A G E N D A ALISO VIEJO CITY COUNCIL REGULAR MEETING WEDNESDAY, FEBRUARY 3, :00 P.M. PUBLIC MEETING/PUBLIC HEARINGS

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1 A G E N D A ALISO VIEJO CITY COUNCIL REGULAR MEETING WEDNESDAY, FEBRUARY 3, :00 P.M. PUBLIC MEETING/PUBLIC HEARINGS City Hall 12 Journey Council Chambers Aliso Viejo, CA Mayor Phillip B. Tsunoda Mayor Pro Tem Carmen Cave Council Members Greg A. Ficke, Donald A. Garcia, William A. Phillips WELCOME to the City of Aliso Viejo City Council meeting. Those persons wishing to address the City Council are requested to complete and submit to the City Clerk a Request to Address City Council form available at the entrance to the City Council Chambers. Speakers will be called at the appropriate time as their interested matter is heard. COMMENTS WILL BE LIMITED TO THREE MINUTES PER SPEAKER. It is the intention of the City to comply with the Americans with Disabilities Act (ADA). If you need special assistance to participate in this meeting, please contact the City Clerk s Office at Regular meetings of the City Council are held on the first and third Wednesday of the month at the City Hall Council Chambers. For more information, please contact City Hall at (949) MARK A. PULONE SCOTT C. SMITH SUSAN A. RAMOS CITY MANAGER CITY ATTORNEY CITY CLERK

2 PLEASE SILENCE ALL PAGERS, CELL PHONES AND OTHER ELECTRONIC EQUIPMENT WHILE CITY COUNCIL IS IN SESSION CONVENE MEETING AND ROLL CALL - 7:00 P.M. PRESENT: ABSENT: PLEDGE OF ALLEGIANCE TO THE FLAG Cub Scout Pack 751 SPECIAL PRESENTATIONS A. PRESENTATION AND RECOGNITION TO CHRISTIAN FRONCZEK, FOR HIS SELFLESS CONTRIBUTION TO U.S. MARINE FAMILIES Present Certificate of Recognition. ADDITIONS, DELETIONS, REORDERING TO THE AGENDA CONSENT CALENDAR NOTICE: Any member of the public who wishes to discuss a Consent Calendar item should complete and submit to the City Clerk a Request to Address City Council form available at the entrance to the City Council Chambers. Speakers will be called at the appropriate time as their interested matter is heard. COMMENTS ARE LIMITED TO THREE MINUTES PER SPEAKER. CONSENT CALENDAR ITEMS NOS. 1 THROUGH 6 MOTION All matters listed on the Consent Calendar will be acted upon by one vote unless members of the City Council, staff, or the public request a matter to be discussed and/or removed from the Consent Calendar for separate action. Items removed from the Consent Calendar will be discussed and voted upon immediately following City Council action on the remainder of the Consent Calendar. 1. WAIVE THE READING OF ALL ORDINANCES AND RESOLUTIONS RECOMMENDED ACTION: Approve the reading by title only of all ordinances and resolutions wherein the titles appear on the public agenda; said titles shall be determined to have been read by title, and further reading is waived. 2. MINUTES REGULAR MEETING OF JANUARY 20, 2010 RECOMMENDED ACTION: Approve the Minutes as submitted. Page 2 of 4 February 3, 2010 Regular Meeting

3 3. ACCOUNTS PAYABLE RECOMMENDED ACTION: 1. Ratify Accounts Payable checks issued January 14, 2010 in the amount of $571,614.03; 2. Ratify Accounts Payable checks issued January 21, 2010 in the amount of $195, TREASURER S STATEMENT December 2009 RECOMMENDED ACTION: Approve the December 2009 Treasurer s Statement. 5. FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH ROSENOW SPEVACEK GROUP (RSG) INC. FOR AFFORDABLE HOUSING IMPLEMENTATION AND ADMINISTRATION SERVICES RECOMMENDED ACTION: Approve said amendment. 6. ADVERTISE FOR BIDS FISCAL YEAR SLURRY SEAL AND REHABILITATION PROJECT RECOMMENDED ACTION: Approve contract documents, specifications, and plans for said project; and, authorize staff to advertise, evaluate bids, and recommend contractor for same. END OF CONSENT CALENDAR CONTINUED PUBLIC HEARING ITEM NO A REQUEST FOR A CONDITIONAL USE PERMIT TO ESTABLISH A RELIGIOUS, FRATERNAL OR SERVICE ORGANIZATION OF A NON PROFIT NATURE WITHIN PACIFIC PARK PLAZA BUSINESS PARK AT ALISO CREEK ROAD (CONTINUED FROM JANUARY 20, 2010) RECOMMENDED ACTION: Adopt Resolution No XX entitled below: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALISO VIEJO TO APPROVE CONDITIONAL USE PERMIT UPAV09-11 TO ESTABLISH A RELIGIOUS, FRATERNAL, OR SERVICE ORGANIZATION USE OF A NON-PROFIT NATURE WITHIN PACIFIC PARK PLAZA AT ALISO CREEK ROAD. Page 3 of 4 February 3, 2010 Regular Meeting

