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HomeMy WebLinkAbout2003-09-23 - AGENDA REPORTS - TMC BUDGET (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT Agenda Item: Of CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: September 23, 2003 Jeffrey Lambert TRANSIT MIXED CONCRETE (TMC) BUDGET Planning and Building Services RECOMMENDED ACTION City Council transfer $50,000 in TMC Reserves (Account #2250-7402) and an additional $96,675 in Council Contingency (Account #2250-7401) into the TMC operating account (Account #3110-8110 Project 06.00) for a total appropriation of $146,675. Of the requested $146,675, $22,500 will be contingent upon City Council approval to continue the Jamison and Sullivan contract contained within a seperate agenda item for the September 23, 2003 City Council meeting. BACKGROUND To date, the City Council has appropriated a total of $2,402,271 since 1999 for the opposition effort. The most recent appropriation of $50,000 into the TMC operating account occurred during the 2003-2004 budget process. In addition, the City Council also allocated $50,000 into the TMC reserve account. Currently, the balance of the TMC operating budget totals $136,375. Staff estimates that an additional $146,675 will be needed to continue the opposition strategy through December 2003. Thus, this forecast will require the transfer of TMC reserves ($50,000) into the operating account and an additional appropriation of $96,675 from Council Contingency. The following is a summary of anticipated expenditures by category and the activities expected to take place through December 2003: £idJ �luL4 J F TMC FORECAST SUMMARY (Through 12/2003) Legal Strategy $165,750 Legislative Advocacy $27,500 Environmental Research $25,000 Community Outreach $64,800 TOTAL FORECAST $283,050 TOTAL OPERATIONAL BUDGET BALANCE TOTAL RESERVE BALANCE $136,375 $50,000 ADDITIONAL FUNDS NEEDED 1 $96,675 Legal Strategy ($165,750) It is estimated that the legal strategy will cost $165,750 to implement through the 2003 calendar year. This estimate assumes continued monitoring of the Cemex vs. County of Los Angeles lawsuit, further actions in the City vs. U.S. Department of Interior lawsuit, attorney client privilege meetings, and meetings with various government agencies. Legislative Advocacy ($27,500) It is estimated that a total of $27,500 will be required to continue legislative advocacy efforts at the County, State and Federal levels. The City currently maintains contracts with Afriat Consulting Group and Jamison and Sullivan. Afriat Consulting Group estimates that their efforts will cost the City $5,000 through December. In addition, the City's contract with Jamison and Sullivan requires the City to pay a $7,500 per month retainer. The Jamison and Sullivan contract will terminate September 2003. If the City Council wishes to extend this contract to complete the calendar year an additional $22,500 will be required ($7,500 x 3 months). Continuation of Jamison and Sullivan's contract will be contingent upon City Council approval of a seperate agenda item for the September 23, 2003 City Council Meeting. Environmental Research ($25,000) According to Willdan, an estimated $25,000 will be needed to continue any necessary environmental research to support the City's legal strategy. Community Outreach ($64,800) Staff estimates that an additional $64,800 will be needed to successfully implement the outreach strategy. Expenditures for the outreach strategy will include the following: 1. TV Ads — $15,800 ($1,500 x 2 ads per month x 5 months + $800 re -voice fee) 2. Print Ads — $9,000 ($1,000 Country Journal; $5,000 The Signal; $3,000 Antelope Valley) 3. Special Post Card Mailer — $10,000 ($1,500 design; $4,500 printing; $4,000 postage) TMC Demonstration / Rally — $30,000 ALTERNATIVE ACTIONS 1. Do not approve appropriation of additional funds 2. Other action as determined by the City Council. FISCAL IMPACT The request will reduce the City Council's Contingency Fund by 10 percent or $96,675 from the existing $1,000,000. In the event that this action is approved by the City Council, the Council Contingency Fund will have a remaining available balance of $903,325. This appropriation will also leave a zero balance in the TMC Reserve account. Since this request only completes the calendar year, staff anticipates that additional funds may be requested as part of the mid -year budget process to continue the present level of opposition for the rest of the 2003-2004 fiscal year.