Members of the public may address the City Council on any item shown on the agenda or matter of the Council’s authority after completion of “Request to Address the Council Form” available in the lobby of the Council Chambers. This form must be completed 15 minutes prior to the scheduled meeting time.
Pursuant to Section 54957.5 of the California Government Code, Any writings (Except for those writings which are exempt from disclosure) which are distributed to all or a majority of the members of the City Council are available for public inspection in the lobby of the City Council Chambers and in the office of the City Clerk during regular business hours.
COMPTON CITY COUNCIL
AGENDA
05/10/2022
5:30 PM
Closed Session 4:30 P.M.
Public Meeting 5:30 P.M.
CITY COUNCIL CHAMBERS
205 SOUTH WILLOWBROOK AVENUE
COMPTON, CALIFORNIA 90220
OPENING
MOMENT OF SILENCE
PLEDGE OF ALLEGIANCE
ROLL CALL
PUBLIC COMMENTS ON CLOSED SESSION AGENDA ITEMS
(Persons wishing to address the City Council on the Closed Session items may do so at this time.
Comments are limited to one (1) minute per speaker and shall be limited to Closed Session agenda items)
-2- City Council Agenda
5/10/2022 5:30 PM
CLOSED SESSION – 4:30 p.m.
CONFERENCE WITH LEGAL COUNSEL - PENDING LITIGATION
Jerry Durant v. City of Compton, LASC Case No. 22STCV09360 Michael Fletcher, et al. v. City of Compton, LASC Case No. BC670866 Rodney Myers, et al. v. County of Los Angeles, et al, LASC Case No.
BC680294
Pursuant to Government Code Section 54956.9(a)
RECESS TO CLOSED SESSION
HEARING
5:40 P.M. - PUBLIC HEARING - TO RECEIVE COMMENTS ON THE PROPOSED CHANGES TO THE ANNUAL ACTION PLAN (Item 4)
OPENING
PUBLIC MEETING – 5:30 P.M.
REPORT ON CLOSED SESSION ACTION(S)
PUBLIC COMMENTS ON AGENDA ITEMS AND NON-AGENDA MATTERS
COMMENDATORY RESOLUTIONS/PRESENTATIONS
1. CERTIFICATE PRESENTATION - Shannon Jackson - National Nurses Week (Mayor Emma Sharif)
2. CERTIFICATE PRESENTATION - Recognizing "Ramadan" (Mayor Emma Sharif)
PUBLIC COMMENTS ON AGENDA ITEMS AND NON-AGENDA MATTERS
REGULAR AGENDA
CITY MANAGER'S REPORT
3. A REQUEST TO SCHEDULE A PUBLIC HEARING - MITIGATED NEGATIVE DECLARATION NO. 949, CHANGE OF ZONE/SPECIFIC PLAN CASE NO. 2020- 004, STREET VACATION CASE NO. 2020-003 (501-601 East Compton Boulevard) (June 7, 2022 at 5:35 p.m.)
-3- City Council Agenda
5/10/2022 5:30 PM
NEW BUSINESS
4. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE ADOPTION OF SUBSTANTIAL AMENDMENTS TO THE CITY OF COMPTON’S FISCAL YEAR 2021 - 2022 ANNUAL ACTION PLAN OF
THE CONSOLIDATED PLANS BY REALLOCATING UNUSED CDBG FUNDS, AMENDING THE FISCAL YEAR 2021-2022 BUDGET, AND AUTHORIZING THE
CITY MANAGER TO EXECUTE ALL NECESSARY CONTRACTS AND
IMPLEMENT ALL PROGRAMS UNDER THE FISCAL YEAR 2021-2022 ANNUAL
ACTION PLAN
5. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON APPROVING FIRST QUARTER BUDGET AMENDMENT TO THE 2021-2022
FISCAL YEAR BUDGET, TRANSFERRING FUNDS BETWEEN VARIOUS
ACCOUNTS, AND AMENDING THE EXISITING PERSONNEL SUMMARY
COUNCIL COMMENTS
ADJOURNMENT
NEXT REGULAR MEETING: 5/17/2022 @ 5:30 PM
Visit our website at http://www.comptoncity.org
May 10, 2021
TO: MAYOR AND COUNCIL MEMBERS
FROM: CITY MANAGER
SUBJECT: REQUEST TO SCHEDULE PUBLIC HEARING
Mitigated Negative Declaration No. 949
Change of Zone/Specific Plan Case No. 2020-004 (2nd Reading of Ordinance) Street Vacation Case No. 2020-003 (Order Vacation)
The applicant, KBK Enterprises, is proposing a multi-story mixed use residential project on the north west corner of Santa Fe Avenue and Compton Blvd.
The project has been before the City Council for consideration and was partially approved before being continued to resolve some issues. The applicant now desires to complete the project by completing the zone change and specific plan adoption by having the second reading of the ordinance to amend the official zoning map changing the existing Limited Commercial and Parking/High Density Residential zonings to “Specific Plan”, and adopting the 501/601 E. Compton Blvd. Specific Plan. In addition to the zone change second reading, a public hearing is needed to complete the vacation of a portion of Willow Avenue to create a public pedestrian plaza for the project.
The property is located at 501-601 E. Compton Blvd
Staff requests that the City Council schedule a public hearing on this matter for Tuesday, June 7, 2022 at 5:30 p.m.
