HomeMy WebLinkAbout0317.091-
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June 6, 1991
HONORABLE CIT¥ COUNCIL
Palo Alto r California
BUDGiT 9 1-92
Attention: Finance and Public Works Co~~ittee
ltESr-ONSES TO P:rNANCB AND PCBLIC WORRS COMMITTEE QUESTJDNS AND
ANSWERS A~ BORGET REARING ~~ 30, 1"1
Members of the Council:
Report ill Bri.f
Belo~ are responses to questions raised and assignments given at
the May 30, 1991 Finance and Public Works Corr~ittee (F&PW) budqet hearin9~ The questions and their responses are arranged under the
following categories: General, Capital Improvement Program (eIP},
Department, and Ac!ditional Budget Requests. The las~ category
includes four items tnat were not included in the printed document
and about which staff wishes to notify F&P~.
GENERAL
Q: Are there fee areas in the General Fund that could be raised
more than ~hat is currently proposed? Ho~ much ~ore could be raised?
A: As a result of the Ussr-Fee Study. ... .. hich wa's presented to
Council in April of i990 (CMR:257:0), the General Fund is now
subsidizing fee-related programs approximately 42 percent or
$446 million. The largest dollar subsidies for fee-related
programs are within the Arts and Culture an.d Recreation Divisions.
CI!R: 317: 91
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Staff weighs many factors before rec~mm~ndinq fee increases.
Considerinq the type of service ~hich is provided, comp~rable
services ~ithin the city, what the market viI! bear, ~hat is
c'.,!stomary 'Within Palo Alto, and the purpose for charging the
fee are all important factors 'Which should be considered.
Note that from 1989 to 1990, user fees increased about $.6
millicn , or 12 percent. They are expected to increase another
-C percent in 1991 and 5 percent in 1992. Staff recommends
th~t fees be addressed in a manner consistent 'With the User
Fee study. Fees will be addressed in the 1992-94 two-year
budget.
0: How can funding for the Tarl!\an School site developl:Ient be
covered by utility user tax receipts?
A, The utility users tax is ~ general tax, which can be used for
any General Fund purpose. Council policy in the past has been
to use proceeds of the tax for: i) lease payments to the
PAUSD; 2) operating and minor capital costs of school sites
under lease; and 3) augmentation of the street and sidevalk
replacement programs. There is no legal restriction to
Council using utility user tax monies tor support for Terman
School capital projects or for support of the Terman Library.
However,. only approximately $300,000 per year is not committed
for the purposes described above. This money is anticipated
to be used for the Cubberley School site renovation. If
Council redirected money to Te~man, there ~ould be a commensu
rate decrease in the ~oney ~vaileble for the C~bberley School
site.
Q: Why are the numbers in the tW'o-)'ear budget document and the
interim 1991-92 document different? Specifically, why are the
follo~inq columns different: 1989-90 actual and 1989-90
adjusted budget columns; the 1990-91 proposed and the 199D-91
adjusted budget columns; ~nd the 1991-92 proposed columns?
A, AnsW'ers will be given using the Accounting 'Division of the
Finance Department as an example. While Table 1 (attached)
contains a detailed response,. the basic reasons for the
changes are:
o 1989-90 Actual is different from Adjusted Budget because
three months elapse bet~een the time the adjusted budget
is reported until year-end.
o The: original Proposed Budget for 1990-91 differs from the
Adjusted Buoget for 1990-91, because the latter includes
compensation plan adjustments and reappropriations. _
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Thp.. original 1991-92 Proposed Budget submitted a year ago
in the t'io-year bud-get document differs froll! that shewn
in the 1991-92 proposed document, because last year's
printed document did not include changes council made to
statt's oriqinal budget submittal. Specifically, Council
added a staff Accountant and ~ssociated non-salary costs
for the implementation of a fixed asset system. Ho'Wever,
every department total for 1991-92 is different from the
two-year budget from a year ago by a total of $104,250.
