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HomeMy WebLinkAbout10 - NB-2 - FY2020-21 Mid Year Budget Update and Adj - 2/16/20211 CITY COUNCIL AGENDA REPORT MEETING DATE: February 16, 2021 ITEM NUMBER: NB-2 SUBJECT: FISCAL YEAR 2020-2021 MID-YEAR BUDGET UPDATE AND ADJUSTMENTS DATE: February 10, 2021 FROM: CAROL MOLINA, FINANCE DIRECTOR FOR FURTHER INFORMATION CONTACT: CAROL MOLINA, FINANCE DIRECTOR (714) 754-5243 RECOMMENDATION: The Finance Department is undergoing the mid-year budget review for Fiscal Year 2020-21 that began on July 1, 2020. Departments have requested adjustments to their budgets to ensure there are sufficient appropriations for essential programs; expend actual revenue that has been received or awarded in grants or restricted funds; and, make minor adjustments to staffing to better address workload demands and Council priorities. 1. Approve FY 2020-21 Budget Adjustments in the General Fund, Gas Tax Fund and multiple Special Revenue and restricted Funds (Attachment 1). 2. Approve FY 2020-21 Staffing Realignments in multiple Departments Citywide (Attachment 2). a. Approve Resolution No. 2021-xx, amending Resolution No. 17-14 to revise the pay ranges for the Chief Plans Examiner classification and Network Systems Administrator classification (Attachment 2a). b. Approve Resolution No. 2021-xx, amending Resolution No. 17-18 to revise the pay range for the Computer Operations/Networking Supervisor classification (Attachment 2b). c. Approve Resolution No. 2021-xx, amending Resolution No. 17-26 by removing the Information Technology Manager classification from the Division Manager unit and amending Resolution No. 17-27 by establishing the Information Technology Manager classification in the Confidential Management unit and establishing the pay range for said classification (Attachment 2c). 3. Authorize the City Manager, or her designee, to work with the City Attorney’s Office to execute any and all documents necessary to acquire and finance a new ladder truck for the Fire and Rescue Department approved in the FY 2020-21 Budget. 2 BACKGROUND: The worldwide coronavirus pandemic (COVID-19) is unprecedented in its size, scope and impact. With over 27 million people infected and 470,660 deaths in the United States as of February 9, 2021, the impact of this infectious and potentially deadly disease is unmatched. The increase in COVID-19 cases in November and December of 2020 led to renewed measures to control the virus, including additional restrictions imposed. Additionally, the impact of COVID-19 on the global economy continues and has reached 10.1 million Americans resulting in an unemployment rate of 6.7 percent. A second Regional Stay at Home Order was issued in California on December 3, 2020, triggered by regions having less than 15 percent Intensive Care Unit (ICU) capacity. All Southern California regions were affected by the Stay At Home Order, including areas that fell to zero percent capacity. This Order was lifted on January 25, 2021 as projected ICU availability over four weeks in all regions rose to over 15 percent, triggering the State to announce the return to a color-tiered system of county-by-county restrictions. Orange County is currently in the purple tier, which is the most restrictive tier. To help address the revenue loss experienced by businesses and additional expenses incurred by municipalities to address the pandemic, numerous pieces of legislation were introduced in 2020 at the State and Federal levels to help offset some of the fiscal impacts, such as the Federal CARES Act. However, the fiscal stimulus packages rolled out to date do not address in full the revenue losses or increased costs that states, counties, and municipalities are experiencing. In January, a new proposal submitted by President Biden includes a $1.9 trillion Economic Relief Plan that contains $350 billion in aid to state and local governments. The relief effort is designed to assist with the budget gaps created by the crisis and its economic shutdowns. The state and local aid is part of a broader package, which also includes money for extended unemployment