ROBERT DELGADILLO, SENIOR PLANNER
COMMUNITY DEVELOPMENT DEPARTMENT
THOMAS THOMAS
CITY MANAGER
3. May 10, 2022
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COMPTON AUTHORIZING THE ADOPTION OF SUBSTANTIAL
AMENDMENTS TO THE CITY OF COMPTON’S FISCAL YEAR
2021-2022 ANNUAL ACTION PLAN OF THE CONSOLIDATED
PLANS BY REALLOCATING UNUSED CDBG FUNDS,
AMENDING THE FISCAL YEAR 2021-2022 BUDGET, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE ALL
NECESSARY CONTRACTS AND IMPLEMENT ALL PROGRAMS
UNDER THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN
SUMMARY
Staff requests that the City Council, subsequent to the public hearing thereon, authorize the adoption of substantial amendments to the City of Compton’s Fiscal Year 2021-2022 Annual Action Plan of the Consolidated Plans by reallocating unused Community Development Block Grant (CDBG) Funds and authorizing the City Manager to execute all necessary contracts and implement all programs under the Fiscal Year 2021-2022 Annual Action Plan.
BACKGROUND
The U.S. Department of Housing and Urban Development (HUD) mandates that all entitlement communities submit an Annual (one-year) Action Plan. The Action Plan outlines the spending plan for the HUD funding which focuses on a variety of community development projects. In accordance with this requirement, the City of Compton prepared the draft Fiscal Year 2021-2022 Annual Action Plan, which indicates how the City plans to use the 2021-2022 CDBG, HOME and ESG allocations to address the priority needs this upcoming fiscal year.
On August 11, 2021, City Council adopted Resolution Number 25,533 which adopted the City’s Fiscal Year 2021-2022 Annual Action Plan of the Consolidated Plans. City Council approved a street improvement project but did not approve the proposed non-profit partnerships. City Council recommended that staff conduct another recruitment process to encourage more non-profit agencies to apply.
Currently, HUD’s Fiscal Year 2021-2022 federal grant allocation for Compton’s Community Development Block Grant (CDBG) is $1,478,712 available for programming.
Compton’s HOME program allocation for Fiscal Year 2021-2022 is $548,751, with
4. Staff Report – Substantial Amendment
FY 2021-2022 Action Plan
May 10, 2022 Page 2
program income received in the amount of $102,911 for a total available of $651,662 for programming. Emergency Solutions Grant (ESG) has prior year carryover funds of $235,531.
Grants Division presented the Action Plan to Council and requested the following as it relates to CDBG funding. The Council approved the Residential street project but did not approve the subrecipients to include: Fair Housing Foundation, Champions of Caring, Entrenous Youth Empowerment, and The Children’s Clinic.
FY 2021-2022 CDBG PROGRAM/ACTIVITY AMOUNT
1 CDBG Program Administration $285,742
2 Fair Housing Foundation $ 10,000
3 Champions of Caring $ 16,000
4 Entrenous Youth Empowerment $ 31,600
5 The Children’s Clinic $ 70,000
6 Residential Street Improvements $1,065,370
TOTAL $1,478,712
The current Action Plan, which was passed through Resolution Number 25,533, authorized the Residential Street Improvement Project for $1,065,370 and approved $127,600.00 for, “Contributions to Other Agencies.” Council recommended to conduct another RFP process to allow more opportunities from other agencies. After conducting training sessions and recruitment, the City received the following list of proposals which includes one additional agency compared to the initial request. Children’s Clinic: Children’s clinic may receive $60,000 for comprehensive health and wellness for 2,000 families who reside in Compton.
Champions of Care: Champions of Care may receive $22,600 for family literacy programs focusing on 60 homeless families living in cars, motels, and local shelters.
Southern California Jr. Cricket: Southern California Jr. Cricket may receive $10,000 to provide cricket training, as well as higher education, leadership development, confidence and character building among other skills to 50 youth. Compton Youthbuild: Compton Youth Build may receive $25,000 will provide job training skills to 70 youth.
Staff Report – Substantial Amendment
FY 2021-2022 Action Plan
May 10, 2022 Page 3
Fair Housing Foundation: Fair Housing Foundation may receive $10,000 to provide Fair Housing services to resolve tenant/landlord issues to 120 individuals.
STATEMENT OF ISSUE
The City of Compton is proposing a substantial amendment to the CDBG portion of its Fiscal Year 2021-2022 Annual Action Plan of the Consolidated Plans. This amendment outlines the City’s planned use of the CDBG funding program, which is funded by HUD.
The City is proposing to amend the use of CDBG funding through a substantial amendment and is requesting authorization for the City to partner with proposed nonprofit agencies. The substantial amendment being proposed consists of modifications involving a change in use, purpose, scope, location and funding amounts. The City proposes to reallocate unexpended funds in the amount of $1,090,370 (CDBG) toward current year projects.
The following is a detailed list of the proposed changes:
a. Re-allocation of CDBG program funds FROM projects with unexpended balances
FY 2021-2022
Street Improvement Project: $1,065,370 (CDBG)
These funds were allocated to Public Works to cover the cost associated to a street improvement project. The City received funds from another funding source that was best suited for the project and the City has prior funding for Street improvement to assist with new projects. No CDBG funds were used. Future CDBG funds can be used toward this endeavor if City Management, Council, and the Community so desire.
