council's consideration and directed staff to separately study other elements of the R -1
Zone and present possible other changes to the R -1 Zone. MOTION PASSED BY
UNANIMOUS VOICE VOTE 4/0; Council Member Atkinson excused himself from the
discussion and vote due to a conflict.
Council Member Atkinson returned to the dais.
2. Consideration and possible action to amend certain deadlines in the Due
Diligence and Lease Agreement ( "Agreement ") entered into between the City of
El Segundo and the CenterCal LLC regarding the Lakes golf course and driving
range. The Agreement provides for making certain changes and improvements
to the golf course and turning the driving range into a Top Golf facility.
(Fiscal Impact: $0)
Mark Hensley, City Attorney, introduced and gave Council an update on the item.
Council Discussion
MINUTES OF THE REGULAR CITY COUNCIL MEETING
APRIL 5, 2016
PAGE No. 4
WK
MOTION by Council Member Fellhauer, SECONDED by Council Member Atkinson to
Authorize the Mayor to execute an amendment no. 4924 -1A to the Agreement in a form
approved by the City Attorney for purposes of extending certain deadlines in the
Agreement. MOTION PASSED BY UNANIMOUS VOICE VOTE 5/0
D. REPORTS OF COMMITTEES, COMMISSIONS AND BOARDS
E. CONSENT AGENDA
All items listed are to be adopted by one motion without discussion and passed
unanimously. If a call for discussion of an item is made, the item(s) will be considered
individually under the next heading of business.
3. Approve Warrant Numbers 3010223 through 3010468 on Register No. 12 in the
total amount of $1,045,674.05 and Wire Transfers from 3/6/2016 through
3/20/2016 in the total amount of $3,148,000.24. Authorized staff to release.
Ratified Payroll and employee Benefit checks; checks released early due to
contracts or agreement; emergency disbursements and /or adjustments; and
wire transfers.
4. Approve Regular City Council Meeting Minutes of March 15, 2016.
5. Approve thirty (30) day provisional appointment extension for the position of
Interim Deputy City Clerk II
6. Waive the formal bidding process and authorize the Fire Department to piggy-
back off of the National Joint Powers Alliance cooperative procurement contract
with National Auto Fleet Group, Contract No. 102811 -NAF, enter into City
agreement no. 5007 for the purchase of a new 2016 four door Ford Explorer XLT
(K7D) with front wheel drive (FWD) for the Fire Chief, as the current staff vehicle
is overdue for replacement, with replacement funds.
(Fiscal Impact: $32,103.00)
7. Authorize the City Manager to execute a standard Public Works Contract No.
5008, in a form as approved by the City Attorney, with American Asphalt South,
Inc., in the amount of $307,485.70 for the slurry sealing of the streets in the area
bounded by the north City Boundary, Sepulveda Boulevard, Mariposa Avenue,
and Sheldon Street. Project No.: PW 16 -09
(Fiscal Impact: $307,485.70)
8. Authorize the City Manager to enter into a Memorandum of Agreement No. 5009,
approved in form by the City Attorney, between the Cities of Los Angeles, Santa
Monica and El Segundo, the Los Angeles County Flood Control District, and the
County of Los Angeles for $104,391.00 for administration and cost sharing for
Implementation of a Coordinated Integrated Monitoring Program (CIMP) for
Jurisdictional Groups 2 & 3 of the Santa Monica Bay Watershed, authorize the
City Manager to enter into a Memorandum of Agreement No. 5010, approved in
form by the City Attorney, between The South Bay Cities Council of
Governments (SBCCOG), the Cities of Los Angeles, El Segundo, Hawthorne,
MINUTES OF THE REGULAR CITY COUNCIL MEETING
APRIL 5, 2016
PAGE No. 5
21
Carson, Lawndale, Lomita and Inglewood, the Los Angeles County Flood Control
District, and the County of Los Angeles for $70,065.00 for administration and
cost sharing for development of a Coordinated Integrated Monitoring Program
(CIMP) for the Dominguez Channel Watershed.
(Fiscal Impact: $120,543.00 in FY 15/16 and $53,913.00 in FY 16/17
9. Receive and file the report regarding emergency work to repair dwelling units at
the Park Vista Senior Housing Facility due to water intrusion without the need
for bidding in accordance with Public Contracts Code §§ 20168 and 22050
and El Segundo Municipal Code ( "ESMC ")§ 1 -7 -12 and 1 -7A -4.
(Fiscal Impact: $50,000.00)
10. PULLED BY MAYOR FUENTES
11. Authorize the City Manager to execute a Fifth Amendment No. 4133E, to a
Professional Services Agreement with Michael Baker International, Inc. for
environmental review services, in a form approved by the City Attorney, in an
amount not to exceed $663,173.47 to provide environmental review services
required by the California Environmental Quality Act (CEQA) for the Raytheon El
Segundo South Campus Specific Plan Project.
(Fiscal Impact: Up to $663,173.47 Developer Reimbursed Trust Fund)
MOTION by Council Member Fellhauer, SECONDED by Council Member Atkinson to
approve Consent Agenda items 3, 4, 5, 6, 7, 8, 9, and 11. MOTION PASSED BY
UNANIMOUS VOICE VOTE. 5/0
PULLED ITEM:
10. Consideration and possible action to 1) waive the bidding process for Joslyn
Center Refurbishment/Modernization Project and 2) award a standard Public
Works Contract to Excelsior Elevator to complete the required work. PW 16 -19
(Fiscal Impact: $95,000.00)
Stephanie Katsouleas, Public Works Director, answered Council questions.
Representative from Excelsior Elevator answered Council questions.
MOTION by Mayor Fuentes, SECONDED by Council Member Atkinson, to waive the
bidding process for refurbishment based on the "no competitive advantage" exemption
to Public Contract No. 5011 Code bid requirements for the Joslyn Center
Refurbishment/Modernization Project; 2) Award a standard Public Works contract in the
amount of $85,582.00 to Excelsior Elevator to complete the required work; 3) Authorize
an additional contingency of $9,418.00
MINUTES OF THE REGULAR CITY COUNCIL MEETING
APRIL 5, 2016
PAGE No. 6
22
F.NEW BUSINESS
12. Consideration and possible action to approve and adopt the updated Investment
Policy, which has been revised to include an updated list of Authorized
Investments, with City of El Segundo- imposed Restrictions, and add Benchmarks
to compare Portfolio performance.
(Fiscal Impact: None)
Crista Binder, City Treasurer, introduced and presented the item.
MOTION by Council Member Fellhauer, SECONDED by Council Member Atkinson to
adopt Resolution No. XXX updating Investment Policy which has been revised to
include and updated list of Authorized Investments, with City imposed restrictions and
add bench marks to compare portfolio performance. MOTION PASSED BY
UNANIMOUS VOICE VOTE. 5/0
REPORTS — CITY MANAGER — Thanked staff for the refurbishment of the Council
Chamber.
REPORTS — CITY ATTORNEY - None
REPORTS — CITY CLERK - None
REPORTS — CITY TREASURER — Presentation under New Business
REPORTS — CITY COUNCIL MEMBERS
Council Member Fellhauer — Thanked staff for the updated Council Chamber.
Council Member Atkinson — Thanked staff for the updated Council Chamber
Council Member Dugan — None
Mayor Pro Tern Jacobson — None
Mayor Fuentes — Honored to greet the Taiwan President and attended a banquet in his
honor, Mayor Fuentes was invited by State Senator, Ben Allen, invited by Assembly
Member David Hadley, to be on the Aerospace Advisory Committee, thanked Char
Franklin, Embassy Suites for welcoming the EDAC to her guest reception, attended the
City of Hawthorne's State of the City Address, attended the Good Friday Breakfast and
thanked the Rotary, Chamber of Commerce and a special thank you to Logan Hansen,
the speaker, attended the ROAD meeting, with Chief Donovan and Greg Carpenter,
attended a tour of Northrop Grumman and attended the L.A. County Mayor's Regional
Summit to Combat Homelessness and mentioned El Segundo's State of the City
address is scheduled for Wednesday, April 6, 2016 at the Los Angeles Air Force Base.
13. Consideration and possible action to direct staff to return with a report on the
impact of the changes to the city's ambulance transport fee policy.
(Fiscal Impact: None)
MINUTES OF THE REGULAR CITY COUNCIL MEETING
APRIL 5, 2016
PAGE No. 7
23
Greg Carpenter, City Manager, introduced the item.
Council Discussion
Council Consensus to direct staff to initiate the study and provide a report on the impact
of the changes to the City's ambulance transport fee policy.
1. (Special Meeting /Opened in conjunction with Regular Meeting)
Consideration and possible action to authorize the Mayor to enter into a
Memorandum of Understanding (MOU) No. 5012 that designates the Mayor as a
member of the Leadership Committee of the Los Angeles Air Force Base
Community Partnership (LACP).
(Fiscal Impact: None)
Mayor Fuentes, introduced and presented the item.
Council Discussion
MOTION by Mayor Pro Tem, SECONDED by Council Member Fellhauer to authorize
the Mayor to enter into the Memorandum of Understanding that designates the Mayor
as a member of the Leadership Committee of the Los Angeles Air Force Base
Community Partnership (LACP). MOTION PASSED BY UNANIMOUS VOICE VOTE.
5/0
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per
person, 30 minute limit total.
Mike Robbins, resident, commented on benefits for Council Members and commented
on Top Golf.
Loretta Frye, resident, commented on the Josyln Center Elevator and thanked Council
Member Atkinson for his swift movement on the elevator situation, commented on the
Fire transport fees and Mike Dugan working on the issue and commented on the
Wiseburn School /Da Vinci pool.
Council commented on items from Public Communications.
