HomeMy WebLinkAbout2003-03-18 City CouncilTO:HONORABLE CITY COUNCIL
ATTN:FINANCE COMMITTEE
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:MARCH 18, 2003 CMR:195:03
SUBJECT:CITY MANAGER BUDGET STRATEGY FOR 2003-05
RECOMMENDATION
Staff recommends the Finance Committee review and comment on the City Manager’s 2003-
05 budget strategy, including a 5 percent permanent cut in the City’s General Fund (GF)
operating budget.
BACKGROUND
Under City Charter, it is the City Manager’s legal responsibility to develop and deliver the
City’ s proposed budget document to Council. Recognizing the extended duration and severity
of the current economic downturn to the City’s revenues, Council passed a motion on March
11, 2002, requesting staff reduce ongoing GF operating expenditures by 5 percent or $5.7
million, as measured from 2002-03 operational base expense. This amount represents the
ongoing "structural" deficit between base revenues and base expenditures. The fiscal 2001-
02 "Strengthening the Bottom Line" (SBL) and subsequent 2002-03 budget-cutting efforts
have addressed approximately half of the City’ s original $12.0 million structural deficit, with
the other half remedied with one-time funding solutions. It this "other half’’ that is the current
focus of the 2003-05 budget process. For reference, 2002-03 GF operational base expense
totals $106.4 million. The Operating base does not include debt service or the $6.0 million
Cubberley lease/covenant payments to the Palo Alto Unified School District (PAUSD). A
reminder that the operating transfers-out category is not considered an expenditure within the
GF.
The City Manager’s approach to this goal includes spreading the expenditure reduction over
the two-year budget, with a 3 percent cut in 2003-04 and an additional 2 percent in 2004-05.
The Long-Range Financial Plan (LRFP) presented to Council in December 2002 showed the
implications of this expense reduction model on base 2002-03 GF expenses. Near-term
revenue projections indicate a slightly weaker picture than those presented in the LRFP and,
CMR:195:03 Page 1 of 4
barring additional negative economic shock, staff now estimates the 2003-04 structural
imbalance to be approximately $6.7 million.
Prior to the formal budget hearings with the Council’ s Finance Committee, the City Manager
agreed to summarize preliminary recommendations for the 2003-05 Proposed Budget. This
report summarizes the major proposed adjustments to the City’s staffing levels along with
service level reductions in 2003-05. While a necessary part of the current budget process, this
one-time report does not represent a change in the methods for preparing and presenting the
proposed City Manager’s budget in future years.
DISCUSSION
The City faces a projected $9.7 million deficit in 2003-04 operations; $6.7 million resulting
from an ongoing structural imbalance between revenues and expenditures, and $3.0 million
resulting from a possible State of California "raid" of City vehicle in-lieu and grant revenues.
Staff proposes to correct this imbalance with a comprehensive approach of expense
reduction, revenue generation and a more proper assignment of some GF costs to other funds.
In weighing operational reductions, staff will attempt to protect services and other programs
deemed "essential." (As one indicator of "essential" and "less essential" services, please see
attached memo summarizing results from a recent on-line survey conducted by the City
Manager’s Office.) Reductions in community programs will be balanced by commensurate
administration reductions required to support those programs.
The table below describes the department results of the City Manager’s challenge of a 5
percent base expenditure reduction over the 2003-05 period.
ATT
AUD
CLK
COU
MGR
ASD
HRD
Total Admin
CSD
FIR
PLA
POL
PWD**
Total
* one-tame items have been removed
** includes S2.3 million reduction in
2003 -05
2002-03
Base *
2,167
759
687
247
1,691
11.223
~ 334
19,108
24,544
19,251
8,298
22,027
[ 14,518
[ 107,746
Proposed Department Reductions
20~3-04
Ongoing Cuts
i223~
(20~
~!6i
(4~
1717~
(t81i
~i,2681
( ! .242 I
~768}
(382i
{566~
(2.8131
{7,039/
2003-04 2004-05
Cut %Ongoing Cuts
-10.3%
-2.6%(20~
-2.3%
-1.6%
-6.3%
-6.4%
-7.8%
-6.6%
-5.1%
-4.0%
-4.6%
-2.6%
-19.4%
-6.5 %
from 2002-03 adopted budget.
2004-05
Cut %
0.0%
-2.7%
0.0%
0.0%
0.0%
(54~-0.5%
~51))-2.3%
1124)-0.7%
(40~-0.2%
3 0.0%
!421 -0.5%
(567)-2.6%
38 [0.3%
~732)!-0.7%
2003-05
Cut %
-10.3%
-5.3%
-2.3%
- 1.6%
-6.3%
-6.9%
-9.9%
-7.3%
-5.2%
-4.0%
-5.1%
-5.1%
-19.1%
-7.2 %
traffic signal/street light operating & maintenance expense; utility line cleating expense.
CMR: 195:03 Page 2 of 4
The main focus of the 2003-05 budget process is to address the structural deficit and involves
the identification of ongoing (base) budget reductions in City department funding.
Department heads were given the goal of presenting a 5 percent expense reduction over the
2003-05 period. With more than 60 percent of the GF expenditure budget represented by the
salary and benefit category, it is important to note an expense reduction of this magnitude
must include a reduction of both staffing and service delivery levels at the City. Where
possible, departments have restructured their operations around current or pending vacancies
and retirements. To assist with this effort, the City Manager recently extended the limited
hiring freeze across all vacant GF positions except those tied to public safety. The result is
nearly 35 vacant positions, around which departments will focus their salary expense
reduction strategies. Without ruling, out layoffs, it is the desire of the City Manager to
eliminate vacant GF positions from the City’s Table of Organization as a first step towards
attaining the Council mandated 5 percent expenditure reduction.
