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Home My WebLink About2020-06 - CANORDINANCE NO.2020-06 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING CHAPTER V (FINANCE) OF TITLE 2 (ADMINISTRATION) OF THE COSTA MESA MUNICIPAL CODE TO REVISE ARTICLE 8 (CAPITAL ASSET NEEDS) AND ADD ARTICLE 9 (INFORMATION TECHNOLOGY NEEDS), RELATING TO ANNUAL GENERAL FUND ALLOCATIONS FOR CAPITAL ASSET AND INFORMATION TECHNOLOGY NEEDS WHEREAS, on September 15, 2015, the City Council adopted the Capital Asset Needs (CAN) Ordinance, codified at Sections 2-208 through 2-209.2 of Article 8 (Capital Asset Needs) of Chapter V (Finance) of Title 2 (Administration) of the Costa Mesa Municipal Code; and WHEREAS, pursuant to the CAN Ordinance, "capital expenditures" are defined as "expenditures on fixed assets with value greater than thirty thousand dollars ($30,000.00) that are stationary in nature including, but not limited to: publicly owned or operated streets, highways, bridges, sidewalks, curbs, gutters, alleys, storm drains, trees and landscaping, medians, parks, playgrounds, traffic signals, streetlights, fences, facilities and walls"; and WHEREAS, pursuant to the CAN Ordinance, "capital facilities" are defined as "city owned or operated buildings including, but not limited to: city hall, civic center, police department, old corp yard, new corp yard, fire stations, libraries, and community centers'; and WHEREAS, pursuant to the CAN Ordinance, the City is required to allocate a minimum of five percent (5%) of the annual General Fund revenue to the Capital Expenditures account, and a minimum of one and a half percent (1.5%) of the annual General Fund revenue to the Capital Facilities account, for a combined annual allocation of six and a half percent (6.5%); and WHEREAS, the City Council desires to revise the CAN Ordinance to combine the capital expenditures and capital facilities accounts into one "capital assets" account; and WHEREAS, since January 2018, City staff has worked with ThirdWave Corporation, the City's consultant, to develop a five-year Information Technology Strategic Plan and Roadmap; and WHEREAS, at the January 28, 2020 City Council Study Session, staff and ThirdWave Corporation presented to the City Council the proposed five-year Information Technology Strategic Plan and Roadmap; and WHEREAS, as part of its presentation on January 28, 2020, staff presented to the City Council a proposal, approved by the City's Finance and Pension Advisory Committee, to reduce the 6.5% allocation for capital expenditures and facilities to 5%, and to establish a requirement that 1.5% of annual General Fund revenues be allocated to address the City's technology needs; and WHEREAS, the City Council desires to require that 5% of the annual General Fund revenue be allocated to the capital assets account; and WHEREAS, the City Council desires to establish a requirement that one and a half percent (1.5%) of the annual General Fund revenue be allocated to the Information Technology Replacement Ordinance No. 2020-06 Page 1 of 5 Fund to provide funding for the City's immediate and future information technology needs, including those identified in the Information Technology Strategic Plan; and WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Amendments to Article 8 of Chapter V of Title 2. Sections 2-208 (Definitions), 2-209 (Reserve requirement), 2-209.1 (Limited use), and 2-209.2 (Emergency exception) of Article 8 (Capital Asset Needs) of Chapter V (Finance) of Title 2 (Administration) of the Costa Mesa Municipal Code are hereby amended to read as follows: 2-208. Definitions. For the purpose of this article, the following term shall have the following meaning unless it is clear from the context that a different meaning is intended: Capital assets are defined as fixed assets that are stationary in nature including, but not limited to: city owned or operated buildings including, but not limited to: city hall, civic center, police department, old corporation yard, new corporation yard, fire stations, libraries, and community centers, publicly owned or operated streets, highways, bridges, sidewalks, curbs, gutters, alleys, storm drains, trees and landscaping, medians, parks, playgrounds, traffic signals, streetlights, fences, facilities and walls. 2-209. Reserve requirement. The city shall allocate a minimum of five percent (5%) of the annual general fund revenue to the capital assets account. 