HomeMy WebLinkAboutStaff Report memo (1)City of Palo Alto
MEMORANDUM
TO: FINANCE COMMITTEE MEMBERS
DATE: June 14,2010
SUBJECT; Recommendation (Wrap-up) to City Council Fiscal Year 20ll Proposed
Budget
Summary of Changes to the City Manager's Fiscal Year 2011 Proposed Budget
Attached you will Hnd a summary of changes to the City Manager's Fiscal Year 2011
Proposed Budget. The first section describes Finance Committee recommended changes
made to the budget along with follow-up items as discussed at the Finance Committee
budget hearings held on May 6, 11, 18, 25 and 27. The second section describes staff
reeommended changes to the proposed budget document.
The items in this memorandum and additional changes made this evening will be
incorporated into the budget adoption staff report seheduled to be presented to the City
Council on June 21, 2010.
DEPARTMENT HEAD:
LA
Director, Administrative Services
CITY MANAGER:
C
1
Adjustments to Date in the General Fund
This section summarizes actions made by the Finance Committee to date. Detail for each
adjustment and follow-up information is provided later in the memo. A page is
referenced where additional information is available later in the memo. The next section
after this onc begins on page five and summarizes the actions still needed.
General Fund
The General Fund FY 20 II Proposed Budget includes the following changes totaling
$1,095,000 outlined in the tables below. The first table reflects recommended and
approved changes by the Finance Committee. The second table reflects changes
recommended by staff and approved by the Finance Committee to correct or update the
Proposed Budget. The changes now provide a total of $8.4 million (originally $9.4
million) in budget solutions to cover the $7.3 million bu~~el. ~~PJ,t?~~~?Tn;,J?~~,~jl:i§.
$1,012,000 more than needed to close the budget gap. Irt!1l~~t~l:mlf~!tr~tI'!j~p.ID~JU~
~~~algi~~~1~f.OOilD non shaded lines reduce from the budget solutions.
Table 1
Adjustments to
• Limit park fee increases (En/ranee fees reduced, but
Maintain Art Center staff
concert
2
COMMUNITY
SERVICE
DEPARTMENT
COMMUNITY
SERVICE
61 DEPARTMENT
COMMUNITY
SERVICE
COMMUNITY
SERVICE
DEPARTMENT
Table 2
HUMAN
RESOURCES
The CUll'ent status of the "temporary surplus" included within the General Fund, based
upon those adjustments by the Finance Committee and proposed by staff which are
summarized in the preceding Tables I and 2, is restated in Table 3 below. As a result of
all changes that have been acted upon by the Finance Committee, the General Fund
temporary surplus currently amounts to $1,012,000.
Table 3
Date Draft Adjustments to Budget FY 2011 Balance
($000)
May 6
,~ .......... Beginning Balance $2,107
! -1,437
• Table 1 Summary Finance Committee Adjustments
Table 2 Summary Staff Adjustments
342
June 14 Current Balance $1,012
~ .. ~ ..
The FY 2012 deficit is currently estimated at $1.1 to $1.5 million in the Long Range
Financial Forecast. The Fiscal Year 2011 Proposed Budget ineludes one-time revenue
increases and expenditure reductions totaling $553,000. When added to the projected FY
2012 deficit, the preliminary estimate of the FY 2012 budget shortfall is $1.7 to $2.1
million.
The Finance Committee has made several changes to the City Manager's Proposed
Budget and has been utilizing the "parking lot" system, where items needing further
3
information are parked for discussion at a later date or for decision at the budget wrap up
meeting on June 14,2010. In order to add items to the parking lot, two members of the
Committee must be in agreement.
Discussion of each of the parking lot items is included within the following departmental
summaries of recommended changes to the City Manager's Proposed Budget except fOJ'
discussion of the Police Investigator positions. Police staff will address questions and
provide additional information related to the Police Investigator positions at the budget
wrap-up meeting on June 14. The following table (Table 3) summarizes the parking lot
items for which decisions are needed from the Finance Committee.
Table 4
Date Lot Items
Monday closure of library * Staff to
review partial closures, staffing, and calculate
In addition, staff has been asked to provide additional information on the following items,
these items are neither palt of the changes nor parking lot items for later discussion.
Please see the referenced page numbers within this memo for additional detail on the
items summarized here:
• Provide a Fire Department budget that includes a 4 percent reduction equivalent
to the salary reductions for SEIU and Professional and Management employees
(see page 13).
• Provide a list of Fire Department reductions that could be made if there were no
labor contract limitations (see page 13).
• Provide a legal opinion on whether the City Council salaries can be reduced by
10 percent or if this decision must be voluntary. The City Attorney has
researched the issue of Council Member reduction in pay and concluded that
any Council Member may reduce their pay voluntarily by informing the City
Manager of the requested reduction. A change to the ordinance making the
reduction in pay permanent should only be made effective for future office
holders. The approximate annual savings would be $6,500 if all Council
members participate in this reduction (see page 8-9 or attachment 5).
4
• Provide additional information on potentially increasing noise abatement fees
which could potentially cover the full cost of the program (see page 10).
• Provide additional information on the possibility of implementing a two-tier
parking violation system (see page 9).
• Provide additional information regarding the provision of security at City
sponsored events (see page 10).
The additional information requested by the Finance Committee for each of the matters
discussed above is included within the following departmental summaries of
recommended changes to the City Manager's Proposed Budget.
Finally, regarding position changes, the Finance Committee has added 9.75 FTE to the
General Fund. The additions include a Senior Auditor in the City Auditor's Office at a
cost 0[$156,000, which will be funded from the Utilities Enterprise Funds. 'Ibe position
is intended to focus on the Enterprise Fund and their operations. As a result of the
changes in the tables above (not including the parking lot items) the following table
reflects reinstated, additions and eliminated positions for all departments. In addition, 2
positions were proposed fol' the Enterprise Fund, but later withdrawn' by the Department.
