HomeMy WebLinkAboutStaff Report 1707City of Palo Alto (ID # 1707)
Finance Committee Informational Report
Report Type:Meeting Date: 5/24/2011
May 24, 2011 Page 1 of 1
(ID # 1707)
Title: Storm Drain Oversight Committee Budget Review
Subject: Storm Drain Oversight Committee Review of Proposed FY2012 Storm
Drainage Fund Budget
From:City Manager
Lead Department: Public Works
Executive Summary
The Council-appointed Storm Drain Oversight Committee meets annually to review the
proposed Storm Drainage Fund budget and ensure its consistency with the ballot
measure approved by property owners in April 2005. Attachment A is the memo
submitted by the Storm Drain Oversight Committee presenting the findings from their
review of the proposed FY2012 Storm Drainage Fund budget. The memo is submitted
to the Finance Committee for their consideration during the budget deliberations
regarding the proposed Public Works Department budget on May 24, 2011.
Courtesy copies:Storm Drain Oversight Committee
Attachments:
·A -Storm Drain Oversight Committee Memo to Finance Committee (PDF)
Prepared By:Joe Teresi, Senior Engineer
Department Head:J. Michael Sartor, Interim Director
City Manager Approval: James Keene, City Manager
Storm Drain Oversight Committee
MEMORANDUM
Date: April 27, 2011
To: Honorable Finance Committee of the Palo Alto City Council
From: Members of the Storm Drain Oversight Committee
Subject: Review of the Proposed FY 2011-12 Storm Drainage Fund budget
As directed by the City Council, we have reviewed the proposed Storm Drainage Fund budget for
fiscal year 2011-12 and compared it with the provisions of the Storm Drainage Fee increase approved
by Palo Alto property owners in 2005. Based on this review, we find that the proposed budget reflects
the increased fees, CIP projects, and operating expenditures approved in the ballot measure.
The Committee met to discuss the proposed budget on Wednesday, April 27, 2011. Prior to the
meeting, Storm Drainage staff provided a packet of informational materials about the approved ballot
measure and the proposed budget for the Committee’s review. During the meeting, staff presented
information regarding the Storm Drainage Fund operating and capital budgets and answered questions
from the Committee members.
Based upon our review of the materials provided to us by Storm Drainage staff, we find that the
attached matrix describing the proposed use of the Storm Drainage Fee increase for FY 2011-12 and
the table providing a side-by-side comparison of the ballot measure and the proposed budget
accurately describe the relationship between the budget and the ballot measure. In addition, the
attached spreadsheet summarizes the status of the Storm Drainage Fund capital improvement program
implementation to-date.
Attachments
Proposed Use of Storm Drainage Fee Increase for FY 2011-12
Line Item Revenue Expenditures
Fee Increase Revenue
SD Fee Increase $3,507,402
Capital Improvements
and Program Enhancements
A. One-time SD CIP Projects
San Francisquito Creek Pump Station $0
Channing/Lincoln Storm Drain $1,590,000
Southgate Neighborhood Storm Drains $140,000
Gailen/Bibbits SD Improvements $0
Clara Drive SD Improvements $0
Matadero Creek Pump Station & Trunks $0
Alma Street SD Improvements $0
B. Enhanced Maintenance
SD Replacement/Rehabilitation CIP $572,000
Augmented SD Maintenance $90,000
C. Innovative SD Projects $3,000
D. Augmented Storm Water Quality $113,000
E. New CIP Engineer $147,000
SUBTOTALS $3,507,402 $2,655,000
To Storm Drainage Fund Reserves $110,833
Other storm drain expenses previously
covered by General Fund subsidy $741,569
TOTALS $3,507,402 $3,507,402
Prepared for the Storm Drain Oversight Committee
by Joe Teresi 4/27/2011
Approved Storm Drainage Fee Increase Ballot Measure vs.
Preliminary 2011-12 Storm Drainage Fund Budget
BALLOT MEASURE
1. Implementation of seven (7) high-
priority storm drain capital improvement
projects.
