07.06 Mid-Year Budget Report �.oF o�
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`b�►�r;°P .. � February 12, 20.1:9
TO:.. „ Honorable Mayor and Members of the City Council
THRU: ; Rick Otto, City Manager _
FROM: William M. Kolbow dministrativ,e Ser.vices.Director�,{,�i��2��~..
REVIEW: City Manag nance �'L
1.: SUBJECT :: .
Status of Fiscal Year 2018-19 budget and preliminary projections for Fiscal Year 2019-
20 budget preparation.
2.. :: :: SUMMARY .
This mid-year.report provides an update of the FY 2018-19 b.udget and work plans. In
addition, this report also presents a brief reView .of the FY 2019-20 budget; which is
currently being prepared.
3. RECOMMENDED::ACTION
Receive and file report; and approve in one motion the following: � „
1. Authorize the transfer of $1,000,000 from the unreserved fund balance:of the
_
General Fund.to the Business Investment Fund (115).
2.:-Authorize the:transfer of $1,500,000 from :the un.reserved fund balance of the =
General Fund to the Capital Projects Fund (500).
3:. AutFiorize the transfer of $600,000 from the unreserved fund balance of the
General Funcl to the Computer Replacement.Furid (790).
4. Authorize the transfer of $100,000 from the unreserved fund balance of the -
General Fund to the IT Maintenance Fund (780). .._
5. Authorize the appropriation of:$20,000 from the Public Education and Government.
(PEG) Fund (130) unreserved fund balance to expenditiare account number
130.0000.5167Q.00000; PEG Fund — Otfier Professional & Consulting Services.
6. Authorize the appropriation of $18,000 from the .General Fund unreserved fund
balance to expenditure.account number 100.1401.51640.0000, General Fund —
Medical & Psychologic Services.
7. Authorize the transfer of $631,482 from the unreserved fund balance of the
Worker's Compensation Fund (730) to the Liability Fund (740).
ITEM �• � �. 02/12/2019
8. Authorize the appropriation of $631,482 from the Liability Fund unreserved fund
balance to the following expenditure account numbers:
Account Description Amount
740.1412.52310.00000 Liability Claims Paid $469,936
740.1412.52101.00000 Fire Insurance Premium 127,263
740.1412.52231.00000 CIPA Administration 19,943
740.1412.52011.00000 Public Liability Premium 14,340
TOTAL: $631,482
9. Authorize the appropriation of $56,371 from the General Fund ($2,255),
Proposition 172 Fund ($46,786), Sanitation Fund ($1,128), Gas Tax Fund
($1,692), Water Fund ($3,946), and Equipment Replacement Fund ($564)
unreserved fund balances to the following expenditure account numbers:
Account Description Amount
100.6001.53670.12222 Other Maintenance Items $564
100.7001.53670.12222 800 MHZ 1,692
120.3011.53670.12222 27,057
120.4011.53670.12222 19,729
220.5022.53670.12222 1,128
271.5021.53670.12222 1,691
600.8041.53670.12222 3,946
710.5023.53670.12222 564
TOTAL: $56,371
10.Authorize the appropriation of$138;238.60 from the Traffic Congestion Relief Fund
(340) unresenred fund balance to expenditure account number
340.5011.56330.13120, Pavement Management Program.
11.Authorize the appropriation of $28,750 from the General Fund unreserved fund
balance to expenditure account, number 100.4041.50002.00000, Salaries and
Benefits.
12.Authorize the appropriation of $675,000 from the Business Investment Fund
unreserved fund balance to expenditure account 115.0000.52611.00000,
Payments To Other Agencies.
13.Authorize the appropriation of $25,000 from the General Fund unreserved fund
balance to expenditure account 100.7022.51700.00000, Park Security Program.
14.Authorize the appropriation of$28,040 from the Park Acquisition Fund unreserved
fund balance to expenditure account 510.7021.56510.20321, Grijalva Master Plan
Update.
15.Authorize the appropriation of $90,000 from the Transportation Systerri
Improvement Program Area "A" (TSIP A) Fund unreserved fund balance to
expenditure account 286.5032.56100.20191, CIP — Main St Signal
Synchronization.
