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TO:
FltOM:
City of Palo Alto
City Manager's Report
HONORABLE CITY COUNCIL
CITY MAl',AGER DEP AltTMEl'o'T: City jl,fanag~r
9
AGENDA DATE: Nonmbt!" 2!1. 1_ CMR: 501:94
SUBJECT:
REDl'EST
BGdzet ~Ddment 0rdiJ>aD<e approTOl for !be EaJDOtnic
R..,.,..,..,.. ~ Program for Foscal Year 1994-95
Tt~ E<';'{.>TIcrnic Re.:;o'JT(ts ?bi~;\ing p1'C"f:nm i) (l.:TTcllily '-~p;::T.ltjn:; on a :')ix-lnonth b~ldge1
{July -De.ct:'rr1r.er i994). Tnis r.::r"Nl is aC(NilF?nicd by a BI.!dgd ;\men.dm~nt Ordinana
(BAO) to '~lr!unue to ~llp'r-\g! :\1,:) fut:·rin!e end ent' ?dditi{Jf1al haif .. tim~, staff positions, and
regular lcti· ... ities 0f l.he-?fOgrlUn, such as printing, mai\ing, and pubUcation of the final
Economic P.esO\.!rces. PLa.~ dC)(:-u17!enl. for the entire Fisral Yur 1994--95.
SL.aff recommends eil), Council approval of the. accompanying BAO for ctJntinued operation
of the Eccnomic F.ew.m:es funning prognm.
The policy impliC&tio<>.! or ~ <tr1/cgics propo;ed in the Economic Resources Plan (ERP)
IDd !be one year imple.,.."..tion program """" discussed at length at the time of adoption
by City Council. The policy impliC&tioru of staffing such an initiative are somewhat
different, Traditional economic dev(:lopment strategy after! place.!. &: dollar yslue on
ecooomic efforts by attempting to value the anticipated outcome, such as estimating the
poeen ti.l revea .... e stream of attracting a new industry or retail user. or keepi ng a business
in tile community which might otherwise leave with""t such efforts. 'This strategy is
somewhat precarious and, eYen if realized, often subject 10 debate as to what the real value
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is to the community. Evaluation of the "wrter' &Spects of F.conomic Re"",=s Planning
is perlu.ps more pertinent to Palo Alto.
BACKGROUND
Ova the last year, ERP has been actively LnVcHyed in ~ number of economic dc\'clopmen!
efforu. and in such diverse areas as new industry reauitm<n! (Genew-..or COfj>?f'&tion).
oonduit leasing progfllIlls for Digil1'J Equip"",nl Corpontioo. CIty conne.."Iioo (0 the In!ernet.
and neighborhood commercial revitalization (Midtown Mar"" Anllly,i,). A mAjor focus of
Economic Resources P!anrJng hrz..s been devoted to b1J~irrs1. outreach .and pro..'-llcm
resolution. whether it involves permitting facili!lltion or Ei Camino Re.aJ business
re\-;ta\\7..ation.
EXE.C.IDlYE S\.JMMARY
OnJuty ! I, 1994. the City C)ui1ci13dcpkd Lhe En.",-1rT!ic R':;"'lJ«(e-s PLH1. Since it 'ol.',1S lk
first time thaI an economic res.our,'''::~ prugrarn \;E1S ~':h.'pt:,j b~· th:: City. L'"::: :.l&rfing r.!.C('Ds
and typical .:xpenditures were not w~1i known at the tim.: thal the si~-rnor:t.h budg-:t was.
originally developed in February. 1994 (CMR 373:44). Wilh 'ppro".! of <"" "'" .I'U
implementation pla.n on Oct~r I j. 1994, and the experi::n .. c cf t!le pn)gnm thus fu this
year, the specific staffing re.quiremeNs and .~ugge-ste.J {:~peooiturc5 hate become much better
defined.
Staffing requests for the upcoming fiscal year for ERP i""lud< the Mllflltger of Econ<>mic
Resources Planning. one full·time Managemenl A"i,<ant to provide rrofes~ionol and
teChnical expertise. [tOO one half-time Office Specialist to a.s.sis! in cltrica.: and idministrative
duties. The Management Assistant '",ill providt support for coordination, de",clopmcnt, and
implemen.tation IJf a series of economic development acti"itiel outlined in the Economic
Resource. PIan. The Office S",,<ialiSl will provide office coordination and clericol support
for the program.
The ERP implementation program (CMR:464:94) dis:-iJ$So-~J the need fer a dO':ument on iht
City's overall economic policies. Based upon irlfonnal estimates., an &.ddiLiana! 515.000 for
design and prirding is included in tn. propos<4 budget. A moc~-"p of !he brochure will be
brought to Council before it is published ior distribution. n.is amount is the largest non
salary addition to the budget; the remaining increased amount5 are shown on the attached
Budget Amendment Ordinance.
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CMR: SOI:94 &,elof3
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Consultant costs associated with other proposal, in the implementation plan are not known
at thlutage. Staff will keep Council informed of progress in the areas of a Massing Modol
Study for B hotel at El Camino/Page Mill site. the do""ntown street furniture maini.ens..nct!
project and the joint City Manager/City Attorney developmenl review ,tudy. Separate
requests for budget authoriv.ation will be· presented to the City Council when the .. projects
are further developed and if additional funds are necessary for L""ir implementation.
DSCAL IMPACT
The ERP program is requesting that its six-month budget oi SI1O,851 be modified to an
annual vudge! of $212,857 for the Fiscal Year 1994·95. The BAO will impact U,e General
Fund by $112,006. While a precise revenue stream cannot be attributed 10 lht:-outrome of
a.ny particular aspect of the ERP program, the benefits the City enjoys as i3 fes1.Jit of L1e
success of the Economic ResQ.urc~s Planning ?rcgram may wdl Q:Jlwdgh ail C(,sts in t.\~
future.