2. $ 500,000 annually (adjusted annually
for inflation) for storm drain system
repair and rehabilitation.
3. $ 90,000 annually for augmented storm
drain system maintenance.
4. $ 125,000 annually (adjusted annually
for inflation) for innovative projects to
reduce storm water runoff and pollutant
levels.
5. $ 100,000 annually (adjusted annually
for salary increases) to fund storm water
quality protection activities formerly
funded by the Wastewater Treatment
Fund.
6. $ 115,000 annually (adjusted annually
for salary increases) for an engineer to
assist with implementation of storm
drain capital improvement projects.
7. Annual adjustment of fees by local CPI
increase or 6%, whichever is lower.
8. Pre-payment of Storm Drainage Fees for
City-owned properties to accelerate
implementation of storm drain capital
improvement projects.
PROPOSED BUDGET
1. $ 1,590,000 for Channing Ave/Lincoln
Ave Storm Drain Improvements (CIP
SD-11101); $140,000 for Southgate
Neighborhood Storm Drain
Improvements (CIP SD-10101).
2. $ 572,000 for Storm Drain System
Replacement and Rehabilitation
(CIP SD-06101).
3. Additional funding for Storm Drain
In-House Maintenance ($ 75,000 for
Contract Services, $ 6,000 for Pumps,
$ 9,000 for Supplies & Materials).
4. $ 3,000 for Storm Water Rebate
Program (remaining $140,000
reallocated to Southgate CIP).
5. Additional funding for Storm Water
Quality Protection (0.6 additional FTE
staffing, $ 39,000 for non-salary
expenses).
6. New Engineer position (1.0 FTE) funded
in Storm Drain System Improvements.
7. Proposed 1.5% increase per the change
in the CPI for San Francisco-Oakland-
San Jose for calendar year 2010.
8. No pre-payment for FY 2011-12; all
scheduled pre-payments by General
Fund have been made.
Proposed Storm Drain Capital Spending Plan
SF Creek
Pump
Station
Gailen /
Bibbits Alma Street
Channing
Lincoln
Trunk
Matadero
PS and
Trunks Clara Drive
Southgate
Area
YEARLY
PROJECT
Year FY $4,500,000 $650,000 $500,000 $3,000,000 $3,000,000 $900,000 $2,000,000 TOTAL
1 FY 2005-06 $900,000 $650,000 $180,000 $1,730,000
2 FY 2006-07 $735,000 $735,000
3 FY 2007-08 $7,535,000 ($915,000)$6,620,000
4 FY 2008-09 $700,000 $785,000 $1,485,000
5 FY 2009-10 $820,000 $820,000
6 FY 2010-11 $895,000 $895,000
7 FY 2011-12 $1,590,000 $140,000 $1,730,000
8 FY 2012-13 $1,680,000 $860,000 $2,540,000
9 FY 2013-14 $1,430,000 $315,000 $1,745,000
10 FY 2014-15 $1,840,000 $1,840,000
11 FY 2015-16 $1,915,000 $1,915,000
12 FY 2016-17 $1,990,000 $1,990,000
$9,135,000 $650,000 $785,000 $6,415,000 $6,060,000 $0 $1,000,000 $24,045,000
NOTES: 1. Cost figures immediately below project titles reflect Year 2005 cost estimates. Spreadsheet figures represent
actual incurred costs & projected costs based upon a one-time 30% cost increase plus annual 10% cost increases.
1. Under this scenario, Clara Drive Improvements project is not funded,
and only two-thirds of the original scope of the Matadero work is funded.
2. Construction costs for future projects may be lower than projected under the 10% annual increase scenario.
3. Southgate Area Project funded using Innovative Storm Drain Project funds to construct
a neighborhood drainage project including permeable pavement, rainwater cistern, and
other innovative stormwater management techniques.
4. Shaded projects have been completed to-date.
4/27/11
JT