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Home My WebLink About2002-04-15 City Council (3)BUDGET ’02-’03 City of Palo Alto City Manager’s.Report TO: FROM: HONORABLE CITY COUNCIL ~4 CITY MANAGER DEPARTMENT:ADMINISTRATIVE SERVICES DATE: SUBJECT: APRIL 15, 2002 CMR:203:02 BUDGET IMPLICATIONS OF THE CITY COUNCIL’S TOP FIVE PRIORITIES BACKGROUND The budget for the City of Palo Alto is structured around the Mission Driven Budgeting (MDB) concept, which effectively groups resource allocation priorities at the service delivery level. These service groups, known as Major Activities, are then further grouped into more distinct service delivery categories called Functional Areas. Department budgets are comprised of several key Functional Areas, structured around their mission statements (see 2001-03 Adopted Budget document). A number of issues have affected the 2002-03 budget process which got underway in February: ¯Fiscal 2002-03 is the second year in the City’s bi-annual budget process. ¯The current economic downturn delayed the start of the 2002-03 budget review by several .months so staff could both work on this year’s finances as well as develop new assumptions on next year’s underlying economic climate. ¯An estimated $9.0 million reduction in the City’s revenue base for 2002-03 has resulted in an extensive review of departmental budgets, similar to the review performed during the 2001-02 midyear. The proposed layout of the 2002-03 budget document was described to the Finance Committee on March 5, 2002 (CMR:165:02), As an interim-year document, the focus will be on the amended finances and describing any proposed changes in service delivery as a result of specific budget reductions. As requested by Council, departments will now include a bullet list of specific programs and/or services which further the Council’s top- five priorities in their operational overview section. These will be summarized in the City Manager’s transmittal letter at the front of the operating budget document. CMR:203:02 Page 1 of 6 DISCUSSION This report describes items submitted by departments for inclusion in the "Council Priority Implementation" section of the proposed 2002-03 budget document. Along with these items are estimates of funds dedicated to delivery of services related to the Top Five Council priorities. It should be noted that the current financial system limits the reporting capabilities of budget figures to department Service delivery functions (i.e. major activities, functional areas, capital projects, etc.). As the budget is structured around specific department missions, it should be noted that staff time and other costs related to the delivery of Council priority-related services are estimated. The estimated dollars are included in the 2002-03 Proposed Budget. Actual spending may be slightly higher due to current year encumbered budget dollars and carry-forward spending being rolled into next year’s adjusted budget. Affordable Housing - $1,555,395 Administrative Services Department (Real Estate division) - $20,000 ¯Administration of land acquisition for below-market-rate (BMR) housing ¯Review of BMR housing units for resale by the Palo Alto Housing Corporation Planning and Community Environment - $1,412,000 ¯Affordable housing site request for proposals - select non-profit, acquire sites ¯Oak Court - complete regulatory agreements with Palo Alto Housing Corporation ¯Buena Vista - work with property owners to develop plan ¯Build awareness of affordable housing ¯Opportunity Center Housing Other Department Activities: ¯City Manager’s Office staff time - $23,000 ¯City Attorney’s Office staff time - $100,395 CityWorks - $18,605,524 Public Works ¯ Buildings and Facilities - $7,768,000 1. $5,255,000 Operating expenses 2. $2,513,000 CIP expenses - including: Lucie Stem Community Theatre Stage floor replacement, roofing replacement, Civic Center infrastructure improvements, Fire station improvements, facility interior finishes replacement, Foothills Park interpretive center mechanical upgrades ¯Parks and Open Spaces - $1,164,494 CMR:203:02 Page 2 of 6 1.$708,494 Operating expenses (includes trees) 2.