This amount is to correct for an error in the Cost Plan
methodology prepared by contract ccnsul tants in which
printing and mailing charges ",'ere not allocated to
administrative d4;!partl'nents. The overall budget to!:
allocated charges re:rnains the same CitY'ilde, ho'Wev~r,
with the $104,250 being decreased from the line dep~rt
ments and added to the Administrative departments~
!;Al'I!'AL IMPROVEMENT PRO!lIWl (eIP)
Q: What are the long-term savings from record3 management elP?
A: While the entire City ~as included in the feasibility study
done by Ernst' Young in 1990, the primary focus of the study
was on Support Services in the Police Department and Inspec
tion Services in the Planning Department. These two areas
were identified as the most likely to benefit from records
imagin<J technologies and most !!Ippropriate for tile records
management pilot as proposed in the 1991-92 elP.
Belov is a list of the problems faced by divisions and the
benefit of havinq a records management system:
Suppor" Sgrvices (Po] ice):
Retrieval Records personnel retrieve approximately 30
reports each day for citizens, the court, the district
attorney, the probation department, insurance companies and
other agencies. It takes an average of 30 minutes to search,
retrieve and copy a report. With an imaging system, the time
Would be approximately 10 to 20 seconds. Also, 700 hou~s of
patrol time annually is lost by officers having to locate
records and retrieve the~ for reporting.
Hand.teeS: NCIC GuiCielines -The National Crime Information
Center (NCIC) requires that certain records be available
within ten minutes of the request. This is not al~ays accom
plished under the current manual system, since some cases are
stored in archives and other locations. An optical iroaging
system will allow the department to conSistently meet these
guiCJelines~
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Bpac. aeduction -Savings fer space used to store Pol ice
reports and ethel'" docun;ents are approximately 300 square feet~
Diatributioll -Reports can easi 1y be viewed and distributed to
outlying offices, ~gencies, ~nQ others electronically or
through a fax machine. Police reports can be distributed to
and viewed on-site by, the District Attorney's Office, thereby
reducing ~o~kload by r~cords personnel and the court officer.
The majority of requests for copies of traffic accident
reports come from insurance companies. These reports could be
electronically faxed directly to the companies, resultirlC3' in.
a reduction in retrieval time, copying and mailing costs.
PUrqa Capability -currently, Police staff read each police
report (ll,OOO/year) to determine -whether or not the case
should be purged. Using an optical imaging system, a police
report can be easily purged to ~eet State retention require
ments. Future overtime savings may be realized due to the
decrease in til-r,e needed for this process. The extent of
savings will not be known until the system is implemented~
Inspection services:
Retrieval -Building/Planning Department is a high public
contact area ~ith 80 persons per day requesting information in
person. Files are kept in three locations, fifth fIco::,
Terman School site, and numerous boxes in the ·A~ level cage~
In FY 1989-90, Building Inspection lost two clerical positions
due to budget reducti~ns. One of the mitigating measures to
absorb those losses was the implementation of a records
retrieval syste:rn.. Currently, inspectors and plan checkers are
doing their own retrieving and filing.
Space Reduction -Inspection and structural reports take up
epproxi~ately 600 square feet in th~ Civic Center and at the
Terman School site.
Security
management
stolen~
The lack of security of the current records
systen allows docu~ents to he alte~ed, misplaced or
The savings described above ""ill be recognized ... ithin two
years of implementation~ There are no anticipated beadcount
savings by implementing an image-based records management
system.
Are there future efficiency savings that can bE realized from
the new capital projects proposed for 1991-92'?
A: The c-olf Course Reclaimed Water Supply elP proj ect is expec-ted
to reduce Golf Course 'Water usage approximately '$150,000
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annually; but that savings ~ill be offset somewhat by
increases for electric costs. associi!lted with pumping' the
water, as well as the costs associ!!lted with pump station
repair r~pla~ement.
Explain the priority listing of CIP projects recommended for
delay.