Table 5
~ .. PositjQn Changes to City Manager's Proposed Budget
Reinstated (9.75 FTE)
Program Assistant 1 (,75)
Code Enforcement Officer
: Police Sergeant
: Police Agent
: Police Officers (2)
Tree Trimming/Line Clearers (4)
Additions (1 FTE)
Sr. Auditor (Full~~~~Y Enterprise Funds)
Elimination (1 FTE)
Is~p~. ProiectEngineer
:
EWn(2FTE)
r Service Specialist
... Customer Service Representative
Actions Needed
This section summarizes the outstanding decision points that need to be addressed by the
Finance Committee. The list represents items from the Parking Lot as wen as staff
recommended adjustments. Additional information on each item can be fOlUld at the
referenced page number.
5
Table 6
Item Council Description Amount Page·
ReviewlFollow-Number
up Needed for Details i
Pal'ldng Lot Itemsmecision Points
Finance $117,000 8 or
Committee voted Attachment
Consider 2-2 on the proposal 5
proposal to to reduce one
eliminate one Legal Secretary,
FTE Legal which sent the item
1 City Attorney Secretary to the parking lot
I
Finance Options 11-13 or
Committee voted range from Attachment
to put in the $78,384 to 3
Parking Lot $164,548
shortening of
Consider options Library hoUt's until
for shortening financial impact !
2 Library library hours could be assessed
Finance $821,000 13-14
Committee voted and
Approval of to not approve the $647,294
Department Fire Department
Budget with budget until
additional additional budget
budget reductions options
3 Fire reductions were provided
Finance $332,000 II
Consider Committee voted
Elimination of2 to put this proposal
FTE in Police in the Parking Lot
4 Police Investigations for _ ...
Finance $89,000 16
Committee voted
Consider to put the
elimination of elimination of the
one FTE Traffic Traffic Control
Public Works Control Maintainer in the
5 General Fund Maintainer Parking Lot ,
!
Committee was $298,970 20
Approval of split as to the (50%) or
sidewalk cost resident's share of $597,940
sharing si dewalk repair (100%)
Public Works percentage and costs -should be
6 Capital new CIP project 50% or 100% ,
6
Item Council Description Amount Page
Review/Follow-Number
up Needed for Details
i Staff Recommended Changes
-........... , ... ~-
Employees laid off $140,000 21
Approval of recei ve one month
additional of severance pay
Community appropriation for per SEIU labor
7 Services severance pay agreement
Employees laid off $21,000 22
Approval of receive one month
additional of severance pay
appropriation for per SEIU labor
8 Public Works severance pay , agreement -.--
$0 24
($35,400
.48 FTE, Reclass funding
Mailing Services provided
Specialist to Offset from non-
Printing/Mailing Reinstating temp Equipment salary
9 ISF and reelass Operator reductioll~)
10 Table ofOrg. FSLA Changes Title changes only $0 * 25
Correction of enol' $67,000 23
in the amount of
Approval of the draw on the
increased Water Fund
operating reserves for CIP
11 • Water Fund transfer to CIP project~
Correction of error $84,000 24
in the amount of
Approval of the draw on the
increased Technology Fund
operating reserves for CIP
12 IT Tech Fund transfer to CIP projects
.... ~~----
* The dollar impact is unknown at this time. Staff will return to Council as necessary
with recommended salary changes once determined.
Finance Committee-Recommended Changes to the City Manager's
Proposed Budget
The items listed below are a summary of Finance Committee motions made and/or action
items that result in a financial change or other recommended change to the FY 2011
proposed budget.
7
General Fund
Finance Committee actions and information requests are stunmarized below by
department. Committee actions are included for reference purposes when reviewing each
of the departmental stunmaries.
City Attorney
Motions:
On May 11, 2010, the Finance Committee recommended tentative approval of Fiscal
Year 2011 City Attorney's Office budget (3-1).
Motions:
On May 11, 2010, the Finance Committee recommended that the department reduce the
proposed budget by one legal secretary. The motion failed 2-2 resulting in placement of
this issue in the parking lot for reconsideration during budget wrap-up.
In response to the 2-2 vote of the Finance Committee, the City Attorney has prepared
additional infonnation related to this matter for the Committee's consideration. This
information is outlined in the attached report from the City Attorney dated June 9, 2010
(Attachment 5).
City Anditor
Motions:
On May 6, 2010, the Finance Committee recommended tentative approval of Fiscal Year
2011 City Auditor's Office budget (4-0).
On May 6, 2010, the Finance Committee recommended tentative approval to add a
Senior Auditor position, at $156,115 in salary and benefit, funded by the Enterprise
funds to provide continuous and on-going audits of the Enterprise Fund activities (4-0).
City Clerk
Motions:
On May 6, 2010, the Finance Committee recommended tentative approval of Fiscal Year
2011 City Clerk's budget (4-0).
City Council
Motions:
On May 6, 2010, the Finance Committee recommended tentative approval of Fiscal Year
20 II City Council's budget (4-0).
Motions:
On May 6. 2010, the Finance Committee recommended the reduction of the General
Expense category, by $17,000. to $30,000 and a voluntary reduction in salary by 10% or
$720.00 per Council member (3-1).
The City Attorney has researched the issue of Council Member reduction in pay and
concluded that any Council Member may reduce their pay voluntarily by informing the
8
City Manager of the requested reduction. A change to the ordinance making the
reduction in pay permanent should only be made effective for future office holders.
City Manager
Motions:
On May 6, 2010, the Finance Committee recommended tentative approval of Fiscal Year
2011 City Manager's budget (4-0).
Administrative Services Department
Motions:
On May 18, 2010, the Finance Committee recommended tentative approval of Fiscal
Year 2011 Administrative Services Department budget (4-0)
Human Resources
• The following is in response to the question from the Finance Committee regarding
the 38 percent budgeted expense increase in the FY 2011 Proposed Budget. The 38
percent increase to the Risk Management/Safety/Workers' Compensation division is
not related to overall citywide workers compensation claims. Rather, this increase is a
result of FTE reallocation to Workers' Comp/SafetylRisk Management division. In
addition, HR staff workers' compensation leave usage increased compared to prior
years due to a recent injury.
