Loading...
HomeMy WebLinkAbout1996-04-18 City Council (22)THE SL ECT OF THIS REPORT ISA COUNCIL PRIORITY City BU ’GET 1996-98 City of Palo Alto Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE:APRIL 18, 1996 CMR:210:96 SUBJECT:ADDITIONAL 1996-1998 BUDGET ISSUES AND SCHEDULE FOR FUTURE COUNCIL REVIEW OF BUDGET ISSUES RECOMMENDATIONS This is an informational report, and no Council action is required. This staff report provides Council with background information about certain key issues that are addressed in the City Manager’s Proposed 1996-98 Budget. EXECUTIVE SUMMARY For several years, staff has provided Council with a briefing on the policy issues related to the budget, in advance of Council’s receipt oft he budget document. Because of the number of issues affecting this year’s budget, staff has presented this information at two Council study sessions. The March 25, 1996 Council study session was devoted to issues related to long-term financing needs, which included the traffic safety Council priority. The April 18 Council study session will cover information on the budget issues listed below, along with a separate report on proposed staffing changes: 0 o o o 0 o 0 Assistance to East Palo Alto Families, Youth and Community (Council Priority) Planning Area-Wide Studies and Zoning Ordinance Update Parking Permit Fund Status Automated Payment Service for Utility Customers Charitable Giving for Utility Customers Urban Ministry CMR:210:96 Page 1 of 8 In conjunction with the budget reviews, Council will receive separate reports regarding Utilities rates and reserves, Utility demand-side management programs, and the Utilities Calaveras reserve. This report also includes a schedule for dealing with each of the identified budget issues. ASSISTANCE TO EAST PALO ALTO In June 1994, the City discontinued its support of regular assigned law enforcement personnel to East Palo Alto. This was due to staff shortages in the City’s Police Department and the need to utilize personnel to coordinate law enforcement activities associated with the World Cup Soccer Games at Stanford University. Further, Police staff believes that East Palo Alto’s "crisis" has abated. Criminal activity has significantly decreased and its law enforcement needs are being met by the California Highway Patrol, the Menlo Park Police Department and the San Mateo County Sheriffs Office. Staff does not anticipate any funding needs for Police assistance to East Palo Alto with the 1996-98 Budget. Staffhad planned to return to Council in September 1995 with a status report on the City’s assistance to East Palo Alto. This was delayed, pending the outcome of a proposal for long- term law enforcement services between East Palo Alto and the San Mateo County Sheriffs Office. The East Palo Alto City Council is presently reviewing a proposal prepared by the San Mateo County Sheriffs Office. Staffwill report to Council when a decision is reached. FAMILIES, YOUTH AND COMMUNITY (COUNCIL PRIORITY) The 1996-98 Budget includes programs in the Police and Community Services Department budgets addressing this Council priority. The goals for 1996-98 include providing additional youth activities and locations, particularly for teenage activities; programs and projects to provide intervention for "at-risk" youth and their families; and improving the family environment by strengthening and coordinating existing services for parents and families in need of community support. Particular attention will be directed at consolidating services to avoid duplication of effort and cost, and at accomplishing these tasks through the involvement of the youth, families and neighborhoods for whom services are sought. Specific 1996-97 key plans for this cross-departmental program include the following, which reflect efforts by Police and Community Services staff: Increase recreational opportunities for youth and teen services, including support for the Middle Schools "Outlet" program, visual arts opportunities for teens, and Children’s Theater programs and activities for teenagers. Children’s Theater programs include an intern program to train teens in entering the work CMR:210:96 Page 2 of 8 place, a play targeted specifically for teens, and the Wingspread Summer Stock program for high school and college students; 0 Provide more comprehensive drug and gang prevention training in the schools through the Gang Resistance Education and Training program; Continue job placement pilot program for at-risk youth through joint efforts by Police and Recreation staff; o Create PlaySpot, an interactive learning environment for children under five at the Junior Museum and Zoo; Implement goals and objectives established by the Positive Alternatives for Youth Committee and approved by Council. The Committee is looking at a program that includes recreational activities, mentoring, tutoring, community service, counseling, and job placement components. A community-wide collaboration is being established, including the City, the School District, nonprofit organizations, businesses, and interested individuals; Implement the Family Resource Center Master Plan as recommended by the task force and as funding constraints permit; and Work with the School District to develop the capability for School District and City library computer catalogs’ connecting to each other, allowing users to look at holdings in both library collections. In addition, a delivery system will be established to allow materials to be loaned from any library and delivered to the local City or School library branch most convenient to the