insurance, vaccine distribution, school reopening plans, public transit, federal technology programs, and an expansion of stimulus checks. While addressing fiscal challenges in the last quarter of FY 2019-20, the City immediately implemented cost containment measures and developed a financial plan to ensure fiscal sustainability. As a result, the FY 2019-20 audited financial statements resulted in a balanced, albeit small positive year-end result of approximately $170,000. Moreover, the current FY 2020-21 Budget was reduced to address the fiscal impacts of the pandemic, and adopted by the City Council on June 9, 2020, for the fiscal year beginning July 1, 2020. Since adoption, the Finance Department has been closely monitoring the City’s revenues and expenses to ensure fiscal sustainability. At fiscal mid-year, department staff compiled recommended budget adjustments to cover additional costs and/or provide appropriations necessary to expend funds that have been received for specific purposes. ANALYSIS: The Fiscal Year 2020-21 Budget was adopted by the City Council on June 9, 2020, for the fiscal year beginning July 1, 2020. The Finance Department has compiled recommended budget adjustments to cover additional costs and/or provide appropriations necessary to expend funds that have been received for specific purposes. The City has received revenues or has available fund balances that will support the requested adjustments. In the General Fund, the staff realignment requests can be absorbed within each department’s 3 budget, and the minor adjustments to appropriations are offset by additional revenue received by the City. The Other Funds adjustments will be funded by available revenue or existing fund balances within each distinct fund. GENERAL FUND Over the last year, over 6,870 fire incidents occurred throughout the State (Sandalwood, Saddle Ridge, Kincade, Tick, Getty, and Maria, to a name a few), burning more than 253,321 acres (102,515 hectares) with 732 structures damaged or destroyed and three fatalities. The State of California Fire and Rescue Mutual Aid System coordinates resources from various jurisdictions in California when a local agency is overwhelmed. The Fire Department responded to multiple mutual aid requests throughout California to assist overwhelmed jurisdictions with these fires. To date, the City has received $88,816 in mutual aid cost reimbursements. Staff is requesting appropriation authority as expenses are incurred and reimbursements are received related to mutual aid fire services for a net neutral impact. OTHER FUNDS A technical adjustment is needed to adjust the budget for the Public Services Department to appropriate $438,535 in the Gas Fund to support street sweeping services. During the budget adoption process, street sweeping costs were transferred from the General Fund to the Gas Fund to reduce General Fund spending due to the pandemic. However, due to an administrative oversight the General Fund was reduced but the increased spending in the Gas Tax Fund was not addressed. There is sufficient fund balance in the Gas Fund to support this adjustment and is necessary to maintain core street sweeping services. The City was awarded a CalRecycle Grant of $28,574 to fund recycling efforts. A budget adjustment of a commensurate amount is requested to expend the grant funds received. The City has also received a $50,000 donation from the Costa Mesa Sanitary District to help offset the Permanent Airway Homeless Shelter construction costs. A commensurate budget adjustment is requested in the Capital Fund 401 to expend these funds. The Police Department was awarded $55,550 from the Orange County Corrections Partnership for the Public Safety Realignment Program (AB109) grant to purchase body worn cameras. Staff is requesting appropriation of the award amount. PROPOSED STAFFING REALIGNMENTS Police Department The Police Department has 213 full-time, 35 part-time, and 11 contract employees and an annual operating budget that represents approximately 35 percent of the total General Fund budget. Staff requests to downgrade one (1) full-time Police Sergeant to a Police Officer position to address the department’s current staffing and organizational structure needs; and upgrade one (1) Police Sergeant to a Police Lieutenant position, to meet management needs as the Field Operations Administration Bureau Commander with direct oversight of the department’s K-9 Unit, Field Training Program, Community Services Specialists, Front Desk operations, fleet management, and Patrol Services’ administration, shift deployments, and scheduling. 