Department’s prepared "Action Plan" summaries to describe the implications of proposed
budget reductions on their operations. A summary of these submissions is attached to this
report (Attachment 1). Operational and budgetary adjustments were categorized as follows:
o Restructuring around vacancies and retirements
o Other positions to be eliminated, frozen or downgraded
*Non-salary operational reductions
*Outsourcing opportunities/productivity improvements
*Entrepreneurial or other joint service partnerships
*User fee adjustment to more fully cover costs or market rates
o Other budget solutions
With regards to the possible $3.0 million State takeaway of City revenues, staff believes the
State Legislature will ultimately restore any reduction in this funding source. Solving this
projected shortfall will include the following in each year of the 2003-05 period: $1.0 million
revenue from the Refuse Fund representing accrued interest on an accumulated rent liability;
$1.0 million in one-time salary/benefit savings as City staff participate in a mandatory unpaid
furlough or related measures (dependant on agreement with City unions); and $1.0 million in
additional one-time expense reductions or revenue increases.
On-Line Survey
In an effort to inform the City Manager’s budget recommendations, the City Manager
commissioned an on-line survey of a cross-section of 500 Palo Altans. The survey elicited
perspectives on which City services are "essential" and which are "less essential." The
summary of survey results is attached (Attachment 2). Another survey involving any and all
Palo Altans is still in progress. The results of the "all-comers" survey will be available when
the Finance Committee conducts its budget hearings. As one piece of data, the results of the
two surveys are important to consider with other information (e.g. the Council’s "Top 5"
Priorities, recommendations from operating departments, feedback from advisory groups and
civic organizations).
CMR: 195:03 Page 3 of 4
RESOURCE IMPACT
The results of reviewing these proposed budgetary and service level adjustments will be
incorporated into the City Manager’s 2003-05 Proposed Budget document, to be delivered to
Council in late April. The goal of the budget process will be to deliver a balanced budget to
Council and permanently reduce the General Fund operating budget by 5 percent or by
approximately $5.7 million, as measured from fiscal 2002-03 base expense. Based on current
department submissions, the projected $9.7 million 2003-04 deficit will be remedied as
follows:
$5.7 million ongoing expense reductions across all departments; $5.0 million in 2003-
04 and $0.7 million in 2004-05.
$2.4 million in formerly GF costs more properly assigned to the Utility Department
(electric line-clearing expense, street light and traffic signal maintenance).
$3.0 million proposed temporary State take-away seen as requiring one-time
solutions. These include $1.0 million revenue from the Refuse Fund, $1.0 million
salary savings from a citywide mandatory unpaid furlough, and $1.0 million from
additional one-time expense reductions or revenue increases.
POLICY IMPLICATIONS
These recommendations are consistent with existing City policies.
ENVIRONMENTAL ASSESSMENT
This is not a project for purposes of the California Environmental Quality Act (CEQA).
ATTACHIVIENTS
Attachment 1: Department Action Plan Summary 2003-05
Attachment 2: Memo Regarding City of Palo Alto On-Line Survey
PREPARED BY:
CHARLES PERL
Budget Manager
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
CARL YEAT~/r ~ --
Director, Adrr]finistrative Services
FRANK BENEST
City Manager
CMR: 195:03 Page 4 of 4
Attachment I
Restructuring around vacancies and
retirements
Eliminate Senior Assistant 0.75 City Attorney
City Attorney position
Eliminate Paralegal position 1.00 City Attorney
(135,909)
(87,041)
Positions were fully funded by Utility Department to work
on energy-related issues. These will be managed via
external contracts.
See above.
Elimination of Office
Specialist position
1.00 City Manager
Eliminate Sr. Financial 1.00 Admin Svcs
Analyst position
(67,014)
(112,133)
Some delay in answering phones; customer service level at
front desk will be affected due to loss of back-up person.
Impact on staff’s ability to process real estate transactions
at our current level. Easement processing will increase
from 3 to 4 weeks. In addition, this position played a key
role in cross-departmental projects and team. That
participation will now need to be further limited.
Drop Office Specialist; Add
0.5 FTE Buyer
Eliminate Golf Maintenance
Worker position
0.50 Admin Svcs
1.00 Comm Svcs
Eliminate Parks 1.50 Comm Svcs
Maintenance Worker
position
Eliminate Library 1.00 Comm Svcs
Associate position
Eliminate Recreation
Coordinator position
1.00 Comm Svcs
Eliminate Progam 1.00 Comm Svcs
Assistant position
Eliminate Chief Officer-
Emergency Operations
EMT position
1.00 Fire
(22,772)
(71,512)
(150,756)
(70,493)
(106,291)
(73,916)
(168,258)
Restructure Purchasing Division around vacancy; net
elimination of 0.5 FTE.
Eliminates infrastructure work as specified in the Golf
Course Master Plan including fairway drainage progam
and construction of new cart paths.
Over two years, maintenance of City and PAUSD athletic
fields will be lowered and reduced to the same levels.
(Vacant in May 2003) Work will be redistributed through
reclassifications and outsourcing.
Elimination of special events coordinator ($79,658) and
materials and contracts for events ($26,633). (Position
currently vacant) Eliminates events including Black and
White Ball, Halloween Haunt, Winter Festival, Parent/Jr.
Golf Tournament, and Hippity Hop Easter Hunt. The Chili
Cook-off, May Fete Parade and some fun runs and golf
tournaments will continue.
This position supplies support to the Costume Supervisor.
The elimination of the position will increase employee
overtime and require other staff to maintain supervision of
children working on costume and other theatre related
projects.
Emergency preparedness progam is being reorganized. A
working committee will consist of representatives from
each department to oversee planning and training for each
department. The fire department will continue to provide
community emergency response training via the PANDA
Progam (Palo Alto Neighborhood Disaster Activities). The
department will coordinate with other departments to
assign more responsibility at each department level to
minimize the impacts on these activities as well.
Attachment 1
Eliminate Office Specialist
position
Eliminate two Fire
Inspectors positions
Eliminate HR Assistant
position and underfill
Benefits Administrator
Eliminate Senior Planner
position
Eliminate Planning
Technician position
Reclass Inspector Specialist
as Inspector (2004-05)
2.00
0.90
1.00
1.00
Fire
Fire
Human Res
Planning
Planning
Planning
(67,014)
(281,332)
(62,960)
( 117,366)
(79,743)
(6,061)
See above
New construction and tenant improvement plan reviews,
related inspections and annual hazardous materials code
compliance inspections are being re-prioritized due to
slowing economy. Plan review times may increase and
more advance notice will be requested for scheduling
inspections. Hazardous materials code compliance
inspections for less hazardous facilities wilt be extended so
that inspectors will be able to meet new-construction plan
review demands. All high hazard and undergound storage
tank facilities will continue to be inspected by hazardous
materials inspectors on an annual basis.