ITEM 2 02/12/2019
4. FISCAL IMPACT
Sufficient funds are available in the unreserved fund balances of the respective funds to
support the requested appropriations. Approval of the recommended actions will result in
the following appropriations:
Action Amount From To
1 $1,000,000 General Fund Business Investment Fund
2 1,500,000 Capital Projects Fund
3 600,000 Computer Replacement Fund
4 100,000 IT Maintenance Fund
6 18,000 Medical & Psychologic Services
9 2,255 , Maintenance of 800 MHZ
11 28,750 Salaries and Benefits
13 25,000 Park Security Program
$3,274,005 TOTAL GENERAL FUND
5 20,000 PEG Fund Consulting Services
7 $631,482 Worker's Comp Fund Liability Fund
8 631,482 Liability Fund Maintenance and Operations �
9 54,116 Prop 172 Fund Maintenance of 800 MHZ
Sanitation Fund
Gas Tax Fund
Water Fund
Equipment Repl. Fund
10 138,238.60 Traffic Congestion Fund Pavement Management Program
12 675,000 Business Investment Fund Payments to Other Agencies
14 28,040 Park Acquisition Fund Grijalva Master Plan Update
15 90,000 TSIP A Fund Main St. Signal Synchronization
$2,268,359 TOTAL OTHER FUNDS
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community. .
b: Analyze future fiscal needs and potential revenue opportunities.
6. DISCUSSION AND BACKGROUND
FISCAL YEAR 2018-19 UPDATE
Review of General Fund Revenues and Expenditures
Many of our sources of revenue reflect modest gains as the economy continues to show
signs of strength. The projected total General Fund revenues for FY 19 are$115.9 million,
$4.2 million, or 3.7% above budget. Sales tax, our largest source of General Fund
revenue, is anticipated to be $195,000 over the budget of $43.9 million. We continue to
receive catch-up revenue for the delayed and missing payments from the prior quarters
caused by reporting issues with the State's new collection system. Rising fuel prices and
volume of fuel sales are also expected to contribute to higher receipts, although fuel prices
have leveled off recently. Strong performance in building and construction, general
consumer goods, and allocations from the county pool tax allocation for online shopping
will continue to bring in revenue as projected. However, much of these gains are offset
ITEM 3 02/12/2019
by decreased receipts from new car sales, which have dropped over 10% compared to
the first two quarters of FY 18. At mid-year, $47.5 million in General Fund revenues had
been received, reflecting 43%of the budget, which is normal for mid-year due to the timing
of revenue receipts. Sales tax receipts provided the largest portion of General Fund
revenue at $19.8 million (45.1%) by the end of the second quarter. Staff expects to
receive a larger portion of sales tax receipts in the second half of the year, due to the
timing of allocations.
Current year property taxes, the second largest source of General Fund revenue, are
anticipated to be $42.1 million, $321,000 above budget. This increase is related to more
property tax increment distributed by the County of Orange for the Successor Agency. At
mid-year, property tax is at 30.8% of budget, with $12.9 million received at the end of the
second quarter. Transient Occupancy Tax(TOT) is comparable to FY 18, with $2.2 million
rece'ived, 42.3% of budget. Based on.current trends, other revenue sources, such as fines
and forfeitures and revenue from other agencies, are expected to be above budget as
well. Miscellaneous Revenues are anticipated to be $2.4 million, $1.8 million higher than
budget. The majority of this increase is contributed by reimbursements from the Office of
Emergency Services, as reimbursement for the City's participation in statewide wildland
firefighting e.fforts.
As part of the adoption of the FY 19 budget, Council approved the updated Master Fee
Schedule, the effect of which was not included in that budget's revenue projections.
Throughout this fiscal year, we continue to monitor the impact of the fee changes, which
took effect on July 1, 2018. Staff is projecting that the total increase from fee changes is
$921,000, which is close to the estimated $1.0 million revenue increase from the updated
fee adjustments.
Licenses and permits are estimated to be $337,000 above the budget of $4.7 million,
mainly a result of the revised fees for annual fire permits, underground tank permits, and
building related permits. Charges for services are projected at $5.4 million, $584,000
higher than the budget based on the updated fee schedule for new business. license
applications, fire construction plan review and inspection fees, hazardous material
disclosures, OMC/CVC tow release, encroachment fees, and building plan check fees.
Expenditures in the General Fund are currently within target range, with all departments
on pace to meet, but not exceed, their target expenditures for FY 19. Unlike revenue,
which fluctuates from external factors, expenditures are consistent and remain relatively
steady throughout the fiscal year. The adjusted appropriation for FY 19 is $113.3 million,
an increase from $111.6 million due to approved budget adjustments. The actual amount
expended and encumbered through December 31, 2018 is $55.6 million, 49.0% of the
total expenditure appropriation. Comparing that to FY 18's actual amount expended and
encumbered during the same period, FY 19 is lower by 7.3%, mainly due to the City
implementing the operating budget reduction policy, as well as vacancies. We expect to
see savings in expenditures at the end of the fiscal year since this is the historic trend of
the General Fund. Our initial analysis predicts we will meet, or stay slightly below, target
appropriations.