4 The proposed staffing realignment has a minimal General Fund fiscal impact of approximately $5,145, which will be absorbed within the Department’s budget (Attachment 2). There is no change in the total full-time employee count in the Table of Organization. City Council Department The City Council Department’s duties include establishing goals and policies, enacting legislation, adopting the City’s operating and capital budget, and appropriating the funds necessary to provide services to the City’s residents, businesses and visitors. Staff requests to consolidate two (2) part-time Management Aide (Confidential) positions to one (1) full- time Management Analyst (Confidential) position. This will reduce staff turnover as many part time employees will ultimately seek full time employment. Consolidating two part time positions into one full time position will also increase staff productivity and efficiency as it provides more consistent coverage to the City Council while also addressing constituent’s needs. This change will also help to provide the department with necessary analytical support given the full transition to six districts in the November 2020 election. This proposed staffing change has a minimal General Fund fiscal impact of approximately $7,433, which will be absorbed within the budget (Attachment 2). The reduction of two (2) part-time positions offsets the increase of one (1) full-time employee position for a net zero impact to the Table of Organization. City Manager Department The City Manager’s Office is currently working on a number of high priority projects, including addressing the COVID-19 global pandemic and the ensuing fiscal crisis. The City Manager’s Office oversees various high priority projects that require research and analysis, responsiveness to the City Council and public, and support to the City’s ten departments. Many of these duties are required by statute, regulation or policy, while many others address City Council and community priorities. To help ensure more timely completion of these projects, additional resources are necessary. The City Manager’s Office currently has a vacant part-time (0.5) Management Analyst (Confidential) position. The department is requesting this position be reclassified to a full-time Management Analyst (Confidential) position to enhance productivity and reduce turnover. The proposed staffing realignment has a minimal General Fund fiscal impact of approximately $20,006, which will be absorbed within the budget (Attachment 2). The reduction of one (0.5) part-time position will be partially offset by an increase of one (1.0) full-time employee, increasing the total count by 0.5 in the Table of Organization. Development Services Department The Development Services Department’s Building Division provides plan review, permitting and inspection services to ensure compliance with mandatory state building codes and standards and municipal ordinances related to the construction, modification, use, and occupancy of private and public buildings and properties. Staff requests to upgrade one (1) full-time Building Inspector to a Senior Building Inspector position to provide skilled inspection work in securing compliance with all aspects of building, zoning, and municipal codes and regulations governing new and existing construction involving any combination of the following: installation and operation of electrical systems and allied equipment; plumbing, heating, and mechanical installations; building construction, alteration, repair; and housing compliance investigation. 