Unknown due to revised department priorities and
reduction in recruitment. Long-term impact will be a
reduction of benefit admin, support.
Increased project processing and customer wait time at the
Development Center
See above
Contingent upon retirement
Eliminate vacant Office
Specialist position
Eliminate vacant Assistant
Chief of Police position
Eliminate vacant Chief
Communications
Technician position
Eliminate vacant dispatcher
position after switching to a
4/11 work schedule.
1.00
1.00
1.00
1.00
Planning
Police
Police
Police
(67,014)
(205,046)
(105,373)
(87,777)
Workload would be reassigned to Command Staff. Some
non-essential administrative work will not get completed.
Possible delays in the maintenance, repair, installation and
design of communication systems and equipment utilized
by the City organization. Impact offset by the addition of
an outside contractor. Increase in workload for Technical
Services Coordinator who would take on the supervision of
2 Communication Technicians
Increased efficiency of scheduling of existing staff.
Eliminate police officer
overfill positions due to
vacancies and pending
retirements.
2.00 Police (221,331) Eliminate the ability to staff special assignment details sucl~
as the Downtown Detail, Special Problems Team, and
regional task force assignments.
Attachment I
Reorganize management of
Parking Program around
pending retirement of
Supervisor of Police
Services; replace with
Parking Enforcement
Officer-Lead.
Eliminate vacant Staff
Secretary position
Police
1.00 Police (72,813)
Service Level Impact
(38,150) Supervision and management responsibilities will be
reassigned to the Traffic Services Sergeant and Lieutenant.
Manual collection and logging of Shoreline Amphitheatre
noise complaints to be handled through an online
automated reporting system. Remaining duties to be shared
among existing department support staff.
Eliminate vacant Office
Specialist position
Eliminate Police Captain
responsible for coordinating
Homeland Security, due to
pending retirement
0.50 Police (33,507)
1.00 Police (185,421)
Workload will be distributed to existing support staff and
volunteers.
Utilizing federal funding (COPS), Department will
continue to contract part-time for services to ensure service
levels.
Eliminate Program
Assistant position
0.50 Public Works
Eliminate Vacant Senior 1.00
Engineering position
Eliminate Vacant Facilities 1.00
Mechanic position
(33,697) Volunteer graffiti paint-outs will be eliminated. This will
result in a longer response time for various removal
requests.
Public Works (125,220)
Public Works (76,808)
Eliminate hourly expense Public Works (6,580)
27,65 (2,939,308)
The absence of the Senior Engineer may result in permitees
experiencing a longer plan review period.
Unable to respond or delay in responding to the increased
workload of service call requests and preventive
maintenance of equipment and facilities added over the
years.
Attachment 1
2 Other positions to be eliminated, frozen or
downgraded
Reclassify Deputy City
Auditor position to Senior
Auditor (currently
underfilled)
Reclass Administrative
Assistant (CLK01 i) to
Executive Secretary
(CLK016)
City Auditor
City Clerk
Reclass Asst. City Clerk
(CLK015) to Deputy City
Clerk (CLK002)
City Clerk
Eliminate Mg. Investments
Debts & Special Projects
position
1.00 Admin Svcs
Eliminate Executive
Assistant position
1.00 Admin Svcs
Eliminate Sr. Technologist
position
1.00 Admin Svcs
(19,808) None
(1,21!) Currently underfilled as Executive Secretary
(14,599) Currently uderfilled as Deputy City Clerk
137,338)
101,355)
127,323)
Translates into fewer special projects and a delay in those
that are already assigned. This position played a key role in
creation of the Infrastructure Management Plan, assisting
with financial analysis for Storm Drain fees, and with
development of the City’s Long Range Financia! Plan.
Depending upon the timing of future debt issues, there may
be a delay in responding to future needs. Basic debt
management and investments functions will be delegated to
a Sr. Financial Analyst and overseen by the Deputy
Director of ASD.
Will result in losing support to administer and maintain the
IT division contracts. The contracts include, but are not
limited to, Enterprise-wide Oracle contract, Enterprise-.
wide Microsoft contract, SCT Banner contract, and SAP
contract, all which require significant "handling". There
would also not be an individual to administer and
coordinate the IT budget. Communication and
coordination of the IT managers and Budget group is
essential.
Will negatively impact the ability to effectively support the
ever-gowing number of applications being requested.
Workload on staff will be increased over time.
Golf Course seasonal
workers - hourly expense
Comm Svcs (27,062)Eliminates infrastructure work as specified in the Golf
Course Master Plan
Restructure Mitchell Park
front desk hours
Freeze of Director of
Libraries
1.00 Comm Svcs
1.00 Comm Svcs
(67,014)Reduction of staffing at Mitchell Park Community Center
reducing front desk hours by 50%. This will be partially
mitigated by on-line registration and an increased activity
at Lucie Stem registration desk.
176,827)Vacant position frozen. Other department/division staff
will need to take on additional managerial workloads.
Attachment I
Eliminate Art Center hourly
support for volunteer
progam - hourly FTE
Comm Svcs (7,400)Based on retirement of current hourly employee. Would
put additiona! workload on Volunteer Coordinator.
Reclass Planner to
Engineering Tech II
position
Reclass Office Specialist to
Project Assistant position
Planning
Planning
(28,473) None. Position is filled.
(21,961) None. Position is filled.
Reclass Senior Planner to
CDBG Coordinator position
Planning (9,724) None. Position is filled.
Move CDBG staff costs to
CDBG Fund
Charge Parking Assessment
Dis~-icts for City Traffic
Engineer services
Planning
Planning
(121,265)None. Eliminates fund transfer by shifting 1.2 FTE from
General Fund.
