HomeMy WebLinkAboutStaff Report)CALIFOR NIA NATIONAL --
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City Council Staff Report
October 15, 2013
ITEM
Staff Report: State of the City Address
INTRODUCTION
In response to a City Council initiated request, staff has conducted a review of donations and
expenditures related to the annual State of the City address. In doing so, and consistent with the
stated request, this report will discuss relevant policies and procedures, actual processes as they
relate to this request and an accounting of all expenditures for a five fiscal year period (current
year included) and revenue sources for such.
DISCUSSION
A. Sources of Funding
All expenditures made by or on behalf of the City of National City must have an identified
funding source. Funding sources include but are not limited to the budget allocation of General
Fund dollars and donations from individuals and groups.
General Fund
A review of accounts established through the budget process reveals that there is no account
established specifically for the purpose of the State of the City Address. However, within the
budget for the City Council department (which includes the Mayor and each of the four City
Council offices), there exists accounts that could be used for such purpose:
• Governmental Purposes
• Governmental Purposes — Mayor Morrison
• Boards and Commissions
• Materials and Supplies
A table of budget allocations for each account for the period under review can be found in
Attachment 1. While antidotal data indicates that these accounts may have been accessed for
expenses related to the State of the City Address by prior administrations, staffs five year review
Page 2
Staff Report — State of the City Address
October 15, 2013
indicates that of these listed accounts, Governmental Purposes was accessed in fiscal year 2010
for expenses. In the four years since then, expenses have been made by donations. Per City
Council Policy 804, "It is the policy of the City Council that volunteer and private resources will
be used in lieu of City support for special events whenever possible."
In addition, to the above, the costs associated with the use of City staff and/or City equipment in
the planning, set up, inspection and tear down of the event are be allocated to the home
department of the staff and/or equipment. Further discussion can be found in Section B,
Expenditures.
Donations
In recent history, the primary funding source for the State of the City Address has been the use of
donations. Donations are governed by Council Policy 204. As stated in the Council Policy 204 at
the time of the drafting of this report, it is acceptable and appropriate to accept donations from
individuals, community groups and businesses in order to enhance City programs and/or
facilities to improve a higher level of service to the public. As stated:
"All donations made to the City shall be accepted and processed according to the following:
1. The donation must have a purpose consistent with City goals and objectives.
2. The City Council may decline any donation without comment or cause.
3. The donation will not be in conflict with any provision of the law.
4. In kind donations will be aesthetically acceptable to the City.
5. The donation will not add to the workload of the City Council or staff unless it provides a net
benefit to the City.
6. The donation will not bring hidden costs such as starting a program the City would be unwilling
to fund when the donation was exhausted.
7. The donation must place no restrictions on the City, unless agreed to by the City Council.
8. The donation shall become the property of the City.
9. All donations will receive recognition appropriate to the level and nature of the donation as
determined by the City. For those of a capital nature, that may be in the form of signage, marking
or naming as determined by the City Council. Regardless of the recognition strategy selected, the
intent shall be to appropriately honor the donor for their contribution to the community. The
appearance of traditional commercial advertising or product endorsements that promote the
donor shall be avoided.
10.A11 donations shall be accepted directly by Finance Department staff.
11. Cash donations exceeding $5,000, and in -kind donations exceeding $5,000 in value, shall be
accepted through a written agreement consistent with these guidelines and approved by the City
Council. In -kind capital donations will be subject to normal City review, permitting, inspection
and insurance requirements.
12. At the time of acceptance, all donations regardless of value, will be acknowledged in writing in a
form approved by the City Attorney. The original acknowledgement will be sent to the donor and
a copy forwarded to the Finance Department."
