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HomeMy WebLinkAbout04/14/2009, B4 - STRATEGIC BUDGET DIRECTION counat °°p 4-14-09 j agcnba REpoRt 1®N� , CITYOF SAN LUIS O B I S P O FROM: Ken Hampian, City Administrative Officer Bill Statler, Director of Finance & Information Technology SUBJECT: STRATEGIC BUDGET DIRECTION RECOMMENDATION Approve conceptual budget balancing strategy for 2009-11. REPORT-IN-BRIEF The purpose of this report is to answer two basic questions as we begin preparing the Preliminary Financial Plan for 2009-11: 1. What's the challenge facing us? 2. And what's our strategy for responding to it? Our goal in answering the second question at this point in the process is not to make specific budget decisions regarding revenues and expenditures: there are a number of budget workshops and hearings ahead of us after issuance of the Preliminary Financial Plan in May 2009 for that purpose. And the fact is that there are still many unknowns—both on the revenue and expenditure side—for a"final"plan at this time. However, in preparing the Preliminary Financial Plan, we need "strategic" guidance now from the Council regarding the role that each of the following four basic components should play in balancing the budget for 2009-11: 1. Use of reserves. 2. Revenue additions allowed under Proposition 218. 3. Reductions in the capital improvement plan (CIP). 4. Reductions in operating programs and services. Stated simply, we will not be able to effectively craft a preliminary budget for Council and community review if everything is a variable: we need some "constants" as we strive to arrive at a budget-balancing formula that makes sense, both from a "municipal math" perspective as well as a community service one. In short, we are not asking the Council to adopt the budget—but we are presenting the Council with a recommended path for us to follow in our"budget journey" and asking for its concurrence (or course adjustment) on this strategic direction. What is the challenge facing us? The short answer is that we continue to believe that results from the five-year General Fund forecast presented to the Council in December 2008 are still the best underlying basis for decision-making at this time. While there are likely to be changes by the time the Preliminary Financial Plan is presented to the Council in May 2009, the Decem ber B4` I Strategic Budget Direction Page 2 2008 forecast identified an average annual gap of$10.4 million in 2009-11. As discussed at that time — and as reflected in the sidebar chart — this gap would be much worse without Measure Y revenues: it would rise to about $16 million annually. 2009-14 Forecast Budget Gap $0 While we are better positioned ($2500,000) than many communities to ($5.000,000) deal with this, we are not ($7,500,000) immune to the powerful ($10,000,000) economic forces that are ($12,500,000) driving the largest downturn ($15,000,000) since the Great Depression. We have seen — and will 2009.10 2010-11 2011-12 2012-13 2013-14 continue to see — adverse O Forecast Budget Gap ■Without Measure Y trends in our top three General Fund revenues of sales, property and transient occupancy taxes. Lastly, while the City was spared large budget reductions in the State budget process this year, this is no guarantee that this will continue to be the case: this major threat will continue to hang over us for the foreseeable future. Our Proposed Strategy As a starting point for Council consideration, the proposed strategy in closing the estimated $10.4 million gap consists of the following elements, which are described in more detail later in this report: 1. Reducing reserves. While we recommend retaining these at 20% of operating expenditures due to the many uncertainties facing us, the proposed operating expenditure reductions of $3.1 million reduce the reserve by about $600,000 (or$300,000 on average for 2009-11). 2. Reducing the CIP from 2007-09 levels by$4.8 million. 2009-11 Budget Balancing Strategy- $10.4 Million Gap 3. Reducing operating program costs and related service levels by$3.1 ❑ other ❑Reserve million annually. Revenues 3% 13% 4. Implementing selected new revenues ❑Sale of 610 as allowed under Proposition 218, Monterey including the sale of the house at 610 3% Monterey to the Parking Fund ❑Mutual ad ❑ clP Reimb Reductions ($650,000 for an average annual 4% 47% impact in 2009-11 of$325,000); 11 expanding mutual aid reimbursements Expenditure Reductions:7 / (annual average of$375,000 in 2009- ■operating 11); and other revenues ($1.3 million, 30% of which $1 million come from the cost of service study). M-02 Strategic Budget Direction Page 3 While new revenues do not play the leading role in the proposed budget-balancing strategy, they are nonetheless important in mitigating against even deeper cuts in the delivery of day-to-day services and maintenance of infrastructure and facilities. And as reflected above, these reductions account for almost 80% of the proposed solution. In short, not going forward with the proposed new revenues will mean deeper cuts in operating programs than reflected in the proposed strategy. DISCUSSION Fiscal Outlook Overview Another very tough budget season that would be even worse without Measure Y revenues Just two years ago, we characterized the City's fiscal outlook as the best in many years. This was largely due to the passage of Measure Y in November 2006, which established a general-purpose, '/2-cent City sales tax, combined with an improved local economy, the absence of the threat of more State budget takeaways and stable labor costs. Unfortunately, this is not the case today. The City is facing another very tough budget season. While Measure Y revenues continue to be a bright spot — in fact, without them we would be facing a dire fiscal situation instead of"just" a very tough one— all of the other bright spots have darkened from two years ago. There are several key actors in our fiscal story. However, the most significant is the largest economic downturn since the Great Depression. This results in declines or tepid growth in key revenues while costs=without corrective action—continue to grow. As reflected in the five-year fiscal forecast presented to the Council in December 2008, we are facing a projected "budget gap" of$10.4 annually in 2009-11. As shown in the chart above, this gap would be much worse without Measure Y revenues: it would rise to about $16 million annually. Background: What We've Already Done While the challenges facing us are significant, we are not starting off flat-footed. Based on the City's "six-point" Fiscal Health Contingency Plan (see sidebar), we have had an "early warning" system and general strategy for responding to the alarms. 1. Maintain reserves at policy level. Implementing the Fiscal Health Contingency Plan. In 2. Follow other key budget and June 2008, in light of changing fiscal circumstances, we fiscal policies. began implementing the actions set forth in this plan. Along with other short-term actions, this included a 3. Monitor fiscal health on an hiring "chill." Since December 2008, the City Manager ongoing basis. has turned the"chill"into a hard "freeze." 4. Assess the challenge: short or long-term problem? Based on the six-step Action Plan, we have completed 5. Identify options. "Step 4: Assessing the Challenge" via the five-year forecast and we know that we are facing a gap of about 6. Prepare and implement action plan. b�3 I Strategic Budget Direction Page 4 $10.4 million annually in 2009-11. This leads us to "Step 5: Identifying Options," which is the fundamental purpose of this report. September Budget "Rebalancing"Actions. On September 30, 2008, the Council completed the short-term action steps set forth in the Fiscal Health Contingency Plan when it took formal action to "re-balance" the budget by closing a gap of $4.8 million in the current year. The most significant of these actions was to "freeze" implementation of a new neighborhood patrol program and delete $2.4 million in capital improvement plan (CIP) projects, including $925,000 for street paving. Largely because of these short-term actions, we project beginning 2009-11 with a balanced budget and reserves at policy levels. About"The Gap:" It's Not Static The projected $10.4 million annual gap for 2009-11 is our best estimate of the gap facing us at this time and it provides an important framework for our budget-balancing efforts. However, since the underlying factors driving this gap are not static, the gap itself cannot be static. Accordingly, as noted above, it will most surely change based on better information when we issue the Preliminary Financial Plan in May 2009—and continue to change afterwards. The most likely areas of change include: 1. Sales tax, transient occupancy tax (TOT) and development review revenue estimates. 2. Possible reduction in staffing costs depending on the outcome of discussions with employee groups currently underway. 3. Funding for major City goals and other Council objectives (a separate topic of Council review at the April 14 meeting). 4. Any State takeaways that may occur as it closes an added $8 billion budget deficit, following $42 billion in tough revenue and expenditure budget-balancing actions. While it is certainly possible that factors 1 and 4 could change in a positive direction, current trends and past experience indicate that the opposite direction is more likely. In fact, based on the mid-year budget review presented to the Council in February 2008, further downward adjustments will be made in TOT and development review fee estimates On the other hand, it appears that due to a rigorous internal review of detailed line-item budgets, the "base" operating budget for 2009-11 is likely to be lower than projected in the forecast. Additionally, due to belt-tightening measure, it looks like operating expenditures in the current fiscal year(2008-09) will also be lower than forecast estimates. In summary, even though the gap will change, on an "order-of-magnitude" basis we believe that the December 2008 forecast remains a reasonable basis upon which to define the problem and tailor a responsive strategy. ALI- Strategic Budget Direction Page 5 Key Budget-Balancing Principles The following reflects the key principles used in preparing the conceptual budget-balancing strategy: 1. Meaningfully involve all employees in this process and communicate what's happening. 2. Ensure service reductions are balanced and retain highest priority services. 3. Surface budget reduction options based on service priorities, not vacant positions. While attrition is a helpful tactic, it will not be the only strategy in reducing costs. On the other hand, one of the key purposes of the current "hiring freeze" is to create flexibility in making reductions based on priorities while mitigating the need for lay-offs. Proposed Budget Balancing Strategy The proposed budget balancing strategy consists of the following components: 2009-11 B • • • • Strategy 200311 Budget Balancing Strategy: One-Time Annualized $10.4 Million Gap Reserve600,000 300,000 O Other D Reserve New Revenues Revenues 3% Cost of Services Study 1,000,000 of 610 13% Use of Property O Sale AAontereyerey Sale of 610 Monterey 650,000 325,000 3% Other Uses of Property 60,700 ❑Mutual Aid O clP Mutual Aid Reimbursements 375,000 Reimb Reductions Impoved Cost Recovery 321,700 a% a7% CIP Reductions 4,874,000 Expenditure Reductldns 77% OperatingPrograms 3,145,000 ©Operating Total 10,401,400 30% 'Retains at 20%policy but on lower operating expenditures As reflected above, while reserves and added revenues play an important role, about 80% of the proposed budget-balancing strategy relies upon expenditure reductions. Where Did These Pieces Come From? In putting together the "metrics" of our proposed budget-balancing strategy, we considered a number of sources, including: Community Feedback. As part of the budget process, there has been extensive community involvement through advisory bodies, surveys, letters, budget workshops and the Community Forum. In crafting our proposed budget-balancing strategy, we tried to be very sensitive to what we've heard. On balance, while there is a wide range of varying interests, there is one common thread to the feedback we've received (which is contrary to the conventional wisdom about wanting government to do less). As reflected in the 450 responses we received to our utility billing survey, even when placed in the context of our very tough fiscal outlook, the fact is that almost everyone wants the City to keep doing the same things---or more: more street Bq- 5 Strategic Budget Direction Page 6 maintenance, more open space protection, more public safety, more creek & flood protection, more bikeways,more transit service,more parks. While not scientific, the survey results from the Community Forum are also reflective of this: while interest vanes between categories, in no service area did a majority of respondents want "less;" in fact, in every category, the overwhelming interest was for the "same or Community more." Level of Attention Budget Category (Compared to Current) And there is "scientific" data supporting this Less Same More indication for "same or more" City services. In Public Safety(Police, Fire& a 13 3 the scientific public opinion survey conducted in Paramedic Services) June 2006, 74% of the community rated the Street Maintenance/Paving 2 15 5 City's services as good or excellent (only 4% Traffic Congestion Relief 5 2 15 rated them as "poor"); and this may help explain the more informal results of"more or same." Creek&Flood Protection 4 9 6 Senior Services&Facilities 3 13 4 Council. We have strived to be responsive to the Neighborhood Code results of the Council's goal-setting process. Enforcement 7 s 3 Open Space Preservation 1 7 17 "Front-Line" Employees. We have extensively Downtown involved and engaged our employees throughout Protection/Improvements 1 15 7 the organization, both in communicating the problem and in generating thoughtful solutions. This process resulted in over 650 budget-balancing ideas from employees from all departments in the City. Many of these are reflected in the proposed budget-balancing strategy, and many others are undergoing further review of the "in-the-pantry" ideas that may be brought to bear on challenges facing us in the longer-term. Employee Associations. We have worked very closely with the leadership of our employee associations, and we will continue doing so. They have been very helpful and supportive in this process. And as discussed below, we are in negotiations now with employee groups on compensation issues to further assist in balancing the budget through staffing cost reductions. Department Beads. After receiving budget-balancing ideas from their employees, Department Heads made specific recommendations to the City Manager on those they thought should be strongly considered as budget-balancers for 2009-11. (The criteria we used in making this assessment are discussed below.) In follow-up to this, the Department Heads and the City Manager held extensive discussions on these ideas and reached consensus on the general strategy reflected in this report. CIP Review Team. Along with other coordinating duties, one of the primary responsibilities of this group is to review all CIP budget requests and make recommendations to the City Manager. Its members include the Directors of Public Works, Utilities, Community Development, Parks & Recreation, Finance & Information Technology, Police Chief and Assistant City Manager. The Bq-(o Strategic Budget Direction Page 7 CII' component of the proposed budget-balancing strategy reflects the results of their extensive review in drafting a responsible but significantly reduced CIP. Evaluation Criteria Based largely on the framework set forth in the Fiscal Health Contingency Plan, we used the following criteria in preparing the proposed budget-balancing strategy: 1. Can it be implemented and realistically be relied upon as a budget balancer in 2009-11? 2. Is it within our control to do? 3. Is it reasonable and balanced? Does it reflect shared sacrifice? 4. Is it focused on service impacts and priorities—not an"across-the-board" approach? 5. Is it sensitive to costs and"affordability?" 6. Does it maintain essential facilities, infrastructure and equipment at reasonable levels? 7. How does the"value"compare with the effort? 8. How will we be positioned afterwards for the future? O The Components: Reserves Given the many uncertainties ahead of us, we recommend retaining reserves at our minimum policy level of 20% of operating expenditures. However, as highlighted above, the proposed budget-balancing strategy reflects a reduction in operating expenditures of$3.1 million. Because the reserve is set on a percentage basis and not fixed amount, this results in a lower reserve at 20% of about $600,000. Averaged over the two-year Financial Plan, this results in an annualized contribution in closing the gap of$300,000. O The Components.Added Revenues The following summarizes our revenue recommendations. It is important to underscore that we are not asking the Council to formally approve these added revenues at this time. There needs to be meaningful opportunities for community input and discussion on these, as well as added information such as comparisons with other communities and the impact of these increases on our users. Formal approval needs to follow this added community input and analysis. As such, adoption of any changes should occur concurrently with budget adoption, which is currently scheduled for June 16, 2009. On the other hand, these fees are consistent with the City's adopted user fee cost recovery policies. Moreover, if the Council has serious reservations about any of these proposals, we need to know this now so we do not rely upon some (or all of these) as part of the solution if in fact there is not conceptual majority support to seriously consider them as the budget process goes forward. However, if we do not implement these revenue sources, then our operating programs (and related service levels) will need to be cut even further than reflected in the proposed budget- balancing strategy. Strategic Budget Direction Page 8 In light of the City's tough fiscal situation, we believe that the proposed new revenues are reasonable in avoiding even deeper cuts in essential services. As noted by the City Manager when the results of the cost of services were presented to the Council, we recognize that this is a difficult time to raise fees. On the other hand, without the proposed added revenues, we will need to cut even deeper into our CIP and operating programs. In short, if we do not assess fees where it is reasonable to do so, then general purpose revenues are subsidizing the difference. And this in turn means even deeper cuts in services like police, fire and street maintenance that rely heavily on general purpose revenues and have very limited cost recovery options. The revenue recommendations are all consistent with the City's user fee cost recovery policy; and although they play an important role in the overall budget balancing strategy, they are only about 20% of the solution, with expenditure reductions playing the leading role about 80% of the solution). New Revenue Summa As reflected in the side bar chart and 'mage n 2009.10 2010- Average graph, the new revenues are organized use_of PropeRy__ -- _ 710,000 51:300 385,706 into four main categories: sale of 610 Monterey to Parking Fund 650,000 325,000 Cell Site Lease:Santa Rosa.Park 57,000 58,30057,700 Outsourcing Sale of Surplus Property 3,000 3,000 F 3,000 1. Cost of services study Relinbursemerits,._ 350,600. 400,000 375,000 implementation Mutual Aid Reimbursements 1 350.0001 400,0001 375,000 - --- -- -- Improved Cost Rewvery_ -:_308,800- _ 334,500 321,700 2. Use of City property Appeal Fee 900 1,200 1,100 Pre-Application&Conceptual Review 9,600 9,800 9,800 3. Mutual aid reimbursements Planning&Zoning Inspection 49,600 37,200 43,400 4. Improved cost recovery for services ("Blue Card Inspection") Child Care 55,000 55,000 55,000 not addressed in the cost of services Swim Center 5,400 8,200 6,800 study Golf Course 79,300 114,300 96,800 Permitting Services 5,700 5,700 5,700 Parking Citation Revenue 50,000 50.000 50,000 Cost of Services Study. The results of Administrative Citabons:Open 29,300 29,300 29,300 this comprehensive analysis of service Alcohol Container Violations costs, current cost recovery and added CUPA 23,800 23,800 23,800 revenue potential under current cost cost of serviee§study .. t:o0o,oa0_t:000,000. 1,000,000 recovery policies were presented to the TOTAL 2.388,800 T 1,795.800 1 2,082,400 Council on February 24, 2009. Given New Revenue Summary the current construction environment, we estimated that the implementing the ° htiproved study findings would generate about Cost $1.4 million annually. Recovery 15% While we believe that the study tual findings continue to make sense in the ° Rein b ° Cost of Aidd Reim context of the City's cost recovery 18% Services policies, we have taken a conservative Study approach in estimating added revenues 48% from this study of $1 million. There ° Use of are four reasons for this: Property 19% Strategic Budget Direction Page 9 1. We do not recommend any increases in the multi-family residential inspection fees at this time. This accounts for$95,000 of the $1.4 million estimate. 2. Given the current economic environment, the timing may not be right for full implementation of the study findings. 3. We believe that full cost recovery for development review services is appropriate. However, within that general framework, there is room for interpretation regarding the inclusion of long-range planning costs. As allowed by State law, some communities fully recover their long-range planning costs (such as General Plan maintenance and update) via their review fees, under the concept that new development — even if infill or largely redevelopment — drives the need for long-range planning. Other communities strive to achieve full cost recovery for "current planning" activities but fund all long-range planning activities with general purpose revenues, under the concept that it is the community as a whole that benefits from long-range planning efforts. The City's practice is a hybrid of these two concepts: 25% of long-range planning costs are allocated to development review and included in the cost of services study.. If these were excluded, it would reduce the added cost recovery by about$200,000. 4. Along with reconsidering the "cost base" for development review activities, the Council may want to consider differential cost recovery goals for different types of development review activities (like we do for recreation programs). For example, for several years the Council set the cost recovery goal for planning activities at 45%, where there is greater discretion exercised by policy-makers and thus greater unpredictability in the outcome; versus more technical, ministerial permits in building and engineering, where the Council set recovery at. 100%. There are both administrative and policy challenges with this approach. Accordingly, if the Council is interested in exploring this approach, we would recommend setting narrowly defined differential categories. Lastly, as noted when the cost of services study was presented to the Council in February, in achieving better cost recovery for planning services, we do not recommend an increase in planning application fees; but rather, consistent with our current approach, we recommend recovering these costs at the building permit stage, when there is a tangible, financeable project. We are currently preparing analysis of how the proposed increases in development review fees will affect typical developments in the City, and we hope to present the results at the April 14 meeting. We are also attempting to survey the same sample developments with our benchmark cities. However, because every city accounts for this differently, this will take longer to prepare; but we hope to have the results by the second Council meeting in May. Other Revenue Recommendations. The reasons for recommending these fees are fully detailed in Attachment 1 (Revenue Enhancements). For each of the proposed new revenues sources, Attachment 1 provides: Strategic Budget Direction Page 10 • Revenue Summary • Implementation • Background • Key Assumptions • Existing Situation: Factors Driving the • Practices in Other Agencies (where Opportunity for Change applicable) • Goal and Policy Links • Alternatives • Project Work Completed • Financial Analysis: Basis for Calculating • Program Constraints and Limitations the Fee and Projecting Revenues • Stakeholders Appeal Fees As discussed previously with the Council, this is primarily a policy issue, not a revenue one. Accordingly, distinct from the other revenue recommendations, it warrants added focus and discussion. Initially, staff recommended that an appeal fee, in the same amount, be established for all appeals to the Council in the amount of$250. Currently, the fee is $100 for planning-related issues; and there is no fee for other services, such as tree removals. In the case of tree appeals, we recommend setting the fee at $100, with a fee of$250 for all other appeals. Summary. While this is a difficult time to raise fees, without the proposed new revenues we will need to cut even deeper into our CIP and operating programs. If we do not assess fees where it is reasonable to do so, then general purpose revenues are subsidizing the difference. This in tum means even deeper cuts in services like police, fire and street maintenance that rely heavily on general purpose revenues and have very limited cost recovery options. © The Components. CIP Reductions Detailed information on each specific CIP project request will be included with the Preliminary Financial Plan, and will be the sole focus of discussion at the special budget workshop scheduled for June 9. As such, it is not our intent to fully evaluate the General Fund CIP at this time. However, we do want to get Council concurrence on the underlying approach we plan to take in preparing it: to focus on maintaining what we already have. As discussed above, our goal is to present for the Council's consideration a General Fund CIP that is the lowest possible in reasonably maintaining our existing infrastructure and facilities. The December 2008 forecast assumed an annual General Fund CIP of about $8.4 million. The proposed budget balancing strategy reduces to this to about $3.6 million, for a savings of$4.8 million compared with the forecast. This is certainly less than we had planned in light of passage of Measure Y. On the other hand, it represents a significant increase over the General Fund CIP for several years prior to that. For example, the General Fund CIP budget (excluding fleet replacements) was $1.6 million in 2006- 07. Moreover, as reflected in the work program for the "Infrastructure Maintenance" major City goal, even with limited resources, we are planning a very aggressive "maintenance-oriented" CIP in 2009-11. And as reflected in the "Open Space Preservation" work program, we are recommend continuing to allocate General Fund resources to this goal in leveraging outside funding, albeit at a lower level than in 2007-09. Public Art Policy. The City's public art policy calls for the City to invest 1% of the General Fund construction component of the CIP. Given the fiscal challenges facing us, we do not 3�-I� Strategic Budget Direction Page 11 recommend funding public art at this level. On the other hand, in good times and bad, we require the private sector to contribute '/z% of construction costs towards public art. Accordingly, we recommend continuing to fund public art in 2009-11, but at V2% of construction costs, consistent with private sector obligations. Project Review. The CIP Review Committee evaluated over 200 project requests submitted by departments and has made preliminary recommendations to the City Manager based on the following criteria: • Does it complete an existing project? • Is it mandated by the state or federal government? • Is there significant outside funding for the project? • Is it necessary to address a significant public health or safety concern that cannot be deferred beyond 2009-11? • Is it necessary to adequately maintain existing facilities, infrastructure or equipment? • Was it previously scheduled in the 2007-09 Financial Plan? • Does it implement a high-priority Council goal for 2009-11? • Will it result in significant operating savings in the future that makes a compelling case for making this investment solely on a financial basis? If yes, how can we ensure that these savings will in fact occur? Project Phasing. Based Projects Deferred Beyond 2009-13 on the requests submitted General TIF Proed Fund Fund Total and the City's financial Police Station Remodel:Lower Level $576,000 $576,000 circumstances,the CIP Future Public Safety Facility Site Analysis 37,000 37,000 Review Committee Fire Station Engine Bay Door Safety System 66,000 66,000 Emergency Back-up Generator at Fire Station 4 133,300 133,300 recommended projects Highway 1 Santa Rosa)Gateway Improvements 650,000 650,000 that comprise the lowest, City Hall Entry Steps Replacement 100,000 100,000 responsible General Fund Concrete Street Rehabilitation 1,230,000 1,230,000 CIP. While each project South Higuera Widening:Margarita to Elks 135,000 135,000 270,000 Mid Higuera Widening:Marsh to High 3,800,000 3,800,000 presented a compelling South Street Median Landscaping 510,000 510,000 case for meeting capital New Sidewalk Construction 100,000 100,000 needs, any additional Laguna Lake Dredging 580,000 580,000 capital projects will have Madonna Road at Laguna Lake Improvements 350,000 350,000 Traffic Signal LED Fixture Replacements 40,000 40,000 to be balanced by deeper Traffic Signal Hardware Maintenance 95,000 95,000 cuts in the operating Street Light Monitors 410,000 410,000 budget. Fueling System Upgrades(General Fund Share) 43,200 43,200 Vertical Survey Network 110,000 110,000 In several cases, while a Jennifer Bridge Ramp/Bike Boulevard Connection 260,000 260,000 Park Restroom Replacement:Johnson Park 288,000 288,000 project may have been French Park Playground Shade Structure 40,000 40,000 meritorious, its costs Jack House Elevator Removal 80,000 80,000 relative to the resources Community Gardens Expansion 64,900 64,900 Parks and Recreation Element Update 75,000 75,000 available was so large that Golf Course Master Plan 60,000 60,000 it has been deferred Golf Course Wash Water Recycling Sysem 66,500 66,500 beyond the four-year CIP. Total 1 5,839,900 1 4,195,000 1 10,0341900 134- I Strategic Budget Direction Page 12 Stated simply, given the very remote possibility of funding such a project within the next four years, the CIP Review Committee concluded that including the project at all—even if in year 3 or 4—would convey a misleading picture of the likelihood of the project moving forward. The chart above reflects the projects that are not recommended by the CIP Review Committee for inclusion in the 2009-13 CIP, funded from either transportation impact fees (TIF) or the General Fund. Of these, the following three key projects are especially noteworthy, in light of their desirability versus resource constraints. 1. Mid-Higuera widening. Moving forward with this project in any meaningful way, given our past and current resource commitments to other projects, like the recent Santa Barbara and Orcutt Street widenings and the Los Osos Valley Road/Highway 101 interchange, is simply beyond the resources we can envision being available within the next four years. In fact, given the deferred timeframe for this project, the CIP Review Committee recommends that $543,500 in current TIF funding from the Mid-Higuera widening project be redirected to accomplish the bicycle/pedestrian bridge over Highway 101 in order to facilitate completion of that segment of the Railroad Safety Trail. 2. South Street median landscaping. The medians will be completed by CalTrans soon and will be filled with wood chips until the City installs irrigation and landscaping. This is unlikely to happen within the next four years. 