5 The Department is also requesting to add one (1) Grant Administrator position to plan, oversee, and implement grant-funded programs, monitor grant performance, ensure compliance, and meet complex governmental reporting requirements. These functions are currently performed primarily by an outside contractor, for which the City spends approximately $90,000 per year. This contractor provides this critical service for several Orange County Cities, including Costa Mesa. To help develop the in-house institutional knowledge and expertise associated with over $1 million in annual Federal grants to the City and reduce reliance on contractors for ongoing day-to-day work, staff requests the transition of this position to an in-house Grant Administrator that will work closely with Federal and State grantor agencies to maximize grant opportunities and funding for the City. A budget adjustment of $35,518 is requested which can be covered in part by administrative costs allowed by Federal and other grant funds. There is a net change of 1.0 FTE in the Table of Organization for this adjustment. Further, a Chief Plans Examiner position’s salary range is requested to retroactively adjust/update to address a significant compaction issue resulting from an updated Plan Check Engineer salary approved in July 2019 (Attachment 2a). The proposed change of $43,174 reflects both the retroactive FY 2019-20 and current year budget impact which will be absorbed within the budget (Attachment 2). Information Technology Department The Information Technology Department is responsible for network administration; software development and installation; maintenance of hardware and software, including upgrades and replacements; database management; mobile services; and the support and oversight of all technology-related products and services for all departments, including the safety departments. To attract quality applicants for the Information Technology Department’s critical positions, City Council approval is requested to update the salary range for the vacant Information Technology Manager position created in 2008 (Attachment 2c); adjust the salary range for the Network Administrator positions (3.0 FTEs) to reflect the market rate of pay as allowed for in the City’s Memorandum of Understanding with the CMCEA (Attachment 2a); and, adjust the Computer Operations/Networking Supervisor (Attachment 2b) positions. The Information Technology Department’s proposed staffing realignments are partially funded by the General Fund and IT Replacement Fund (Fund 603), and have a minimal fiscal impact of approximately $5,644 in the General Fund and $24,277 in IT Replacement Fund (Attachment 2). There is no change in the total FTE count in the Table of Organization. FIRE TRUCK ACQUISITION AND LEASE AGREEMENT The FY 2020-21 Adopted Budget includes an estimated debt service payment for the acquisition of one fire ladder truck. Staff is requesting City Council approval to enter into a purchase agreement of one (1) Pierce 102’ Heavy Duty Ladder with 500 GPM pump mounted on a Pierce Arrow XT custom chassis with South Coast Fire Equipment, Inc., and authorize the City Manager, or her designee, to enter into any and all documents necessary to finance the purchase of the fire truck to enhance and modernize public safety and emergency response. The annual debt service payment for the lease of the fire truck is included in the FY 2020- 21 Non-Departmental budget. Interest rates fluctuate on a daily basis and final lease financing rates and costs will be determined prior to the close of escrow. Staff recommends the lease purchase of the fire truck plus required equipment and fixtures totaling $1.5 million 6 through a ten-year lease agreement. Based on the current estimated interest rate of 1.66 percent, the annual debt service payment is estimated at $161,015. Please note the interest rate may be subject to change based on market conditions at the time of close of escrow. City Council authorization is requested to authorize the City Manager, or her designee, to work with the City Attorney to enter in to a Master Lease Agreement to finance the purchase of the new apparatus in terms favorable to the City. The new fire truck is expected