ITEM 4 02/12/2019
Attached to this staff report is the Mid-Year Report of the General Fund, which details and
illustrates total revenue received, and expenditures by department and category.
Transfer to Internal Service Funds
FY18 ended with $111.0 million in revenue, $3.1 million more than budgeted, resulting in
an.ending fund balance of $11.3 million. In keeping with City Council's direction at the
October 9, 2018 Council meeting, staff is recommending the following transfers:
Business Investment Fund (115) $1,000,000
Capital Projects Fund (500) 1,500,000
Computer Replacement Fund (790) 600,000
IT Maintenance Fund (780) 100,000
Total Transfers $3,200,000
These transfers will provide funding to those areas that either have a current or future
specific need. The original proposed transfer of$400,000 to the Computer Replacement
Fund was to keep the fund balance current to meet anticipated expenditures in FY 19 and
FY 20. However, an additional $200,000 will need to be transferred to address continued
IT infrastructure maintenance.
The proposed$1.0 million transfer to the Business Investment Fund anticipates upcoming
FY 19 economic development and new business activities in the City. Lastly, the
proposed transfer of $1.5 million to the Capital Improvement Projects Fund is consistent
with the City Council's practice to invest in the City's aging infrastructure, and to maintain
at least $8.5 million in the fund balance.
_ Budqet Adiustments
Along with the budget approval, carryover appropriations and encumbrances, added
approximately $987,000 to the budget. To date, the City Council has authorized an
additional $756,000 in budget adjustments to the General Fund. These have been for
grants �with corresponding revenue, as well as for an appropriation for tree and brush
clearance services along a portion of Santiago Creek.
The following additional budget adjustments to the FY 19 budget are recommended:
- Liablity Fund: Each year, staff appropriates an estimated amount for liability
claims, premiums, and administration costs based on history and knowledge of ,
what is to be expected in the coming fiscal year. Due to unusual amounts of
unforeseen claims, as well as receiving the final premium costs late this fiscal year,
$631,482 of additional funding is needed to cover the costs of expenses and
anticipated claims. Staff is requesting a transfer from the unreserved fund balance
of the Worker's Compensation Fund to the Liability Fund to address these
expenses.
- Granicus Live Streaminq: An appropriation of$20,000 from the Public Education
and Government Fund is recommended to pay for the Granicus Live Streaming
service, which allows City Council and Planning Commission meetings to be
broadcast live on the City's website on high definition streaming, and for archive
and historical viewing for staff and the general public.
ITEM s 02/12/2019
- Fire Annual Phvsicals: Due to an unanticipated volume of annual physicals for
Fire Fighters this fiscal year, an appropriation of $18,000 from the General Fund
is recommended as part of the City's contractual obligations with various
bargaining groups within the Fire Department.
- 800 MHZ Commincations Svstem: The maintenance of the 800 MHZ
Communications System was recently projected to cost more than was budgeted
when invoices were received after the start of the f.iscal year. Therefore, $56,371
is recommended to be appropriated from various funds including the General
Fund, Proposition 172 Fund, Sanitation Fund, Gas Tax Fund, Water Fund, and
Equipment Replacement Fund.
- Pavement Manaqement Proqram: The State Controller's Office reported the
remaining fund balance in the Traffic Congestion Relief Fund (340) must be spent
before the end of this fiscal year. As such, the balance of $138,238.60 is
recommended to be appropriated to the City's Pavement Management Program
for rehabilitation of City streets.
- Parkinq Control Officer II: With the completion of the Old Towne West Metrolink
parking structure, the City will need a non-sworn Parking Control Officer II to be
tasked with monitoring vehicles parked in the new structure, as well as in other
parking lots in the Old Town Plaza area. To fund this position for the remaining
part of this fiscal year, an appropriation of $28,750 is recommended from the
General Fund for salaries and benefits. It is anticipated that revenue created by
this position will more than offset the increased cost.
- Business Investment Fund: Due to entities outperforming the City's estimate of
sales tax generated in FY 19, staff recommends an additional appropriation of
$675,000 from the Business Investment Fund unreserved fund balance to address
current and future expenditure needs.
- Park Securitv Proqram: Over the past few years, the City has employed the
services of a private security firm to patrol city parks during non-operating hours
through the Park Security Program. Patrols have been increased and extended to
multiple parks and facilities. The heightened level of patrols, along with increased
wage rates, has expended the $85,000 contract amount at a higher rate than prior
years. As such, an appropriation of $25,000 is recommended. from the General
Fund for the Park Security Program, to continue services to the community at its
current level and effectiveness.