borrower. PLANNING AREA-WIDE STUDIES AND ZONING ORDINANCE UPDATE Several special studies (i. e., coordinated area plans) and the resulting Environmental Impact Reports will begin during the next two years. They include a plan for the California/Ventura area and one for the former Palo Alto Medical Foundation/and South of Forest Avenue (SOFA) area. These studies are expected to cost $250,000 to $300,000 each. The Council- approved Palo Alto Medical Foundation (PAMF) Development Agreement commits PAMF to pay two-thirds of the cost of the PAMF/SOFA area plan, to a maximum payment of $200,000. Efforts to obtain private sector fmancial assistance for the Cal/Ventura area plan are being made. Many of the Comprehensive Plan programs will require new regulations, most likely resulting in the need for a complete revision of the zoning ordinance, at an estimated cost of CMR:210:96 Page 3 of 8 $500,000. This cost estimate is equally divided between contract assistance to the Department of Planning and Community Environment and the City Attorney’s Office. Because these studies and programs are one-time in nature, as has been the practice in prior budgets, staff proposes that they be funded through reserves instead of the regular operating budget of the General Fund, through a Budget Amendment Ordinance, when they are ready to begin. To the extent that private funding can be identified to support these plans, it will be proposed as well. PARKING PERMIT FUND STATUS Staffinformed the Council in March 1994 (CMR: 190:94) that the University Avenue Parking District operating and maintenance expenses exceeded revenues, and recommended that annual permits be increased from $200 to $275 per year. At that time, Council decided to delay an increase in permit fees, because a number of other programs were being implemented downtown, including downtown color zone and attendant lot parking. The University Avenue Parking Permit Fund reserves were built up during the years prior to 1994-95, when staff implemented full cost recovery from the Parking Permit Fund for the General Fund support of the parking district. As a result, there have been sufficient funds available in the reserve to cover these annual operating deficits. During the last two years, in addition to covering the deficits, the permit funds have been used for several one-time projects. These include the painting and lighting of the Civic Center, Webster Cowper and Q Garages; the paving of surface lots; and interim signage and an information brochure for color-zone parking. In the 1996-97 Budget, it is projected that parking district expenses will exceed revenues by $160,912. This will bring the reserve level down to approximately $187,000. Consequently, staffplans to recommend that Council implement a parking permit fee increase for the University Avenue District during the 1997-98 interim budget process. The California Avenue Parking District permit revenues continue to cover operating and maintenance expenses. The California Avenue Parking Permit Fund reserves are expected to remain at approximately $275,000, and no increase in the permit fees will be required for the 1996-98 Budget. AUTOMATED PAYMENT SERVICE FOR UTILITY CUSTOMERS In 1994-95, staff evaluated the possibility of offering enhanced payment options to its utility customers. As a part of the study, staff performed a survey of various municipal utilities in California to assess the availability of these options and the level of participation by their customers. Based upon this study and results of the survey, staff has decided to introduce an Automatic Payment Service (APS) that will allow utility customers to electronically pay utility bills from a designated bank account on a monthly basis. Staff will recommend CMR:210:96 Page 4 of 8 introducing APS in conjunction with the implementation of the new Utility Customer Information System (CIS). In addition, staff plans to accept credit cards for over-the-counter payments of utility and all other bills at the City’s Revenue Collections Office in the next few weeks. During 1995-96, staff will finalize an implementation plan, identifying the technical requirements and resources necessary to implement the APS. During 1996-97, as the CIS becomes fully operational, APS will be introduced and implemented. CHARITABLE GIVING FOR UTILITY CUSTOMERS In 1995-96, at the direction of Council, staff began exploring ways to implement a utilities charitable giving program to help residents who are temporarily unable to make utility bill payments. Under the program, which will be modeled after similar charitable programs successfully established by other public utilities, residents will have the option of adding a monthly contribution to their utility bill payments; these contributions will be used to assist other utility customers who are experiencing short-term financial difficulties. The City will collect the contributions, and staff is evaluating if disbursement of funds will be made through the Salvation Army or alternatively by the Utilities Department. A committee, composed of representatives from the Utilities Customer Service section and from the Administrative Services Department’s Finance and Information Technology Divisions, is exploring the best way to collect charitable contributions with minimal impact on stafftime. Council originally suggested that staff pursue a checkoff box option. Under that option, if a resident wants to contribute to the program on his or her monthly utility billing statement, he or she checks a box, indicating the amount of the gift. Although