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061 of 1999 - Amending Salt Lake City Ordinance No. 48 of 1998 which adopted the Final Budget of Salt Lake City, i0 99-1 B 99-6 SALT LAKE CITY ORDINANCE No. 61 of 1999 (Amending Salt Lake City Ordinance No. 48 of 1998 which adopted the Final Budget of Salt Lake City, including the employment staffing document, for Fiscal Year 1998-99) AN ORDINANCE AMENDING SALT LAKE CITY ORDINANCE NO. 48 OF 1998 WHICH APPROVED, RATIFIED AND FINALIZED THE BUDGET OF SALT LAKE CITY, UTAH, INCLUDING THE EMPLOYMENT STAFFING DOCUMENT, FOR THE FISCAL YEAR BEGINNING JULY 1, 1998 AND ENDING JUNE 30, 1999. PREAMBLE On June 16, 1998, the Salt Lake City Council approved, ratified and finalized the budget of Salt Lake City, Utah, including the employment staffing document, for the fiscal year beginning July 1, 1998 and ending June 30, 1999, in accordance with the requirements of Section 118, Chapter 6, Title 10 of the Utah Code Annotated, and said budget, including the employment staffing document, was approved by the Mayor of Salt Lake City, Utah. The City's Policy and Budget Director, acting as the City's Budget Officer, prepared and filed with the City Recorder proposed amendments to said duly adopted budget, including the amendments to the employment staffing document, copies of which are attached hereto, for consideration by the City Council and inspection by the public. The City Council fixed a time and place for a public hearing to be held on June 8, 1999 to consider the attached proposed amendments to the budget, including the employment staffing document, and ordered notice thereof be published as required by law. Notice of said public hearing to consider the amendments to said budget, including the employment staffing document, was duly published and a public hearing to consider the attached amendments to said budget, including the employment staffing document, was held on June 8, 1999, in accordance with said notice at which hearing all interested parties for and against the budget amendment proposals were heard and all comments were duly considered by the City Council. All conditions precedent to amend said budget, including the employment staffing document, have been accomplished. Be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. Purpose. The purpose of this Ordinance is to amend the budget of Salt Lake City, including the employment staffing document, as approved, ratified and finalized by Salt Lake City Ordinance No. 48 of 1998. SECTION 2. Adoption of Amendments. The budget amendments, including amendments to the employment staffing document, attached hereto and made a part of this Ordinance shall be, and the same hereby are adopted and incorporated into the budget of Salt Lake City, Utah, including the employment staffing document, for the fiscal year beginning July 1, 2 1998 and ending June 30, 1999, in accordance with the requirements of Section 128, Chapter 6, Title 10, of the Utah Code Annotated. SECTION 3. Certification to Utah State Auditor. The City's Policy and Budget Director, acting as the City's Budget Officer, is authorized and directed to certify and file a copy of said budget amendments, including amendments to the employment staffing document, with the Utah State Auditor. SECTION 4. Filing of copies of the Budget Amendments. The said Budget Officer is authorized and directed to certify and file a copy of said budget amendments, including amendments to the employment staffing document, in the office of said Budget Officer and in the office of the City Recorder which amendments shall be available for public inspection. SECTION 5. Effective Date. This Ordinance shall take effect on its first publication. Passed by the City Council of Salt Lake City, Utah, this 8th day of June , 1999. ATTEST: HIEF DEPUTY I Y ECORDER 3 Transmitted to the Mayor on June 8, 1999. Mayor's Action: xx Approved Vetoed ATTEST: IEF (SE RECORDER Bill No. of 1999. Published: &VW, LSI 099. G:\ordina99\Amending budget 6-8.doc 4 Issues in Budget Amendment - June 1999 1. Impact Fee Special Consultant $ 250,000 2. Special Olympic Related Travel $ 50,000 3. Unemployment Compensation Fund $ 45,000 Adjustment 4. Early Retirement Incentive Program $ 1,438,600 5. E911 Fund revenue to General Fund (revenue) $ 250,000 6. Police Department Items $ 92,863 7. Fire Department FLSA Liability $ 100,200 8. Landfill Gas Design & Construction Project $ 2,400,000 9. Isaac Chase Home Renovation $ 358,000 10. Edgehill Road Improvements $ 4,412 11. Underground Storage Tank (UST) $ 5,200 Remediation 2 Issue Request #1 - Impact Fee Special Consultant $ 250,000 Budget Impact General Fund The City Council has requested that a special consultant be hired to conduct the studies necessary