No environmental assess mem is require,d.
ATIACH'MENTS
Budget Anleudmcnt Ordirumc.e.
PREPAllED BY: Carol L. Jaruen. Mar.':,\ger, Economic Resomc.es Planning
ASSis~t/~,/~anager
CITY MANAGER APPROVAL,: f-+~~::.L,':":::':::Y1():=l(-." .. ------
JUNE{LEN NG
City-M'anger
REVIEWED BY:
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ORDJNANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PAI,O />.LTO
AMENDING THE BlIDGE'l' FOR TH.E FISCAL YEAR 1994 -95
TO PROVIDE AN ADDITIONAL APPROPRL ..... TION FOR
THE CONTINUATION OF THE ECONOMIC RESOURCES PLANNING PROGRAM
WHEREAS r pursuant to Lhe p~ovi8ion9 of Section 12 of Article
II! of the Charter of the City of Palo Alto, the Council on June
20/ .1994 did adopt. a budget for fiscal year 1994-95; and
"h1t""EREAS , the economic future>. of Palo Alto has been a Courll:il
priorj.ty,· and
h"1IEREAS, the Counci 1 adopted i!"J. concept the Ec·:::m~)r:1i.c Resources
Plan on July 11, 1991; and
los'"HERgAS, tb~ Council recognizes the imp:),rt(lnce of irfLp1ementi.r.g
rn..:.:;).ness 01.'.tr(>;~ch and retention programs to ensure the contlO1lo:::d
fi~cal vjabj.lity of Palo Alto; and
h"'HEREAS, the Counci] previollsly appro'.'ed six months of funding
in the Ci ty Manager) 8 budget to conduct tr,€ EC;.'Jnomic ResQtl,}:'ces
Planning Progrdffi for the fi:cst half or fiscal year 1994-95; and
W"rlEPEAS, it is no\-,; <lPPI'opriate to continue funding fo:r the
re,'!lainder of t_he fiscal year;
WHEREAS, thE: position of Manage.!-, Economic Resources, will be
increased from six months' funding to a fuJI year of funding, the
poeition of Program Assistant will be incr.eased from six months'
funding to a full year of funding and will be reclassified to a
Management Assistant, and a r~ew half-t.;.ime: Office Specialist
poeition will be added to the program.
NOW, Th"'EREFORE, the Council of the City of :Palo "_Ito does
ORDAIN as follows:
$E'{"TIQ1~ l. 1.'he sum of One Hundred Twelve Thousand Dollars
($112, 000) is he.!-ehy appropriated to the Economic Resources
Plal"'..ning program in the City Manager's Department in the following
accounts, and the General Fund Budget Stabilization Reserve is
co~respondingly reduced:
A. $92,000 to Salari2s and Benefits;
B. $15,000 to Contract Services;
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C. S4S0 tD Supplies and Materials;
D. $2,GSO to G€'-n!"!",l Expense;
E. $2,500 to R~l~bursements.
Sfen,,!' 2. This transaction .... 111 red\.1c:e the General Fund
S:...:.dqet Stabilization R"!s~nve from $10,14), IS? to $).0,031, IS7 as of
Ncwem:r:--er '28. 19 H .
s .. ;c,rpN J. The attacr.ed Tabl<:-of Organization, as amended to
reflect changes shown in Exhibit A, is hereby approved.
SF:;;'~'nQN ,. As specif l.eO in Section 2.28.080 {a} of the Palo
Ai.t'J ~u.!"..lci9;!1 Cc-de. 2. ': .... 'C'-tr,irds VQt,~ of the City Council is
1."€~\li:t·F:;j \: 0 ad,~;.~t ::his ordinance.
'::;[("T1'(:\.' c,. T:-l"? C'~'.lL.cil 0E t~.(, CLt·:/ 0:' Palo A1Lo he)"(;by finds
u .... 3. ... ~>.(, '(;l' ,:,'_ '::r' (:';: l1"",~s-c!,jir:,'l.n-::e 15 n8~ a. proj',ct under the
~i...E.'.~L._~ .
~l)nlciI'~: Code,
ilccrt '.Jrl.
hBSE1IT :
ATTEST:
Ci t), cl ~rk
no
.:',',. p~·'l"';.,.;,,,d i.r, 's'i2Cl:lOI, 2,C,l.37:" uf tllt:: i,'a}o Alto
r_l!iE 01·.jI. il::;nce ,,::IFill f-e:cc;-;','", effective. I..lpOn
APPROVED:
Mavo't·
APFROVED AS TO FORM;
City AT:. torn("y
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APP!lOVED,
."..,.,---,-,-------City Manager
Director c,f Finance
CITY MANAGER
Administrative SecrefBIy -Confidential
AssisI....1 City Manager
AssistmllO !be City Manager
City Manage,-
Mmagement Assi!>tanl
Manager. Economic Resoun:es
Executive Secretary..conHdential
Office Specialist
Pwgram As~i<;hLr;t
.~dopL
Budge<
1994-95
1.00
1.00
1.00
1.00
0,00
0.50·
t ,l1J)
(I,sn
Q-.5i!_~_
6.50
"Proposed changes for tinai :;[,,\ months of funding for ] 94..:J-9\
Exhibit A
AdjllStrd
B.d~
Chaaga:u 1994-~
1.00
1.00
1.00
1.(I()
0.50. [J .'or)
(), ".(1 I Uu
!111,
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!,.I,_~'il
I .: :' 7.75
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