In researching the matter of the State of the City address, records available through the Finance
Department indicate that all donations forwarded to the Finance Department for the State of the
Page 3
Staff Report — State of the City Address
October 15, 2013
City Address have been in the form of cash donations (checks). All such donations have been
placed on deposit and credited to a miscellaneous donations liability account. Checks identified
as for the State of the City Address are recorded as such. Consistent with other City accounts,
funds are reconciled annually, with balances carried over. Over the last five fiscal years,
donations have totaled $31,900. A List of all of the donors and the amounts is provided in
Attachment 2.
B. Expenditures
In considering expenses related to a City sponsored or co -sponsored event there are both "hard"
and "soft" costs. Hard cost expenses are herein defined as those expenses requiring a payment of
funds by the City for the procurement of a product or service. Soft cost expenses are herein
defined as the costs associated with the use of staff time and/or equipment that would have been
incurred irrespective of the event. Staff time for regular hours worked, that is hours within an
employee's normal 40 hour work week, are typically classified as soft costs whereas employee
overtime (any work hours beyond 40) are classified as hard costs. External charges are classified
as hard costs. The State of the City Address has included a combination of both hard and soft
costs, internal and external charges.
Internal Charges
In reviewing expenditures, the information available to staff indicates that the costs of staff time
and equipment (including hard costs) have been absorbed by departments with no direct charges
to the State of the City, consistent with the practice applied to other City sponsored or co-
sponsored events. The State of the City Address is a City sponsored event.
External Charges
Payment of external charges are processed and tracked by the Finance Department. Payments are
processed following the City's established procedures. Records indicate that payments have been
made via the warrants process which is the issuance of a check, from the City, directly to the
supplier of the goods or service; or in repayment to a staff person using personal funds to procure
such goods or services on behalf of the City, for a recognized and approved City purpose.
Requests for Warrant forms are submitted to the Finance Department with supporting
documentation. Per administrative policy, Requests for Warrant forms must be authorized
(signed by the department director). By practice and as a function of responsibilities, the
incumbent Mayor is recognized as the department head for the City Council Department.
Further, annually the Finance Department requires that each department list all employees with
authority to authorize payments. The incumbent Mayor is the listed authority for the City
Council Department. A list of all payments for the five year period under review is provided in
Attachment 3.
Additional internal controls include the Purchasing Review Committee (PRC) and the City
Council. All purchase request of $500 or more are reviewed by PRC, an oversight committee
composed of City employees. PRC is convened weekly. After payments are made, they are listed
Page 4
Staff Report — State of the City Address
October 15, 2013
on the Warrant Register. Warrant Registers are docketed for approval by the City Council.
Warrant Registers submitted to City Council include the name of the payee, a description of the
purchase, the check number, the date and the dollar amount.
CONCLUSION
The data contained in this report and its attachments are based on data available to the
researchers. To the extent possible, the information provided is intended to be responsive to the
Council initiated request for information related to State of the City Address expenses and
revenues. Please note that the request for information related to reporting requirements will be
provided by the City Attorney in conjunction with a future discussion of City Council Policy
204, Donation Acceptance Policy
Attachments:
1. General Fund Operating Accounts, Fiscal Years 2010 — 2014
2. State of the City Expenses, Fiscal Years 2010 — 2014
3. State of the City Revenues, Fiscal Years 2010 — 2014
J'�
City of National City
General Fund Operating Accounts
Fiscal Years 2010 - 2014
Attachment 1
City Council Department Account
Budgeted Funds
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
212
Governmental Purposes
$1 1,400
$5,100
$7,227
$5,100
$5,100
212
Governmental Purposes - Mayor Morrison
$1,836
$1,836
$1,836
$1,836
$1,836
212
Boards and Commissions
$5,541
$5,541
$5,541
$5,541
$5,541
399
Materials and Supplies
$0
$0
$3,140
$2,840
$2,840
City of National City
State of the City Revenues
Fiscal Years 2009 - 2014
Attachment 2
I'll4tll Ica.'