to be delivered to the City in late 2022 given the 18-month time required to construct an apparatus of this type. ALTERNATIVES CONSIDERED: Do not approve the recommended action(s) and direct staff accordingly. FISCAL REVIEW: 1. A General Fund budget adjustment is requested for the Fire Department ($88,816); 2. The Police Department is requesting $55,550 from the Orange County Corrections Partnership for the Public Safety Realignment Program (AB109) Grant; and 3. The Public Services Department is requesting $438,535 in the Gas Tax Fund; $28,574 for the CalRecycle Grant; and $50,000 in the Capital Improvement Fund. 4. The proposed staffing realignments have a combined total General Fund impact of $45,883, Federal Funds of $35,518, and $24,227 in the Information Technology Fund which will be absorbed within the adopted budget. 5. The Fire Truck Purchase will total $1.5 million and will be paid over a 10 year term through a Master Lease Agreement reflecting an estimated 1.6 percent interest rate through 2028. LEGAL REVIEW: The City Attorney has reviewed and approved this report as to form. CITY COUNCIL GOALS AND PRIORITIES  Recruit and retain high quality staff  Achieve long-term fiscal sustainability  Strengthen public safety and keep the community safe  Maintain and enhance the City’s infrastructure, facilities, equipment and technology CONCLUSION: There are sufficient revenues, cash, and/or fund balances to support the above adjustments and staff realignments. 7 CAROL MOLINA Finance Director KIMBERLY HALL BARLOW City Attorney Attachments: 1. FY 2020-21 Mid-Year Budget Adjustments 2. FY 2020-21 Staffing Realignments a. Resolution No. 2021-xx, amending Resolution No. 17-14 to revise the pay ranges for the Chief Plans Examiner classification and Network Systems Administrator classifications. b. Approve Resolution No. 2021-xx, amending Resolution No. 17-18 to revise the pay ranges for the Computer Operations/Networking Supervisor classification. c. Approve Resolution No. 2021-xx, amending Resolution No. 17-26 by removing the Information Technology Manager classification from the Division Manager unit and amending Resolution No. 17-27 by establishing the Information Technology Manager classification in the Confidential Management unit and establishing the pay range for said classification. Fiscal Year 2020-21 Proposed Mid-Year Budget Adjustments Appropriation Increase Fund No Fund Name Department Amount 101 General Fund Fire 88,816$ General Fund Subtotal 88,816 201 Gas Tax Public Services 438,535 231 Grant Fund - State Public Services 28,574 232 Grant Fund - Other Police 55,550 401 Capital Improvement Fund Public Services 50,000 Other Funds Subtotal 572,659 TOTAL 661,475$ ATTACHMENT 1 Fiscal Year 2020-21 Proposed Staffing Realignment Fund Fund Name Department Type Position FTE Amount 101 General Fund Police Full-Time Police Sergeant (2.0) (145,687)$ 101 General Fund Police Full-Time Police Officer 1.0 64,221 101 General Fund Police Full-Time Police Leiutenant 1.0 86,612 Subtotal Police - 5,145 101 General Fund City Council Part-Time 2 Part-Time Management Aide (Confidential)(1.0) (25,145) 101 General Fund City Council Full-Time Management Analyst (Confidential) 1.0 32,578 Subtotal City Council - 7,433 101 General Fund Information Technology Full-Time Computer Operations/Networking Supervisor - Adjustment 5,644 Subtotal Information Technology - 5,644 101 General Fund City Manager Part-Time 1 Part-Time Management Aide (Confidential)(0.5) (12,572) 101 General Fund City Manager Full-Time Management Analyst (Confidential) 1.0 32,578 Subtotal City Manager 0.5 20,006 101 General Fund Development Services Full-Time Chief Plan Examiner - Market Adjustment 4,480 General Fund Development Services Full-Time Building Inspector (1.0) (33,966) 101 General Fund Development Services Full-Time Senior Building Inspector 1.0 37,142 Subtotal Development Services - 7,656 General Fund 0.5 45,883$ 230 Federal/Other Funds Development Services Full-Time Grant Administrator 1.0 35,518 603 IT Replacement Fund Information Technology Full-Time Vacant Information Technology Manager - Market Adjustment 9,955 