Motions:
On May 11, 2010, the Finance Committee recommended tentative approval of the Fiscal
Year 2011 Human Resources Department Budget, Including an at-places Item In the
amount of $68,000 for the City's labor negotiator contract (4-0).
lhe motion will result in the following budget changes:
• Increase the Human Resources Department budget $68,000 in Fiscal 'year 2011
Police Department
• The following is in response to a question from the Finance Committee regarding
two-tier parking violation system. COUllcilmember Klein, referencing an article he
had read, raised the possibility of citing parking violations as City of Palo Alto
Municipal Codes so that the City would receive all the fine revenue. Staff looked into
this suggestion and, with the exception a few violations such as no front plate and no
registration tabs on vehicle, most parking violations are citied as City of Palo Alto
Municipal Code violations. However, by State statute, the county and State collect
$9.50 of each of those fine amounts as an assessment for COUlt construction costs.
Further research by staff found, what is believed Councilmember Klein was
rcferencing, the more recent practice of issuing citations for Vehicle Code moving
violations, such as red light, stop sign, speeding, as a municipal code violations.
Several local govemments including the county of Alameda, cities of Marysville,
Roseville, Riverbank, and Newman have elected to cite several moving violations
9
listed in the California Vehicle Code as local municipal code violations, thus
retaining all fines associated with each citation.
Existing law prohibits a local authority from enacting or enforcing an ordinance that
assesses a penalty for a violation of matters covered by the vehicle code that is
different than the penalty expressly provided for in that code unless expressly
authorized. Senate Bill No. 949 was introduced on February 4, 20 I 0 and the
language in this bill further prohibits cities from enacting local ordinance on matters
covered by the Vehicle Code unless expressly authorized. It is Staffs opinion that
SB 949 will pass and local jurisdictions will be prohibited from citing California
Vehicle Code violations as municipal code violations. Staff will monitor the
legislative actions on this bill.
• The following is in response to questions from the Finance Committee regarding cost
recovery of the Leaf Blower Enforcement Program. 'The current administrative fine
for using a leafblowerin violation of the Palo Alto Municipal Code (PAMC) is $100.
In FY 2009, approximately 340 administrative citations were issued, but
approximately ioo administrative fines (about 59 percent) were actually paid. This is
a low collection rate in comparison to, for example, overtime parking citations which
have a collection rate of about 85 percent. Based on the current collection rate,
administrative fines would need to he raised to approximately $210 pCI' violation to
make the program cost recovery. However, staff is confident that if fines were more
than doubled, not only would the collection rate percentage drop, but there would also
be fewer municipal code violations as gardeners may be more motivated to avoid
hefty fines.
Staff recommendation to cut this position would not eliminate the Department's
response to leaf blower municipal code violations. Enforcement going forward will be
handled on a complaint basis by patrol officers, and as such, will he prioritized with
other calls-for-service, possibly reSUlting in longer response times then would a
centralized leaf blower enforcement officer.
• The following is in response to questions from the Finance Committee regarding
coverage for security services in CSD's FY 2011 proposed budget. The FY 2011
CSD proposed budget currently does not contain funding for private security services
at the "Moonlight Run" and the "May Fete Parade." CSD may be able to use Park
Rangers to assist with limited traffic and crowd control in order to keep Police
overtime costs to a minimum.
Motions:
On May 18, 2010, the Finance Committee recommended to restore funding for School
Crossing Guards in the amount of$345, 000 (3-1).
The motion will result in the following budget changes:
• Increase to the Police Department budget $345,000 in Fiscal Year 2011
10
On May 18, 2010, the Finance Committee recommended to restore 4 FTE out of 5
positions in the Traffic Team (3-1). Budget Impact: $646,000.
The motion will result in the following budget changes:
• Increase to the Police Department Budget $721, 104 in Fiscal Year 20 11
• Reinstate 1 FTE Police Sergeant, 1 FTE Police Agent, and 2 FTE Police Officer
• Reinstate $75,000 in traffic citation revenue in Fiscal Year 2011
On May 18,2010, a motion was putforth to restore the Investigations unit and offset this
by a $6 increase to parking violations. The motion was tied and put into the parking lot
(2-2).
Police staff will address questions and provide additional information related to the
Police Investigator positions at the budget wrap-up meeting on June 14.
On May 18, 2010, the Finance Committee asked sta.ffto return with information on how
much leaf blower citations would need to be increased to realize cost recovery (4-0).
On May 18,2010, the Finance Committee recommended tentative approval of the Fiscal
Year 2011 Police Department budget (4-0).
Library
Motions:
On May 6, 2010, the Finance Committee recommended to the City Council to not
approve Staff recommendations to keep College Terrace Library closed past the
anticipated opening in November 2010 (3-1). Budget Impact: $75,893
On May 6, 2010, the Finance Committee recommended to place the shortening of the
Library hours in the Parking Lot to allow time to evaluate the financial impact oJ
partially opening on Mondays (4-0).
On May 6, 2010, the Finance Committee moved that Staff returns with a proposal to
develop a plan to have the libraries partially open on Mondays and that Staff should
work with the Library Advisory Commission to determine a more flexible staffing
schedule (4-0).
On May 6, 2010, the Finance Committee recommended to the City Council to reduce the
fundingfor book collections by $117,343 (4-0).
The above motions will result in the following budget changes:
11
• Increase the budget for the Library Department $75,000
• Decrease the Budget Stabilization Reserve $75,000
On May 6, 20 I 0, the Finance Committee made a motion that Staff returns with a proposal
to develop a plan to have libraries open on Mondays. Staff provides three options to the
Finance Committee with alternatives to Monday closure of all library branches. Stunmary
of Staff proposals is as follows. (See Attachment 3 for details)
• These options assume that recommendation regarding hours approved by FC
on May 6 are in effect.
o College Ten'ace reopens in FY 20 II after completion of its renovation
o Main and Mitchell Park close at 8pm instead of 9pm on Tuesday and
Thursday
o All libraries close on Sundays before Monday City holidays
OPTIONl
Open Main, Mitchell Park, and Children's at 12 pm instead of 10 am on Monday;
close CoBege Terrace on Monday.