2-209.1. Limited use. (1) Capital asset funds shall only be used for the construction, replacement, maintenance, improvement, or modification of city owned or operated capital assets as defined in section 2-208, including construction, design, engineering, project management, inspection, and contract administration. Capital asset funds may be applied toward debt obligations created to fund capital assets where the indebtedness originated after October 15, 2015. (2) The use or loan of capital asset funds for a purpose other than those referenced in this section shall require approval of a supermajority vote of the entire city council. 2-209.2. Emergency exception. (1) In the following circumstances, the city need not comply with the requirements set forth in section 2-209, subject to supermajority approval of the entire city council: (a) General fund operating reserve falls below the general fund operating reserve as set forth in section 2-205; or (b) An economic downturn, natural disaster, emergency or other unforeseen circumstances. (2) The exception set forth herein shall require annual supermajority approval of the entire city council. (3) In the event this provision is applied, the city shall develop a plan to replenish the capital Ordinance No. 2020-06 Page 2 of 5 asset funds for the amount exempted. Section 2. Amendment to Chapter V of Title 2. Chapter V (Finance) of Title 2 (Administration) of the Costa Mesa Municipal Code is hereby amended to add a new Article 9 to read as follows: ARTICLE 9. INFORMATION TECHNOLOGY NEEDS 2-209.3. Definitions. For the purpose of this article, the following term shall have the following meaning unless it is clear from the context that a different meaning is intended: Information technology is defined as hardware, software, services, systems and supporting infrastructure to manage and deliver information. 2-209.4. Reserve requirement. The city shall allocate a minimum of one and a half percent (1.5%) of the annual general fund revenue to the information technology replacement fund. 2-209.5. Limited use. (1) The information technology replacement fund shall only be used: (a) To fund the implementation of the city's Information Technology Strategic Plan. (b) For the replacement, maintenance, or improvement of the city's information technology. (c) For staffing to implement subsections (a) or (b). (2) The use or loan of funds from the information technology replacement fund for a purpose other than those referenced in this section shall require approval of a supermajority vote of the entire city council. 2-209.6. Emergency exception. (1) In the following circumstances, the city need not comply with the requirements set forth in section 2-209.4, subject to supermajority approval of the entire city council: (a) General fund operating reserve falls below the general fund operating reserve as set forth in section 2-205; or (b) An economic downturn, natural disaster, emergency or other unforeseen circumstances. (2) The exception set forth herein shall require annual supermajority approval of the entire city council. (3) In the event this provision is applied, the city shall develop a plan to replenish the information technology replacement fund for the amount exempted. Section 3. Environmental Compliance. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines, and the City's environmental procedures, and has been found to be exempt pursuant to Section 15061(b)(3) Ordinance No. 2020-06 Page 3 of 5 (General Rule) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the passage of this Ordinance will have a significant effect on the environment. Section 4. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. Section 5. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Costa Mesa hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. Section 6. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage. Section 7. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law. PASSED AND ADOPTED this 1711 day of March, 2020. ATTEST: Brenda Green, Cit Jerk APPROVED AS TO FORM: Kimberly Hat Barlow, City Attorney Ordinance No. 2020-06 Page 4 of 5 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing Ordinance No. 2020-06 was duly introduced for first reading at a regular meeting of the City Council held on the 31d day of March, 2020, and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council of the City of Costa Mesa held on the 171h day of March, 2020, by the following roll call vote, to wit: AYES: COUNCILMEMBERS: CHAVEZ, GENIS, MANSOOR, MARK, REYNOLDS, STEPHENS,FOLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 18th day of March, 2020. Brenda Green, Uy Clerk Ordinance No. 2020-06 Page 5 of 5