603 IT Replacement Fund Information Technology Full-Time Network Administrator - Market Adjustment (4)14,322 Other Funds 1.0 59,796$ ATTACHMENT 2 RESOLUTION NO. 2021-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING RESOLUTION NO. 17-14 TO REVISE THE PAY RANGES FOR THE CHIEF PLANS EXAMINER CLASSIFICATION AND NETWORK SYSTEMS ADMINISTRATOR CLASSIFICATION THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA HEREBY FINDS, DETERMINES, AND DECLARES AS FOLLOWS: WHEREAS, on March 7, 2017, the City Council adopted Resolution No. 17-14, revising the pay ranges for job classifications represented by the Costa Mesa City Employees Association, effective July 7, 2019; and WHEREAS, the City Council desires to amend Resolution No. 17-14 to revise the pay ranges for the Chief Plans Examiner; and WHEREAS, the City Council further desires to rename the existing “Network Administrator” job classification as the “Network Systems Administrator” classification and to revise the pay ranges for said classification. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows: SECTION 1. Section 1 of Resolution No. 17-14 is hereby amended to reflect the revised salary ranges and monthly rates of pay specified below for the Chief Plans Examiner, effective July 7, 2019. Class Title Salary Grade Step Code Plan 1 2 3 4 5 6 7 0110 Chief Plans Examiner CMC 718 $9,354 $9,822 $10,313 $10,829 $11,370 $11,938 $12,535 Monthly $112,248 $117,864 $123,756 $129,948 $136,440 $143,256 $150,420 Annual Tier 1 $53.97 $56.67 $59.50 $62.48 $65.60 $68.87 $72.32 Hourly 5110 Chief Plans Examiner CM2 718 $8,485 $8,909 $9,354 $9,822 $10,313 $10,829 $11,370 Monthly $101,820 $106,908 $112,248 $117,864 $123,756 $129,948 $136,440 Annual Tier 2 $48.95 $51.40 $53.97 $56.67 $59.50 $62.48 $65.60 Hourly SECTION 2. The existing “Network Administrator” classification is hereby renamed as the “Network Systems Administrator” classification. Attachment 2a SECTION 3. Section 1 of Resolution No. 17-14 is hereby amended to reflect the renamed title classification and to revise salary ranges and monthly rates of pay specified below for the Network Systems Administrator, effective November 8, 2020. Class Title Salary Grade Step Code Plan 1 2 3 4 5 6 7 0041 Network Systems CMC 631 $7,603 $7,983 $8,382 $8,801 $9,241 $9,703 $10,188 Monthly Administrator $91,236 $95,796 $100,584 $105,612 $110,892 $116,436 $122,257 Annual Tier 1 $43.86 $46.06 $48.36 $50.78 $53.31 $55.98 $58.78 Hourly 5041 Network Systems CM2 631 $6,896 $7,241 $7,603 $7,983 $8,382 $8,801 $9,241 Monthly Administrator $82,752 $86,892 $91,236 $95,796 $100,584 $105,612 $110,892 Annual Tier 2 $39.78 $41.78 $43.86 $46.06 $48.36 $50.78 $53.31 Hourly SECTION 4. Except as modified by this Resolution, Resolution No. 17-14 shall remain in full force and effect. PASSED AND ADOPTED this 16th day of February, 2021. ______________________________ Katrina Foley, Mayor ATTEST: APPROVED AS TO FORM: ______________________________ ______________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney 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 is the original of Resolution No. 2021-XX and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 16th day of February, 2021, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 17th day of February, 2021. __________________________ Brenda Green, City Clerk (SEAL) RESOLUTION NO. 2021-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING RESOLUTION NO. 17-18 TO REVISE THE PAY RANGES FOR THE COMPUTER OPERATIONS/NETWORKING SUPERVISOR CLASSIFICATION THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA HEREBY FINDS, DETERMINES, AND DECLARES AS FOLLOWS: WHEREAS, on March 7, 2017, the City Council adopted Resolution No. 17-18, revising the pay ranges for job classifications within the Confidential Employees Unit, effective July 7, 2019; and WHEREAS, the City Council desires to amend Resolution No. 17-18 to revise the pay ranges for the Computer Operations/Networking Supervisor classification. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows: SECTION 1. Section 2 of Resolution No. 17-18 is hereby amended to reflect the revised salary ranges and monthly rates of pay specified below for the Computer Operations/Networking Supervisor, effective November 8, 2020. SECTION 2. Except as modified by this Resolution, Resolution No. 17-18 shall remain in full force and effect. Class Title Salary Grade Step Code Plan 1 2 3 4 5 6 7 0040 Computer Operations/ CON 689 $8,111 $8,517 $8,943 $9,390 $9,859 $10,352 $10,870 Monthly Networking Supervisor $97,332 $102,204 $107,316 $112,680 $118,308 $124,224 $130,438 Annual Tier 1 $46.79 $49.14 $51.59 $54.17 $56.88 $59.72 $62.71 Hourly 5040 Computer Operations/ CO2 689 $7,357 $7,725 $8,111 $8,517 $8,943 $9,390 $9,859 Monthly Networking Supervisor $88,284 $92,700 $97,332 $102,204 $107,316 $112,680 $118,308 Annual Tier 2 $42.44 $44.57 $46.79 $49.14 $51.59 $54.17 $56.88 Hourly Attachment 2b PASSED AND ADOPTED this 16th day of February, 2021. ______________________________ Katrina Foley, Mayor ATTEST: APPROVED AS TO FORM: ______________________________ ______________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney 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 is the original of Resolution No. 2021-XX and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 16th day of February, 2021, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 17th day of February, 2021. ______________________________ Brenda Green, City Clerk (SEAL) RESOLUTION NO. 2021-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING RESOLUTION NO. 17-26 BY REMOVING THE INFORMATION TECHNOLOGY MANAGER CLASSIFICATION FROM THE DIVISION MANAGER UNIT AND AMENDING RESOLUTION NO. 17-27 BY ESTABLISHING THE INFORMATION TECHNOLOGY MANAGER CLASSIFICATION IN THE CONFIDENTIAL MANAGEMENT UNIT AND ESTABLISHING THE PAY RANGE FOR SAID CLASSIFICATION THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA HEREBY FINDS, DETERMINES, AND DECLARES AS FOLLOWS: WHEREAS, on April 18, 2017, the City Council adopted Resolution No. 17-27, revising the compensation plan and salary schedule for job classifications within the Confidential Management Unit; and WHEREAS, the City Council desires to amend Resolution No. 17-26 to remove the Information Technology Manager classification and amend Resolution No. 17-27 to establish and revise the pay range for the Information Technology Manager classification. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows: SECTION 1. Section 1 of Resolution No. 17-26 is hereby amended to remove the Information Technology Manager job classification. SECTION 2. The Information Technology Manager job classification shall be considered a member of the Confidential Management Unit. SECTION 3. Section 2 of Resolution No. 17-27 is hereby amended to add the Information Technology Manager job classification at the salary range and monthly rates of pay specified below, effective February 14, 2021. The monthly rate of pay for individual executives may be anywhere within the monthly minimum and maximum salary step. Class Title Grade Step Code 1 2 3 4 5 6 7 DIVISION MANAGERS IN THE CLASSIFIED SERVICE 0047 Information Technology 741 $9,881 $10,375 $10,894 $11,439 $12,011 $12,612 $13,243 Monthly Manager $118,572 $124,500 $130,728 $137,268 $144,132 $151,344 $158,916 Annual $57.01 $59.86 $62.85 $65.99 $69.29 $72.76 $76.40 Hourly SECTION 4. Except as modified by this Resolution, Resolutions Nos. 17-26 and 17-27 shall remain in full force and effect. Attachment 2c PASSED AND ADOPTED this 16th day of February, 2021. ______________________________ Katrina Foley, Mayor ATTEST: APPROVED AS TO FORM: _____________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney 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 is the original of Resolution No. 2021-XX and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 16th day of February, 2021, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 17th day of February, 2021. __________________________ Brenda Green, City Clerk (SEAL) FISCAL YEAR 2020-21 MID-YEAR PRESENTATION February 16, 2021 Carol Molina Finance Director OVERVIEW FY 2020-21 Adopted Budget General Fund Overview Proposed FY 2020-21 Mid-Year Adjustments Next Steps 2 FISCAL YEAR 2020-21 GENERAL FUND OVERVIEW FY 