3. Laguna Lake dredging. Dredging Laguna Lake is a very expensive proposition and would require $580,000 for the acquisition of the equipment necessary to dredge. This does not include the costs of additional staffing that would be required. Again, in light of limited resources and other priorities, this work is beyond our foreseeable capacity to fund within the next four years. Possible "Stimulus"Funding in Augmenting the CIP. As discussed in a companion report for the April 14, 2009 Council meeting, the City is "leaving no stone unturned" in pursuing opportunities to use "stimulus" funding in meeting City CIP needs (as well as operating where available and appropriate). It is possible that we may able to offset some of the reduced CIP with "stimulus" funding. Important Caveat. Even with the constrained General Fund CIP, there will still be some "new" projects underway in 2009-11 funded by the enterprise funds, grants and impact fees. The essential distinguishing feature of the recommended strategy is reduced funding for General Fund projects in the 2009-11 Financial Plan. Related to this concept, it should be noted that engineering design, inspection and project management resources may not be significantly affected by this due to the large workloads on the "non-General Fund" projects noted above. However, given our fiscal situation, some reduction in engineering staff resources is likely in 2009-11. e �f1�- Strategic Budget Direction Page 13 O The Components. Operating Budget Reductions After reducing reserves, considering reasonable revenue options and reducing CIP costs to the lowest level possible in reasonably maintaining our infrastructure and facilities, all that's left in balancing the budget is reducing operating costs and related service levels. In this case, assuming that all the other pieces of the budget-balancing pie remain in place, this means cuts in operating costs and service levels of about $3.1 million. As such, we have devoted significant efforts over the past several months in surfacing operating reduction options in all departments. And because operating cuts are the primary variable in our budget-balancing equation, it was essential to surface options that are more than the resulting"target"of$3.1 million. Provided in Attachment 2 are the results this of this process, which identifies $5.1 million in options from all General Fund departments. This includes 38.7 full-time equivalent positions in the General Fund, of which only 13.7 are currently vacant (although we expect added Internal Process for Surfacing Options vacancies in the coming months). Within this list there are a number of very significant In developing the budget-balancing options service reductions. On the other hand, there are to close the$10.4 forecast gap, we followed also creative responses to the times we are a two-step step process: facing, including organizational restructurings. O First, identifying strong candidates for "non-operating budget balancers"such as possible use of reserves, CIP reductions, Organized by department, this summary "non-departmental"revenues and provides the following information for each organization-wide savings. The reserve, CIP option, presented in reverse priority order in reductions and two of the revenue each department: recommendations in this report(cost of ep services study implementation and sale of 610 Monterey)are the result of this first step 1. Affected program within the department. in the process. 2. Description of the option. ®And then surfacing operating budget reduction options to close the remaining gap, 3. Its impact on services. which at that time was$3.8 million. To ensure an array of options, in avoiding 4. Reduction in"full-time equivalent"(FTE) across-the-board cuts, department were staffing for regular and temporary requested to identify$6 million in operating employees. budget reduction options, which were allocated to departments based on their 5. Annual savings in each year. proportional share of the 2008-09 operating budget. Departments were allowed to propose reasonable revenue ideas meeting For several of the options, such as enterprise their assigned targets. fund reimbursement of services provided to All departments met their assigned targets: them for services provided by the Natural the departmental revenue recommendations Resources Protection program, there is no direct in Attachment 1 and the General Fund service impact: it simply reflects better cost operating budget reduction options in accounting. However, for many of the options, Attachment 2 total $6 million. there would be significant impacts, and this is why it is important that we have"non-operating" budget balancers in the mix; and within the operating budget arena, an array of reduction options that is greater than the "net" we're looking 134- 13 Strategic Budget Direction Page 14 for. Otherwise, this would simply be an "across-the-board" exercise that doesn't take into account service priorities. It is important to stress that these are options. It is too soon to make specific recommendations at this time for several reasons: 1. First, do the other pieces make sense? If not, we will have to go deeper than the remaining $3.1 million "target." 2. What is the gap we're trying to close? As discussed above, we will have a better picture of this by mid-May. 3. What role will employee group concessions and resulting staffing cost reductions play in balancing the budget? 4. And we need more time to analyze service impacts and priorities. Again, we plan to address this in the Preliminary Financial Plan. Rigorous Focus on "Base Budgets." In preparing the operating budgets, all departments took a deep look at their operations with a critical eye toward reductions. Wherever possible, departments reduced their "base" budget, with a focus on areas where goods or services were no longer required or there were savings from renegotiating contracts. Two examples include: $97,000 in savings from the recently re-bid janitorial contract in Public Works and $16,500 in funding no longer required for Mardi Gras response based on the Police Department's successful efforts to control this event. Lay-Off Avoidance. As part of our budget-balancing efforts, it is almost certain that we will reduce authorized regular positions at some level. However, this is not the same as laying-off an existing employee, especially if the position is vacant. While we would not recommend staffing reductions based solely on which positions are vacant—this needs to be done on a service impact-priority basis and vacancies are due to serendipity—vacancies do provide added organizational flexibility. And creating this flexibility is the underlying reason for the hiring restrictions that have been in place for the last nine months. While we do not want to be driven by vacancies in reducing costs, it has been our conscious goal to avoid regular staff lay-offs. What if the Gap Gets Worse? As discussed above, this is certainly possible. And even if the"gap"remains at the $10.4 million level by June 2009 when the Council adopts the budget for 2009-11, it can certainly deteriorate after that. The recent Gottshalks' bankruptcy and upcoming store closure is just one example of the uncertain times ahead. While not a specific factor in our projected decrease of"base level" sale tax revenue decreases of 15% between 2008 and 2011 in the December 2008 forecast, the underlying trends that led to this closing were factored into our forecast assumptions. On the other hand, this closure could certainly be the harbinger of even tougher times yet to come. This uncertainty underscores three key factors in our proposed budget balancing strategy: -Bi- /�, I Strategic Budget Direction Page 15 1. We need to keep our reserves at minimum policy levels. They are our first line of the defense in the event of even greater economic downturns or State budget takeaways, 2. This is also why we purposely surfaced more options than the "math" required. These will remain in our pantry and will be available if needed. 3. Lastly, while we plan to lift the "freeze" once the budget is adopted, we plan to leave the "chill" in place indefinitely. This means that Department Heads will be able to fill vacant positions, but only on a case-by-case basis with City Manager approval. Even though we will adopt a structurally balanced budget for 2009-11, the future remains uncertain. We do not want to lapse into a false sense of security about our fiscal future. We need to remain vigilant; and use vacancies as an ongoing opportunity to rethink how we do business. Participation of the Enterprise Funds in this Process The enterprise funds—water, sewer; parking, transit and golf—account for about 40% of the City's financial operations. While the fiscal problems facing the City are in the General Fund, the enterprise funds are also participating in the budget-balancing/expenditure reduction process. In several cases, they are an integral part of the General Fund's balancing strategy for expenditure reductions. With these added costs, there will be added pressure on rates. However, it is our goal through belt-tightening and cost reductions to absorb these costs and to avoid rate increases above what would otherwise have been required. Long Story Short: The enterprise funds are not exempt from budget reductions. And the budget reductions provided in Attachment 2 reflect the operating expenditure reduction options being considered in the Water and Sewer Funds in mitigating rate increases. Stakeholder Involvement The Chamber of Commerce has provided City staff with several excellent opportunities to meaningful discuss the fiscal challenges facing the City, and the role that new fees may play in mitigating (but certainly not preventing) even deeper cuts in day-to-day services and infrastructure maintenance. At this point, we have not received any official response from the Chamber or other business groups on the possibility of fee increases. However, two consensus issues surfaced from our last"round table"meeting: 1. In considering fee increases, the City needs to be focused on the "value-added" that our regulatory reviews provide–ministerial as well as discretionary functions, especially in terms of timely action. 2. The cost of infrastructure– especially but not solely in the form of impact fees–was a much greater concern than processing fees considered in the cost of services study. As property values fall in other locations, there is deep concern that the City's infrastructure fees and requirements have the potential to significantly affect the City's competitive position in the region. �`f-15 i Strategic Budget Direction Page 16 Negotiations Underway with All Employee Groups As the Council is aware, we are in negotiations with all employees associations regarding the role that reasonable reductions in regular staffing costs can play in mitigating service cuts and possible lay-offs. However, it is too soon to report on the progress of these negotiations or the role they may ultimately play in balancing the budget. On the other hand, we need to have the results in place very soon and when we present the Preliminary Financial Plan in May 2009. Next Steps Based on the strategic budget direction that we receive from the Council at this meeting, we plan to finalize preparation of the Preliminary Financial Plan and issue it by May 28, 2009. This will be followed by four budget workshops and hearings. The following summarizes the key next steps for the Council in the 2009-11 budget process: Council Budget Review: Remaining Steps 1. Preliminary Financial Plan overview and General Fund operating programs. June 4 2. General and other non-enterprise fund CIP projects. June 9 3. Enterprise Fund operating programs, CIP projects, revenue and rates(water, sewer, June 11 parking, transit and golf). 4. Continued review and adoption of Financial Plan. June 16 SUMMARY The purpose of this step in the budget process is to present the Council with a conceptual strategy for balancing the budget for 2009-11. Its purpose is not "budget approval:" that process will begin with issuance of the Preliminary Financial Plan in May 2009, with four Council study sessions/hearings to follow before budget adoption. Moreover, there are still too many unknowns—both on the revenue and expenditure side—for a "final' plan at this point in the process. However, in preparing the Preliminary Financial Plan, we need "strategic' guidance from the Council on key pieces of the budget-balancing pie. ATTACHMENTS 1. Revenue Enhancements 2. Operating Cost Reduction Options TABudget Folders\2009-I 1 Financial Plan\Budget Balancing Strategies\Strategic Budget Direction,4-14-09\Agenda Report-April 14,2009.doc I Attachment 1 2009-11 Financial Plan REVENUE ENHANCEMENTS Summary by Function Annual Page 2009-10 2010-11 Average General Government Sale of 610 Monterey to the Parking Fund 2 650,000 325,000 Telecommunications Lease at Santa Rosa Park 4 57,000 58,300 57,700 Community Development Appeal Fee 6 900 1,200 1,100 Pre-Application and Conceptual Review Cost Recovery 9 9,800 9,800 9,800 Planning&Zoning Project Inspection('Blue Card Inspection") 14 49,600 37,200 43,400 Parks&Recreation Improved Child Care Cost Recovery 17 55,000 55,000 55,000 Improved Swim Center Cost Recovery 20 5,400 8,200 6,800 Improved Golf Course Cost Recovery 24 79,300 114,300 96,800 Public Works Permitting Services 29 5,700 5,700 5,700 Police Improved Accounting for Parking Citation Revenue 34 50,000 50,000 50,000 Administrative Citations: Open Alcohol Container Violations 36 29,300 29,300 29,300 Outsourcing Sale of Surplus Property 39 3,000 3,000 3,000 Fire Expanded Mutual Aid Reimbursements 41 350,000 400,000 375,000 Improved CUPA Cost Recovery 44 23,800 23,800 23,800 Total General Fund $1,368,800 $795,800 $1,082,400 Summary by Type Annual 2009-10 2010-11 Average Use of.Pro" er 710,000 61,300 385,700 Sale of 610 Monterey to the Parking Fund 650,000 325,000 Telecommunications Lease at Santa Rosa Park 57,000 58,300 57,700 OutsourcingSale of Surplus Property 3,000 3,000 3,000 Reimburiements_from Other__ encies--,_ _____ ___ , _ _.. . ___ _ 350,000 400,000. _ 375,000 Mutual Aid Reimbursements 350,000 400,000 375,000 Im roved Cost Recoveo LL:"__.308;800 334;500. 321,700 Appeal Fee 900 1,200 1,100 Pre-Application and Conceptual Review 9,800 9,800 9,800 Planning&Zoning Project Inspection('Blue Card Inspection") 49,600 37,200 43,400 Child Care 55,000 55,000 55,000 Swim Center 5,400 8,200 6,800 Golf Course 79,300 114,300 96,800 Permitting Services 5,700 5,700 5,700 Parking Citation Revenue 50,000 50,000 50,000 Administrative Citations: Open Alcohol Container Violations 29,300 29,300 29,300 CUPA 1 23,800 1 23,800 23,800 TOTAL $1,368,800 $795,800 $1,082,400 1 _ 1S " ( - '7 ATTACHMENT 1 SALE OF 610 MONTEREY TO THE PARKING FUND Summary Selling the house at 610 Monterey purchased by the General Fund in 1998 to the Parking is estimated to generate $650,000 in 2009-10. Key Objectives Help balance the 2009-11 General Fund budget through the sale of the property to the Parking Fund. Existing Situation: Factors Driving the Opportunity for Change In 1998, the house at 610 Monterey (Monterey at Nipomo) came on the market. Because this site had been previously identified as a candidate for several possible City uses, the Council approved taking advantage of this opportunity to acquire a strategic Downtown property from a willing seller. Since no specific use was identified for the site at that time, General Fund resources were Since that time, the Council has identified this general area as the next parking structure. Goal and Policy Links 1. Implementation of Major City Goal: Preservation of Critical Services and Fiscal Health Major City Goal. 2. Access and Parking Management Plan 3. Property Management Manual Program Work Completed No significant work has been undertaken. As reflected under"Implementation"below,the next step is to contract for an appraisal to fairly set the market value of the property. Program Constraints and Limitations There are no program constraints or limitations. Implementation Task Date 1. . - 1. Complete appraisal. 6-09 2. Transfer funds for the sale from the Parking Fund to the General Fund 7-09 Key Program Assumptions Estimated sale proceeds are based on a "reconnaissance level' assessment of market value. This should be finalized based on an independent appraisal. Alternatives 1. Do not sell the property to the Parking Fund Given the currently proposed use of this site as a parking structure and the fiscal challenges facing the General Fund, this option is not recommended. 2 ��—lLye ATTACHMENT 1 REVENUE ENHANCEMENTS ...... SALE OF 610 MONTEREY TO THE PARKING FUND 2. Do not perform an appraisal The sale amount should be determined based on independent appraisal of the property's market value. Financial Analysis Revenue Potential Summary New Revenue Description 2009-10 2010-11 Proceeds from sale of 610 Monterey to the Parldng Fund 650,000 Total Potential Revenue 650,000 3 ATTIC � TELECOMMUNICATIONS LEASE AT SANTA ROSA PARK Summary Leasing space at Santa Rosa Park for an additional telecommunications provider will generate$57,000 in 2009-10 and$58,300 in 2010-11. Key Objectives Generate revenue by leasing a City-owned communications space at Santa Rosa Park to a private wireless communications provider. Existing Situation: Factors Driving the Opportunity for Change On December 11, 2001, the Council approved the concept of leasing Santa Rosa Park for wireless communication facilities. As part of that process, the Council also approved the concept of improvements to Santa Rosa Park. These improvements included the construction of a building for communications equipment and storage for the skate and rollerblading program. One room of this new building was reserved by the City for our own potential communications needs. Since that time, the City has not used the reserved communications room. We have been approached by at least one wireless communications provider asking if the City would lease that room, plus space on the existing light poles, which serve as the antennae towers for the cell phone providers. City staff has considered the request and determined that, based on detailed analysis as part of the radio system upgrade, we will not need the communications room for our own purposes in the future. Accordingly, it makes sense to lease it out instead. Goal and Policy Links Implementation of Major City Goal: Preservation of Critical Services and Fiscal Health Major City Goal Program Work Completed A process for issuing a request for proposals (RFP) for wireless communication leases is in place. This process has proven to be an efficient and effective way to handle these leases so the same steps will be used for this lease. A draft RFP has been prepared and is ready for City Manager approval. Program Constraints and Limitations There are no program constraints or limitations. Stakeholders Wireless Communication Providers. These providers have the opportunity to lease the site. City Staff. Community Development, Fire, Parks&Recreation, Police and Public Works are aware of this proposed lease and concur with this recommendation. -4- ATTACHMENT I REVENUE ENHANCEMENTS TELECOMMUNICATIONS LEASE AT SANTA ROSA PARK Implementation Task Pate I. . - 1. Approve RFP and distribute to prospective users 4-09 I. Receive and evaluate proposals 6-09 3. Complete negotiations and enter into Memorandum of Understanding with cell provider 8-09 4. Cell provider completes any terms and conditions required for lease execution 10-09 5. Lease executed and payments begin 1-10 Key Program Assumptions This assumes that wireless communications providers are interested in entering into a lease agreement for the Santa Rosa Park site; and the proposed rent. Alternatives 1. Continue the Status Quo. The communications room at Santa Rosa Park will remain unused. 2. Defer or Re-Phase the Request Deferral of this lease will result in less revenue collected. Financial Analysis Revenue Potential Summary Annual Proposed New Revenue Description Activity Fee 2009-10 2010-11 New Telecommunications Lease-- 57,000 58,300 Santa Rosa Park - - Total Potential Revenue 57,000 58,300 DL(-aI -5- - ATTAtHMENT 1 APPEAL FEE Summary Increasing the appeal fee to recover staff costs will generate approximately $900 in 2009-10 and $1,200 annually thereafter. Key Objectives Partially offset the cost of processing appeals. Existing Situation; Factors Driving the Opportunity for Change 1. Background Before 2003, there was no fee for a planning application appeal. At that time, the City was processing an average of 20 appeals per year. As part of the 2003-05 Financial Plan, the Council adopted an appeal fee to recover a small portion of the costs incurred in processing an appeal. The average planning appeal in 2003 cost (direct and indirect) the City approximately $2,800 to process. Though the Council conceptually approved setting the at $250 initially, fee finally approved by the Council was $100. Because of its low revenue potential (based upon the 2.5%cost recovery level), the adoption of the fee reflected largely a policy decision, not a budgetary one. 2. Current Appeal Fee. The appeal fee has remained the same ($100) since its adoption in 2003. Since that time, the City has averaged 8 appeals per year, a reduction of 12 appeals since the appeal fee was adopted in 2003. However, the cost for processing an appeal has increased to $3,300. An increase to $250 would raise the previous cost recovery level of 2.5%to 7.5%. 3. No Appeal Fees or Non Planning Services. There are no appeal fees for non-planning related services, such as tree removals. Initially, staff recommended that an appeal fee, in the same amount, be established for all appeals to the Council. In the case of tree appeals, we recommend setting the fee at $100, with a fee of$250 for all other appeals. Goal and Policy Links 1. Consistency with User Fee Cost Recovery Policy. Increasing the appeal fee will help recover a portion of the administrative and regulatory costs we are already incurring. 2. Implementation of Major City Goal: Preservation of Critical Services and Fiscal Health Major City Goal. Program Work Completed An analysis of the costs of providing these services has been done. Other comparable cities have been contacted to see if and how much they assess an appeal fee. Practices in Other Agencies All of the cities surveyed had an appeal fee to recover a portion of the cost of services, ranging from$50 to$730. 34 _ Xa- — dTTAC mENT I REVENUE APPEAL FEE County Agencies Current Fee Benchmark City Current Fee Arroyo Grande $250 Davis $200 Atascadero $460 Monterey $50 -$140 Grover Beach $300 Napa $150 Morro Bay $250 Palm Springs $279 Paso Robles $200 Santa Barbara $360 Pismo Beach $730 Santa Cruz $500 San Luis Obispo Count $613 Santa Maria $287 Current Fee Proposed Fee City of San Luis Obispo $100 $250 Tree appeals are recommended to be$100. Program Constraints and Limitations The appeal fee does not recover 100% of the cost of services required to process the application. An increase in the fee amount could deter the number of appeal applications received on an annual basis. Stakeholders Impacts on applicants appealing a decision about their project Historically, the appeal fee represented a small portion (2.5%) of the total cost for processing a fee. By increasing the fee to $250, the cost recovery would increase to 7.5%,well below the City's policy of 100%cost recovery development review. Implementation Task Date 3. Adopt increase infee. 6-16-09 4. Begin collecting fees for new planning appeal applications 9-1-09 Key Program Assumptions This assumes planning application appeal activity continues on past trends based upon an average of 8 appeals per year. Based on this, the revenue projections assume $2,000 (8 appeals at $250) annually, for an increase of $1,200 in additional revenue. No additional staff is needed to implement this request. Alternatives 1. Continue the Status Quo. Leave the appeal fee at $100. 2. Defer or Re-Phase the Request Deferral of the increase will result in a missed opportunity to align the fee with an increase in costs used to processes the appeal. 8�-a3 ATTACHWENT I APPEAL FEE Financial Analysis: Planning Services Calculation of Costs Staffing Costs Position I!-r,ly Rate Time Cost Director of Community Development $198 3.00 $57- Administrative Assistant(CDD) 594AdministrativeAssistant(CDD) 82 4.25 349 Admini strative Assistant(Ci ty Clerk) 82 2.00 164 Development Review Manager 191 3.00 573 Associate Planner 116 14.00 1,624 Total Costs $3,304 Revenue Potential Summary. Annual Proposed New Revenue Description Activity Fee 2009-10 2010-11 Planning Aplication Appeals 8 250 $1,700 $2,000 Offsetting Costs(currentfee is$100) (800) (800) Net Revenue Enhancement $900 $1,200_ No revenue estimates have been made for appeal fees for other services. -8- g�'a � ATTACHMENT 1 REVENUE ENHANCEMENTS PRE-APPLICATION AND CONCEPTUAL REVIEW COST RECOVERY Summary 1. Increasing the analysis done for pre-application reviews will respond to the need expressed by the development review community. Implementing fee to recover staff costs will generate approximately $2,000 annually. 2. Instituting a conceptual review fee will generate approximately$7,800 annually. Formalizing these two applications will improve the development review process by getting more thorough information and direction to the applicant early. 1. A pre-application review is a staff level analysis of a development proposal prior to an application, culminating in a Development Review Team meeting and delivering a checklist to the applicant for use in making the actual application. 2. A conceptual review is a preliminary review by a design review advisory body, usually the ARC, to provide early direction on site planning and building architecture in order to reduce the potential for costly plan revisions later in the process. Key Objectives Provide prospective applicants with the services they desire as they use the City's development review process and to recover the costs incurred by providing these services. Neither the pre-application or conceptual review process is required. These processes are optional and would be provided at the request of the applicant. Larger, more complex projects are the likely candidates for these preliminary reviews. Existing Situation: Factors Driving the Opportunity for Change 1. Staff already provides the pre-application and conceptual review. Staff works with applicants on a daily basis at the counter and on the phone before an application is actually submitted — identifying City policies/standards, determining issues, outlining process, fees, and timing. Occasionally, (10-12 times/year), this pre-application review includes an informal submittal and review of conceptual plans and a meeting of the Development Review Team with the applicant where the proposed development evaluated at a general level. Likewise, about 6-8 times a year, staff will take a conceptual review to the ARC (or CHC) for early feedback and direction. There is now no fee for these preliminary reviews. 2. Developers support paying a fee for the pre-application process. Development review staff representatives hold annual roundtables with the development community. The last two years they have encouraged us to formalize the pre-application process to provide more substantial feedback prior to filing applications for complex projects. The developer representatives this year were strongly in support of paying a fee for this service. For certain projects, developers also find the conceptual review a benefit to get early feedback from the ARC (and/or CHC) to determine if their project is consistent with City policies and standards and to reduce the potential for costly plan revisions later in the process. 3. Formalizing these processes and charging a fee will improve the application process. The applicant will be expected to provide more information in the pre-application phase and staff will be expected to do a more thorough review earlier in the process. The goal is to uncover major issues — "fatal flaws" — regarding the proposed development as early as possible in the process. Similarly, feedback from the ARC in conceptual review will provide early direction to the applicant to incorporate into their detailed application submittal. Staff will need to set the expectations of the applicant that while this early feedback constitutes a more i ATTACHMENT I REVENUE ENHANCEMENTS PRE-APPLICATION AND CONCEPTUAL REVIEW COST RECOVERY thorough first step that it does not take the place of the complete review done by staff once the full application is submitted. 4. Most other comparable cities have a similar process. The pre-application process is common in other California cities (see chart below). The development community is familiar with this process. While, the conceptual review is less common, this is a valuable practice the City has been providing for years with no cost recovery. Goal and Policy Links 1. Consistency with User Fee Cost Recovery Policy. Implementing a pre-application and conceptual review fee will help recover the administrative and regulatory costs we are already incurring. In short, it will not create any new requirements, but simply recognize the efforts and related resources already in place. The pre- application process fee will be credited toward the application fee (if it is filed within 6 months). Since the conceptual review entails a staff report and advisory body hearing, it is not proposed for an application fee credit. 2. Implementation of Major City Goal.Preservation of Critical Services and Fiscal Health Major City Goal. 3. Process Improvement Formalizing these two steps will improve the Development Review Process. Program Work Completed An analysis of the costs of providing these services has been done. Other comparable cities have been contacted to see how (if) they conduct the pre-application and conceptual review processes and what range of fees are charged the applicant. Also, outreach with stakeholders has already been accomplished through the ongoing Development Review Process Upgrade. Practices in Other Agencies Pre Application Process Many cities provide a pre-application process and set minimum fees as needed to recover the cost of services. Jurisdiction Pre-app Pr Description p annmg . evlew Dy p anner Arroyo Grande Yes $500 w/advisory body 2. Meeting with other departments Atascadero No $200 planning 1. Review and meeting Grover Beach Yes $560 all departments 2. Credit towards application within 6 months 1. Standing meeting on Monday Paso Robles Yes No Charge 2.All departments 1. Staff response letter Pismo Beach Yes $400 2. Meeting if requested $500 planning 1. Review by planner San Luis Obispo $1500 w/site visit 2. Meeting with other departments County Yes +other department fees 3. Copy of meeting notes Monterey No 1. Meeting with planner Santa Maria Yes No Charge 2. Referral to other departments San Jose Yes $77-$620 planning 1. Review by Planner ATTACHMENT 1 PRE-APPLICATION AND CONCEPTUAL REVIEW COST RECOVERY City of San Luis Obispo $0 $500 $1000 w/site visit 7 While pre-application process varies from city to city,this proposal is similar to the fee charged by other agencies for comparable services. The proposal includes the tiered approach used by some cities to include a site check. Conceptual Review The conceptual review is not as prevalent a process in other cities as the pre-application process, although it is by no means uncommon. The two comparable cities that have the process formally are Arroyo Grande and Pismo Beach: their fees are$500 and$3,685,respectively. City staff costs are approximately $1,300 for a conceptual review which is 505 of the full Architectural Review Commission (ARC) application fee. Since, the conceptual review involves an additional staff report and an additional advisory body hearing, no fee credit on the application is proposed. Again, this is a long time practice in San Luis Obispo which has added value recently to the Pacific Courtyards, 392 Prado, and Long-Bonetti Ranch proj ects. Program Constraints and Limitations I. The pre-application process does not replace the "completeness" review of the formal application, but is a more thorough early step to uncover as much information as possible before the actual application is submitted. 2. The conceptual review does not result in an action(approval or denial), but provides comments and direction for the applicant to incorporate into the actual application. Staff must continue to make the applicant aware of these fundamental expectations. Stakeholders I. Impact on Applicants. As stated above, outreach with a cross-representation of the development community has already occurred during the ongoing Development Review Process Upgrade round table meetings. The developer representatives were strongly in support of formalizing the pre-application process and instituting a fee for the review. For certain projects,the conceptual review is important and helpful to the applicant. 2. Impact on the Community. The community will benefit from the improved information that is likely to results from these two process improvements. Implementation Task Date 1. Adopt fees 6-16-09 2. Begin collecting fees for pre-application and conceptual reviews 9-1-09 Key Program Assumptions This assumes pre-application/conceptual review activity continues on past trends based upon our more recent projections reflecting the downward trend in development applications. Based on this, the revenue projections y - 11 _ 13q-a a. a ATTACHMENT I PRE-APPLICATION AND CONCEPTUAL REVIEW COST RECOVERY assume: 12 pre-applications a year of which two are not pursued into formal applications (and 10 are credited the full pre-application fee) for an estimate of$2,000 annually in additional revenue (assuming the higher level of review with a site check). It is anticipated that 6 conceptual reviews will be processed each year. Conceptual reviews would be charged $1,300 (one-half the Architectural Review fee) for an estimate of$7,800 in annual additional revenue. No additional staff is needed to implement this request; this reflects cost recovery for efforts already undertaken by staff. Alternatives 1. Continue the Status Quo. We will continue to provide pre-application review with no fee and the conceptual review with no cost recovery. This is not recommended since it is not in compliance with the City's cost recovery policy. 2. Defer or Re Phase the Request. Deferral of the program will miss an opportunity to improve the process and result in less revenue collected. 