Date
LV■I,
Donor
Amount
Account Number
Account Description
8/5/09
Neigborhood National Bank
$1,000.00
001-01001-3637
Donations - Council
9/2/09
EDCO
$1,000.00
001-01001-3637
Donations - Council
9/2/09
Weldon Donaldson
$550.00
001-01001-3637
Donations - Council
9/9/09
Pier 32 Marina
$1,000.00
001-01001-3637
Donations - Council
9/9/09
MRW Development Co
$250.00
001-01001-3637
Donations - Council
9/14/09
Benjamin Camacho, A Medical Corporation _
$500.00
001-01001-3637
Donations - Council
$500.00
001-01001-3637
Donations - Council
9/22/09
Cox Communication
10/19/09
AT&T
$1,000.00
001-01001-3637
Donations - Council
12/22/09
SDGE
$1,000,00
001-01001-3637
Donations - Council
2/16/10
Knight & Carver
$1,500,00
001-01001-3637
Donations - Council
,:
IJI:ill I Gall
Date
4V l I
Donor
Amount
Account Number
Account Description
8/5/10
Sycuan Band of the Kumeyaay Nation
$1,000.00
001-1141
Misc Deposits
8/19/10
Neigborhood National Bank
Si ,000.00
001-1141
Misc Deposits
8/24/10
SDG&E
$1,000.00
001-1141
Misc Deposits
8/25/10
Mile of Cars Association
$600.00
001-1141
Mise Deposits
8/26/10
EDCO
$1,000,00
001-1141
Misc Deposits
9/1/10
MRW Development Co
$250.00
001-1141
Mise Deposits
9/8/10
Cox Communication
$250.00
001-1141
Misc Deposits
11/16/10
AT&T
$1,000.00
001-1141
Misc Deposits
Fiscal. Year 2012
Date
9/20/11
9/20/11
9/20/11
10/3/11
12/6/11
12/12/11
City of National City
State of the City Revenues
Fiscal Years 2009 - 2014
Donor
EDCO
Neigborhood National Bank
Sycuan Band of the Kumeyaay Nation
SDGE
AT&T
Pier 32 Marina
Amount
$1,000.00
$1,000.00
$1,000.00
$1,000.00
$1,000.00
$500.00
Account Number
001-1141
001-1141
001-1141
001-1141
001-1141
001-1141
Attachment 2
Account Description
Misc Deposits
Misc Deposits
Misc Deposits
Misc Deposits
Misc Deposits
Mise Deposits
FY 2012 TOTAL:
$5,500.00
Fiscal Year £Via
Amount
Account Number
Account Description
Date
Donor
8/9/12
Neigborhood National Bank
$1,000.00
001-1141
Misc Deposits
8/9/12
SDGE
$1,000.00
001-1141
Misc Deposits
8/9/12
Pier 32 Marina
$500.00
001-1141
Misc Deposits
001-1141
$1,500.00
Misc Deposits
10/1/12
Sycuan Band of the Kurneyaay Nation
001-1141
$1,000.00
Misc Deposits
10/10/12
EDCO
12/13/12
AT&T
$1,500.00
001-1141
Misc Deposits
Fiscal Year 2014
Date
Donor
9/3/13 AT&T *
9/4/13 Sycuan Band of the Kumeya.ay Nation
9/5/13 EDCO
9/10/13 Neigborhood National Bank
9/11/13 Pier 32 Marina
FY 2014 TOTAL:
TOTAL TO DATE:
*Total donation of $1,750 ($250 applied to employee picinic)
�.,.,...
