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HomeMy WebLinkAbout15 - County Lifeguard Funding Assistance�?EW�Rr p e u z a C9L /COPP�' CITY COUNCIL AGENDA ITEM TO: MAYOR AND CITY COUNCILMEMr4a BERS FROM: Kevin J. Murphy, City Manager DATE: August 10, 1998 RE: COUNTY LIFEGUARD FUNDING ASSISTANCE I% BACKGROUND On July 23rd City Councilmember Debay requested that staff return with a report revisiting the issue of County financial assistance to the City for our lifeguard services. As outlined in the attached reports from 1994, 1995 and 1996, the City of Newport Beach and the other coastal cities in Orange County received financial assistance from the County to offset some of the costs associated with beach lifeguard services. The group of coastal cities in 1994 -95 received a total of $248,248 and over the three following fiscal years this subsidy was phased out due to two major factors. First, the ERAF shifts in 1992 -93 and 1993 -94 reduced funding to cities, counties and special districts, including the Harbor, Beaches and Parks District which was a special district managed by the County. Second, the County bankruptcy plan in 1995 resulted in a diversion of dollars from several special districts to secure bankruptcy recovery debt issuances. These include the Counties Redevelopment Agencies, the Flood Control District, and the Harbor, Beaches and Parks District. Certainly the reductions from ERAF and the bankruptcy are still impacting the financial operation of the Harbors, Beaches and Parks District; however, the economy has turned around for the County's General Fund as it has for the City's in the last two years. It would be appropriate to make a request of County Supervisor Tom Wilson to resume financial assistance for the beach lifeguard services provided by our City to all County residents visiting the beaches. Prior to making such a request, it would seem prudent to also ask the other Coastal cities to join our efforts in resuming this beach lifeguard assistance based on the former formula which utilized the miles of beach frontage. RECOMMENDATION Direct the Mayor to forward a letter to the other Orange County coastal communities to gain their support for resumption of County financial assistance for beach lifeguard services; and, direct the Mayor to sign a joint letter with other County coastal cities making such a request. November 25, 1996 Council Agenda Item 10 To: Mayor and Members of the City Council " From: Tim Riley, Fire and Marine Chief Subject: County Lifeguard Subsidy Agreement - - -- BACKGROUND: At the City Council meeting of October 28, 1996, Mayor Pro Tern Jan Debay requested a staff report on the above agreement. Specifically, her request was that staff explain why the agreement was phased out, what was the phase -out period, and could the agreement be reinstituted today. Attached are two staff reports prepared by the City Manager, one dated October 24, 1994, and one dated February 27, 1995. These staff reports answer Mayor Pro Tern Debay's first two questions. In regards to whether the subsidy could be reinstituted now, City staff could explore with the Harbors, Beaches and Parks Department whether the climate is right for reinstituting the subsidy agreement. As the City Manager pointed out in his staff report of October 24, 1994, although the County felt that the original rationale for the subsidy was no longer valid, it was staff's opinion that arguments could be made refuting the County's rationale and logic, and that the reasons for the existence of the subsidy are just as valid now and possible more so than in the recent past. However, inasmuch as the Harbors, Beaches and Parks' special property tax revenues were utilized for bankruptcy recovery purposes and their revenues have therefore been reduced by another $4 million per year, it is unlikely that the subsidy would be reinstituted. RECOMMENDATION: Receive and file. L/ Agenda Item No. 13 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER February 27, 1995 TO: Honorable Mayor and Members of the City Council FROM: Kevin J. Murphy, City Manager SUBJECT: COUNTY LIFEGUARD SUBSIDY AGREEMENT PURPOSE To seek the City Council's approval of an amendment to the City's current agreement with the County of Orange on Lifeguard Services. FACTS 1. On October 24, 1994 1 provided to the City Council the attached staff report regarding a letter received from the Director of County Harbor, Beaches and Parks, Bob Fisher, recommending that the County Board of Supervisors phase -out the lifeguard subsidy program through non - renewal of the existing subsidy agreements with the coastal cities when they expire in June 1995. 2. As indicated in the attached report, the City Managers from the affected cities met with the Director of Harbor, Beaches and Parks and an alternative recommendation was developed for a phase -out of the program. The proposed phase -out is described in the October 24th report and is more definitively described in the attached amendment to the agreement entered into in 1992. 