Re-allocation of CDBG program funds TO new and/or existing projects The City proposes to reallocate the above listed CDBG funds, to the following new and/or existing projects:
ADA Compliant Project (new): $300,000.00
These funds will go towards the cost to cover materials and services utilized to renovate the counter in City Hall to accommodate persons with Disabilities. The current counter and pathway is not conducive to adequate standards as it relates to ADA and has been an issue for the City for several years.
Staff Report – Substantial Amendment
FY 2021-2022 Action Plan
May 10, 2022 Page 4
Gonzales Stadium Project (new): $765,370
These funds will go toward the cost to cover projects to improve the stadium at Gonzales Park in hopes to create a more suitable environment for youth and community as they recreate at the new Dodger Dream field. b. Authorize Agreements with Non-Profit Organizations to Administer HUD Programs
● Children’s Clinic
● Champions of Care
● Southern California Jr. Cricket
● Compton Youthbuild
● Fair Housing Foundation
c. Re-allocation of CDBG program funds FROM projects with unexpended balances
FY 2021-2022
Contributions to Other Agencies: $127,600.00 for Contributions to Other Agencies.
These funds were allocated to cover the cost of proposed non-profit partnerships to conduct a variety of HUD eligible community improvement programs. No CDBG funds were used.
Re-allocation of CDBG program funds TO new and/or existing projects ● Children’s Clinic: $60,000
Children’s clinic may receive $60,000 for comprehensive health and wellness for 2,000 families who reside in Compton.
● Champions of Care: $22,600
Champions of Care may receive $22,600 for family literacy programs focusing on 60 homeless families living in cars, motels, and local shelters.
Staff Report – Substantial Amendment
FY 2021-2022 Action Plan
May 10, 2022 Page 5
● Southern California Jr. Cricket: $10,000
Southern California Jr. Cricket may receive $10,000 to provide cricket training, as well as higher education, leadership development, confidence and character building among other skills to 50 youth.
● Compton Youthbuild: $25,000
Compton Youth Build may receive $25,000 will provide job training skills to 70 youth.
● Fair Housing Foundation: $10,000
Fair Housing Foundation may receive $10,000 to provide Fair Housing services to resolve tenant/landlord issues to 120 individuals.
ALTERNATIVES
The Council has the authority to change the implementation of the HUD funded programs.
If the Council decides against allocating the funds towards proposed projects, the City would have to expend General Fund dollars to implement these activities.
FISCAL IMPACT
This resolution will have no impact on the General Fund. The FY 2021-2022 budget will be amended as follows:
a. Move unexpended funds from account 2800-780-000-4289 (contribution to other agencies) and increase expenditures in the following accounts:
From
Account No. Account Description Amount
2800-780-000-4289 Contribution to Other Agencies $ 127,600 Total $ 127,000
To
Account No. Account Description Amount
2800-780-K29-4289
Contribution to Other Agencies
(Children's Clinic) $ 60,000
Staff Report – Substantial Amendment
FY 2021-2022 Action Plan
May 10, 2022 Page 6
2800-78K-139-4289
Contribution to Other Agencies
(Champions of Caring) $ 22,600
2800-78K-167-4289
Contribution to Other Agencies
(Compton Youthbuild) $ 25,000
2800-780-K05-4289
Contribution to Other Agencies
(Southern California Jr. Cricket) $ 10,000
Total $ 127,600
b. Re-allocate the funds from the Street Improvement Project account 2800-780-K11- 4269 (Other Contract Services) to new designated projects as follow:
From
Account No. Account Description Amount
2800-780-K11-4269 Other Contract Services $ 1,065,370
Total $ 1,065,370
To
Account No. Account Description Amount
2800-780-K03-4269
Other Contract Services
(ADA Compliant Project) $ 300,000
2800-780-K04-4269
Other Contract Services
(Gonzales Stadium Project) $ 765,370
Total $ 1,065,370
Staff Report – Substantial Amendment
FY 2021-2022 Action Plan
May 10, 2022 Page 7
RECOMMENDATIONS
Staff recommends that the Mayor and Council Members adopt the attached resolution.
AUBREY RELF
GRANTS MANAGER
APPROVED AS TO FORWARDING:
THOMAS THOMAS
CITY MANAGER
RESOLUTION NO. ________________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE ADOPTION OF SUBSTANTIAL AMENDMENTS TO
THE CITY OF COMPTON’S FISCAL YEAR 2021-2022 ANNUAL ACTION
PLAN OF THE CONSOLIDATED PLANS BY REALLOCATING UNUSED
CDBG FUNDS, AMENDING THE FISCAL YEAR 2021-2022 BUDGET,
AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL
NECESSARY CONTRACTS AND IMPLEMENT ALL PROGRAMS
UNDER THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) mandates that all entitlement communities submit an Annual (one-year) Action Plan. The Action Plan outlines the spending plan for the HUD funding which focuses on a variety of community development projects; and
WHEREAS, in accordance with this requirement, the City of Compton prepared the draft Fiscal Year 2021-2022 Annual Action Plan, which indicates how the City plans to use the 2021-2022 CDBG, HOME and ESG allocations to address the priority needs this upcoming fiscal year; and
WHEREAS, on August 11, 2021, City Council adopted Resolution Number 25,533 which adopted the City’s Fiscal Year 2021-2022 Annual Action Plan of the Consolidated Plans. City Council approved a street improvement project but did not approve the proposed non-profit partnerships; and
WHEREAS, City Council recommended that staff conduct another recruitment process to encourage more non-profit agencies to apply; and WHEREAS, currently, HUD’s Fiscal Year 2021-2022 federal grant allocation for Compton’s Community Development Block Grant (CDBG) is $1,478,712 available for programming. Compton’s HOME program allocation for Fiscal Year 2021-2022 is $548,751, with program income received in the amount of $102,911 for a total available of $651,662 for programming. Emergency Solutions Grant (ESG) has prior year carryover funds of $235,531; and
WHEREAS, the current Action Plan, which was passed through Resolution Number 25,533, authorized the Residential Street Improvement Project for $1,065,370 and approved $127,600.00 for, “Contributions to Other Agencies.” Council recommended to conduct another RFP process to allow more opportunities from other agencies; and WHEREAS, after conducting training sessions and recruitment, the City received the following list of proposals which includes one additional agency compared to the initial request.
