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HomeMy WebLinkAbout8321-8324RESOLUTION NO. 8324 (1994 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING PROCEDURES FOR ACCOUNTING FOR COMPLETED CAPITAL IMPROVEMENT PLAN PROJECTS WHEREAS, the Council has adopted comprehensive policies for preparing, reviewing, and approving capital improvement plan project (CIP) requests and has implemented systems for monitoring their status; and WHEREAS, the Council desires to bring closure to the CIP funding process by establishing procedures for accounting for completed projects; NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that the procedures for accounting for completed CIP projects provided in Exhibit 1 and attached hereto are hereby adopted. On motion of VirP Mayor Sarrla ,seconded by Council Member Roalman and on the following roll call vote: AYES: Vice Mayor Settle, Council Members Roalman, Rappa, Romero, and Mayor Pinar NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 16 day of August , 1994. ATTEST: i D e Gladwel , Cityltlerk Mayor Peg inard APPROVED: Attorney R -R'19L " rxhiWI. Section 565 ACCOUNTING FOR COMPLETED CIP PROJECTS OVERVIEW Under the City's capital improvement plan (CIP) budget policies, funding is designated for each CIP project when the Financial Plan is adopted. Council approval of annual CIP appropriations does not automatically authorize funding for specific project phases (study, design, acquisition or construction); this authorization generally occurs only after the preceding project phase has been completed and the costs for succeeding phases have been more fully developed. Accordingly, project appropriations are generally made on "phase by phase" basis at the time of bid award based on contract costs plus a reasonable contingency for change orders and unforeseen circumstances. Unless appropriations are subsequently made to specific project accounts under this system, funding designations lapse after three years. As the project proceeds, there are a number of systems for monitoring its status, including on- line financial reports, formal monthly and quarterly financial reports, formal CIP status reports, ongoing CIP Coordinating Committee review, and comprehensive .procedures for approving construction change orders as set forth in Section 225 of this manual. The purpose of this section is to bring. closure to the CIP project funding process by establishing procedures for accounting for completed projects. Where appropriate, these procedures also apply to Equipment Replacement Fund (ERF) projects. GOALS ■ Provide consistency in accounting for completed CIP projects. ■ Improve financial reporting on the status of CIP projects and related effects on the City's fiscal condition. ■ Assure timely and consistent filing of notices of completion for construction projects. ■ Identify responsibility for approving the use of budget balances from completed projects. PROCEDURES Reporting on Completed Projects Upon completion of each project, the managing department is responsible for preparing a CAO Report summarizing its final status. Generally, reports are only required upon the completion of the construction phase, and should encompass all phases of the project. However, if the project is not expected to go beyond either the study, design, or acquisition phase, the report should be prepared upon completion .of the furthest phase. Reports should: ■ Briefly summarize the purpose of project. :r��l ` y �ffW� ..orwv.wq i � C ��Y` ■ Discuss any unusual circumstances or difficulties in completing the project, and recommend corrective action for the future if appropriate. ■ Compare estimated and actual completion dates. ■ Compare the project budget with actual costs. This comparison should provide sufficient detail to meaningfully summarize key expenditure areas and project phases. ■ Summarize the status of any outside funding sources such as grants, loans, donations, or developer- agreements. ■ Identify any outstanding encumbrance balances that should be closed once final contract payments are made. ■ Transmit the notice of completion for filing by the City Clerk for construction projects. ■ Include a budget amendment request transferring any remaining budget balances to or from the "completed projects account ". This account is established in each fund in order to account for net budget balances resulting from completed projects. This balance is available to fund new projects or offset shortfalls in existing projects, subject to Council or CAO approval as discussed below. Roles and Responsibilifies ■ City Council. Approval by the Council is required for all transfers from the completed projects account for any new projects as well as for any existing project when the transfer amount exceeds the CAD's purchasing authority. ■ City Administrative Officer. The CAO is authorized to make transfers to and from. the completed projects account for existing CIP or ERF projects. The CAO's authority to transfer balances from this account is limited to. amounts otherwise within his or her purchasing authority. ■ City Clerk. The City Clerk's Office is responsible for ensuring that notices of completion for construction projects are appropriately filed. ■ Department of Finance. The Accounting