MEMORIALS — None
ADJOURNMENT at 9:03 PM
Mona Shilling, Acting Deputy City Clerk II
MINUTES OF THE REGULAR CITY COUNCIL MEETING
APRIL 5, 2016
PAGE No. 8
24
EL SEGUNDO CITY COUNCIL MEETING DATE: April 19, 2016
AGENDA STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action regarding Adoption of 1) a Resolution amending Chapter 1 A2
of the Administrative Code providing benefit changes to employees of the Executive and
Management - Confidential series; 2) Resolutions updating the employer's contribution under the
Public Employees' Medical and Hospital Care Act for the El Segundo Executive Management
Group, Management/Confidential Group, Supervisory and Professional Employees' Association
(SPEA), and Police Managers' Association (PMA) and 3) a Resolution for Employer Paid
Member Contributions (EPMC) for Management- Confidential. (Fiscal Impact: FY 15 -16:
$70,600; FY 16 -17: $372,400)
RECOMMENDED COUNCIL ACTION:
1) Adopt the attached resolutions
2) Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
1) Resolution Amending Chapter 1 A2 of the Administrative Code
2) Resolution for Employer Paid Member Contribution for Management -
Confidential
3) Resolution Updating the Employer's contribution under the Public Employees'
Medical and Hospital Care Act.
FISCAL IMPACT:
Amount Budgeted:
Additional Appropriation:
Account Number(s): N/A
ORIGINATED BY: Greg Carpenter, City Manager OA
REVIEWED BY:
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
At its meeting on December 15, 2015, Council approved salary and benefit changes to several
employee groups resulting from a settlement agreement between the City and the California
Public Employees' Retirement System ( "Ca1PERS ") in order to resolve the Additional Pay issue.
The changes approved by Council, and memorialized in Side Letters with the bargaining units,
included establishing the medical contribution at the PEMHCA minimum, which is $125 /month
for calendar year 2016.
The City files with Ca1PERS Resolutions reflecting changes in the City's contribution for
employees and annuitants under the Public Employees' Medical and Hospital Care Act
( PEMHCA). Attached, for Council approval, are Resolutions establishing the PEMHCA
25
minimum contribution for bargaining units SPEA and PMA, in accordance with the agreed -upon
Side Letters.
Changes to Executive and Management- Confidential Benefits
In 2014, Council contracted with Cooperative Personnel Services (CPS) to conduct a total
compensation survey of employee groups including Executive and Management- Confidential
classes. The final report issued on January 14, 2015, showed that Executive and Management -
Confidential miscellaneous classifications were below market while safety classifications were
above market. As a result, Council has made changes to the salary and benefit structure of these
classifications in an attempt to bring them closer to the market. Changes have included the
following:
• Elimination of 5% Deferred Compensation Match for Executives and 4% Deferred
Compensation Match for Management - Confidential.
• Base salary increases of 8% for Executive and Management - Confidential miscellaneous
classes and 4% for Battalion Chiefs. No increases were given to the Police or Fire Chief.
• PERS Retirement Share — Battalion Chiefs increased their PERS Member Share by 5% in
order to pay their full 9% Member Share. Management - Confidential employees
increased their share from 3% to 5% (City pays remaining 2% as EPMC).
• Fire Chief base salary range was adjusted downward to create a more appropriate
differential between this salary range and the City Manager's salary.
• Additional Pay Resolution approved by Council on December 15, 2015, resulted in a
monthly medical contribution for the unrepresented employees of $125, which represents
the PEMHCA minimum for calendar year 2016.
Staff asked CPS to update the compensation data for the Executive classifications earlier this
year. The preliminary report shows that while some ground has been made, the City's total
compensation for Executive miscellaneous classes is 14.45% below the labor market median and
14.96% below the labor market mean.' The data shows Executive safety classes are 3.84%
above the labor market median and 3.92% above the labor market mean. While we did not
obtain total compensation data for the Management - Confidential classes, previous data indicated
on average, the miscellaneous benchmark classes were 9.8% below the labor market median and
13.1 % below the labor market mean.
In order to continue the City's goal of moving these classifications closer to the market, staff
recommends the following changes be made to the medical benefit:
Executives — increase the current PEMHCA minimum of $125 /month to $782 /month, to become
effective June 1, 2016. This amount will be the monthly medical contribution reported to PERS
( PEMHCA contribution) and represents a significant decrease from the previously reported
amount of $1200 /month, which should help the City reduce its future OPEB liability and contain
costs associated with this benefit.
1 January 14, 2015 CPS report showed Executive miscellaneous were 19.5% below median and 19.6% below mean.
Data excludes the City and County of Los Angeles.
26
Additionally, staff recommends that effective October 1, 2016, for Executive miscellaneous
classes only, an additional amount of $493.33 be placed in a "flex dollar" Plan to be used by
employees to pay for medical expenses or for other permitted uses such as for their 457 Deferred
Compensation account. Creating this separate "flex dollar" plan does not contribute to the City's
OPEB liability but does provide employees with additional dollars to pay for their medical
benefit. If approved, staff can begin working with our benefits broker to put this Plan in place by
the designated date.
This arrangement is also a step toward creating a second tier with respect to the retiree medical
benefit. To further elaborate, Council had previously approved, as part of the Additional Pay
resolution, to allow current incumbents in these positions to be eligible for the previous $1200
retiree medical cap through a combination of the PEMHCA contribution and a retiree health
reimbursement account (HRA). In an effort to incentivize the workforce to take on higher level
positions within the organization, staff recommends that this same retiree medical benefit
(PEMHCA + HRA) be offered upon retirement to employees who are employed by the City
prior to June 1, 2016 and subsequently promote into a position in these affected groups. The
second retiree medical tier will apply to new employees hired on or after June 1, 2016, as they
will only be eligible to receive, upon retirement, the PEMHCA contribution in place without the
HRA.
Management - Confidential — Similar to the adjustment for Executives, staff recommends
increasing the PEMHCA contribution from $125 /month to $585 /month, also effective June 1,
2016. Additionally, effective October 1, 2016, staff recommends providing an additional
amount of $345.30 as "flex dollars" to Management/Confidential miscellaneous employees
under the same "flex dollar" concept previously described.
EPMC - Management - Confidential miscellaneous employees have yet to pay their full 7% PERS
Member Share. Staff recommends increasing their share from the current 5% to 7 %, thereby
reducing the City's EPMC to 0 %. Changes to EPMC can only occur at the start of a pay period
so it is recommended that this become effective the pay period beginning on June 11, 2016.
Attached to this Staff Report is the required Resolution for Council approval.
Summary - The above benefit adjustments intend to address the total compensation for the
unrepresented miscellaneous classes, relative to their position in the market. In this instance, the
focus is on the medical benefit. Staff has come up with recommendations that provide 1) a
competitive medical benefit to enhance our recruitment efforts 2) an incentive for upward
mobility by extending a retiree medical benefit to current employees, and 3) a second retiree
medical tier to reduce the City's future OPEB liability. We believe staff's recommendations
achieve the goal of bringing total compensation closer to the market and balances our desire to
remain competitive while controlling employee benefit costs.
27
RESOLUTION NO.
A RESOLUTION PROVIDING FOR SALARY AND BENEFIT CHANGES
TO CHAPTER 1A2 (MANAGEMENT- CONFIDENTIAL SERIES) OF THE
EL SEGUNDO ADMINISTRATIVE CODE.
The City Council of the City of El Segundo does resolve as follows:
Section 1: Section 1A2.106, of the El Segundo Administrative Code re- entitled "Insurance
Benefits — Employee Dental /Optical /Long Term Disability (Non -Job Related) /Monthly Medical
Contribution is amended as follows:
(D) Monthly Medical Contribution: Effective June 1, 2016, the City will pay on behalf of
each active employee the monthly PEMHCA medical contribution amount of $782 for Executives
and $585 for Management - Confidential employees.
Effective October 1, 2016, active miscellaneous employees regulated by this Chapter shall
receive a monthly flex dollar allowance, in addition to the PEMHCA contribution, to be used for
payment of medical premiums or for other permitted uses under the Plan. The flex dollars shall
be in the following amounts (exclusive of the PEMHCA contribution):
Executives: $493.33 /month
Management - Confidential: $345.30 /month
Section 2: Section 1A2.108 of the El Segundo Administrative Code, entitled "Insurance
Benefits — Retiree Medical — City Contribution" is amended as follows:
City employees hired before June 1, 2016 who are subsequently appointed to a position
regulated by this Chapter, shall be eligible for a monthly retiree health contribution of up to
$1200. The monthly retiree health contribution will consist of the PEMHCA contribution amount
filed by the City with Ca1PERS supplemented by a City contribution to a healthcare
reimbursement account. The amount of the healthcare reimbursement supplement shall be no
more than the amount necessary to cover the health insurance premium cost for the employee and
eligible dependent(s) for the selected Ca1PERS health plan, but in no event shall the total amount
of the monthly contribution (PEMHCA contribution + healthcare reimbursement account) exceed
$1200 per month.
Employees who are hired by the City on or after June 1, 2016 and appointed to a position
regulated by this Chapter, shall only be eligible for a retiree medical benefit up to the PEMHCA
contribution amount filed by the City with Ca1PERS.
Section 3: Section 1A2.153, of the El Segundo Administrative Code entitled "PERS Member
Contribution" is amended as follows:
Miscellaneous Executives shall pay seven percent (7 %) of the PERS Member
Contribution effective October 8, 2011. Safety Executives shall pay nine percent (9 %) of the
PERS Members Contribution effective January 9, 2016. Effective June 11, 2016, Management -
Confidential employees shall pay seven percent (7 %) of the PERS Member Contribution and
effective January 9, 2016, Fire Management employees (Battalion Chiefs) shall pay nine percent
(9 %) of the PERS Member Contribution.
Section 4: The City Clerk is directed to certify the adoption of this Resolution; record this
Resolution in the book of the City's original resolutions, and make a minute of this adoption of the
Resolution in the City Council's records and the minutes of this meeting.
Section 5: This Resolution will become effective immediately upon adoption and
PASSED AND ADOPTED this 19th day of April , 2016.
Suzanne Fuentes,
Mayor
- 2 -
W
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that the whole
number of members of the City Council of said City is five; that the foregoing Resolution No.
was duly passed and adopted by said City Council, approved and signed by the Mayor,
and attested to by the City Clerk, all at a regular meeting of said Council held on the 19th day of
April 2016, and the same was so passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
NOT PARTICIPATING:
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of
.2016.
- 3 -
Tracy Weaver, City Clerk
of the City of El Segundo,
California
(SEAL)
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
LO-A
Karl H. Berger
Assistant City Attorney
WE
RESOLUTION NO.