All new and auqmented projects meet the following Council
approved criteri~. The proj ects are necessary due to priority
changes, health or safety concerns, new mand~te5, or signifi
cant changes in the project cost estimat~s.
Projects recommended for delay are those not related to
satety, mandates, or deemed to be essential to begin immedi
ately. They are projects which ~ill cause the least disrup
tion in City service delivery if delayed.
Each project in the Delay One-to-Two Years category was
prioritized for restoration using the following criteria:
fundinq require:nent, safety, impact of delay, ability to phase
or reduce project scope, and operational necessity. For
instance~ the Records Management Project was reduced from t~o
pilot projects to one in order to initiate the project.
The Delay-Indefinitely category ..... as not prioritized. Projects
included in this category were projects ..... hieh delaying
indefinitely would not jeopardize City service delivery and
could be considered for inClusion at a latter date~
DlPMTHEN'l
12: Should qolf fees cover reclaimed ","ater costs?
A; It is anticipated that Golf Course revenues \IIill cover the
cost of implementing a reclaimed water system. The feasibil
ity study prepared by Bartle Wells anticipated that the cost
of the system would be included in the debt issuance for the
Golf Course renovation, to be repaid by Golf Course revenues
over the life of the associated bonds.
Q: Are Golf Course revenues covering all Golf Course costs?
A: Golf Course revenues, by council direction, cover direct
operatinq costs, capital costs, and the debt service obli~a
tion for the City of Palo Alto Colt Course Corporation
$1,800,000 Lease Revenue Bonds, Series 1978. It has not been
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Council policy to require the Golf Course to cover the cost of !..
departmental overhead or ger.eral city overhead. In the pro-
posed 1991-92 budget, revenues are projected to cover all
costs including overhead., due to an S percent increase ir.
green fees and due to budget reductions in deferred mainte-
nance.
Q: How do Palo Alto's golf fees ccmp~re to other local qolf
courses?
A: Below is a comparison of the City of Palo Alto Golf Course
green tees ~ith other public golf courses in the area~ These
comparisons are taken from the May 1991 Golf Course Capital
Project Feasibi lity Study, as prepared by Bartle Wells Associ
ates":
Regular Twiliqht
Course Week-Wee}c-Week-Wee:k:-Senior
day end day end
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San Jose $16.00 $25.00 $12.00 $15.00 $12.00
San Mateo:
Resident 8.50 10.00 7.50 7.50 7.50
Nonresident 9.50 11. 50 7.50 7.50 7.50
santa Clara:
Resiclent 11.00 16.00 6.00 10.00 n/a
Nonresident 14.00 20.00 S.OO 12.00 n/a
Shoreline 29.00 38.00 11.00 17.00 21. 00
(Mountain View)
SUnnyvale
Resident 13.00 17.00 8.50 11. 00 11. 00
Nonresident 14.00 19.00 10.00 13.00 11. 00
Median for Resident 15.90 21. 20 9.00 12.10 12.86
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P310 Alto
1990-91 tees 13.00
1991-92 proposed fees 14.00
CMR: 317:91
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17.00
18.00
8.50
9.00
11. DO
12.00
10.00
10.00
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0: Is there e 'Way to use the Count)" Airport Author ity to help pay
tor the Fire Water rescue c2Ipital eq1lipment?
A:
Q:
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The Fire Department spoke to the Coun~y prior to requesting
furids trom the 1991-92 Capital Improvement Program. At the
present time, t'he county does not have ~dditional funds
available, and does not ~ant to raise thE fees to its users to
collect the funds.
What reductions co~ld be made to the Clerk/Council b~dget in
order to restore sense minutes for committee and/or Council
meetings?
To restore $28,600 for sense minutes, the city Clerk's office
recommends the following reductions in the City Council
budget: $21,600 to reduce Council salaries by $200 per month;
$2,000 in ongoinq t.ravel and meeting expenditures; $5; .;)oe in
General Expenses of which $3/000 is a one-time reduction for
replacing the Mayor's Office co~ch and $2,000 is an enqoinq
reduction for receptions, plaques, etc.