Division of the Department of Finance is responsible for reviewing completed project reports for fiscal accuracy; processing the approved budget amendment request and ensuring that project budget balances on the next monthly financial report will be zero; reducing encumbrances as recommended by the managing department and ensuring that encumbrance balances will be zero after any final project contract payments are made; and ensuring that projects completed by the end of the fiscal year are not carried over into the next fiscal year. 565 -2 ■ CIP Coordinating Committee. Members are responsible for reviewing project completion reports and providing comments to the CAO or managing department as appropriate when unusual circumstances or difficulties were encountered in completing the project and corrective action is recommended for the future. ■ ' Operating Departments. Upon completion of a CIP or ERF project assigned to them, operating departments are responsible for completing timely and accurate CAO Reports summarizing the project's final status as discussed above and for distributing them to CIP Coordinating Committee members when unusual circumstances or difficulties were encountered in completing the project. A sample report is provided in Exhibit A. MS.& C CAO REPORT August 1.6, 199X FROM: Sara Logan, Director of Public Works C ExhibitA SUBJECT: PROJECT COMPLETION - LAGUNA LAKE DREDGING The purpose of the Laguna Lake dredging project was to mitigate flooding damage and improve recreational use of the lake by removing sediment that had built up over time. Prior to this project, the lake had never been dredged in its entirety, although there had been limited dredging of the Prefumo Arm area on a periodic basis. Unusual Circumstances or Difficulties The primary difficulties in completing this project - mitigating environmental concerns and identifying appropriate methods for disposing of dredged materials - were identified and resolved during the study and design phases. No significant difficulties were encountered during construction. This project was scheduled to be completed within 150 days after authorization to proceed; construction was completed within 148 days. Project Budget Summary * Soils reports, materials testing Status of Funding Sources ® Grant funds for this project were awarded in the amount of $125,000 (50% of construction costs). Because construction costs were less than budgeted by $10,000 ($240,000), $120,000 is the total grant eligible amount. To date, $100,000 has been requested, and of this amount, $75,000 has been received. Upon final payment to the contractor, the remaining balance ($20,000) will be requested. No problems are anticipated in receiving the total eligible amount. a Zone 9 contributed a fixed amount of $50,000 for this project. All funds have been billed and received. 565 -4. Original Budget As Budget Amended Actual Variance Study 50,000 39,000 39,000 - Design 30,000 27,000 25,000 2,000 Construction Bid Amount 230,000 225,000 .225,000 - Change Orders 25,000 15,000 10,000 Other Project Costs* 5,000 5,000 3,500 1,500 Construction Management 1 15,000 15,000 12,500 2,500 TOTAL 330,000 336,000 320,000 16,000 * Soils reports, materials testing Status of Funding Sources ® Grant funds for this project were awarded in the amount of $125,000 (50% of construction costs). Because construction costs were less than budgeted by $10,000 ($240,000), $120,000 is the total grant eligible amount. To date, $100,000 has been requested, and of this amount, $75,000 has been received. Upon final payment to the contractor, the remaining balance ($20,000) will be requested. No problems are anticipated in receiving the total eligible amount. a Zone 9 contributed a fixed amount of $50,000 for this project. All funds have been billed and received. 565 -4. The following is a brief overview of the final funding for this project: Because $5,000 of the $16,000 in project savings is allocable to grant funding, only $11,000 is recommended for transfer to the completed projects account in the Capital Outlay Fund. Correspondingly, the budget estimate for grant revenue in the Capital Outlay Fund should be adjusted downward by $5,000. (See attached budget amendment request). Contract Status Original Budget Budget As Amended Actual Variance General Fund 155,000 161,000 150,000 11,000 Zone 9 50,000 50,000 50,000 - Federal Grant 125,000 125,000 120,000 5,000 TOTAL 330,000 .336,000 320,000 16,000 Because $5,000 of the $16,000 in project savings is allocable to grant funding, only $11,000 is recommended for transfer to the completed projects account in the Capital Outlay Fund. Correspondingly, the budget estimate for grant revenue in the Capital Outlay Fund should be adjusted downward by $5,000. (See attached budget amendment request). Contract Status ' Including final payments which will be processed within the next 30 days pending publishing the notice of completion. Combined with the attached budget amendment request, reducing the Wepus Construction Management and SSN Associates encumbrance balances as indicated above should result in "zero" balances for all phases of this project. ATTACHMENTS ■ Notice of completion ■ Budget amendment request closing project balances FM U65.WP 565 -5 Original Contract