- Griialva Park Master Plan: An appropriation of$28,040 is recommended from the
Park Acquisition Fund for a review of the 2005 Grijalva Park at Santiago Creek
Master Plan, due to the necessity to identify the City's current community needs,
and consider partnership opportunities to develop the vacant property.
- Main Street Siqnal Svncrhonization: Since the Main Street Signal
Synchronization project traverses both Area"A" and Area "B" of the Transportation
System Improvement Program, it is recommended that $90,000 from Area "A" will
be utilized in lieu of Area "B" funds so that those funds would be used in their
. respective area for upcoming projects.
ITEM 6 02/12/2019
Work Plan Summaries
With the adoption of every fiscal year budget, departments identify an annual work plan
whioh serves as a roadmap for their planned activities. A summary of FY 19 work plan
accomplishments for each department is attached .to this staff report, and provides a
status of those work plans at mid-year.
Water Fund Fiscal Update
The City's water production increased to 28,207 acre feet (AF) in FY 18, over the target
water production of 26,500 AF. With above average rainfall, water production is expected
to remain steady through FY 19. At this point, water production is 15,021 AF, about 55%
of the City's FY 19 target water production of 27,250 AF. Based on the current trend, the
target water production for FY 19 has been adjusted to 28,000 AF. For the upcorning FY
20 budget, the City's target water production is projected to stay flat at 28,000 AF. This is
projected in the Water Rate Model, and revenues and expenditures have been adjusted
accordingly. Revenues in the Water Fund, from July through December 2018, are $15.3
million, up $1.3 million compared to the same period of last fiscal year.
The City currently participates in the Coastal Pumping Transfer Program (CPTP). This
regional program helps reduce the potential for seawater intrusion along the coastal
cities. The CPTP program encourages inland water agencies, sucFi as this City, to pump
groundwater over the Basin Pumping Percentage (BPP) with an incentive of$50 per acre-
foot. Depending on the water demand and available well capacity, the CPTP could
provide savings between $50,000 to$100,000 in water production cost. As in years past,
staff will be returning.to City Council with more information at an upcoming Budget Study
Session to discuss the upcoming FY 20 budget.
Sanitation Fund Fiscal Update
In 2017, the Public Works Department completed their sanitation rate study, which was
approved by City Council in July 2017. The sanitation rate adjustment provides the
appropriate funding for necessary maintenance and operational needs on the City's 312
miles of sewer systern. The structural changes made to the Sanitation Fund includes new
CIP funding for mainline replacement of hydraulic and structurally deficient sewer ,
systems, as well as hot spot repairs. Maintenance projects are located throughout the
City, with an emphasis on areas that have aging and structurally deficient sewer pipes.
From July through December 2018, the Sanitation fund received revenues of $3:5 million
($875,000 generated by the infrastructure fee), approximately $600,000 more compared
to the same time-period last year. Expenditures at mid-year are currently within target.
Earlv Look at Fiscal Year 2019-20 and Bevond
Our initial analysis suggests the General Fund revenue estimate for FY 20 will be
approximately $117.8 million, with expenditure estimates at $117.8 million. Sales tax
revenue is projected to be $45.4 million, $1.3 million above the FY 19 estimate. Property
taxes are anticipated to be $43.8 million, and TOT is estimated to be higher than FY 19
by$750,000 at $5.9 million. Expenditures are proposed to increase by 3.7%, mainly due
to the continued increase of PERS retirement costs, contractual obligations, and the
special election scheduled in November.
ITEM � 02/12/2019
For FY 21, revenues will more likely increase by 2% due to upcoming economic
development activities, and expenditures are expected to escalate at the same rate
because of continued increase PERS cost at about$2.2 million. A more detailed analysis
of revenues and expenditures, along with budget balancing strategies, will be discussed
at the upcoming Budget Study Session:
7. ATTACHMENTS
• General Fund — Mid Year Report Ending 12/31/18
• Mid-year work Plan Report .
ITEM s 02/12/2019
Generel Fund-Mid-Year Report Ending 12/31/18
Expenditures
Fundin�Sources Expended Encumbrance
Appropriation Thru 12/31 Thru 12/31 Unencumbered %Budget
Expenditures: 2018-19 2018-19 2018-19 Balance Exp.&Encum.