3. Change the Scope of Request Increasing the proposed pre-application fee, such as by crediting none of the pre-application fee toward the application would not encourage the process and not recognize some of the overlap that occurs with the initial completeness,review of an actual application. Financial Analysis Pre:Application Calculation of Costs* Staffing Costs New Applkation Position_- _ --__—' -- . :Hil Rate Time Cost Building Division $100 1.00 $100 Engineering Division $100 1.00 $100 Transportation Division $100 1.00 $100 Fire Department $100 1.00 $100 Utilities Division $100 1.00 $100 Planner $100 5.00 $500 *includes site check Total Costs $1,000 * The hourly rates were averaged and approximated at $100.00/hour. The tasks of a pre-application are not position specific and the average used above is very close to the actual. In the proposed $500 pre-application, the preliminary plans do not get routed to the other departments, nor are they conducting site visits. It is basically the planner's time - 12- L/ ATTAG?ki "T I REVENUE ENHANCEMEMS PRE-APPLICATION AND CONCEPTUAL REVIEW COST RECOVERY Conceptual Review-Calculation o Costs Staffing Costs New Application Position__ _ _ _ Hrl .-Rate_:: _ Tune_ _— BuildingDivision $100 1.00 $100 Engineering Division $100 1.00 $100 Transporation Division $100 1.00 $100 Fire Department $100 1.00 $100 Utilities Division $100 1.00 $100 Planner $100 8.00 $800 Total Costs $1,300 The conceptual review involves some preliminary feedback from other departments and preparation of a staff report for the ARC by the planner. After conceptual review, the applicant would address the ARC direction and incorporate it into the full ARC application. Revenue Potential Summary A more formal pre-application process will help provide more thorough information earlier in the process before the applicant submits the full application. To encourage the pre-application process and recognize some cost overlap with the initial formal project submittal, the proposal is to credit the pre-application fees to the full application fee. For those pre-applications that never result in a formal application, the Department would recover the pre-application costs by retaining that fee in whole. Again, since the conceptual review involves preparing an advisory body staff report as a separate first step for large, complex projects,there is no fee credit proposed. New Revenue 2009 New Revenue 2010- Description Annual activity Proposed Fee 1 11 Pre-Applications 12 1,000 $12,000 12,000 10 Apps(Full App Credit) 10 $10,000 $10,000 $10,000 ( 2 Apps, no actual application) Subtotal-Pre-Apps 2 2,000 2,000 2,000 Conceptual Reviews 6applications 6 1,300 7,800 7,800 Subtotal-Conceptual Reviews 6 1,300 7,800 7,800 Total Potential Revenue $9,800 $918% - 13 - REVENUE ENHANCEMENTS PLANNING & ZONING PROJECT INSPECTION (BLUE-CARD INSPECTION) Summary Implementing a"blue card"inspection fee will generate$49,600 in 2009-10 and$37,200 in 2010-11. Background. As part of the approval process for issuing a Certificate of Occupancy, all departments are requested to the site to perform a blue-card inspection. For the Development Review Division this will include: 1. Scheduling a time to visit the site 2. Reviewing the project file and becoming familiar with the conditions of approval and determining if there are other features of the design that are consistent with the various elements and plans. 3. Meeting with the project representative, then recording any deficiencies and following up with the applicant to verify the final project is acceptable. This activity is time consuming and is an applicant driven activity that has not been previously accounted for and should be considered as a cost recovery revenue enhancement. Key Objectives 1. Establish a fee associated with inspection of projects that may have special conditions of approval or need other verification of conformance with our Planning and Zoning policies and objectives. 2. Provide cost recovery for the development review division related to enforcement of project conditions. 3. Enable staff to determine which projects the fee will apply to and perform the necessary inspection and follow up with the applicant to verify the final project is acceptable. Existing Situation: Factors Driving the Opportunity for Change 1. In excess of 500 building permits are issued each year. Approximately 200 of these permits require follow up inspections to verify the project has been constructed as designed. On these 200 projects an extra amount of effort is taken to administer our regulations and standards; Development.Review Division staff are required to coordinate final inspections to verify the project is in conformance with our policies, design standards or special conditions of approval. 2. Based on the attached analysis, on average, it will take an Associate Planner approximately 2 hours to administer this service. This includes scheduling the inspection, taking time to become familiar with the project specifics and then collaborating with the project representative in order to grant a final approval. 3. This type of activity has not been captured in the cost of services analysis; it is an activity that is specifically driven by the conditions that are relevant only to certain projects. 4. It is important to the City to have our planning staff verify that projects are actually constructed in conformance with the plans and their project specific conditions of approval. Goal and Policy Links 1. Charging a fee associated with this activity is consistent with the City's User Fee Cost Recovery Policy because it is only charging a fee specific to a project based on the need that is driving it.. 2. Implementation of this fee will help achieve the City's Major City Goal for fiscal health. Program Work Completed Permit history has been analyzed for the past 3 years and it is estimated that approximately 200 permits would require this level of review by the planning staff. Planners concur that on average it would take approximately 2 ' ' ATI L?lJ;H1L'��L.BdG PLANNING &ZONING PROJECT INSPECTION (BLUE-CARD INSPECTION) hours to follow-up with these types of reviews and approvals. Projections of workloads were calculated and estimated revenue enhancements were calculated. Practices in Other Agencies Local and comparable agencies were surveyed and it appears they either incorporate this fee into their planning application fee or it is collected with the building permit fees. County Agencies Current Fee Benchmark City Current Fee Arroyo Grande Incorporated into Davis No Response Existing Fee Structure Atascadero Incorporated into Monterey Incorporated into Existing Fee Structure Existing Fee Structure Grover Beach Incorporated into Napa Incorporated into Existing Fee Structure Existing Fee Structure Morro Bay Incorporated into Palm Springs Incorporated into Existing Fee Structure Existing Fee Structure Paso Robles No Response Santa Barbara No Response Pismo Beach No Response Santa Cruz Incorporated into Existing Fee Structure San Luis Obispo County Incorporated into Santa Maria Incorporated into Existing Fee Structure Existing Fee Structure Current Fee Proposed Fee City of San Luis Obispo $0 $248 Program Constraints and Limitations Project constraints include providing additional programming in the Building Permit program in order to implement the fee based on the project specific needs. Planners will need to provide feedback to Building Division staff in order to trigger the programming and charge the fee only when necessary. Stakeholders Stakeholders would include Community Development staff and applicants with a need for planning inspection prior to occupancy of the building. Planners will need to inform the applicants of the need to provide oversight of their project and ensure the assessment of the fee will occur. Implementation Task Date 1. Adopt fee 6-16-09 2. Upgrade computer program 7-09 3. Implement program 9-1-09 - 15- 3q- 31 UFAd REVENUE ENHANCEMENTS------ -- PLANNING & ZONING PROJECT INSPECTION (BLUE-CARD INSPECTION) Key Program Assumptions We will establish a method to apply the fee to the appropriate types of projects and ensure that monies are credited to the appropriate account. Alternatives 1. Continue the Status Quo. This is not a recommended alternative because we may be subsidizing projects that require special review and follow-up. 2. Change the Scope of Services. There are no intermediate levels of inspection.. 3. Existing Program Evaluation. Planners currently inspect developments that have been given conditions of approval. Because Planners work with the decision making bodies that establish conditions of approval, they are best qualified to determine if a particular condition has been met. Financial Analysis Calculation of Costs Positions Im acted and Other Costs Hourly Rate Hours Cost Associate Planner 115.00 2 230 City Vehicle 18.00 1 18 Total $248 Revenue Potential Summary Annual Proposed New Revenue Description Activity Fee 2009-10 2010-11 Planning& Zoning Project Inspection 200 248 49,600 Planning&Zoning Project Inspection 150 248 37,200 Total Potential Revenue 49,600 37,200 16 �� -3r REVENUE ENHANCEMENTS IMPROVED CHILD CARE COST RECOVERY(SUN `N FUN AND S.T.A.R.) Summary Improving child care cost recovery by increasing hourly rates in alignment with the market from $3.30/hour to $4.00/hour, in an effort will generate an additional$55,000 in revenue annually. Key Objectives 1. Bridge gap between cost of providing service and revenues received. 2. Align with the market rate. Existing Situation: Factors Driving the Opportunity for Change 1. Annually, childcare fees are increased by cost of living; a complete market rate analysis on the cost of childcare has not been done since the program's conception(early 1980's). . 2. Research of childcare costs in San Luis Obispo County concludes that the City's childcare fees are on average noticeably lower. 3. To assist in reducing the gap between childcare revenues and expenses, it is recommended that the fees increase an additional $.60 over the planned cost increase. This increase will realize an additional $55,000 in revenue annually. 4. Increases to the hourly rate will not result in additional costs to the City in terms of operating costs. The recovery rates above are based on user levels remaining at their current levels. Goal and Policy Links 1. Parks and Recreation Element. Policy 4.20.1 The Parks and Recreation Department shall maintain financial practices that are consistent with the City policy and Financial Plan. 2. Parks and Recreation Element. Policy 4.20.3 -Parks and recreation fees will be adjusted as needed to meet the approved level of cost recovery identified in the current Financial Plan. 3. Parks and Recreation Element. Policy 4.20.7 - When possible without reducing services, activities shall be operated as enterprise activities, with the objective that they be financially self-supported, or essentially so. 4. Major City Goal for fiscal health Program Work Completed Research of comparable cities revealed that not only are childcare fees on average noticeably higher than those charged by the City, they also operate on a significantly different fee structure (monthly tuition versus the City's hourly/drop-in rate). However, analysis of user levels over the last 3 years concluded that 70+% of the children receiving care at the City's program do so on a limited, drop-in basis (less than 3 times per week). Based on this analysis,the City will better serve the community with continuing to offer childcare on a drop-in/hourly basis. Information received from the Economic Opportunity Commission, which reimburses the City for over 100 family's childcare expenses, indicates the increased hourly rate will not affect reimbursement rates or co-pays required by families receiving this subsidy. The result being, the families with the most financial need will not be affected by the proposed fee increase. 22 � - 17- ��� .v IMPROVED CHILD CARE COST RECOVERY(SUN `N FUN AND S.T.A.R.) Practices in Other Agencies County Agencies Current Fee Benchmark City Current Fee City of Arroyo Grande Monthly fee: $459 Davis (YMCA) Monthly Fee: $515-$625 City of Atascadero Monthly fee: $456 Monterey $72 weekly fee City of Morro Bay Monthly fee: $285-$380 Napa Not offered through City San Luis Obispo County (All four jurisdictions Palm Springs (YMCA) City of Grover Beach operated by YMCA) Monthly Fee: $3734415 City of Paso Robles Monthly fee: $515 City of Pismo Beach Santa Barbara Monthly fee: $340 Santa Cruz Not offered through City Santa Maria (YMCA) Monthly fee: $220-$410 Ventura Monthly Fee: $328 Current Fee Proposed Fee Converted Monthly Rate City of San Luis Obispo $3.30 per hour $4.00 per hour $480 Market rate as determined by the State of California Department of Education for school-age childcare: Hourly: $7.64/hour Monthly: $602.87 Program Constraints and Limitations 1. There may be a decrease in program participants as a result of the fee increase;however there are very few other options for families needing school-age childcare, 2. The amount of scholarship requests received may increase as a result of families needing additional financial support with the increased fees. Stakeholders Families in need of school-age childcare. We believe the fee increase will have a modest impact on those families who do not qualify for subsidy programs yet are on a fixed income. - 18- f3q'31 REVENUE ENHANCEMENTS IMPROVED CHILD CARE COST RECOVERY (SUN `N FUN AND S.T.A.R.) Implementation Task Date 1. Adopt increased fee July 1, 2009 2. Advertise fees in Fall Activity Guide August 2009 3. Implement new fee increase for the 2009-2010 school year September 2009 Key Program Assumptions 1. Enrollment and participation levels remain consistent with previous years. 2. Number of City scholarships awarded remains consistent with previous years. Alternatives Continue the Status Quo. Continuing at the current rate of$3.30/hour will not bridge the gap between revenues and expenses nor provide services at a reasonable market rate. Financial Analysis Calculation of Costs No additional costs will be incurred for the city as a result of increasing the hourly fee. Description Revenue Expected(14% Total New Revenue__ _ __ _ __ 08-09 Revenues Increase) . Revenues Sun'N Fun/S.T.A.R. ONLY $397,500 452,500 55,000 Total $55,000 - 19- B4�3� fITTACH6 ENT I ' REVENUE ENHANCEMEN-TS IMPROVED SWIM CENTER COST RECOVERY Summary Improving swim center cost recovery by increasing fees associated with lap swimming and recreational swimming for adults, youth and seniors in bridging a portion of the gap between program costs and revenues will generate an additional $5,400 in 2009-10 and $8,200 in 2010-11. This is in addition to the twenty-five cent daily use fee increase scheduled for implementation in September 2009 based on changes in the consumer price index. Key Objectives Achieve a higher cost recovery for the provision of lap swimming and recreational swimming for adults, youth and seniors. Existing Situation: Factors Driving the Opportunity for Change 1. Each year, fees at the pool are increased by cost of living. That being said, in order to facilitate the logistics of handling cash at the pool, the increases are not implemented until the amount reaches an increment of$.25, at which time the fee is raised. Using this method, fees are usually increased at the pool every third year. The last $.25 increase occurred in 2005. In September of 2009, daily use fees are scheduled to be increased by COLA, with the adult rate increasing from $2:50/use to $2.75 and the youth/senior rate increasing from $2.00/use to $2.25. This will result in additional revenue of$5,400 the first year and$8,200 the second year. 2. To assist in reducing the gap between revenues and expenses at the pool, it is recommended that the fees associated with lap swim and recreational swimming increase an additional $.25/use over the planned cost increases. This increase will realize an additional $5,400 in revenue ($10,800 total based on a fifty cent per use increase over current daily rates) for the first fiscal year and $8,200 ($16,400 total based on a fifty cent peruse increase over current daily rates) for the second fiscal year. 3. Increases to daily rates at either level will not result in additional costs to the City in terms of operating costs. The recovery rates above are based on user levels remaining at their current levels. Goal and Policy Links 1. Parks and Recreation Element. Policy 4.20.1 -The Parks and Recreation Department shall maintain financial practices that are consistent with the City policy and Financial Plan. 2. Parks and Recreation Element. Policy 4:20.3 -Parks and recreation fees will be adjusted as needed to meet the approved level of cost recovery identified in the current Financial Plan. 3. Parks and Recreation Element. Policy 4.20.7 - When possible without reducing services, activities shall be operated as enterprise activities, with the objective that they be financially self-supported, or essentially so. 4. Major City Goal for fiscal health Program Work Completed Fee increases based on the cost of services study are scheduled to take effect in September. -20- '3L REVENUE ENHANCEMENTS IMPROVED SWIM CENTER COST RECOVERY Practices in Other Agencies County Agencies Current Fee Benchmark City Current Fee Kennedy Club Members no charge. Guests Monterey Adult $6.50,Youth(5 &under) Fitness $3.00/use $2.25, Youth(6-17) $3.50, Senior(62+) $4.50 Avila Hot Springs Adults $10, all day City of Lompoc Adults $3, Seniors $2:50, Youth Youth/Senior$8,all day (2-12) $2, Youth(13-17) $2.50 Cuesta College Adult, Youth, Senior$3 Santa Barbara $6 All $5 All for residents 5 Cities Swim Club Members $5,Non-members$6 Santa Maria Adult$2.50, Seniors(55-64) (weekdays) Free Members $6,Non-members$7 Youth(under 5)Free, Youth(6- (weekends) 16) $1.25 Seniors(65+)Free SLO County Adults $4, Youth$2 Ventura Adult(10-61) $5, Youth(3-9) $3, Senior(62+) $3 SLO County Adults $4, Youth$2 Current Fee Propose 4 ro osed Fee City of San Luis Obispo Adult$2.75,Youth/Senior$2.25 Adult$3.00, Youth/Senior$2.50 Effective Sept. 2009 Effective Sept. 2009 Program Constraints and Limitations I. Implementing a$.50 per use daily fee increase will not result in additional operating costs to the City. 2. It is possible that a $.50 increase may present hardships for some of the current user base and a drop in uses/revenue could result. It is feasible that a-net increase in revenue will still occur,but possibly not as much as the figures presented above that were based on current user levels remaining the same. 3. The YMCA currently offers access to the pool to their membership base and subsequently pays the City each month at the daily rate for each YMCA member use. A $.50 increase in the daily rate may cause this arrangement to cease. The outcome to this scenario would be more significant to the YMCA in terms of possibly losing membership to Kennedy Fitness, but would also potentially reduce patronage to the pool as well. -21 - a�- 3 � s IMPROVED SWIM CENTER COST RECOVERY Stakeholders 1. The adult, youth and senior daily users to the facility will be required to pay$.50 more per use. 2. The YMCA will be required to reimburse the City for their member usage of the pool at a rate of$.50 more per use. Implementation 1. Adopt fees 6-16-09 2. Submit new daily use rates in the Fall Activity Guide 8-09 3. Begin immediately to publicize the new rates that will be implemented in September, 9-09 2009 Key Program Assumptions 1. The total revenue increases for the first year are based on the assumption that the total use for adults, youth and seniors from September — June of 2009/2010 does not drop from the attendance base from the same time period in 2007/2008: 10,173 adults,5,056 youth, and 6,325 seniors. 2. The total revenue increases for the second year are based on the assumption that the total use for adults, youth and seniors from July 2010—June 2011 does not drop from the attendance base from the same time period in 2007/2008: 14,468 adults, 10,075 youth, and 8,400 seniors. 4. Revenue assumptions are based on the YMCA continuing with their current arrangement for pool use for its members. YMCA use totals are reflected in the user totals provided in numbers 1 and 2 above. 4. The $.50/use fee increase is higher than the rate increase recommended by the cost of services study. The City of San Luis Obispo has traditionally been able to offer affordable lap swim and recreational swimming programs to the community. An increase of$.50/use may be more than many of our user base can tolerate, especially the senior citizen population. 5. A $.50 increase still does not place program costs at a level with other pools in the county and many of our comparative cities. Cost recovery levels for youth and seniors are at a lower level than for adults. Alternatives 1. Continue the Status Quo. The planned increase of$.25 per use, which will be implemented in September, will provide for some additional revenue to the City with little to no consequence in loss of user base. 2. Change the Scope of Request If a less than a $.50 increase is implemented, we maintain status quo as reflected in statement 1 above. If daily rates are increased by more than fifty cents per use, an even greater revenue base could be achieved,but only if the level of use remains the same. -22- ��-3g hTTA REVENUE ENHANCEMENTS IMPROVED SWIM CENTER COST RECOVERY Financial Analysis Revenue Potential Summary Description Annual Activity Proposed Fee New Revenue 2 009-10 New Revenue 2010-11 Daily Use for Adult(Sept.- June) 10,173 $3 .00 $ 2,543 Daily Use for Youth(Sept. -June) 5,056 $250 $ 1,264 Daily Use for Senior(Sept.- June) 6,325 $2 50 $ 1,581 Daily Use for Adult(July-June) 14,468 $3 .00 $ 3,617 Daily Use for Youth(July -June) 10,075 $2 50 $ 2,519 Daily Use forSertior Jul -June 8,400 $2 50 $ 2, 100 Total Potential Revenue I 1 $ 5,388 $ 8,236 2009/10 Adult Youth Senior Users x.25(Sept.-June): $2,543.25 $1,264.00 $1,581.25 Total Additional Revenue= $5,388.00* Users x50(Sept.-June): $5,086.50 $2,528.00 $3,162.50 Total Additional Revenue= $10,777.00** 2010/11 Users x.25(July-June): $3,617.00 $2,518.75 $2,100.00 Total Additional Revenue= $8,235,75*** Users x SO(July -June): $7,234.00 $5,037.50 $4,200.00 Total Additional Revenue= $16,471.50**** * This makes Adult rate-$2.75 and Y/Senior rate-$2.25 *" This makes Adult rate $3.00 and Y/Senior rate-$2.50 *"* This makes Adult rate-$2.75 and Y/Senior rate-$2.25 *"** This makes Adult rate-$3.00 and Y/Senior rate-$2.50 -23 - ��� REVENUE ENHANCEMEirTS IMPROVED GOLF COURSE COST RECOVERY Summary Improving golf course cost recovery will reduce the General Fund subsidy by $79,300 in 2009-10 and by $114,300 as follows: For 2009-10_ Increasing all golf course green fees, except for I0-play cards by $2.00/round and increasing 10- play card rate by $20.00/card will generate an additional $70,000. Increasing push cart rentals, electric cart rentals, driving range ball use by $1.00/use and increasing food and merchandise items by 10% will generate an additional $9,300. For 2010-11: Increasing all golf course green fees, except for 10-play cards by$1.00/round and increase 10-play card rate by$10.00/card will generate an additional $35,000. Key Objectives 1. Close the gap between direct operating costs and revenues to meet the budget and fiscal policy for the golf fund. 2. Continue to provide a program that allows seniors and youth access to affordable golf. Existing Situation: Factors Driving the Opportunity for Change The golf course program, which consists of a 9-hole, executive-style course, is owned and operated by the City of San Luis Obispo. Site amenities are limited with only a putting green, a small driving range, and a pro shop that offers a small amount of merchandise, food and beverages. On the average, there are 40,000 rounds played at the golf course each year with the majority of the rounds played by seniors(30%). In the past three years,there have been several improvements made at the Laguna Lake Golf Course by the City: 1. At the request of neighbors living near Hole#3, work was done to reconfigure the fairway, tee box and green to provide a buffer between the hole and residents ($135,700). 2. Upgrades to the irrigation control system were implemented($45,000). 3. Replacement of the bridge at Hole#6, which was condemned in 2002,was accomplished($107,900) 4. Replacing the barrier netting along Hole #5 for safety and security of nearby residences also took place ($44,600). As a result of these improvements, the course has received a"face lift." An additional hole that was put into play during the construction of Hole#3 will be restored and used as a transition to the new Hole#6 tee, which will be returned to its original configuration , thus create a 10-hole course. With these changes and the construction completed, staff believes that it is the appropriate time to adjust fees. The gap between direct operating costs and revenues received has been around $110,000 annually. The golf course program is very limited in its ability to obtain additional revenue support from other amenities that other municipal, public and private courses have to offer, such as onsite restaurant/bar/banquet facilities and full size driving range. Therefore, most of the revenue has to be generated through green fees. These fees must be balanced with the need to keep Laguna Lake Golf Course competitive with other similar programs in the county. 24 _ I 0 IrM�7 e IMPROVED GOLF COURSE COST RECOVERY Reductions in the golf course operating budget of approximately $30,000 have been made for 2009-10. To effectively close the gap, two things need to occur: 1. Increase the green fees and other associated costs, such as push cart and electric cart rental fees, driving range fees,and food/merchandise sales. 2. Seek two additional cell site providers to lease space on the existing cell site at the golf course, expected revenue - $55,000/year. One provider is anticipated for 2009-10 at a rate of$26,000/year for the fust year. The City will need to issue an RFP for the additional location on the cell tower with an expectation that the lease would be complete by 2010-11. The golf course supervisor is responsible for setting the fees for the push cart and electric cart rentals, driving range balls, and food/merchandise sales. Staff will be raising the fees for food/merchandise sales by 10% and increasing the rental fees and driving range by$1.00/use for an anticipated increase of$9,300. Increasing the green fees would generate $70,000 if increased by$2.00/round in 2009-10. An additional increase of$1.00/round for 2010-11 would generate another $35,000. Figures are based on 35,000 rounds/year as staff is anticipating a downturn in use due to the economy; if the course is able to maintain its average level of 42,000 rounds, the increase will be higher. Goal and Policy Links 1. Golf Fund User Fee Cost Recovery Policy: Golf program fees and rates should fully cover direct operating I osts. Because of the nine-hole nature of the golf course with its focus on youth and seniors, subsidies from the General Fund to cover indirect costs and capital improvements may be considered by the Council as a part of the Financial Plan process, along with the need to possibly subsidize direct operating costs as well. 2. Major City Goal for fiscal health 3. Operating Program Goals — providing a safe and affordable golf experience, particularly for seniors and youth. Program Work Completed Staff has completed a cost comparison with other county agencies, state, local private 9 hole courses and with benchmark cities. Program Constraints and Limitations The increases will be approximately 20%-33% per round for the first year. Staff is anticipating a drop in rounds played as it may be difficult for some golfers, particularly those on fixed income, to continue to play at the golf course. The increase will not recover indirect costs or any capital improvement costs at this time. Stakeholders Golf Course Patrons, Laguna Lake Men's and Ladies' Club members, Golf Course Staff -25 - 644 IMPROVED GOLF COURSE COST RECOVERY Implementation Task Date 1. Increase fees by$2.00/round July 2009 2. Increase cart rentals and driving range fees; mark up food and merchandise sales July 2009 3. Increase fees b $1.00/round July 2010 Key Program Assumptions Fees are based on the assumption that the rounds played will decrease by 10-12% per year. Should the rounds played at Laguna Lake Golf Course remain around the 42,000 round per year average, then the recovery will be higher. Rounds Played—5 Year Summary 2004-05 1 2005-06 2006-07 2007-08 1 2008-09(projected) 40,700 1 42,600 44,600 40,400 1 42,700 Note: 1007-08 rounds played were down due to construction at the golf course, only having 8 holes open for a period of time, and rainy weather. Practices in Other Agencies Comparison for weekend regular green fee rates for 9-hole golf course or 9-hole play on 18-hole course County Agencies Current Fee Benchmark City** Current Fee City of Arroyo Grande * Davis No nine hole rate, $20.00 for 18 holes City of Atascadero * Monterey No municipal run courses City of Grover Beach * Napa $17.00/resident City of Morro Bay * Palm Springs(2 courses) No nine hole rate, $49.00-59.00 for 18 holes City of Paso Robles * Santa Barbara $21.00-23.00/resident discount City of Pismo Beach * No nine hole rate, Santa Cruz $51.00/resident for 18 holes San Luis Obispo County $24.50—Dairy Creek Santa Maria No municipal run courses (Dairy Creek&Morro Bay, $26.50-Morro Bay 18 hole courses) State of California(Pismo $11.00 Ventura $25.00/resident State Beach-9 holes) Sea Pines Golf Course, Los $16.00 Osos(9 holes,privately owned) Monarch Dunes Golf $16.00/12 holes Course,Nipomo (12 hole challenge course -26- �'7 aa :-in-H1711 IMPROVED GOLF COURSE COST RECOVERY Current Fee Proposed Fee City of San Luis Obispo $10.00/round $12.00/round-2009-10 $13.00/round-2010-11 Comparable 18 hole rate: Comparable 18 hole rate: $14.75/round $18.75/round-2009-10 $20.75/round-2010-11 * The City of San Luis Obispo is the only city in San Luis Obispo County that operates a public golf course. **All of the benchmark cities that own golf courses have 18 holes. All benchmark cities that own golf courses have restaurant/banquet facilities and a full size driving range; these operations along with the pro shop are operated by an independent contractor or management company. Most benchmark cities have city staff handle the course maintenance. Alternatives 1. Continue the Status Quo. Rates would increase by consumer price index each year but closing the gap between revenues and direct operating costs could stay the same or grow, which in turn would not achieve the goal of recovering direct operating costs. 2. Defer or Re-Phase the Request. Staff is recommending a phased implementation with the bulk of the increase to occur in 2009-10. The implementation could be implemented in two equal adjustments with the same result after two years. Financial Analysis Calculation of Costs Implementing the increases will not have an effect on staffing workloads. The pro shop staff is scheduled regardless of the number of golfers; therefore no new impacts are anticipated as this is a fee increase. Proposed Fee Increase Weekdays(Mon-Thurs)-Regular $9.00 $11.00 $12.00 Weekdays(Mon-Thurs)-Senior,Youth,Students $7.00 $9.00 $10.00 Weekends(Fri,Sat, Sun Regular $10.00 $12.00 $13.00 Weekends(Fri,Sat, Sun -Senior,Youth,Students $8.00 $10.00 $11.00 Twilight(after 3 m)) $6.25 $8.25 $9.25 Ten Play Card-Regular $77.50 $97.50 $107.50 Ten Play Card-Seniors $62.50 1 $82.50 $92.50 2° 9 holes $4.75 1 $6.75 $7.75 -27- REVENUE ENHANCEMEWS IMPROVED GOLF COURSE COST RECOVERY Revenue Potentia[Summary Current Avg. Projected Proposed New Revenue Description Activity Activity Fee 2009-10 2010-11 Green Fees(2009-10) 42,000 35,000 $ 2.00 70,000 70,000 Green Fees(2010-11) 42,000 35,000 $ 1.00 - 35,000 Push Cart Rentals 2,200 2,000 $ 1.00 2,000 2,000 Electric Cart Rentals 2,100 1,900 $ 1.00 1,900 1,900 Driving Range Ball Use 3,000 2,700 $ 1.00 2,700 2,700 Food/Merchandise Sales- 10% 30,000 27,000 10.00% 2,700 21700 Total Potential Revenue 79,300 114,300 -28 - REVENUE ENHANCEME7NS PUBLIC WORKS PERMITTING SERVICES Summary Improving cost recovery for permitting services provided by Public Works will generate$5,700 annually. Background. The Public Works Department is responsible for a variety of permitting requirements including encroachments into the Right-of-Way and flood zone determinations for insurance purposes. For the Transportation and Development Review Divisions, this includes reviewing traffic control plans for work within the Right-of-Way, separate fees for trash roll-off bins located in the public Right-of-Way, enforcing unpermitted activities in the Right-of-Way and investigating flood elevation and building histories for individual properties. These activities are essential in the delivery of public services but are currently not currently being recovered or fully accounted for in the City's cost of services study. Key Objectives 1. Establish a one-time only fee associated with unpermitted work within the Right-of-Way for back inspection to promote compliance and distribute costs more accurately. 2. Establish a fee for individual traffic control plan review as part of individual encroachment permit issuance. 3. Establish a fee for flood zone determinations performed by the City on behalf of individuals and insurance companies. 