Recommendation to receive and file the Fiscal Year 2013 Year-End Budget Performance Report.  (Citywide)
I didn't mean as a report from financial management with the recommendation to receive and file the fiscal year 2013 year end budget performance report. So moved by Kelly's demotion in a second. Any public comment? Mr. DeLong. Thank you, Mr. Vice Mayor. Hold on just a moment. We're in number 11, is that correct? Yes. Mm hmm. Yeah, I do have concerns regarding this item. I think there's over $7 million of surplus revenue from fiscal year 13. I know that. I would like to see some alternatives for how this money should be spent. It's not the necessarily that I opposed to what the recommendation is, but I'd just like to know what the options are. So I don't know if we want to have an extensive debate this evening or ask staff to come back with several alternatives or I know one of my colleagues mentioned, referring to the Budget Oversight Committee, and I guess I'd be interested in what some of my colleagues had to say before I make a substitute motion. Councilmember Austin. Well, I'll tell you that I am I support the staff recommendation, particularly where it deals with the North Long Beach Library. This is a welcome and and necessary to complete that project. So any anything that would take us outside of that or reappropriate funds from that, that project would be very hurtful for the residents throughout the city and for that particular project in North Long Beach. That North Library is critical to a renaissance that is actually occurring in North Long Beach, the uptown area. It is key to driving economic development and new opportunity for the Atlantic corridor. And so anything that would do anything to to remove funding from from that particular project, I would have a problem with. Councilman Neal. Thank you, Mr. Vice Mayor. I'd like to concur with them. Councilmember Alston. And this is not just a project for North Long Beach. The library is a city. It's a city. Entity. It's going to be one of the premier libraries in the city of Long Beach and also to go along with all of the things that Councilmember Austin has just stated. It's important to the economic ability of this entire city and not just north of Long Beach. Okay. Mr. City, attorney. Vice mayor, members of the council, maybe. Maybe it's my mistake here, but it appears that number 11 is to receive and file the year end budget performance report. And then the next item appears to be what everyone's discussing, the first quarter appropriation and adjustments in accordance with the council policy. Okay. So one item 11. There's there's a motion on the floor. Any other public comment on it or council comment? See. None. So long. We'll get a vote. Give me one moment, if I may. Just a second. I looked at 12, jumped to 12. And I think you'll see the difference for. But I'm also looking at the table, too, where it talks about recommendations for the use of funds available in the general uplands oil funds, FY13, any funds available as project B 3.3 million for the General Fund, 4.5 million for the Upland 12 Fund. I, I think Mr. City Attorney, it's both items. Some of the information is in here but you were correct and it also appears again in agenda item 12. If I can clarify the the item 11 identifies the surplus, identifies the managers recommendations. And then item 12, if council so desires, takes the action. And makes the appropriation. So 11 is just to receive and file. It includes the recommendation, but item 12 is the appropriation action. Okay. But if we're going to modify the city manager's recommendations as Mr. City attorney, does it happen here? Does it happen 12 or does it happen in both places? That's my remember the council, I would recommend that you would you would then modify the recommendation and not just receive and file as is if the if it were as a substitute motion to do that and both items then. Thank you. So I think we'll still discuss this a little more, Mr. Vice Mayor. Okay. So, Councilmember Lowenthal. Thank you and I to support the use of funds to go toward libraries and the various other assets that we have throughout the district. But I'd like a little bit more discussion on at least the district among us representing the various districts on on other options to utilize this funding. I know we have a soccer fields issue. There are a lot of priorities that come up. And so I feel that this should be discussed among all of us and see what the best path forward is. Grandson. O'DONNELL Well, I was just going to point out that at the end, the agenda items were similar, but that that's been discussed with regard to the North Library, how much more money is needed for the libraries? And we've been setting aside a couple million here, a couple of million there. And it's an understand it's an important project I teach. So my students come from North Beach. So, you know, it's very necessary. So what is the total outlay that we're looking at? How much more? Councilmember this goes back to a bond issue that the redevelopment agency did i about 2011. At that time, we were anticipating $12 million for the library because of the market. That number went down to 8 million. So we do have $8 million set aside in an escrow account for this library. We're going out to bid in the library, I believe, the first or second week in March, and we hope by the end of April to have what the cost would be, which we expect somewhere in the neighborhood of 11 and $12 million. And you have about eight right now. Yes, have we definitely have eight. No question. Then you already have some money set aside for books in books, materials and maybe furniture, as I recall, too. More than likely, the fixtures and equipment of books money may be necessary to complete the the bricks and mortar of the library. We're not sure until that that's a funding source we can't put in play, but we won't know until we get the bid for the library. So yeah, about 8 million for the infrastructure. 