Amount Change Orders Total Costs* Contract Balance Wepus Management 15,000 - 12,500 2,500 Smith Construction 225,000 15,000 2401 000 - SSN Associates 27,000 - 25,000 2,000 ' Including final payments which will be processed within the next 30 days pending publishing the notice of completion. Combined with the attached budget amendment request, reducing the Wepus Construction Management and SSN Associates encumbrance balances as indicated above should result in "zero" balances for all phases of this project. ATTACHMENTS ■ Notice of completion ■ Budget amendment request closing project balances FM U65.WP 565 -5 Recording Requested by and When Recorded Mail to: City Clerk City of San Luis Obispo P. O. Box 8100 San Luis Obispo, CA 93403 -8100 C C Exhibit —J NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN THAT: 1.. The undersigned is owner or agent of owner of interest or estate stated below in the property hereinafter described. 2. The FULL NAME of the OWNER is City of San Luis Obispo 3. The FULL ADDRESS of the OWNER is 990 Palm Street, San Luis Obispo, California 9-';401 4. The NATURE OF THE INTEREST or ESTATE of the undersigned is: In fee. 5. The FULL NAMES and FULL ADDRESSES of ALL PERSONS, if any, who hold such interest or estate with the undersigned as JOINT TENANTS or as TENANTS IN COMMON are: NAMES ADDRESSES 6. The full names and full addresses of the predecessors in interest of the undersigned if the property was transferred subsequent to the commencement of the work of improvement herein referred to: NAMES ADDRESSES 7. A work of improvement on the property hereinafter described was COMPLETED .August 1, 199X 8. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement is: Smith Construction 9. The street address of said property is 10. The property on which said work of improvement was completed is in the City of San Luis Obispo, County of San Luis ibis o State of California, and is described as follows:_ Laguna Lake Dredging Specification No. 9X -123 Verification for NON - INDIVIDUAL owner. 1, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the City Clerk of the aforesaid interest or estate in the property described in the above notice; that I have read the said notice, that I know and understand the contents thereof, and that the facts slated therein are true and correct. (Signature of person signing on behalf of owner.) (Date and Place) 565 -6 C\` Exhibi Q city of san Luis osispo NUMSEFi BU6g6t amendment Request REGUESTING DEPAR PMENT FUND AMENDED FUND NO. rcd G c`c Gi%.E S C"� L pu t PROPOSED AMENDMENTS �s ACCOUNT DESCRIPTION DEFT. 09.1. SUB -OBJ. �'''"�'E^IT BUDGET PROPOSED AMENDMENTS AMENDED BUDGET L 6s�.., �" o / 3 S0 2S o0 o S 0 a OdO �' tv 6 'o ss3 .755 0-00 6-w e- /L✓7 SS S 0 0 .? S'00 .7 SOO TOTAL /Zr Oo0 [ S, o0D �Zoj 000 M 1T1'1Cwm ACCOUNT ESCRIPTIO T N DEPT. OSJ. SUS -DS J. CUR=NT' BURET PROPOSED AMENDMENTS AMENDED BUDGET .BUDGET St w S 530 ENTERED BY 27 oD 2 0 'o .2S oco �' tv 6 'o ss3 .755 0-00 6-w e- /L✓7 SS S 0 0 .? S'00 .7 SOO b.,L : r coo $ o So D Sac ZZ 4, 0 e TOTAL 305300 zoOo .�oD�.Sco PURPOSE DEPARTMENT HEAD DATE DIRECTOR OF FINANCE DATE s //a /9� CITY ADMM6T E OFFICER DATE ENTERED BY DATE DISTRIBUTION: yymis_ Ffte Cm 7-. Fhn Pink Dopwl~4 GdtlanroC Dopwvmm FOO Copy 50 -BB 565 -7 ��f��� �� �� RESOLUTION NO. 8323 (1994 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO ADJUSTING COMPENSATION FOR THE CITY CLERK AND RESCINDING RESOLUTION NO. 8298 (1994 SERIES) IN CONFLICT WHEREAS, the City Council establishes the salary range for, among other positions, the City Clerk, in the Management Compensation Plan for Appointed Officials, et.al., Resolution No. 8317, 0 994 Series); and WHEREAS, by Resolution No. 8048 (1992 Series), the City Council appointed Diane Gladwell as City Clerk; and WHEREAS, the City Council has evaluated compensation factors for the City Clerk in accordance with the Management Compensation Plan for Appointed Officials et.al. (Resolution No. 8317 - 1994 Series); and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Effective April 7, 1994, the City Clerk's salary shall increase from $4,450 per month to $4,837 per month. SECTION 2. Resolution No. 8298, (1994 Series), is hereby rescinded. All other compensation .and benefits afforded the City Clerk under the Appointed Officials Compensation Plan (Resolution No. 6604 - 1989 Series and Resolution No. 8317 - 1994 Series), and the City Clerk Employment Agreement (Resolution No. 8048 - 1992 Series) not superseded by the above, shall remain in full force and effect.. SECTION 3. The City Council shall evaluate the performance of the City Clerk annually. On motion of Vice Mayor Settle , seconded by Council Member Roaln)an and on the following roll call vote: AYES: Vice Mayor Settle, Council Members Roalman, Rappa, Romero, and Mayor Pinard NOES: None ABSENT: None R -8323 Resolution No. 8323 (1994 Series) Page 2 The foregoing Resolution was passed and adopted this 16th day of August 1994. MAYOR PE INA D ATTEST: �r .. APPROVED AS TO FORM: .. -�3 SEi , lTfr ATT5MTr SS:CAO -RES Q` �J D RESOLUTION NO. 8322(1994 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ADOPTING THE CITY'S GRANT MANAGEMENT POLICY WHEREAS, grant sources are becoming an even more important part of the City's overall resource picture in light