A RESOLUTION FOR EMPLOYER PAID MEMBER
CONTRIBUTIONS (EPMC) FOR THE CITY OF EL SEGUNDO'S
MANAGEMENT AND CONFIDENTIAL EMPLOYEES
The City Council of the City of El Segundo does resolve as follows:
Section 1: The City Council finds and declares as follows:
A. The City Council of the City of El Segundo has the authority to implement
Government Code Section 20691;
B. The City of El Segundo has a written labor policy or agreement which specifically
provides for the normal member contributions to not be paid by the employer;
C. One of the steps in the procedures to implement Section 20691 is the adoption by the
City Council of the City of El Segundo of a Resolution to commence said Employer
Paid Member Contributions (EPMC);
D. The City Council of the City of El Segundo has identified the following conditions
for the purpose of its election to pay EPMC:
This benefit shall apply to all "Classic" employees of the Management /Confidential
Group (See attached Exhibit A).
This benefit shall consist of Employer paying 0% of the normal member
contributions as EPMC
• The Employee will pay 7% of the normal member contributions
i The effective date of this Resolution shall be the pay period beginning June 11, 2016.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of El Segundo
elects to pay EPMC, as set forth above.
Section 2: The City Clerk is directed to certify the adoption of this Resolution; record this
Resolution in the book of the City's original resolutions; and make a minute of the adoption
of the Resolution in the City Council's records and the minutes of this meeting.
Section 3: This Resolution will become effective immediately upon adoption.
31
PASSED AND ADOPTED this 19th day of April , 2016.
Suzanne Fuentes,
Mayor
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that the
whole number of members of the City Council of said City is five; that the foregoing
Resolution No. was duly passed and adopted by said City Council, approved and
signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said
Council held on the 19th day of April, 2016, and the same was so passed and adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
NOT PARTICIPATING:
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 19th day of
April, 2015.
Tracy Weaver, City Clerk
of the City of El Segundo,
California
(SEAL)
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
By
Karl H. Berger
Assistant City Attorney
32
EXHIBIT A
Management /Confidential Group
List of Classifications
Accounting Manager
Assistant City Engineer
Budget and Payroll Supervisor
Building Safety Manager
City Engineer
Community Cable Program Manager
Deputy City Clerk I
Deputy City Clerk II
Deputy City Treasurer II
Economic Development Manager
Executive Assistant
Fiscal Services Manager
General Services Manager
Human Resources Analyst
Human Resources Assistant
Human Resources Manager
Information Systems Manager
Librarian II
Management Analyst
Park Maintenance Superintendent
Payroll Accountant
Planning Manager
Principal Civil Engineer
Recreation Superintendent
Residential Sound Insulation Manager
Revenue Manager
Senior Civil Engineer
Senior Executive Assistant
Senior Human Resources Analyst
Senior Librarian
Senior Management Analyst
33
RESOLUTION NO. Number
FIXING THE EMPLOYER CONTRIBUTION AT AN EQUAL AMOUNT FOR EMPLOYEES AND ANNUITANTS
UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT
WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION
WHEREAS, (1) City of El Segundo is a contracting agency under Government Code Section
22920 and subject to the Public Employees' Medical and Hospital Care Act (the "Act ")
for participation by members of El Segundo Executive Management (006) and
WHEREAS, (2) Government Code Section 22892(a) provides that a contracting agency subject to Act
shall fix the amount of the employer contribution by resolution; and
WHEREAS, (3) Government Code Section 22892(b) provides that the employer contribution shall be an
equal amount for both employees and annuitants, but may not be less than the amount
prescribed by Section 22892(b) of the Act; and
RESOLVED, (a) That the employer contribution for each employee or annuitant shall be the amount
necessary to pay the full cost of his /her enrollment, including the enrollment of family
members, in a health benefits plan up to a maximum of $782 per month, plus
administrative fees and Contingency Reserve Fund assessments; and be it further
RESOLVED, (b) City of El Segundo has fully complied with any and all applicable provisions
of Government Code Section 7507 in electing the benefits set forth above; and be it
further
RESOLVED, (c) That the participation of the employees and annuitants of
City of El Segundo shall be subject to determination of its status as an "agency or
instrumentality of the state or political subdivision of a State" that is eligible to
participate in a governmental plan within the meaning of Section 414(d) of the Internal
Revenue Code, upon publication of final Regulations pursuant to such Section. If it is
determined that City of El Segundo would not qualify as an agency or instrumentality of
the state or political subdivision of a State under such final Regulations, CaIPERS may be
obligated, and reserves the right to terminate the health coverage of all participants of
the employer.
RESOLVED, (d) That the executive body appoint and direct, and it does hereby appoint and direct,
The City Clerk to file with the Board a verified copy of this resolution, and to perform on
behalf of City of El Segundo all functions required of it under the Act.
Adopted at a regular meeting of the City Council at El Segundo, this 19th day of April,
2016.
Suzanne Fuentes
Mayor
34
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO 1
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that the whole number
of members of the City Council of said City is five; that the foregoing Resolution No. was duly
passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City
Clerk, all at a regular meeting of said Council held on the 19th day of April, 2016, and the same was so
passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
NOT PARTICIPATING:
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 19th day of April, 2016.
Tracy Weaver, City Clerk
of the City of El Segundo,
California
(SEAL)
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
By:
Karl H. Berger
Assistant City Attorney
35
RESOLUTION NO. Number
FIXING THE EMPLOYER CONTRIBUTION AT AN EQUAL AMOUNT FOR EMPLOYEES AND ANNUITANTS
UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT
WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION
WHEREAS, (1) City of El Segundo is a contracting agency under Government Code Section
22920 and subject to the Public Employees' Medical and Hospital Care Act (the "Act ")
for participation by members of El Segundo Mid - Management /Confidential (001) and
WHEREAS, (2) Government Code Section 22892(a) provides that a contracting agency subject to Act
shall fix the amount of the employer contribution by resolution; and
WHEREAS, (3) Government Code Section 22892(b) provides that the employer contribution shall be an
equal amount for both employees and annuitants, but may not be less than the amount
prescribed by Section 22892(b) of the Act; and
RESOLVED, (a) That the employer contribution for each employee or annuitant shall be the amount
necessary to pay the full cost of his /her enrollment, including the enrollment of family
members, in a health benefits plan up to a maximum of $585.00 per month, plus
administrative fees and Contingency Reserve Fund assessments; and be it further
RESOLVED, (b) City of El Segundo has fully complied with any and all applicable provisions
of Government Code Section 7507 in electing the benefits set forth above; and be it
further
RESOLVED, (c) That the participation of the employees and annuitants of
City of El Segundo shall be subject to determination of its status as an "agency or
instrumentality of the state or political subdivision of a State" that is eligible to
participate in a governmental plan within the meaning of Section 414(d) of the Internal
Revenue Code, upon publication of final Regulations pursuant to such Section. If it is
determined that City of El Segundo would not qualify as an agency or instrumentality of
the state or political subdivision of a State under such final Regulations, CalPERS may be
obligated, and reserves the right to terminate the health coverage of all participants of
the employer.
RESOLVED, (d) That the executive body appoint and direct, and it does hereby appoint and direct,
The City Clerk to file with the Board a verified copy of this resolution, and to perform on
behalf of City of El Segundo all functions required of it under the Act.
Adopted at a regular meeting of the City Council at El Segundo, this 19th day of April,
2016.
Suzanne Fuentes
Mayor
36
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO 1
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that the whole number
of members of the City Council of said City is five; that the foregoing Resolution No. was duly
passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City
Clerk, all at a regular meeting of said Council held on the 19th day of April, 2016, and the same was so
passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
NOT PARTICIPATING:
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 19th day of April, 2016.
Tracy Weaver, City Clerk
of the City of El Segundo,
California
(SEAL)
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
IM
Karl H. Berger
Assistant City Attorney
37
RESOLUTION NO. Number
FIXING THE EMPLOYER CONTRIBUTION AT AN EQUAL AMOUNT FOR EMPLOYEES AND ANNUITANTS
UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT
WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION
WHEREAS, (1) City of El Segundo is a contracting agency under Government Code Section
22920 and subject to the Public Employees' Medical and Hospital Care Act (the "Act ")
for participation by members of El Segundo Supervisory and Professional Employees'
Association (005) and
WHEREAS, (2) Government Code Section 22892(a) provides that a contracting agency subject to Act
shall fix the amount of the employer contribution by resolution; and
WHEREAS, (3) Government Code Section 22892(b) provides that the employer contribution shall be an
equal amount for both employees and annuitants, but may not be less than the amount
prescribed by Section 22892(b) of the Act; and
RESOLVED, (a) That the employer contribution for each employee or annuitant shall be the amount
necessary to pay the full cost of his /her enrollment, including the enrollment of family
members, in a health benefits plan up to a maximum of the PEMHCA Minimum per
month, plus administrative fees and Contingency Reserve Fund assessments; and be it
further
RESOLVED, (b) City of El Segundo has fully complied with any and all applicable provisions
of Government Code Section 7507 in electing the benefits set forth above; and be it
further
RESOLVED, (c) That the participation of the employees and annuitants of
City of El Segundo shall be subject to determination of its status as an "agency or
instrumentality of the state or political subdivision of a State" that is eligible to
participate in a governmental plan within the meaning of Section 414(d) of the Internal
Revenue Code, upon publication of final Regulations pursuant to such Section. If it is
determined that City of El Segundo would not qualify as an agency or instrumentality of
the state or political subdivision of a State under such final Regulations, CalPERS may be
obligated, and reserves the right to terminate the health coverage of all participants of
the employer.
RESOLVED, (d) That the executive body appoint and direct, and it does hereby appoint and direct,
The City Clerk to file with the Board a verified copy of this resolution, and to perform on
behalf of City of El Segundo all functions required of it under the Act.
Adopted at a regular meeting of the City Council at El Segundo, this 19th day of April,
2016.
Suzanne Fuentes
Mayor
WQ
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO 1
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that the whole number
of members of the City Council of said City is five; that the foregoing Resolution No. was duly
passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City
Clerk, all at a regular meeting of said Council held on the 19th day of April, 2016, and the same was so
passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
NOT PARTICIPATING:
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 19th day of April, 2016.