(27,468)None. City Traffic Engineer provides service to parking
assessment districts.
5.00 (888,828)
Attachment 1
3 Non-salary operational reductions
Apply City Travel City Attorney
limitations to vendor travel
No impact on service level; savings due to cost control
Reduction in the number of
CityPages publications from
4 times/yr, to 3 times/yr.
City Manager (10,000) The reduction in CityPages distribution will reduce the
City’s ability to communicate with residents via the print
media. Public Communications staff will distribute less
expensive newsletters in the Palo Alto Weekly twice per
year to make up for the reduced frequency of CityPages.
Elimination of the
legislative advocacy
contract with Kenneth
Emanuel’s and Associates.
City Manager (11,500)The elimination of this contract will reduce the City’s
legislative advocacy efforts at the state level. The loss of
this expertise will be minimized due to the States’ budget
crisis and the City’s strong relationships with both Senator
Byron Sher and Assemblyman Joe Simitian.
Elimination of the funds for
economic analysis and data
collection for special
projects related to the City’s
economic development
efforts.
Contract Services
Supplies And Materials
Facilities and Equip
City Membership
Travel and Meetings
Neighbors Abroad printing
and mailing support
eliminated
Art Center printing and
mailing budget reduced
Cubberley maintenance
contracts reduced
City Manager
Admin Svcs
Admin Svcs
Admin Svcs
Admin Svcs
Admin Svcs
Comrn Svcs
Comm Svcs
Comm Svcs
(25,000) The elimination of these funds will reduce the City’s ability
to assess economic trends and respond to potential business
impacts.
(172,924) ASD will directly bill non-GF departments for the cost of
financial advisor advice through the Cost Plan; Also ASD
Managers will take on additional projects as contracts will
be reduced
(46,141)
(46,000)If equipment breaks down. a less efficient manual
intervention may be necessary
(11,085)
(10,950)
(3,000)
ASD Staff may not be able to apply the latest technical
knowledge to day to day operations
Neighbor’s Abroad will use its own funds for printing and
mailing activity
(21,000
(21,000
Eliminates funding for brochures and pro~ams. Possibilit,
of outside funding exists. ~ "
Reductions in frequency of tennis court cleaning, s, building
and ground repairs, and landscape replacement
Cubberely turf renovations
reduced
Comm Svcs (16,086 In year two, turf will be mowed at a reduced rate. Field
user goups will be asked to supply some maintenance such
as lining fields. Fields will remain in safe condition.
Cubberley miscellaneous
reductions
Comm Svcs (11,808)Reductions in travel, rodent control, equipment
replacement, etc.
Attachment 1
Reduce support to CSD
Commissions
Family Resources
equipment replacement and
contracts reduced
Landscape maintenance
curtailed at Terman
Utilities landscaped areas
budget adjustment
Reduce high cost/low
enrollment Recreation
classes.
Children’s Theatre Outreach
shows: Over two years
reducebudget by rolling
back the Children’s Theatre
Outreach program to
previous levels.
Public Art: Reduce art
purchasing budget by
$5,000 and maintenance
budget by $5,000
Summer music concerts
reduced
Art Center hours
Human Services gant
funding reduced
Seasonal Workers program
reduced
Close Terman Park Library
Comrn Svcs
Cornrn Svcs
Comm Svcs
Cornrn Svcs
Cornm Svcs
Cornrn Svcs
Comm Svcs
Comm Svcs
Comm Svcs
Comm Svcs
Comm Svcs
Comm Svcs
(17,090)Clerical support, travel, meals, etc, reduced to Public Art,
Human Relations, Library, and Parks and Recreation
Commissions
(12,470)Outside consultant support and up to date computer
equipment will be eliminated
(14,000) Now a school district responsibility
(11,700)Reduces budget to reflect historically accurate costing for
Utility facility landscape maintenance.
(40,000) Reduction in numbers of courses offered
(50,000) Children’s Theatre will continue to rotate shows through
PAUSD schools, but at a reduced rate. Three shows
eliminated in year one and two more shows in year two.
(10,000)
(21,000)
(10,500)
(!9,809)
(23,450)
(61,750)
$55,000 will remain in the capital budget for the purchase
of public art. Maintenance of existing art will be reduced,
not eliminated. The Public Art prog-ram is bolstered by
receiving 1% of construction budgets for major City CIP
projects.
An elimination of hourly salaries and performer contracts.
Twilight and Brown Bag concerts will only be produced if
outside funding is procured.
The Art Center will now be closed Sundays and Monday
evenings. This reduction will eliminate Sunday music
performances.
This reduction lessens the pool of funding for non-sole
source agencies applying for HSRAP funding.
Additionally, there are no 2003-04 CPI adjustments for
HSRAP agencies.
Seasonal workers pro~am cut by 50% over two years,
from ten participants to five.
Lowest use branch in system. Collection and regular salar~
staff resources will be redirected to other libraries. This
closure will also produce the opportunity for reduction in
Public Works’ and the IMP budget in that no future
maintenance or capital projects will be required.
Reduce open days at
College Terrace and
Downtown Libraries and
closes Main Library on
Friday nights
Comm Svcs (40,592)Reduce College Terrace and Downtown Library open days
to 4 per week. Closes Main Library on the evening the
library, is used least.
7
Attachment 1
Eliminate California Land
Management contract to
patrol urban parks on
weekend and holidays
Eliminate free nature hikes
Jr. Museum Sciences
outreach classes
Open Space trail
maintenance contract with
California Conservation
Corps
Closure of Jordan pool
during summer
Defer tennis court
resuffacing at City and
PAUSD courts
Vehicle reductions-
eliminate Cars
Reduce non-salary
operating expense for entire
department by 5 percent
Comm Svcs
Comm Svcs
Comm Svcs
Comm Svcs
Comm Svcs
Comm Svcs
Fire
Fire
(10,000)
(7,893)
(7,893)
(15,000)
(io,ooo)
(40,000)
(34,408)
(56,5t6)
Eliminates contract personnel who enforce picnic
regulations at community parks on weekends and holidays
Use of urban park picnic areas will be on first-come-first-
serve basis.