to implement impact fees in areas where they are eligible. This practice of hiring special consultants to do these studies is consistent with recommended practice. The cost could run as high as $250,000 to conduct these studies. It is recommended that we appropriate these funds in the City Council Office budget. The source of funds is recommended to come from recognizing additional revenue anticipated to be received into the General Fund and not previously appropriated. Fund Department / Category Decrease Increase General Fund General Fund Revenue (R) $250,000 City Council/special consultant (E) $250,000 Issue Request #2 - Special Olympic Related Travel $ 50,000 Budget Impact General Fund The City should create a budget of $50,000 for City travel to observe the Sydney, Australia games. This travel gives key City Officials a unique opportunity to observe the administrative behaviors of the local government during this unusually large event. It also gives them an opportunity to see how the Olympic officials handle the problems which may come up and see how their plans have worked compared to the actual event. Travel arrangements must be booked this far in advance of the Games to insure acceptance. The funding source for this expense will come from recognizing additional revenue anticipated to be received into the General Fund and not previously appropriated. 3 Fund Department / Category Decrease Increase General Fund General Fund Revenue (R) $50,000 DMS/Office of Olympic Opportunity $50,000 Planning/travel (E) Issue Request #3 - Unemployment Compensation Fund Adjustment $ 45,000 Budget Impact Insurance and Risk Management Fund When the budget was put together for the City's self insurance fund which pays unemployment insurance for former city employees the estimate did not assume a larger than usual number of terminations. Throughout the year, a number larger than anticipated was experienced by a couple of city areas. This amendment will adjust the Unemployment Fund budget to be consistent with the expenses it has had to pay out. The funding will come from the other funds that incurred the additional unemployment costs. None of this increase is coming from the General Fund. This adjustment is mainly for budgeting and accounting purposes because the actual billings to the departments affected will bring in the necessary revenue to equal the additional expenses needed. Fund Department / Category Decrease Increase Insurance and Unemployment Insurance premiums (R) $45,000 Risk Mgmt. Unemployment Insurance payments (E) $45,000 Fund Issue Request #4 - Early Retirement Incentive Program General Fund Transfer $1,288,600 Insurance and Risk Administration Fund $150,000 It is requested to establish an appropriation of $1,438,600 in the Insurance and Risk Administration Fund. This yearly request is made at this time in order to take advantage of any remaining expense budget balances at year end and pay early retirement benefits out of the current fiscal year instead of forcing departments next year to hold necessary positions unfilled until the costs are 4 covered. Funding will come from savings from departments as they recognize it. Additional funding will come from within the Risk Fund excess fund balances. Further, a small amount of funding will come by recognizing additional revenue anticipated to be received into the General Fund and not previously appropriated. No funding will be brought from current fund balance. The amount requested is based on the total number of individuals eligible under the early retirement provision. Fund Department / Category Decrease Increase General Fund Communication Franchise Revenue (R) $5,600 General Fund Balance from departmental savings (FB) $1,283,000 Non Departmental transfer to Insurance and $1,288,600 Insurance and Risk Administration Fund (E) Risk Administration LTD Fund Balance (FB) $100,000 Fund Risk Administration Fund Balance (FB) $50,000 Transfer from General Fund (R) $1,288,000 Early retirement incentive pay (E) $1,438,600 Issue Request #5 - E911 Fund revenue to General Fund $ 250,000 Budget Impact E911 Fund $250,000 The City should increase the revenue budget of the General Fund to recognize additional revenue for Police dispatch. Additional dispatch service costs were eligible for E911 funding and this adjustment will allow for the expenditures in the Police department paid for E911 related dispatch costs to be covered with the appropriate funding source. Fund Department / Category Decrease Increase E911 Fund Transfer to the General Fund (E) $250,000 E911 Fund Balance (FB) $250,000 General Fund Transfer from E911 Fund (R) $250,000 5 Issue Request #6 - Police Department Items $ 92,863 Budget Impact General Fund The Police Department will, under