Tracy Weaver, City Clerk
of the City of El Segundo,
California
(SEAL)
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
Karl H. Berger
Assistant City Attorney
M
RESOLUTION NO. Number
FIXING THE EMPLOYER CONTRIBUTION AT AN EQUAL AMOUNT FOR EMPLOYEES AND ANNUITANTS
UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT
WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION
WHEREAS, (1) City of El Segundo is a contracting agency under Government Code Section
22920 and subject to the Public Employees' Medical and Hospital Care Act (the "Act ")
for participation by members of El Segundo Police Manager's Association (007) and
WHEREAS, (2) Government Code Section 22892(a) provides that a contracting agency subject to Act
shall fix the amount of the employer contribution by resolution; and
WHEREAS, (3) Government Code Section 22892(b) provides that the employer contribution shall be an
equal amount for both employees and annuitants, but may not be less than the amount
prescribed by Section 22892(b) of the Act; and
RESOLVED, (a) That the employer contribution for each employee or annuitant shall be the amount
necessary to pay the full cost of his /her enrollment, including the enrollment of family
members, in a health benefits plan up to a maximum of the PEMHCA Minimum per
month, plus administrative fees and Contingency Reserve Fund assessments; and be it
further
RESOLVED, (b) City of El Segundo has fully complied with any and all applicable provisions
of Government Code Section 7507 in electing the benefits set forth above; and be it
further
RESOLVED, (c) That the participation of the employees and annuitants of
City of El Segundo shall be subject to determination of its status as an "agency or
instrumentality of the state or political subdivision of a State" that is eligible to
participate in a governmental plan within the meaning of Section 414(d) of the Internal
Revenue Code, upon publication of final Regulations pursuant to such Section. If it is
determined that City of El Segundo would not qualify as an agency or instrumentality of
the state or political subdivision of a State under such final Regulations, CalPERS may be
obligated, and reserves the right to terminate the health coverage of all participants of
the employer.
RESOLVED, (d) That the executive body appoint and direct, and it does hereby appoint and direct,
The City Clerk to file with the Board a verified copy of this resolution, and to perform on
behalf of City of El Segundo all functions required of it under the Act.
Adopted at a regular meeting of the City Council at El Segundo, this 19th day of April,
2016.
Suzanne Fuentes
Mayor
WE
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO 1
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that the whole number
of members of the City Council of said City is five; that the foregoing Resolution No. was duly
passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City
Clerk, all at a regular meeting of said Council held on the 19th day of April, 2016, and the same was so
passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
NOT PARTICIPATING:
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 19th day of April, 2016.
Tracy Weaver, City Clerk
of the City of El Segundo,
California
(SEAL)
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
IM
Karl H. Berger
Assistant City Attorney
41
EL SEGUNDO CITY COUNCIL
AGENDA STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: April 19, 2016
AGENDA HEADING: Consent Agenda
Consideration and possible action regarding authorization for the Police Department to
hire a full -time benefited Police Service Officer by consolidating funds from two part-
time and one full -time non - benefited positions. (Fiscal Impact: Not to exceed $106,000)
RECOMMENDED COUNCIL ACTION:
1) Authorize the Police Department to hire one full -time benefited Police Service Officer to
increase authorized staffing by one.
2) Authorize the Police Department to consolidate salary and benefits funding from (1)
Office Specialist 1 and (2) part-time Police Service Officers to fund the additional PSO.
3) Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
FISCAL IMPACT: $106,000
Amount Budgeted: $106,000 — Salary and Benefits
Additional Appropriation: N/A
Account Number(s): 001 - 400 - 3101 -4100
r,
ORIGINATED BY: Raymond Garcia, lieutenant
REVIEWED BY: Mitch Tavera, Chief of PoliceAxCr�
APPROVED BY: Greg Carpenter, City Manager ,
BACKGROUND AND DISCUSSION:
Due to budget constraints and staff reductions, the Police Department has had to implement
interim measures to operate the City's Type I jail facility.
Further, the Police Department must comply with the State of California Code of Regulations,
Title 15, which governs jail operations. By mandate, our organization is required to have a
trained female matron on -duty and available at all times when a female subject is housed in the
jail facility.
These requirements and lack of full -time Police Service Officers has necessitated the following:
➢ Modified /compressed work schedules.
➢ Utilization of Part-Time female employees from ESPD and outside agencies
➢ The need to mandate graveyard /weekend shifts to our female staff.
➢ Forced and mandated overtime.
➢ Booking and housing female arrestees at neighboring jail facilities.
W
al
Additionally, these requirements have caused officers to simply release female violators in the
field with a citation in lieu of arrest.
These measures are not conducive to the efficient and effective operation of the facility and it is
now time to consider longer -term in -house jail operations with the restoration of a full -time
employee.
To fund the requested full -time position, staff recommends the salary and benefits from the
following budgeted positions be consolidated and those positions eliminated:
Office Specialist 1
Police Service Officer
Police Service Officer
(full -time non - benefited)
(part -time)
(part-time)
Comparative cost for this requested position:
Full -Time PSO (Recently resigned)
$66,480 total compensation
$24,677 total compensation
$18 total compensation
$106,155 total
$93,169 total compensation
Due to the critical functions performed by Police Service Officers which include Jail operations,
Court Liaison functions, and Animal Control duties, it is anticipated the Police Department will
return to City Council during the upcoming budgetary strategic planning session to request an
additional PSO position to better provide these services to the community and the Department.
*The above compensation figures come from the Finance Department's FY 201512016 Salary
and Benefits Report for PD and IS.
43
EL SEGUNDO CITY COUNCIL MEETING DATE: April 19, 2016
AGENDA STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action to adopt a Resolution approving Plans and
Specifications for City -wide Catch Basin Screen Installation, Project No. PW16 -12.
(Fiscal Impact: $68,000.00)
RECOMMENDED COUNCIL ACTION:
1. Adopt the attached Resolution approving Plans and Specifications for City -wide
Catch Basin Screen Installation Project (Project No. PW16 -12).
2. Alternatively, discuss and take other possible actions related to this item.
ATTACHED SUPPORTING DOCUMENTS:
Resolution
FISCAL IMPACT: Included in Adopted FY 15 -16 Budget
Amount Budgeted: $68,000.00
Additional Appropriation: N/A
Account Number(s): 001 - 400 - 4302 -6215 (Storm Drain Repair and Maintenance Fund)
ORIGINATED BY: Arianne Bola, Senior Engineer Associate AS
REVIEWED BY: Stephanie Katsouleas, Public Works Director
APPROVED BY: Greg Carpenter, City Manager,/
AND DISCUSSION:
On November 8, 2012, the Los Angeles Regional Water Quality Control Board (LARWQCB)
adopted a revised Storm Water National Pollution Discharge Elimination System Permit (also
called Storm Water MS4 Permit) to 87 cities in Los Angeles County, with an effective date of
December 28, 2012. This new Storm Water Permit contains a variety of new provisions,
including the incorporation of many new Total Maximum Daily Load (TMDL) limits for the Los
Angeles Region's waterbodies. A TMDL is essentially the maximum amount of a particular
pollutant that can be discharged to a water body without impairing its designated beneficial uses
(e.g., swimming, fishing, agriculture, habitat, drinking water supply, navigation).
One such TMDL is the Santa Monica Bay Nearshore and Offshore Debris Maximum Daily Limit
(MDL). This "trash" TMDL requires Cities that discharge directly to Santa Monica Bay to
reduce storm water trash/debris water to zero (0) by 2020 (20% additional reduction each year
over the next five years). As one approach toward achieving full compliance, staff is
recommending the installation of excluder screens on high priority catch basins throughout the
City, which will prevent a significant trash/debris from entering the storm drain system. These
excluder screens further compliment the City's existing non - structural activities such as
increased street sweeping and public education. The catch basin excluder screen project will
continue annually (and strategically) for the City's 370 city -owned and 206 county -owned catch
,
basins until El Segundo achieves the required 100% trash loading reduction. Please note that: 1)
not all catch basins will need to be retrofitted, 2) staff will continue investigating other trash
capture /diversion structural options toward achieving full compliance using the most economical
and practical approaches available, and 3) the City is required to document its progress towards
the meeting the TMDLs requirements in its NPDES annual report.
During this first cycle, we plan to initially install between 50 and 100 excluder screens at high
priority City -and County -owned catch basins that drain to the Santa Monica Bay watershed area,
with an overall goal of achieving a 40% trash load reduction by the end of 2016. The storm
drains and catch basins selected as high priority are the ones that typically receive the most trash,
as documented during our annual cleanout efforts.
Funding in the amount of $68,000 is available from the Storm Drain Repair and Maintenance
Fund for the City -wide Catch Basin Screen Installation project. Therefore, staff recommends that
City Council approve a resolution adopting plans and specifications for the project and authorize
staff to advertise for receipt of construction bids. Construction is anticipated to commence in
July and to be completed by September 2016.
Staff estimates the following timeline for the project:
April, 2016 Advertise the Project
June, 2016 Project Award by City Council
July, 2016 Start Construction
September, 2016 Complete Construction
45
RESOLUTION NO.
A RESOLUTION APPROVING THE DESIGN AND PLANS
FOR THE CONSTRUCTION OF THE CITY -WIDE CATCH
BASIN SCREEN INSTALLATION PROJECT PURSUANT TO
GOVERNMENT CODE SECTION 830.6 AND ESTABLISHING
A PROJECT PAYMENT ACCOUNT.
The City Council of the City of El Segundo does resolve as follows:
SECTION 1: The City Council finds and declares as follows:
A. The City Engineer prepared specifications and plans requesting
Construction of the City -wide Catch Basin Screen Installation Project (the
"Project "). These plans are complete. Bidding for construction of the
Project may begin;
B. The City Council wishes to obtain the immunities set forth in Government
Code § 830.6 with regard to the plans and construction of the Project.
SECTION 2: Design Immunity; Authorization.
A. The design and plans for the Project are determined to be consistent with
the City's standards and are approved.
B. The design approval set forth in this Resolution occurred before actual
work on the Project construction commenced.
C. The approval granted by this Resolution conforms with the City's General
Plan.
D. The City Engineer, or designee, is authorized to act on the City's behalf in
approving any alterations or modifications of the design and plans
approved by this Resolution.
E. The approval and authorization granted by this Resolution is intended to
avail the City of the immunities set forth in Government Code § 830.6.