Children’s Clinic: Children’s clinic may receive $60,000 for comprehensive health and wellness for 2,000 families who reside in Compton.
Champions of Care: Champions of Care may receive $22,600 for family literacy programs focusing on 60 homeless families living in cars, motels, and local shelters.
Southern California Jr. Cricket: Southern California Jr. Cricket may receive $10,000 to provide cricket training, as well as higher education, leadership development, confidence and character building among other skills to 50 youth. Compton Youthbuild: Compton Youth Build may receive $25,000 will provide job training skills to 70 youth.
RESOLUTION NO. _________________
Fair Housing Foundation: Fair Housing Foundation may receive $10,000 to provide Fair Housing services to resolve tenant/landlord issues to 120 individuals.
WHEREAS, the City of Compton is proposing a substantial amendment to the CDBG portion of its Fiscal Year 2021-2022 Annual Action Plan of the Consolidated Plans.
This amendment outlines the City’s planned use of the CDBG funding program, which is funded by HUD; and
WHEREAS, the City is proposing to amend the use of CDBG funding through a substantial amendment and is requesting authorization for the City to partner with proposed non-profit agencies. The substantial amendment being proposed consists of modifications involving a change in use, purpose, scope, location and funding amounts.
The City proposes to reallocate unexpended funds in the amount of $1,090,370 (CDBG) toward current year projects; and
WHEREAS, a public hearing was conducted on the proposed amendments on May 10, 2022; and
WHEREAS, the City Council has received all testimony and been fully informed of citizens views; and
WHEREAS, the proposed substantial amendments will be accounted for in the City of Compton FY 2021-2022 Budget.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. That the City Council shall adopt the proposed substantial amendment to Fiscal Year 2021-2022 Annual Action Plan of the Consolidated Plan that proposes to reallocate unexpended funds in the amount of $1,090,370.00, as follows:
Re-allocation of CDBG program funds FROM projects with unexpended balances (non-public service)
FY 2021-2022
Street Improvement Project: $1,065,370 (CDBG)
These funds were allocated to Public Works to cover the cost associated to a street improvement project. The City received funds from another funding source that was best suited for the project and the City has prior funding for Street improvement to assist with new projects. No CDBG funds were used. Future CDBG funds can be used toward this endeavor with if City Management, Council, and the Community so desire.
The City proposes to reallocate the above listed funds TO the following new and/or existing projects:
ADA Compliant Project (new): $300,000.00
These funds will go towards the cost to cover materials and services utilized to renovate the Counter in City Hall to accommodate persons with Disabilities. The current counter and pathway is not conducive to adequate standards as it relates to ADA and has been an issue for the City for Several years.
Gonzales Stadium Project (new): $765,370
These funds will go towards the cost to cover projects to improve the stadium at Gonzales Park in hopes to create a more suitable environment for youth and community as they recreate at the new Dodger Dream field.
RESOLUTION NO. _________________
Section 2. That the City Manager, on the advice and approval of the City Attorney, is hereby authorized to execute all necessary contracts and implement all programs under the Fiscal Year 2021-2022 Annual Action Plan.
Section 3. That the City Council shall adopt the proposed substantial amendment to Fiscal Year 2021-2022 Annual Action Plan of the Consolidated Plan that proposes to reallocate unexpended funds in the amount of $127,600.00 as follows:
Re-allocation of CDBG program funds FROM projects with unexpended balances (non-public service)
FY 2021-2022
Contributions to Other Agencies: $127,600.00 for Contributions to Other Agencies.
These funds were allocated to cover the cost of proposed Non-profit partnerships to conduct a variety of HUD eligible community improvement programs. No CDBG funds were used.
Re-allocation of CDBG program funds TO new and/or existing projects Children’s Clinic: $60,000
Children’s clinic may receive $60,000 for comprehensive health and wellness for 2,000 families who reside in Compton.
Champions of Care: $22,600
Champions of Care may receive $22,600 for family literacy programs focusing on 60 homeless families living in cars, motels, and local shelters.
Southern California Jr. Cricket: $10,000
Southern California Jr. Cricket may receive $10,000 to provide cricket training, as well as higher education, leadership development, confidence and character building among other skills to 50 youth.
Compton Youthbuild: $25,000
Compton Youth Build may receive $25,000 will provide job training skills to 70 youth.
Fair Housing Foundation: $10,000
Fair Housing Foundation may receive $10,000 to provide Fair Housing services to resolve tenant/landlord issues to 120 individuals.