residents may use the checkoff box as often as they wish, use of the checkoff box does not obligate further participation in the program. -Staff is also looking into a pledge system option. Pledge forms, indicating the resident’s willingness to contribute a set amount each month, would be included in the utility bills about every three months. The resident would sign the pledge; and a line item for charitable contribution would be added to the utility bill for the pledged amount, until the resident notifies the City to discontinue charitable contributions. In either case, the contributions will be tax deductible, and the City will notify program participants annually of the total amount of their gift. Staff intends to present a formal recommendation to the Utilities Advisory Commission in July, with implementation of the program to occur early in fiscal year 1996-97. URBAN MINISTRY For a number of years, the City has been providing funds to the Urban Ministry of Palo Alto (UMPA) through its Community Development Block Grant (CDBG) allocation process and/or the Human Services Resource Allocation process (HSRAP), to fund homeless CMR:210:96 Page 5 of 8 services. For the last several years, UMPA has received only a CDBG allocation from the City. In July 1995, UMPA requested that the City advance a portion of the current year’s CDBG allocation to help UMPA cover cash flow problems. Staff denied this request, as it violated CDBG regulations. In November 1995, UMPA requested additional funding from the City. Staffadvised UMPA that additional funds might be available from the General Fund through the HSRAP process, as there is a limit to the availability of public service funding under CDBG. During staff review of the CDBG funding requests for 1996-97, staff became aware of a number of administrative and financial problems which UMPA was experiencing. A recently released audit of calendar year 1994 revealed serious internal control issues related to cash handling and checking account reconciliations. There also appeared to be a lack of administrative oversight for the UMPA programs. These issues, along with several operational problems, raised concerns about UMPA’s ability to continue to deliver needed homeless services to the community. As a result of these deficiencies, the CDBG Citizen’s Advisory Committee (CAC) recommended placing strict limits on the use of CDBG funds by UMPA and requiring UMPA to improve their financial administration prior to the disbursement of 1996-97 funds. The 1996-97 CDBG budget includes $58,000 for UMPA. Staffhas since requested technical assistance for UMPA from the local Housing and Urban Development (HUD) office in financial and administrative procedures, so that UMPA can remain an eligible recipient of CDBG funding. As of this time, HUD has not responded to the City’s request. Staffhas also helped organize a meeting between UMPA and the David and Lucile Packard Foundation for the purpose of exploring UMPA’s participation in the Packard Foundation’s Management Assistance Program (MAP). This program offers consultant assistance to troubled agencies, with particular attention to review of accounting practices and general business needs. The foundation pays for 80 percent of the consultant’s fee, and UMPA has been awarded funding, pending their coming up with funds for their 20 percent share. Because of limitations in the amount of human services contract funding given ongoing commitments to other agencies, as well as significant concerns regarding UMPA’s financial and administrative practices, staff is not recommending an allocation from HSRAP in 1996- 97. Below is a proposed schedule for dealing with each of the budget issues that have been discussed with the Council during the Committee of the Whole sessions: CMR:210:96 Page 6 of 8 Budget Issue Permit Streamlining Automated Payment Service for Utility Customers Emergency Management Plan Fire Services Consolidation Study Families, Youth and Community Options for Long-Term Funding of General Fund Programs at the Cubberley Community Center, Augmented Street and Sidewalk Program, Citywide Childcare Co-ordination and Lease and Covenant Not to Develop with the PAUSD Committee or Council Review Council Finance Committee Policy and Services Policy and Services Finance Committee Timeline for Review April 8 May 7, 1996 (Budget) May 14, 1996 May 14, 1996 May 14, 1996 (Budget) Finance Committee Urban Ministry -CDBG Council Human Services Finance Committee Assistance to East Palo Alto Finance Committee Tree Program Finance Committee Charitable Giving for Utility Customers Finance Committee Areawide Planning Studies Council Emergency Medical Services/Paramedic Policy and Services Family Resource Center Council Library Master Plan Council Positive Alternatives for Young Council Traffic Safety Program: Prioritization of Programs and ProjectsFinance Committee Comprehensive Plan Council Utilities Advisory Utilities Organization Review Commission Fall 1996 Major Infrastructure Rehabilitation Finance Committee Fall 1996 Interim Budget Parking Permit Fund Finance Committee Spring 1997 CMR:210:96 Page 7 of 8 May 14, 1996 (Budget) May 6, 1996 May 14, 1996 (Budget) May 16, 1996 (Budget) May 23, 1996 (Budget) July 1996 Spring 1996 Spring 1996 Spring 1996 Summer 1996 Spring/ Summer 1996 July 1996 Fall 1996 PREPARED BY: Melissa Cavallo, Assistant Director, Administrative Services Jim Steele, Finance Manager DEPARTMENT HEAD APPROVAL:~ CITY MANAGER APPROVAL: Deputy City Manager, Administrative Services Flemin~J ~ Manager CC: n/a CMR:210:96 Page 8 of 8