Service Impacts: Ibis option would maintain after school support at the three
principal libraries. Customers who prefer to visit the library during the morning
would be affected by the delayed opening. College Terrace would be open four,
instead of five, days per week.
Cost Impact: $106,672 (restores 1.0 FTE Library Associate and 0.39 FTE hourly
Clerk)
OPTION 2
Open Main and Mitchell Park at 12 pm instead of 10 am on Monday; close
Children's and College Terrace on Monday.
Service Impacts: This would reduce service to children who use Children's.
Customers who prefer to visit the library during the morning would be affected by
the delayed opening. College Terrace would be open four, instead of five, days
pel' week.
Cost Impact: $93,063 (restores 1.0 FTE Library Associate and 0.12 FTE hourly
Clerk)
OPTION 3
Close Main and College Terrace on Monday; close Mitchell Park and Children's
on Friday
Service Impncts: This option has the greatest impact on users of all ages and
needs. Some libraries are open every day, but the schedule could be confusing for
some customers.
12
Labor Impacts: Will require discussion with SEIU regarding change to standard
work week as this schedule would not provide two days off in a row for all staff.
Cost Impact: $20,508 (restores 0.43 FTE hourly Clerk)
Planning and Community Environment
Motions:
On May 11, 2010, the Finance Committee recommended tentative approval of Fiscal
Year 2011 Planning and Community Environment Department budget (4-0).
On May 3, 2010, the Finance Committee recommended tentative approval of the
Community Development Block Grant (CDBG) Funding allocations for Fiscal Year
2011, per CMR 235: 1 0 with a grant total of$731,566 (4-0).
Fire Department
Motions:
On May 18, 2010, the Finance Committee recommended to return the Fire Department
Budget to Stafffor consideration of the model used in compensation reductions by other
City employee groups and to make recommendations for a budget with similar reductions
to those in other City departments (3-J).
Fire Budget Narrative for June 14,2010
At the May 18, 20 I 0 Finance Committee (FC) budget hearing, the Fire Department's FY
20 II proposed budget had net revenue and expenditure increases, excluding one-time
adjustments, by $274,969 and $1,841,076, respectively. These amounts included
proposed revenue increase of $408,000 and net expenditure reductions of $257,412. As a
result of expenditure increases for firefighter salaries and benefits (contractually
obligated by the current MOA), the proposed budget for the depaltment resulted in a net
expenditure increase of $754,399.
The FC directed staff to return with additional budget reductions. Given that negotiations
have only recently began with the Firefighters' union, staff was further directed to
identifY department reductions of approximately 4 percent which is equivalent to the
reductions already implemented for Management and Professional and the Service
Employees International Union (SEIU).
In addition, the Fire Chief was asked to provide options if contractual minimum staffing
requirements did not exist. It's important to state that any reductions impacting members
of the IAFF is subj ect to negotiations. Should budgeted reductions nor materialize
through the negotiations process, an additional FY 2011 mid-year revenue increase or
further operational reductions may be needed.
13
A 4 percent reduction in IAFF compensation concessions equals approximately $821,000
and would need to occur to bc equivalent to the reductions already implemented for
Management and Professional and the Service Employees International Union (SEIU).
With regard to the direction to provide other suggestions if contractual conditions were
not a factor, the City would consider the following deployment and utilization options
achieve optimum staffing levels, among other ideas that could be identified at a later
date:
• Cross-staff specialized or dynamic deployment units (e.g., deploy by need/calls
for service vs. minimum staffing);
• Placing a unit out of service on a day-to-day basis where appropriate and based
on demand/need;
• Seleetively staff stations relative to low peak activity by actual call data ii'om the
City's CAD system; and
• Placing unit(s) out of service on a permanent basis and/or close a fire station(s)
based on demand/need where appropriate -this option would require a
redeployment plan based on serviee area/district.
Since the above options require carcful analysis, weighing the complex issues in
balancing service versus financial priorities, and considering the variables of each option,
staff rccommends deferral of specific details or recommendations until the pending
Resources, Serviees, and Utilization study is completed (targeted completion by the end
of August, 2010).
Lastly, based on FC comments, below are additional reductions, if implemented, will
result in savings for FY 2011.
ReductionslImJlacts that can be c()llJ{lleted in FY 2011:
I' A-:-~~. . l:'''"~d~itu~,,: ~~:,:,~-->=~~~~:~,:' !:, I
I ~~:;~(}fF~T~EFi~re~lnsp-eec-to-r-s --4
1 ~;;~§91~ . i$\nio~~rif£:L.. i;~~~S~,7~1O)-r~;;~'1~I-
2 Eliminate 1 Deputy Fire Chief $243,895 ($12,200) ($70,204) $161,491
_. Totals $834,886 ($132,200) ($212 914) ; $489,772
Proposals that merit consideration for FY 2012 and beyond are as follows:
• Speeial Assessment District to fund Station # 8 staffing
• Cost-sharing of Station # 8 staffing from neighboring communities 01' in exchange
for servi ces
• Shared or contract administrative functions with other fire agencies (all or partial)
• Consolidations / mergers of fire agencies (all or partial)
• Shared resources with other fire agencies or joint staffing (all 01' partial)
14
Community Services Department
Motions:
On May 11, 2010 the Finance Committee moved that CSD staff return to the Finance
Committee with options for charging Children '.'I Theatre participants with affordable fees
(4-0).
• Finance Committee requested additional data on the Children's Theatre such
as number of unique participants, productions, differential rates, and other
relevant data with comparative prior years.
On May 11, 2010 the Finance Commitlee moved to accept Staff's recommendations on
revenue enhancements with the exception of instituting a limitationfor one day foes to $5
dollars and annual passes to $40 for open space parks (4-0),
On May II, 2010 the Finance Committee recommended to the City Council thai the Art
Center keep their current staffing level at one Full Time Employee and reduce the item
CS10 from 3 Full Time Employees to 2.25 Full Time Employees (3-1), Budget
impact:$61,]14
On May Il, 20]0 the Finance Committee recommended to the City Council the
preservation of the Summer Concert Series & solicit donations at ihe event (4-0). Budget
Impact: $27,000
On May]], 20]0 the Finance Committee recommended to the City Council to eliminate
the cuts to HSRAP and maintain full funding for the program (4-0). Budget Impact:
$50,000
On May]], 2010 the Finance Committee recommended to the City Council to approve
the remainder of the budget for the Community Services Department (4-0).