of state takeaways and decreased General Fund revenues; and WHEREAS, the Council desires to establish an overall framework for guiding the City's use and management of grant resources; NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that the grant management policy provided in Exhibit A and attached hereto is hereby adopted. On motion of vice Mayor Settle ,seconded by Council Member Roalman and on the following roll call vote: AYES: Vice Mayor Settle, Council Members Roalman, Rappa, Romero, and Mayor Pinar NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 16thday of August , 1994. ATTEST: i We Gladwell, Cjo Clerk Mayor Pe inard APPROVED: • _ • �/' CitfAttorney R -8122 GRANT MANAGEMENT POLICY OVERVIEW n Exhib� _.... With state- takeaways and continued decreases in key General Fund revenues, grant revenues have become an even more important part of the City's overall resource picture, especially in funding capital improvements. Although grant programs themselves are being reduced and becoming more competitive, actively seeking out grant revenues that assist in achieving identified City goals and objectives should nonetheless play a key role in the City's overall financial health strategies. The purpose of this policy is to set forth an overall framework for guiding the City's use and management of grant resources. GOALS ■ Set forth the importance of grant programs in accomplishing City goals and objectives. ■ Establish general concepts and framework for seeking and managing grant programs. ■ Identify roles and responsibilities in managing grant programs. ■ Establish criteria for evaluating the benefits and costs of grant programs. ■ Set forth the City's policy in complying with Single Audit Act requirements. GENERAL CONCEPTS AND FRAMEWORK ■ The City will aggressively pursue grant funding from federal, state, and other sources, consistent with identified City goals and objectives. ■ Aside from entitlement grants,' the City should focus its efforts on securing grants for capital improvements. This approach will allow the City to compete for projects we might not otherwise be able to afford while maintaining financial independence should future grant sources diminish. Grants for operating purposes may be considered on a case -by -case basis after careful consideration of the benefits of the program and the ongoing impacts on the City if grant funding is no longer available. ■ Until the City's financial situation significantly improves, we should avoid grants that fund "pilot" operating programs or short-term staffing enhancements to existing programs. Taking on these programs could ultimately aggravate the City's fiscal position should the desire for the program remain once the grant funding is no longer available. ■ The City will only seek grants when sufficient staff resources are available to effectively administer the program in compliance with grant requirements and successfully perform the grant workscope. ■ Indirect costs of administering grant programs will be recovered to the maximum extent feasible. ■ Operating departments have the primary responsibility for seeking out grant opportunities, for preparing effective grant applications, and for successfully managing grant programs after they have been awarded. ■ Operating departments should develop a simple system that tracks grant funding availability in their functional areas. Using this system, all capital improvement plan project requests will evaluate and document the ability of grants to assist in funding the project. ROLES AND RESPONSIBILITIES A. City Council 1. Approves grant management policies. 2. Approves all grant applications and delegates receipt and contract execution to the CAO if delegation is allowed by the grantor agency. B. City Administrative Officer 1. Receives grants and executes related contract documents when delegated to do so by the Council. 2. Develops, recommends and maintains grant management policies. C. Operating Departments 1. Develop systems for maintaining ongoing information regarding grant availability within their functional areas of responsibility. 2. Evaluate benefit and costs of specific grant programs on a case -by -case basis: a. Purpose of the grant program and its consistency with identified City goals and objectives. b. Additional staffing, office space, facilities, supplies or equipment that will be required if the grant is awarded. C. Ongoing impacts of the grant program after it is completed. d. Responsibilities of other departments and impacts on them, in preparing the grant application or performing workscope if the grant is approved. e. Amount of indirect cost to be recovered from the grant. f. Total program costs, including portion funded through grant revenues and any required City contribution. g. Source of funding for any required City share. h. Compliance and audit requirements. 3. Prepare grant applications. a. Work with the grantor agency in identifying special program requirements and developing strategies for preparing a successful grant application. b. Complete grant application documents. C. Coordinate with affected departments as necessary. d. Prepare a Council agenda report requesting authorization to seek grant funding. This report should describe the grant program's conformance with this policy, including the results of the cost/benefit analysis. 