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HomeMy WebLinkAboutStaff Report 2411-3768CITY OF PALO ALTO Finance Committee Regular Meeting Tuesday, November 19, 2024   Agenda Item     2.Information Item: Calendar Year (CY) 2024 Finance Committee Referrals Status Late Packet Report Finance Committee Staff Report Report Type: ACTION ITEMS Lead Department: Administrative Services Meeting Date: November 19, 2024 Report #:2411-3768 TITLE Information Item: Calendar Year (CY) 2024 Finance Committee Referrals Status This report will be a late packet report published on November 14, 2024. 4 8 3 1 Finance Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Administrative Services Meeting Date: November 19, 2024 Report #:2405-3097 TITLE Information Item: Calendar Year (CY) 2024 Finance Committee Referrals Status RECOMMENDATION This report provides a status update of Council referrals requested and approved, during the City Council Retreat and annual Budget Process. Staff recommends the Committee review and accept this report. BACKGROUND This report provides an update of the outstanding Council referrals to the Finance Committee as requested during the February 2024 City Council Retreat, during the May - June 2024 Budget Process, and throughout the year. The City Council requested information on various items that are discussed in this report and is provided in coordination with assigned departments. A summary table of the current referrals and their status follows. Referral Assigned Department Status FY 2023: JMZ ticket pricing analysis to understand interactions between changes to $18 ticket, attendance, and cost recovery Community Services Department Nov 2024 Status: Completed Staff completed an organizational and operational study of the JMZ through professional consultant services. On May 7, 2024, Finance Committee received this information (Report #2403-27971) and recommended additional JMZ resources (staffing, ticketing system and promotion) and offset with revenues from higher ticket pricing during peak period. Council approved Finance Committee JMZ recommendations, and the ticket prices increased from $10 to $14 for peak season effective October 1, 2024. 1 Finance Committee, May 7, 2024: https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=64511 4 8 3 1 Referral Assigned Department Status FY 2023: Planning and Development Services Fee Study Planning and Development Services Nov 2024 Status: In Progress A draft final report is being prepared with findings to be shared with the Executive Leadership Team. Staff anticipate bringing this item to Finance Committee on February 18, 2025 for input and inclusion in the FY 2026 Adopted Operating Budget. FY 2023: Parking Permits Pricing and Parking Permit Funds Financial Status Office of Transportation Nov 2024 Status: In Progress On October 15, 2024, staff presented the Finance Committee (#2409-35372) the parking funds’ financial status (University Avenue, California Avenue, and Residential Preferential Parking Program (RPP)) and overview of potential parking improvements and adjustments under development. Finance Committee provided feedback. As part of the FY 2026 budget process, Staff will recommend evaluating the General Fund financial support as a full or partial subsidy without obligation for repayment. FY 2025 Adopted Budget: Ability Path (Request $250,000) CMO Nov 2024 Status: In Progress On June 4, 2024, the Finance Committee requested that the Ability Path request of $250,000 be considered during the FY 2025 Mid-Year budget review. FY 2025 Adopted Budget: Analyze Fire Emergency Medical Response Fee Adjustments (Ongoing Revenue TBD) Fire Nov 2024 Status: In Progress Staff is analyzing Fire Emergency Medical Response Fees and recommendations will be included in the proposed FY 2026 municipal fee schedule. FY 2025 Adopted Budget: Fire Emergency Medical Response; Supplemental Resources (Estimated costs: $1,000,000- $4,000,000 Ongoing) Fire Nov 2024 Status: In Progress On November 19, 2024, Staff will provide the Finance Committee with the Fire and EMS expansion options. Feedback will guide further exploration of option(s) and funding needed through future budget development. FY 2025 Adopted Budget: Review Parks Restroom Prioritization; Specifically, Pardee Park (Ongoing capital project costs TBD) Community Services Department Nov 2024 Status: Not Started Staff will start community outreach for a potential restroom at Eleanor Pardee Park by January 2025. FY 2025 Adopted Budget: Active Recruitment Digital Marketing Services (Contract Services) Human Resources Nov 2024 Status: In Progress The Human Resources Department is currently in the initial phases of an RFP to review market options and costs for provision of these services. It will inform potential limited use of such services within FY 2025 2 Finance Committee, October 15, 2024, Item #AA1: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14462 4 8 3 1 Referral Assigned Department Status and/or consideration during the FY26 budget development. FY 2025 Adopted Budget: Establish Organizational Development & Safety Division ($135,000 Ongoing; 50% GF/50% ISF) Human Resources Nov 2024 Status: In Progress The transition of risk management from Human Resources (HR) to Administrative Services Department (ASD) is underway with the onboarding of the new Risk Analyst. Staff will further evaluate the need and focus of the proposed organizational development and safety division within HR. FY 2025 Adopted Budget: Explore financial, outreach, and policy processes for adding East Palo Alto to resident rates for the golf course (Ongoing revenue reduction TBD)" Community Services Department Nov 2024 Status: In Progress Staff estimates that extending Palo Alto resident rates to East Palo Alto residents would result in an annual green fee revenue loss of approximately $8,000 to $16,000 of the overall annual green fee revenue of $3.7 million. Staff will seek a recommendation from the Parks and Recreation Commission along with additional public outreach and bring the proposal to the City Council for approval during the annual Municipal Fee Schedule review, with potential implementation considered for the fiscal year 2026 budget. FY 2025 Adopted Budget: Increasing Revenue- Generating CSD Programming to Meet Demand (Ongoing cost & revenue TBD) Community Services Department Nov 2024 Status: Not Started This work is expected to start in 2025. STAKEHOLDER ENGAGEMENT This is an informational report to follow up on Council referral items and has been coordinated internally among departmental parties. ENVIRONMENTAL REVIEW This is not a project under Section 21065 for purposes of the California Environmental Quality Act (CEQA). APPROVED BY: Lauren Lai, Administrative Services Director