4 DISCUSSION ITEMS NOS. 8 THROUGH SUMMARY OF AQUATIC CENTER OPERATIONS RECOMMENDED ACTION: Receive presentation from staff on year-to-date summary of Aquatic Center operations. 9. MID-YEAR BUDGET AND STRATEGIC INITIATIVES RECOMMENDED ACTION: Adopt the recommended Mid-Year Budget for Fiscal Year ; and, review the Strategic Initiatives and provide direction to staff. 10. DETERMINATION OF NEED TO CONTINUE EMERGENCY PUBLIC WORKS CONTRACTING FOR REPAIR WORK ON WOODFILED DRIVE PURSUANT TO PUBLIC CONTRACT CODE RECOMMENDED ACTION; Review this staff report and by motion, determine, by a four-fifths vote, that there is a need to continue the emergency public works improvement on Woodfield Drive authorized at the January 20, 2010 City Council meeting. 11. EMERGENCY ANALYSIS AND REPAIRS TO ALISO VIEJO PARKWAY STORM DRAIN AND SLOPE BETWEEN MOULTON AND BRIARGLEN RECOMMENDED ACTION: Authorize the appropriation of funds from Gas Tax, Unreserved Fund Balance to perform the work; and, authorize the City Manager to negotiate and execute an agreement (s) to analyze and/or make repairs to Aliso Viejo Parkway Storm Drain and Slope up to a maximum of $50,000. COMMUNITY INPUT Members of the public wishing to address the City Council are requested to complete and submit to the City Clerk a Request to Address City Council form available at the entrance to the City Council Chambers. In compliance with the Brown Act, no discussion or action may be taken on comments received at this time, except the City Council may briefly respond to statements made or questions posed. COMMENTS ARE LIMITED TO THREE MINUTES PER SPEAKER. CITY MANAGER S REPORT ANNOUNCEMENTS/COUNCIL COMMENTS/COMMITTEE UPDATES ADJOURNMENT: Next Regular Council Meeting: February 17, Page 4 of 4 February 3, 2010 Regular Meeting

5 City of Aliso Viejo Agenda Item DATE: February 3, 2010 TO: FROM: SUBJECT: Mayor and City Council Kelly Tokarski, KT Community Relations COUNCIL RECOGNITION AND PRESENTATION TO CHRISTIAN FRONCZEK FOR HIS SELFLESS CONTRIBUTION TO FAMILIES OF U.S. MARINES Recommended Action: Present Certificate of Recognition. Summary: For the past couple of years, Christian Fronczek has selflessly donated all of his Christmas presents to San Clemente Military Family Outreach. The non-profit distributes the gifts to Camp Pendleton for families during the holidays. The 13-year-old St. Mary's student makes a habit of giving back to others. He saved hundreds of dollars and donated his allowance to his school when he learned it was adopting families. The City Council is grateful to Christian for his selfless efforts to benefit others. APPROVED FOR SUBMITTAL TO THE CITY COUNCIL Mark A. Pulone City Manager

6 City of Aliso Viejo Agenda Item DATE: February 3, 2010 TO: FROM: Mayor and City Council Gina M. Tharani, Director of Financial Services SUBJECT: ACCOUNTS PAYABLE Recommended Action: 1. Ratify accounts payable checks issued January 14, 2010 in the amount of $571, and 2. Ratify accounts payable checks issued January 21, 2010 in the amount of $195, Fiscal Impact: Expenditures in the amount of $767, Background: The City issues accounts payable checks on a bi-monthly basis and submits them to the City Council for review and approval prior to the creation of accounts payable checks. Special check runs are done on a weekly basis with the City Council ratification at its next regularly scheduled City Council Meeting. Discussion: The issued accounts payable checks were reviewed and approved for payment. The register is being presented to City Council for approval. Gina M. Tharani Director of Financial Services APPROVED FOR SUBMITTAL TO THE CITY COUNCIL Mark A. Pulone City Manager Attachment: Accounts Payable Reports

7 City of Aliso Viejo Agenda Item DATE: February 3, 2010 TO: FROM: Mayor and City Council Gina M. Tharani, City Treasurer SUBJECT: TREASURER S STATEMENT DECEMBER, 2009 Recommended Action: Approve the December 2009 Treasurer s Statement. Fiscal Impact: No Fiscal Impact. Background: Per City policy, the Finance Department presents the monthly Treasurer s Statement for the City Council s review and approval. This statement shows the cash balances for the various funds, with a breakdown of bank account balances, investment account balances and the effective yield earned from investments. Discussion: The City of Aliso Viejo is invested in the State Treasurer s Local Agency Investment Fund (LAIF). Investment in LAIF is allowed under the City s formally adopted investment policy. All funds are available for withdrawal within 24 hours. In addition, in accordance with the City s Investment Policy, the City has the option to purchase Certificate of Deposits with its local bank. These funds will be insured by Federal Deposit Insurance Corporation (FDIC). FDIC is an independent agency created by Congress in 1933 to supervise banks, insure deposits, and help maintain a stable and sound banking system. As a secondary investment option, the City continues to maintain its Money Market account with J.P Morgan Chase & Co. Excess funds are invested into an investment pool of US Treasury Notes. Interest is credited to the City s bank account on a monthly basis.

8 Gina M. Tharani City Treasurer APPROVED FOR SUBMITTAL TO THE CITY COUNCIL Mark A. Pulone City Manager Attachment: Treasurer s Statement. LAIF Statement

9 City of Aliso Viejo Agenda Item DATE: February 3, 2010 TO: FROM: Mayor and City Council Albert Armijo, Director of Planning Services SUBJECT: FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH ROSENOW SPEVACEK GROUP (RSG), INC. FOR AFFORDABLE HOUSING IMPLEMENTATION AND ADMINISTRATION SERVICES Recommended Action Approve a First Amendment to the Professional Services Agreement between the City of Aliso Viejo and Rosenow Spevacek Group (RSG), Inc. for Affordable Housing Implementation and Administration Services. Fiscal Impact The fee for consultant services for this contract is proposed to remain at $325 per loan for eligibility review, $350 per loan for loan document preparation/processing fee, and $195 per hour/$140 per hour on a time-and-materials basis for the Principal and Associate, respectively. The amendment will increase the existing $25,000, one-year contract by $50,000 for two years with a cumulative amount not to exceed $75,000 for three years. RSG s billing is fully reimbursable by Shea Homes until an initial buyer is placed in all seventy-eight (78) affordable units (Glenwood 43 and Vantis 35). Upon closing of escrow, Shea Homes pays the City an amount equal to 5% of AMI appropriate for the presumed family size as an administrative and monitoring contribution, or Housing Administration Contribution. For a one-bedroom unit, Shea Homes pays the City $3,445; for a two-bedroom unit, $3,875. To date, $70,615 has been deposited in the Housing Administration Contribution fund. Upon the reselling of units, the City s Housing Administration Contribution applies and funding will be collected at the closing of each escrow from the existing homebuyer. Background On February 9, 2009, the City Manager approved the original one-year contract for Affordable Housing Implementation and Administration Services with RSG for $25,000. The contract was based on a rate per loan eligibility review as well as loan document