Amount
$1,500.00
$1,500.00
$1,000.00
$1,000.00
$500.00
$5,500.00
$31,900,00
Account Number
001-1141
001-1141
001-1141
001-1141
001-1141
Account Description
Misc Deposits
Misc Deposits
Misc Deposits
Misc Deposits
Misc Deposits
City of National City
State of the City Expenses
Fiscal Years 2010 - 2014
Attachment 3
1. ..,.-Lai 1 a.a.a
Date
rry A. V
Description
Account Number
Account Description
General Ledger
Amount
Vendor Name
Balance
09/08/09
Flowers
001-401-000-212-0000
Governmental Purposes
($932.88)
Party Time
($980.08)
09/08/09
Post Cards for State of the City
001-401-000-212-0000
Governmental Purposes
($723.23)
Copy Post Printing
($1,703.31)
09/08/09
Rentals: Tables (50), Linens (92)
and Pop Ups (15)
001-401-000-212-0000
Governmental Purposes
($1,500.00)
Party Production
Rentals
($3,203.31)
09/15/09
Advertisement
001-401-000-212-0000
Governmental Purposes
($660.00)
PennySaver
($3,863.31)
10/06/09
Programs
001-401-000-212-0000
Governmental Purposes
($416.41)
Copy Post Printing
($4,279.72)
FY 10 TOTAL:
($4,232.52)
1'U3.t. 1.•.a1
Date
rvaa
Description
Account Number
Account Description
General Ledger
Amount
Vendor Name
Balance
08/10/10
DVD reproduction
001-401-000-212-0000
Governmental Purposes
($1,202.30)
Pacific Disc
($5,482.02)
08/26/10
Flowers
001-1141
Miscellaneous Deposits
($374.83)
Vons
($5,856.85)
08/30/10
13 X 13 Canopy
001-1141
Miscellaneous Deposits
($2,892.54)
Big 5 Sporting Goods
($8,749.39)
08/30/10
Advertisement
001-1141
Miscellaneous Deposits
($622.97)
Pennysaver
($9,372.36)
08/31/10
Reimbursement for costumes
001-1141
Miscellaneous Deposits
($64.16)
Josie Flores -Clark
($9,436.52)
08/31/10
Table Rentals (50)
001-1141
Miscellaneous Deposits
($273.75)
Rentals
(S9,710.27)
08/31/10
Advertisement
001-1141
Miscellaneous Deposits
($445.03)
Pennysaver
($10,155.30)
09/02/10
Glass Vases (55) and Latch Tote
001-1141
Miscellaneous Deposits
($256.27)
Walmart
($10,411.57)
09/21/10
Printing
001-1141
Miscellaneous Deposits
($462.68)
Copy Post Printing
($10,874.25)
09/21/10
Table Rentals (50)
001-1141
Miscellaneous Deposits
($348.75)
Rentals
($11,223.00)
06/30/11
DVD Replication
001-1141
Miscellaneous Deposits
($878.05)
Productions, LLC
($12,101.05)
FY 11 TOTAL:
City of National City
State of the City Expenses
Fiscal Years 2010 - 2014
Attachment 3
1' ■13.4“l J. 4 41
Date
./-NI 1+'
Description.
Account Number
Account Description
General Ledger
Amount
Vendor Name
Balance
09/14/11
Advertisement
001-1141
Miscellaneous Deposits
($280.13)
PennySaver
($12,381.18)
09/14/11
Advertisement
001-1141
Miscellaneous Deposits
($280.13)
PennySaver
($12,661.31)
09/27/11
Reimbursement, Outdoor Coolers
001-1141
Miscellaneous Deposits
($996.00)
Ronald Morrison
($13,657.31)
09/27/11
Reimbursement, Supplies
001-1141
Miscellaneous Deposits
($116.32)
Ronald Morrison
($13,773.63)
09/27/11
Advertisement
001-1141
Miscellaneous Deposits
($280.13)
PennySaver
($14,053.76)
10/05/11
Cole 13 X 13 Shelters (5)
001-1141