certain circumstances, assign police officers to work security for non -city entities. When this occurs, the entity will reimburse the department for the costs of the officer. The department has received $90,349 of this type of revenue and requests that it be appropriated to their overtime account to cover the expenses incurred. The work was performed on the behalf of the Metro Narcotics Task Force and the Federal Fugitive Task Force, as well as from miscellaneous security service and driving under the influence (DUI) saturation patrols. Additionally, the department has received $2,514 in reimbursements from property owners for "no trespassing" signs. Fund Department / Category Decrease Increase General Fund Police/misc. revenue (R) $92,863 Police/overtime expense $90,349 and supplies (E) $2,514 Issue Request #7 - Fire Department FLSA Liability $ 100,200 Budget Impact General Fund The City should increase the Fire Department budget for overtime expenses owed due to non-compliance with the Fair Labor Standards Act (FLSA) . Prior to February 1999 the Fire Department worked entry-level trainees under FLSA section 207(k). It was the belief of the Department prior to 1999 that all fire protection employees, including entry-level trainees, were covered under this section. In February 1999, Local 1645 brought to the attention of the Department that based upon a court decision from another jurisdiction, entry level trainees did not qualify under FLSA section 207(k). FLSA section 207(k) states " for fire protection employees, overtime must be paid for hours worked beyond 212 during the 28-day work period" . 6 Upon learning of Local 1645's complaint the Fire Department requested an official opinion from the City Attorneys' Office. Lyn Creswell, Assistant City Attorney, noted that while this section does apply to most Fire Department employees it does not apply to trainees. Section 207(k) states that a firefighter must: • "have been trained to the extent required by state statute or local ordinance"; • "have the legal authority and responsibility to engage in the prevention, control or extinguishment of a fire of any type" ; and • "perform activities that are required for, and directly concerned with, the prevention, control or extinguishment of fires" . In his decision Mr. Creswell stated that "entry-level trainees do not meet these three qualifications for the 207(k) exemption." He also said that the Fire Department "should compensate all entry-level trainees who worked overtime hours during the two years (the FLSA statute of limitation period) prior to the date of your initial belief that the City might be liable for overtime" . The Department determined that it had a liability with 45 employees. Based on this information the Fire Department has determined its liability to be $100,200 and is therefore requesting funding. The Department has since changed its procedures and will not incur any additional liability. The funding source for this expense will come from recognizing additional revenue anticipated to be received into the General Fund and not previously appropriated. Fund Department / Category Decrease Increase General Fund Fire / Personal Services (E) $100,200 General Fund Revenue (R) $100,200 Issue Request #8 -Landfill Gas Design & Construction Project $ 2,400,000 Budget Impact CIP Fund The City should create a budget of $2,400,000 for Landfill Gas Design & Construction at the Salt Lake Valley Solid Waste Facility (landfill). The State of Utah Air Quality Plan for existing designated municipal solid waste landfills was approved by the United States Environmental Protection Agency in March 1998. This plan established air quality regulations and a schedule for testing and implementation of gas collection systems. The regulations were retroactive and required operators of landfills that accepted waste after November 1987 to submit initial design capacity and non - methane organic compounds (NMOC) emission rates to the Division of Air Quality by June 15, 1998. The air quality plan provided a standard formula to calculate the NMOC emission rate. The plan also provided for a three tier testing process to refine the emission rate. Since the emission rate calculated by the standard formula for the landfill is greater than the allowable amount, the tier one and two testing has been performed. The emission rate determined by the tier two testing still exceeds the allowable rate. Landfill personnel have discussed tier three testing with landfill consultants, and their consensus is that the landfill will need to have a gas collection system designed and a contract awarded for construction by December 31, 1999. The requested budget will allow this work to be designed and constructed. The