10 RSG, Inc. First Amendment CC Page 2 preparation/processing. An hourly rate was applicable if additional housing services were required from the Consultant. Discussion: This First Amendment will allow an increase to the total amount and term of the contract to not exceed $75,000 for three years. RSG will continue to conduct eligibility review, verify the applicant meets program requirements and ensure supporting income documentation is complete and accurate. The fee for this service is $325 per loan. Upon final approval by Shea s lender, RSG will issue final approval on behalf of the City and prepare all necessary loan documents for borrower and City signature. RSG will coordinate escrow activities, including City execution of all documents. RSG will also monitor close of escrow and document recordation. The fee for this service is $350 per loan. Once units are occupied, RSG will provide the City with monitoring services for compliance of requirements of this affordable housing program. RSG will be responsible for annual monitoring of occupancy of affordable units to ensure the units are owner occupied and no transfer has taken place. These services will be billed on a time and materials basis at rates noted in the proposal. Prepared by: Albert Armijo Director of Planning Services APPROVED FOR SUBMITTAL TO THE CITY COUNCIL Mark A. Pulone City Manager 1) First Amendment, dated February 9, ) Original Contract, dated February 9, 2009

11 City of Aliso Viejo Agenda Item DATE: February 3, 2010 TO: FROM: SUBJECT: Mayor and City Council Shaun Pelletier, Assistant City Engineer ADVERTISE FOR BIDS FY SLURRY SEAL AND REHABILITATION Recommended Action: 1. Approve Contract Documents, Specifications, and Plans for FY Slurry Seal and Rehabilitation project; and 2. Authorize Staff to advertise, evaluate bids, and recommend contractor for FY Slurry Seal and Rehabilitation project. Fiscal Impact: The estimated construction cost for the work is about $532,000. Total fiscal impact would be approximately $619,000 including design, construction management, construction cost, and 10% contingency. The cost will be paid from Traffic Congestion Relief Funds (TCRF) and Gas Tax funds. Currently only $600,000 is budgeted in the FY budget. Following review of bid prices staff will determine whether or not to request appropriation of additional funds. Background: The annual slurry seal project is an integral part of the City s 7-year Capital Improvement Program. It is planned to have all the streets in the City slurry sealed every five years on a rotating basis. Slurry seal is a routine asphalt maintenance treatment that consists of a thin application of liquid asphalt and sand mixed in a waterbased emulsion that is spread on top of existing asphalt streets. Slurry sealing does not make the road stronger but is intended to seal small cracks in the asphalt and retard the destructive oxidation of the sun s rays on the asphalt. Slurry sealing protects the asphalt for approximately five years. The useful life of many residential streets throughout the County has proven to be as much as 50 years when seal coats are applied on a routine basis. This is the eighth consecutive year that the City has advertised for a slurry seal project.

12 Discussion: The Contract Documents for the Slurry Seal and Rehabilitation are available for review at City Hall. The document consists of the Notice Inviting Bids, Contractor s Bid, Agreement between the Contractor and City, plans and specifications, and various forms for the Contractor to complete and submit with their proposal. The scope of work consists of traffic control, public notice, application of emulsified asphalt slurry, removing and replacing asphalt concrete, and striping. The approximate construction cost is $532,000. The areas of slurry seal are shown on the attached maps. Type II conventional slurry seal will be applied to the public streets in the communities of Vista Pointe Ridge, Carmel, Hillsborough, Key West, Ryland Crest, Twelve Picket Lane, Promenade and Promenade I. These communities were last slurry sealed in FY Collector streets include Chase, Wood Canyon (Westridge to Thistledown), Grand, Sanborn, Oakgrove, and Enterprise. Arterial roadways include Glenwood Drive (SR73 to Aliso Creek) and Pacific Park Drive (SR73 to Cheyenne). The contractor is required to distribute two-week and 72-hour notices to all businesses and residences impacted by the construction. The streets of Chase, Wood Canyon (north of Pacific Park), Grand and Sanborn lead to the Don Juan Avila and Oakgrove Elementary Schools. Wood Canyon (south of Pacific Park) and Oakgrove lead to Canyon Vista Elementary School. Therefore, all of these streets will be slurried during the spring break week of April 5-9. Salient points in the contract documents are as follows: - Award contract to the lowest responsive and responsible bidder; - Bidders are required to post a 10% bid bond; - Prevailing wages are a contract requirement; - Contractor is required to post performance and labor and material bonds for 100% of the contract amount; and - Contractor is required to complete the work in 40 working days Staff intends to advertise for bid in the Aliso Viejo News and online contractor plan rooms. The schedule for this project is as follows: - Council approve advertising for bids February 3, Advertise for bids February 4 March 2, Bids due 2:00 pm March 2, Council approves award of contract March 17, Notice to Proceed March 30, Start construction April 1, Complete construction (40 working days) May 26, 2010

13 Shaun S. Pelletier Assistant City Engineer APPROVED FOR SUBMITTAL TO THE CITY COUNCIL Mark A. Pulone City Manager Attachment: 1. Maps of FY Slurry Seal showing areas of work