3. At the City Council meeting on October 24th I recommended that the City Council continue this item to explore legal avenues which were under consideration by the City of Huntington Beach to force the County's payment of the lifeguard subsidy, as well as discussing with soon to be Supervisor Marian Bergeson her position on this matter so that it could be determined if the County might be able at a future date to continue the lifeguard subsidy as has been in place for many years. -2- 4. In the intervening period since the City Council reviewed this, the County on December 6, 1994 filed for bankruptcy and the Harbor, Beaches and Parks Department budget is now much more seriously impacted financially and it is now in the City's interest to join with Seal Beach, Huntington Beach, Laguna Beach, and San Clemente in becoming signatories to this phase -out agreement as opposed to the complete elimination of the lifeguard subsidy. While it is uncertain at this point to determine whether the County with tidelands revenues would continue to fund the program, it is hoped that if the City enters into the agreement along with the other cities that the County will honor this phase -out program. RECOMMENDATION The City Council approve the amended lifeguard subsidy agreement providing for phasing out of the subsidy over a four fiscal year period. l� TO FROM Agenda Item #21 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER October 24, 1994 Honorable Mayor And Members Of The City Council Kevin J. Murphy, City Manager SUBJECT: COUNTY LIFEGUARD SUBSIDY AGREEMENT PURPOSE: To seek the City Council's approval of an amendment to the City's current agreement with the County of Orange on Lifeguard Services. FACTS: 1. On June 28, 1994 the Director of Harbor, Beaches and Parks, Bob Fisher, forwarded a letter to the coastal cities in Orange County that are signatories to an agreement providing for payment to the cities for lifeguard services. These cities include: Newport Beach, Seal Beach, Huntington Beach, Laguna Beach and San Clemente. A copy of the letter is attached for information, along with a copy of a report prepared by the County HBP Department which is titled "Report on the Financial Status of Harbors, Beaches, and Parks and County Tidelands Funds." 2. One of the recommendations in the report cited above is the phasing out of the Lifeguard Subsidy Program through non - renewal of existing subsidy agreements which expire in June 1995. 3. Upon receipt of the letter and report, the effected cities met with the Director of HBP to discuss the County's position in the matter and determine the fiscal status of the Department supporting the discontinuation of the Lifeguard Subsidy Program. At the conclusion of this discussion the City: Managers in the effected cities agreed to recommend to their respective City Councils that rather than a total elimination of the program in fiscal year 95 -96 that the program be phased out over a four year period beginning in fiscal year 95 -96. 4. The position of the County's HBP Director on this matter is that the financial position of the County's HBP Department over the last two fiscal years has dramatically changed, and in addition to previous reductions and new fees implemented, the Department must look to further reductions to balance future HBP budgets. Not unlike the City's budget, i -2- the County HBP Budget has had its property tax share- reduced by a shift of property taxes to the State. This loss to the HBP budget is $4.5 million . annually on a total expenditure budget of $43.0 million. 5. The County staff has indicated that they believe that the original rationale for the maintenance of the subsidy is no longer valid. In meeting and discussing this item with the County staff, they indicated that originally the subsidy started at a time when there were no County beaches and the cities receiving the subsidies were very small and had little fiscal ability to handle the large number of beach visitors. In addition, at the time of the first subsidy the County's unincorporated population was vastly larger in comparison to the incorporated cities in the County. 6. In City staff's opinion an argument can be made refuting the County's rationale and logic, but the fact remains that the subsidy is the County's and it can be withdrawn in lump sum in fiscal year 95 -96 which would reduce the City's revenues supporting lifeguard services by $110,000. The City may be able to secure the votes of a majority of the Supervisors on this matter, but this is unlikely since only two Supervisors represent beach communities. 7. The City Councils in Seal Beach and Laguna Beach approved the amended agreement on October 10th and October 4th respectively. The Huntington Beach City Council continued this item when it was considered last Monday evening and asked that their City Attorney explore legal alternatives to its elimination. ANALYSIS: The proposed phase -out of the City's lifeguard subsidy results from the fallout of the State's budgetary decisions over the last two fiscal years. The State has "shifted" property taxes from counties, cities and special districts in order to maintain its General Fund operations and the constitutional requirements contained in Proposition 98 for the schools. The County in turn is passing on new fees or eliminating subsidies to cities in order to fiscally survive. Examples of this are the jail booking fees, the property