source of funding is the Salt Lake Valley Solid Waste Facility, and the budget amendment will recognize this funding arrangement. No other funding sources are required. Fund CIP Fund Department / Category CIP / Salt Lake Valley Solid Waste Facility / Landfill Gas Design & Construction (R) CIP / Salt Lake Valley Solid Waste Facility / Landfill Gas Design & Construction (E) Decrease Increase $2,400,000 $2,400,000 Issue Request #9 - Isaac Chase Home Renovation $ 358,000 Budget Impact CIP Fund The City should increase the CIP budget to appropriate contributions received for the renovation of the Isaac Chase Home. A new cost center with a budget of $100,000 should be created to track a contribution from the LDS Church for the Isaac Chase Home Renovation. A separate cost center for this project should be increased by $258,000 because of an additional donation received from the Utah Arts Council. The Arts Council had previously donated 8 $75,000 for this project, and those funds were appropriated earlier this fiscal year. Two other CIP cost centers have $275,873 to be used for the renovation, bringing the total amount available to $708, 873. Establishing these additional budgets will allow the construction work to be bid and renovation to begin. Fund Department / Category Decrease Increase CIP Fund LDS Church (R) $100,000 CIP / Isaac Chase Home Renovation (E) $100,000 Utah Arts Council (R) $258,000 CIP / Isaac Chase Home Renovation (E) $258,000 Issue Request #10 - Edgehill Road Improvements $ 4,412 Budget Impact CIP Fund The City should create a new cost center with a budget of $4,412 to track a contribution received from Terrace Hills Associates to be used for improvements at the terminus of Edgehill Road. As a condition of approval of three subdivision plats -- Northvale, Terrace Hills Circle, and Chandler -- the developer (Terrace Hills Associates) agreed to provide plans, specifications, and the materials for improvements. The City agreed to construct the improvements. This contribution satisfies the developer's requirement. The improvements consist of a paved turnaround and a three-foot concrete wall around the perimeter to deny vehicular access to foothill areas. This project has been bid as an addendum to another project. When the complete budget is created the project will be awarded. The total Edgehill project is approximately $15,000. The funding for the project will come from the money provided by the developer and an existing street construction matching fund cost center. Fund Department / Category Decrease Increase CIP Fund Terrace Hills Associates (R) $4,412 CIP / Edgehill Road Improvements (E) $4,412 9 Issue Request #11 - Underground Storage Tank (UST) Remediation $ 5,200 Budget Impact General Fund The Department of Public Services is requesting $5,200 for an environmental site investigation to be funded via the proceeds received from the sale of the asphalt plant. Additional funding may be requested once the investigation is completed. In November 1996 a contractor working with a permit to landscape a building at 679 South Main, owned by Sinclair Oil and now used by Questar, discovered an underground storage tank (UST) with product inside in the parking strip owned by the city. The contractor had the tank removed at their expense and filed closure reports with the State. Soil sampling required by state protocol revealed contamination requiring sub -surface investigation. By law, Salt Lake City is responsible to the State Department of Environmental Quality (DEQ) for the investigation and remediation, if required. Failure to comply with the state's direction to complete the investigation leaves us liable for fines of up to $10,000 per day. Salt Lake City may be subject to these fines in June of 1999. State law also requires the city to use a certified consultant for the investigation. Two similar investigations have recently been initiated on city owned leaking underground storage tank (LUST) sites. The average cost of these two investigations was $5,200. The investigation may lead to remediation work or it may lead to closing out the site, but it must be done before we will have any idea of what future costs are associated with this site. The tank is not covered by any insurance program, so additional funding may be requested at a future date. We recommend the site investigation be completed at an estimated cost of $5,200 using proceeds received from the sale of the asphalt plant. Fund Department / Category Decrease Increase General Fund Public Services/transfer from surplus property account (R) $5 ,200 Public Services (E) $5,200 CIP Fund Surplus property account/partial revenue from sale of asphalt plant (R) $5 ,200 Surplus property account/transfer to General $5 ,200 10