Non Departmental 2,260,259 783,905 108,143 1,368,212 39.5%
City Council 7,696 581 - 7,115 7.5%
City Manager 1,100,047 418,592 307 681,148 38.1%
CityAttorney 1,053,082 473,366.48 77,825 501,891 52.3%
City Clerk 681,226 272,378 232 408,616 40.0%
CityTreasurer 92,395 44,386 937 47,072 49.1%
Finance Department 3,072,462 1,327,749 50,523 1,694,191 44.9%
Human Resources 1,364,652 606,854 48,487 709,311 48.0%
Library Services 5,241,387 2,385,703 113,652 2,742,032 47.7%
Fire 28,678,194 14,398,627 728,419 13,551,149 52.7%
Police 46,638,760 20,910,323 576,792 25,151,645 46.1%
Public Works 8,608,355 3,490,416 901,347 4,216,593 51.0%
Community Development 4,704,771 2,066,887 190,516 2,447,369 48.0%
Community Services 9,705,095 4,059,953 1,450,208 4,194,933 56.8%
Economic Development 205,971.00 89,596.22 - 116,375 43.5%
TOTAL EXPENDITURES $ 113,414,352 $ 51,329.317 $ 4,247,385 $ 57,837,650 49.0%
Appropriation Expended Encumbrance Unencumbered %Budget
Expenditures: 2018-19 2018-19 2018-19 Balance Exp.&Encum.
Salaries and Benefits 91,961,720 42,420,252 - 49,541,468 46.1%
Contractual5ervices 13,816,188 5,351,394 3,723,169 4,741,626 65.7%
Miscellaneous Expenditures 925,941 177,309 39,038 709,794 233%
Materials and Supplies 1,782,574 883,483 482,721 416,369 76.6%
Debt Service - - - - 0.0%
CapitalOutlay 104,977 35,603 2,458 66,917 363%
Internal Service Costs 4,922,952 2,461,476 - 2,461,476 50.0%
TOTAL EXPENDITURES $ 113,514,352 $ 51,329,317 $ 4,247,385 $ 57,937,650 49.0%
Generel Fund-Mid-Year Report Ending 12/31/18
Revenues
Fundina Sources Actual Actual 2018-19
Estimate YTD thru 12/31 YTD thru 12/31 Actual v. %
2018-19 2018-19 2017-18 Estimates RECEIVED
Revenues:
Sales Tax 43,880,000 19,790,499 13,676,271 24,089,501 45.1%
PropertyTax 41,739,040 12,876,245 12,738,991 28,862,795 30.8%
TransientOccupancyTax 5,100,500 2,157,619 2,232,847 2,942,881 42.3%
OtherTaxes 750,000 333,924 417,213 416,076 44.5%
Franchises 2,609,432 354,864 363,562 2,254,568 13.6%
Licenses&Permits 4,679,600 2,872,881 2,421,100 1,806,719 61.4%
Fines&Penalties 1,658,000 838,962 542,034 819,038 50.6%
Use of Money&Property 1,989,920 765,124 783,085 1,224,796 38.4%
Revenue from Other Agencies 1,532,808 633,513 643,677 899,295 41.3%
Charges for Services 4,842,471 2,452,745 2,631,281 2,389,726 50.7%
Other Revenue 541,969 2,005,768 846,194 (1,463,799) 370.1%
Inter Fund Revenue 2,440,113 2,433,462 - 6,651 99.7%
TOTAL REVENUE $ 111,763,853 $ 47,515,606 $ 37,296,255 $ 64,248,247 42.5%
FY19 Work Plan Accomplishments
Six-Month Status Report
Attornev
1. Provided training and consultation to Human Resources and other department
supervisors regarding employee discipline and evaluations
2. Provided training to employees regarding potential claims investigation and
reporting
3. Provided training to employees regarding consulting services agreements,
public works agreements, and general citywide contracting processes and
procedures
4. Assisted and provided counsel in the processing of the Trails at Santiago
project
5. Assisted Planning staff with comprehensive amendment to the land use matrix
in the City zoning code
6. Defended the City of Orange as named defendant in Orange County Catholic
Worker's v. Counfy of O�ange, et al.
7. Actively participated in regional county-wide efforts to resolve chronic
homelessness
8. Joined County of Orange and cities of Costa Mesa and Anaheim to successfully
obtain a preliminary injunction preventing a mobile needle exchange program
from establishing operations in the ciry
City Clerks
1. Fully executed the 2018 General Municipal Election
2. Completed the 2018 California State Fair Political Practices Commission
(FPPC) campaign finance filings process
3. Completed the 2018 Conflict of Interest Filing procedures per the FPPC
4. Processed over 3,300 passport applications
5. Processed over 225 Public Records Act requests
6. Completed the 2018 Destruction of Records process. 165 boxes and 2,300
digital records were removed from inventory per the Records Retention
Schedule.
Citv Manager
1. Completed the FY 20 City Budget preparation, development, and approval
process
2. Guided the efforts of the employee-oriented TEAM Orange program, which
provides team building, training, and communication resources for city staff.
