DATE: June 12, 2018
SUBJECT:
Title
CONDUCT PUBLIC HEARING AND ADOPT AN ORDINANCE ADOPTING THE FISCAL YEAR 2019 FINAL BUDGET
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EXECUTIVE SUMMARY:
In accordance with the San Diego Unified Port District Act (Port Act) Sections 46 and 47, by June 15th, the District must adopt and publish the Fiscal Year (FY) 2019 Preliminary Budget and set a date for the Board’s adoption of the final budget not less than one month from publication. Staff will present the final budget to the Board for adoption on June 12, 2018.
On May 8, 2018, the Board adopted the FY 2019 Preliminary Budget. In addition, the Board also approved and adopted as part of the FY 2019 Preliminary Budget, the changes needed from an anticipated California Energy Commission (CEC) grant which included $581k in additional capital grants revenue, $350k in capital labor for the Capital Improvement Program (CIP) in FY 2019, and $4.5M in the FY 2019-2023 CIP for the Microgrid Infrastructure at TAMT project.
The late addition of the CEC grant into the FY 2019 Preliminary Budget was necessitated by the awarding of the final grant on May 9, 2018 and the CEC’s request for an immediate start to the project. Staff will bring the full grant agreement to the Board for approval on June 12, 2018.
Below is a summary of the updated FY 2019 Budget that reflects the inclusion of the portion of the CEC grant that will be executed in FY 2019:
In accordance to Section 47 of the Port Act, staff published a notice of adoption of the Preliminary Budget and hearing date on Final Budget adoption.
The proposed Board action to adopt an ordinance adopting the FY 2019 Final Budget fulfills the requirements of the Port Act budget provisions.
RECOMMENDATION:
Recommendation
Conduct public hearing and adopt an ordinance adopting the FY 2019 Final Budget.
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FISCAL IMPACT:
This proposed Board action will appropriate funds for FY 2019 expenditures as follows:
Compass Strategic Goals:
This agenda item supports the following Strategic Goal(s).
• A Port that the public understands and trusts.
• A thriving and modern maritime seaport.
• A vibrant waterfront destination where residents and visitors converge.
• A Port with a healthy and sustainable bay and its environment.
• A Port with a comprehensive vision for Port land and water uses integrated to regional plans.
• A Port that is a safe place to visit, work, and play.
• A Port with an innovative and motivated workforce.
• A financially sustainable Port that drives job creation and regional economic vitality.
DISCUSSION:
On April 17, 2018, the District held a workshop to review the FY 2019 Preliminary Budget. During the workshop, the Board accepted the FY 2019 Preliminary Budget along with approving the following items:
• Use of $5.6M of cumulative unrestricted resources as TIGER matching funds for the Demolition and Site Improvements of Transit Sheds 1 and 2 for the TAMT project
• Apply $3.3M of Capital Improvement Project (CIP) funds from the Navy Pier Head House Demolition project to the Capital Major Maintenance (MM) Structural Repairs
• Use $500k of cumulative unrestricted resources to fund the $450k Baywide Informational and Wayfinding Signage project, and a $50k increase in the FY 2019 Tidelands Activation Program (TAP) sponsorship
On May 8, 2018, the Board adopted the FY 2019 Preliminary Budget that reflected the actions taken at the April 17, 2018 Board workshop. In addition, the Board approved and adopted as part of the FY 2019 Preliminary Budget, the changes needed from an anticipated California Energy Commission (CEC) grant which included $581k in additional capital grants revenue, $350k in capital labor for CIP, and $4.5M in the FY 2019-2023 CIP for the Microgrid Infrastructure at TAMT project.
On May 8, 2018, the Board set June 12, 2018 as the date the Board will meet for the purposes of adopting the Final Budget. In accordance to Section 47 of the Port Act, staff published a notice of adoption of Preliminary Budget and hearing date on Final Budget adoption.
The proposed FY2019 Final Budget can be found as Attachment A. The proposed Board action to adopt an ordinance adopting the FY 2019 Final Budget fulfills the requirements of the Port Act budget provisions.
General Counsel’s Comments:
The Office of the General Counsel has reviewed and approved this agenda as to form and legality.
Environmental Review:
The proposed Board action does not constitute an “approval” or a “project” under the definitions set forth in California Environmental Quality Act (CEQA) Guidelines Sections 15352 and 15378 because no direct or indirect changes to the physical environment would occur, and the Board’s action does not constitute a binding commitment to implement projects that may be contemplated as part of the fiscal year 2019 Final Budget. Additionally, pursuant to Section 15378(b)(4) of the State CEQA Guidelines, a project does not include the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project that may result in a potentially significant impact on the environment. CEQA requires that the District adequately assess the environmental impacts of its projects. If a project is formulated, appropriate CEQA review will be conducted prior to approval of the same and the Board/District, in its sole and absolute discretion, reserves its discretion to adopt any and all feasible mitigation measures, alternatives to the project, including a no project alternative, a statement of overriding consideration, if applicable, as well as approve or disapprove the project and any necessary permits or entitlements. No further action under CEQA is required at this time.
In addition, the proposed Board action complies with Sections 20 and 47 of the Port Act, which require: the Board to draw up a budget for each fiscal year; and for the Board to hold a public meeting for fixing and adoption of the final budget. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
Finally, the proposed Board action does not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit Regulations. Therefore, issuance of a Coastal Development Permit or exclusion is not required. However, the District’s projects require processing under the District’s CDP Regulations. If the Board considers approval of future development projects formulated as a result of the fiscal year 2019 Final Budget, appropriate permitting under District’s CDP Regulations will be completed and considered by the Board, if necessary. The Board’s action in no way limits the exercise of the District’s discretion under the District’s CDP Regulations.
Equal Opportunity Program:
Not applicable.
PREPARED BY:
Robert DeAngelis
CFO/Treasurer
Attachment(s):
Attachment A: FY 2019 Final Budget