Why are Spay and Neuter resident fees proposed to increase
while non-resident fees are not?
The Police Department originally proposed raising only
resident Spay and Neuter fees to simplify the lIppointMent
scheduling process and to help eliminate the problem or non
resident pet o~ners providing false addresses or using Palo
Alto resident friends' addresses. However, upon further
review# staff recommends an increase in non-resident fees as
well. The non-resident increases are as tollo',5:
FROM TO
Cat Spay (femal~) $28.00 $2~.50
Cat Neuter (male) 16.75 18.00
Dog Spay (female) 3B.OC J9~O-:.o
Dog Neuter (Male) J2.00 J4.00
Q~ What addition2ll1 revenue opportunities could we realize through
our Real Estate Division?
A: Althouqh most City property rentals 2IIre beloW' market rate
because the ten~nt either provides a public service or
receives a red'.lction due to Council direction (Senior Center,
Gamble Garden Center, Winter Lodge, artist rentals at
CUbberley), some are at market rate (Foothill College rentals
at Cubberley).
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In April of last year, the Council appro .... ed a policy ....... hich
recognizes all real property o~ned by the City as assets in
terms ot evaluating revenue potential prior to sale, lease." or
granting of any rights.-Steff has contin~ed to proceed, on
Council direction, to identify propertie.s 'With potential
sources ot revemle, analyze these properties, present analyses
to Council, and prepare Requests for Proposal for those
properties identified by Council as potential sites for
development.
Staff, as part of the analysis process mentioned above, tadll
also analyze the City's assets to determine their highest and
best ~se. For example, staff's initial review indicates that
the parking lots in the University and california Avenue areas
have the potential for generating revem.l.e. This could be
achieved through some type of public/private deyelopment
project involving air rights provisions.
Another revenue source is the sale of City easement rights.
EXamples of current staff efforts involve easement rights with
Castilleja School and the P~lo Alto Medical Foundation.
~TION1lL BUDGET REQUE~TS
Below are four items that ",ere not included in the printed
document: armored car piCKUp services; an after-school sports
program, and skateboard facility supervision, all in the Community
Services Oepartment, and special revenue increases in the Refuse
Fund.
o Loomi. &rm~red car easb pick up contraet:
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Contract Services~ •••••••.••....•••••..••••••• ~13,670
"The budget for the armored car pick up service was inadver
tently left out of the 1991-92 budget sub~ittal. This
contract is for cash pickups at various locations in the
Community Services Department.
Recreation Division a~mitlietration of palo Alto Unified! seboel
District (PAUSO) mi44le school after school .ports program for
1"1-92 ,
Contract Services and supplies ...••..••••••••. ~40jOOO
Revenue from Fees and PAUSD rei~burseroents ..•. $40,000
PAUSD has asked Recreation to administar middle school after
school sports program for the scbool year 1991-92. Recreation
~ill charge a fee and pay coaches from fees collected. PAUSD
will pay other costs associated with this program: uniforms
officials, league tees. '
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o 8k.t~bo.r4 facility .uparviaion expensa:
Temporary employee services ................ ~.$44,JOO
Radio equipment expense •••• ~ ...........• ~~4 •• $ l,SOO
Siqnaqe, materials, , other misc. expenses4 •• $ 1,QOQ
Total $47,8QO
This service is to provide monitoring or the skateboard
facility seven days per ~eek during all open hours: 8:00 a.~.
to 8:00 p.ll.
The net General Fund impact of these three items is a further
draw on reserves by $61,470.
o Revenue from PASCO for special pickup service billings:
Special revenue from PASCO .•••.••••••••••.. $300,OOO
This revenue source vas overlooked dlZring the 1991-92 :budget
development. This revenue from p~sco is revenue that PASCO bills
customers for special pickup sE>rvices. The contract with PASCO
states that Palo Alto re~eive5 a 47 percent share of this revenue,
which is estimated to be $300,000 for 1991-92. This change affects
the Refuse Fund by increasing reserves. Th&r&fore, funds reverting
to reserves by year-end 1991-92 total $305,247.