14 City of Aliso Viejo CITY COUNCIL AGENDA ITEM DATE: February 3, 2010 TO: FROM: City Council Scott Smith, City Attorney Albert Armijo, Director of Planning Services SUBJECT: A REQUEST FOR A CONDITIONAL USE PERMIT TO ESTABLISH A RELIGIOUS, FRATERNAL, OR SERVICE ORGANIZATION OF A NON- PROFIT NATURE WITHIN PACIFIC PARK PLAZA BUSINESS PARK AT ALISO CREEK ROAD (CONTINUED FROM JANUARY 20, 2010) RECOMMENDED ACTION: Adopt Resolution 2010-XXX to approve Conditional Use Permit UPAV09-11 to establish a religious, fraternal, or service organization use of a non-profit nature within Pacific Park Plaza at Aliso Creek Road. APPLICANT: PROPERTY OWNER: Kingsfield Church c/o Bob Bunyan, Robert Bunyan & Associates Skyline Mission Viejo, CA Jan-Erik Palm Oxford Spectrum Aliso Creek Road, Suite 196 Aliso Viejo, CA LOCATION: Aliso Creek Road, Suites 100, 105, 110, & 115 BACKGROUND: On January 20, 2010, the City Council continued the Public Hearing for this item and posed questions pertaining to nature and enforcement of staff recommended Conditions of Approval #5 and #7. PROJECT DESCRIPTION: On September 3, 2009, the Applicant applied for a conditional use permit to establish a religious organization at Aliso Creek Road, Suites 100, 105, 110, & 115, which together occupy 5,500 square feet currently used for offices. The Applicant is proposing Agenda Item

15 UPAV09-11 February 3, 2010 Page 2 to use 3,300 square feet of the 5,500 square feet for Kingsfield Church administrative offices and 2,200 square feet as multi-purpose space for assembly use (staff meetings, group meetings, and storage). Administrative office hours of operation will be Monday through Friday from 8:00 a.m. to 5:00 p.m. The Applicant is proposing to have assembly permitted according to the schedule noted in Condition #5 below. DISCUSSION: Condition #5 The Condition reads as follows. Hours of operation shall be limited to the schedule provided by the Applicant. Schedule of assembly uses shall occur as follows: Day(s) Time Attendance Tuesday through Friday 9:00 a.m. to 11:00 a.m. up to 35 adults Tuesday through Friday 7:00 p.m. to 9:00 p.m. up to 35 adults Sunday 7:00 a.m. to 11:00 a.m. up to 100 adults and/or youth Saturday & Sunday 6:00 p.m. to 9:00 p.m. up to 100 adults and/or youth The Council inquired about the ability to prevent the Applicant from using all or a portion of the 5,500 square feet for assembly use during hours other than those specified in the Project Description. Condition #5 limits office and assembly use to 16 hours (8 hours during normal business hours; 8 hours during evenings) on four weekdays and limits the number of persons using the project during Wednesday assembly hours to a maximum 35. This Condition further would limit the number of persons using the project for assembly to 100 during weekends at times specified in the Project Description. Staff believes parking on the project site thereby is adequate for proposed office and small assembly uses due to staggered hours of project operation as demonstrated in the Applicant-prepared Parking Study staff reviewed and approved. Currently the four suites totaling 5,500 square feet in area house offices use and do not have a negative impact to parking within Pacific Park Plaza. The Council also inquired about potential impacts if Church attendance were to increase. Condition #5 stipulates strict limits on numbers of persons who may occupy the 5,500 square feet of project area. A new or amended Conditional Use Permit would be required to allow any increase in attendance noted in Condition #5. Condition #7 The Condition reads as follows. Agenda Item

16 UPAV09-11 February 3, 2010 Page 3 The Applicant shall submit an updated parking study for Pacific Park Plaza six (6) months after receipt of a Certificate of Use and Occupancy from the City of Aliso Viejo or upon Pacific Park Plaza becoming ninety-five percent (95%) occupied, whichever occurs first. Said parking study shall be prepared by a licensed traffic engineer and subject to review and approval of the Director of Planning Services and City Engineer. The parking study shall be conducted at the expense of the Applicant and/or Property owner. Furthermore, at any point in time, parking in Pacific Park Plaza shall be subject to analysis in any future parking study and review at the discretion of the Director of Planning Services and/or City Engineer. In the event parking is deemed inadequate, the Applicant shall be required to reduce its assembly use to an adequate level subject to the satisfaction of the Director of Planning Services and City Engineer. This Condition is recommended because current parking on the Pacific Park Plaza property (which currently is 91% occupied) is 143 spaces deficient of Zoning Code requirements. Therefore, any use occupying the four suites Kingsfield Church seeks to occupy would maintain or add to the existing parking deficiency on the property. However, as noted in the previous staff report, the parking study RK Engineering prepared concluded there is sufficient parking available in Pacific Park Plaza based on actual parking counts conducted. The parking study indicated Pacific Park Plaza would maintain an availability of 83 parking spaces during weekdays and an availability of 238 parking spaces on Sundays. The Council raised a question about the City s ability to enforce provisions of Condition #7. This Condition requires the Applicant to submit an updated Parking Study for Pacific Park Plaza six months after receipt of a Certificate of Use and Occupancy or upon Pacific Park Plaza becoming 95 percent occupied, whichever occurs first. In addition, if the Director of Planning Services and City Engineer deem the parking indicated in the Parking Study inadequate, the Condition requires the Applicant to reduce its assembly use to achieve adequate parking. The Director of Planning Services and the City Engineer must approve any updated Parking Study to ensure the assembly use will not be detrimental to Pacific Park Plaza and its tenants. The City is responsible for enforcing Condition #5, Condition #7, and any other Condition. Staff has proposed the draft Condition #7 to ensure a future Parking Study and to clarify ramifications of inadequate parking as it relates to the proposed assembly use. RECOMMENDATION: Adopt Resolution 2010-XXX to approve Conditional Use Permit UPAV09-11 to establish a religious, fraternal, or service organization use of a non-profit nature within Pacific Park Plaza at Aliso Creek Road. Agenda Item

17 UPAV09-11 February 3, 2010 Page 4 Prepared by: Approved by: Jennifer Lowe Associate Planner Albert Armijo Director of Planning Services APPROVED FOR SUBMITTAL TO THE CITY COUNCIL Mark A. Pulone City Manager Attachments: 1) January 20, 2010 Staff Report 2) Resolution No XXX Draft 3) Vicinity Map 4) Floor Plan 5) Use Description from Kingsfield Church September 3, ) Supplemental Letter from Robert Bunyan & Assoc. December 9, ) Revised Parking Study December 7, 2009 Agenda Item

