Discussion and possible action to: (a) approve a budget transfer in the amount of $225,000 from the General Fund Contingency account to the AM/PM Program Part-time Wages account; and (b) approve a budget transfer in the amount of $102,000 from the Sports Complex Fund Contingency account to the Sports Complex Electricity and Sports Complex Security Services accounts to supplement several unforeseen and additional department expenses resulting from changes that occurred after the Fiscal Year 2018 budget setting process.

In several divisions of the Community Services Department, operating expenses are trending to exceed the base budget allocation. The factors that contribute to these overages, as well as specifics, are outlined below:

• Electricity expenses at the Sports Complex have increased by $67,000 in FY18. The increase in electricity usage/cost at the Sports Complex is due to rate an increase from APS (a 2.21% increase over l ast year), a longer 2018 Spring Training Season and the addition of seven more night games by Major League Baseball for the upcoming 2018 Spring Training season (in 2017, there were six night games; in 2018, there will be a total of 13). Both the APS rate increase and the increase of night games were announced after the close of the FY18 budget approval. Funds in the amount of $67,000 for these additional expenses are available in the Sports Complex Fund and Council authorization is requested for a budget amendment to cover these expenses.

• Major League Baseball now requires new and extended security services that will cost approximately $35,000 additional in FY18. In May 2017, new Major League Baseball stadium security requirements mandated the use of magnetometers at each stadium entrance, along with full bag checks and increased security staffing for all 2018 Spring Training games. Funds in the amount of $35,000 are available in the Sports Complex Fund and authorization for a budget amendment is requested to cover these expenses. Staff will also endeavor to work with our Major League Baseball partners to seek reimbursement for these additional expenses, as appropriate.

• AM/PM Program cost have increased by approximately $225,000 in FY18 due to an uptick in patronage, a change to new school district start times, and federal and state mandates that govern hourly wages, part-time benefits, compliance with the American with Disabilities Act, and new required staff training hours through the Department of Economic Security as related to participants in the licensed AM/PM Program. Specifically, over 2,100 school children are registered in the current fiscal year, compared to 2,000 at the same time last year. This has increased staff costs and coupled with new, unplanned part-time sick-leave benefits required by the passage of Proposition 206, the FY18 budgeted allocation is no longer sufficient for this program and cannot be absorbed. Fortunately, revenue projections for the AM/PM Program in FY18 have increased by a projected $400,000 over the original forecast and can cover the associated costs. As a result, this is a request for Council to authorize a budget amendment to use $225,000 of this new revenue for the AM/PM program additional expenditures.

All requested additional expenses (totaling $327,000) will be offset by additional AM/PM revenue and funds available in the Sports Complex Fund.

Supplemental budget requests for each of these categories have been submitted for consideration as a part of the FY19 City budget review process.

A: Approve the budget transfer and authorize the expenditure of funds for the amount of $327,000 to cover unplanned operational and maintenance costs for the Community Services Department.

B: Direct staff to continue operations within the authorized FY18 budget, with no additional funds as requested.

If approved, Council authorization will result in a transfer in the amount of $225,000 from the General Fund Contingency account (1000-0300-570000) to the AM/PM Program and $102,000 from the Sports Complex Fund Contingency account (2000-2000-570000) to fund the related accounts listed below. Associated revenue or other reimbursements are included for reference.

All requested additional expenses (totaling $327,000) will be offset by additional AM/PM revenue and funds available in the Sports Complex Fund.