• In response to the motion by the Finance Committee on May 11, 20 I 0, staff
returned to the Finance Committee on May 25, 2010 and provided the information
requested by the Finance Committee pertaining to the Children's Theatre. (See
Attachment 1 -May 25,2010 At Places Memo)
On May 25, 2010lhe Finance Committee passed a motion that the Finance Commit/ee
recommends the City Council adopt the Staff proposal 10 charge program based variable
participants fees for the Children's Theatre, with a difforent fee for residents and non
residents (4-0), Budget Impact: $35,000
Thl,)above motions will result in the following budget changes:
15
• Increase in revenue f.or the C.ommunity Service Department $35,000
• Increase the budget f.or the C.ommunity Services Department $138,114
• Net decrease in the Budget Stabilizati.on Reserve $103,114
Public Works
The f.oll.owing inf.ormati.on ab.out the Traffic C.ontr.ol Maintenance II p.ositi.on is being
pr.ovided in resp.onse t.o Finance C.ommittee questi.ons. This p.ositi.on was placed in the
parking l.ot f.or further c.onsideration.
• The Traffic C.ontrol Maintenance (TCM) crew is comprised .of six full-time
employees and .one part-time temp.orary empl.oyee. The TCM gr.oup
maintains the regulat.ory and guide signage, lane line and legend striping,
crosswalk markings, curb markings, and graffiti rem.oval. One FTE is
dedicated t.o new work requests from the Transportation Division of the
Planning and Community Envir.onment Department t.o impr.ove public safety.
• In the first five months .of 2010 the TCM crew completed 30 w.ork requests
fr.om Transportation ranging fr.om painting new red zones, fabricating and
installing new signs and p.oles, moving existing signs, taking traffic counts,
changing lane line striping, rem.oving signs and poles, and installing new
pedestrian safety b.ollards. The true w.ork l.oad impact fr.om the Transportati.on
Divisi.on includes the time spent .on new installati.ons as well as ongoing
maintenance needs which c.ontinue to grow as ncw devices are installed. If
the cun'ently frozen Traffic Control Maintenance II p.osition is eliminated,
then the traffic control section will have t.o redirect its eff.orts to the primary
resp.onsibility .of maintaining the devices that already exist and will not be able
t.o c.ontinue to supp.ort the new requests from the Transportation Division.
Motions:
On May 25, 2010, the Finance Committee recommended to restore funding of $390,104
for 4.0 FTE Tree Trimmer/Line Clearers and $10,000 for planting material for trees (4-
0).
On May 25, 2010, the Finance Committee was split in deciding between a reduction of
the sidewalk repair and replacement program in which residents would be responsible
for 100% of costs, and a reduction in which the City and residents would share the costs
50%-50%.
On May 25, 2010, the Finance Committee recommended to eliminate 1.0 FTE
Supervising Project Engineer of $161,525 (4-0). This recommended reduction was
included on the "list of alternative" reductions and not included in the proposed budget,
On May 25, 2010, the Finance Committee placed in the parking lot the elimination of 1.0
F'FE Traffic Control Maintainer II of $89,421. This recommended reduction was
included on the "list of alternative" reductions and not included in the proposed budget.
16
On May 25, 2010, the Finance Committee recommended tentative approval of the
remainder of the Fiscal Year 2011 Public Works Department budget (4-0),
Enterprise Funds
• Per the Finance Committee's direction, 1,0 FTE Senior Auditor has been added to
the proposed budget. This position will be dedicated to issues related to the
Utilities Department. Funding for this position will be shared by the Electric,
Fiber Optics, Gas, Water, and Wastewater Collection Funds.
Electric Fund
• Increase utilities administration charges by $68,011 for addition of 1.0 FTE
Senior Auditor in the City Auditor's Office
Motion:
On May 27, 2010, the Finance Committee recommended tentative approval of Fiscal
Year 2011 Electric Fund operating and capital budgets (4-0),
Fiber Optics Fund
• In response to a Finance Committee request fol' information regarding a transfer
from the Fiber Optics Fund to the General Fund, the City Attorney believes that a
reasonable, limited transfer of about five percent of annual fiber optics revenue is
permitted under current law. It may be surmised that such a transfer could
amount to approximately $150,000.
• Increase utilities administration charges by $4,379 for addition of 1.0 FTE Senior
Auditor in the City Auditor's Office
Motions:
On May 25, 2010, the Finance Committee recommended tentative approval of Fiscal
Years 2011 Fiber Optics Fund operating and capital budgets (4-0).
On May 25, 2010, the Finance Committee recommended approval of a resolution
amending variousjlber optic rate schedules to effect aiiber optics rate increase of2.6%
based on the change in annual local CPI (4-0),
Gas Fund
• Increase utilities administration charges by $34,254 for addition of 1.0 vTE
Senior Auditor in the City Auditor's Office
Motion:
On May 27, 2010, the Finance Committee recommended tentative approval of Fiscal
Years 2011 Gas Fund operating and capital budgets (4-0).
17
Wastewater Collection Fund
• Increase utilities administration charges by $18,520 for addition of 1.0 FTE
Senior Auditor in the City Auditor's Office
Motion:
On May 27, 2010, the Finance Committee recommended tentative approval of Fiscal
Years 2011 Wastewater Fund operating and capital budgets (4-0).
Water Fund
• Increase utilities administration charges by $30,951 for addition of 1.0 FTE
Senior Auditor in the City Auditor's Office
Motion:
On May 27, 2010, the Finance Committee recommended tentative approval of Fiscal
Years 2011 Water Fund operating and capital budgets (4-0).
Refuse Fund
Motion:
On May 27,20[0, the Finance Committee voted to continue the discussion of Fiscal Year
2011 Refuse Fund operating and capital budgets (4-0). Staffwill return with a proposal
for a rate increase for the Committee's consideration.