Held four brown bag meetings in an effort to engage employees
3. Participated in the North Orange County Cities and other regional partnership
� efforts in Iooking at opportunities to jointly conduct projects and purchases
4. Coordinated the City's response in addressing the growing homeless
population in and around Orange and provided leadership in the North Orange
County Service Planning Area to formulate regional solutions to this issue.
5. Provided leadership for several development related activities including: Urth
Caffe, the Motel 6 redevelopment, the MSI expansion, redevelopment of the
JC Penny site at The Village of Orange, the Orange Collection projects at The
Outlets at Orange, and the Trails at Santiago project
6. Served as liaison for downtown stakeholders through the completion of the
Metrolink Parking Structure project with OCTA
7. Continued working with Chapman University leadership to facilitate community
engagement opportunities
8. Completed Phase II of the City Council Chamber renovation project
9. Provided regional leadership in the operation of the Orange County Animal
Shelter
10.Worked with newer property owners in Old Towne to facilitate the successful
redevelopment of key sites including the Swift & Swift building, Plaza Bible
Church, and George II building
Communitv Development
1. Designated three Eichler Tracts as local historic districts and adopted the
Orange Eichler Design Standards with community support
2. Expanded the local Old Towne Historic District boundary on South Batavia
Street, protecting important historic residences and allowing property owners
to apply for Mills Act contracts
3. Amended ordinance to require noticing of residents and property owners within
300 feet of Design Review projects involving two story construction or
additional units in historic districts
4. Processed eleven new Mills Act contracts and revised Mills Act Program
requirements to allow interior rehabilitation as part of contracts
5. Consolidated all of the land use tables within each zoning district of OMC Title
17 into a single table for purposes of eliminating internal code inconsistencies
and making the Zoning Ordinance more user friendly for the public and easier
to administer by staff
6. Coordinated with contractors and sub-contractors through building inspections
to successfully complete and issue final Certificate of Occupancy for notable
projects such as Metrolink Parking Structure, Urth Caffe, Oakmont Senior
Living, West Village Apartments, and fire rebuilds from Canyon 2 fire
Communitv Services
1. Oversaw significant construction progress of the Shaffer Renovation project, to
include a new community building, concession building, new exercise
equipment, reorientation of the ball field, installation of a surveillance camera
system, installation of shade sails, and new irrigation
2. Raised over $96,000 in community services donations and sponsorships in
support of citywide special events and programs
3. Executed a creek cleanup to include removal of debris and clearing of
vegetation in the Santiago Creek resulting in improved visibility and
accessibility for security and maintenance purposes
4. Completed installation of surveillance camera systems at Grijalva and Yorba
Parks
5. Began a successful indoor open pickleball play program, by request of the
public, at the Sports Center at Grijalva Park
6. Produced several videos, including a new series entitled "We Work for You",
on various city subjects to promote events, educate the public, and tell the City
of Orange story on YouTube, Facebook, and the City's website
7. Organized a Great Place in America recognition celebration in Plaza Park
8. Expanded from three to four youth summer camp locations, increasing service
capacity by 25%
Finance
1. Implemented Amazon Business Solutions to obtain cost savings for items
frequently purchase by the City
2. Increased online business license renewals to over 40%
3. Implemented emailed business license renewal reminders, reducing postage
costs and increasing on-time payments
4. Upgraded the developer billing process in accounts receivable to ensure staff
costs are charged accordingly
5. Integrated GASB Statement Nos. 74 and 75 into the City's CAFR
6. Streamlined the preparation of the Capital Improvement Program budget
Fire
1. Responded to a total of 15,632 incidents during 2018
2. Completed 3,951 fire and life safety inspections of commercial, residential, and
public facilities
3. Successful captain's academy, engineer's academy, engineer's exam process,
and firefighter recruitment
4. Took delivery of finro pumpers, two utility pickup trucks, and a battalion chief
command vehicle. Took delivery and put into service a new arson investigator
vehicle and two electric vehicles for fire prevention
5. Improved communication, feedback, and training to/from the community
through the "Annual Report"
6. Deployed numerous personnel to wildland fire/hurricane/debris flow incidents
throughout the state and nation
7. Partnered with the Orange Police Department in continuing the City's
Community Emergency Response Team (CERT) training
Human Resources
1. Administered 86 recruitments, processed 8,989 employment applications,
referred 494 qualified candidates to operating departments, and hired 101 new
employees
2. Coordinated mandatory anti-harassment training for 152 supervisors
3. Processed 304 medical, dental, and vision plan changes for active employees
and retirees during the Open Enrollment period
4. Purchased and installed Automated External Defibrillators (AEDs) throughout
ten city facilities. All AEDs are registered with the County of Orange and are
featured on the PulsePoint emergency mobile application. All city departments
received training on the use of the AEDs
5. Decreased the workers' compensation total cost incurred by 48% as of
December 31, 2018, when compared to December 31, 2017. This is a direct
result of staffs continued successful efforts in fostering positive collaboration
between all parties involved
Information Technoloqv
1. Completed the second phase of the audio/visual upgrades to the City Council
Chamber
2. Assisted with .the implementation of the enterprise-wide video surveillance
system at Yorba Park, Grijalva Park, Police Department, Main Library and Taft
and EI Modena branch libraries, and City Council Chambes
3. Assisted the Library with the implementation of the connection to the California
Research and Education Network, which proves dedicated 1 Gbps internet
access to Library patrons
4. Assisted in the expansion of Geographic Information System (GIS)functionality
across City operations
5. Pertormed server refreshes and server memory expansions
Libra
1. Introduced new technology to the three library facilities, including MobileCirc,
wireless printing, security camera systems, automated sorter, and audiovisual
equipment in the community rooms.