Nature hikes at Foothills and Baylands will be curtailed.
Volunteer groups may keep service going.
In-school classes will be provided at cost.
Rangers will maintain trails on a less frequent basis. Trail
accessibility may degrade during certain times of the year,
although service level reduction should be minimal due to
CityWorks trail projects.
Swim lesson program at Jordan pool will be eliminated.
Demand will be met at Rinconada and Gunn pools.
P.A. High School, Rinconada, and Terman courts have
been recently resurfaced. Hoover, Weisshaar, Peers Parks
and Jordan Schoo! to be deferred two years.
None
Across-the-board impact from reducing training materials
to reducing purchase of replacement emergency response
materials.
Eliminate Medics on Bikes
Program
Station 8 will be staffed
with on-duty personnel
instead of overtime
personnel. Savings is
equivalent to 1 FTE at
overtime rate.
Reduce advertising budget
Fire
Fire
Human Res
(10,332)
(190,512)
(60,000)
This program will be eliminated. Paramedics on bicycles
will no longer be provided at special events such as the
Chili Cook-off and the Art and Wine Festival. Currently
the department provides Paramedics on bicycles at 10-12
events annually. During these assignments, the department
backfills their positions with overtime staff.
Station 8 will be staffed with on-duty personnel instead of
overtime personnel, resulting in three less staff on shift
during the summer months than in previous years. All fire
stations will continue to be staffed by relocating personnel
from other fire stations that currently have more than one
unit assigned to that location.
None, due to hiring freeze.
Delete exit interview
contract
Reduce relocation budget
Human Res
Human Res
(5,000) None, service to be provided in-house.
(25,000) Minimal until hiring freeze is lifted.
Reduce training courses Human Res (30,000) Reduce number of training courses offered to employees.
Scale down
award/recognition program
Human Res (28,000) Delete Public Employees Recognition Week: Delete 2
Mgrs. Forums; 1 scaled-down employee picnic with no
employee awards issued
Attachment
Move CDBG program costs
to CDBG fund
Reduce travel expense
Eliminate catering for all
staff meetings
Eliminate catering for all
board & commission
meetings
Eliminate town architect
contract
Reduce Printing and
Mailing expense
Sponsorships for Art &
Wine Shuttle
Eliminate mediation from
Individual Review
Planning
Planning
Planning
Planning
Planning
Planning
Planning
Planning
(18,735) None. Eliminates fund transfer
(16,100)Training funds will be used to attend local and regional
meetings required for agency coordination and professional
development.
(3,700) No employee recognition lunch, no coffee at 8am meetings
(8,400)No refreshments for board/commission members,
regardless of meeting time.
(40,000)No independent architectural review of capital
improvement projects.
(15,000) Reduced materials available for public information.
(9,000)
Independent mediator not provided by the city to meet with
applicants, neighbors and staff regarding neighborhood
compatibility of 2-story home design. Unbudgeted expense.
Eliminate 9 department
vehicles and extend the
replacement/economic life
of 17 vehicles.
Reduction in Field Services
Division operational costs
Police
Police
(100,052)
(44,765)
Eliminate exclusive use vehicles for managers may
decrease availability of motor pool vehicles for existing
staff and create some transportation issues. Although
police officer safety will not be compromised, extending
replacement of patrol vehicles increases risk of higher
maintenance, and potentially result in replacement of a
larger number of cars at one time within the next few years.
Decrease assumes no raise in booking fees from Santa
Clara County.
Reduction in Technical
Services Division
operational costs
Eliminate Master Social
Worker contract with Santa
Clara County
Police
Police
(36,510)Reduction includes extending the replacement of
Department PCs. May not be able to take advantage of
emer~in~ technoloNes as quickly.
(41,368)Decreased level of service by not having the expertise of an
onsite Master Social Worker immediately available to
police during certain types of investigations. Santa Clara
County will continue to provide service.
Attachment I
Reduce the cost associated
with the Health Resource
Coordinator by limiting the
number of hours worked.
Department
Police
Savings Service Level Impact
(15,000) Contract for Emergency Call-outs only. Reduces or
eliminates the amount of hours the HRC is on site for
"drop-in" visits.
Eliminate hourly
Community Service Officer
responsible for proactively
enforcing the Noise
Ordinance.
Equip Maint & vehicle
replacement allocated cost
Police
Public Works
(37,586)
(5,5OO)
Eliminate proactive noise enforcement of leaf blowers
during the 40 hours per week currently worked by the nois~
specific CSO. Response to other noise complaints (barking
dogs, construction, loud radios) by officers during this time
would be dependant upon other higher priority calls-for-
service.
A portion of replacement and maintenance and operation
costs will be paid by Refuse Fund.
Vehicle Replacement Costs
allocated cost
Contract Agency
Supplies & Materials
Concrete Materials
reduction
Reduction-asphalt materials
Equipment rental
Eliminate Temp Salary
Graffiti
Eliminate OT Volunteer
Graffiti
Banners and Lights
Slurry Seal Parking Lots
Slurry Seal Downtown Lots
Supplies gaffiti
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
Public Works
(5,532)A portion of replacement and maintenance and operation
costs will be moved to Refuse Fund
(14,435) Agency temps will no longer be used for office coverage
(5,000)Reduction in expenditures to offset realignment requests in
general fund.
(5,000) Decrease in concrete material purchase.
(22,290)Reduction in expenditures to offset realignment requests in
general fund.
(2,500)Reduction in expenditures to offset realignment requests in
general fund.
(6,013) Reduction in hourly expense.
(3,376) Reduction in hourly expense.
(15,000)Banners and lights along University, Lytton and Hamilton
will no longer be funded.
(10,000)Slurry sealing of parking lots will no longer be completed
prior to resuffacing.
(33,500) See above.
(4,000) Reduce supplies purchased for graffiti removal program.