4. Establish a specific fee for individual trash roll-off bins located within the Right-of-Way. 5. Provide cost recovery for the Transportation and Development Review Division related to costs not currently covered in the cost of services recovery model and more accurately charge for individual services than the current encroachment permit process. Existing Situation: Factors Driving the Opportunity for Change 1. Over the last three years the Public Works Department averages approximately 260 encroachment permits each year. Approximately 10% of these permits require additional focused work by the Transportation section to determine traffic control is appropriate and safe for working conditions. 2. The Development Review Section of Public Works processes approximately twenty (20) flood zone determinations each year at no charge to the public or insurance companies that request them. 3. Public Works enforces approximately ten (10) unpermitted activities by contractor within the Right-of-Way each year. Additional time is spent on policing this activity and bringing the work into conformance with the permit process. 4. These types of activities have not been accurately captured in the cost of services analysis; they are activities that are specifically driven by the conditions that are relevant only to certain projects. 5. Currently individuals that comply with City's encroachment permit process for trash roll-off bins within the Right-of-Way must pay the minimum fee of$381 for each occurrence. This fee is often more expensive than the actual cost of the roll-off rental and as such there is a high percentage of noncompliance with most homeowners. -29- r3 -�S ' REVENUE ENHANCEMENTS PUBLIC WORKS PERMITTING SERVICES Goal and Policy Links 1. Charging a fee associated with these activities is consistent with the City's User Fee Cost Recovery Policy because it is only charging a fee specific to a project based on the need that is driving it. 2. Implementation of this fee will help achieve the City's Major City Goal for fiscal health. Program Work Completed A review of permit history for the past two years to determine if these activities warrant additional fee consideration to more fairly distribute costs to permit users and to determine if sufficient volume of activity exists to create a specific fee. Projections of workloads were calculated based upon historic work load and estimated revenue enhancements were calculated. Traffic Control Plan review has become an important factor in the City's Traffic Safety Program to help reduce work zone collisions. Practices in Other Agencies A review of comparable agencies indicated that some charge for these types of services and others do not. Program Constraints and Limitations Project constraints include providing additional programming in the Encroachment Permit program in order to implement the fees based on the project specific needs. Stakeholders Stakeholders would include Transportation and Development Review staff, contractors and applicants with a need for higher levels of review prior to working within the Right-of-Way or receiving flood insurance approval. Staff will need to inform the contractors and applicants of the need to provide oversight of their project and ensure the assessment of the fee will occur. Implementation Task Date 1. Upgrade computer program July 2009 2. Implement program J ly 2009 Key Program Assumptions We will establish a method to apply the fees to the appropriate types of projects and ensure that monies are credited to the appropriate account. Currently, the encroachment permit cost for a trash roll-off bin within the Right-of-way is the minimum permit fee of$381 per occurrence. This fee is often significantly higher than the actual cost of renting the trash container. As such, there is a high degree of permit non-compliance within the right of way. Annual permits for this use(for those who do comply) are low, averaging 5-6 per year. Establishing a lower fee to encourage compliance and setting that fee for the actual duration of use of the public Right-of-Way will recover the actual cost of services more fairly and promote compliance with permit and inspection requirements. -30- g 'f � YL t -REVENUE ENHANCEMENTS PUBLIC WORKS PERMITTING SERVICES Alternatives 1. Continue the Status Quo. This is not a recommended alternative because the project specific costs are either not currently being recovered or are being subsidized by other projects that do not require this higher level of review. 2. Defer or Re-Phase the Request This option is not recommended because the project costs are not currently being recovered or are being subsidized by other projects. The revenue collected will continue to be insufficient in supporting overall staff time should the request be deferred. 3. Change the Scope of Request We may choose to implement only part of the proposed fees or change the proposed fees. 4. Implementation in a Different Way. Currently there is not sufficient analysis to determine alternate implementations. The Public Works Department will monitor the assessment of fees and time necessary to perform the activities and will recommend future modifications as necessary. 5. Existing Program Evaluation. These services are currently provided by the City at no cost to the applicants. Depending on the activity levels of each work task the staff time associated with the activity can be very high when construction activities are high. Financial Analysis Calculation of Costs Traffic Control Plan Check Minor Review -Transportation Engineer $ 94.52 0.25 $ 23.63 None Moderate Review - Transportation Engineer $ 94.52 0.50 $ 47.26 $ 25.00 Major Review -Transportation Engineer $ 94.52 2.00 $ 189.04 $ 100.00 Unpermitted Work in Right of Way - Public Works Inspector $ 84.13 1.0 $ 84.13 $ 100.00 Civil Engineer $ 114.88 0.5 $ 57.44 Flood Zone Determination - Civil Engineer $ 114.88 0.5 $ 57.44 $25 Trash Roll-Off Encroachment Permit Technician $ 70.15 0.25 $ 17.54 Public Works Inspector $ 84.13 1.0 $ 84.13 $ 75.00 *Proposed fee is $75forfirst occurrence and$100 week thereafter Fee Assumptions Because the actual volumes of work are not known and some of the work associated with these tasks can be deemed in the public interest, three of the proposed fees have been recommended to be set initially at half the projected cost of the services. The fee for Trash roll-off bins is recommended to be established at 75% of the project cost. The rates may need amendment (or removal) as activity levels are established and the need for additional fee recovery determined. 1. Traffic Control Plan Review,Minor reviews: consist of simple work within the Right-of-Way that will use existing City traffic control standards plans for their work. These plans have been developed for use on non- complex projects to assist applicants and contractors. Costs associated with this type of review are contained within the existing encroachment permit fees. 'f -31 - � ((_ 7 t PUBLIC WORKS PERMITTING SERVICES Moderate Reviews: consist of more complex projects that may partially use current City standards traffic control plans but may need to request slight modifications to the plans specific to their work that need verification from the Transportation division prior to permit issuance. Major Reviews: consist of highly complex projects that can not use current City standards traffic control plans and need to request significant review of proposed work plans specific to their type of work. These reviews usually consist of plans developed by a registered civil or traffic engineer and require a formal submittal process. 2. Unpermitted Work in Right-of-Way Fee,This fee will be a one-time only fee assessed to contractors or individuals that are performing significant work within the right of way that has not been permitted. The costs associated with enforcement and additional time to bring the work areas into conformance with the encroachment permit process are not currently accounted for in the encroachment permit fees or are being subsidized by other compliant permittees. This fee will help act as a deterrent to repetitive illegal work within the right of way that sometimes occurs. 3. Flood Zone Determination Fee. This fee will be a one time only fee assessed for each formal flood zone determination request that is submitted to the City. There will be no cost for public service information requests or counter assistance.The City does not currently have a fee associated with this public service. 4. Trash Roll-Off Encroachment Fee. This fee will be a modification of how the City currently permits and charges for trash roll-off bins in the public right-of-way. The proposed fee will reduce the initial permit fee for trash receptacles (lowering the cost of short term homeowner requests) and will charge fee per week for the continued use of the public right of way. This will encourage permittees to finish work more quickly and remove the containers and will hopefully encourage greater compliance with permit requests. The current permit structure charges a minimum $381 per permit for this use and is often significantly more expensive than the rental of the container by a homeowner. While there will be some offsetting in reduce fees associated with current fee amount, staff anticipates higher levels of permit fee issuance and monitoring with the proposed fee structure that should recover or exceed current fee collected. Trash roll-off bins proposed to use metered parking spaces in the Downtown area will continue to be responsible to pay for parking meter bags during the duration of the encroachment Revenue Potential Summary Because the City has not tracked these permit activities before it is difficult to determine-accurately what revenue may be associated with their implementation. Staff has been conservative in estimating activity volumes and has based estimates on two year prior permit issuances and flood zone determinations. -32- '6-7 — 'I(1� PUBLIC WORKS PERMITTING SERVICES Annual Proposed New Revenue Description Activity Fee 2009-10 2010-11 Traffi Control Plan Review-Moderate 50 $ 25.00 $ 1,250.00 $ 1,250.00 Traffi Control Plan Review-Major 15 $ 100.00 $ 1,500.00 $ 1,500.00 Unperrtvtted Encraochments 10 $ 100.00 $ 1,000.00 $ 1,000.00 Flood Zone Determination 20 $ 25.00 $ 500.00 $ 500.00 Trash Roll-Off Encroachment Initial Permit 25 $ 75.00 $ 1,875.00 $ 1,875.00 Time Extension (per week) 15 $ 100.00 $ 1,500.00 $ 1,500.00 Total Potential Revenue $ 7,625.00 $ 7,625.00 Offsetting Costs 5 peryear @$381 (1,900) (1,900) Net Revenue Enhancement 5,725 5,725 Note: Trash roll-off bins placed in metered parking spaces in the Downtown area will continue to be responsible to pay for parking meter bags during the duration of the encroachment -33 - 6"[ _ Y1 REVENUE ENHANCEMENTS IMPROVED ACCOUTING FOR PARKING CITATION REVENUE Summary Improving accounting for parking citation revenue by allocating parking citations issued by Police Department staff from the Parking Fund to the General Fund/Police Department will generate$50,000 annually. Key Objectives Achieve improved cost recovery for parking citations issued by Police Department staff. Existing Situation: Factors Driving the Opportunity for Change In 2008, Police Department employees, including officers, SNAP employees, and Field Service Technicians, issued over 5,000 parking citations with a fine value totaling approximately$187,800. The employees issuing the citations are funded by the General Fund through the Police Department budget; however, the revenue from the citations is currently going to the Parking Fund. In 2001, Council approved an annual transfer of$4,400 from the Parking Fund to the General Fund to offset costs related to parking enforcement by the Police Student Neighborhood Assistance Program (SNAP), however this amount is now outdated and is no longer adequate. Given that these citations are being issued by Police Department employees, who are funded by the General Fund, we recommend that the revenue generated by these citations remain in the General Fund. Goal and Policy Links 1. Consistency with User Fee Cost Recovery Policy. Appropriately accounting for revenue generated by general fund employees in the General Fund will help recover costs incurred by the General Fund/Police budget. 2. Major City Goal for fiscal health Program Work Completed An analysis of the potential revenue for this change has already been completed in collaboration with the Public Works Direction and Parking Manager. Program Constraints and Limitations There are no significant constraints or limitations. Stakeholders Parking Fund General Fund/Police Implementation This change can start in July 2009. Key Program Assumptions Staffs revenue estimate was based on an average of 5,000 citations issued on an annual basis. -34- SD REVENUE ENHANCEMENrs IMPROVED ACCOUTING FOR PARKING CITATION REVENUE Alternatives 1. Continue the Status Quo. Police staff will continue to issue parking citations and the revenue will continue to go to the Parking Fund. 2. Change the Scope of Request. The Parking Fund can reimburse the General Fund/Police Department for the cost of the Police employees' time spent generating parking citations. Staff estimates this cost at approximately$20,000 per year. Financial Analysis Staff from the Police Department worked with the Parking Manager to develop the revenue estimate. The estimate assumes: 1. 25%non-collection rate. 2. Deduction for court fees. 3. Fee of$2.00 per citation to offset costs to the Parking Fund of processing the citations. 4. Reduction in revenue for citations that are modified or overturned on appeal. 5. Fewer citations will be generated based on the potential loss of Police Department staffing due to budget reductions. Calculation of Costs Total Police Department parking cites(2008) 5,067 Gross citation revenue $187,822 minus 25%non-collection reduction (46,956) minus$10 per cite fees (50,670) minus$4400 existing annual transfer from parking (4,400) fund to general fund Potential Net citation revenue $85,797 Actual 2008 fine revenue from PD Cites $61;594 Variance between net citation revenue and actuals $24,203 "The variance between net citation revenue and actual revenue received is due to some citations being modified to a lesser offense as allowed by law,and the dismissal of citation upon appeal. Revenue Potential Summary Actual Reve ane New Revenue for New Revenue for Annual Received by General Fund 2009-General Fund 201 Description activity Parking Fund 10 11 Parking Citations 2008 5,067 61,594 $50,000 50,000 (Issued by PD) Total Potential Revenue $50,000 $50,000 -35- ✓ / 51 REVENUE ENHANCEMENTS ADMINISTRATIVE CITATIONS FOR OPEN ALCOHOL CONTAINER VIOLATIONS Summary Issuing administrative citations for first offense violations of Municipal Code 9.04.010 (Possession of open containers or consumption of alcoholic beverages in public places) rather than criminal citations will generate $29,300 annually. Key Objectives 1. Reduce the criminal case load for less serious violations.. 2. Reduce the costs associated with officers testifying in criminal court. 3. Recover a higher percentage of costs associated with this violation. Existing Situation: Factors Driving the Opportunity for Change In 2004, Council approved a Safety Enhancement Zone during the period of Mardi Gras; with that came approval for the issuance of administrative citations for certain Municipal Code violations while the Safety Enhancement Zone was in effect,to include the following offenses: Section 9.04.0 10-Possession of an open container in public Section 9.12.050(A) -Noise Violation Section 9.20.050 -Urinateldefecate in public Subsequently, the Council approved the permanent implementation of the use of administrative citations for first, second, and subsequent violations of the noise ordinance and urinating in public ordinance, with a fine schedule of $350/$700/$1,000. Staff is proposing that first offence violations of Municipal Code section 9.04.010, Possession of open containers or consumption of alcoholic beverages in public places, also be processed as administrative citations,and that the administrative fine schedule for a fust offense violation be the same($350). In 2008, Police Officers issued approximately 400 criminal citations for violating Municipal Code 9.01.010 (consumption/possession of alcohol in public). Staff estimates approximately 75%of these citations are for a first offense violation. The current base fine for a first offense violation(within a 12 month period) is $100; however court fees and costs increase the fine to $380. The City receives approximately $79 per citation back from the court for each paid citation. If officers issued an administrative citation for fust offense violations with a fine of$350, rather than a criminal citation, staff estimates a net revenue increase of approximately $29,300 per year. The City would realize all the revenue collected from these fines, rather than only $79 per citation from the criminal court. There would be some increase in staff time for administrative appeal hearings and billing by the Finance Department. In addition, by utilizing the administrative citation process for first offense violations, officers will need to spend less time in court, saving staff time and overtime. This change would result in a reduction in criminal court cases which will benefit other agencies affiliated with the court that must also reduce their budgets. Second and subsequent violations of the ordinance within a 12-month period of time, indicating a pattem of law violations, would still result in a criminal citation and would come under the jurisdiction of the court. Minors (under age 21) who possess or consume alcohol in public would not fall under this municipal code but would rather be issued a citation for violation of state law (California Business and Professions Code section 25662)which would be heard in criminal court. -36- PJ ' REVENUE ENHANCEMENTS ADMINISTRATIVE CITATIONS FOR OPEN ALCOHOL CONTAINER VIOLATIONS Goal and Policy Links 1. Major City Goal for fiscal health 2. Operating Program Goals. Police Administration goal to continue efforts to curb underage and high-risk drinking and reduce the negative impacts associated with this behavior. Program Work Completed An analysis of estimated revenue has been completed. Practices in Other Agencies Staff contacted comparison cities to determine whether or not they had an ordinance addressing open containers of alcohol in public, whether they utilized an administrative citation process for violations, and what the base fine was. All but two of the cities have such ordinances, and the range of base fines reported by staff was $96 to$246, as compared to our City's current base fine of $100. However, staff believes there may have been some confusion regarding the base fine vs. the fine with court fees attached, so these reported figures may not be entirely accurate. None of the agencies contacted utilize an administrative citation process for this violation. Staff is not proposing an increase in fines; rather, a shift from processing a first offense violation as a criminal citation which carries with it a $380 fine ($100 base fine + court fees) to processing such citations administratively with a$350 administrative fine. This shift does not result in an increase in fines for the offender, but does increase revenue for the City. Program Constraints and Limitations Limitations may include incomplete collections due to violators who do not pay the fine. Staff's revenue estimate assumed a 50%level of non-collection. Stakeholders Police and Finance Departments San Luis Obispo Superior Court Implementation =1etment low Administrative Citation fine schedule. July 1, 2009 Jul 2009 Key Program Assumptions This assumes that current trends bases on the quantity of citations issued remains at the same levels. Alternatives I. Defer or Re-Phase the Request This change in procedure could be delayed until later in the Financial Plan. This will result in reduced revenue for the City. 37_ 13V-6-3 s � ADMINISTRATIVE CITATIONS FOR OPEN ALCOHOL CONTAINER VIOLATIONS 2. Change the Scope of Request. The use of administrative citations could be applied to second and subsequent violations of the ordinance, rather than only first offense violations. Staff does not recommend this change. Offenders who violate the ordinance more than once in a 12-month period are more appropriately dealt with in the court system where a Judge can better evaluate their criminal record and order sanctions or programming other than a fine. Financial Analysis Calculation of Costs Calculation of Cites Issued Total 9.04.010 cites(2008) 407 Estimated 1 st offense cites 305 Gross revenue @ $350 per cite 106,750 minus 50%non-collection reduction (53,375) minus cite revenue already received from court @ 79%of base fine($100 fine amount) (24,095) Net Admin Cite Revenue 1 $297280 Revenue Potential Summary Annual Proposed New Revenue Description Activity Fee 2009-10 2010-11 Administrative Citations- Est. 1st Offense 305 $350 106,750 106,750 (Muni Code 9.04.010) - - Total Potential Revenue 106 750 106 750 Offsetting Costs Non-collection rate at 50% (53,375) (53,375) Revenue already received from court 24,095 24,09 Net Revenue Enhancement 29,280 29480 -38- l —� REVENUE ENHANCEMEMS OUTSOURCING SALE OF SURPLUS PROPERTY Summary Using an intemet auction site to sell Police Department surplus property will generate approximately $3,000 annually. Key Objectives Increase efficiency in disposing of surplus property, consequently creating additional storage space at the Police Department. Existing Situation: Factors Driving the Opportunity for Change Currently, the Police Department does not have an efficient way of disposing of items of value that are unclaimed or adjudicated in criminal cases. These items can either be sold or destroyed based on the following criteria: 1. Unsolved Felony Crimes-three years 2. Unsolved Misdemeanor Crimes-one year 3. Items booked for Safekeeping-sixty days 4. Found Property-ninety days 5. Adjudicated Cases Online auction companies, such as PropertyRoom.com which specializes in police auctions, collect such items and remit 50%of the on-line auction revenue back to the City utilizing their services. Staff estimates net revenue at approximately $3,000 per year. Utilizing this type of internet service provides a venue for items to be viewed by over 20,000 visitors daily. Because the company picks up items directly from police department, valuable staff time is saved in transporting and disposing of items to other locations. Goal and Policy Links 1. Efficient practices in use in other cities 2. Major City Goal for fiscal health 3. Operating Program Goals 4. Maintaining infrastructure(maximizing property storage space at Police Department) Program Work Completed Staff is currently researching options for online auction sites, and has contacted other cities that utilize this type of service. If Council approves this request, staff will submit a request to the City Manager to enter into a contract with a selected online auction vendor. Practices in Other Agencies Other area agencies that utilize an online auction site include: Atascadero Police Department, Paso Robles Police Department and the San Luis Obispo Sheriff's Department. Program Constraints and Limitations The department may not receive the anticipated revenue should there be an unanticipated decrease of items available and/or sold on the website. -39- REVENUE ENHANCEMENTS OUTSOURCING SALE OF SURPLUS PROPERTY Stakeholders Police Department Implementation ate 1. Complete research on online vendor options June 2009 2. Submit City Manager Report requesting approval of vendor selection July 2009 3. Begin worldng with online auction site Auzust 2009 Key Program Assumptions The anticipated revenue is based on comparable Police Departments that use this type of service. Alternatives 1. Continue the Status Quo. The department will continue to store property onsite until it is claimed or eligible for disposal. 2. Defer or Re-Phase the Request Staff does not recommend this alternative as the Police Department does not have adequate onsite storage. If the department utilizes this service, revenue will be generated and additional storage will become available. Financial Analysis Revenue Potential Summary* Estimated New Revenue Description 2009-10 2010-11 Online Auction Site for Property 3,000 3,000 *Note: Staff contacted an online auction site used by other agencies in the County, which provided a rough estimate of $5,000 in annual revenue for the City, based on the size of our Police Department. Staff reduced this estimate by 40%in order to be conservative. In 2008, the Police Department processed approximately 7,200 items ofproperty and evidence, an average of 600 items per month. Many of these items will not be eligible for on-line sales. -40- REVENUE 1 EXPANDED MUTUAL AID REIMBURSEMENTS Summary Expanding mutual aid assignments above forecast projections will generate an added $350,000 in 2009-10 and $400,000 in 2010-11. Key Objectives Expand mutual aid assignments by responding the Fire Department's Squad and Wildland fire engine and increasing the number of employees responding out-of—county. Existing Situation: Factors Driving the Opportunity for Change For the past nine years, Fire Department employees have responded to incidents throughout the state and the nation on a mutual aid basis. These responses have generated significant revenues for the City, especially during the last three years. Two causes contribute to the higher net revenues: 1. Increasing number of fires that have need for our personnel. 2. Beginning in 2006-07, the allowable administrative fee and benefit schedule for local agency personnel was altered: we are now allowed to bill for base salary and benefits,plus 50% for overtime. In many cases, not all benefits continue with overtime pay(such as heath and retirement); however, this is the agreed-upon funding formula under our agreement with the US Forest Service (USFS). When combined with 18% administrative cost reimbursements and charges for equipment use, this result in the City receiving an additional $.90 for every"direct dollar"reimbursed. It should be noted that 90% of out-of-county fires responded to by the City's fire personnel are the responsibility of the US Forest Service. During recent years, the Federal Government saved costs by reducing full-time firefighting personnel. This requires the Forest Service to enter into contracts which allow them to quickly mobilize trained personnel from local agencies to respond to fires. There is an opportunity for the Department to increase its revenues by doing the following: 1. At every fire there is a likelihood that a Firefighter will become injured and need to be transported to the hospital. In 2008-09 a situation occurred where USFS asked for the Department's Squad (ambulance) to be used in this capacity. An agreement was entered into whereby the Squad was reimbursed at $42/hour ($1,000/day). The agreement also specified that only San Luis Obispo City Fire Department personnel were to operate the vehicle. As employees can only work a 12 hour shift, four employees were sent. Employees are reimbursed at a portal-to-portal rate regardless of actual hours worked. This squad is unique and is the only such vehicle statewide. USFS was extremely satisfied with the Squad's operations and it will likely be requested to incidents statewide in the future. 2. The City's new Type-3 Wildland Fire Engine is also a specialized piece of equipment that is built to be used on wildland incidents. As it is not part of the Department's front-line complement of equipment, it can also be sent out-of-county with three or four people on-board. It has been outfitted to be Advanced Life Support (ALS) equipped and is now part of the mutual aid resource list. This unit will be called upon and will generate revenues. -41 - REVENUE ENHANCEMENTS EXPANDED MUTUAL AID REIMBURSEMENTS Goal and Policy Links 1. Approved contract with USFS 2. Master Mutual Aid agreement. Program Work Completed An analysis of mutual aid revenues has been done for the past six fiscal years. Practices in Other Agencies Reimbursement practices are similar for all local agencies in California. Program Constraints and Limitations The Fire Department currently has two (and potentially three) Firefighter vacancies. Until these positions are filled, the number of employees able to respond to an out-of-county assignment is reduced. Stakeholders Fire personnel and public we serve. Implementation There are no significant implementation actions: reimbursement agreements are already in place. Key Program Assumptions Fires could be fewer, but this has not been the case for the past decade. Each year fires not only increase in numbers, but in intensity and duration. Alternatives 1. Continue the Status Quo. We will continue to respond out-of-county, but will not bring as much revenues as we could through actively marketing the Squad and the Wildland Fire Engine. 2. Change the Scope of Request We could respond only the Wildland engine, but not the Squad. This is not advisable as the Department has an opportunity to not only help out the USFS and injured Firefighters, but recoup significant funding in the process. _42_ .J 1 REVENUE ENHANCEMENS EXPANDED MUTUAL AID REIMBURSEMENTS Financial Analysis An analysis of the past three years reveals the following: Year Received OT&Expenses Total 2006-07 $945,200 ($557,300) $387,900 2007-08 $1,171,600 ($517,300) $654,300 2008-09 To-Date $2,063,000 ($878,600) $1,184,400 Three-Year Average $742,200 The five-year forecast projected net Mutual Aid revenues of$250,000 annually. Based on the three-year average, we have conservatively estimated an added$350,000 in 2009-10 and$400,000 in 2010-11. -43 - C•ti 1 C C.o =1:• `J REVENUE IMPROVED CUPA COST RECOVERY Summary Aligning the City's "CUPA" (Certified Unified Program Agencies — coordinated programs for hazardous materials regulations such as underground storage tanks) fees with those charged by the County Environmental Health Department will generate$23,800 annually. Key Objectives 1. Comply with a Major City Goal of preserving critical services and fiscal health. 2. Increase revenues to cover the cost of the service,particularly in the Underground Storage Tank Program. 3. Be consistent with recovery of program costs of our parent CUPA Agency. 4. Move the City's CUPA Program toward greater fiscal independence. Existing Situation:Factors Driving the Opportunity for Change At the current fee structure, the CUPA Program is recovering less than half the cost of the services provided. The current cost of providing this service is approximately$193,500 annually: Three-quarters of the Hazardous Materials Coordinator-$165,600 (1,440 hrs. x $115 hr.) One-quarter of the Admin..Asst I -$14,900 (480 hrs. x$31 hr.) Envision Software expenses-$13,000 The Department has underestimated the average time it takes to process, schedule and perform inspections, follow up on violations and complete required reports on underground storage tank facilities. By using the same time estimates as those of the parent CUPA Agency (San Luis Obispo County Environmental Health), the department can recover a greater percentage of the cost for delivering this program. Goal and Policy Links 1. This is consistent with User Fee Cost Recovery Policy 2. These time estimates are adopted by the County CUPA and adjusted to our hourly salary rates Program Work Completed In preparing this analysis,the department compared estimated service delivery times and fees with those of the County Environmental Health Agency, as well as CUPA agencies in Santa Barbara and Monterey Counties. While the fees charged for the Hazardous Materials Business Plan and the Hazardous Waste Program are inline with those of the County, there exists a major deficiency in fees recovered in the Underground Storage Tank Program, California Accident Release Program(CalARP-any facility in which a toxic release could occur which would be harmful to the community, and Tiered Permitting Programs. -44- `r v REVENUE ENHANCEMENTS IMPROVED CUPA COST RECOVERY Practices in Other Agencies Work Item County Fee Current Fee Proposed Fee 1. Underground Storage Tank $957.00/facility $389/tank+$77/each $1,092.00/facility (UST)Annual Renewal additional tank 2. Facility Modification/Minor $898.00/facility $0.00 $1035.00/facility 3. Facility Modification/Major $2,748.00/facility $0.00 $3220.00/facility 4. Aboveground Storage Tank $98.00/tank $77.00/tank $115.00/tank (AST)Annual renewal 5. Tank Installation $3,020.00/facility $1,168/tank $3,565.00/facility 6. Tank Removal $2331.00/facility $739.00/tank $2760.00/facility 7. Closure in place $1178.00/tank $0.00 $1380.00/tank 8. Temp. Closure $933.00/tank $0.00 $1092.00/tank 9. CalArp $928.00/facility $0.00 $1,092/facility 10. Tiered Permitting: $343.00/facility $157.00/facility $402.00/facility Categorically Exempt 11. Categorically Authorized $540.00/facility $310.00/facility $632.00/facility 12. Permit By Regulation(PBR) I $1,249.00/facility $467.00/facility $1495.00/facility All of these fees should be increased to be standard with the County CUPA. The first four occur annually and will result in approximately$23,800 in revenues annually. It is reasonably certain that the other fee increases will also result in increased funding. However, it is impossible to predict when they will be used or how much revenue will be generated. Program Constraints and Limitations As this would be a significant increase in fees to some businesses, there will be some repercussions from that sector. However, if the City were to discontinue this service, these same businesses would be paying a similar amount to County Environmental Health. 