SECTION 3: Project Payment Account. For purposes of the Contract Documents
administering the Project, the City Council directs the City Manager, or designee, to
establish a fund containing sufficient monies from the current fiscal year budget to pay
for the Project ( "Project Payment Account ") following receipt of construction bids. The
Project Payment Account will be the sole source of funds available for the Contract
Sum, as defined in the Contract Document administering the Project.
SECTION 4: The City Clerk is directed to certify the adoption of this Resolution.
Resolution No.
Pagel of 2
.,
Sec. 6.150.020. This Resolution will become effective immediately upon adoption.
PASSED AND ADOPTED this day of 20
ATTEST:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
am
Suzanne Fuentes, Mayor
MARK D. HENSLEY, City Attorney
Resolution No.
Page 2 of 2
47
EL SEGUNDO CITY COUNCIL MEETING DATE: April 19, 2016
AGENDA STATEMENT AGENDA HEADING: Consent Agenda
AGENDA DESCRIPTION:
Consideration and possible action to receive and file this report regarding emergency
work to repair dwelling units at the Park Vista Senior Housing Facility due to water
intrusion without the need for bidding in accordance with Public Contracts Code §§
20168 and 22050 and El Segundo Municipal Code ( "ESMC ")§ 1 -7 -12 and 1 -7A -4.
(Fiscal Impact: $50,000.00)
RECOMMENDED COUNCIL ACTION:
(1) Receive and file this report regarding emergency work to repair dwelling units at the
Park Vista Senior Housing Facility due to water intrusion without the need for
bidding in accordance with Public Contracts Code §§ 20168 and 22050 and El
Segundo Municipal Code ( "ESMC ")§ 1 -7 -12 and 1 -7A -4.
(2) Alternatively, discuss and take other possible action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
None
FISCAL IMPACT: Included in Adopted Budget
Amount Budgeted: $50,000.00
Additional Appropriation: No
Account Number(s): 405- 400 - 0000 -6215 (Facilities Maintenance: Repairs and
Maintenance)
ORIGINATED BY: Stephanie Katsouleas, Director of Public Works
REVIEWED BY: Gregg Kovacevich, Assistant City Attorney
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
Construction to replace three sliding glass doors has been completed. Work commenced on
April 4, 2016 on the deck modifications such that the deck slopes are improved, which will better
direct flow from the sliding glass doors to the floor drains. Unforeseen conditions were
discovered on the deck connected to unit 219. It appears that prior deck modifications were
attempted years ago to address ponding and the slope, but addressed incorrectly. In addition to
discovering additional layers of decking, the contractor discovered trapped water and a
significant amount of wood rot, as well as poorly installed flashing. This work will need to be
corrected before the new deck coating can be applied. As of the timing of this staff report, staff
did not have an estimate for the timing to complete that work. The work occurring at the other
two units is proceeding according to plan and is expected to take approximately three weeks to
complete due to stripping the existing deck surfaces off and product cure times of the new deck
surface that will be installed.
TZ
Public Contracts Code § 22050 (c) requires that the City Council receive updates at every
regularly scheduled meeting until the emergency repair is completed. Therefore, staff
recommends that City Council receive and file this report on the status of the emergency repair
to address the water intrusion issues at the Park Vista Senior Housing Facility.
EL SEGUNDO CITY COUNCIL
AGENDA STATEMENT
AGENDA DESCRIPTION:
MEETING DATE: April 19, 2016
AGENDA HEADING: Consent Agenda
Consideration and possible action to authorize the City Manager to execute an
amendment and extend the professional services agreement with Prosum Tech Services
in an amount not -to- exceed $100,000 for helpdesk and technical support for the
Information Systems division (Fiscal Impact: $100,000)
RECOMMENDED COUNCIL ACTION:
(1) Authorize the City Manager to execute an amendment to extend the professional
services agreement with Prosum Technology Services in the amount not -to- exceed
$100,000 to provide helpdesk and technical support for the Information Systems division.
(2) Alternatively, discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
Scope of Work
FISCAL IMPACT: Included in Adopted Budget
Amount Budgeted: $100,000
Additional Appropriation: No
Account Number(s): 001- 400 - 2505 -4XXX Salary Savings
ORIGINATED BY: Scott Kim, Acting Information Systems Manager
REVIEWED BY: Mitch Tavera, Chief of Police 44 ix �-'
APPROVED BY: Greg Carpenter, City Manager
BACKGROUND AND DISCUSSION:
Information Systems staff currently has three unfilled vacant positions. With these vacancies, the
existing Network Assistant is receiving more work than can be accomplished. Staff would like to
use the salary savings from the vacant positions to continue the existing contracted services to
augment our workforce on a temporary basis.
Staff has a working relationship with Prosum Technology Services, a local El Segundo company,
to provide information technology services. Prosum Technology Services currently provides a
Helpdesk Contractor, who has been very valuable and beneficial to the City.
Staff recommends authorizing the City Manager to execute an amendment with Prosum
Technology Services in an amount not -to- exceed $100,000. This amendment will extend our
helpdesk and technical service support agreement for twelve additional months.
WE
City of El Segundo
Technical Support
Statement of Work
4/13/16
Crf.) P R 0 S U M
This addendum is incorporated into the Master Services Agreement dated June 25, 2013 between City
of El Segundo and Prosum, Inc.
Prosurn Technology Services
2201 Park Place, Suite 102
El Segundo, CA 90245
® 2015 Prosum CONFIDENTIAL
All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic or mechanical,
Including photocopy, recording, or any information storage and retrieval system, without permission from Prosum.
51
Contents
1. OVERVIEW .............................................................................................................. ............................... 3
2. PROSUM PROFILE .................................................................................................... ..............................3
3. APPROACH AND SCOPE ........................................................................................... ..............................4
4. ASSUMPTIONS ........................................................................................................ ..............................4
5. TEAM MEMBERS ..................................................................................................... ..............................5
6. SCHEDULE AND COST .............................................................................................. ..............................5
7. Change Order .......................................................................................................... ..............................5
8. ACCEPTANCE ........................................................................................................... ..............................6
2
April 13, 2016
Cf -f.� P R 0 S U M
52
1. OVERVIEW
City of El Segundo has requested Prosum's assistance in providing a Technical Support resource on a
Time & Material basis for 42 weeks consulting engagement under the fully executed IT Services
Agreement executed between City of El Segundo and Prosum.
This following Statement of Work, made in accordance with the terms of the IT Services Agreement,
outlines the scope and estimated costs associated with this resource.
2. PROSUM PROFILE
Prosum, Inc. ( Prosum) is a technology services company that builds lasting partnerships by giving our
clients a competitive advantage in their marketplace through a unique combination of Business
Consulting, Technology Solutions, Outsourcing and Resource Staffing. Prosum brings years of experience
in providing enterprise infrastructure and managed support services utilizing proven and emerging
Microsoft technologies as well as proven experience in delivering project based solutions on time and on
budget.
Prosum's consulting approach is based on the realization that business processes and their supporting
applications and systems can only be fully understood,
implemented, supported and improved by understanding their
interdependencies. Our holistic approach is driven by
understanding and aligning our clients':
,. Business Vision and Strategy
IT Vision and Strategy
Technical, Enterprise, and Business Architectures
f _ Service Orientated Operations
At a high - level, the approach is driven by an understanding of
how the technical architecture supports the IT services provided to the business. This ensures that all IT
service requirements are addressed in a comprehensive and well - planned manner allowing for efficient
tactical day -to -day support along with long -term strategic direction for Information Technology as a
whole.
3
April 13, 2016
CJX__) P R 0 S U M
53
3. APPROACH AND SCOPE
Prosum will provide a Technical Support Resource who will work in collaboration with City of
El Segundo's team. City of El Segundo will provide the resource with direction on an ongoing
basis and will clearly define for him /his role relative to the other members of the City of El
Segundo IT team.
It is anticipated that the Prosum resources will be engaged in, but not limited to, the following
activities-
• Provide customer support and technical issue resolution via e-mail, phone and other
electronic medium
• Provide customer support and technical issue resolution in person as needed
• Identify and correct or advise on product issues in client computer systems.
• Perform timely escalation of support related issues to various departments for further
analysis and resolution
■ Perform other duties as requested and within areas of expertise
4. ASSUMPTIONS
This statement of work was based on the following assumptions.
• The content of this document is based on a description of desired duties and responsibilities
provided by City of El Segundo, as well as discussions between Prosum and City of El Segundo.
• City of El Segundo will assign a Manager to provide direction to the Prosum resource regarding
prioritization and scheduling of duties.
• City of El Segundo I will provide workspace for Prosum project staff, and access to internet,
telephones, copier, fax, conference rooms, and printing facilities.
• Prosum resource will have access to client documentation. This documentation may include
organization, planning, and technical architecture material, and any other existing
documentation deemed appropriate for the support.
• City of El Segundo will provide Prosum project personnel with access to relevant external and
internal systems, as Prosum may require. This includes system access information such as login
information, Internet accessibility, and other interfacing systems.
• The Prosum resources will be working in the City of El Segudo offices in El Segundo, California.
4
April 13, 2016
54
S. TEAM MEMBER
The following roles will be provided by Prosum and required for this engagement.
Technical Support Consultant
6. SCHEDULE AND COST
It is expected that the resource will be engaged for the following period:
Position
T &M Rate
No. of
Start Date
Estimated
Extended
Hours
End Date
Technical
$60 /hour
1667 hours
5/6/16
5/5/17
$100,000.00
Support
(42 weeks)
NTE TOTAL:
$100,000.00
Prosum bills on a Time & Material basis, and the Not -To- Exceed (NTE) value above is based on information
gathered to date. It is expected that this resources will work an average of 40 hours per week during this
period at an hourly rate of $60 per hour. Actual hours worked will be determined by requests and
direction from the primary City of El Segundo contact. The duration of this SOW is expected for 42 weeks
and based on 40 hour weeks for a total cost of $100,000. Prosum will only invoice for the actual number
of hours worked.
City of El Segundo may terminate this agreement for convenience or cause with 1 day advanced notice.
City of El Segundo also has the ability to extend this resource beyond NTE Total of $100,000 and 1667
hours with 1 day advanced notice.
7. Change Order
Once the Statement of Work has been signed, any modifications to the scope described herein will
require a change order. A change order will define new requirements and may impact on delivery time
and cost; however, Prosum will be diligent to minimize such delivery and cost impact to City of El
Segundo as a result of such new requirements.