18 City of Aliso Viejo Agenda Item DATE: February 3, 2010 TO: FROM: Mayor and City Council Mark Pulone, City Manager Helen Wilson, Community Services Director SUBJECT: SUMMARY OF AQUATIC CENTER OPERATIONS Recommended Action: Receive presentation from staff on year-to-date Summary of Aquatic Center operations. Fiscal Impact: There is no fiscal impact associated with this recommendation. The net operations costs for the Aquatic Center in the adopted Budget for FY is $183,900. Direction provided by City Council will enable Staff to prepare an annual budget for the Aquatic Center that will be considered in conjunction with the FY Mid-Year Budget review and/or the FY Annual City Budget. Background: At its meeting on December 2, 2008, the City Council was presented with options for operating the new Aliso Viejo Aquatic Center. The Council approved the budget and the Peak Season operating option for the Aquatic Center and directed the facility to officially open on Memorial Day weekend (Saturday, May 23) and operate until the end of summer season on Labor Day (September 7). With the recent Council action taken on December 2, 2009, an RFP was issued for the Management, Operation and Marketing Services for both the Conference Center and Aquatic Center, to be effective July 1, Those requested proposals are due on February 12, 2010, with an operator selection by Council anticipated in April. The current operator management agreement expires on July 31, 2010, allowing the month of July (and the start of FY ) for a smooth transition in operations for the Aquatic Center if necessary.

19 Discussion: The Aquatic Center operated 7 days a week during the peak season of Memorial Day weekend to Labor Day. For the five months the facility was open, the monthly average net operations costs was $20,000. Projected revenues of $227,285 and appropriations of $411,165 were included in the FY adopted budget for the Aquatic Center for a net operations cost of $183,900. Mid-Year amendments to the budget reflect estimated revenues of $114,100 and appropriations of $283,250 for a revised net operations cost of $177,600. Current year operations reflect that both revenues and appropriations came in much lower than budgeted. However, the original budgeted net operations cost is close to the projected net operations cost. The following is an overview of the first season of operations. Net Operations Costs for First Operating Season May to September, 2009 (Open) The following table illustrates the expenditures and revenues for the 5 months the Aquatic Center was open, as well as the actual net operations costs: FY FY FY FY FY Facility Open May June July Aug Sept TOTAL Payroll $ 7,000 $ 26,814 $ 25,057 $ 23,817 $ 7,110 $ 89,799 Utilities $ 8,378 $ 8,002 $ 7,628 $ 7,774 $ 4,428 $ 36,210 Bldg & Grounds Maintenance $ 2,691 $ 2,608 $ 2,615 $ 2,784 $ 2,650 $ 13,348 Pool Maintenance $ 2,800 $ 5,600 $ 5,600 $ 5,600 $ 2,800 $ 22,400 Supplies $ 1,980 $ 2,350 $ 2,145 $ 1,975 $ 1,960 $ 10,410 Cost of Food & Beverages $ 1,515 $ 1,589 $ 1,445 $ 1,454 $ 1,497 $ 7,500 Marketing $ 179 $ - $ - $ - $ - $ 179 Fees & Permits $ - $ - $ - $ - $ 867 $ 867 Insurance/Mgmt Fees $ 2,479 $ 2,479 $ 2,479 $ 2,479 $ 2,479 $ 12,396 Total Expenses $ 27,022 $ 49,442 $ 46,969 $ 45,883 $ 23,791 $ 193,108 Less Revenues $ 2,755 $ 14,660 $ 33,826 $ 31,042 $ 11,011 $ 93,294 Net Operating Cost $ (24,267) $ (34,782) $ (13,143) $ (14,841) $ (12,780) $ (99,814)

20 Net Operations Costs for the Months of October 2009 to April 2010 (Closed) The following table illustrates the estimated costs for keeping the facility closed from October 2009 to April 2010, with projections based on actual expenses to date and estimated expenses for the seven months the facility is not open. FY FY FY FY FY FY FY Facility Closed Oct Nov Dec Jan Feb March April Totals Payroll Utilities 2,490 2,490 2,490 2,490 2,490 2,490 2,490 17,430 Bldg & Grounds Maintenance 2,430 2,430 2,430 2,430 2,430 2,430 2,430 17,010 Pool Maintenance 3,450 3,450 3,450 3,450 3,450 3,450 3,450 24,150 Supplies 2,000 2,000 2,000 2,000 2,000 2,000 2,000 14,000 Marketing ,100 Fees & Permits ,310 Insurance/Mgmt Fees 2,500 2,500 2,500 2,500 2,500 2,500 2,500 17,500 Total Expenses 13,500 13,500 13,500 13,500 13,500 13,500 13,500 94,500 Less Revenues Net Operating Costs (13,500) (13,500) (13,500) (13,500) (13,500) (13,500) (13,500) (94,500) Hours of Operation In the first operating season, the Aquatic Center operated for 106 days, from Memorial Day weekend through Labor Day. Weekday operating hours for Monday through Thursday were 6:00 am until 9:00 pm and lifeguard staffing levels were adjusted in July due to low swimmer turnout in the early morning hours. Friday operating hours were from 6:00 am 8:00 pm. Weekend operating hours for Saturday & Sunday were 9:00 am 5:00 pm. Monday Tuesday Wednesday Thursday Friday Saturday Sunday 6 AM 9 PM 6 AM 8 PM 9 AM 5 PM x x x x x x x