4. Administer grant programs if awarded. a. Prepare a CAO report (or Council agenda report if required by the grantor agency) accepting grant award, including grant summary form, budget amendment request, and any other required City forms or documents. b. Coordinate execution of grant documents by the CAO and return executed documents to grantor agency. C. Notify affected departments of grant award. d. Maintain financial and other records in accordance with grant requirements. e. Complete and submit required reports, including requests for funds. f. Monitor grant expenditures and receipt of revenues. g. Coordinate on -site management reviews by the grantor agency during the grant term. h. Perform the grant workscope. 5. Complete grant close -out. a. Complete the grant workscope. b. Notify affected departments that the project is completed and schedule a "close -out" meeting if necessary to resolve any final procedural issues. C. Ensure final receipt of grant revenues. d. Prepare and submit any required grant close -out documents. e. Review grant file for completeness. f. Retain all necessary program and financial records for the period of time required by grantor agency. g. Coordinate any on -site management reviews or audits after the grant is completed. h. Resolve any audit findings. L Ensure that the City's policy regarding single audit act requirements is implemented as discussed below. D. Department of Finance 1. Provides technical assistance to operating departments in preparing grant applications, submitting reports and maintaining records. 2. Coordinates preparation and distribution of single audit reports. E. Other Departments Provide assistance to the managing department as identified during the grant application and award process. C C SINGLE AUDIT ACT REQUIREMENTS Background The City is subject to the financial and compliance requirements of the Single Audit Act of 1984, which is applicable to all local and state governments receiving federal financial assistance exceeding $100,000 for a fiscal year. The purpose of the Act is to: ■ Improve the financial management and accountability of state and local governments with respect to federal financial assistance programs. E Establish uniform requirements for audits of federal grants. ■ Promote efficient and effective use of audit resources. ■ Assure that federal departments and agencies rely upon and use audit work performed during a single audit rather than performing the audit work themselves. Under this Act, federal grants are included under an inclusive single audit program which is incorporated into the City's annual audit and financial report preparation process. During the audit, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations. City's Policy Regarding the Single Audit Approach For federal grants included in the scope of the City's single audit approach, it is the City's policy that all financial and compliance issues have been met through the single audit, and follow -up audits to determine these issues are not necessary unless specifically related to findings or recommendations included in the single audit report. As noted above, the purpose of the Act is to establish uniform audit requirements, promote efficient use of audit resources, and assure that federal agencies rely upon audit work already completed; its purpose is not to audit local agencies twice. Accordingly, the City will strongly resist any efforts by federal agencies to duplicate audit work already performed in complying with Act requirements. As such, whenever federal grantor agencies request final audits, the managing department should notify the Department of Finance in order to ensure a consistent response to these types of requests. FWAWMANIMG2.CAR J YN O �,N) ,SOLUTION NO. 8321(1994 SERI..'/' A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO PROCLAIMING THE EXISTENCE OF A LOCAL EMERGENCY WHEREAS, Government Code Section 8630 et seq., and Municipal Code Section 2.24.060 empower the City Council to proclaim the existence or threatened existence of a local emergency when the City is affected or likely to be affected by a public calamity or crippling disaster; and WHEREAS, conditions of extreme peril to the safety of persons and property have arisen within the City of San Luis Obispo caused by the threat of fire arising out of the Highway 41 fire; and WHEREAS, the City Council does hereby find that the aforesaid conditions of extreme peril warrant and necessitate the proclamation of the existence of a local emergency; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: It is hereby proclaimed that a local emergency exists throughout the City; and BE IT FURTHER RESOLVED that said local emergency' shall be deemed to continue to exist until its termination is proclaimed by the City Council of the City of San Luis Obispo, California. Upon motion of Romero , seconded by Settle , and on the following roll call vote: AYES: Council Members Romero, Settle,_ Rappa, Roalm_an, and Mayor Pi_nard NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 16 day of August. 1994 at 8.:ooA.M. in the City of San Luis Obispo.. ATTEST: APPROVED AS TO FORM: • i /tea, � r (ji4- Peg Pina , Mayor R -8321