8 million for infrastructure and 1.5 for other one one, maybe 1.5. That's what it is. Okay. Thank you. Councilor DeLong. Thank you. And I also want to echo Councilmember Donnelly. I do think this project is a very important project for north of Long Beach, as well as the entire city. But I think there's other projects as well. I know that we've we're all very concerned about the lack of funding for the fire department, and that certainly has some city wide benefits that we have to look at, whether it's restoring rescue 12 or Engine eight or another appropriate vehicle. I know that councilmembers O'Donnell and Shipley recently had a discussion regarding soccer fields out in the districts. And perhaps the approach we're taking and the money that we're coming out with for the artificial turf is not working out as well as we hoped. And there's some issues with the water departments, and that appears to be a significant issue and doesn't require the $4 million, but it might require something to get to where we need to go. I know that there's always a conversation that says, why don't you divide by nine and, you know, see what the appropriate investments would be in a variety of districts, and I'd certainly be be open to looking at that. Now, what other funding sources are there for? The for the North Library? I guess city manager in that had this surplus not occurred. What would you have done? Kenley I'm very surprised to hear this is a huge deficit and the sky's going to fall if we don't act appropriate for. First of all, I do want to point out that this is one time money. So certainly soccer fields and one time expenditures are there, but certainly not restoring engines and things like that. Well, I'll. Argue that's one time money, but we'll get there. Again, this anticipated a $12 million project. This was going full steam ahead when the redevelopment agency was alive. And we fully anticipated the redevelopment agency to pick up the entire price tag when the redevelopment agency was disbanded. We also had approximately some one time well, 4 to $5 million come in one time that we allocated to the city council. We were hoping that that money would be allocated the library, but it was divided by nine. So we're taking this opportunity to use this funding source to go to the library rather than be divided by nine. And what's the time frame for the construction of the library? We believe we will have the bids in in late April, so we could begin construction, hopefully late May. And when will it be finished by? It could be an 18 month project, I suspect. So within the next 24 months or so? Yes. Okay. All right. I guess the other comment I would make is, you know, it certainly isn't this year or next year, but there will be additional redevelopment moneys. We could not award the project without the money in hand. And that will be in in May. I get that. All right. Well, I hear from my colleagues. Have anything else before I'll put a substitute on the table? Johnson Johnson. Thanks, Vice Mayor. What I would like to hear, just a short staff report, particularly there is some discussion about says like police attrition is not what we expected and some money is needed for additional police officers, etc. So I'd be interested hearing a quick staff report. I'll turn it over to John GROSS. Good. Good evening. Generally, this this report is about good news. I think you've talked about the $33 million we received in from the dissolution of the RTA this year and about or in FY13, about 17,000,001 time oil money in FY 13 council appropriated that money and then the balance of that money was appropriated in the 514 budget, the budget we're now in. Overall, in FY 13, the general fund had about a $3.3 million surplus. There was a surplus of about $4.4 million in the up once oil fund. That is what you are discussing, those numbers. The city manager is proposing that the 5% of the surplus be used to help fund unfunded liabilities in accordance with council policy. So he's recommending that 300 and some thousand dollars be set aside in accordance with council policy for that purpose. The balance of the upland oil money would be used to help complete some of the projects intended to be funded by the RDA. And the city managers talked about that in the bulk of the one time surplus, and the general fund would be used to help support police staffing and overtime. And most of that surplus that we were talking about in the general fund is in fact a police department surplus. So it simply rolls that money over into the police department. And in FY 13, the surplus was due primarily to attrition. That's the end of my report. Well, thank you, Mr. GROSS. And I do want to commend you and the city manager for following a council direction and setting aside 5% for unfunded liability. So I just wanted