Reduction Shoreline
Monitoring
Eliminate MSC Security
Services
Reduce Cubberley Facilities
Operating Budget
Public Works
Public Works
Public Works
(5,000) Delete Shoreline Monitoring from Budget
(94,000)Eliminate Municipal Service Center Security Services.
Front gates will be reconfigured for automated entry and
exit.
(20,000)Reduce cubberley Operating Budget for Facilities
Maintenance.
(1,906,771)
10
Attachment 1
Department
40utsourcing Opportunities/Productivity
Pursue Contract Managers City Attorney
in Departments
Savings Service Level Impact
Less Time Spent on Contract Process; provides consistency
in process; and controls dollars/cost
Reduce audit contract -City Auditor
services
City Clerk is outsourcing
the process of duplicating
City Meeting video tapes to
MCMC.
Working with the Utilities
Department to increase
CSD’s ability to conserve
water and energy
Return joint city school-
sponsored bike & pedestrian
safety training in local
schools to volunteers
City Clerk
Comm Svcs
Planning
(20,000) Reduction will impact external audits and potential revenue
recovery of TOT, UUT, Sales Tax and Property Tax
revenues
Video copies of City Meetings will be sold at MCMC and
will not be available in the City Clerk’s Office
CSD is one of the highest users of water, electricity and gas
because of the many facilities, parks and fields it operates.
There are many opportunities to decrease utility use and
save considerable funding.
(11,000)School district will have funds to hire "Safe Moves" but
not Coordinator
Eliminate Shuttle Planning (10,000)
Advertising
Contract out City Radio
maintenance (2004-05)
2.00 Police (127,661)
Roadside Clearing Public Works (20,000)
2.00 (188,661)
Use web, utility bills, new bus image instead of traditional
advertising.
Reduction of 2.0 FTE Communications Tech.. offset by
contract for radio maintenance services. Provides industry
standard type of radio service for City. Improved levels of
service; workload managed by priorities under service level
a~reement.
Roadside clearing will be completed by city crews.
11
Attachment 1
Entrepreneurial or other joint service partnerships
Promote City training Human Res
prog’rams to Chamber, other
Cities, School District
Savings
20,000
Offer recruitment services Human Res
to other Cities
Provide Plan Checking &Planning 300,000
Field Inspection for
Stanford’s Senior Housing
Project
Provide matching funds for Planning 3 !0,000
Intermodal Transit Grant
Private sponsorship of K-9
program
Planning for future animal
sheltering services contract
with the City of Sunnyvale.
Police 2,000
Police Potential for $80,000 contract revenue once contract is
executed.
632,000
12
Attachment 2
MEMORANDUM
TO:
FROM:
RE:
DATE:
Frank Benest, City Manager
Mary Hanna, Public Communications Manager
DataCycles Survey Results
March 13, 2003
Attached are the results of the online survey conducted by DataCycles on our
behalf to determine which City services are viewed by residents as "essential"
and which are considered "less essential."
In this memo I’d like to review the sample selection process, the survey
methodology, and next steps, in addition to a brief analysis of the results of this
survey.
BACKGROUND
Faced with the reality of cuts to City services due to the budget crisis, the City
Council expressed a desire to hear a wide range of opinions from residents.
Therefore, before finalizing the City Manager’s proposed 2003-05 budget to the
Council, we commissioned an online survey of residents.
We contracted with DataCycles, the firm that conducted the Fiber to the Home
survey for City of Palo Alto Utilities as well as other City surveys, to construct and
administer a survey using a previously determined representative sample.
The reasons for choosing an online survey, and in particular, for choosing
DataCycles, were three-fold. First, they had a sample already in place that was
representative of the Palo Alto community (including both North and South Palo
Alter’s, both homeowners and renters, residents with children and those without).
Ha g a pre-existing sample allowed us to move quickly to gather the data and
report the results in time for the March 18 Finance Committee meeting. The
online survey achieved an 83% response rate.
Second, the cost was about half that of a traditional telephone survey. The
DataCycles survey cost $12,000, paid out of City Manager’s Office budget.
Third, offering the survey online gave us the opportunity, after we had collected
our representative sample, to open up the survey to every Palo Alto resident and
business owner. The only way such a broad-based survey is economically
feasible is if it’s online and each participant inputs his or her own responses. This
is a good fit for Palo Alto, since 90% of the residents have Internet access. Of
course, we have paper surveys available for those without Internet access or
those who simply prefer paper. We will be manually inputting their responses.
THE SURVEY
The sample for this survey was a group of 630 residents previously identified by
the following method:
A postcard mailing was done to approximately every 5th Utilities customer
(5,000 households) asking them to participate in a survey about Fiber to
the Home and current communications services.
,040 residents responded; 909 online.
Respondents who indicated their willingness to be surveyed on other City
issues were contacted for the City Services survey.
Our survey sample size was 620. We had 519 completed surveys, for an 83%
response rate. (Eight respondents offered comments only).
The survey itself was a list of City General Fund services. (Paper version is
attached.) For each service, participants were asked to indicate, on a scale of 1
to 5, their opinion of its contribution to the overall well-being of Palo Alto
residents.
Faced with a long list of things to rate, survey respondents often fail to complete
the questionnaire. For this reason, we organized the services into 4 groups.
After each group, we asked participants to suggest ways to reduce expenses or
create new revenue from the services listed. Most participants did include some
comments. Themes are summarized later in this memo. Full comments will be
posted on the city’s web site (www.cityofpaloalto.org) on Tuesday, March 18.
THE RESULTS
The data are compiled in two graphs (attached). The first shows the indicators of
"strong opinion." In other words, the percent of 5’s ("extremely important") and
the percent of l’s ("not at all important") each service received. The list is
displayed in descending order.
The second graph shows the complete rang_e, of scores for each service, with
opinions in one of four groups: more important (4-5), neutral (3), less important
(1-2), and not sure/no response. The list of services is in descending order
based on the percentage of 4 and 5 scores each service received..
The composition of scores for each service gives us a more meaningful look at
the data than would an average numerical score. An average score of "3" may
mean that everyone was neutral about it. Or it may mean that half were strongly
supportive and half were strongly against. There is no statistical differentiation.