1. Staff should engage the community to present the facts to get cooperation from the affected businesses. 2. The conducting of public hearings will also be part of any fee increases. Stakeholders Businesses that store or use hazardous materials, generate or treat hazardous waste and particularly gasoline service stations, as the majority of the underground storage tank program is composed of that industry. Other stakeholder's include City staff who deliver this program and County Environmental Health Department. Also a significant stakeholder is the citizenry of San Luis Obispo who can be adversely affected by a release of hazardous materials or waste should this program not be adequately staffed and funded. Implementation There are no significant implementation steps; these gees can be adopted with the 2009-11 Financial Pln on june 16, 2009. -45- Y�T IMPROVED CUPA COST RECOVERY Key Program Assumptions There are currently 25 underground storage tank facilities in the City. The revenue generated from annual tank renewals is static. The assumptions are that no facilities would be lost. The revenue generated by tank installations and removals,as well as major and minor modifications is very fluid and can vary greatly,year to year. Alternatives 1. Continue to subsidize the CUPA program. 2. Discontinue providing this service, in which case the county will take over the program and charge City businesses similar fees to those recommended.. Financial Analysis Calculation of Costs Positions Impacted and Other Costs Hourly Rate Hours Cost Hazardous Materials Coordinator $115.00 1,440 $165,600 Adminstrative Assistant I $31.00 480 $14,900 Envision Software Program $13,000 Total $193,500 Revenue Potential Summary The chart below shows the potential revenue potential from the underground storage tank and aboveground storage tank programs alone. Additional revenues are possible should there be requests for tank installations of removals. Annual Proposed New Revenue Description Activity Fee 2009-10 2010-11 UST Renewal 25 $1,092 $27,300 $27,300 Minor Modification 5 $1,035 $5,175 $5,175 Major Modification 1 $3,220 $3,220 $3,220 AST 5 $115 $575 $575 Total Potential Revenue $36,270 $36,270 Offsetting Costs(Enter as a negative existing revenue -$12,450 -$12,450 Net Revenue Enhancement $23,8201 $23,820 46 ��^ �2 Attachment 2 2009-11 Financial Plan OPERATING BUDGET SUMMARY Staffing FTE Department Page Temporary I Regular 2009-10 2010-11 GENERAL FUND Council,Administration,City Attorney,City Clerk 2 0.50 1.00 428,300 397,500 Human Resources 14 0.20 144,000 144,000 Finance& Information Technology 22 0.30 3.20 417,000 415,700 Community Development 26 0.25 2.00 280,700 293,200 Parks&Recreation 43 8.55 308,100 308,700 Public Works 56 (1.75) 9.40 1,407,700 1,454,100 Police 73 0.80 10.50 1,428,800 1,536,300 Fire 79 0.70 3.00 1 566,300 1 743,200 Total General Fund 9.55 29.10 4,980,900 5,292,700 WATER AND-SEWER FUNDS. Utilties: Water 94 1.00 5.90 778,400 778,400 Utiltties: Sewer 106 3.90 436,600 436,800 *Full-Time Equivalents ATTACHMENT ? 2009-11 Operating Budget Reuuction Options ADMINISTRATION, CITY ATTORNEY Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 ADMINISTRATION-INCREASED COST RECOVERY $22,100 $22,100 1. Administration Increased There is no service impact. Cost Recovery for Natural However,there is a fiscal impact Resources. The Natural to the Water and Sewer Funds. Resources Program, predominately,the City Biologist and Natural Resources Manager,are involved in a variety of mitigation and monitoring activities resulting from City projects. The use of in- house experts saves the City the significant cost of hiring more expensive consultants. Upon reviewing the work performed for the past two years by Natural Resources and the mitigation and monitoring required for the next two years,staff noted that approximately fifty percent of the Biologist's time is being spent on Utilities Projects. Projects such as the monitoring of the Tank Farm Sewer Lift Project require a substantial amount of involvement by the Biologist(590 hours per year). Also issues regarding the invasive Quagga Mussel have and will continue to require the Biologist's expertise(e.g.building traps for the Quagga,researching methodologies for eradicating the species,and coordinating with other agencies). The City's current Cost Recovery Allocation Plan has direct cost adjustments for Natural Resources program support to the Water Fund at$13,600;the Sewer Fund at$17,000;and Whale Rock Fund at$3,400. Based on the average hours spent on various Utilities Projects were the Natural Resources Program reimbursed at one hundred -2- g�, cL/ ATTACHMERT 7 2009-11 Operating Budget Reauction Options ADMINISTRATION, O. Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 percent cost recovery it would be in the following amounts: Water Fund, $34,700; Sewer Fund, $70,600;and Whale Rock, $6,200. Because these amounts can vary by year, staff recommends sharing the costs equally between the Enterprise and General Funds. Thus the new direct costs recovered are proposed to be as follows: Water Fund,$17,400;Sewer Fund,$35,300 and Whale Rock,$3,400. This results in$22,100 in added cost recovery to the General Fund as a result of work performed by the Natural Resources Program. ADMINISTRATION-GENERAL OPERATIONAL SAVINGS $19,100 $17,100 2. Administration General In order to accomplish these Operational Savings. savings staff will have to be very Through a series of frugal in expending any monies operational savings for general operations. Administration.has further Unexpected events such as reduced spending in general recognitions or ribbon cuttings office expenses and will not be able to be operations. The Department accomplished. The City has also reduced travel and Manager,Assistant City training for the next two Manager,Economic year cycle. Development Manager,and Natural Resources Manager will all have reduced opportunities for training in their respective areas of specialty. This will have a long term effect on the quality of service provided due to the inability to stay abreast of organizational and programmatic innovation. CITY ATTORNEY—GENERAL OPERATIONAL SAVINGS $10,000 $10,000 3. City Attorney Reductions Legal research may take longer $7;500 $7,500 in Equipment,Professional because staff will have to access Organizations,Trips, reference materials from outside Training and Publications, sources,i.e. the County Law and Subscriptions. The Library. Expenses associated -3 - ATTACHMENT ? 2009-11 Operating Budget Reauction Options ADMINISTRATION, O. Staffing FTE IIIIIIIIIIIIIMMI Description Service Impact Temp Regular 2009.10 2010-11 City Attorney Department with unexpected legal research as has been able to reduce its a result of litigation could arise. expenses further by eliminating the replacement of a fax machine,reducing membership dues,and reducing the number of outside meetings and educational sessions attended. The Department's most significant reduction of $5,700 comes from a more focused replacement of materials in the City's law library. 4. Reduced Legal Services. Depending upon litigation $2,500 $2,500 Minor litigation matters will volume there could be minor be handled in house service delays in the City resulting in a$2,500 Attorney's office since litigation reduction for contract legal is deadline driven and must be services. given priority over other matters. CITY CLERK—GENERAL OPERATIONAL SAVINGS $32,300 $31,000 5. Furniture and Equipment. Staff will replace equipment on a $9,600 $7,600 The City Clerk has been able less frequent basis. The deferral to reduce several operational of the scheduled scanner costs. Those include: office replacement may reduce furniture/equipment,office efficiencies during busy times supplies,scanning, but staff will accommodate the publications,and service impact. subscriptions. 6. Reduced Printing and There will be no service impact $7,200 $7,200 Advertising. The Clerk's to the public as hard copies of office will print a minimal materials will continue to be number of Agenda packets available. City departments will and other materials with the be responsible for obtaining public and staff encouraged documents online. This to review e-documents. programmatic change promotes Advertisements for various sustainability by reducing the Clerk items will be City's paper printing usage. redesigned to use less space. 7. Reduced Broadcast Should unexpected special $5,500 $5,500 Contract Services. These meetings arise,this service can services are presently be provided,however additional contracted for with KCBX funds will have to be found. and Matrix Mobile for Channel 20 broadcasting. The contract amount has been reduced assuming there will be minimal special -47 � �� ATTACWIA1:WT 2009-11 Operating Budget Reauction Options COUNCIL, ADMINISTRATION, • - : CITY CLERK Staffing FTE Description Service Impact Temp Regular 2009.10 2010-11 meetings held at offsite locations. 8. Council Events. Council Council and staff will need to $3,400 $3,400 meals for meetings starting "brown bag"it on occasion. This prior to 7:00p.m. will be may reduce opportunities for eliminated. The Mayor's advisory body chairs to network Quarterly is proposed to be and exchange information with eliminated. The annual Council members and each other. Advisory Body Dinner is recommended to be reduced to a recognition event rather than a dinner. 9. Reduced Training. This will reduce the number of $6,200 $5,700 Because of transitions in the staff members who are able to Clerk's office,fewer staff receive specialized training in will attend various trainings. City Clerk matters. It could In the past,a consultant has result in slower response times been used for training City by the Clerk as staff transitions advisory body members. occur. The City Clerk and City This is proposed to be Attorney can develop materials eliminated along with a necessary to train advisory body reduction in materials members however it will add to provided to new advisory program workloads. body members. 10. Elections. Election This should have minimal $400 $1,600 materials will be reduced service impact.to the public. slightly and more reliance on This programmatic change e-documents will occur. promotes sustainability by reducing the City's paper printing usage. ADMINISTRATION-_CONTRACT"SERVICES $60,500 $60,500 11. Administration: Creative There is no direct service impact. $25,000 $25,000 Mediations Contract. In There is however a programmatic 2008,on a trial basis,the change. If such services are City created a"master" required will have to be contract with Creative contracted for separately rather Mediations to assist with a than as part of a larger variety of facilitation needs. facilitation effort. At the time,there were a series of"hot button"items which required added facilitation and mediation resources,for instance Mitchell Park parking. The services provided have been highly beneficial to the organization;however this service can still be obtained 1�7— ATTACHE T 2009-11 Operating Budget Reauction Options ADMINISTRATION,COUNCILi CITY ATTORNEY ; CITY CLERK Staffing FTE IIIIIIIIIIIIIMMI Description Service Impact Temp Regular 2009-10 2010-11 on an as needed basis. Rather than establishing a master contract for anticipated,but not guaranteed to materialize needs,staff recommends contracting on a case by case basis. 12. Natural Resources: The reduction to ECOSLO's $17,500 $17,500 Environmental Center of basic contract with the City will San Luis Obispo County have minimal service impacts to (ECOSLO)and General the City. Fewer appraisal-related Consultant Services. This expenses are anticipated with a reduces the contract with reduced open space acquisition ECOSLO by$7,500. program. Further,because fewer appraisals and less printing are anticipated this will be reduced. 13. Economic Development: The Economic Vitality $18,000 $18,000 San Luis Obispo County Corporation is proposed to be Economic Vitality returned to its initially budgeted Corporation(EVC)and contractual level. Staff does not General Consultant anticipate any impacts to service Services. The contract with levels resulting from this change the EVC is proposed to be in the City's contribution. The reduced by$5,000 and need for consultant services general consultant services related to complex development by$13,000. This reduction activities is expected to decline is possible with the due to the economic slow down. program's re-orientation and No service impact is anticipated. with the slow down in development projects as a result of the Recession. ADMINISTRATION-.COUNCIL $7,700 $7,700 14. Council. The City Based on past spending practices Council's Budget is a part of a service impact is not Administration's overall anticipated. budget. Because past usage has been so minimal,the City Business Allowance for each Council member is proposed to be reduced in the amount of$1,200 and $1,800 for the Mayor for a total reduction of$6,600. Additionally,the Council's office supply and equipment budget has been eliminated. Necessary costs will be covered under -6- 2009-11 Operating Budget Reauction Options COUNCIL, ADMINISTRATION, ATTORNEY Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Administration's general office supply and equipment budget realizing an additional savings of$1,100. ADMINISTRATION—VENTURES AND CONTINGENCIES $10,000 $101000 15. Administration. To reflect This will reduce the City the economic strain the Manager's ability to respond to organization is presently new initiatives or unexpected under the City Manager's circumstances which arise during Ventures and Contingencies the fiscal year. fund is proposed to be reduced by$10,000. This Fund allows for the City Manager to assist in funding unexpected costs and new small scale initiatives which invariably arise during the course of a year in an organization of our size. ADMINISTRATION COMMUNITY PROMOTIONS $91,400 $73,900 16. Community Promotions. With the advent of the TBID,the With the formation of a manner in which the City is Citywide Tourism Business being promoted as a Tourist Improvement District destination has changed (TBID)the Promotional dramatically. With this change Coordinating Committee there has been a significant (PCC)has reconsidered increase in staffs workload. The recommended budget Principal Administrative Analyst allocations for Community is now serving as the staff liaison Promotions. The PCC has to both the PCC and the TBID. recommended a program The Principal Administrative focused on internal Analyst also sits on three marketing for the upcoming external Boards related to two years to compliment the tourism and is managing all of TBID's external marketing the City's visitor services related efforts. This focus also contracts. This results in over resulted in the Committee 50%of her time being dedicated recommending funding for to this revenue generating effort. two projects which are CIP There will be slightly reduced in nature but funded through outreach for tourism purposes. Community Promotions. As a result of these changes the Community Promotions budget has been recommended for significant reduction by the PCC and staff for 2009-11. The PCC considered several variations but felt strongly that this option will maintain current ATTACuIMEWT 2009-11 OL)eratina Bud et Reuuction Options COUNCIL, ADMINISTRATION, • - : CITY CLERK Staffing FTE Description Service Impact. Temp Regular 2009-10 2010-11 service levels by utilizing the budget differently and therefore minimizing a negative service impact. Further refinements will be likely for the 2011-13 Financial Plan as well. ADMINISTRATION—GRANTS IN AID $10,000 , $10,000 17. Grants in Aid. The current This will reduce the amount of allocation for Grants In Aid monies available to support has been at$100,000 for various nonprofit events. many years. This allocation However,the grants have not could be reduced by$10,000 been awarded. All grant to reflect the economic strain applicants have been advised that the organization is presently the annual allocation is subject to under. possible adjustment by Council in light of the budget deficit the City presently faces. ADMINISTRATION,CITY ATTORNEY,CITY CLERK RESTRUCTURING _ $147,000 . $137,000 18. Restructuring Opportunity. As a result of two retirements(one in the Clerk's Office and one in Administration)there is an opportunity to restructure Administration,the City Attorney,and the City Clerk's Departments. This restructuring will result in long term cost savings. This restructuring will also create better work efficiencies and create opportunities for the sharing of staff resources. Restructuring will allow for Administration to provide better analytic support to the organization as a whole and to address the staffing needs arising from several of the Major City Goal work programs for 2009-11. General Concept A series of steps are necessary to accomplish the proposed restructuring. Those steps are generally as follows: Upon the retirement of the City Clerk the position will be reclassified to Management and the program transferred to -8 - 2009-11 Oporating OperatingBudget Reauction Options ATTACHMEUT -9 AwINISTRATION, CITY ATTORNEY ; CITY-CLERK- Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Administration,under the supervision of the Assistant City Manager. Upon the retirement of the City Manager Executive Assistant,the Legal Assistant position in the City Attorney's Office shall be eliminated and the job responsibilities incorporated into the Executive Assistant position. This position will provide support to the City Council,City Manager,and City Attorney. Beginning in July 2009,the Administrative Assistant III in Administration will be eliminated and replaced with an Administrative Analyst I. City Clerk. The City Clerk is Savings Appointing an interim $112,100 $54,100 presently a Department Head City Clerk for the first six level position. The incumbent is months of the fiscal year will retiring on June 30'h. In result in a net salary savings of surveying other cities,staff has $85,000. In the second six found that the City Clerk months it will result in an function is addressed in a wide estimated savings,of$27,100 variety of ways. In about half of (the midpoint of the salary range the cities it is at a department was used)for a net savings in head level and in the other half it year one of$112,100 and year is at a management level. As a two an approximate savings of cost savings measure with this $54,100. retirement staff recommends reclassifying this position to Service Impact A service management. With this impact to the public is not reclassification the City Clerk's anticipated as a result of the Department will become a reclassification of this position. program within Administration. The Assistant City Manager Administration presently however will have additional contains four discrete programs management responsibilities with in addition to general the addition of another direct Administration and Council and report and program. those are: Community Promotions,Cultural Activities, Economic Development,and Natural Resources. It is envisioned that the City Clerk will report directly to the Assistant City Manager and will supervise two Administrative Assistants. To facilitate additional cost savings and to provide time for adequate job recruitment,staff recommends that the current - RTTACHIREWT 2 2009-11 QL)eratinq Bud et Reauction Options COUNCIL, ADMINISTRATION, • - - Staffing FTE Description Service Impact Temp Regular 2009.10 201D•11 Administrative Assistant III in the City Clerk's program serve as the Interim City Clerk and work out of grade at the appropriate compensatory level. Staff also anticipates that this restructuring will be supported by other Administration employees who will take on various fiscal responsibilities and whose work loads will be coordinated and distributed by the Assistant City Manager. Executive Assistant Upon the Savings. The reduction to one 1.0 $47,000 $95,000 retirement on December 30'"of shared Executive Assistant the City Manager Executive starting in January 2010 will Assistant the position of Legal result in a net savings in the first Assistant/Paralegal will be budget year of$47,000 and eliminated. This will result in $95,000 in year two to the recruitment for an Executive Administration and the Assistant who shall report to the Attorney's departments City Manager but provide combined. The sharing of this general administrative support to resource will be reflected in the the following: the Mayor,all individual departments'budgets. Councilmembers,the City Manager,and the City Attorney. Service Impact. There will be The position will be funded fifty some service impacts as a result percent by Administration and of this shared staffmg. The City fifty percent by the City Attorney will no longer have Attorney. This position will staff at its front counter. The have a broad set of job public will have to come to the responsibilities and will continue Administration Department to to provide specialized support to coordinate meetings with the the City Attorney's office in City Attorney. There may be preparing legal documents and times where the City Manager filing the same with the Courts. and City Attorney have to This position will coordinate its prioritize their support needs. workload with Administration's Administrative Assistants to increase work efficiencies. Administrative Analyst I. In Increased Cost. The ($12,100) ($12,100) order to facilitate tasks replacement of the associated with Major City Administrative Assistant III with Goals,accomplish special an.Administrative Analyst I is a projects,increase public net cost of$12,100 per year. communications,provide coordinated and increased Service Impacts. As discussed analytic and budgetary work to the purpose of replacing the Economic Development,Natural existing Administrative Assistant Resources,Community III with an Administrative Promotions,Cultural Activities, Analyst I is to improve the the City Clerk's Program and the analytic capacity of - 10- B -�a - ATT�r SWT 2 2009-11 O ergin Budget Reauction Options COUNCIL, ADMINISTRATION, • - Staffing FTE Description Service Impact Temp Regular 2009.10 2010-11 City Attorney the existing Administration,meet the action Administrative Assistant III tasks in several Major City needs to be replaced with an Goals,provide increased staff Administrative Analyst I. support for grant procurement, and improved coordination of The key objectives in this change public information. If this are to: (1)Provide necessary position is not approved, analytic and fiscal oversight Administration will continue to support for Administration, need an Administrative Assistant especially in the areas of III to provide continued support Economic Development,Natural to five discrete programs. Resources and the City Clerk; (2) Coordinate the new Business Retention and Expansion database and quarterly newsletter; (3)Provide staffing support for special projects such as grant procurement and succession planning;and(4) Coordinate information provided to the public about City services, programs,and opportunities. Although Administration has the Principal.Administrative Analyst, her job duties have evolved over the years. With the recent addition of the TBID,the Principal Administrative Analyst is spending over half of her time coordinating the City's tourist promotion efforts. Included in this significant undertaking is the Principal Administrative Analyst serving as either the official liaison or representative of the City on eight committees or boards including two Advisory Bodies(the PCC and TBID)and their various subcommittees,the Tourism Council,the VCB and homeless oriented groups such as the Friends of Prado,the HSCC, and the Transient Task Force. The PCC and TBID have combined budgets of well over $1,000,000 and will continue to require significant staff effort and involvement as both groups try and right the"TOT ship"and bring back the City's third largest revenue stream to more acceptable levels. 2009-11 Operating Budget Reauction Options COUNCIL, ADMINISTRATION, • - - Staffing FTE Description Service Impact Temp Regular 2009-10 2010r11 In addition to general analytic duties for Administration the Principal Administrative Analyst has significant fiscal responsibilities as well and serves as the budget analyst for two of the City's largest departments,Fire and Police. As a result of these added job duties, there is a need for added analytic and budgetary support in Administration which is beyond the work scope set forth in the job description for an Administrative Assistant III. As both the Natural Resources and Economic Development programs have matured,the support needed has evolved to need for more advanced analytics and grant writing. Both Programs have significant action plans to accomplish in 2009-11 in association with Major City Goals. The Economic Development Program's efforts to establish in an expedient manner a fully functioning Business Retention and Expansion program will require significant analytic staff work. Further support is needed for enhanced communications particularly in the website and public outreach arenas. The Analyst I is envisioned to be able to support the City Clerk and Attorney's budgetary needs by serving as a fiscal officer for each. Because the City does not have a coordinated public communications officer,there is a void in the public outreach efforts. This process could be improved through better coordination throughout the organization. The Analyst I could help fulfill that coordination need. - 12- 2009-11 Operating Budget Re-auction Options COUNCIL, ADMINisTRAMN, • - - Staffing FTE Description Service Impact I Temp Regular 2009-10 2010-11 CITY CLERK—ELIMINATION OF PART TIME TEMPORARY STAFF $18,200 $18,200 19. City Clerk. The City The elimination of this position 0.5 Clerks' office presently has will impact service to the public. funding for a temporary Because of the deadline intensive employee who provides nature of the Clerk's program, general assistance to the staff will have difficulty being office and services the available during all business public counter. The position hours to answer general allows for additional questions by the public. As a coverage during busy times result of this reduction staff such as on Council Meeting recommends reducing the hours days and during election that the Clerk's counter is open periods. to the public from its present 8 a.m.to 5 p.m. to 10 a.m. to 5 p.m. and continuing to rely upon volunteers. This closure will allow remaining staff to have uninterrupted periods during the day necessary to meet the various legal deadlines of the Clerk's Office. There may be additional service impacts on Council meeting days as well. Information will still be available via the web during the times of closure. Extensive communications outreach will be necessary to implement this operational change. TOTAL 0.5 1.0 $428,300 $397,500 - 13 - 13W�75� 2009-11 Operating Budget Reauction Options HUMANRESOURCES - • - Stang FTE Description Service Impact Temp Regular 2009-10 2010-11 HUMAN RESOURCES ADNWWSTRAT16N 1. Human Resources—Office Reduce office supplies $1,000 $1,000 Supplies:Miscellaneous expenditures. Office Supplies Service Impact:No significant service impact. 2. Human Resources—Print No longer print recruitment flyers $2,300 $2,300 and Reproduction and brochures or provide hard copies of Memorandum of Agreements. Provide electronic copies only. Service Impact:No significant service impact. 3. Human Resources— Reduce number of subscriptions $2,300 $2,300 Publications and and attempt to utilize online Subscriptions resources. Service Impact: Possible decrease in awareness of best practices, legal updates,etc. 4. Human Resources— Reduce membership from three $200 $200 Professional Organizations employees to one employee for International Personnel Managers Association(IFMA). Service Impact: Possible increased registration fees for non-member staff to attend seminar or conference.Potential decrease in awareness of best practices,legal updates,etc. 5. Human Resources—Trips Reduced training and education $1,000 $1,000 and Meetings opportunities for Human Resources staff. Service Impact:Possible decrease in awareness of best practices, legal updates,etc. HUMAN RELATIONS 6. Human Relations Advertise only for public $600 $600 Advertising hearings.No Grants-in-Aid or Public Needs Workshop would be advertised. Service Impact: Potentially not as effective informational outreach to non-profit organizations in the - 14- `i ' /� E- 2009-11 Operating Budget Reauction Options HUMANRESOURCES DEPARTMENT Staffing - • - Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 community. Risk MANAGEMENT 7. Risk Management—Contract There would be no funds $200 $200 Services available in the event there is a contract change for Health Comp (the City's Flexible Spending Administrator). Service Impact:No significant service impact. HUMAN RESOURCES ADMINISTRATION 8. Human Resources— Reduce recruitment advertising. $21,300 $21,300 Advertising Service Impact:Funding sufficient to support recruitments —no contingency available if demand exceeds estimate. A potential for less effective recruitment results(e.g. fewer applicants,not as extensive outreach,etc.). 9. Human Resources—Contract Reduce number of background $2,600 $2,600 Services checks. Service Impact: Funding sufficient to support recruitments —no contingency available if demand exceeds estimate. 10. Human Resources— Reduce participation in college $1,000 $1,000 Personnel Services: Job Fairs job fairs. Service Impact:This option would minimize the City's presence at colleges. This could potentially result in less effective recruitment results. 11. Human Resources— If there is a department head $6,000 $6,000 Personnel Services Dept vacancy in the next two fiscal Head Recruitment years, funds will not be available for an assessment center. Service Impact:Reduces the effectiveness of Department Head recruitment and selection. RISK MANAGEMENT 12. Risk Management: Insurance Reduce amount budgeted for $6,000 $6,000 15- �`( _ - � �iIA�C�j� ``;ME-Z' 2 R4 �HYOae��i.��• 2009-11 Operating Budget Reauction Options HUMAN RESOURCES DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Premium insurance premium. Service Impact:Funding sufficient to support current contractual obligation-no contingency available if demand exceeds estimate. 13. Wellness-Wellness Discontinue Wellness $6,000 $6,000 Reimbursements reimbursements. Service Impact:The Wellness Program helps promote healthy lifestyles,reduce lost time and increase work productivity. Discontinuing the Wellness reimbursements may result in lower participation, increased lost time,and reduced productivity. Potential for negative impact on employee moral. HUMAN RESOURCES ADMINISTRATION:. o 14. Human Resources- Reduce funds for employee $7,300 $7,300 Employee Recognition: recognition Picnic and Holiday Picnic,Holiday Party Party. Service Impact: Reduce number and quality of employee recognition activities. Potential for negative impact on employee moral. RISK MANAGEMENT 15. Wellness-Education and Reduce Wellness training. $1,000 $1,000 Training Service Impact: Reducing the Wellness training and education may result in lower participation in the Wellness program, increased.lost time,and reduced productivity. Potential for negative impact on employee moral. 16. Risk Management:Education Reduce safety and liability $1,500 $1,500 and Training training. Service Impact: Reduction in education and training could result in an increase in worker's compensation claims, lost work time,and worker's compensation - 16- � 7 � � _ r 2009-11 Operating Budget Reduction Options HUMANRESOURCES DEPARTMENT Staffing - • - Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 and liability insurance premiums. Potential for negative impact on employee moral. 17. Risk Management: Safety Phase out Safety Incentive $1,200 $1,200 Incentive Program Program. Service Impact: Reduces ability to promote safe working conditions that may result in increased worker's compensation claims,lost time and worker's compensation and liability insurance premiums. Potential for negative impact on employee moral. 18. Wellness—Professional Do not train Wellness $400 $400 Conferences Coordinator in ergonomics assessment. Service Impact:This could result in additional contract services charges if ergonomic assessment is needed. If ergonomic working conditions are not addressed there is the potential for higher number of worker's compensation claims. HUMAN RESOURCES ADMINISTRATION . 19. Human Resources- Reduce participation in $2,500 $2,500 Professional Conferences professional development conferences. Service Impact: Possible decrease in awareness of best practices,legal updates,etc. RISK MANAGEMENT 20. Risk Management: Risk Manager cannot attend $2,000 $2,000 Professional Conferences California Public Employers Labor Relations Association (CALPELRA)annual conference, reducing breadth of Human Resources knowledge. Service Impact:Possible decrease in awareness of best practices, legal updates,etc. - 17- �9 r'r X52T 2 2009-11 Ope-rating Bud et Reaudion Options DEPARTMENTHUMAN RESOURCES Staffing FTE Description Service impact Temp Regular 2009-10 2010-11 21. Risk Management– Eliminates temporary salaries. 