21 Attendance Levels For the Peak Season period of May 23 through September 7, overall average daily attendance was 118, with daily averages as shown in the table below. Attendance was much lower in May and early June, as a result of schools still in session and cooler weather. Highest day of attendance was Labor Day with 360 adults and children. Attendance increased mid-june when school closed for the summer. Mon Tues Wed Thur Fri Sat Sun Average High Low Peak Season Daily Totals 1,930 1,296 1,630 1,890 1,933 1,714 1,776 Monthly attendance levels were as follows: May (7 ) June (30) July (31) Aug (31) Sept (7) Total 299 1,911 4,994 3,689 1,276 12,169 Staffing Staffing consisted of one full-time Aquatics Director and about 20 part-time lifeguards who were available to provide a minimum level of service of 3 to 5 lifeguards per shift. Uniforms consisted of navy ladies 1-piece or 2-piece swim suits and men s swim shorts, white polo shirt, navy windbreakers, and navy visor. Facility oversight was provided by the ClubCorp General Manager. Contracted swim lessons were provided by Swim Venture with 3 to 6 swim instructors providing lessons throughout the season. Snack Bar staff consisted of one full-time attendant/cashier and one full-time chef. The full-time chef position was adjusted to part-time mid-summer due to the lower demand for hot food or grilled items..

22 Revenue Sources Revenues were generated from daily use fees, swim lessons and program fees: Resident Daily Fee: Aliso Viejo Resident Daily Use Fees were $5/adult; $3/child/Seniors; and children under 2yrs/free. Total daily fees collected for the season were $49,480, which included $5,435 collected from Shea for passes used by Glenwood Homeowners. Non-Resident Daily Fee: Use Fees were $7/adult; $5/child/Seniors; and children under 2yrs/free. Total non-resident fees collected were $2,500, which represented approximately five per-cent of the user fees. Swim Lessons & Classes: Swim Lessons were contracted by ClubCorp with Swim Venture and provided a 30/70 split of revenues with City receiving 30%. Registration was convenient and offered on-line through their website. Swim lesson fees varied depending on the program length and instructor/swimmer ratio and ranged from $50 to $90 per swimmer, for 3 lessons per week. Swim Aerobic classes were also held and staffed by Aquatics Director. Both lessons and classes generated combined revenue of $7,150. Snack Bar: The Snack Bar was generally open daily from 11:00 am to 5:00 pm, with operating adjustments made for special programs or slow-day trends. Snack Bar revenue was $18,895. Customers were not allowed to bring their own food, but they were allowed to bring bottled water. Many groups chose to picnic at the adjacent Vista Park before or after swimming. For FY , it will be the Conference Center operator s responsibility to manage the Snack Bar, with collaboration from the Aquatic Center operator and City, as described in the RFP. Daytime Pool Parties: Group parties were offered as a way of providing dedicated space for birthday and other celebrations held during regular operating hours. Registration was required and the adjacent Vista Park was frequently used to accommodate picnics prior to or following swimming at the Aquatic Center. There were 14 pool parties held during the season. After-Hours Pool Parties: No after-hours or off-season events were booked. Rental opportunities will continue to be offered to groups interested in using the facility during non-operational hours. Merchandise Sales: A total of $363 in revenue was derived from sales of sunscreen, swim diapers and goggles. There is little dedicated space to store merchandise and the items offered to the patrons were more for sanitation and safety purposes than revenue generation.

23 Programs Depending on the final selection of an operator for new Aquatic Center operations, many of the following programs will be reviewed and adjusted to allow for greater opportunities to patrons as well as enhanced revenue generation. The following summarizes programs that were provided this past season. Events Lap Swimming was available on a daily basis in the Main Pool and 5 lane lines were installed to accommodate lap swimmers at a time during early morning hours between 6:00 am to 9:00 am. Lane lines were reduced to 2 lanes during open recreational swimming times. About 10 to 12 lap swimmers utilized the space on average throughout each day. Water Aerobics was offered Monday Thursday, from 5:30 pm to 6:30 pm and on Tuesdays, Thursdays and Saturdays from 9:00 am to 10:00 am. Class fee was $8 per swimmer and included entrance to the pool. Aquatic Staff reported this to be a highly rated program and attendance levels averaged about 5 to 8 swimmers per class. Water Polo lessons and scrimmages were held every Friday. Thirty-minute lessons took place in the main pool between 1:00 pm to 3:00 pm. Fees varied for private lessons ($40), semi-private ($20) and groups ($10). Open scrimmage was offered directly after the lessons session, from 3:00 pm to 4:00 pm. Scrimmage fee was $5 per player or free to players who took lessons that day. This program got off to a slow start and attendance levels were lower than expected, as less than 5 swimmers participated. The program was tailored to beginners and more interest was expressed towards the end of season. Aquatic Staff felt this is a viable program and requires more promotion for next year. Boys & Girls Club: The Aliso Viejo Branch at Iglesia Park offered a weekly swim program on Wednesdays and an average of 45 children attended with paid attendance of $3 per child. Opening Day Ceremony & Free Swim was held on Saturday, May 23, with an estimated attendance of over 500 children and adults throughout the day. Ribbon Cutting started at 10:00 am, with free swimming immediately following until 5:00 pm. PCM & ClubCorp provided over 1,000 free hot dogs and water. Kaitlin Sandeno Day was held on Thursday, August 13, from 3:00 pm to 6:00 pm and offered a chance for the 54 attendees to meet with a four-time Olympic medalist who lives locally. Kailtlin brought her actual medals to share, offered autographs, photo ops, safety tips and swim pointers to children, teens and their parents. Kaitlin enjoyed the opportunity and expressed a desire to return for another similar program.