~~~~~~Ubmitted.
/;.~ STEELE ~dget Manager
Jcw-~
XEVIN RIP'~ As~istant Fi nee Director
,I /1/ ~J.<..~ 0<-'-">:1 ' JIDIE FLEHI G tC: As~istant Cit~, Manaq r
\./ ~
CMR:317:91 9
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~ting DiviliOll.. FlDaDce DepI:!"tmt;:bt 0
Explaeaticu of Cbange:t from Two "felr Budget Document
to I9ilHl P,or=~ Budge! Doc.m ...
(2Y"" (Prc:>=d (2 You
Budget 1991-92 Bud",
Do.:u .. ><n~ ~, O<xua>ca~
_123) pogo IS) page 123)
Adj-.u;ted Propoud
lIbd ... Ac-tu,aj IBudS"
1~8~ !Sl8Sl-~ 1990--91
Employee SerYiceI
Alt other ~xpenses
732.19S
70.403
750.252 (1)
52,354 (2)
776,57)
98,788
102,601
I. Changes from Adjwned Budgel 1~!!9-90 to year er.d' .. c:twl Ire
.ttribut.ablc to the &c1: that l moutlui da~ed betwe!ell the
17,,361
time !he adjusted budget was futed until ye,ar cnd (March '0 Jone).
Employee SerVices c.ame irl $18.0J0 over the earlier tludget due to
au overestilIlllte DC vacancies in budr,et cakul.tious.
2. All olher expeW>Ca decreased fron::. Adjwled Budget 10 yea! end
because d~ typi;au)' have uviDgs by year em!.
Somt-no1l-£81ary txpcnse.$ ale er>C\l.mbered ,ad brought forward
into the pext )'ear'. budget. This is the
reason fur '\he mcrease from Ptoposed BM~et to
Acr.iusWd Budget 1990-91101 Doo-salaries (see nc~ 4 below).
3. AI the Lime llIe budget is prc!Jlred. ille compensati<.m in;;ruses
for the foDawin,g year ar= !lol yet factored in. TM Adjusted
Budget therefore. iDcludC1i .i.ncreascs far the salary programs
approved by CoImcil.
4. Adjusted non-salaries iDcrea:;e due 10 t\md~ carried fon.'a rd
from the prior year tor expenses encumbered. This is related
to !be savin,gs in Mtl-sattrie.s at year elld 1959 _oW (note '2 above).
S. CoundJ: .dded funds to lhe AccoWlting budget for implementing
• fix~ ISUlt Iystem. Cosu for. Sla Ff AccCUlltant related" to
this system tobll $72,270, and' were ind1.lded i.e the ~Exhlbil B-
Amecdme-nu \0 the Proposed 199D-92 Budget" schedule,
fJ. Non. sai.rie& ~re also increased $-100,000 by CO\mcilat the b\l.d~t
lIearing ill JUDe 1990 to implement .. fix~ auet .. y"t~m. The
tcmainder of the di.fferenc.e, $9,500, is fot Ul. interns1
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reanoction of prioti.cg .nd mailing charJes to lI1e
Adt!rinistrlti .... e divisions, which bad 'been left out of ilie CDSt PllIn.
The net A1l~te-d Charge' city",ride remained ~han,ged,
(Propocod
1991~
Docomoot
Pi" 11)
Adjusted
Bod-gel
1990--91
802,9)0 (3)
108,431 (4)
9Il ,361
(2 y""
s...,.
Do<:umcI>l.
pogo 12»
I'r.>poced
'BudSet.
Il991 -92
124,926
93,94 )1
~1~,175
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1 99H'2
00=ncnJ
pogo II)
OriginaJ
Budg«
1991-·92
1.7,196 IS)
203 .... 16)
1.100.645
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