5
April 13, 2016 'CXXJ PRQSVM
611
8. ACCEPTANCE
This document will be deemed accepted upon receipt of a signed copy thereof. Contents of this document supersede
all other documents related to the services described herein. If this document correctly states our agreement, please
sign below and return to Prosum.
Agreed and accepted,
City of El Segundo Authorized Officer Prosum Authorized Officer
Name: Name: R /CK 7--y A 0- r
Signature: Signature:
Title: Title: V
Z
Date: Date: � Zjl -116
6
April 13, 2016 Crf.) P R 0 5 U
56
EL SEGUNDO CITY COUNCIL MEETING DATE: April 19, 2016
AGENDA STATEMENT AGENDA HEADING: New Business
AGENDA DESCRIPTION:
Consideration and possible action regarding FY 2015 -2016 Midyear Financial Review, consider
funding for the Richmond Street Project and the City -wide Sidewalk, Curb and Gutter
Restoration Program. (Fiscal Impact: To be Determined)
RECOMMENDED COUNCIL ACTION:
(1) Receive and File FY 2015 -16 Midyear Financial Review;
(2) Consider funding for the Richmond Street Rehabilitation Project;
(3) Consider funding for the City -wide Sidewalk, Curb and Gutter Restoration Program;
and
(4) Alternatively discuss and take other action related to this item.
ATTACHED SUPPORTING DOCUMENTS:
none
FISCAL IMPACT: To Be Determined
Amount Budgeted:$0
Additional Appropriation: N/A
Account Number(s): None
ORIGINATED BY: Joseph Lillio, Director of Finance ,-t-
APPROVED BY: Greg Carpenter, City Manager,?
BACKGROUND AND DISCUSSION:
Midvear Financial Review Fiscal Year 2015 -2016
Staff has reviewed all revenues and expenditures for midyear Fiscal Year (FY) 2015 -16, with an
emphasis on the General Fund, to determine if all sources and uses are on target with the
originally adopted budget and to highlight any areas that may end the fiscal year significantly
above or below budget. As we review the midyear results, the City continues to recover from the
economic recession and financial challenges. As of February, the Bureau of Labor and Statistics
reports that the state of California's unemployment rate has gone down from 6.9% to 5.7% when
compared to February 2015. Nationwide, the unemployment number was available for the month
of March. This number has decreased from 5.5% in March 2015 to 5.0% in March 2016.
The U.S. economy continues to grow at an anemic rate of 1.4% as of the fourth quarter
(December 2015) and is anticipated to grow around 2.0% through the end of 2016.
57
The City's business and industry sectors provide the majority of sales and use tax and this sector
has shown improvement but is still sensitive to the overall economy. Statewide, it is expected
that Sales & Use Tax will increase about 3.2% in FY 2015 -2016. El Segundo's increase is
estimated at around 3.6 %. The City is lagging behind statewide growth in the Food and Drugs
and General Consumer Goods sectors.
Property Tax growth within the City is going to remain relatively flat for the current fiscal year.
The City will receive the normal 2% CPI growth, but currently has outstanding assessments that
potentially erode that growth. The City generally has fewer home sales compared to the
surrounding cities. Although this is a very reliable revenue source, its long -term growth averages
about 2% per year.
In January 2016, Ca1PERS released the results of investment earnings of 2.4% for fiscal year
ending June 30, 2015. This is well below their target rate of return at 7.5 %. This is the return
assumed in the pension contribution rate charged to employers. Depending on how FY 2015 -16
ends for the CAPERS portfolio, employer rates could increase to cover the lower than
anticipated returns. The current and future CalPERS employer pension rates for miscellaneous
groups are 17.73% for FY 15 -16, 19.07% for FY 2016 -17 and 20.4% projected for FY 2017 -18.
The current and future Ca1PERS employer pension rates for public safety are 46.595% for FY
15 -16, 49.973% for FY 2016 -17 and 52.6% projected for FY 2017 -18.
Overall, the economy is showing signs of recovery statewide. While we are projecting moderate
growth in many City revenues, the concentration of revenues coming from the business and
industry sector creates a higher level of volatility in our core tax revenues that is difficult to
forecast. These core revenues will be closely observed during the next quarter and staff will be
able to better estimate the projected year -end performance.
General Fund Revenues
The following is a list of major General Fund revenues and the performance of each source
through midyear plus estimates to yearend:
Table 1: General Fund Revenues
2
Variance
Over/
Current
Current
FY 2015-
FY2015-
(Under)
Unaudited
Year
Year
2016
% of
2016 Year-
FY 2015 -
FYE
Through
Through
Adopted
Budget
end
2016
Revenue Source
2014 -15
313112015
313112016
Budget
Received
Estimate
Bud et
Business License
10,694,529
10,552,413
10,337,019
11,319,890
91.32%
11,354,890
35,000
Sales & Use Tax
8,530,162
4,136,151
4,262,388
10,916,100
39.05%
10,516,100
- 400,000
Sales Tax in Lieu
2,907,652
1,453,826
462,040
2,209,300
20.91%
2,235,480
26,180
Property Tax
6,698,723
3,581,344
3,804,176
6,700,350
56.78%
6,730,350
30,000
Transient Occupancy (TOT)
5,423,972
2,567,234
2,653,641
6,109,400
43.44%
6,109,400
0
Charges for Services
6,120,641
2,443,595
2,341,446
4,776,750
49.02%
4,822,750
46,000
Electric Utility Tax
3,150,652
1,517,615
1,428,047
3,250,000
43.94%
3,250,000
0
Franchise Tax
3,672,611
184,198
178,009
2,450,000
7.27%
2,650,000
200,000
2
Cogeneration Electric
1,194,979
690,688
494,609
1,290,000
38.34%
1,170,000
- 120,000
License & Permits
2,008,675
819,629
1,059,241
1,671,400
63.37%
1,711,400
40,000
Gas Utility Tax
2,912,199
1,847,792
1,182,924
2,400,000
49.29%
2,400,000
0
Interest /Rentals
484,283
184,038
180,567
312,400
57.80%
342,400
30,000
Tax Resolution Agreement
4,843,034
4,843,034
5,381,035
5,500,000
97.84%
5,381,035
- 118,965
Other Revenues
5,674,808
2,139,153
2,373,128
4,282,540
55.41%
5,004,390
7.21,850
Total General Fund
Revenues
64,316,920
36,960,710
36,138,270
63,188,130
57.19%
63,678,195
490,065
Net of Transfers
Transfers In
0
0
0
50,000
0.00%
50,000
0
Total General Fund
64,316,920
36,960,710
36,138,270
63,238,130
57.14%
63,728,195
490,065
Revenues
Business License Tax is the City's largest General Fund revenue source, accounting for 17.9%
of its total estimated revenues net of transfers. The majority of this revenue stream is collected
in January and February, and based on the revenues received in the first 6 months of the fiscal
year this category is projected to increase by $35,000 compared to the adopted budget. This
increase in projected revenues is primarily due to an increase in filming fee revenue. There has
been an increase in filming activity in the City this fiscal year. This revenue stream will be
closely watched and updated during third quarter projections.
FY 2014 -15 Unaudited Actual Revenue
$10,694,529
FY 2015 -16 Adopted Budget
$11,319,890
FY 2015 -16 Yearend Estimate
$11,354,890
Sales & Use Tax combined is the City's second largest revenue source, accounting for over
17.2% of the General Fund revenues. Sales and Use Tax receipts for the first six months of the
current year were $126,237 higher, up 3% compared to the same period last year. The budget
amount is higher than the previous year's actuals do to the unwinding of the State's borrowing
against the City's 1% sales tax rate, or also known as the Bradley Burns rate. Since 2004 the
State has been taking 0.25% and only submitting 0.75% of the Bradley Burns rate to cities in
order to balance the state budget. In order to be made whole, the 0.25% was remitted to cities
twice a year (January and May) through the Sales Tax in Lieu, also known as "Triple Flip"
program. Beginning in July 2016 cities will receive their full share of the 1% sales tax versus the
0.75% cities have been receiving and the Triple Flip will go away. This is the cause for the large
variance in prior year actual to current budget and yearend estimate. The reduction of $400,000
reflected in the yearend estimate is a result of a reduction of sales tax from fuel and service
stations due to the lower gasoline prices California has experienced over the last several months.
Lower gas prices could continue to have a downward pressure on sales tax into the next year's
budget.
3
59
FY 2014 -15 Unaudited Actual Revenue
$8,530,162
FY 2015 -16 Adopted Budget
$10,916,100
FY 2015 -16 Year -end Estimate
FY 2015 -16 Year -end Estimate
$10,516,100
Sales Tax in Lieu (also known as "triple flip ") is received in two payments each year (January
and May) and is calculated as a percentage of the estimated Sales and Use Tax. The triple flip is
winding down and will come to end by June 30, 2016. There will be a final true -up payment (3`d
payment) within 60 days of June 30, 2016. Moving forward, cities will now be made whole on
the Bradley Burns 1.0% sales tax. This revenue is projected to end the year over budget by
$26,180 and is expected to be $672,172 less than last year's actual revenue due to a decline in
fuel prices.
FY 2014 -15 Unaudited Actual Revenue
$2,907,652
FY 2015 -16 Adopted Budget
$2,209,300
FY 2015 -16 Year -end Estimate
$2,235,480
Property Tax is $222,832 higher than the same period last year and is projected to end
approximately $30,000 over budget. The City has experienced a net taxable value increase of
6.1% for the 2015 -2016 tax roll, which mirrored the increase experienced countywide of 6.1%.
The assessed value increase between 2014 -15 and 2015 -16 was $617 million.
FY 2014 -15 Unaudited Actual Revenue
$6,698,723
FY 2015 -16 Adopted Budget
$6,700,350
FY 2015 -16 Yearend Estimate
$6,730,350
Transient Occupancy Tax (TOT) is currently 3.3% or $86,407 above the same period last year,
with 43.44% of budget received. This revenue has been rebounding as the economy improves
due to increased occupancies and room rates. At this time TOT is projected to be in line with
budget. The A Loft Hotel and has been under refurbishment during the first half of the current
fiscal year and is projected to be online in May. Staff will continue to monitor and report any
changes due to the economic conditions at third quarter and review the scheduled reopening
dates for any new hotels.