• Options for rate increases are presented for the Finance Committee's
consideration as a separate agenda item (CMR 281 :10). It is anticipated that a
final decision on rate increases will be proposed early in Fiscal Year 2011, and
the budget will be amended at that time.
Wastewater Treatment Fund
Motion:
On May 27, 2010, the Finance Committee recommended tentative approval of Fiscal
Year 2011 Wastewater Treatment Fund operating and capital budgets (4-0).
Storm Drainage Fund
Motions:
On April 6, 2010, the Finance Committee recommended approval of a resolution
amending storm and surface water drainage rate schedules to effect a storm drainage
rate increase of2.6% based on the change in annual local CPI (4-0).
On May 27, 2010, the Finance Committee recommended tentative approval of Fiscal
Year 2011 Storm Drainage Fund operating and capital budgets (4-0).
Internal Services Funds
Vehicle Replacement and Maintenance Fund
18
Motions:
On May 27, 2010, the Finance Committee recommended to not approve staff's
recommended "at places" addition of CIP VR-11002 RFlD Reader at MSC and Civic
Center of$50,000 (4-0),
On May 27,2010, the Finance Committee recommended tentative approval of the Fiscal
Yeat· 2011 Vehicle Replacement and Maintenance operating and capital budgets (4-0),
Technology Fund
Motions:
On May 18, 2010, the Finance Committee recommended tentative approval of the Fiscal
Year 2011 Technology Fund operating and capital budgets (4-0).
Printing and Mailing Fund
Motions:
On May 18,2010, the Finance Committee recommended tentative approval of the Fiscal
Year 2011 Printing and Mailing Fund budget (4-0).
General Benefits and Insurance Fund
Motions:
On May 27, 2010, the Finance Committee recommended tentative approval of the Fiscal
Year 2011 General Benefits and Insurance Fund budget (4-0).
Retiree Healtb Benefits Fund
Motions:
On May 27, 2010, the Finance Committee recommended tentative approval of the Fiscal
Year 2011 Retiree Health Benefits Fund (4-0),
Infrastructure/Capital Fund CIP
Motions:
On May 25, 2010, the Finance Committee recommended that the City Council approve
the proposed General Fund Capital Improvement Program Budget (4-0).
• On May 25, 2010 Staff presented to the Finance Committee additional crp
Project CC-llOOO Cubberley Gym Activity Room for $65,000. The Finance
Committee approved the addition.
• Finance Committee requested a six-month cheek-in on projects with lower
construction bids and list of likely projects by which potential savings can be used
to fund these projects
• Finance Committee recommended another graphic presentation of funding
sources for the projects, Staff responded that additional chart can be included in
tbe adopted budget document.
19
The above motion will result in the following budget changes:
• Drawdown from the Infrastructure Stabilization Reserve of $65,000
On May 25. 2010, the Finance Committee was split in deciding between a reduction of
the sidewalk repair and replacement program in which residents would be responsible
for 100% of costs, and a reduction in which the City and residents would share the costs
50%-50%.
• Three options were presented for the Finanee Committee's consideration:
o The first option would maintain .the "status quo" sidewalk program as
performed in prior fiscal years. The City performs 100% of the work with
no eost shift to residents. The budgetary impact of this option would be
$597,740 and would include adding back in to the budget a $500,000 CIP
project and one Engineering Tech III position at a cost of $97,740.
o The second option would transfer 100% of the responsibility for sidewalk
repair and replacement to the homeowner. Under this option, the City
would perform 100% of the work and bill the homeowner for the full cost
of sidewalk repair and replacement, The budgetary impact of this option
would be $0 and would include adding back into the budget a $500,000
CIPproject, one Engineering Tech III position at a cost of $97,740 and
creation of a revenue estimate in the amount of $597,740 for sidewalk
replacement/repair reimbursement revenue,
o The third option would transfer 50% of the responsibility for sidewalk
repair and replacement to the homeowner. Under this option the City
would perform 100% of the work and bill the homeowner for 50% of the
full cost of sidewalk repair and replacement. The budgetary impact of this
option would be $298,970 and would include adding back into the budget
a $500,000 ClP project, one Engineering Teeh III position at a cost of
$97,740 and creation of a revenue estimate for the sidewalk
replacement/repair reimbursement revenue in the amount of 50% of the
fuB project cost or $298,970.
Under all three options, the City would retain 100% of the legal liability for sidewalk
maintenanee and repair.
Municipal Fee Schedule
The Finance Committee will consider the Municipal Fee SchedUle on June 14, 2010.
Contracts Greater Than $85,000
The Finance Committee will consider the Contract Scopes of Consultant Services
Agreements Greater than $85,000 on June 14. 2010.
20
StatT~Recommended Changes to the City Manager's Proposed Budget
The items listed below are a summary of "at places" items that result in a financial
change and other proposed changes included within the budget wrap-up memo.
General Fund
Per the City's personnel rules and SEIU's labor agreement, laid off SElU and
management employees receive one month of severance pay at the time of separation
from service with the City. After all retirement applications were processed and bumping
rights exercised, a total of 19 employees will ultimately be laid off. This total is net of
the position changes summarized and discussed below. The total amount of the payoffs to
be paid to the 19 laid-off employees is estimated at $365,000. Of this amount, an
estimated $204,000 will be paid off to employees separating from service with the City
on June 30. An additional $161,000 appropriation is required for the FY 2011 Proposed
Budget to account for the estimated payoffs to laid-off employees in the Community
Services department and the Public Works department that are separating from service
with the City during the first quarter of FY 201 I.
Infrastructure/CIP
• General Fund infi'astructure backlog in pages 292 is amended to include Public
Safety Building for $60,000,000 (Attachment 2). The change has no cost impact
in the FY 2011 budget. With this change, the total infrastructure backlog is
$510,000,000. The infrastructure backlog schedule is statistical data maintained
by staff to monitor the City's progress in updating the infrastructure backlog.
Community Services Department
• Staff is implementing changcs in the salary and benefits reduction calculation.