2
CONCLUSIONS
The data reveal several things:
There is a recognition that the budget crisis is real.
’~Ne need to cut back service levels."
’~/Ve need to make ends meet."
There is diversity of community opinion on how to solve the problem.
"The City Manager understands priorities and needs far better than
any one citizen."
"Cut the number of staff in half."
There is a willingness to prioritize in tough times.
"There are no sacred cows."
"Focus on the basics."
Several themes emerged from the survey suggestions:
Use volunteers for many different City activities.
Institute user fees for service where there are none.
Increase fees where they currently exist to make programs self-
supporting.
Seek corporate sponsors or donors for such programs as special events
and cultural programs.
NEXT STEPS
The survey is now open to all Palo Alto residents through April 10. As of March
9, we had 335 participants. Interim results show that the ’open’ survey is tracking
very closely to the resident sample.
To publicize the survey, we are:
Featuring it on our City web site.
Including the information in the Utility bills.
Issuing press releases, which have resulted in stories in both the Palo Alto
Daily News and the Palo Alto Weekly.
Sending notices to neighborhood associations, some of whom have put
the information on their own web sites.
Passing out flyers at all community budget meetings (attached).
The results of the "open to all" survey will be published at the conclusion of the
survey period.
3
DataCycles Palo Alto Budget Survey o 2/03 (Final Results)
Ranking of Fund Services: ’Essential’ and ’Not Important’ Scores
0%10%20%30%40%50%60%70%80%
Fire Fighting (Suppression)
Emergency Medical/Paramedics
Investigation of Crimes Against Persons
Disaster Preparedness
Investigation of Property Crimes Over $10,000
Police Patrol
Book/Media Acquisition and Lending
Open Space Preserves and Bayiands
Public Facilities (Libraries, Community Centers, City Hall)
Youth Programs and Classes
Parks and Non-school Athletic Fields
Streets and Sidewalks
Investigation of Property Crimes Under $:[0,000
City Upkeep of Public School Fields
Neighborhood Branch Libraries
Traffic Enforcement (Moving Violations)
City Website
Building Inspections
Building Codes
Business Attraction and Retention
Financial Support. For Social Service Agencies
Review/Process Proposed Development Projects
Public Computers/ [nternet Access
Children’s Theatre
Animal Control (pick-up of strays, dead animals)
Zoning Regulation
Police Officers Assigned To Schools
Affordable Housing Projects
Assisting Businesses With City Processes
Connecting Families With Resources
Neighborhood Watch
Noise Complaints
Response to Non-injury Traffic Accidents
Tree Trimming
¯ Historic Preservation
Free Local Shuttle
Single-Family Home Review
Signs
Parking Enforcement
Traffic Calming (roundabouts, speedbumps, etc)
Wildlife Rescue
Adult Programs and Classes
Palo Alto Art Center
Citizen Police Academy
Bus Shelters
Community Information Publications
Foreign Language Materials
Public Art (Murals, Sculptures, etc.)
Cable TV Shows (Council meetings, etc.)
Special Events (Parades, Chili Cook-off, etc.)
I , I
I I
I I
I I
| I
1 1
I [] Essential
~[] Not Important
90%100%
¯ Services are ranked from highest importance to lowest importance, based on the percentage of respondents who answered ’5’ for each service, on a 1 - 5 scale where 5 =
Essential and 1 = Not Important. (511 survey responcents rated ser~ces,)
Palo Alto Budget Survey = 2/03 (Final Results)
Ranking and Score Composition of General Fund Services*
0%10% 20%30% 40% 50% 60%70%80% 90% 100%
Emergency Medical/Paramedics
Fire Fighting (Suppression)
Investigation of Crimes Against Persons
Investigation of Property Crimes Over $10,000
Disaster Preparedness
Police Patrol
Public Facilities (Libraries, Community Centers, City Hall)
Open Space Preserves and Baylands
Parks and Non-school Athletic Fields
Book/Media Acquisition and Lending
Youth Programs and Classes
Streets and Sidewalks
Investigation of Property Crimes Under $10,000
City Upkeep of Public School Fields
Building Codes
Building Inspections
Neighborhood Branch Libraries
City Website
Traffic Enforcement (Moving Violations)
Review/Process Proposed Development Projects
Animal Control (pick-up of strays, dead animals)
Children’s Theatre
Business Attraction and Retention
Financial Support For Social Service Agencies
Neighborhood Watch
Zoning Regulation
Assisting Businesses With City Processes
Police Officers Assigned To Schools
Response to Non-injury Traffic Accidents
Tree Trimming
Public Computers/ Internet Access
Connecting Families With Resources
Noise Complaints
Affordable Housing Projects
Single-Family Home Review
Historic Preservation
Signs
Parking Enforcement
Palo Alto Art Center
Wildlife Rescue
Adult Programs and Classes
Free Local Shuttle
Community Information Publications
Bus Shelters
Foreign Language Materials
Traffic Calming (roundabouts, speedbumps, etc)
Public Art (Murals, Sculptures, etc.)
Citizen Police Academy
Cable TV Shows (Council meetings, etc.)
Special Events (Parades, Chili Cook-off, etc.)
~~More Important (4-5)
!1@ Neutral (3)
* Services are ranked from highest importance to lowest importance, based on the percentage of respondents who answered ’4’ or ’5’ for each service, on a 1 - 5
scale where 5 = Essential and 1 = Not Important. (511 survey respondents rated services.)
CITY OF PALO ALTO BUDGET SURVEY
Palo Alto’s deficit next year (July 1,2003 - June 30, 2004) is projected to be $9
million, or 7% of the $125 million General Fund budget, making service cuts
necessary. Our goal is to collect and present a range of opinions and cost-saving
ideas from Palo Alto residents about the City Services listed below. Your input
will be very much appreciated.
Please note that services funded by tax dollars through the Palo Alto General
Fund are the only ones listed on this form. Services that are self-supporting
through fees (such as utilities, recycling, street sweeping, etc.) do not appear
since their funding is not jeopardized.
Please return the survey by March 23, and thank you for participating.