Miscellaneous Deposits
($716.48)
Big 5 Sporting Goods
($14,770.24)
10/05/11
Table Rentals (25)
001-1141
Miscellaneous Deposits
($221.25)
Rentals
($14,991.49)
10/10/11
Programs
001-1141
Miscellaneous Deposits
($252.59)
CPP Printing
($15,244.08)
10/12/11
Video
001-1141
Miscellaneous Deposits
($250.00)
Miles Johnston
($15,494.08)
10/18/11
Photo CD
001-1141
Miscellaneous Deposits
($150.00)
Photography
($15,644.08)
FY 11 TOTAL:
1' 104N1 1 AeN•
Date
�•r+"
Description
Account Number
Account Description
General Ledger
Amount
Vendor Name
Balance
09/13/12
Advertisement
001-1141
Miscellaneous Deposits
($285.20)
Inc (PennySaver)
$ (15,929.28)
09/18/12
Advertisement
001-1141
Miscellaneous Deposits
($285.20)
Inc (PennySaver)
$ (16,214.48)
09/18/12
Advertisement
001-1141
Miscellaneous Deposits
($285.20)
Inc (PennySaver)
$ (16,499.68)
09/25/12
Costume
001-1141
Miscellaneous Deposits
($537.67)
Ronald Morrison
$ (17,037.35)
10/02/12
Table Covers (106)
001-1141
Miscellaneous Deposits
($1,904.17)
Ronald Morrison
$ (18,941.52)
10/08/12
Leather Coaster Souvenirs
001-1141
Miscellaneous Deposits
($1,937.72)
4IMPRINT
$ (20,879.24)
10/17/12
Table Rentals (36)
001-1141
Miscellaneous Deposits
($120.00)
Imagine Event Decor
$ (20,999.24)
10/17/12
Character Performer
001-1141
Miscellaneous Deposits
($200.00)
Nomad Ariz
$ (21,199.24)
10/23/12
Chair Rentals (90)
001-1141
Miscellaneous Deposits
($90.00)
Imagine Event Decor
$ (21,289.24)
10/23/12
Sashes / Ribbons
001-1141
Miscellaneous Deposits
($74.00)
Luisa McCarthy
$ (21,363.24)
City of National City
State of the City Expenses
Fiscal Years 2010 - 2014
Attachment
.,. J.. J.��•
Date
�� J
Description
Account Number
Account Description
General Ledger
Amount
Vendor Name
Balance
10/23/12
Blackwood Frame
001-1141
Miscellaneous Deposits
($26.99)
Ronald Morrison
$ (21,390.23)
10/23/12
Wash n Dry
001-1141
Miscellaneous Deposits
($60.00)
Ronald Morrison
$ (21,450.23)
10/25/12
Tower Lights
001-1141
Miscellaneous Deposits
($236.97)
B7'S Rentals
$ (21,687.20)
10/25/12
Photos
001-1141
Miscellaneous Deposits
($200.00)
Photography
$ (21,887.20)
10/25/12
Translation Services
001-1141
Miscellaneous Deposits
($140.00)
Lopez
$ (22,027.20)
10/30/12
Filming/Photos
001-1141
Miscellaneous Deposits
($60.00)
Francisco Camacho
$ (22,087.20)
11/13/12
Video Equipment Rental
001-1141
Miscellaneous Deposits
($490.00)
Mauricio Perez
$ (22,577.20)
06/17/13
DVDs
001-1141
Miscellaneous Deposits
($699.54)
DupeShop
$ (23,276.74)
FY 13 TOTAL:
Date
Description
Account Number
Account Description
General Ledger
Amount
Vendor Name
Balance
08/21/13
Advertisement
001-1141
Miscellaneous Deposits
($267.76)
PennySaver
$ (23,544.50)
09/04/13
Advertisement
001-1141
Miscellaneous Deposits
($162.10)
PennySaver
$ (23,706.60)
09/16/13
Advertisement
001-1141
Miscellaneous Deposits
($267.76)
PennySaver
$ (23,974.36)
09/24/13
Advertisement
001-1141
Miscellaneous Deposits
(S452.27)
PennySaver
$ (24,426.63)
FY 14 TOTAL:
TOTAL TO DATE:
($24,379.43)