The FY 20 II Proposed Budget assumes three month salary and benefits usage for
administrative position elimination transition. The attached calculation assumes
the department will realize the full-year savings for the identified eliminated
positions. The impact of the change is savings to the General Fund of $274,000.
• Staff is recommending an additional appropriation of $140,000 be added to
salaries for payment of severance pay to laid off employees. Per the City's
personnel rules and SEIU's labor agreement, laid off employees receive one
month of severance pay at the time of separation from service with the City.
Public Works
• Staff is recommending an additional appropriation of $21 ,000 be added to salaries
for payment of severance pay to laid off employees. PCI' the City's personnel rules
and SEIU's labor agreement, laid off employees receive one month of severance
pay at the time of separation from service with the City.
21
Human Resources
• An existing contract in the amount of $68,000 with the City's labor negotiation
consultant was not included in the proposed budget. This item was presented to
the Finance Committee on May 11, 20 I 0 at places.
Debt Service
Libraly Bonds
• In June 2010, the City sold $55,300,000 of 2010 General Obligation Library
Bonds to construct a new, energy efficient, environmentally friendly Mitehell
Park Library and Community Center, to renovate and expand the Main Library,
and renovate the Downtown Library. Annual debt service for FY 2011 is
$1,472,000 and will be paid by an ad valorem property tax levy assessed against
property owners. The property tax assessment will result in $3,491,539 in
property tax revenue to fund debt service payments.
Enterprise Funds
• Changes to the proposed budget include the removal of 1.0 FTE Customer
Service Representative of $94,348, and 1.0 FTE Customer Service Specialist of
$103,768. The cost of these positions had been distributed among the Electric,
Gas, Water, and Wastewater Collection Funds. In lieu of these two permanent
positions, $ 134,657 has been shifted to temporary salaries.
Electric Fund
• The change to the Calaveras Reserve has been updated to reflect a draw of
$4, 108,000 in accordance with the annual stranded cost calculation. The
projected FY 2011 ending balance of the Calaveras Reserve is $55,757,000.
Correspondingly, the change to the Electric Supply Rate Stabilization Reserve
(RSR) has been updated to reflect a draw of $2,881,000. The ending Electric
Supply RSR is projected to be $33,387,000, which is within the revised guideline
range of $32,0 16,000 to $64,031,000.
• Decrease salaries and benefits expense by $23,587 for removal of request to add
0.25 FTE Customer Service Representative
• Decrease salaries and benefits expense by $25,942 for removal of request to add
0.25 FTE Customer Service Specialist
• Increase temporary salaries and related medical stipend by $10,658 for customer
service and support
Gas Fund
• Decrease salaries and benefits expense by $23,587 for removal of request to add
0.25 FTE Customer Service Representative
• Decrease salaries and benefits expense by $25,942 for removal of request to add
0.25 FTE Customer Service Specialist
22
• Increase temporary salaries and related medical stipend by $46,787 for -customer
service and support
• 'The projected FY 20 II beginning balance of the Gas Supply RSR has been
updated to $7,90 I ,000
Fiber Olltics Fund
• Decrease temporary salaries and related medical stipend by $4,575 and
redistribute to other Utilities Funds for customer service and support
Water Fund
• The draw on the Water Fund reserves for CIP projects included in the Proposed
Operating Budget did not match the total proposed CIP program expenditures for
the Water Fund in en·or. The draw on the Water Fund reserves should be
increased $67,000 to correet the amount of the draw ineluded in the proposed
operating budget document (See page 154 in the Proposed Operating Budget and
page 33 in the Proposed Capital Budget). The change in the Water Fund draw on
reserves will change the draw from $8,781,000 to $8,848,000 and will result in an
additional draw on the Water Fund Reserve of $67,000.
• Decrease salaries and benefits expense by $23,587 for removal of request to add
0.25 FTE Customer Serviee Representative
• Decrease salaries and benefits expense by $25,942 for removal of request to add
0.25 FTE Customer Service Specialist
• Increase temporary salaries and related medical stipend by $26,435 for customer
service and support
• The projected FY 20 II beginning balance of the Water Rate Stabilization Reserve
has been updated to $14, I 91 ,000
Wastewater Collection Fund
• Decrease salaries and benefits expense by $23,587 for removal of request to add
0.25 FTE Customer Service Representative
• Decrease salaries and benefits expense by $25,942 for removal of request to add
0.25 FTE Customer Service Specialist
• Increase temporary salaries and related medical stipend by $50,836 for customer
service and support
Refuse Fund
• Options for rate increases are presented for the Finance Committee's
consideration as a separate agenda item (CMR 281 :10). 11 is anticipated that a
final decision on rate increases will be proposed early in Fiscal Year 2011, and
the budget will be amended at that time.
Internal Services Funds
Vehicle Replacement and Maintenance Fund
23
• CIP VR-11000 Scheduled Vehicle and Equipment Replacements of $3,193,500
has been removed. An evaluation of the vehicle fleet will be made during FY
2011, and this CIP will be adjusted and reinstated aceordingly.
Technology Fund
• TE-1I005 -Change in the name of the project from "Implementation of New
Utility Rates" to "Implementation of Restructure Tiered Rates on Bills". Changes
are also made on the project description and supplementary information on the
. CIP page of the project. See Attachment 1 for details of the changes. These
changes have no financial impact on the Proposed FY 20 II budget. This
technology project is managed by the Utilities Department.
• The draw on the Technology Fund reserves for CIP projects included in the
Proposed Operating Budget did not match the total proposed CIP program
expenditures for the Technology Fund in error. The draw on the Technology Fund
reserves should be increased $84,000 to correct the amount of the draw included
in the proposed operating budget docwnent (See page 254 in the Proposed
Operating Budget and page 21 in the Proposed Capital Budget). The change in the
Technology Fund draw on reserves will change the draw from $3,433,000 to
$3,517,000 and will result in an additional draw on the Technology Fund Reserve
of $84,000.
Printing and Mailing Fund
• Reinstate the temporary hourly Print Shop Assistant position and reclass the
Mailing Serviees Specialist position to Offset Equipment Operator. These
changes will allow for proper coverage to meet the required operational demands
of departments' and Council's operations. There will be no financial impact on
the FY 2011 proposed budget. The funding for these changes is provided from
non-salary reductions 0[$35,400 in the FY 2011 proposed budget.