2. Expanded the Library's Adult Literacy program in year three with introduction
of a Reading Lab at EI Modena Branch Library, new computers and tablets for
tutor and student use, and participation at community outreach events
3. Refreshed the Children's Homework Center and Teen Zone at the Orange
Public Library& History Center with paint, decor, and furniture that will enhance
and increase its use by families
4. Introduced diverse cultural experiences to the community, including a new
Vietnamese collection for children, weekly bilingual storytime, and programs
celebrating the Lunar New Year, Hanukkah, and Dia de Los Ninos/Dia de Los
Libros
5. Implemented new outreach and marketing to bring library services into the
community, including an Orange Public Library Instagram page, mobile app,
branded vehicle, and Pop Up Library
Police �
1. Collaborated with Community Services to develop a physical agility and written
testing site at Grijalva Park previously held at Golden West College in
Huntington Beach, saving time and expenses
2. Acquired and implemented the Desk Officer Reporting System, Coplogic, and
E-Commerce as a suite that allows Records personnel to upload traffic collision
reports to an online central repository
3. Replaced the Department's Video Surveillance System with new high-definition
digital cameras, a new software management system, and digital storage for
enhanced security while utilizing the City's Genetec Video System platForm
currently installed on the DepartmenYs computer deck
4. Installed new Automated License Plate Reader (ALPR) systems in four Police
patrol fleet vehicles,which can identify stolen or wanted vehicles, stolen license
plates, and missing persons. In addition, the system can assist with active
warrants, homeland security, electronic surveillance, suspect interdiction, and
stolen property recovery
5. Implemented the new Computer Aided Dispatch and Mobile (CAD/Mobile)
system for Police patrol fleet, which integrates the Records Management and
Field Base Reporting systems to provide data reuse
6. Replaced a quarter of the Mobile Data Computers in the Police patrol fleet with
new Panasonic ToughBooks for more reliability and additional options outside
of the patrol unit
7. Updated and implemented Lexipol's Law Enforcement Policies and Training
Solutions manual, which reflect federal and state laws and are tailored to the
Orange Police DepartmenYs best practices for guidance on complex issues
8. Implemented Crossroads Traffic Collision database software to produce
reports and analyze data to direct enforcement effectively
9. Implemented a Managed Private IP MPLS Transport service through Verizon
to secure and improve connectivity to the Patrol mobile fleet with the support
of Information Technology
Public Works
1. Completed improvements on 89 streets including both arterial and residential
with slurry seal and grind/overlay as part of the City's annual pavement
maintenance
2. Completed improvements on and replaced over 3,200 linear feet of sewer main
and installed 900 linear feet of storm drain
3. Evaluated and recommended a project delivery method for Fire Station 1 and
Headquarters; preparing RFP for design and project management consultants
4. Completed right-of-way acquisition for critical intersection improvements at
Chapman Avenue/Tustin Street and Tustin Street/Meats Avenue, with
construction planned for mid-late 2019
5. Added protected left-turns at the intersections of Chapman Avenue/Cannon
Street and Collins Avenue/Batavia Street
6. Completed construction of Master Metering project at UCI Medical Center
7. Installed six remote read antennas which provides the potential to read 80% of
water meters remotely
8. Completed School Lead Testing Program
9. Reconstructed 21,000 sf. of sidewalk, 2,100 sf. of curb and gutter, and 2,600
If. of sewer main
10.Completed the cleaning of over 275,000 feet of sewer line
CITY COUNCIL MINUTES FEBRUARY 12, 2019
7.5 Information Technology Services Report. (C2500.0)
NOTE: Mayor Murphy recorded an abstention on Item 7.5 due to a potential conflict with
employment and left the dais at 7:54 p.m. Mayor pro tem Alvarez conducted the meeting
for discussion of this item.