tax collection charges, and now the lifeguard subsidy program. If the past practice of the State continues in the future, the infighting among other levels of government over the same tax dollars can be expected to intensify. RECOMMENDATION: The City Council approve the amended Lifeguard Subsidy Agreement providing for a phasing out of the subsidy over a four fiscal year period. MICHAEL M. RUANE DIRECTOR. EMA TY J F ROBERT G. FISHER DIRECTOR OF HARBORS. BEACHES 8 PARKS LOCATION: AN G E 300 N. FLOWER ST, FOURTH FLOOR SANTA ANA. CALIFORNIA MAILING ADDRESS: ENVIRONMENTAL MANAGEMENT AGENCY . P.O. BOX 4048 HARBORS, BEACHES AND PARKS SANTA ANA. CA 92702 -4048 TELEPHONE: (714) 834 -6667 FAX # 6343744 September 19, 1994 Mr. Kevin Murphy, City Manager City of Newport Beach 3300 Newport Boulevard P. O. Box 1768 Newport Beach, CA 92663 RE: Amendment No. 2 to Lifeguard Subsidy Agreement No. D87 -318 Dear Kevin: At its meeting of September 13, 1994, the Board of Supervisors directed us to negotiate and return for its consideration an amendment to the Lifeguard Subsidy agreements with the cities of Huntington Beach, Laguna Beach, Newport Beach, San Clemente and Seal Beach, respectively, to progressively reduce the annual lifeguard subsidies for final phase out of the program over the next four years. In accordance with the Board's direction, we have drafted an amendment that retains the base annual subsidy at $248,248 for FY 1994 -95; reduces the annual subsidy by 25 percent per year over the following three years, and discontinues the subsidy thereafter. Enclosed are four conformed copies of the amendment for signature. Following your council's approval, please return all four signed copies of the amended agreement to the attention of Mr. Kenneth W. Scattergood, our Chief of Program Support at the above address. Mr. Scattergood will transmit the amendment to the Board of Supervisors for execution. One fully conformed copy of the executed agreement will subsequently be returned to the city. Should you have any questions, please contact Mr. Scattergood directly at 834 -6781. Very truly yours, Robert G. Fisher, ctor /10-7-1 KWS:ms4090815581086 Enclosures: (4) conformed copies - Amendment No. 2 CC: Kenneth Bruner, Executive Assistant, Fifth District Michael M. Ruane, Director, Environmental Management Agency A n� I� l 21 1 3+ 4 6 7 8 9 10. 111 I 121 13I I 141 151 I 16 17 18 19 20 21 22 23 24 25 26 27' 281 PROJECT: City of Newport Beach Agreement No. D87 -318 Amendment No. 2 Lifeguard Subsidy Program AMENDMENT TO AGREEMENT This AMENDMENT to AGREEMENT is made and entered into this day of , 1994, BY AND BETWEEN FAMP The City of Newport Beach, hereinafter referred to as "CITY," The County of Orange, specifically the Environmental Management Agency, hereinafter referred to as "COUNTY." RECITALS WHEREAS, on December 15, 1987, the COUNTY, as the successor to the former Harbors, Beaches and Parks District, and the CITY entered into a five -year agreement, hereinafter referred to as the "Original Agreement," for the provision of lifeguard services at CITY owned and operated public beaches; and WHEREAS, the term of the Original Agreement was extended until June 30, 1997 by amendment dated June 23, 1992, hereinafter referred to as the "First Amendment;" and WHEREAS, as a result of the state's permanent reallocation of local property taxes, COUNTY'S Harbors, Beaches and Parks County Service Area No. 26 revenue has been reduced; and WHEREAS, this tax reallocation has necessitated a re- evaluation of Harbors, Beaches and Parks funded contributions to other programs, including the Lifeguard Subsidy Program; and WHEREAS, both CITY and COUNTY desire to revise and clarify the terms, provisions and conditons of the Original Agreement and First Amendment -1- 1 y� 1! 21 3 4 5 6 7 8 91 10'. 111 12 13 141 15' I 16 17i 18 19 20 21 22 ?3 24 25 26 27 Agreement No. D87 -318 thereto for a gradual phase -out of annual lifeguard subsidy. THEREFORE, CITY and COUNTY hereby agree as follows: 1. EFFECT OF AGREEMENT. This Amendment to Agreement is intended to further amend the Original Agreement and the First Amendment as such agreements apply to the Lifeguard Subsidy Program. The Original Agreement remainds in full force and effect except as modified herein. 2. TERM OF AGREEMENT. Paragraph "1" of the first amended Original Agreement is amended to extend the term of this Agreement until June 30, 1998. 3. REQUESTS FOR ADJUSTMENTS. Paragraph "10" is deleted. 4. ANNUAL SUBSIDY AMOUNT. Paragraph "11" is amended and replaced to read as follows: COUNTY shall annually contribute funds for the Lifeguard Subsidy Program in the below amounts for each corresponding fiscal year. This amount is the total amount budgeted by the COUNTY and will be distributed each year among each participating coastal city in direct proportion to the actual salary costs paid for lifeguarding services in the preceding fiscal year. Percentage Fiscal Year Amount Difference FY 1994 -95 $248,248 100% FY 1995 -96 $186,186 75% FY 1996 -97 $124,124 50% FY 1997 -98 $62,062 25% S. OTHER PROVISIONS. TERMS AND CONDITIONS. All other provisions, terms and conditions of the Original Agreement shall remain unchanged and in full force and effect. A 281 -2- 9