Section 4. That the Fiscal Year 2021-2022 budget will be amended as follows:
a. Move unexpended funds from account 2800-780-000-4289 (contribution to other agencies) and increase expenditures in the following accounts:
From
Account No. Account Description Amount
2800-780-000-4289 Contribution to Other Agencies $ 127,600 Total $ 127,000
To
Account No. Account Description Amount
2800-780-K29-4289
Contribution to Other Agencies
(Children's Clinic) $ 60,000
RESOLUTION NO. _________________
2800-78K-139-4289
Contribution to Other Agencies
(Champions of Caring) $ 22,600
2800-78K-167-4289
Contribution to Other Agencies
(Compton Youthbuild) $ 25,000
2800-780-K05-4289
Contribution to Other Agencies
(Southern California Jr. Cricket) $ 10,000
Total $ 127,600
b. Re-allocate the funds from the Street Improvement Project account 2800-780-K11- 4269 (Other Contract Services) to new designated projects as follows:
From
Account No. Account Description Amount
2800-780-K11-4269 Other Contract Services $ 1,065,370
Total $ 1,065,370
To
Account No. Account Description Amount
2800-780-K03-4269
Other Contract Services
(ADA Compliant Project) $ 300,000
2800-780-K04-4269
Other Contract Services
(Gonzales Stadium Project) $ 765,370
Total $ 1,065,370
Section 5. That a copy of this resolution shall be filed in the office of the City Manager, City Attorney, City Controller and City Clerk and the Grants Division.
Section 6. That the Mayor shall sign and the City Clerk shall attest to the adoption of this resolution.
ADOPTED this _______ day of _____________________, 2022 _______________________________
MAYOR OF THE CITY OF COMPTON
RESOLUTION NO. _________________
ATTEST:
___________________________________
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF COMPTON
I, Alita Godwin, City Clerk of the City of Compton, hereby certify that the foregoing resolution was adopted by the City Council, signed by the Mayor, and attested to by the City Clerk at a regular meeting thereof held on the ______ day of _____________, 2022.
That said resolution was adopted by the following vote, to wit:
AYES: COUNCIL MEMBERSNOES: COUNCIL MEMBERSABSTAIN: COUNCIL MEMBERSABSENT: COUNCIL MEMBERS- ___________________________________
CITY CLERK OF THE CITY OF COMPTON
May 10, 2022
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: CITY MANAGER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON APPROVING FIRST QUARTER BUDGET AMENDMENT TO THE 2021-
2022 FISCAL YEAR BUDGET, TRANSFERRING FUNDS BETWEEN
VARIOUS ACCOUNTS, AND AMENDING THE EXISITING PERSONNEL
SUMMARY
SUMMARY
Adoption of this resolution will authorize amendments to the Fiscal Year 2021-2022 Adopted Budget which was adopted by the City Council on June 22, 2021. Consistent with its commitment to prudence, the Council will review the First Quarter Fiscal Year 2021-2022 expenditures.
Based on this review, Council will consider a resolution to amend expenditure appropriations to address budgetary issues that arose between the adoption of the budget and the present. The City Manager is recommending adjustments needed in order to maintain a balanced budget and correct any inadvertent errors. All of these transactions are “cost neutral” (i.e. they do not increase or decrease net Budget appropriations).
BACKGROUND
The annual budget is a planning document used to fund policies and programs as directed by Council and is based on assumptions and projections. As a result of the daily monitoring, staff revised expenditures to make necessary budget corrections.
STATEMENT OF THE ISSUE
Budget Adjustment for Fiscal Year 2021-2022
The proposed budget amendments are all cost neutral and the total revenues and expenditures remain balanced as projected for the Fiscal Year 2021-2022 Adopted Budget.
The following budget transactions are necessary to correct any inadvertent errors realized since the adoption of the Fiscal Year 2021-2022 Budget.
5. Staff Report – Resolution Approving Corrections
FY 2021-22 Budget Amendments/Transferring
Funds Between Various Accounts
May 10, 2022, page 2
1) Bond Payment Adjustments
Per recommendation from the City Controller and external auditors, staff is reallocating the funding accounts for Lease Revenue Bonds (2008 & 2016), and Successor Agency Bonds. This reallocation of payments does not affect the overall budget balancing and only transfers the payments to different fund accounts. The following are the proposed changes:
Decrease Expenditure Accounts:
1001-610-000-4282 Interest Expense
$1,435,613.00
1001-610-000-4297 Debt Service Payment $2,185,000.00
1201-910-000-4282 Interest Expense $4,682,226.00
1201-910-000-4297 Debt Service Payment $3,375,000.00
Total $11,667,839.00
Increase Expenditure Accounts:
1201-910-000-4290 Contrib. to Oth. Funds
$8,057,226.00
1001-610-000-4290 Contrib. to Oth. Funds $3,620,613.00 Total $11,667,839.00
Increase Revenue Accounts (Transfer-In):
3030-610-000-3902 Contrib. from Oth. Funds $3,620,613.00 3070-000-000-3902 Contrib. from Oth. Funds $2,590,875.00 3080-000-000-3902 Contrib. from Oth. Funds $2,960,448.00 3090-000-000-3902 Contrib. from Oth. Funds $2,505,903.00 Total $11,667,839.00
Increase Revenue Accounts (Transfer-In):
3030-610-000-4282 Interest Expense $428,488.00
3030-610-000-4297 Debt Service Payment $545,000.00
3030-610-016-4282 Interest Expense $1,007,125.00
3030-610-016-4297 Debt Service Payment $1,640,000.00
3070-000-000-4282 Interest Expense $1,075,875.00
3070-000-000-4297 Debt Service Payment $1,515,000.00
3080-000-000-4282 Interest Expense $2,960,448.00
3090-000-000-4282 Interest Expense $1,860,000.00
3090-000-000-4297 Debt Service Payment $645,903.00
Total $11,667,839.00
Staff Report – Resolution Approving Corrections
FY 2021-22 Budget Amendments/Transferring
Funds Between Various Accounts
May 10, 2022, page 3
2) Revised Budget Pages
Staff used a new software to produce the Fiscal Year 2021-2022 Budget Book (Book) and discovered that sections of the book =were tabulated incorrectly and reflected the wrong totals being displayed in the Fund Summary pages.