0.1 $1,700 $1,700 Temporary Salaries Service Impact:No funds for paid intern or other temporary staff to complete valuable project work. 22. Wellness: Contract Services Eliminate contract Wellness $1,100 $1,100 classes. Service Impact: Reducing the Wellness classes may result in lower participation in the Wellness program, increased lost time,and reduced productivity. Potential for negative impact on employee moral. HUMAN RESOURCES ADM"-' - TRATION 23. Human Resources: Eliminate support for $9,100 $9,100 Professional Association of Professional Association of City City Employees(PACE) Employees(PACE). Service Impact: Potential negative impact on activities that foster professional and personal development and succession planning. Potential for negative impact on employee moral. .._. .. RISK MANAGEMENT . - 24. Risk Management–Contract Reduce Risk Management $3,500 $3,500 Services contract services. Service Impact: The Safety Risk Management Manual and Injury and Illness Prevention Program may not be updated. Without updated programs an increase in worker's compensation claims, lost time and worker's compensation and liability insurance premiums may result. 25. Risk Management Contract Reduced funds available for $1,500 $1,500 Services Fitness-for-Duty evaluations. Service Impact: Funding sufficient to support estimated Fitness-for-Duty examinations– no contingency available if demand exceeds estimate. 18 - g[�— O V l tab ,,,4 Awl 2009.11 Operatin Bud et Reuuction Options RESOURCESHUMAN . . - Stang FTE Description Service Impact Temp Regular 2009-10 2010.11 HUMAN RELATIONS 26. Human Relations— Eliminate training for Human $1,000 $1,000 Education&Training& Relations Commissioners. Professional Conferences Service Impact: Possible decrease in awareness of best practices, legal updates,etc. HUMAN RESOURCES ADMINISTRATION. 27. Human Resources—Contract Reduce access to external legal $11,000 $11,000 Services counsel. Service Impact: Depending on the need for outside legal counsel related to grievances,disciplinary appeals and/or negotiations,there could be no service impact. May increase the workload of the City Attorney and Assistant City Attorney for consultation. 28. Human Resources— Reduce education and training. $5,000 $5,000 Education&Training Service Impact: Reduced education and training opportunities. Potential negative impact on activities that foster professional and personal development and support succession planning. Potential for negative impact on employee moral. 29. Human Resources—Trip Eliminate an incentive("Lucky $2,400 $2,400 Reduction Incentive Program Bucks"program through the (TRIP) County)to use alternative transportation. Service Impact:This could result in fewer employees using TRIP, an increase in traffic levels,and a negative impact on the environment. 30. Human Resources—Office Reduce office furniture $500 $500 Furniture: Ergonomic Office ergonomic office equipment Equipment expenditures. Service Impact:May not be able to provide necessary ergonomic office equipment. _ 19- 84-�'/ 2009-11 Operating Budget Reuuction Options HUMANRESOURCES DEPARTMENT Staffing • • - Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 31. Human Resources— Eliminates temporary salaries. 0.1 $5,100 $5,100 Temporary Salaries Service Impact:No funds for paid intem or other temporary staff to complete valuable project work. 32. Human Resources—Salaries Eliminate Human Resources $18,500 $18,500 Executive Assistant position and replace at an Administrative Assistant I. Service Impact:The Human Resources Executive Assistant will be retiring this year. The Human Resources Director will reorganize work in the department. Potential for increased workload on other Human Resources staff,loss of technical Human Resources related knowledge in administering worker's compensation,claims against the City,and cost recovery,and decreased service levels. RISK MANAGEMENT 33. Wellness—Medical Services Discontinue Wellness Blood $3,300 $3,300 Draws. Service Impact: This would eliminate a key component of the wellness program. Not providing preventative diagnostic tests may increase likelihood of undetected illnesses. HUMAN RESOURCES ADMU11STRATI0N ' 34. Human Resources—Regular Do not authorize annual leave $7,300 $7,300 Salaries buyouts. Service Impact: Approximately four additional weeks of leave may be taken by Human Resources staff,resulting in a significant service impact for a small department. -20- `Jell Z t 2 6'n L� l�Ja�:_lyti_..0 2009-11 Operating Budget Reauction Options RESOURCES DEPARTMENT Staffing •A- Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 HUMAN RELATIONS 35. Human Relations—Grants- Reduce funds for Grants-in-Aid. $6,600 $6,600 in-Aid Service Impact: Reduces funds available to assist non-profit organizations who provide human services to the community in times when other grant funding is being reduced. TOTAL 0.2 $144,000 $144,000 -21 - 2009-11 Operating Budget Reuuction Options FINANCE & INFORMATION TECHNOLOGY DEPARTMENT ------ Staffing Temp Regular Description Service Impact FTE FTE =009-1072010,11 SUPPORT SERVICES 1. Eliminate Typewriter Departments will be encouraged to 1,200 1,300 Maintenance Contract. lessen or eliminate the use of Eliminating the annual typewriters. Work that can't be maintenance contract for completed on a computer can be typewriters will save$1,200 in hand-written instead of typed. For 2009-10 and$1,300 in 2010- typewriters that cannot be 11. eliminated will be paid at the hourly rate for service calls. 2. Reduce Annual League The current budget is for four City 3,000 3,000 Conference Attendance. employees to attend this Reducing the number of conference—the reduction will attendees to the annual League enable only two employees to take of California Cities conference advantage of the opportunity to will save$3,000 annually. attend. FINANCE&IT ADMINISTRATION 3. Eliminate Temporary Finance&IT will not have 0.1 1,000 1,000 Staffing. Eliminating the temporary resources to assist with temporary staffing will save budget preparation and goal $1,000 annually setting. Regular staff will now perform these tasks. ACCOUNTING 4. Reduce Temporary Staffing. The major use of temporary 0.1 4,600 4,600 Reducing temporary staff staffing in the Accounting section hours will save$4,600 is for keying accounts payable annually. vouchers. With fewer temporary hours,it will be more difficult to stay current with disbursement work loads. INFORMATION TECHNOLOGY(IT) 5. Reduce Printer Printers typically have a long life 4,000 4,000 Replacements. Reducing span and the City does not replace black&while printer them until it is no longer cost replacements from 8 to 6 effective to repair them. Most of annually will save$4,000 the City's printers are in good annually. shape. However,productivity could be adversely impacted if The City currently has 82 more printers fail than anticipated printers.Of these,we typically and funds are not available to budget for the replacement of replace them. 9 printers annually(8 black& white and I color): about 10% annually. This results in an annual cost of$21,000. Reducing black&white printer replacements by 2 saves$4,000. -22- ���V 2009-11 Operating Budget Reduction Options ' FINANCE • • • TECHNOLOGY DEPARTMENT Staffing Temp Regular Description Service Impact FTE FTE 2009-10 2010-11 6. Reduce Temporary Staf£mg. The IT temporary staffing budget 0.1 5,000 5,000 Reducing the number of has been used in prior years to temporary staff hours will fund interns. This reduction will save$5,000 annually. adversely impact IT's ability to accomplishment special projects on a timely basis. 7. Reduce Server Some of the City's older servers 10,000 10,000 Replacements. Reducing are still running well and are server replacements from 4 to expected to continue to function 3 annually will save$10,000 for the next two years. However, annually. the older servers will be out of warranty. This means that IT will The City currently has 38 not be able to get replacement servers supporting a wide parts by the next business day. range of specialized Fortunately,the City's older applications such as financial servers are not strategic or mission management,utility billing, critical systems. In some cases, web access,Outlook,fleet services could be restored by management and GIS. temporarily moving services to an under utilized.server until At$40,000 annually,we are replacement parts could be able to replace about 10%of received. This approach is likely our servers. With the to be successful for the next two proposed reduction,this will years without an adverse impact on drop to 8%. If this continues, productivity. However,this will the average life of our servers not be the case in future. will drop form 10 years to 12 years. 8. Eliminate Telemetry Eliminating this vacant position 1.0 51,200 37,800 Instrumentation Technician will adversely affect support of Eliminating the Telemetry telemetry systems. However,the Technician position will result impact will be partially offset by in net savings of$51,200 in contracts services. 2009-10 and$37,800 in 2010- 11. This is based on staffing savings of$93,200 in 2009-10 and$97,100 in 2010-11, which will be partially offset by the need to backfill part of this savings with contract services of$42,000 in 2009- 10 and$59,300 in 2010-11. 9. Eliminate Eliminating this vacant position 1.0 130,600 135,000 Telecommunications will adversely impact supervision Supervisor. Eliminating the of telecommunication services and Telecommunications overall project management Supervisor position will save capacity. $130,600 in 2009-10 and $135,000 in 2010-11. -23- g��OJ 2009-11 Operating Budget Reauction Options FINANCE & INFORMATION TECHNOLOGY nPARTMENT Staffing Temp Regular Description Service Impact FTE FTE 2009-10 2010.11 10. Defer Computer This will cause a significant 85,000 85,000 Workstation Replacements. increase in the number of Deferring the scheduled workstations that are not under replacement of desktop and warranty,which will mean delays laptop computers by 50%will in receiving replacements for save$85,000 annually. failing hardware,impacting productivity. In implementing the City's goal of staying current with More importantly,it means our technology,it is the City's user workstation will not stay policy to replace workstations current with technology and be based on a forty-month life. able to run the most current Based on 400 workstations, versions of software. this means replacing 114 annually. Based on standard Fortunately,our current inventory unit costs(including software is in good shape;and we do not but excluding monitors)of have any plans in the next two $1,350 for basic desktop years for organization-wide workstations and$2,700 for software replacements. As such, CAD/GIS workstations and this deferral is likely to be laptops,this results in an successful for the next two years annual cost of$176,800(98 without an adverse impact on workstations at$1,350 and 17 productivity. However,this will CAD/GIS at$2,700). The not be the case in future as our proposed reduction would workstation inventory becomes only fund about 55 increasingly older. replacements annually. 11. Reduce IT Assistant Full- While this position is budgeted at 0.2 15,600 19,700 Time Equivalent(FTE). 1.0 FTE,the current incumbent is This position is budgeted at only scheduled to work 0.8 FTE. 1.0 FTE. Reducing the The savings is offset by temporary position to 0.8 FTE will save staffing and contract services used $15,600 in 2009-10 and in supporting the IT Division. $19,700 in 2010-11. Accordingly,this reduction will adversely impact the operations of the IT Division: technical staff will perform more administrative tasks, reducing direct infrastructure and user support. 24 �7 2009-11 Operating Budget Reauction Options �`� FINANCE & INFORMATION TECHNOLOGY DEPARTMENT Staffing Temp Regular Description Service Impact FTE FTE 2009-10 2010-11 FINANCIAL&IT ADMINISTRATION . . 12. Eliminate Administrative Eliminating this vacant position 1.0 Analyst. Two tiers are will adversely impact the proposed for this budget department's analytical and reduction as outlined below. management support capacity in the both the Finance and IT Divisions.This will occur at a time when the City's need to monitor, analyze and report on fiscal trends will be as great(if not greater)than ever;and when we will be managing several very large IT projects. Tier l:Partially offsetting the Tier I Impact:This will partially (0.5) 65,400 68.900 elimination of this position mitigate the adverse impact on the with temporary staffing will City's ability to monitor fiscal result in net savings of trends,continue analytical work $65,400 in 2009-10($105,800 like"best practice reviews"and in regular staffing savings less benchmarking studies;and support $40,400 in temporary staffing) IT operation and projects. and$68,900 in 2010-11 ($109,300 in regular staffing savings less$40,400 in temporary staffing). Tier 2: Delete all funding for Tier 2 Impact This will have 0.5 40,400 40,400 analytical and management significant adverse impact on support. Finance&IT's ability to achieve its organizational goals of: 1.Developing and implementing efficient and effective financial policies,plans and reporting systems that help the operating departments achieve their objectives and assure the City's long-term fiscal health. 2. Protecting the City s assets from unauthorized use 3. Effectively using the City's information technology resources in improving productivity,customer service and public access to City information 4.Providing quality service to all of the department's customers—both external and internal to the organization. TOTAL 0.3 3.2 417,000 415,700 -25- 5`7 —L / 2009-11 Operating Budget Reuuction Options �`°f i •='�'�; COMMUNITY • • DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 ADMINISTRATION(40100) 1. Microfilming/Digitizing— Postpone digitizing of project files $600 $600 (7269) and reduce the number of storage Digitizing project files, containers at Docu-Team. Off-site storage of digitized maintenance of storage containers 2. Office Equipment Postpone cash register and slip $500 $500 Maintenance-(7275) printer maintenance to emergency Cash register and slip only, printer maintenance service,Microfiche reader/printer supplies (including toner)and maintenance. 3. Printing&Reproduction Reduce color copies and special $1,300 $1,300 Contracts(7283)) projects,eliminate printing of General copying contract posters and checklists. services,Color copies and special projects,Standard print jobs,forms, checklists,posters,etc., envelopes&letterhead previously from"City Stationary Supplies" abandoned account 4. Employee Recognition- Eliminate Breakfast with the Boss $1,000 $1,000 (7417) monthly Department meeting Breakfast with the Boss supplies monthly Department meetings 5. Office Supplies-(742 1) Eliminate intern paid parking $600 $600 Intern Parking 6. Postage—(7423) Only mail documents at standard $300 $300 Shipping via UPS and delivery rate Federal Express(plus service charges),Postage stamps and misc.mailers 7. Associations-(7453) Reduce the National Notary $200 $200 National Notary Association to one Administrative Association(Supervising Assistant. This would reduce the Administrative Assistant, response time for documents and two Administrative requiring to be notarized. Assistants) -26- �� 2009-11 Operating Budget Reuuction Options COMMUNITYDEVELOPMENT DEPARTMENT Staffing • • - Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 8. Cameras and Photo Reduce the number of photo $200 $300 Supplies—(7767) processing to emergency only. Photo processing supplies, This would result in less quality image processing for presentations and support presentations documents for staff reports. 9. Publications for Resale— Eliminate publications for special $300 $200 (7863) projects. This would result in little Special Projects flexibility of printing special reports as they surface throughout the fiscal year. Staff would promote more use of digital documents on city's website. COMMITTEES&COMMISSIONS(40110) 10. Office Supplies-(742 1) Reduce office supplies and $500 $500 Standard office supplies encourage Advisory body members and meeting supplies, to bring in their own supplies. meeting nameplates and holders 11. Publications& Reduce one-time books, $200 $100 Subscriptions(7427) magazines,and Historical books One-time books, for CHC library. This would result magazines,periodicals, in a limit of the resources available historical books for CHC to staff. library 12. Commission and Water bottles would no longer be $400 $500 Committee Meetings and provided to advisory bodies and Supplies(7455) they would be encouraged to bring Miscellaneous supplies for their own. Commission meetings, food/snacks for Commissioners at night meetings LONG-RANGE PLANNING(40400) _ B. Contract Services—(7227) Limits ability of division to use $19,800 $23,800 outside help to augment staff skills or to complete special studies to support general plan implementation programs. 14. Project Fees&Expenses— Reduced ability to secure meeting $4,000 (7287) venues outside of City buildings for Meeting Venue costs community outreach meetings. 15. Computer Supplies-(7413) Reduced ability to upgrade or $100 $100 obtain programs and supplies needed for work production. -27- x--59 „--, 2009-11 Operating Budget Reuuction Options COMMUNITY • • s - • - Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 BUILDING&SAFETY(40700) 16. Engineering and Plan Reduce contract plan review $1,500 $1,500 Review Services(723 1) services of building permit applications 17. Printing and Reproduction Printing of permit forms,pre- $2,200 $2,200 (7283) printed stationary for building Permit forms and pre- permit program and inspection printed stationary for record forms would be done in- building permit program, house,which would reduce the inspection record forms and time staff spends on other correction notices, priorities. brochures,handouts, business cards,misc. forms 18. Office Supplies(7421) A reduction in miscellaneous $1,600 $1,600 Miscellaneous supplies, supplies would result in not up to minor desktop equipment, date equipment and supplies. etc. Replacement of supplies would only occur in emergency situations. 19. Postage(7423) Eliminate UPS delivery of building $1,000 $1,000 UPS delivery of building plans to out of town plan review plans to out of town plan services(see above) review services 20. Publications& Building staff would use previous $1,500 $1,000 Subscriptions(7427) code handbooks and references and Code interpretation would have to use the handbooks handbooks and references website for any updates. ADMINISTRATION(40100) _ 21. Eliminate Part-Time Loss of a Part-Time Planning 0.25 $9,500 $9,500 Planning Intern Intern would result in a reduction Eliminating a Part-Time of time needed to process legal Planning Intem would save notifications of planning $9,500 in 2009-10 and applications,processing monthly $9,500 in 2010-11. planning application reports,and the delivery of advisory body packets to advisory body members Loss of the position would also have a negative impact on legal notification coverage because the interns typically travel home for holiday and summer break. Clerical staff will do the work of the intern during these times. The loss of the position would also result in one less Planning Intern that assists the Community, -28- 2009-11 Oi2eratina Bud et Reauction O tions COMMUNITY • • DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Development staff,specifically the planners,with special projects and planning applications. This will exacerbate the effect of eliminating a planning position on special projects. 22. Reduce Overtime(7020) Reducing the allowed overtime $3,000 $3,000 would result in a decrease in the amount of work completed that would have been otherwise completed if staff would have been able to work after work hours or on the weekends. DEVELOPMENT REVIEW(40200) 23. Reduce Overtime(7020) Reducing the allowed overtime $1,300 $1,300 would result in a decrease in the number of tines project planners present their reports at the advisory body meetings,which are typically held at night. Developing presentation skills is important to the career skills of planning staff and succession planning efforts. DEVELOPMENT REVIEW&LONG RANGE PLANNING RESTRUCTURE(40200&40400) 24. Eliminate Associate With annexation of Airport Area, 1.0 $93,900 $98,100 Planner Position. Margarita Area,and Orcutt Area, Eliminating a vacant the city is getting bigger,increasing Associate Planner Position the area that generates planning in the Development Review applications. New storm water Division. Shifting a filled management regulations would Associate Planner position also be placing a demand on to the Long-Range development review staff Planning Division, resources. Fewer staff to process eliminating a Supervising applications as the city grows Administrative Assistant would exacerbate the slow down in position and creating an the permit process should the Administrative Analyst economy"normalize". position would save $92,600 in 2009-10 and Assuming a 25%reduction in 98,100 in 2010-11. planning applications,reducing a development review planner Cost Savings Breakdown position 20%is expected to result 2009-10 in the following service impacts: Associate Planner - $106,200 1)The average number of Supv. Admin. Asst. - applications assigned to each $79,400 remaining development review -29- 2009-11 Operating Bud et Reduction Options J COMMUNITYDEVELOPMENT DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010.11 Admin.Analyst planner is expected to fall to about +$91,700 25. At the same time,the amount Total Savings of time each planner will now $93,900 spend at the public service counter will increase by 50%,to 12 hours Cost Savings Breakdown per week. With less staff to man 2010-11 the counter,each planner will now Associate Planner - spend a third of their doing counter $110,800 work Supv.Admin.Asst. - $83,000 Thus the number of assigned Admin.Analyst applications is expected to go down +$95,700 by 8.3%while the hours per week Total Savings to work on applications will go $98,100 down by 10%. This is likely to result in a small increase in the The eliminated Planner amount of time between an position shouldn't come out application being submitted and a of Long Range Planning permit being issued. If the actual because that Division has decrease in applications is less than responsibility for three 25%,the amount of time needed to Other Important City process permit applications will be Goals. greater. The average number of 2) Zoning compliance reviews of applications per planner per building permit applications may month during the last ten take longer. years was about 32. 3)Final planning inspections of building permits may take slightly longer. 4) Longer permit processing times may result in more complaints from applicants/developers. 5) Staff morale may decline if complaints increase. 6) A decrease in planning staff may diminish the Department's capacity to work on multiple priority projects. Measures to reduce impacts: The following measures and assumptions would lessen the above-identified impacts: 1) Eliminating a Supervising Administrative Assistant position and replacing it with an Administrative Analyst position 30 2009-11 Operating Budget Reauction Options COMMUNITY-DEVELOPMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010.11 will offset some of the impacts to service levels in the Development Review and Long-Range Planning Divisions as follows: a) The Analyst could free up time spent by the Housing Programs manager by taking over C.D.B.G.grant administration, creating a database for tracking affordable housing units, preparing grant applications, updating and maintaining the affordable housing web content, processing affordable housing agreements,monitoring the escrow process of affordable housing units,preparing First Time Home Buyer agreements and vouchers,and preparing community outreach newsletters and brochures. b) The Housing Programs Manager will in turn be able to spend more time on housing applications researching affordable housing grants. c) The analyst position would provide all City Manager Reports,relieving division managers of this responsibility. d) The Analyst would become the primary point of contact for the Economic Development Manager for inquiries regarding development activity and reports. e) The Analyst would prepare a study of the City's discretionary and advisory body review processes and seek opportunities to approve various applications at lower levels in order to reduce the necessary amount of processing. As a part of this study,the Analyst would conduct a survey of comparable cities to compare San Luis Obispo's processing requirements with those of comparable cities. -31 - !J 2009-11 Operating Budget Reauction Options COMMUNITY • • DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2008-10 2010.11 f) The Analyst would help manage customer expectations by developing a customer service program with a focus on communication and outreach. 2) Close the public counter hour at 4 pm to allow planners time to review projects and return phone calls. 3) Use work study students for receptionist duties—bulk of cost are borne by sponsoring school. Assumptions: The following are assumptions of this reorganization. If not,the impacts identified above are significantly greater. 1) The new Long Range Planner keeps a full counter schedule(as the position always has) 2) If the new Long Range Planner is Phil Dunsmore,he continues to be the planner on the Pref uno Creek Commons project(Target). A change in planner mid-stream on the City's#1 priority project would be a significant setback for continued processing of the application. BUILDING& SAFETY(46700) 25. Re-structure the Building The(ABO)position coordinates 1.0 $119,500 $119,300 Division resulting in communications,information and ($3,000) ($3,200) elimination of the personnel to assure smooth and Assistant Building efficient activities in support of Official(ABO), building division operations. eliminating a Permit Duties include coordination of plan Coordinator position,and review for Planning and Building creating a Building approvals,coordination of field Permit Coordinator activities including building (BPC)position. inspection and code enforcement investigations and management of The net savings has been the Expired Permit program. determined by eliminating Additionally,this position serves as salary and benefits acting Chief Building Official associated with the (CBO)during absences. restructuring. -32- � C 2009-11 Operating,Budget Reauction Options COMMUNITY • - DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009.10 2010-11 The restructuring can be Impacts to Building Division implemented July 1,2009. Activities: Loss of the ABO position may affect the timeliness Both positions are currently of project reviews including filled. construction and planning applications. This position also Key Objectives of the serves a key roll in providing Department: coverage at the front counter; loss of the position would result in only Development Review: the Plans Examiner(a key staff The Assistant Building Official person)available to respond to serves a key role in the complex code questions on a daily Development Review Process. basis. This would result in more The position is responsible for interruptions for the Plans attendance at the weekly Examiner and longer plan review meetings,reviewing or times. Re-structuring to include a assigning plan reviews as Building Permit Coordinator(BPC) appropriate and providing would allow flexibility to have routine consultations with the additional staff to provide customer Associate Planners in an effort service at the front counter. Ample to provide excellent customer training has occurred that would service at the Community enable staff to assume some of the Development front counter. duties of the ABO position. Construction Application Loss of the ABO position would Plan Review: reduce our ability to provide 40%of the 1700 permits issued prompt and effective customer on an annual basis are service as it relates to building applications with significant division functions overall. plans that must be submitted for Specifically,it may require longer plan review,averaging over 500 plan review times and a reduced applications per year. The ABO ability to function effectively as a is the primary coordinator of one stop permit processing plan reviews and ensures plan division. The effects of the re- content and turn around times is structuring would result in these on track. The Building Division duties being transferred to the BPC also acts as a one stop and Plans Examiner. processing counter whereby we take control of routing of plans to all other city departments that would require their review based on established criteria. The Building Division is responsible to verify code compliance based on the currently adopted and amended California.Building Code;this includes detailed analysis for disabled access compliance. We then gather all the reviews from each department and work collaboratively with the applicants and the involved departments to ensure all -33 - L� �� 1 va !