24 5 O clock Friday offered a discounted rate for families: $5 after 5:00 for a family of up to 5. This special of the week kick-off was on July 31 st and was attended by 123 persons. Total attendance for the day was 151 persons. The snack bar operating hours were adjusted to accommodate increased F&B sales. This program was initiated when Aquatic staff noticed an expected attendance drop in late summer. 2-for-1 Tuesday offered a discounted rate for swimmers who brought a friend. Program was held on first two Tuesdays in August and Tuesday attendance levels averaged 140 persons each day, as compared to the summer season average of 106 persons. Labor Day Extravaganza was held on September 7, the last day of the season, from 12:00 Noon to 6:00 pm. Reduced admission was offered at $3 per person and included a variety of free activities: swimming relay races, crafts table, coloring contest, water balloon toss, limbo & hula contests, sack races, water polo & soccer scrimmage, and aerobics class. Event attendance was the highest of the season with 360 children & adults. As an added bonus, the Mayor stopped by and provided over 100 donated Angel baseball tickets. Comments and suggestions were received from Aquatics Staff and members of the community on a regular basis and included the following: Season Passes: These were not offered; however, there were several suggestions from pool patrons for annual, monthly or seasonal passes that would offer a flat fee for unlimited access to the Aquatic Center. Customers suggested they would most likely use the pool more frequently if passes were offered. Suggestions were also received for family passes. Many residents indicated to Aquatics Staff that they were interested in opportunities to drop in for a shorter swim sessions in the main pool as well as evening use of the whirlpool. Furniture & Umbrellas: More shade and places to sit were recommended. At mid-season, the use of customer s own beach chairs was allowed to accommodate the increased demand by adults who wanted to sunbathe or lounge while children were in the pool. Marketing: Suggestions were received to increase efforts to raise awareness of facility, operating hours, and announcement of swim lessons, program and events need greater publicity. Currently, there is $2,500 in the FY Aquatic Budget, with a request for mid-year adjustment to $3,000. Operating Hours: Many requests were received for facilities to be open through October or later, with public access on weekends. Many expressed an interest for the facilities to be open later on weekends until sunset or thereafter.

25 Lessons & Classes: Residents enjoyed the availability of swim lessons and aerobic classes and several suggested extending them for more months during the year. This could be considered if operating period is extended. Pricing: Comments were received that the daily fees were too high for families with children or on tight budgets. A resident family of four would pay an average of $16 per visit, plus snack bar expenses. Many families were only interested in using the facilities for under two hours at a time, due to other scheduled activities. Daily Fee concerns may be lessened if passes were made available. Positive Feedback: The majority of customers who provided Aquatic Staff with feedback were extremely happy with the facilities and commented often how pleased they were with the beautiful surroundings and views, convenience and availability of swim lessons, and mentioned the splash pad was fun and entertaining for toddlers. In general, residents enjoyed having a community pool where they could sunbathe, relax and lounge; meet and visit with neighbors or friends; or enjoy the benefits of a recreational or lap swim. Options for Expanded Operations Based on feedback received to possibly keep the Aquatic Center open for longer periods, staff has estimated the following operational costs for the facility: Average monthly cost for expenses to maintain the facility during non-peak Season (7 closed months) is $13,500. Average monthly costs to open on Weekends increases expenses by $8,500 and $1,000 would be offset for revenue, for a total average net monthly cost of $21,000 to keep facility open on weekends only during the non-peak Season. Facility Open on Weekends Non Peak Baseline Monthly Maintenance Costs $ 13,500 Expenses for Weekend Operations $ 8,500 Total Estimated Expenses $ 22,000 Less Projected Revenues ($ 1,000) Total Monthly Net Operations Costs $ 21,000 The estimated monthly cost of $21,000 to keep the facility open during the 7-month non- Peak Season is based on the following operation assumptions: Lap Pool would be open and heated. Recreation Pool, Jacuzzi and Splash pad/wading pool would be closed. Snack Bar would be closed, unless sufficient number of patrons justified its operations. Days of operation would be Saturday and Sunday. Hours of operation would be 9:00 am to 5:00 pm

26 Staffing would include 2 part-time lifeguards per day, per shift (1-2 shifts); one part-time Aquatic Director. Monthly weekend revenues are conservatively projected at $1,000, which assumes an average of 34 swimmers per day. Daily operations during the non-peak Season might be another option. Accordingly, the estimated costs to keep the facility open for an average full month of operations during the non-peak Season would include $16,500 for expenses (in addition to the $13,500 baseline monthly expenses) and $2,000 for revenues, for a total average net monthly cost of $28,000. These revenues are conservatively projected and assume an average of 22 swimmers per day. However, actual costs per month may vary slightly due to changes in utility costs and revenues. Moreover, with the addition of pool covers, the utility costs would be reduced. The estimated cost to cover the Lap Pool is $30,000 and is recommended if non-peak Season operations are considered. Facility Open Daily Non Peak Baseline Monthly Maintenance Costs $ 13,500 Expenses for Daily Operations $ 16,500 Total Estimated Expenses $ 30,000 Less Projected Revenues ($ 2,000) Total Monthly Net Operations Costs $ 28,000 The current FY Aquatic Center Budget provides for daily operations throughout the Peak Season of Memorial Day weekend through Labor Day. Opening the Aquatic Center prior to Memorial Day will require a budget amendment during the Mid-Year budget review. Extending the operating season past Labor Day would be considered during the FY Budget process. It is recommended the City Council consider the review of the first season of operations and provide staff with direction on any potential changes in operations to incorporate into the Annual Budget process. Helen Wilson Community Services Director APPROVED FOR SUBMITTAL TO THE CITY COUNCIL Mark A. Pulone City Manager