to point out that I think this shows that we have a structural solution or at least a path forward towards funding those unfunded liabilities, which frankly is the right thing to do for our employees who we made those promises to and also for future taxpayers. Manager. Yes, I do. I have a question and I know some of the people that want to speak again. Mr. West, I'm wondering on the on these proposals and and I'll say that absolutely support certainly the funding for the library and a lot of what's on here. I know normally when we have these amounts that come back, they normally start at the Budget Oversight Committee and usually come to the council's recommendations. And I guess I'm just wondering why that was the process this time. Now, that's not the case in the year end account. That certainly comes when we find one time money available, as we did the large amount of money that we had while we're putting the budget together. But the year end amount, the year in surplus or the year in closing just comes to the city council. Because we've had in the past that that has not come through budget oversight. Okay. Thank you for that clarification, Councilor Roston. Yes, thank you. And I do appreciate the conversation. The Critical Questions. Council Member DeLong, you've always been a budget hawk, and and I do appreciate your thoughtful approach to, you know, possibly redistributing these these funds. But I want to want to just bring up a couple of items. You know, it comes a time when there's a city wide investment and investment that is, in a sense, in the greater good interest of the entire city. And I think that's not library is is one of those those investments, just like the Belmont pool was. And I think you had unanimous support for that in your district, just like Chick fil A was in the sixth District. These are significant transformational investments for the city of Long Beach. And so to to take anything away from this this this public investment that the north town is looking so much forward to getting would be a real, real disappointment. And so I would just ask that you support the staff recommendation and move forward. Controversial whiskey. I just I actually had a question about the the library I recall in the budget discussions because that was attributed to the increase in library services that there was funding in there for materials and equipment. Yeah, they want. Acknowledged that. So I mean. I understand that. But I thought that at that time when we that was brought forth, that that was considered to be what was necessary at the time, because the library isn't going to be opening for two years. Councilmember Yes, that was 1.5 million approximately in one time dollars that we set aside. So when the library was built, we'd have those dollars available for fixtures, equipment and books. And so these additional funds would be used for one for the library. The additional 4 million tonight would be used to build the library. Help me on this. I thought we had previously budgeted funds for the construction because that was called up in question. Why would we budget money for materials and equipment if we didn't have the funding available to build it? We had $8 million from the agency. Again, we were hoping to get 12. We're going forward with the agency, hoping that we'd get money on the ropes. That didn't happen. We did have some one time money that we came back to the city through the redevelopment agency. We we're hoping that that 4 to $5 million would be allocated to the library, and it was not. So we're looking for these funds to go be first to use to look at the library for completion. Another different subject, because I don't see it accounted for any place. What happened to $184,000 we appropriated for Code for America? I assume that those coders were supposed to be here in January. And yes, that money is. Councilmember That money is being spent. We have a group of Code for America staffers who are working on the 14th floor and working with all the departments to do that. Working for. 14 for. Yes, at this time. Okay. We didn't get. Did you send a memo on that, that they were there? They're working through the mayor's office. What? Since the council appropriated the money, could we have maybe a memo that indicates they're there and what they're working on? That would be. Appreciate it. Thank you. That's a real. Thank you, Mr. Vice Mayor. And yes, I'd just like to remind this body, as the city manager is saying, we've always been 4 million short since the loss of redevelopment. We did have a plan during the budget process to address that. But this body chose to divide by nine, which still leaves us short without doing this right now, it is going to seriously delay this project and where we're going to find ourselves in the same situation again. So I would urge my colleagues to support staff recommendation that we move this $4 million now to get the city manager to the point where we have the $12 million that we need to make this thing reality. Got somebody long. Karen, to make a substitute motion to refer the item to the Budget Oversight Committee and charge the committee coming back with several recommendations. We'll start with the staff recommendation. So certainly keep it on the table, but look at what other opportunities there are to provide city wide investments. Okay. There's been a motion and a second. And we can do