The effected pages have been updated to reflect the correct totals and staff will update the Fiscal Year 2021-2022 Adopted Budget Book available in the City Clerk’s Office as well as the online version on the City’s website.
A summation of the effected pages and corrections are below with detailed descriptions following:
Page Section Original Total Updated Total
39 Community Development $8,976,361.00 $18,710,295.00
39 Housing Successor 0 $185,500.00
39 Public Works –
Engineering $41,558,285.00 $43,648,085.00
39 Successor Agency –
Financing Requirements $12,947,626.00 $14,365,445.00
39 Operating Transfer Out 0 $13,857,226.00
39 Operating Transfers In 0 $13,857,226.00
187 SARAFF $14,334,853.00 $14,444,428.00
187
Interest Revenue Income
– Fund 1201 0 $592,431.00
187
Interest Revenue Income
– Fund 3002 0 $79,486.00
187
Interest Revenue Income
– Fund 3070 0 $20,723.00
187
Interest Revenue Income
– Fund 3080 0 $49,779.00
187
Interest Revenue Income
– Fund 3090 0 $19,306.00
187
Transfer In - Tax
Allocation Bond
Successor Agency $5,800,000.00 $5,800,000.00
187
Transfer In – Successor
Agency Bond 2010A $2,590,875.00 $2,590,875.00
Staff Report – Resolution Approving Corrections
FY 2021-22 Budget Amendments/Transferring
Funds Between Various Accounts
May 10, 2022, page 4
Page Section Original Total Updated Total
187
Transfer In – Successor
Agency Bond 2010B $2,960,448.00 $2,960,448.00
187
Transfer In – Successor
Agency Bond 2010C $2,505,903.00 $2,505,903.00
187 Department Total $26,619,3523.00 $28,222,671.00
22 Actual Revenue Receipt
at April 30, 2021 0 $40,493,594.00
39 Total Expenses $197,830,633.00 $223,104,327.00
39 Total Revenue $197,554,181.00 $233,808,432.00
The changes to properly reflect correct fund balances are as follows:
On Page 39 of the Budget Book, total expenses are listed $197,830,633. This was incorrect because the line above it, on the same page, the total department expenses did not represent the accurate totals. For the Department of Community Development the total should have displayed as $18,710,295. For the Department of Housing Successor the total that should $185,500. For the Department of Public Works-Engineering, the amount that should have been displayed was $43,648,085. On Pages 101 and 163 are the amounts that are shown as the total for each department respectively.
On Page 39, the department total for Successor Agency mistakenly only showed expenses as $12,947,626. Further on Page 1 of the Successor Agency Section, total “Financing Requirements” should have displayed a total of $14,365,445 for Fund 1201. This is made up of “Transfers-Out” to the Successor Agency Debt Service Funds with a total amount of $13,857,226, as well as personnel costs of $86,219 and operations & maintenance costs of $422,000. The Financing Requirements Section should also have displayed the amount of $13,857,226 as Principal & Interest Debt Service costs that will be paid out of the Successor Agency Debt Service Fund, only after having a “Transfer-In” of $13,857,226 from Successor Agency Fund 1201 as described earlier in the paragraph. On the same page of the Successor Agency Section for the table “Resources/Revenue Amounts” the adopted amount of SARAFF revenue should have been stated as $14,444,428. Also in the “Resources/Revenue Amounts” should have been reported that Interest Revenue Income was anticipated to be as follows: $592,431 Staff Report – Resolution Approving Corrections
FY 2021-22 Budget Amendments/Transferring
Funds Between Various Accounts
May 10, 2022, page 5
for Fund 1201; $79,486 for Fund 3002; $20,723 for Fund 3070; $49,779 for Fund 3080; $19,306 for Fund 3090. Further within the same table, the revenue source name of “Transfer-In” should have been combined with the following resource descriptions: Tax Allocation Bond Successor Agency should have been stated as “Transfer-In Tax Allocation Bond Successor Agency;” Successor Agency Bond 2010A should have been stated as “Transfer-In Successor Agency Bond 2010A;” Successor Agency Bond 2010B should have been stated as “Transfer-In Successor Agency Bond 2010B;” Successor Agency Bond 2010C should have been stated as “Transfer-In Successor Agency Bond 2010C.” The total amount for the entire group of Successor Agency related funds was supposed to be shown for Financing Requirements was the sum of
$13,857,226 and $14,365,445, or $28,222,671. The total amount for the entire group of Successor Agency Funds was supposed to be shown for Resource/Revenue amount was supposed to be the sum of $14,444,428, $761,725 (Interest Revenue total across all Successor Agency funds), $13,857,226 (Transfers-In), $30,592 (Contributions from Retirement Fund). This yields a total of $29,093,971. This analysis shows that the anticipated revenues for the Successor Agency related group of funds is greater than the anticipated expenses for the same group of funds. The total expenditures of $28,222,671 should have been listed as the “Departmental Total” for Successor Agency expenses on Page 39.