Frank Benest, Palo Alto City Manager
How Important Are These Public Services?
For each service, indicate your opinion of its contribution to the overall well being
of Palo Alto residents.
Please keep in mind Palo Alto’s
need to reduce expenditures when
rating the importance of each service.
1 < Not at all important / Extremely important > 5
Recreation Events
Youth Programs and Classes
Adult Programs and Classes
Special Events (Parades, Chili Cook-Off, etc.)
Junior Museum and Zoo
Park Maintenance
Open Space Preserves and Baylands
Parks and Non-School Athletic Fields
City Upkeep of Public School Fields
Maintenance and Repair
Public Facilities (Libraries, Community Centers, City
Hall)
Streets and Sidewalks
Bus Shelters
Tree Trimming
Traffic and Transportation
Traffic Calming (Roundabouts, Speed Bumps, etc.)
Free Local Shuttle
~ql []2 []3 []4 ~5 ,qNotsure
~1 ~2 ~3 []4 []5 []Notsure
,~1 ~2 ~3 ~4 ~-5 []Notsure
~1 []2 []3 []4 []5 []Notsure
~1 m_2 _,-~3 ,_,m4~5 ,~Notsure
.,’_ql []2 ~3 []4 []5 []Notsure
[]1 _rq2 _m3 _n4 ~5 ~-Notsure
_rql ,_~2 []3 ~4 []5 []Notsure
[]1 ~2 []3 ~4 []5 []Notsure
Comment? If you have an idea for reducing expenses or creating new revenue from a service
listed on the previous page, please use the space below.
IPlease continue...1 < Not at all important / Extremely important > 5 i
Communications
Cable TV Shows (Council Meetings, etc.)
Community Information Publications
City Website
Library Services
Book/Media Acquisition and Lending
Public Computers/Internet Access
Foreign Language Materials
Neighborhood Branch Libraries
Arts, Culture, and Human Services
Public Art (Murals, Sculptures, etc.)
Children’s Theatre
Palo Alto Art Center
Connecting Families with Resources
Financial Support for Social Service Agencies
Not sure
Not sure
Not sure
Not sure
Not sure
Not sure
Not sure
Comment? If you have an idea for reducing expenses or creating new revenue from a service
listed above, please use the space below.
2
Next section 1 < Not at all important / Extremely important
Police and Fire Services
Fire Fighting (Suppression)~ 1 []2 C3 ~4
Disaster Preparedness [] 1 []2 ,__33 Q4
Emergency Medical/Paramedics ~ 1 [] 2 ~ 3 [] 4
Traffic Enforcement (Moving Violations)t_q 1 ~ 2 [] 3 [] 4
Police Patrol ¯[]1 ~2 []3 ~4
Investigation of Crimes Against Persons [] 1 [] 2 ~q 3 [] 4
Investigation of Property Crimes Under $10,000 [] 1 []2 []3 []4
Investigation of Property Crimes Over $10,000 [] 1 C,’ 2 ~ 3 [] 4
Response to Non-Injury Traffic Accidents [] 1 [] 2 ~ 3 ~ 4
Neighborhood Watch [] 1 ~2 ~ 3 ~_4
¯ Citizens Police Academy [] 1 ~ 2 [] 3 [] 4Police Officers Assigned to Schools [] 1 [] 2 C 3 ~ 4
Animal Services
Animal Control (Pick-up of Strays, Dead Animals)~ 1 ~ 2 ~ 3 _~ 4
Wildlife Rescue ~1 []2 ~3 ~J4
[]5 []Notsure
[]5 []Notsure
[]5 []Notsure
[]5 []Notsure
_~5 []Notsure
~5 ~Notsure
[]5 []Notsure
~5 []Notsure
[]5 ~Notsure
[]5 []Notsure
[]5 []Notsure
[]5 ~Notsure
[]5 ~Notsure
[]5 []Notsure
Comment? If you have an idea for reducing expenses or creating new revenue from a service
listed above, please use the space below.
And finally ...1 < Not at all important / Extremely important > 5
Planning and Building Services
Zoning Regulation
Single-Family Home Review
Building Inspections
Review/Process Proposed Development Projects
Historic Preservation
Affordable Housing Projects
Code Enforcement
Noise Complaints
[]1
[]1
[]1
[]1
[]1
[]1
~2 ~3 $4 :~5 []Notsure
C2 []3 ~4 C5 []Notsure
~2 []3 []4 []5 ~2Notsure
[]2 []3 rq4 []5 ~Notsure
[]2 []3 C4 ~5 []Notsure
~2 []3 C4 ~5 []Notsure
[]2 ~3 []4 C5 ~Notsure
Parking Enforcement
Building Codes
Signs
[]1 []2 []3 []4 []5 []Notsure
[]1 []2 []3 []4 rq5 []Notsure
[]1 []2 []3 []4 []5 []Notsure
Business Services
Business Attraction and Retention
Assisting Businesses with City Processes
[]1 []2 []3 []4 []5 []Notsure
[]1 []2 []3 []4 []5 []Notsure
Comment? If you have an idea for reducing expenses or creating new revenue from a service
listed above, please use the space below.
To tabulate responses properly, we need the following information"
(Your personal data will be kept strictly confidential. Please print.)
First name Last name
E-mail address (optional - we would
use this only to ask your opinion on any follow-up questions or issues)
Palo Alto Street Address
Apt./Suite #Zip code
The address above is a residence business
Do you own or rent your residence? __ own ~ rent
In which age bracket are you? __18-24 __25-34 __35-49 __50-65 __
Do you have children at home? None 1 2 3 4
Over 65
More than 4
That’s it! Thank you very much for your assessment. The feedback
gathered through this effort will help the City allocate resources.
Mail by March 23 in the pre-addressed stamped envelope, or send to:
Budget Survey
City Manager’s Office
250 Hamilton Ave. MS 7B
Palo Alto, CA 94301
4
WAN ~ED: Y
Tough economic times mean City budget cuts
that wii| affect you and your fami|yo
|eSoCO~/bg ~e~s~rve~
Completing the survey online saves the City rn~ney