Staffing
Table of Organization
24
• The following title changes will be ineorporated into the City's Table of
Organization and have no budgetary impact:
New Job Title
. Communications Manager
Community Service Manager
Deputy Fire Chief
Hearing Officer
Legal Services Administrator
Library Services Manager
Senior Human Resources Administrator
Management Analyst
Performance Auditor
Senior Electrical Engineer
Senior Management Analyst
Senior Performance Auditor
Accountant
Community Services Senior Program Mgr
Community Services Superintendent
Utilities Supervisor
Deputy Director Technical Services Div
Senior Resources Planner
Old Job Title
Public Communications Manager
Supervisor Parks
Deputy Fire Chief-EMT
Parking Examiner
Legal Administrator
Supervising Librarian
Administrator, Human Resources
Administrator, Public Works
Auditor
Senior Electric Project Engineer
Senior Administrator
Senior Auditor
Staff Accountant
Supervisor Junior Museum
Supervisor Golf Course
Supervisor Electric Systems
Coordinator Police Technical Services
Senior Resource Originator
• Open Space and Parks Division Manager job classification will receive a 3.5
percent salary increase to correct the cost of living adjustment (COLA) increase
that was given in FY 2008. The budgetary impaet of this increase is $6,700 and
will be adjusted in the FY 2011 midyear budget.
• The Table of Organization will be corrected to reflect the elimination of 1.0 FTE
Administrative Associate I instead of the elimination of 1.0 PTE Administrative
Associate III which was originally included in the proposed budget. This change
resides within the Capital Fund under the purview of the Public Works
depaItment.
Related Memos
Memos distributed "at-places":
May 6
May II
Updated Proposed Budget Balancing Recommendations for Fiscal Year 2011
General Fund, pages xvii and xviii of the FY 2011 Proposed Budget document
Revised Department Summary, Inputs, and Resource Level Changes, pages 97
to 100 for the Human Resourees Department
Community Services Department Fiscal Year 2011 Proposed Budget
Balancing Strategy
25
May 18
May 25
Remove the 2 FTE Supervisor Recreation Programs to Senior Supervisor
Recreation Programs reclassification.
Community Services Department Change in Salary and Benefits Reduction
Calculation
Parks and Recreation Commission Special Meeting Preview Budget Proposal
/ Reductions FY 2011, April 22, 2010 meeting at Cubberley.
Human Resources Department Fiscal Year 2011 Proposed Budget Balancing
Strategy
Planning and Community Environment Department Fiscal Year 2011
Proposed Budget Balancing Strategy
City Attorney's Office Fiscal Year 2011 Proposed Budget Balancing Strategy
Revised Department Summary, Inputs, and Resource Level Changes, pages 33
to 36, and Organizational Charge, page 30 for the City Attorney's Office
Change in Technology Fund Allocated Charges schedule
General Fund Salary and Benefits summary by department
Police Department Fiscal Year 2011 Proposed Budget Balancing Strategy
Fire Department Fiscal Y car 2011 Proposed Budget Balancing Strategy
Administrative Services Department Fiscal Year 2011 Proposed Budget
Balancing Strategy
Information Technology Internal Service Fund Fiscal Year 2011 Proposed
Budget Balancing Strategy
Change in Technology Fund Allocated Charges for all General Fund
Departments
Printing and Mailing Internal Service Fund Fiscal Year 20 II Proposed Budget
Balancing Strategy
Summary of staff responses to thc questions posed by the Finance Committee
during the public budget hearing of the Community Services Department on
May 11,2010 regarding the Children's Theatre
Amended data on the cost recovery rates of various arts and recreation
programs of the Community Services Department
Golf Course Financial Summary for FY 2011 with comparative figures for FY
2009 and FY 2010
Public Works General Fund Fiscal Year 2011 proposed Budget Balancing
Strategy
Review of Other Cities' Sidewalk Replacement Programs
A Letter from the Planning and Transportation Commission regarding the
Capital Improvement Plan (CIP) FY 2011-2015
Minutes of meeting of the Planning and Transportation Commission (PTC) on
November 4, 2009, February 24, 2010 and May 12,2010 (draft)
CIP Page of Project CC-II000 -Cubberley Gym Activity Room
Utilities Department Fiscal Year 2011 Proposed Budget Department
Highlights
26
May 27
June 14
Annual Calaveras Reserve Stranded Cost Calculation memorandum from the
Utilities Department to the Utilities Advisory Commission
Finance Committee Recommendation to Approve Proposed Changes to the
Electric Fund's Calaveras Reserve Guidelines (CMR 275:09)
Revised Enterprise Fnnd Reserves, pages 155 to 156 of the FY 20 II Proposed
Budget document
CIP Page of Project VR-II 002 -Installation of RFID Reader at MSC and
Civic Center
Utilities Department Fiscal Year 2011 Proposed Budget Department
Highlights
Wrap-up Memo and Attachments (see bclow for list of attachments)
City Manager's Reports
April 6 • CMR: 182: I 0, Storm Drainage Fund rate increase
May 3 -CMR: 235: 10, Proposed Fiscal Year 2011 CDBG Funding Allocations
May 25 -CMR: 237: 10, Fiber Optic Fund rate increase
June 14 -CMR: 262:10, Proposed Amendments to the Fiscal Year 2011
Municipal Fee Schedule
Attachments:
• CMR: 258: 1 0, Contract Scopes of Consultant Services Agreements
.Cheater than $85,000
Attachment I:
Attachment 2:
Attachment 3:
Attachment 4:
Attachment 5:
Implementation of Restructured Tiered Rates on
Bills (TE-II 05)
Infi-astructure Future Needs -Backlog Schedule
Library Altematives to Monday Closure of All
Library Branches
Correspondence (including emails) from citizens
and/or other interested parties regarding various
Fiscal Year 2011 Budget reduction proposals, and
notes from Community Outreach meetings
Memorandum from City Attomey's Office, dated
June 9, 2010
27