27 City of Aliso Viejo Agenda Item DATE: February 3, 2010 TO: FROM: Mayor and City Council Gina M. Tharani, Dir. Of Financial Services/City Treasurer SUBJECT: MID-YEAR BUDGET AND STRATEGIC INITIATIVES Recommended Action: 1. Adopt the recommended Mid-Year Budget for Fiscal Year Review the Strategic Initiatives and provide direction to staff. Fiscal Impact: This fiscal year, Council approved $884,010 in budget amendments to date. Funds appropriated included $781,010 for capital projects using Proposition 1B funding and $103,000 from Development Impact funds for the Conference Center kitchen remodel project. These budget amendments, together with recommended mid-year adjustments, increased the general fund fund balance by a net positive of $53,255. The total change in the general fund fund balance is projected at $321,240 at year end. The net change to the overall City fund balance, which includes the general fund and all other City funds, is a decrease in the unreserved fund balance in the amount of $16,925. The year-end projection for the change in the overall City fund balance is ($1,032,000). This is predominantly due to adjustments to the Aliso Viejo Conference Center and Aquatic Center adopted budgets, the reallocation of funding sources for the Capital Improvement funds, and Measure M competitive funds that will be expended during the current fiscal year but will not be received until fiscal year , due to the timing of the projects and processing of these grant funds. Background: In preparation for the adoption of this year s Annual Budget, the Council held two budget workshops on March 19, 2009 and May 6, Additional workshops were held on May 20, 2009 and June 3, 2009 for discussion on the containment of costs for the Law Enforcement contract. On June 17, 2009, Council approved and adopted the Fiscal Year Annual Budget. The resulting budget both maintained service levels and kept additions to a minimum by only including appropriations absolutely necessary for operations.

28 Discussion: Recent economic data indicates the great recession ended after the 2 nd quarter of The general consensus is that the U.S. economy is indeed on the road to a mild recovery. The third quarter of 2009 showed an encouraging increase in real GDP of an annual rate of 2.2%, the first increase in a year. The increase was mainly attributed to federal government stimulus programs for consumer spending such as Cash for Clunkers and an expansion of the first-time homebuyer s credit. Preliminary reports for the fourth quarter of 2009 are positive, with retail sales, business inventories, and the trade balance all showing strong indications that real GDP will continue its upward trend. End of year data also exhibited a significant increase in the number of temporary workers being hired, a positive sign often indicating a trend toward permanent hiring. This trend is particularly encouraging to policymakers, as unemployment remains the major concern going into California was especially burdened by the recession and experienced a disproportionately higher number of payroll job losses than other states with relatively lower GDP. Currently, unemployment in California is at 12.4%. Locally, Orange County is faring better at 9.1%. The state is now facing a $19.9 billion budget deficit. The governor s proposal includes spending cuts, revenue shifts, and pleas to the federal government for increased assistance. However, as the governor and Legislature are still in the early stages of their budget process, the impact on local governments remains highly uncertain for next fiscal year. Orange County s housing market is expected to see an increase in the supply of distressed homes in 2010; however, this will likely be offset by an increased demand for lower-priced homes. The decline in housing values is expected to contribute to a modest recovery, still restrained by unemployment concerns and unstable credit markets. As noted though, Orange County s unemployment rate is relatively lower than the rest of the state, a critical factor affecting the momentum of the County s economic recovery. Commercial real estate markets, on the other hand, are not expected to rebound quickly. The vacancy rate in Orange County hit a high of 19.4% in the third quarter of 2009, up from a low of 6.9% in New development within Aliso Viejo added $45.3 million of assessed values to the tax rolls for Nevertheless, Proposition 8 reductions on residential properties resulted in the City experiencing a net taxable value decrease of 3% for the same time frame. During the FY budget process, Staff provided Council with conservative estimates to better account for the impacts of the unpredictable economic environment surrounding the City. City revenues are, overall, in line with original FY projections but have been fine-tuned within the various categories to better reflect current trends in receipts. These modifications were necessary to accommodate the impacts of the sluggish economy, state level impacts, and triple flip adjustments.

29 General fund revenues received are at 48.82% and appropriations expended are at 52.58% of the mid-year budget forecast. In the proposed mid-year adjustments, revenues were increased by $193,245, or 1.5%, to accommodate changes in the trend of receipts. The main contributors to the increase in revenues were Transit Occupancy Taxes, Fines and Forfeitures, and fees collected for the Affordable Housing Administration program. Decreases were a combination of low interest earnings, and adjustments to the receipts of Sales Tax in Lieu revenues from the elevated projections originally provided by the State. The City s decision to participate in the Proposition 1A Securitization Program, which sought to recoup Property Taxes withheld by the State in connection with their budget adjustment process, ensured the City s receipt of $281,203 on Jan. 15, The remaining fifty percent of $281,203 is expected on May 3, The state is required to pay all costs associated with the securitization, including the 4 percent yield on the bonds and all transaction costs. General fund appropriations were increased by a total of $139,990. Included in this amendment is $150,000 for the transfer of funds to the City facilities to cover current year operational costs as well as minor adjustments to the budgets of all departments to accommodate year-end activity and accruals. Supplementary consultant costs have also been included for the completion of the Zoning Code revisions and for a Citywide Radio Frequency study. This study will identify areas of Radio Frequency overconcentration and/or deficiencies. In addition, funds in the amount of $40,000 have been included in the Economic Development account for marketing efforts. Decreases included a reduction in codification costs in the City Clerk s department due to timing constraints for the completion of the entire Municipal Code project; these funds will be re-appropriated in the next fiscal year. Also included was a significant savings in City Hall operational costs from tenant improvements that were planned to follow an expiring lease but ultimately were deemed unnecessary by the tenants, thus saving the City $22,820. Special Revenue Funds have been fine-tuned to reflect current trends in the collection of receipts and expenditures incurred. Revenues for the Traffic Congestion Relief Funds (TCRF) have been adjusted to reflect the possible receipt of $105,400 of Proposition 42 City Aid program funds in fiscal year This program has been placed on hold until March 2010, when it will be reevaluated by the County. Due to construction schedules for CIP projects, Measure M revenues have been adjusted by $691,000 to reflect the receipt of competitive grant funds now expected in fiscal year Gas Tax revenues were also adjusted slightly to reflect the trend in receipts. Although payments for Gas Tax and TCRF revenues have been delayed by the State, these delays will not impact City operations or the budget as these funds are expected to be collected within the current fiscal year. Appropriations in the TCRF, Measure M and Gas Tax funds have been updated to accommodate the change in funding sources and the timing of construction for Capital Improvement Projects (CIP). Mid-year projections for CIP projects reflect an overall adjustment of $790,885. Projects included in this adjustment are the Aliso Creek at