�'?:y3'=A� a 2009-11 Ogeratina Budget Reuuction Options COMMUNITYDEVELOPMENT DEPARTMENT Staffing • • - Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 required information is memorialized on the approved plans. Same Day Building Loss of the contract&ABO Inspections: positions would result in decreased The Building Division routinely levels of customer service and receives compliments regarding coordination of field operations. It our excellent customer service. could inhibit our ability to conduct A key component is the ability same day inspections. Without the to conduct same day inspections ABO position and with new laws of the construction projects involving more inspection on under construction. The City's existing structures,the remaining building inspection is currently two building inspectors will be operating at a very high level of severely challenged to continue to efficiency,using fewer provide inspections on the same resources than other cities to day they are requested,which is the provide inspection services. current level of service. While other cities surveyed had Re-structuring with a BPC position as many as 1.33 inspectors per will create another position 10,000 of population,with the required to obtain a Building average being.83,the City uses Inspector Certification.This will only.23 inspectors per capita. provide the third position to do The efficient operation within overflow inspections that will help the Building Division which can allow the Division to maintain its be attributed to several key same-day inspection level of issues. service. • We have an excellent computer program that allows us to schedule work in an efficient manner; • We have an effective Plan review process that results in clear and concise sets of ply; • The ABO position provided a third inspector to perform inspections on an as-needed basis when two inspectors were not sufficient. • We have been augmenting the plan review and inspection staff with a contract position that would be lost this year;and • Our building inspectors are well trained and have been working at levels that are above industry standards. Due to our high standards and proven efficiencies which result in daily -34- 2009-11 Operating Budget Reauction Options COMMUNITY • • DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 availability of the Building Inspectors we can collaborate better with the contractors performing the work and provide safer buildings within the community. Over-the-Counter Permit With the loss of the ABO we would Approvals: have a reduced ability to provide as Another area of higher than many over the counter approvals; normal customer service is our which could result in more or all ability to process over-the- construction applications needing counter permits. We routinely to be submitted for review. Even a hear comments from the 2-5 day review and approval development community process for some permits will regarding how customer represent a decrease of customer friendly our counter operations service. Restructuring to include are. We process over 50%of the BPC,which would be a the construction permits position with authority to review through the front counter and approve certain permits at the services we provide. This is counter,would allow us to continue often a collaborative process to provide over the counter permits that occurs with several and maintain this level of service. interactions at the counter with the applicants in order to develop a plan that is subsequently approved at the counter. The ABO is responsible for front counter service 50%of the time and therefore is a critical factor in providing this service. Additionally,having well trained journey level staff to provide these consultations is a must to providing this service. Code Enforcement Program: Loss of this position would The Assistant Building Official negatively impact the code serves a major role in the enforcement program. Without an training of Code Enforcement intermediate position to help with and Building Inspection staff. the daily questions the CBO could Additionally,this is a key be impacted and it would affect the position that helps with division's ability to carry out the oversight of the daily operations increasing number of program of the Code Enforcement objectives. Restructuring to Program. When questions arise provide a BPC would result in regarding complex code more versatility for the division and interpretations the Code better enable the CBO to work Enforcement Officers and effectively on all program Building Inspectors would objectives. consult with the ABO first so as not to impact the CBO with an -35- �Y �� 2009-11 Operating Budget Reauction Options COMMUNITY • • DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 undue amount of activities. Often this consultation is all that is required to provide adequate information for staff and they are able to continue with their duties. Additionally,the code enforcement program has recently undergone significant enhancements. During the 2007-09 Council Goal setting process,the Neighborhood Wellness and Community Appearance resulted in implementation of several new programs that intensifies the activities of staff including: • Neighborhood Wellness Work Program • Safe Housing Initiative • Enhanced Sign Enforcement Program • These enhanced activities impact the ABO position and the Building Inspectors as well. Code Enforcement—Expiring The ABO is primarily responsible Permits: for this program and loss of this Building permits are subject to position would result in delays in expiration when work has been following up with expiring permits. abandoned or stalled for more These duties would be added to the than six months. At one time BPC through the re-structuring and the building Division had over would enable us to continue to 700 expired permits that ensure proper follow-up and code required an excess amount of complying structures. follow-up to resolve pending code violations. Since the inception of this code enforcement program we have curtailed the number of properties that have unfinished work thereby ensuring that the buildings are safe and in compliance with the codes. This program requires the Building Inspectors to conduct numerous additional inspections in order to obtain code compliance or supplemental permits to ensure work is done. -36- 2009-11 Operating Bud et Reauction 011tions_ COMMUNITY DEVELOPMENT DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Succession Planning: Elimination of the ABO position The City had identified the need will interfere with the succession to establish a Succession Plan in plan within the Building Division. order to prepare staff for Building Division staff members pending vacancies throughout view this position as an additional the organization. Several promotional opportunity and a way initiatives were approved to prepare for the CBO position. recently to help establish a clear Division staff whom are preparing hierarchy and potential career for the CBO position exhibit a paths that would increase the higher level of professionalism; potential for qualified they often bring increased levels of candidates when vacancies diversity to the Building and Safety occur. The creation of the Division in an effort to implement Assistant Building Official was programs and services. identified as a critical path to fulfilling the objectives of the Succession Plan. A function that may be lost as a result of eliminating this position is preparing staff for the role of Chief Building Official by taking on interim assignments during absences. State Laws Taking Affect: Impacts of New State Laws- Generally: During the next financial planning period there will be The ABO position would have more new State laws affecting played a key role in the the Building and Safety development and implementation Division than usual. Below is a of all the new State laws. Loss of summary of newly adopted state this position will require that laws that would have significant implementing the new laws will impacts on the Building become the responsibility of other Division and lesser impacts on staff members in the Division. Re- the other Community structuring will provide a versatile Development Department position that can do more to pick of Divisions. the slack from several positions in the Division,however,regardless SB 1608—Disable Compliance of the re-structuring,review and Specialist Act approval times are likely to be By July 2010 local jurisdictions prolonged because there are so must be ready to enforce the changes in the regulations to be provisions of this law. It would implemented during the next two result in having at least one year period. Building Inspector become a State Certified Access In addition to preparing the Compliance Specialist in order implementation programs and to inspect and certify buildings changing the City's codes,plan within our jurisdiction. It review and inspection staff will obligates all jurisdictions need to attend training and be ready throughout the State to provide to enforce the new codes. an inspection service to building permit applicants and tenants of -37- '/ l Pe d 'i9�yj., f,-x2r a 2009-11 Operating Budget Reauction Options COMMUNITY • • Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 commercial buildings in order Specifically: to verify disabled access compliance. As a result of the Disabled Access Compliance Law. inspection we must have a This will require development of a certification process in order to computer program,scheduling and follow-up regarding any conducting inspections and a public corrective action that the outreach program.These tasks will building owner has taken to have to be shared by the CBO,the achieve access compliance,then BPC(if restructuring request is issue a certificate of compliance approved)and building inspectors. and ultimately maintain records for all properties inspected. At Additional plan checking and least one Building Inspector inspection components will be would need to obtain the additional work shared by the certification by July 1,2010 and CBO,the Plans Examiner,BPC(if by 2014 two additional staff restructuring request is approved) members would be required to and building inspectors. be Certified Access Compliance Specialists. The law allows that we establish a fee in order to recover our costs of providing this service. Updated Energy Regulations: Effective August 2009 there would be more stringent energy regulations resulting in more oversight and collaboration of plan details and more in-depth inspections to verify the installations are consistent with the stricter energy laws. 2010 California Building Without the ABO position,the Code(Adoption of the IRC) CBO will now do most of the work Within this budget cycle the identifying existing code sections Building Division would be to be replaced,reviewing existing adopting new construction codes sections that will remain for codes(This occurs every three consistency with the new code years). Typical code updates requirements,and preparing would include over 400 changes ordinances and training programs. or upgrades to the codes. Last Without the ABO position,the year there were thousands of CBO,with the assistance of the changes incorporated into the Plans Examiner and in coordination process because we were with planning staff,will integrate adopting the provisions of the the newly required codes into the International Building Code. City's codes. Training of various Similarly,this time we would City staff will be coordinated by be converting to the the CBO. A public outreach International Residential Code program is also a desirable as the core code for residential component of implementing the construction resulting in a new codes. Primary higher than usual number of responsibilities of the outreach -38- ��/�V -� �. 2009-11 Operating Budget Reuuction Options COMMUNITYDEVELOPMENT DEPARTMENT Staffing • • - Staffing FTE Description Service Impact Temp Regular 2008-10 2010-11 code changes. We would begin program would revert to the CBO our analysis prior to the actual with assistance from the Divisions code change so we can Permit Technician,and other staff incorporate appropriate analysis as-available. into the Development Review process. Green Building Code: Unlike any code changes in the past,the code adoption process this time would include new Green Building Standards. As a result of AB 32 and other global warming initiatives,code development organizations, consultants and government agencies have been working to establish minimum standards to limit the impacts to the environment. California has adopted a Green Building Code and for the fast time these standards would be mandatory for all projects,not just on a voluntary basis. Work would begin within the Community Development Department during 2009 to evaluate these regulations and establish new criteria for our planning and construction applications in order to prepare the applicants and property owners for implementation of the upcoming regulations. There would be a public outreach component in order to get the design professionals in the loop to make this as smooth a transition as possible. Storm Water Regulations: Developing a Post-Construction The City has submitted the final Runoff Program will be the version of its storm water responsibility of the CBO and the management plan to the inspection staff. RWQCB and it is expected to be approved with minor Summary of Measures to modifications to the plan's Respond to Impacts: BNIP's. Under the current It is anticipated that 50-60%of the BMP's,the Building division duties and responsibilities of the would need to follow-up on 51 Assistant Building Official will items and based on the current revert back to the Chief Building proposal of moving the program Official. This will significantly forward without a Storm water impact the workload of the Chief -39- 2009-110 peratinBudget Reauction Options 4ffl ° COMMUNITYDEVELOPMENT DEPARTMENT Staffing • • - Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Manager,several of the items Building and limit the number of may have significant impacts to programs the Division will be able the division. Development of a to execute at the same time. The post construction runoff remaining duties would be spread program is expected to include: amongst other staff in the division I)Creation of standards that which will add to the range of their would be applied to projects in duties and is expected to reduce the the planning application high level of customer service process. currently provided(same-day 2)Establishment of criteria for inspections and over-the-counter training inspectors and code permits),though the staff will strive enforcement personnel to to maintain these services. Due to conduct site inspections. this shift in the organizational 3)Initiating code enforcement structure the Chief Building efforts as necessary. Official would rely more heavily 4)Maintaining records of on the Plans Examiner,the compliance with the storm proposed Building Permit water plan and, Coordinator,and the journey level 5)Coordinating the reporting of Building Inspectors and Code the results of compliance Enforcement officers to carry out efforts,and the functions of the Division. 6)Evaluating the program and implementing changes to enhance our efforts. The BMP's include activities that would impact Building Division staff that are not included in our current work programs. All levels of staff would be expected to help fulfill the obligations of this un- anticipated workload; the impacts to the division would be moderate at the least. ADMINISTRATION(40100). - 26. Not eliminating the Not eliminating the Supervising $12,300 $12,700 Supervising Administrative Assistant position Administrative Assistant and not creating an Administrative position and not creating Analyst position would reduce the an Administrative mitigation measures necessary to Analyst position will save limit the service impacts if the $12,300 in 2009-10 and Associate Planner position is $12,700 in 2010-11. eliminated. These mitigation measures include improved Cost Savings: 2009-10 administrative analysis,public Supv.Admin. Asst. +$79,400 information,and other special Admin. Analyst -$91,700 projects. If the reclassification Total Savings $12,300 does not occur,and the Housing Programs Manager continues to Cost Savings: 2010-11 oversee Long-Range projects,there Supv. Admin. Asst. +$83,000 would be a service impact to the Admin.Analyst -$95,700 C.D.B.G.grant administration, Total Savings $12,700 creation of a digital file system for -40- l }_�� I.. 7 2009-11 Operating Budget Reauction O tions COMMUNITY - • - DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 affordable housing tracking, additional affordable housing grant application,website maintenance, assistance with affordable housing agreements,monitoring escrow process,preparing First Time Home Buyer's agreements, vouchers,strengthening community outreach through a newsletter and brochures. In addition,there would be a service impact to the division managers because the responsibilities of all City Manager Reports would remain with them, leaving less time to focus on improving department efficiencies. The production of additional reports and analysis on revenue projections related to development review and building activity would not occur. The position would also not become the primary point of contact for the Economic Development Manager for inquiries regarding development activity and reports. An evaluation on the process for discretionary and advisory body review—looking to approve some projects at lower levels in order to reduce the necessary amount of processing,would not occur. In addition,a benchmark analysis of comparable cities for ways to streamline the development review process would also not occur. In addition to the service impacts listed above,there would be a reduction in the level of managing customer expectations and proactively informing the public that development review would take longer. There could be a reduction in actively managing the customer service program, communication and outreach. -41 - 2009-11 Operating Budget Reuuction Options COMMUNITY • - DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 LONG RANGE PLANNING RESTRUCTURE(40400),' 27. Reduce Contract Services Further reductions would limit the $10,400 $11,200 ability of the division to use outside help to augment staff skills or to complete special studies to support general plan implementation programs. TOTAL 0.25 2.0 $280,700 $293,200 -42- " ���� is ba J: a 2009-11 Operating Budget Reuuction Options RECREATION • • - Staffing FTE Description Service Impact Temp Regular 2009-10 2010.11 TEENS,SENIORS,,BOOMERS-_-- ... . 1. Contract Classes and Parks and Recreation would no 0.70 $12,700 $12,700 Activity Guide. Eliminate longer provide contract classes. the contract class program, associated staffing and one Medium to significant impact, Activity Guide. possibly on the number of affordable enrichment $21,600 Salary opportunities for children,i.e. $ 3,800 PERS martial arts,tennis,dance,soccer, $ 2,400 Health Benefit horseback riding. Opportunities $ 300 Medicare exist in private sector,although $ 100 Unemployment fees may be higher. Enrichment $28,200 class programs are offered through Cuesta College,SLO Instructors payments Coastal Unified School District ($53,600) Adult Ed(parent participation I Activity Guide($8,700) classes only)and Osher Lifelong Instructor Supplies($500) Learning Institute(Cal Poly),but with some age and attendance restrictions. Associated loss of revenue of $78,300. Would continue to produce two Activity Guides per year: one in May for summer and one in September for the school year.. Could possibly see offsetting revenues in facility rentals due to rooms opening up for rental by the public. Responsibilities of Recreation Supervisor would change with reassignment of duties. If in the future the Department wanted.to reinstate the Enrichment Class program,it could do so with minimal difficulty or loss of momentum since we have facilities to use. Could lose some credibility with the community. 2. Junior Giants. Eliminate Minimal impact. The Junior 0.29 $9,800 $9,800 funding for Junior Giants Giants summer baseball program, Program. a program created to outreach to the diverse youth population in $5,700 Salary Savings our community,will continue to $100 Medicare be offered through the use of $5,800 volunteer coaches and sponsorships. Transportation—Junior Giants($4,000) Significant impact if the program -43 - 7 WT 2009-11 Operating Budget Reuuction Options PARKS & RECREATION DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 is cancelled due to an inability to locate volunteer coaches and sponsorships. ADMINISTRATION 3. Recreation Manager The Recreation Manager plans to $19,300 $20,000 Retirement. Not filling the retire at the end of April 2010. Recreation Manager's Although reorganization most position upon retirement in likely will occur at that time, April 2010 until the end of without additional research and the fiscal year will save the analysis,the exact nature of that following: restructure is unknown. One option includes eliminating the Recreation Manager's position,. 2009-10 with the creation of a Deputy $ 14,700 Salary Savings Director position and an $ 2,600 PERS Administrative Analyst position. $ 1,600 Health&LTD This would result in$20,000 in $ 200 Medicare savings in 2010-11. $ 100 Unemployment $ 100 PARS During 2009-10,staff will $19,300 conduct an analysis of the department to determine the most 2010-11 efficient and effective structure Estimated restructuring for the organization. Regardless savings: $20,000 of the outcome,it is likely at least $20,000 in annual savings will be achieved. 4. Grants-In-Aid. Reduce Medium to significant impact $25,200 $25,200 Facility Enhancement Grants anticipated. Reduced funding to administered by the Joint Use the Facility Enhancement Grant Committee(JUC).Eliminate program means reduced Mayor's Youth Task Force allocations to grantees or number (MYTF)grant program. of field improvement grants funded. $20,000 remains $14,500—Facility available for Youth Sports Enhancement Grants Association for field improvements to School District $10,700—MYTF Grants fields. Joint Use Committee (JUC)has reviewed and concurs with recommendation;the JUC would like to address funding the grant program again in two years. Significant impact anticipated with the elimination of the Mayor's Youth Task Force grant program. The primary function of the MYTF is to administer the grant/sponsorship program. Eliminating the grant funding will: 1)affect the youth serving organizations within the City of -44- 2009-11 Operating Budget Reauction Options '"' /'I) PARKS & RECREATION bEPARTMENT Staff ng PTE Description Service Impact Temp Regular 2009-10 2010-11 San Luis Obispo that traditionally receive this funding and 2)most likely eliminate the need for the MYTF altogether. 5. Facility Use Grants. Minimal impact anticipated. $6,500 $6,500 Suspend funding for two Reduced funding means reduced years. allocations to assist local athletic groups in.renting facility space $6,500—Facility Use Grants when City and School District facilities are not adequate or available for proposed activity. The incidences of this occurring have been reduced with the opening of the Damon Garcia Sports Fields. NC has reviewed and concurs with recommendation,but would like to review impacts in two years. 6. Reduction in temporary Medium to significant impact. $24,000 $24,000 staff benefits. Suspend Would suspend indefinitely City's Limited Benefit Temporary $200/month contribution to LBT (LBT)contribution to health health care program,except to the care. $2400/year x 10 four employees currently using employees(4 remain on benefit(grandfathered in until program,grandfathered in) each vacates position). Could affect ability to attract top quality $24,000 Health Care benefits temporary employees,which was the purpose for developing the benefit program. Due to the limited amount of the benefit,few LBT employees have taken advantage of the benefit in the years it has been offered. LBT staff would continue to receive leave time and be enrolled in the Public Employee Retirement System(PERS). 7. Administration.Reductions Education and Training.Medium $8,700 $8,700 in Education and Training impact anticipated. Reduced across all divisions and funding means fewer Administration's Contract opportunities for management Labor line item. staff and commissioners to attend trainings outside the area. Local opportunities remain as does the alternative to pay for training personally. -45- 2009-11 OperatingBudget Reauction Options u PARKS & RECREATION • • - Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Education and Training Contract Labor. Moderate impact $3,000 Admin anticipated.This funding has $ 300 Facilities been used in the past for $ 600 Rec Sports completing minor construction $1,000 CS projects,purchasing signage, $ 600 TSC replacing equipment and other $ 600 SE unanticipated expenses to park $ 600 Raneers amenities(i.e.disc golf,skate $6,700 park,playgrounds,etc.)that would not otherwise qualify as Contract Labor($2,000) capital improvement projects. Eliminating funding will mean that these minor projects will not be completed. 8. Office Assistant. Medium impact anticipated. This 0.33 $7,100 $7,100 Elimination of Office position(hired in 2002 through Assistant position. Work Training Program,a program serving people with $7,000 Salary special needs)was reduced from $100 Medicare 18 to 12 hours a week during 2007-09 mid-year budget reductions. The position sorts and distributes mail,files vouchers and personnel forms, makes copies,assembles hiring and termination packets, assembles and mails various newsletters and other documents, mails paychecks that are not picked up,checks supplies and forms and recommends orders, ensures printers and copiers are usable,and other routine office duties.Elimination of this position will mean that these duties will need to be absorbed by the rest of the staff in their daily workloads. SPECIAL EVENTS. .. 9. Skate Park Program Medium to significant impact. 1.10 $19,300 $19,300 Reduction.Eliminate Eliminates all but one temporary staffing at Skate Park. staff person,therefore there is no supervision of the users,who are primarily youth,teens and young $20,000 Salaries adults.One person is retained to $304 Medicare assist with minor maintenance of $84 Unemployment the park(trash pick-up, No PERS equipment safety checks,etc.) Eliminate staff shirts.($200) Potential for unwanted uses of the park,i.e.bicycles,participants not wearing helmets,pads, p -46- 2009-11 Operating Budget Reduction Options PARKS & . • Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Reduce Skate Park disagreements,etc.Will not Construction Materials jeopardize the state hazardous ($2000) recreational activity liability coverage if rules are posted. Will Will reduce revenues by up need to pass an ordinance which to$3,300/year. permits the police to cite non- compliant users. With the new skate park equipment,the need for intense maintenance is reduced for a number of years. Funding has remained for fence,half-pipe and minor maintenance. 10. Triathlon Volunteer Medium impact. Will need to 0.13 $2,600 $2,600 Assistant.Eliminate rely on Recreation Supervisor, temporary part-time position. intern or volunteer to provide support to Limited Benefit $2,500 Salary Temporary staff for recruitment $50 Medicare and donation requests. $10 Unemployment(no PERS) FACILITIES 11. Batting Cages.Close batting Medium to significant impact 0.40 $9,100 $9,100 cages and eliminate anticipated. Closes the batting associated staffing. cages for public use,i.e. individuals,b-day parties,sports $8,800 Salary organizations,thereby eliminating $ 128 Medicare the need to staff facility and pay $ 35 Unemployment(no for portable toilets,regularity of PERS) machine replacement,and promotions. Promotions($700) Toilets ($1400) With$16,773 of credit still Batting Machine remaining for Babe Ruth/Cal Replacement($1500) Ripken and$1,792 of credit for Girls Softball from donations Revenue target is they made to construct the batting $3500/year;actual revenue cages,City would need to make for past two years has been arrangements to allow their $200042900. usage.At this time,Babe Ruth is not interested in operating the batting cages through a lease agreement. 12. Indoor and Outdoor Medium to significant impact. 0.50 $13,700 $13,700 Facility Program Existing front-line staff would Coordinators. Eliminate have to complete more of the temporary part-tune positions daily paperwork and management that provide oversight to of facility needs,with oversight facilities staff. of Recreation Supervisor. -47- 1 6ti J',•I Xt Vit`- u 2009-11 Operating Budget Reduction Options - PARKS & RECREATION DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 $11,500-Salaries Limited Benefit Temporary and $ 2,000-Retirement Recreation Supervisor would $ 200- Medicare have to absorb duties,including $ 50- Unemployment additional staffing coordination, more time in the field to check facilities,train staff,reduce staffing levels for stand-by time, etc. Would reduce the availability of both positions to take on other duties within the department and City,i.e. covering front desk,special project requests,timely response to heavy phone call loads,hours available for desk coverage. Recreation Supervisor's ability/time to help with coordination with disaster preparedness duties,or hearing officer for the Police Department would be affected. CHILDREN'S SERVICES 13. Childcare Program.Reduce Moderate impact.Reducing staff 1.70 $31,000 $31,000 staff during early morning, (while maintaining State late afternoon and kinder Childcare Licensing's minimal program. requirements for staff to child ratios)will adversely impact the $30,500 Salary Savings quality of programming offered. $400 Medicare The reduction would limit staffs $ 100 Unemployment ability to provide individualized $31,000 and specialized care during crucial program times such as homework time. In addition,the proposed reduction would affect the Program Coordinators (LBT's)ability to respond to parent's questions and concerns as well as impact their ability to plan and implement enriching and diverse activities and learning experiences. With additional time spent in ratio,Program Coordinators will also have minimal time to spend on training staff,keeping current on childcare trends and maintaining a high quality room environment. RECREATIONAL SPORTS 14. Teen Sports. Eliminate Significant impact. Would 0.63 $10,900 $10,900 competitive portion of teen eliminate temporary staff used as sports program. coordinators,officials and coaches,and supplies for p -48- � Z 2009-11 Operating Budget Reauction Options RECREATION - PARKS & Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 $12,700-Salaries Competitive/Team sports $ 280-Retirement program at Laguna Middle $ 183 -Medicare School(girls and boys volleyball, $ 100-Unemployment cross-country,and track). Teen Supplies($1,600) Department would continue to operate the recreational teen Revenue loss is$4,000 sports program(boys and girls basketball and volleyball,track meet)and assist Middle School with selecting competitive teams. The effects would be significant for the teens if the School District fails to absorb the program, because there would be limited opportunity for competitive sports play.A program like this is traditionally operated by the School District,but was picked up by the Parks and Recreation Department over 10 years ago during budget cuts by the School District. School District has been informed of recommendation. 15. Adult Sports Coordinator. Significant impact. The adult 0.56 $14,800 $14,700 Eliminate position. sports coordinator handles the Adult Softball program,including $12,300 Salary Savings associated staff trained $ 2,200 PERS specifically for officiating and $ 200 Medicare scorekeeping softball games. $ 100 Unemployment This position has a high level of $14,800 (FY 2009-10) customer service by having to be available daily to communicate $14,700(FY 2010-11 due to with team managers on issues decrease in PERS rates) such as scheduling,weather conditions,and player conduct. Without a dedicated person,the program runs less smoothly. The adult softball program is continuing to grow despite tough economic times. Since Adult Softball teams pay for this position,the duties of the position will need to be absorbed by the Limited Benefit Temporary and the Recreation Supervisor,greatly impacting the workload of these positions. Other tasks may be eliminated from the Limited Benefit Temporary position in order to provide coordinator services to the adult teams. -49- 2009-11 Operating Budget Re-auction Options "' PARKS & RECREATION DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 16. Triathlon Volunteer Medium impact Staff will need to $3,100 $3,100 Lunches. Eliminate line solicit sponsorship/donations for item for lunches. day-of-event volunteer lunches. RANGER SERVICES 17. Ranger Services.Eliminate Significant impact to users. 0.23 $7,000 $7,000 the Environmental Education Eliminates award winning (EE)Program. environmental education program at childcare sites and Program X, $5,100 Salary Savings Junior Ranger Camp,and Ranger $1000 PERS Led Hikes. Includes staffing and $100 Medicare supplies. $6,200 Ranger Led hikes could be EE Sunolies($800) continued with an emphasis on Docent led hikes.Will search for grants to enable EE program to continue in schools. 18. Ranger Services. Eliminate Significant impact. Eliminates $2,200 $2,200 Contract Labor. funds to contract with California Men's Colony,Cal Fire or Contract Labor($2,200) Civilian Conservation Corps to assist with trail construction and maintenance in open space areas. Staff will need to solicit the assistance of volunteers/volunteer organizations to assist with trail and maintenance work. ADMINISTRATION 19. Limited Benefit Temporary This position was budgeted at 40 0.36 $12,500 $12,500 (LBT)-Aquatics. Reduce hours/week for the 2007-09 hours from 33hrs/wk to Financial Plan but was reduced to 20hrs/wk. 33 hours/week for the 2009-11 Financial Plan. This reduction $11,300 Salary Savings takes the position to 20 $ 900 PERS hours/week. $ 200 Medicare $ 50 Unemployment The ability to generate revenue at $12,450 the SLO Swim Center will not be impacted by a reduction in hours for the LBT. However,the safety of the operation could be affected. The facility is open to the public 7 days/wk.for 16 hours/day weekdays and 4 hours per day average on weekends. The supervision and training of lifeguard and instructor staff is managed by the full-time -50- 2009-11 Operating Budget Reauction Options PARKS & RECREATION DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Supervisor—Aquatics and the 33 hour/week LBT. The work schedule is split to provide the maximum amount of supervision for temporary staff. Reducing the LBT position to 20 hours/week will substantially limit supervision and training to staff during hours of peak user loads. This lack of supervision could significantly affect the safety of the pool's operation,the service levels available and response time to users. All other duties performed by the LBT will continue to be absorbed by the Recreation Supervisor. Duties may not be completed as promptly/timely and the public may not be responded to as immediately. Additionally,other interdepartmental duties performed by the Recreation Supervisor,such as Cardio- Pulmonary Resuscitation training, service to PACE(City's management association),and disaster preparedness support may be curtailed to meet workloads. 20. Limited Benefit Temporary A reduction to 20 hrs/wk year- 0.28 $9,400 $9,400 (LBT)—Front Counter. round for the front desk LBT will Reduce hours from 30 hours greatly affect efficiency and per week to 20 hours per customer service levels at the week. front counter and the workloads of the full time front desk $7,900 Salary Savings Administrative Assistant and $1,400 PERS Supervisor.The Administrative $ 100 Medicare Assistant. will lose the $9,400 experienced assistance needed to process long customer lines in the mornings during the busy season and impact her ability to respond in a timely manner to countless daily phone calls.. Reduction in front counter LBT hours will impact the ability to buffer sick days and leave requests. Additionally,front counter hours of operation to the -51 - 55 ` l3 2009-11 Operating Budget Reauction Options PARKS & RECREATION Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 public will be reduced from 8:00 —5:30 to 9:00—5:30 and some absences will need to be backfilled with costly clerical pool temporary staff. Ultimately,any void in coverage of the front desk or non- completed tasks will fall to the Supervisor and in turn,impact that position's ability to accomplish necessary office manager duties or assistance to the department or other departments. 21. Limited Benefit Temporary Medium impact. If all budget 0.14 $12,200 $12,200 (LBT)—Public Information reduction options are Officer. Reduce hours from implemented,the workload of the 35 to 30hrs/wk and Public Information Officer(PIO) restructure position from City will be reduced by one Activity Worker VII to City Worker Guide and all news releases VI. dictated by the Enrichment Class program. $10,300 Salary Savings $ 1,800 PERS The LBT career series provides $ 100 Medicare movement through City Worker $12,200 V and City Worker VI classifications. For some reason, this position and that of Children's Services were moved into the City Worker VIII classification,which is inconsistent with department practice. Both of these positions are being restructured as a cost reduction option. 