Total expenses (including “Transfers-Out”) should have been $223,104,327 on Page 39 of the Budget Book.
On Page 39, the total of revenues that were stated were $167,105,939. However, unfortunately the budget book did not properly pull all of the revenues into the correct totals from all the other sections of the budget. Additionally, as mentioned earlier, the total revenues for Successor Agency related group of funds was $29,093,971 (including Transfers-In). If the revenues had summed correctly, including the Transfers-In, and with the updated SARAFF anticipated revenue as mentioned earlier, then the total of revenues should have been stated as $193,314,938 on Page 39.
On Page 22, in the column “Actual Revenue Receipt at April 30, 2021” the amount of $40,493,594 should have been stated. This was the amount of Bond Proceeds that were obtained by the City in March of 2021 and that were available as part of the Beginning Fund Balance in Fund 3031 (Debt Service related to MTA Bonds).
Staff Report – Resolution Approving Corrections
FY 2021-22 Budget Amendments/Transferring
Funds Between Various Accounts
May 10, 2022, page 6
The total of anticipated revenues and Transfers-In ($193,314,938) plus the amount of bond proceeds available in Fund Balance at beginning of Fiscal Year 2021-2022 ($40,493,494) yields a total of $233,808,432 that is available to cover the anticipated total expenditures of $223,104,327, yielding a balanced budget, where anticipated expenditures do not exceed anticipated funding sources.
Staff will update the in the Fiscal Year 2021-2022 Adopted Budget Book available in the City Clerk’s Office as well as the online version on the City’s website. 3) Sheriff’s Department
At the Council’s request, staff coordinated a Street Takeover Task Force to address the growing issue with street racing within the City’s limits. This task force was outside the scope of services covered under the current contract with Los Angeles County Sheriff’s Department, so additional funds are needed to cover the expense.
Decrease Budget Accounts:
1004-610-000-4269 Measure P $ 40,000.00
Total $ 40,000.00
Increase Budget Accounts:
1001-680-000-4271 Sheriff’s Department $ 40,000.00
Total $ 40,000.00
4) Hardy and Harper Road Repair Contract
During the Council Meeting held on May 4, 2021, the Council issued a contract to Hardy & Harper, Inc. for road repair services for Two Million Three Hundred Forty - Five Thousand and Two Hundred Dollars ($2,345,200) under Resolution No. 25,464.
Under that resolution, Six Hundred Forty-Three Thousand ($643,000) was allocated in Fiscal Year 2021 with the remaining balance of One Million Seven Hundred and Two Thousand Two Hundred Dollars ($1,702,200) to be allocated in Fiscal Year 2022.
Due to an oversight, the $1,702,200 was not allocated in the Fiscal Year 2021-2022 Budget and requires an amendment to allocate the funds as follows:
Staff Report – Resolution Approving Corrections
FY 2021-22 Budget Amendments/Transferring
Funds Between Various Accounts
May 10, 2022, page 7
Decrease Expenditure Account:
1004-610-000-4269 Other Contract Services $1,702,200.00 Total $1,702,000.00
Increase Expenditure Account:
1004-610-000-4300 Capital Outlay $1,702,000.00
Total $1,702,000.00
The proposed budget amendments will increase the level in services provided and correct any inadvertent errors while maintaining a balanced 2021-2022 Fiscal Year Budget. All changes are to take effect on the approval of this resolution.
FISCAL IMPACT
The City of Compton has a balanced budget and the recommendations are cost neutral and does not have a negative impact on the City’s balanced budget for FY 2021-2022.
ALTERNATIVE
The City Council has the option of considering these recommendations individually, collectively, or in the numbered groups and then direct staff accordingly.
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution authorizing the City Manager to make budget amendments to the Fiscal Year 2021-2022 Budget.