that very quickly. Mr. NEILL So doesn't delay the process. Mr. Mueller, your comment. My my comment is, although definitely not in favor of that. No. I won't be supporting. Okay. I just have a question on the on the maybe the timing issue for Mr. West. So I do have a question on the on the north side, but what's the give me the total amount again here. We're talking about total tonight. We're talking about $4 million. We have $8 million in the bank or in escrow. We're anticipating the library to come in at someone about somewhere between 11 and $12 million, but we won't know that until we actually get hard bids. Okay. And so as as far as as far as the delay on the library piece, the library piece of the funding or what what what can I would that cause any issues for the the process of actually getting that project going? We are not planning to go out to bid. I'm looking I misspoke, April. So the first week in April we planned to go out to bid. So whatever the if the boss or the council's looking at this, we would hope we wouldn't go out to bid until we knew the amount of dollars that we had. So first week in April. Okay. Mr.. We along with that, would you plan on meeting before that? And I think the last thing anybody wants is to delay any sort of progress for the for the library. I agree with you. And we could certainly commit to meeting within 30 days and getting it on the council's agenda a week afterwards. Katherine Johnson. Well, thanks, Vice Mayor. And I do think it's appropriate to have robust discussion of such an important item. But I think that the council members to my left, I think councilors, Neal, and often have a good point that the North Library really is a citywide asset and we have an obligation to look at our entire city north , south, east and west. So with that, I'd like to make this substitute substitute motion that we approve the staff recommendation. But in addition to that, we do send to the Budget Oversight Committee simply the question of looking at our police expenditures and analyzing certainly looks like where there are some shortfalls we're using for funding for here. Taking a look at whether there may be shortfalls in this current year and reporting back to the city council, but still basically approving this and just sending them to the question of police funding search. Emotion in a second. Kathryn Brosnan. I just wanted to get clarification. Who sits on the Budget Oversight Committee? Mr. Chair, myself and Mr. O'Donnell and Ms.. Lowenthal. Thank you. Just want to get clarification on that. Councilor DeLong. Councilman Johnson, I appreciate that. Substitute I guess the only one of the concerns I would have I'd like to look at is, you know, I would like to understand a little more about what is the projected total cost of the North Library. I know this. For example, if there's any remainder would go to Atlantic Media and Oregon Park. Well, if there's a hundred thousand remainder or $1,000,000 remainer or $2 million remainder, does it go to that? Are those the two most important projects for the North as well as citywide, you know, or any other district? I guess this is just it just seems very nebulous to me the way numbers are being plugged in here. But I do agree that the North Library's important project, I do think it's a citywide asset. But since we have time, yeah, I'd like to see the Budget Oversight Committee just be able to come back and present some alternatives. I know that I've mentioned a couple of alternatives. I've heard others. And I would also say I'm interested in any other alternatives that a councilman would like to say, well, you know, include this in there, and I would do that as well. But I think we could do a good job of providing more information on this alternative as well as others. Councilmember O'Donnell. Could you staff comment on the points Mr. DeLong just made with regard to the money going to other projects? Because that's kind of like saying I'm going to fly to Hawaii and then maybe I'll go to China. And I'm not sure. I mean, I don't know what the nexus is between the two projects. I think that not. Surprise me that would be slipped in there like that. Those projects are part of the redevelopment bond. The redevelopment bond from 2010 or 11 included the library included shorter hall. It included the Atlantic medians, it included the artesian means, which are no longer in existence because we didn't have the funding. It included Oregon, Oregon Park. So we're looking at the specific projects that were included in the redevelopment bond, which fell short when the agency died. Right. Right. And listen, I don't have a problem with the library. It's necessary. Mr. Neill has made his case to me, and I know the children of that neighborhood well. But what I do have a concern is all of a sudden there's other projects on there. I mean, with redevelopment gone, help me understand the nexus between oil money. Again, the nexus is these are the projects that were in the redevelopment bond that fell short. We would have no issues whatsoever. I'm looking at Councilmember Neal and Austin that if you just capped it at the at the librarian, any additional funds would go back to the block for for allocation. But so I would think that would be a matter of common practice. Again, no, the idea was these are all projects that were tied to the redevelopment bonds. Right. That is the nexus. The only reason