2020-21 ADOPTED BUDGET GENERAL FUND OVERVIEW No increases in Citywide headcount were included in the budget Staff furloughs of 5% resulting in $3M in cost savings Defunds 14 Full-Time Positions Department reductions of $10.8M Fixed cost increases such as CalPERS of $2.8M and election costs of $320K were included Waives the CAN Ordinance for a year, while still maintaining State and County Maintenance Of Effort requirements for infrastructure Utilizes up to $10.2M in a combination of reserves and use of capital projects to maintain essential services during COVID-19 pandemic until economy recovers further 4 FY 2020-21 ADOPTED BUDGET RECAP GENERAL FUND ESTIMATES (in millions) Description FY 2019-20 Adopted Budget FY 2020-21 Adopted Budget $ Change % Change Recurring Revenues $140.5M $126.4M ($14.1M)(10.0%) Transfer In-Capital Fund 1.2M (1.2M)(100.0%) Use of Reserves*0.5M 10.2M 9.7M 1,982% Total Sources of Funding $142.1M $136.6M ($5.6M)(3.9%) Total Expenses ($142.2M)($136.6M ($5.6M)(3.9%) Surplus/(Challenge)--- 5 *Currently comprised of $6M in CIP project deferrals approved by City Council and $4.2M from reserves. FY 2020-21 GENERAL FUND EXPENDITURES (IN MILLIONS) Category Adopted FY 20-21 YT Dec Actuals Projected FY 20-21* Difference Salaries & Benefits $96.3 $54.8 $93.4 $2.9 Operating 36.2 14.2 34.6 1.6 Subtotal $132.5 $69.0 $128.0 $4.5 Transfers Out: - Capital Improvement 2.2 1.1 2.2 - - IT Replacement 1.9 1.0 1.9 - - Small Business Grant 2.0 (2.0) - Funding of Disaster Fund 2.5 (2.5) Total Expenditures $136.6 $71.1 $136.6 - 6 *Estimates only, subject to change FY 2020-21 GENERAL FUND OVERVIEW (IN MILLIONS) Category Adopted FY 20-21 YT Dec Actuals Projected FY 20-21* Difference Property Taxes $44.2M $17.9M $46.3M $2.1M Sales Tax 54.3 19.7 54.3 - TOT (hotel tax)4.8 1.7 4.0 (0.8) Other Revenues 23.1 10.5 23.1 - Subtotal $126.4M $49.8M $127.7M $1.3M Approved Use of Reserves 4.2 6.2 2.0 Deferral of Capital Projects 6.0 2.2 (3.8) Total Funding Sources $136.6 $49.8 $136.1 ($0.5) Expenditures ($136.6)$71.1 ($136.1)$0.5 7 *Estimates only, subject to change FY 2020-21 HIGHLIGHTS Maintains the approved use of $4.2 million of Disaster Recovery/Emergency Reserves Frees up the Capital Project funding set-aside by $3.8 million Achieved budgeted vacancy savings year-to-date to fund the 14 full-time positions defunded 8 FISCAL YEAR 2020-21 ALL FUNDS MID-YEAR ADJUSTMENTS FY 2020-21 GENERAL FUND MID-YEAR ADJUSTMENTS Fire Department Appropriate year-to-date expenses incurred for providing fire mutual aide assistance; reimbursable by the State of California Fire and Rescue Mutual Aid System Adjustment is net cost neutral 10 FY 2020-21 OTHER FUNDS MID-YEAR ADJUSTMENTS Police Department Increase $55,550 in the AB 109 Grant Fund to purchase body worn cameras Public Services Department Appropriate of $438,535 for citywide street sweeping costs reallocated from the General Fund due to COVID pandemic Recognize $28,574 receipt towards California recycling-related purchases in the State Grant Fund Appropriate $50,000 received from the Costa Mesa Sanitary District for Homeless Shelter construction in the Capital Improvement Fund 11 PROPOSED STAFFING REALIGNMENTS 12 *Amount represents estimated pro-rated cost for FY 2020-21; impacts are absorbed by the amended budget. PROPOSED STAFFING REALIGNMENTS 13 *Amount represents estimated pro-rated cost for FY 2020-21; amounts absorbed by the amended budget HIGHLIGHTS FY 2019-2020 essentially balanced at 99.9% of budget Achieved budgeted vacancy savings year-to-date to fund the 14 defunded positions Realignments are cost effective with minor impact Standard & Poor’s Reaffirms Outstanding Rating of AA+ 14 NEXT STEPS Measure Q: Retail Cannabis Tax and Regulation implementation Recommend and implement permit processing fees Recommend and implement retail tax rate up to 7% Staffing Cannabis Tax Administration Monitor FY 2020-21 revenues and expenditures Mid-Year Report to City Council in February 16, 2021 Fire Truck Contract and Lease Financing Agreement FY 2021-22 Proposed Budget Preparation and Presentations Update the City’s Long Term Financial Plan 15 QUESTIONS?