FY 2014 -15 Unaudited Actual Revenue
$5,423,972
FY 2015 -16 Adopted Budget
$6,109,400
FY 2015 -16 Yearend Estimate
$6,109,400
. �,
Charges for Services includes Zoning and Planning fees, Plan Check fees, Plan Retention fees,
Energy Plan Check fees, Planning Service fees and Paramedic Transport and have a combined
budget of $4,776,750. The City has received $2,341,446 or 49.02% of budget through the
second quarter. This is a 4.2% or $102,149 decrease over the same period last year. According
to the Planning and Building Safety Department, plan check fees during the 1st two quarters are
slightly down compared to the same two quarters last year. However, plan check fees are
predicted to come in over budget by $46,000. Staff will continue to closely monitor this
category and update the yearend estimate at the end of the third quarter.
FY 2014 -15 Unaudited Actual Revenue
$6,120,641
FY 2015 -16 Adopted Budget
$4,776,750
FY 2015 -16 Yearend Estimate
$4,822,750
Franchise Tax is another one of the City's major revenue sources that is always impacted by the
price of natural gas. The average price of natural gas for the 2015 calendar year is down
approximately 32% compared to calendar year 2014. The annual payments received in April of
each year are calculated using the average price of natural gas for the prior calendar year. This
revenue is slightly above target when strictly compared to the same period last year at midyear.
This year's annual payments from the two top tax producers are anticipated to be $1 million
lower than last year's payments. This revenue source is projected to exceed estimated revenues
by $200,000 due to an increase in the payment from Southern California Edison.
FY 2014 -15 Unaudited Actual Revenue
$3,672,611
FY 2015 -16 Adopted Budget
$2,450,000
FY 2015 -16 Yearend Estimate
$2,650,000
Electric Utility User's Tax is 5.9% or $89,568 lower than the same period last year with
43.94% of budget received. It is projected that this revenue source will be in line with budget.
This increase over the prior year is primarily due to an increase in user rates. Staff will continue
to closely monitor this category and update the yearend estimate at the end of the third quarter.
FY 2014 -15 Unaudited Actual Revenue
$3,150,652
FY 2015 -16 Adopted Budget
$3,250,000
FY 2015 -16 Yearend Estimate
$3,250,000
Cogenerated Electric Utility User's Tax is 38.5% or $266,496 lower than the same period last
year with 38.34% of budget received. The revenue source is expected to be $120,000 lower than
budget. The Short Run Avoided Cost (SRAC) rate is obtained from Southern California Edison
and impacts the amount of cogenerated tax paid to the City. This rate is used to calculate a fair
price for energy produced by cogenerating plants. The SRAC rate is down approximately 2.1%
5
61
compared to the same period last year
FY 2014 -15 Unaudited Actual Revenue $1,194,979
FY 2015 -16 Adopted Budget $1,290,000
FY 2015 -16 Yearend Estimate $1,170,000
License and Permits includes animal licensing, various building permits, and street permits.
Through the second quarter the City recorded revenues of $1,059,241 or 63.37% of budget.
This revenue stream is expected to exceed budgeted revenues by $40,000.
FY 2014 -15 Unaudited Actual Revenue $2,008,675
FY 2015 -16 Adopted Budget $1,671,400
FY 2015 -16 Yearend Estimate $1,711,400
Gas Utility Tax is currently at 49.29% of budget revenues. This revenue source continues to be
difficult to forecast. This is primarily due to the uncertainty of the local power plant's
production along with the continuous fluctuation of the price of natural gas. This category will
be watched closely by focusing on the price of natural gas along with consumption.
FY 2014 -15 Unaudited Actual Revenue
FY 2015 -16 Adopted Budget
FY 2015 -16 Yearend Estimate
$2,912,199
$2,400,000
$2,400,000
Interest on Investments for the quarter ending March 31, 2016 is tracking ahead of plan, with
$180,567 in General Fund income received year -to -date net of bank fees. This revenue stream is
expected to exceed budgeted revenues by $30,000.
FY 2014 -15 Unaudited Actual Revenue $ 484,283
FY 2015 -16 Adopted Budget $ 312,400
FY 2015 -16 Yearend Estimate I $ 342,400
The annual Tax Resolution Agreement (TRA) payment is based on the prior years' actual tax
revenue received from Chevron and a "true -up" payment paid in the following fiscal year once
the actual tax revenues have been reconciled. There is an established annual tax ceiling for
Chevron that is increased each year by the CPI -U. FY 14/15 actual Chevron taxes paid to the
City ended higher than anticipated therefore the 15/16 payment received was lower than the
estimated adopted budget amount.
FY 2014 -15 Unaudited Actual Revenue $4,843,034
FY 2015 -16 Adopted Budget $5,500,000
C
FY 2015 -16 Yearend Estimate 1 $5,381,035
Estimated Revenues and Expenditures for Enterprise Funds
Water Utility Enterprise Fund
Revenues in the Water Utility Fund are on track to meet budget at yearend. Expenditures are
anticipated to be in line with Budget.
Revenues
FY 2014 -15 Unaudited Actual Revenue
$27,965,800
FY 2015 -16 Adopted Budget
$29,276,400
FY 2015 -16 Yearend Estimate
$29,276,400
Expenditures
FY 2014 -15 Unaudited Actual Expenditures
$25,033,059
FY 2015 -16 Adopted Budget
$29,176,900
FY 2015 -16 Yearend Estimate
$29,176,900
Sewer Utility Enterprise Fund
Revenues in the Sewer Utility Fund are 20.5% or $315,571 higher than the same period last year
with 52.65% of budget received. The revenue source is expected to be $225,000 higher than
budget. Expenditures are anticipated to be in line with Budget.
Revenues
FY 2014 -15 Unaudited Actual Revenue
$3,764,500
FY 2015 -16 Adopted Budget
$3,515,400
FY 2015 -16 Yearend Estimate
$3,740,400
Expenditures
FY 2014 -15 Unaudited Actual Expenditures
$3,276,416
FY 2015 -16 Adopted Budget
$8,571,800
FY 2015 -16 Yearend Estimate
$8,571,800
The Golf Course Fund is currently at 31.35% of budget received. Revenue at the Golf Course
typically increases in the spring and summer but most likely this fund will end the year below
adopted budget.
7
63
Discussion on Special Revenue Funds
The funds under the Special Revenue Funds are primarily from Federal, State, and County
programs such as: Traffic Safety, State Gas Tax, Asset Forfeiture, Measure R, Prop A & C,
CDBG, COPS, and Federal and State Grants. These funds are on track to meet budget at yearend,
with the exception of the Asset Forfeiture Fund. The City has received $500,000 in Asset
Forfeiture revenue in the month of April that was not anticipated in the budget.
Asset Forfeiture
FY 2014 -15 Unaudited Actual Revenue
$343,243
FY 2015 -16 Adopted Budget
$175,000
FY 2015 -16 Yearend Estimate
$675,000
Discussion on Debt Service Fund
The Debt Service Fund (Fund 202) records the City's facility lease activity for the Douglas
Street Gap Closure. The revenue for this fund comes from traffic mitigation fees. The General
Fund does not support any revenue or expenditure activity within the Debt Service Fund. This is
not On September 1, 2005, the City entered into a facility lease agreement with the California
Infrastructure and Economic Development Bank ( CIEDB) whereby CIEDB issued bonds in the
amount of $10,000,000 to finance the Douglas Street Gap Closure Project. The City will make
lease payments over a 30 -year period, which began on February 1, 2006. The interest rate on the
bonds is 2.87% per annum. Payments on the lease obligation are due February 1 and August 1 of
each year. In the current year budget, the expenditure for the interest and principal payments
were not budgeted. This was an oversight and needs to be corrected. The required budget for FY
2015 -16 is $244,800 for interest payments and $291,100 for principal payment. The total of
these payments is $535,900.
FY 2015 -16 Adopted Expenditure Budget
$0
FY 2015 -16 Yearend Estimate
$535,900
Discussion on Internal Service Funds
There are three funds that comprise this category: Equipment Replacement Fund, Liability
Insurance Fund and the Workers Comp Insurance Fund. These funds are on track to meet budget
at yearend. The Workers Comp Insurance Fund is anticipated to end the fiscal year with a
negative fund balance of $274,488. This is predicated on budgeted claims expenditures in the
amount of $1,641,000. For the first half of the fiscal year, only $490,306 or 29.9% of the claims
budget has been expensed. Staff will continue to monitor and report any changes during the 3rd
quarter financial review.
Fiscal Year 2015 -2016 Midyear Reviefv of General Fund I:ync'nrliiarres:
The General Fund expenditures through March 31, 2016 are illustrated in the following table:
Table 2 — General Fund Expenditures by Department — Current Year Compared to Prior Year
Department
Midyear
14115
Midyear
15116
March
2016 vs.
March
2015
% change
Elected Officials
399,135
498,268
99,133
24.8%
Administrative Support
2,102,290
1,883,581
- 218,709
-10.4%
Police
9,150,695
8,745,372
- 405,323
-4.4%
Fire
7,136,027
6,569,134
- 566,893
-7.9%
Communication Centers
705,739
654,534
- 51,205
-7.3%
Planning & Building Safety
1,079,757
1,246,506
166,749
15.4%
Public Works
2,627,332
3,034,988
407,656
15.5%
Recreation and Parks
2,289,883
2,025,600
- 264,283
-11.5%
Library
1,008,189
1,081,538
73,349
7.3%
Non - department
3,317,783
2,592,412
- 725,371
-21.9%
Transfers to Other Funds
2,288,208
700,000
- 1,588,208
-69.4%
Total General Fund
32,105,038
29,031,933
- 3,073,105
-9.6%
Expenditures
lidyear C'orrr )arison — FY 2015 v. FY 2016:
In comparing between the first half of the year between current and prior years, the major
differences are due to the following:
- Transfers out of the General Fund decreased $1.59 million over the same period last year.
This is due to only two transfers in the adopted budget for the current year:
o $500,000 annual transfer to the Economic Uncertainty;
o An additional $200,000 annual transfer to the Equipment Replacement
- Elected Officials increased by $99,133 or 24.8% over the same period last year. This is due
to election expenditures in the current year related to the April elections.