Administrative Services Director Will Kolbow provided the staff report noting that the City
has been contracting its IT services since 1984. He explained that the current contract no
longer aligns with the City's needs.
During discussion, Council agreed that a hybrid model would be the right approach at this -
� time and directed staff to explore this option further.
Mayor Murphy returned to the dais at 8:08 p.m.
7.6 Status of Fiscal Year 2018-19 budget and preliminary projections for Fiscal Year
2019-20 budget preparation.(C2500.E.4)
Administrative Services Director Kolbow presented the staff report. He noted that sales �
tax reporting errors from the State for Fiscal Year 2017-18 appear to have been corrected
and are included in the Fiscal Year 2018-19 figures. The error is estimated to be around
$1.5 million.
MOTION —Monaco
SECOND —Alvarez
AYES —Alvarez, Murphy,Nichols, Monaco
Moved to receive and file report; and approve the following:
1. Authorize the transfer of$1,000,000 from the unreserved fund balance of the General
Fund to the Business Investment Fund(115). .
2. Authorize the transfer of$1,500,000 from the unreserved fund balance of the General
Fund to the Capital Projects Fund (500).
3. Authorize the transfer of$600,000,from the unreserved fund balance of the General
Fund to the Computer Replacement Fund(790). 1
4. Authorize the transfer of$100,000 from the unreserved fund balance of the General
Fund to the IT Maintenance Fund (780).
5. Authorize the appropriation of $20,000 from the Public Education and Government
(PEG) Fund (130) unreserved fund balance to expenditure account number
130.0000.51670.00000, PEG Fund—Other Professional & Consulting Services:
6. Authorize the appropriation of$18,000 from the General Fund unreserved fund balance
to expenditure account number 100.1401.51640.0000, General Fund — Medical &
Psychologic Services. �
7. Authorize the transfer of$631,482 from the unreserved fund balance of the Worker's
Compensation Fund (730)to the Liability Fund (740).
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CITY COLTNCIL MINUTES FEBRUARY 12, 2019
7. ADMINISTRATIVE REPORTS (Continued)
8. Authorize the appropriation of $631,482 from the Liability Fund unreserved fund
� balance to the following expenditure account numbers:
Account Description Amount
740.1412.52310.00000 Liability Claims Paid $469,936
� 740.1412.52101.00000 Fire Insurance Premium 127,263
740.1412.52231.00000 CIPA Administration 19,943
740.1412.52011.00000 Public Liability Premium 14,340
TOTAL: $631,482
9. Authorize the appropriation of$56,371 from the General Fund ($2,255), Proposition
172 Fund ($46,786), Sanitation Fund ($1,128), Gas Tax Fund ($1,692), Water Fund
($3,946), and Equipment Replacement Fund ($564) unreserved fund balances to the
following expenditure account numbers:
Account Description Amount
100.6001.53670.12222 Other Maintenance Items $564
100.7001.53670.12222 800 MHZ 1,692
' 120.3011.53670.12222 27,057
120.4011.53670.12222 19,729
220.5022.53670.12222 1,128
271.5021.53670.12222 1,691
600.8041.53670.12222 3,946
710.5023.53670.12222 564
TOTAL: $56,371
, 10. Authorize the appropriation of$138,238.60 from the Traffic Congestion Relief Fund
(340)unreserved fund balance to expenditure account number 340.5011.56330.13120,
Pavement Management Program.
11. Authorize the appropriation of$28,750 from the General Fund unreserved fund balance
to expenditure account number 100.4041.50002.00000, Salaries and Benefits.
12. Authorize the appropriation of $675,000 from the Business Investment Fund
unreserved fund balance to expenditure account 115.0000.52611.00000, Payments To
Other Agencies.
13. Authorize the appropriation of$25,000 from the General Fund unreserved fund balance
to expenditure account 100.7022.51700.00000, Park Security Program.
14. Authorize the appropriation of $28,040 from the Park Acquisition Fund unreserved
fund balance to expenditure account 510.7021.56510.20321, Grijalva Master Plan
Update.
15. Authorize the appropriation of$90,000 from the Transportation System Improvement
Program Area "A" (TSIP A) Fund unreserved fund balance to expenditure account
286.5032.56100.20191, CIP—Main St Signal Synchronization.
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