we're looking at it in this fashion is because those are the projects. Had we fell and fall short, if we fell short in the shorter haul project, we would then you'd see shorter haul here for the East Police Station. But we didn't fall. We weren't falling short in that city. I am still not convinced. How those projects got labeled in there. I get the library, I'm with you on that. And again, just to point out that the four or $5 million that did come back to the city one time for the agency was utilized to divide by nine. Okay. That's a matter of fact. I don't know how that's relevant to this point here that I'm trying to make, though. So thank you. Concern for the wrong. That's okay. I'll pass. Thank you, Rosemary. I guess the only I would say is that I think the other thing that the U.S. could do on this is to look, if there's any other alternative sources of funds, because I'm not sure that using surplus fiscal year funds to backfill RDA is necessarily the best approach. I'd be curious to see what other source of funds and I have a few ideas of whether there might be dollars that might be a better source for this. Okay. There is country radio. Thank you, Mr. Vice Mayor. You know, I think this is a healthy. Discussion, but I do. And I appreciate Councilmember DeLong and his staff on this and looking at budget solutions. My my biggest concern is making sure that we don't prolong the construction of the library. And the longer this the communities in the north have been involved in this project for well over a decade. We're right at the threshold of making this happen. And again, we had a plan in the last budget cycle on how to get to the 12 million, and this body divided that by nine. So that's why we're here today. So I'm imploring you to invest another $4 million to get us to the 12 million that we know we're going to need to make this thing happen. Was the most conservative one. I think I'd say, is that I share your concerns about any delays, but at least based on the kind of tive time frame of their RFP, I'm very confident the VRC could meet and come back to the Council in a timely manner that would make sure there weren't any delays moving forward. Okay. We're going to go ahead. And the motion on the floor. Is a motion by Councilmember Johnson, I believe it was seconded by. Councilmember ousted. Councilmember Austin. And this, just to be clear, is a motion to get the library funding piece today, but then move on all other items related to what's in here over to B or C. I don't. I'll let Mr. Johnson speak about that. Go ahead. I think one thing that's discussed here is that there's been some issues in the police department in terms of not trading and needing one time fund, etc.. So my motion was basically to accept a staff recommendation for the funding and separately just to ask the PSC to take a look at our police department in terms of, you know, do we expect further ongoing problems in terms of attrition, etc.? So that was my motion. Okay. One more comment was Vice Mayor. Sure. I've got to follow up on that. And then you. Actually are past the restating of the motion was enough. Cuts were drawn. Yeah, I guess I'm I'm a little concerned about kind of singling out PD and having the Budget Oversight Committee say, we're only going to look on this one particular piece. So I guess my preference would be to kind of send all of it to us and have a look at it and get some recommendations back or kind of none of it. I mean, what we'll do at the council directs us to do, but I don't know that I'm comfortable zooming in on just one department. That's part of an overall recommendation. Casey no other similar public comment. Time to vote with first place mayor. If you could please state the maker of the main motion, the first motion and the second. We didn't hear that. The main motion was to receive and file the staff report. Okay. The very first the very first motion was a believe that councilmember and that Councilmember Neal, with reference I don't know for the first motion. I thought it was country, Neal, but maybe it was not. You don't have that, Mr. Clarke. No, we don't. It happened. It happened really quick, and we didn't hear it. I'm fairly confident was down the left there because you're approving the staff recommendation. And then I came on top of the substitutes, I believe it was Council Member Neil. Oh, okay. Well, there's no motion. I'll make. A substitute. Substitute. So let's get this clarified. Mr. Clarke, I thought I heard it from. There was a motion. I know there was a motion. And I thought it was over and. Okay. Okay. It was it was it was Neil Giuliano Neil. And it was certainly from over here, I thought. Thank you. Thank you. Thank you. Okay, so we have a motion on the floor, which is Councilmember Johnson's motion. Members, please go out and cast your vote. Johnson What's your motion. Like when. You guys talk. Too much? Just tell me your motion. Once again, it's to accept the staff recommendation in terms of funding as described and separately. Simply to ask the BBC to take a look at ongoing police funding issues, particularly as it as it relates to attrition, where that can cause future budget problems. I support. Well, it can. And we do that every year. So really your motions to adopt the staff recommendation. Thank you. Motion carries five votes. Four votes? No. Two excited. The next, I don't believe is 12. Mr. Clarke.