- Non - department decreased by $725,371 or 21.9% over the same period last year. This
decrease is primarily due to:
o A decrease in annual leave cash outs and cash outs for unexpected retirements and
6
65
resignations.
o In the current year budget, the annual cost of the Siemens Industry contract for
HVAC control services and automation performed citywide was excluded from the
budget. The amount required to be budgeted is $42,337.
- Public Works shows an increase over the same period last year of 15.5% or $407,656 due to
an increase in filled staff positions compared to vacant positions in the prior year and
contracted services during the first half of the fiscal year.
- Administrative Support shows a decrease over the same period last year by 10.4% or
$218,709 primarily due to:
o Several vacancies in Finance and Human Resources in the current year. These
positions are currently being filled by contracted staff which will result in an increase
to annual professional contract costs in the current year.
The Police Department is showing a decrease over the same period last year by 4.4% or
$405,323. The decrease is from vacant positions for the first half of the year. While the PD
budget is trending under budget, there are two budgeted items that need to be adjusted:
ammunition and uniform allowance /replacement. The ammunition budget for the current
year was captured at $5,900. This was an error and needs to be increased to $67,000. The
uniform allowance /replacement was under budgeted and needs to be increased by $49,781.
The total budget adjustments to increase expenditures are $110,881. The total budget
savings for vacant positions, less additional overtime for coverage, is estimated at
approximately $159,780. This results in an overall net budget savings of $48,899.
The Fire Department shows a decrease over the same period last year of 7.9% or $566,893
due to savings from the agreed upon MOU that was effective January 1, 2016 and due to
vacant funded positions. As a result of the MOU agreement, there will be savings realized in
the current year, less uniform allowance /replacement that was under budgeted, in the
estimated amount of $118,500.
Library Department shows an increase over the same period last year of 7.3% or $73,349,
primarily due to a filled position that was vacant the prior year.
The projected General Fund expenditures at yearend are currently estimated to come under
budget by $150,062. Staff will continue monitoring expenditures and will report any changes to
the yearend estimates during the third quarter review.
10
...
Table 3 — Fiscal Year 2015 -2016 Bud et v. Projected Year -end — General Fund
Department
Current
Year
Through
313112016
FY 2015-
2016
Adopted
Budget
% of
Budget
Sent
FY 2015-
2016 Year-
end
Estimate
Variance
Over/
(Under) FY
2015 -2016
Budget
Elected Officials
498,268
1,040,700
47.9%
1,040,700
0
Administrative Support
1,883,581
4,216,900
44.7%
4,191,900
- 25,000
Police
8,745,372
20,129,100
46.0%
20,080,201
- 48,899
Fire
6,569,134
14,533,000
45.2%
14,314,500
- 118,500
Communication Centers
654,534
1,457,700
44.9%
1,457,700
0
Planning & Building
1,246,506
2,842,500
43.9%
2,842,500
0
Safety
Public Works
3,034,988
6,911,300
43.9%
6,911,300
0
Recreation and Parks
2,025,600
5,328,000
38.0%
5,328,000
0
Library
1,081,538
2,095,000
51.6%
2,095,000
0
Non - department
2,592,412
5,122,860
50.6%
5,165,197
42,337
Transfers out
700,000
700,000
100.00%
700,000
0
Total General Fund
$29,031,933
64,377,060
45.1%
64,226,998
- 150,062
Expenditures
In summary, General Fund revenues at midyear are tracking slightly below the same period last
year and staff is currently estimating revenues to end the year slightly above budget by $490,065.
The development agreement for Raytheon stipulates a payment of $500,000 for the current fiscal
year. This was received in April and accounts for the projected revenue surplus. Currently,
expenditures are at 45.1% of budget and are estimated to end the year approximately $150,062
below the budgeted amount.
Table 4 — Fiscal Year 2015 -2016 Budget v. Projected Yearend — Revenues and Expenditures for
General Fund
As a comparison, below is a table reflecting General Fund activity for FY 2014 -15.
11
67
FY 2015 -16
FY 2015 -16
GENERAL
ADOPTED
PROJECTED
FUND
BUDGET
YEAREND
VARIANCE
Revenue
$ 63,238,130
$ 63,728,195
$ 490,065
Expenditures
64.377,060
64,226,998
(150,062)
Summary
(1,138,930)
(498,803)
As a comparison, below is a table reflecting General Fund activity for FY 2014 -15.
11
67
Table S — Fiscal Year 2014-2015 Adopted Budget v. Unaudited Yearend — Revenues and Expenditures
for General Fund
Table 6 below represents the City's General Fund balance and reserves. The fund balance is the
amount of financial resources immediately available for use. The City also has a Council policy
to maintain a 19% general fund financial reserve for the current year. The additional fund
balance that is not designated towards the required 19% reserve is referred to as "undesignated"
fund balance. These undesignated funds can be used at the discretion of City Council.
As a result of the Raytheon payment of $500,000, a reduction of budgeted expenditures in the
amount of $143,500 and a positive revision to the beginning fund balance for FY 2015 -16 in the
amount of $31,152, the undesignated General Fund balance for FY 2015 -16 is projected to be
$706,184. Staff would like to discuss with the City Council potential options of designating these
funds.
Table 6 — Fund Balance and Reserves for Fiscal Year 201 5 -2016 Year -end — General Fund
Fund Balance & Reserve
FY 2014 -15
Unaudited
FY 2014 -15
Revised Year -End
Est. FY 2015 -16
GENERAL
FY 2014 -15
Unaudited
13,282,926
FUND
BUDGET
YEAREND
VARIANCE
Revenue
$ 60,642,700
$ 64,316,920
$ 3,674,220
Expenditures
64,043,100
64,382,192
339,092
Table 6 below represents the City's General Fund balance and reserves. The fund balance is the
amount of financial resources immediately available for use. The City also has a Council policy
to maintain a 19% general fund financial reserve for the current year. The additional fund
balance that is not designated towards the required 19% reserve is referred to as "undesignated"
fund balance. These undesignated funds can be used at the discretion of City Council.
As a result of the Raytheon payment of $500,000, a reduction of budgeted expenditures in the
amount of $143,500 and a positive revision to the beginning fund balance for FY 2015 -16 in the
amount of $31,152, the undesignated General Fund balance for FY 2015 -16 is projected to be
$706,184. Staff would like to discuss with the City Council potential options of designating these
funds.
Table 6 — Fund Balance and Reserves for Fiscal Year 201 5 -2016 Year -end — General Fund
Fund Balance & Reserve
FY 2014 -15
Unaudited
Adopted Budget
FY 2015 -16
Revised Year -End
Est. FY 2015 -16
Beginning Fund Balance
13,591,466
13,251,774
13,282,926
Revenues ( +)Over / (- )under
Expenditures Adjustment
- 308,540
- 1,138,930
- 498,803
Ending Fund Balance
Undesignated
13,282,926
12,112,844
14,203
12,784,123
2,804,500
713,993
Designated Financial
Reserves 19%
10,478,426
12,098,641
12,070,130
Richmond Street Rehabilitation Project
At its March 1, 2016 meeting, City Council awarded a Public Works contract to Sully- Miller for
the Richmond Street Rehabilitation Project and directed staff to eliminate structured soil, paver
detail and pedestrian lighting from the project for an overall savings of $334,000. Staff was also
directed to bring these cuts back to City Council on April 19, 2016 for reconsideration as part of
the mid -year budget presentation. Please note that the construction start date is imminent
pending direction from City Council on whether to add back in any of the items eliminated. As a
recap, the following items are under consideration:
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$135,000 Structured Soil
$50,000 Tree Well Paver Detail
$90,000 Pedestrian Lighting Fixtures
$59,000 Pedestrian Lightning Conduit (backbone)
$334,000
Staff has not yet issued a Notice to Proceed or negotiated a change order to remove these items
due to the procedural complications surrounding preservation of bid rate for these items. Once
bid items are eliminated from a contract, the contractor is no longer obligated to provide the
original bid price should they be added back in. Thus, in the interest of financial prudence, staff
has delayed contract negotiations in order to preserve the best possible price for the project items
that ultimately move forward. Staff recommends that City Council provide final direction to
staff on which items listed above, if any, should be reintroduced to the project.
2015/16 Annual Sidewalk Curb and Gutter Restoration Program
Recall that at its August 31, 2015 Strategic Planning Session, City Council discussed reallocating
parking -in -lieu fees toward the Richmond Street project, with the goal of freeing up at least
$200,000 for the FY 15/16 Annual Sidewalk Curb and Gutter Restoration program. Given the
bids received for the Richmond Street Project, staff recommended on March 1, 2016 that
consideration be deferred until presentation of the mid -year budget in April. Given budget
projections for the FY 2015/16 year -end estimates listed above, staff is seeking direction from
City Council on whether to authorize a transfer of $200,000 from the General Fund to the CIP to
continue sidewalk, curb and gutter repairs under the current low bid contract.
Measure B
On April 12, 2016, registered voters in the City of El Segundo will have the opportunity to vote
for Measure B. The Measure addresses the Transient Occupancy Tax rate assessed on lodging
within the City. The current rate is assessed at 8 %. Measure B, if passed, would raise the rate
from 8% to 12% effective on June 1, 2016. If Measure B passes the annual additional General
Fund revenue is expected to be $3,200,000 based on current rates and room count. The additional
revenue that would be anticipated for FY 2015 -16, June 1 through September 30, would be
$1,018,000. These are additional funds that the City Council would be able to use towards
successful implementation of policy objectives and goals of the Council.
Conclusion
At the Department level, the City is spending according to plan. This is reflected in the FY 2014-
15 budget to unaudited yearend results of $64,043,100 compared to $64,382,192, respectively.
This is a variance of less than 0.5 %. As well as in the current year budget to projected yearend
for a difference of $150,062. This represents spending that is in line with the budgetary plan.
Revenues are tracking well in line with budget, even with the volatility of certain revenues
sources that are tied to economic activity or commodity prices such as gasoline and natural gas.
The end result of adhering to the spending plan and closely monitoring revenues, as well as
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seeking economic development opportunities, is an original adopted budget for FY 2015 -16 that
had an undesignated fund balance reserve of $14,203 and the revised yearend projection of
$713,993. This is achieved while maintaining a designated 19% reserve in the General Fund.
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