$456,000 CIP expenses - including: Park trails, Open Spaces lakes and ponds, Baylands park improvements, park facilities improvements Streets and Sidewalks - $9,370,000 1. $5,064,000 Operating expenses 2. $4,306,000 CIP expenses Traffic and Transportation - $171,000 1. $15,000 Operating expenses 2. $I56,000 CIP expenses - Medians, islands, and planters renovation projects Other Department Activities: ¯City Manager’s Office staff time - $137,000 ¯City Attorney’s Office staff time - $132,030 Storm Drainage Improvements - $60,000 - form Blue Ribbon Committee to develop funding strategy and implementation plan; conduct property owner election to increase storm drainage fee Other major infrastructure projects 1. Police building - complete EIR and conceptual design, prepare for tax measures 2. Homer Avenue Undercrossing - complete design and begin construction 3. Parking Structure - complete lot R construction 4. Roth Building - select architect; demolish non-historical wings and construct bracing ¯Work with City Attorney to update and streamline contracts process Provide leadership and coordination of CityWorks plan by infrastructure team 1. Quarterly reports to City Council on progress of CityWorks program 2. Highlight and celebrate achievement of key milestones 3. Development recognition and incentives for City project managers and private contractors who bring projects in on time and under budget ¯Compile data for Module 4 of the Infrastructure Management Plan (IMP), bridges and parking lots Land-Use Planning - $5,029;830 Planning and Community Environment - $4,507,000 CMR:203:02 Page 3 of 6 ¯Zoning Ordinance Update ¯SOFA II ¯South E1 Camino Real Study ¯Hyatt Ricky’s EIR and project review ¯Supplemental EIR for Stanford Research Park (if pursued by Stanford) ¯Housing Element Update Other ¯ ¯ ¯ Department Activities: City Manager’s Office staff time - $23,000 City Attorney’s Office staff time - $191,830 Public Works Operational expenditures - $308,000 Alternative Transportation - $5,156,485 Planning and Community Environment - $3,441,000 ¯Bicycle/Pedestrian facilities 1. Complete California Avenue bicycle and pedestrian undercrossing conceptual plan 2. Complete bicycle master plan 3. Implement Embarcadero Bridge bicycle path alongside Caltrain tracks from PAMF to Churchill 4. Install new traffic signal at Middlefield and Meadow 5. Implement physical improvements to enhance crosswalk safety at a minimum of six locations per year 6. Continue implementation of Homer Avenue Undercrossing School Commute safety 1. Complete South Palo Alto School Commute Study 2. Develop school commute corridors criteria and designations Traffic Calming 1. Implement Lytton intersection improvements (CIP) 2. Complete Lytton neighborhood traffic calming study 3. Neighborhood streets traffic calming (spot treatments) - undertake six projects per year 4. Complete PS&E for downtown north traffic calming trial Transit Facilities and services 1. Continue development of intermodal transit center 2.Continue Palo Alto shuttle schedule and route refinements, increase passenger boardings to 150,000 per year CMR:203:02 Page 4 of 6 Travel demand management 1. Enhance and expand City employee commute incentives -increase participants to 225 2. Implement Citywide commute alternative programs - work with a minimum of fifteen major employment sites throughout Palo Alto Transportation and land use 1.Update/upgrade citywide transportation computer model and develop citywide traffic impact fee nexus study Police Department - $1,662,000 Continue to promote the safe and orderly flow of pedestrian, bicycle and vehicular traffic ¯Participate in community task forces to identify traffic calming measures for collector and neighborhood streets, and school zones ¯Maintain a zero accident rate at crossing-guard controlled intersections Other ¯ Department Activities: City Manager’s Office staff time - $23,000 City Attorney’s Office staff time - $30,485 Long Term Finances - $466,272 Administrative Services Department - $71,000 ¯ Update and presentation of Long Range Financial Plan Other Activities and Fees: ¯ Redevelopment Agency (City Manager, ASD) - $200,000 1. Adopt Edgewood redevelopment plan 2. Approve project area Development Impact Fees - Phase II (PC&E, ASD) - $54,000 1. Finish transportation model for fee nexus study 2. Plan for circulation improvement 3. Complete nexus study 4. Fee recommendations to Finance Committee ¯ CMR:203:02 Develop plan for November 2002 Bond Measure (City Manager, ASD) - $30,000 Aggressively pursue grant funding (City Manager) Page 5 of 6 ¯Develop financing plan for new infrastructure (City Manager, ASD) - $43,000 1. Business license and TOT proposal to Finance Committee and Council Other Department Activities: ¯ City Attorney’s Office staff time - $68,272 RESOURCE IMPACT Overall, the estimated 2002-03 Proposed Budget impact related to Council top priorities is: Affordable Housing CityWorks (Infrastructure) Land-Use Planning Alternative Transportation Long Term Finances $ 1,555,395 $18,605,524 $ 5,029,830 $ 5,156,485 $466,272 TOTAL:$ 30,813,506 Even with the revenue reductions in 2002-03 due to the economic downturn, staff believes there is adequate funding for accomplishing the City Council’s top five priorities in the 2002-03 proposed budget. PREPARED BY: DEPARTMENT HEAD APPROVAL: CITY MANAGER APPROVAL: CHARLES PERL Budget Manager Director, Adr~nistrative Services EMILY HARRISON Assistant City Manager CMR:203:02 Page 6 of 6