THOMAS THOMAS
CITY MANAGER
RESOLUTION NO. __________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
APPROVING FIRST QUARTER BUDGET AMENDMENT TO THE
2021-2022 FISCAL YEAR BUDGET, TRANSFERRING FUNDS
BETWEEN VARIOUS ACCOUNTS, AND AMENDING THE EXISITING
PERSONNEL SUMMARY
WHEREAS, pursuant to Resolution No. 25,512, the City Council of the City of Compton adopted the Fiscal Year 2021-2022 budget on June 22, 2021; and WHEREAS, it is necessary in order to balance all expenditures, correct any inadvertent errors, and increase the City’s level of service; and WHEREAS, the City Council directed staff to coordinate a Street Takeover Task Force with the Los Angeles County Sheriff’s Department to address street racing within the City’s Limits. Such an operation was outside of the scope of services of the current contract and additional funding is needed to cover the expense; and WHEREAS, the City Controller and external auditors have recommended that the Lease Revenue Bonds (2008 & 2016) funding accounts be reallocated to coincide the General Accepted Accounting Procedures for reporting purposes; and WHEREAS, as originally reported in the Adopted Fiscal Year 2021-2022 Budget, errors were found in the totals of various pages of the budget that require correction. Staff recommends the following pages be amended to show the true allocations be reflected in the budget:
Page Section Original Total Updated Total
39 Community Development $8,976,361.00 $18,710,295.00
39 Housing Successor 0 $185,500.00
39 Public Works – Engineering $41,558,285.00 $43,648,085.00 39 Successor Agency –
Financing Requirements $12,947,626.00 $14,365,445.00
39 Operating Transfer Out 0 $13,857,226.00
39 Operating Transfers In 0 $13,857,226.00
187 SARAFF $14,334,853.00 $14,444,428.00
187
Interest Revenue Income –
Fund 1201 0 $592,431.00
187
Interest Revenue Income –
Fund 3002 0 $79,486.00
187
Interest Revenue Income –
Fund 3070 0 $20,723.00
187
Interest Revenue Income –
Fund 3080 0 $49,779.00
187
Interest Revenue Income –
Fund 3090 0 $19,306.00
187
Transfer In - Tax Allocation
Bond Successor Agency $5,800,000.00 $5,800,000.00
187
Transfer In – Successor
Agency Bond 2010A $2,590,875.00 $2,590,875.00
187
Transfer In – Successor
Agency Bond 2010B $2,960,448.00 $2,960,448.00
187
Transfer In – Successor
Agency Bond 2010C $2,505,903.00 $2,505,903.00
187 Department Total $26,619,3523.00 $28,222,671.00
22 Actual Revenue Receipt at
April 30, 2021 0 $40,493,594.00
39 Total Expenses $197,830,633.00 $223,104,327.00
39 Total Revenue $197,554,181.00 $233,808,432.00
Resolution No. ____________
WHEREAS, Staff will update the in the Fiscal Year 2021-2022 Adopted Budget Book available in the City Clerk’s Office as well as the online version on the City’s website; and
WHEREAS, the proposed Budget Amendments will correct any inadvertent errors while maintaining a balanced 2021-2022 Fiscal Year Budget. All changes are to take effect on the approval of this resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the City Manager is hereby authorized to make the following budget amendment to the Fiscal Year 2021-2022 Adopted Budget for Bond Payments (2008 & 2016):
Decrease Expenditure Accounts:
1001-610-000-4282 Interest Expense
$1,435,613.00
1001-610-000-4297 Debt Service Payment $2,185,000.00
1201-910-000-4282 Interest Expense $4,682,226.00
1201-910-000-4297 Debt Service Payment $3,375,000.00
Total $11,667,839.00
Increase Expenditure Accounts:
1201-910-000-4290 Contrib. to Oth. Funds
$8,057,226.00
1001-610-000-4290 Contrib. to Oth. Funds $3,620,613.00 Total $11,667,839.00
Increase Revenue Accounts (Transfer-In):
3030-610-000-3902 Contrib. from Oth. Funds $3,620,613.00 3070-000-000-3902 Contrib. from Oth. Funds $2,590,875.00 3080-000-000-3902 Contrib. from Oth. Funds $2,960,448.00 3090-000-000-3902 Contrib. from Oth. Funds $2,505,903.00 Total $11,667,839.00
Increase Revenue Accounts (Transfer-In):
3030-610-000-4282 Interest Expense $428,488.00
3030-610-000-4297 Debt Service Payment $545,000.00
3030-610-016-4282 Interest Expense $1,007,125.00
3030-610-016-4297 Debt Service Payment $1,640,000.00
3070-000-000-4282 Interest Expense $1,075,875.00
3070-000-000-4297 Debt Service Payment $1,515,000.00
3080-000-000-4282 Interest Expense $2,960,448.00
3090-000-000-4282 Interest Expense $1,860,000.00
3090-000-000-4297 Debt Service Payment $645,903.00
Total $11,667,839.00
SECTION 2. That the City Manager is hereby authorized to update the Fiscal Year 2021-2022 Budget Book to reflect the updated pages.
SECTION 3. That the City Manager is hereby authorized to make the following budget amendment to the Fiscal Year 2021-2022 Adopted Budget for Sheriff Department allocation:
Resolution No. ___________
Decrease Budget Accounts:
1004-610-000-4269 Salary Savings $ 40,000.00
Total $ 40,000.00
Increase Budget Accounts:
1001-680-000-4271 Permanent Salaries $ 40,000.00
Total $ 40,000.00
SECTION 4. That the City Manager is hereby authorized to make the following budget amendment to the Fiscal Year 2021-2022 Adopted Budget for Sheriff Department allocation:
Decrease Expenditure Account:
1004-610-000-4269 Other Contract Services $1,702,200.00 Total $1,702,000.00
Increase Expenditure Account:
1004-610-000-4300 Capital Outlay $1,702,000.00
Total $1,702,000.00
SECTION 5. That all changes are to take effect immediately.
SECTION 6. That a certified copy of this Resolution shall be filed in the Offices of the City Clerk, City Attorney, City Manager and City Controller.
SECTION 7. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this _______ day of ______________, 2022.
_______________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
___________________________________
CITY CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Alita Godwin, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council, signed by the Mayor, and attested by the City Clerk at a regular meeting thereof held on the _____ day of ______, 2022.
Resolution No. ___________
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCIL MEMBERSNOES: COUNCIL MEMBERSABSENT: COUNCIL MEMBERSABSTAIN: COUNCIL MEMBERS- ___________________________________
CITY CLERK OF THE CITY OF COMPTON