22. Limited Benefit Temporary Moderate impact. Reducing the 0.07 $9,300 $9,300 (LBT)—Children's Children's Services LBT hours Services. Reduce hours from would limit the time allocated to 32 hrs/wk for 42 wks to 30 managing the subsidized care hrs/wk for 42 wks and 40 program. Currently over 120 hrs/wk for 10 wks to 35 families are receiving subsidized hrs/wk for 10 weeks. care through both the Economic Restructure position for City Opportunity Commission and the Worker VII to City Worker City's scholarship program. The VI. primary role of the LBT position is to ensure proper paperwork is $7,800 Salary Savings received and processed so that $1,400 PERS payments for care are received in $ 100 Medicare a timely manner. With limited $9,300 hours there may be a delay in receiving payments,processing -52- I•; 2009-11 Operating Budget Reduction Options PARKS & RECREATION DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 paperwork and responding to questions and inquiries regarding these programs. All other duties performed by the LBT,such as processing new hire paperwork and training,file management,purchasing of program materials and other administrative duties will be shared by the Recreation Supervisor and Coordinator. Duties may not be completed as promptly/timely and there may be delays in responding to the public. Additionally,other duties performed by the Recreation Supervisor,such as representation on county-wide advisory boards and special event support may be curtailed to meet workloads. 23. Limited Benefit Temporary Moderate Impact. This position 0.28 $10,300 $10,300 (LBT)—Teens. Reduce oversees the after-school teen hours from 40 hrs/wk to 30 program(Program X),teen hr/wk. special events,Jr. Giants summer baseball program and Quest $8,700 Salary Savings summer job skills program. The $1,500 PERS Recreation Supervisor would $ 100 Medicare assume duties/responsibilities that $10,300 the LBT would be unable to complete due to the reduction of hours.Consequently,other duties performed by the Recreation Supervisor,such as representation on county-wide advisory boards and special event support may be curtailed to meet workloads. 24. Limited Benefit Temporary Moderate Impact. This position 0.14 $5,200 $5,200 (LBT)—Special Events- oversees the community garden Reduce hours from 35 program and skate park staff,and hrs/week to 30 hrs/wk. assists with special events. With possible expansion of the $4,300 Salary Savings community garden program,there $ 800 PERS would be less time focused on $ 100 Medicare existing gardeners. Duties of the $5,200 eliminated triathlon volunteer coordinator would fall back upon the LBT and the Recreation Supervisor to secure volunteers and sponsorships for the event. 13 y' -53- 2009-11 Operating Budget Rectuction Options RECREATIONPARKS & • • - Staffing FTE Description Service Impact Temp Regular 2009.10 2010.11 25. Limited Benefit Temporary Moderate to Significant Impact. 0.08 $3,100 $3,100 (LBT)—Recreational This position handles the youth Sports-Reduce hours from and teen recreational sports 33 hrs/week to 30 hrs/wlc programs,supports adult and boomer recreational sports and $2,600 Salary serves as the registrar for the SLO $ 500 PERS Triathlon. $3,100 If the Adult Sports Coordinator position is eliminated,a portion of the daily responsibilities will fall to the LBT. With the volume of work that is required to handle over 1000 Triathlon registrations in conjunction with the summer adult softball leagues,there will be service impacts for both programs and will also add to the Recreation Supervisor's workload. 26. Limited Benefit Temporary Moderate impact.These 2 0.28 $10,400 $10,400 (LBT)—Ranger Services- positions oversee the Ranger Reduce hours from 35 Services environmental education hrs/week to 30 hrs/wk. (2 program,open space Rangers) maintenance,new trail construction,mitigation site $4,300 Salary work,homeless camp posting and $800 PERS cleaning,and spend significant $100 Medicare time patrolling. By eliminating 5 $5,200 x 2=$10,400 hours per week from each position the rangers' response time for the above listed activities will be much delayed. This reduction would eliminate 520 hours of time spent in the field performing the duties specified above. The extra duties will be absorbed by the Supervisor. Other interdepartmental duties performed by the Supervisor, such as Transient Taskforce, Neighborhood Service Team, Safety Committee and special events may be curtailed to meet expanded workloads. -54- /'�r � 2009-11 Operating Bud et Recruction O tions PARKS & RECREATION DEPARTMENT Staffing FTE IIIIIIIIIIIIMIMI Description Service Impact Temp Regular 200910 2010-11 27. Limited Benefit Temporary Significant Impact. The position 0.15 $5,700 $5,700 (LBT)—Facilities-Reduce handles the facility reservations hours from 35.5 hrs/week to for City recreation buildings and 30 hrs/wk. parks. With the potential loss of the program coordinators $4,800 Salary responsible for indoor and $ 800 PERS outdoor facilities,those tasks, $ 100 Medicare such as scheduling staff and $5,700 handling user requests,will fall to the LBT to perform,along with the daily facility desk duties. This position has a high level of public contact that can be demanding at times and is noticeable when the desk is not fully staffed. The Recreation Supervisor will have to absorb some of the duties, particularly when there are last minute requests and issues that would normally be handled by the LBT during the regular work week By taking on additional tasks,the Supervisor will have less time to assist in functions outside the department that are valuable,such as disaster preparedness support and serving as a hearing officer for the Police Department. --. RECREATIONALSPORTS : -- 28. Youth Basketball.Eliminate Significant impact.The program 0.20 $3,000 $3,000 one official/site. currently has 3 employees at each game site: two referees and one scorekeeper. Currently,one staff person(the scorekeeper)serves as the site supervisor at gymnasiums leased from the school district or at the Ludwick Center. Two paid referees(staff)would be available to ensure the integrity and safety of the program; having someone immediately available to check on the facility would fall to one of the officials,which could affect the games,especially at the upper ages where tighter supervision is needed. Would need to backfill scorekeeper position with volunteers/parents. TOTAL 8.55 j j $308,100 j $308,700 -55 - 2009-11 Operating Budget Reatiction Options PUBLIC WORKS DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 CREEK&FLOOD PROTECTION 1 Eliminate Storm Water Manager The City's Storm Water 1.0 76,400 79,400 Position.Eliminate one regular 1.0 Program implementation will FTE vacant Storm Water Manager have to be assumed by a wider position and increase the General group of staff through several Fund commitments for the Industrial departments,including the Waste Manager(.10 FTE to.20 FTE) Utilities Department Enterprise and the Utilities Conservation fund. Manager(0 FTE to.20 FTE). The Enterprise fund may need 100.50320.7010—Regular Staffing to be compensated. Amounts Implement Date:July 1,2009 of proposed compensation have been included.Other Net Reduction, departments will have to agree 2009-10 to prioritize this workload over Storm Water Manager=$119,929 other workload in order for the Increase Industrial Waste Manager to.20 FrE (0.3) =($22,601) Storm Water Management Increase Utilities Conservation Mgr to.20 Plan to be implemented during FrE=($20,971) the next two years. Net Reduction=$76,356 2010-I1 Storm Water Manager=$123,900 Industrial Water Manager=($22,601) Utilities Conservation Manager=($21,863) Net Reduction=$79,436 2 Reduce Stormwater Laboratory Lower lab costs expected in 2,000 2,000 Supplies. Reduce$10,000 annual first years of program. No operating budget by$2,000 annually. significant impact expected. 100.50320.7831 Implement Date:July 1,2009 3 Reduce Stormwater Department Lower amount of printed 4,000 4,000 Printing&Reproduction. Reduce materials;however,based on Stormwater Department Printing& limited experience, it appears a Reproduction operating budget by cut in budget may be realistic. $4,000 annual($15,000 annual budget). 100.50320.7283 Implement Date: July 1,2009 4 Reduce Stormwater Department Costs not expected to exceed 7,000 7,000 School Education Presentation this amount based on prior Contract Services. Reduce the year experiences,and County Stormwater Dept. school education work effort assisting in presentation contract services budget presentations for grade school by$7,000 annually (Mike DiMilo) education program. (annual budget$12,000) 10050320.7227 Implement Date: July 1,2009 -56- 'b7'll 0 2009-11 Operating Budget Reauction Options PUBLIC WORKSDEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 5 Eliminate.5 FTE Heavy This reduction will have an 0.5 41,500 42,500 Equipment Operator&.5 FTE impact on achieving the Major Temporary Staff and Add.5 FTE City Goal of effective Maintenance Worker I position. Infrastructure Maintenance. Eliminate vacant.5 FTE Heavy Sweeping would be eliminated Equipment Operator(Creek&Flood on weekends in the Protection Program)&.5 FTE Downtown,or need to be Temporary staff(Streets reduced in other areas of the Maintenance)and add.5 FTE regular City during the week. position Maintenance Worker I Assuming the other sweeper position(Streets Maintenance). operator(full time)takes off 4 weeks per year between 100.50320.70 10—Regular Staffing vacation and sick leave,his 100.50300.7014—Temporary routes will have to be covered Staffing by other street maintenance 0.5 (0.5) 100.50300.70 10—Regular Staffing personnel,where previously Implement Date:July 1,2009 the work was covered by this position. The direct impact to Net Reduction. other street maintenance 2009-10 activities is a reduction in Eliminate Heavy Equip Operator.5 FFE= productivity of 160 hours/yr. $47,087 Eliminate Temporary Staff.5 FIT $39,245 Add.5 FrE Maintenance worker I= Regular debris hauling would ($44,778) be assumed by the street maintenance staff,reducing 2010-11 their ability to do repairs. The Eliminate Heavy Equip Operator.5 FrE= direct impact to the street $46,680 program is approximately 12 Eliminate Temporary Staff.5 FrE_$40,558 Add.5 FCE Maintenance Worker I= hours/wk or 624 hours/yr. ($44,731) GEOGRAPHICAL INFORMATION SYSTEMS 6 Defer GPS Replacement. Defer This deferment has a low 60,000 GPS replacement. This was a CIP impact as equipment is approved in 2007-09 Financial Plan. outdated,but still operable. The decision to defer and apply towards operating budget was Staff will attempt to find used approved by Finance. replacement parts if needed,or postpone GPS work. 40050450.90777956.90777400.90777956 Implement Date:July 1,2009 GPS replacement has been deferred as a CIP in 2011-12. Net Reduction. 2009-10 GPS Replacement=$60,000 2010-11 GPS Replacement=$0 BUILDING MAINTENANCE . -57- ��� �� 2009-11 Operating Budget Reauction Options PUBLIC WORKS DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009.10 2010-11 7 Eliminate Building Maintenance Canceling this contract will 14,900 14,900 HVAC Controls&Maintenance cause delay in repair response Contract. Cancel the Building time,leaving the HVAC Maintenance Division HVAC control system inoperable for a Control&Maintenance contract in longer time.Building the operating budget for Contract Maintenance staff will attempt Services($14,900 annually). some repairs,but some problems will not be repaired, 100.50230.7843 unless other funds can be Implement Date:July 1,2009 found during the year. PUBLIC WORKS ADMINISTRATION 8 This reduction will result in an (0.2) 1.0 11,400 85,600 Eliminate Administrative Services increase in the workload of Manager Position. Eliminate the other management personnel Administrative Services Manager who take on additional duties position in Public Works formerly performed by this Administration as of May 1,2010. position. The Backfill costs in 2009-10 First Level Impact: Workload include an increase for temporary Shifts to other supervisors and staffing funding and temp staffing program managers as yet not plus retirement buyout calculation finally determined: received from Finance in 2010-11. I) Possible GIS reassignment 100.50100.7010—Regular Staffmg to(Finance/IT or Direct Report 100.50100.7014—Temporary to Deputy Director Staffing Transportation) Implement Date: May 1,2010 2)Possible Bldg Mgmt,Fleet &PW Admin Supervisors to Net Reduction. report to PW Director. 2009-10 3)Administrative Analyst to Eliminate ASM Position 2 months salary take on additional duties. savings=$21,412 Temporary Staffing=($10,000) Second Leve]Im act: Net Reduction=$11,412 p Routine fiscal duties 2010-11 (purchasing,Invoices) Eliminate ASM Position=$128,288 reassigned to Administrative Temporary Staffing=($10,000) Supervisor resulting less time Retirement Buyout=($32,678) to support to CIP and other Net Reduction=$85,610 department programs. BUILDING MAINTENANCE 9 Reduce Cleaning Frequencies of The building common areas 14,900 14,900 Janitorial Contract(Parks&Rec). (bathrooms&meeting rooms, Reduce the janitorial services in break rooms)and office/suite recreation buildings from 5 areas will go un-serviced over days/week to 3 days/week(Ludwick selected days.There may be Center,City County Library,Senior some issues arise where paper Center,Meadow Park). supplies are temporarily unavailable. 100.50230.7227 -58- - /a0 2009-11 Operating Budget Reauction Options WORKSPUBLIC Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Implement Date:July 1,2009 Net Reduction. 2009-11 Reduce Frequencies=$14,960 10 Reduce Cleaning Frequencies of The building common areas 39,800 39,800 Janitorial Contract(Buildings). (bathrooms&meeting rooms, Reduce the janitorial services in break rooms)and office/suite office buildings from 5 days/week to areas will go un-serviced over 3 days/week(City Hall,888 Morro, selected days.There may be 879 Morro,919 Palm,Parks&Rec some issues arise where paper Offices,Corp Yard). supplies are temporarily unavailable. 100.50230.7227 Implement Date:July 1,2009 Net Reduction. 2009-11 Reduce Frequencies=$39,780 11 Reduce Cleaning Frequencies of Office area down stairs will 5,200 5,200 Janitorial Contract(Fire). Reduce have a reduced level of the janitorial services at Fire Station cleanliness.The site is only #1 from 3 days/week to 2 days/week. serviced 3 times per week;If needed,more frequent 100.50230.7227 servicing could be done by Implement Date:July 1,2009 Fire personnel. Net Reduction. 2009-11 Reduce Frequencies=$5,251 12 Reduce Periodic Janitorial This will reduce available 12,900 12,900 Cleaning. Reduce periodically funds for periodic janitorial requested janitorial task funding by tasks such as: cleaning of 45%for all locations listed above: windows,carpets, furniture, Recreation Buildings,Buildings& and tables. It will eliminate Fire Station. funding for shower scrubbing and resilient floor refinishing. 100.50230.7227 The results will be dirty Implement Date:July 1,2009 windows and carpets with premature wear in reserved Net Reduction. public use building locations, 2009-11 and many complaints about Buildings=$668 dirt,stains and grime from P&R=$11,865 deferred maintenance. Fire= $580 Net Reduction=$12,933 STREET MAINTENANCE -59- ��i t✓� 2009-11 Operating Budget Reauction Options PUBLIC O. DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 13 Reduce Streets Maintenance Contract CIP paving work 84,000 86,200 Asphalt budget. Reduce Streets would be diminished by this Maintenance Division operating amount.This impact is not budget for asphalt by 75%and expected to be significant as charge all pavement zone area the Streets crew has previously asphalt to CIP project account. charged the Street ($112,000 in 2009-10&$115,000 in Reconstruction&Resurfacing 2010-11) CIP for asphalt costs. 100.50300.7761 There will be some decrease in Implement Date: July 1,2009 the ability to pave streets,but increased efficiencies from Net Reduction. new paving equipment are 2009-10 anticipated to largely offset the Reduce by 75%=$84,000 loss of these funds. 2010-11 Reduce by 75%=$86,250 TRANSPORTATION PLANNING&i ENGINEERING 14 Eliminate Transportation Division This will result in a moderate (0.5) 13,000 13,000 Contract Services. Eliminate all of increase in workload for the Transportation Division existing staff.May result in operating budget of$32,700 annually minor delays to citizen request for Contract Services and internalize response time. Would be various minor functions that are partially offset by additional typically contracted. temporary staff,but not entirely because of the lower Increase Temporary staffing funding level of traffic knowledge. to provide similar services as previously contracted at a reduced (approximately 67%)rate. (Temp Staff will be used to offset staff working on the Council Work plan for Traffic Congestion Rclief). 100-50500.7227 100.50500.7014—Temporary Staffing Implement Date:July 1,2009 Net Reduction. 2009-11 Eliminate Contract Services=$32,700 Add Temporary Staffing=$19,700 Net Reduction=$13,000 -60- J�•—ta� /�8a inn 2009-11 Operating Budget Reuuction Options PUBLIC O. nPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 15 Transportation Staffing This reduction will affect the (1.0) 1.0 69,300 69,200 Reorganization.The restructuring of ability to complete work for the Traffic Engineering Division will Major City Goals-Traffic require the following: Congestion Relief, Infrastructure Maintenance and 1)Eliminate one vacant regular full- Land Use/Circulation Element time City Traffic Engineer position. Update. Outsourcing of some 2)Eliminate one regular full-time CIP work could be done,but Traffic Engineer III position. would likely cost 1 I 1%of 3)Add one regular full-time Senior gross savings of this staffing Transportation Engineer position reduction. 4)Increase Temporary staffing to This reduction in overall staff include.5 FTE for the Bicycle expertise,essentially operating Transportation Programs Assistant. the transportation division with ($12,650 in 09-10&$17,580 in 10- lower level engineers than 11 with$20K additional each year previously,will require some contributed by Transit Enterprise additional line level oversight Fund(530-50700). from the Deputy PW Director 5)Add.5 FTE Contract Engineer II and will continue the current position for backfill of line duties direct reporting of staff to the and tasks($53,483 annually). Deputy PW Director. 100.50500.7010—Regular Staffing The increase in funds for 100.50500.7012—Contract Staffing temporary staffing assumes the 100.50500.7014—Temp Staffing Transit Enterprise Fund(and 530.50700.7014- Temp Staffing possibly Parking Fund)will Implement Date:July 1,2009 assume pan of the burden of funding Bicycle Transportation Net Reduction. Programs Assistant. (proposed 2009-10 under Enterprise fund Eliminate City Traffic Engineer=$142,122 programs) Eliminate Traffic Engineer III=$130;307 Add Senior Transportation Engineer= ($137137) Additional funding for staff Add Temp.5FTE Bicycle Programs Assist= resources may be possible if ($12,650) Transportation Impact Fee Add half-time Contract Engineer 11= funding is used to backfill staff ($53,483) Net Reduction=$69,307 position to perform in-house work for the Traffic Model 2010-11 Upgrade. Eliminate City Traffic Engineer=$142270 Eliminate Traffic Engineer III=S130,307 Add Senior Transportation Engineer= ($137,137) Add Temp.5 FTE Bicycle Programs Assist= ($17,580) Add half-time Contract Engineer 11= ($53,483) Net Reduction=$69,229 PARIES&LANDSCAPE MAINTENANCE 16 Reduce Irrigation Water Use. Certain park areas would be 95,100 106,500 Reduce irrigation water use in parks converted to non-irrigated by 20%of operating budget. status using wood mulch& ($475,700 09-10&$532,700 10-11) pesticides to control -61 - ✓`T "1023 2009-11 O eratin Budget Reuuction Options PUBLICO. DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 undesirable growth. 100.50200.7603 In general,park turf would not Implement Date: July 1,2009 appear healthy and citizen complaints would increase. Net Reduction. 2009-10 This reduction would be one of Reduce Water Use=$95,140 the City's conservation efforts to lead the way for water use 2010-11 reduction. Reduce Water Use=$106,540 TRANSPORTATION PLANNING&ENGINEERING 17 Reduce Transportation Division There would be a moderate 4,200 4,200 Operating Materials&Supplies reduction in data collection budget. Reduce Transportation efficiency due to out-of-date Division Operating Materials& equipment. Supplies Budget by$4,200 annually (annual budget$6200) This may result in minor delays to response time for 100.50500.7843 traffic concerns including Implement Date:July 1,2009 Neighborhood Traffic Management(NTM). STREETS MAINTENANCE 18 Eliminate Sidewalk Repairs City maintenance staff will be 5,000 5,000 Contract. Eliminate downtown required to fix broken tiles as (mission style tile)sidewalk repair time and workload allows. contract(Streets Dept)and perform duties w/in-house Maintenance This reduction would cause Worker staff. some minor delays in response time for repair of broken tiles. 100.50300.7293 Implement Date: July 1,2009 Net Reduction. 2009-11 Eliminate Commct=$5,000 annually CIP ENGINEERING 19 Reduce CIP Contract Services. This reduction will limit the 6,000 6,000 Reduce CIP Engineering Dept ability to fund non-CIP needs Contract Services budget by$6,000 such as the special consultant (Annual budget$12,200) studies for slope stability work at Pismo Street&Chorro. 100.50410.7227 Implement Date:July 1,2009 The result will be a delay in performing studies that staff Net Reduction. does not have the expertise to 2009-11 perform. Contract Services=$6,000 annually -62- 2009-11 Operating Budget Reuuction Options PUBLIC WORKS DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 CREEK&FLOOD PROTECTION 20 Reduce General Fund Subsidy of This reduction will require a 0.2 21,000 21,000 Stormwater Program Staff. greater financial contribution Reduce Storm Water Dept General from the sewer fund to support Fund Subsidy of Utilities for WWC the storm water program. and Lab Analyst to.10 FTE from.30 FTE. The Utilities department will have to agree to prioritize this 100.50320.7010—Regular Staffing workload over other workload Implement Date:July 1,2009 in order for the Storm Water Management Plan to be Net Reduction. implemented during the next 2009-10 two years. .30 FTE=$31,533 Reduce to.10 FTE=$10,511 Net Reduction=$21,022 2010-11 .30 FTE=$31,488 Reduce to.10 FTE=$10,496 Net Reduction=$20,992 FLEET&VEHICLE MAINTENANCE ' 21 Reduce Overtime in Fleet Division. This reduction would result in 2,900 2,900 Reduce Fleet Dept overtime except no overtime being used for for emergencies by 50%,or$2,950 special fleet projects.Repair annually. ($5,900 annual budget) work time would be extended due to other higher priority 100.50340.7020—Overtime projects and normal workload Implement Date:July 1,2009 taking precedence. CIP ENGINEERING 22 Eliminate Construction Manager This reduction will have an 1.0 52,500 54,000 Position. Eliminate Construction impact on achieving the Major Engineering Manager Position in CIP City Goal of effective Engineering and add one regular full- Infrastructure Maintenance and time Administrative Assistant I1 Traffic Congestion by delaying (Step 3)for use on CIP Engineering nearly$1,000,000 per year of support. Increase overtime construction projects. allocation by$12,000 annually. This position currently 100.50410.7010—Regular Staffing supervises six inspectors. 100.50410.7020-Overtime Duties would be shifted to Implement Date: July 1,2009 Supervising Civil Engineer j � -63 - ���a 2009-11 Operating Budget Reouction Options PUBLIC WORKs bEPARTMENT Staffing FTE' Description Service Impact Temp Regular 2009-10 2010.11 Net Reduction. (Design)but would greatly (1.0) 2009-10 limit his ability to complete Eliminate Constr Mgr=$130,556 project work This reduction Add Administrative Assist 11=($66,073) will limit the ability to Add Overtime=($12,000) Net Reduction=$52,483 schedule,plan check and provide construction claims 2010-11 assistance for projects. Eliminate Constr Mgr=$14,952 Add Administrative Assist 11=($68,876) Outsourcing of design work Add Overtime=($12,000) could be done,but would Net Reduction=$54,076 likely cost 127%of gross savings of this staffmg reduction. This reduction will allow the addition of the necessary resources for processing of projects currently handled by a contract employee funded with salary savings. The addition of the Admin Asst II position for CIP support will provide much needed help for processing CIP projects that the Admin division has not been able to do with current resources. The Admin Asst II class has been proposed because of the need to provide support at a higher skill level. Specialized knowledge of contracts, bonding,insurance and multiple project coordination is desirable. Overtime allocations will need to be increased in order to maintain an effective level of CIP project inspection. FLEET&VEffiCLE.MAINTENANCE, 23 Reduce Fleet Division Operating This reduction would limit the 4,000 4,000 Materials&Supplies budget. ability to purchase mise. Reduce Fleet Divisions' operating materials and supplies materials and supplies budget by including software updates, 50%($8,000 annually) which could affect the reliability of the Vehicle 100.50340.7843 maintenance data base if Implement Date: July 1,2009 software updates are not kept current. Net Reduction. 2009-11 50%reduction=$4,000 annually _64- 2009-11 Operating Budget Reauction O tions PUBLIC WORKS DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 24 Reduce Fleet Division Overhaul& Some vehicles requiring major 8,800 8,800 Major Repairs budget. Reduce overhaul and repairs would Fleet Divisions' Overhaul and Major need to be taken out of service Repairs operating budget by 25% for extended periods until ($35,000 annually) special funding for repairs could be identified and 100.50340.7277 approved.This would include Implement Date:July 1,2009 repairs needed to fix major equipment failures and damage Net Reduction. from accidents. 2009-I1 25%reduction=$8,750 annually TREES 25 Reduce Trees Division Contract This reduction would limit the (0.3) 29,500 29,500 Services. Cut 2/3 (67%)of contract amount of trimming that could services for street tree trimming and be performed each year. With pruning and backfill w/additional 1/3 of Contract funds temporary part-time staff(West remaining,the tree crew may Coast Arborist annual budget be able to keep ahead of the $61,900) Pavement Management Plan Areas,depending upon the 100.50220.7227 work needed in that particular 100.50220.7012—Temporary area. Staffing Implement Date:July 1,2009 Special requests for trimming would not be accommodated Net Reduction. without delays to other work. 2009-11 Reduce by 67%=$41,473 annually Staff would supplement the Add Temporary Staffing=($12,000 Annually) existing crew with part-time Net Reduction=$29,473 temporary Staffmg to maintain a 3 person trimming crew per established International Society of Arboriculture standards. PARKS&LANDSCAPE MAINTENANCE 26 Reduce Parks Division Landscape This reduction will have an 79,900 81,500 Contract. Reduce scope of Parks aesthetic impact on achieving Dept.contract for landscape the Major City Goal of maintenance by approximately 36% effective Infrastructure by shifting selected sites back to Maintenance. Parks staff. Cost estimates are based on bids for the current contract. Parks staff would reorganize (Current contract amount estimate current areas of responsibility with no changes in scope: $222,000 to take on some of the areas in 2009-10&$226,400 in 2010-11) that had formerly been contracted out. Some 100.50200.7257 landscaped areas would be Implement Date:July 1,2009 converted to a passive,non- irrigated condition. Some areas would essentially be abandoned and receive only -65- 2009-11 Operating Budget Reauction Options PUBLIC WORKS Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Net Reduction. annual weed abatement. Staff 2009-10 would shift to strictly work- Reduce by 36%=$79,920 order driven maintenance rather than scheduled or 2010-11 preventative maintenance. Reduce by 36%=$81,504 Citizen complaints would increase. The ability to complete this shift assumes there is not a loss of positions in the program and replacement of the mower, currently proposed in the fleet replacement program,occurs. The new mower will allow greater efficiency/reduced mowing time. The reduction in irrigated landscape area could help the City as we emphasize more water conservation in a semi- drought period. WELDING MAINTENANCE 27 Reduce Construction Contracts This reduction will limit the 15,000 15,000 Operating Budget. Reduce the ability to complete any Construction Contracts operating unplanned repair that requires budget by$15,000 annually. a contractor(HVAC, plumbing,gas,structural, 100-50230-7219—Contracts security,cosmetic,vandalism, Implementation Date:July 1,2009 electrical,etc).Repairs of this nature that are more than the Net Reduction. remaining funds will not be 2009-10 completed without an alternate Reduce Const Contracts=$15,000 funding source. 2010-11 Reduce Const Contracts=$15,000 28 Reduce Electrical Supplies This reduction will limit the 6,000 6,000 Operating Budget. Reduce the ability to: repair electrical Electrical Supplies operating budget components,such as lights, by$6,000 annually. receptacles,motors,wiring, fixtures,etc.Repairs of this 100-50230-7791—Elect Supplies nature that are more than the Implementation Date:July 1,2009 remaining funds will not be completed without an alternate Net Reduction. funding source. 2009-10 Reduce Const Contracts=$6,000 2010-11 Reduce Const Contracts=$6,000 -66- 7 —t o�0 2009-11 Operating Budget Reauction Options - PUBLIC • - Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 29 Reduce Operating Materials and This reduction will limit the 4,000 4,000 Supplies Operating Budget. ability to purchase materials Reduce the Operating Materials and used for various Facilities Supplies operating budget by$4,000 projects.Repairs of this nature annually. that are more than the remaining funds will not be 100-50230-7843—Operating completed without an alternate Materials&Supplies funding source. Implementation Date:July 1,2009 Net Reduction. 2009-10 Reduce Const Contracts=$4,000 2010-11 Reduce Const Contracts=$4,000 PUBLIC WORKS ADMINISTRATION 30 Reduce Laundry& Linen Service This reduction would be 5,000 5,000 Contract. Reduce the Uniform noticed during the rainy season Contract Services by reducing the where more dirt/mud would be frequency of"walk-off'mats in tracked into buildings and Uniform Contract for all building there would be some potential locations by$5,000 annually,It increase for slippery floor would involve reducing walk off conditions from less frequently matt service from weekly to monthly changed out mats. for six months(spring/summer)and twice monthly for six months (fall/winter)at all locations. 100-50100-7259—Laundry& Linen Service Contract Implementation Date: July 1,2009 Net Reduction. 2009-10 Reduce Const Contracts=$5,000 2010-11 Reduce Const Contracts=$5,000 PARKS&LANDSCAPE MAINTENANCE . 31 Reduce Janitorial Services for This reduction would result in 17,100 17,500 Park Restroom Cleaning. Reduce a slight decline in Public cleaning frequencies of public restroom facility conditions. restrooms City-wide 20%annually Public complaints would likely by every-other day cleaning at select increase.Problems would be locations. responded to on an as-needed basis. 100-50200-7227—Contract Services A small increase in overtime Implementation Date:July 1,2009 use for parks staff would be required to lock restrooms at night on the days that the restrooms were not being -67- 2009-11 Operating Budget Retraction Options PUBLIC WORKSDEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Net Reduction. serviced by the contractor. 2009-10 Reduce Const Contracts=$17,140 2010-11 Reduce Const Contracts=$17,480 FLEET&VEHICLE MAINTENANCE 32 Eliminate Generator Service This reduction will limit the 7,000 7,000 Contract. Eliminate contract mechanics from completing generator service and perform scheduled preventative maintenance in house(*Fire Dept) maintenance and repairs because they will have to add 100.50340.7227 this to their duties. Service on Implement Date:July 1,2009 the generators would be limited to only mechanical Net Reduction. preventative and repair 2009-11 maintenance.No generator Eliminate Contract=$7,000 annually electrical system maintenance would be performed. PUBLIC WORKS ADMINISTRATION 33 Eliminate 0.5 FTE Administrative This reduction would result in 16,600 15,700 Assistant III. Eliminate one regular a temporary shift of workload part-time Administrative Assistant to the Supervising III(.5 FTE)in the PW Administrative Assistant while Administration Division and add the new temporary employee is Contract Staffing funding to rehire being trained: duties include employee on hourly contract basis processing timecards for entire (estimate as a City Worker VIII- dept.;employee driver's Step I ($25.30/hr)+Medicare& license update;CIP updates; Unemployment Insurance @ 960 petty cash;AP vouchers(12- hrs.per year) 15 hrs/month)for the PW Department,Tree City USA, 100.50100.7010—Regular Staffing Commemorative Tree 100.50100.7012—Contract Stafrmg Programs and Tri-annual Implement Date: July 1,2009 meetings. Net Reduction. 2009-10 Eliminate Admin Asst III=$41,301 Add Contract Staffing=($24,737) Net Reduction=$16,564 2010-11 Eliminate Admin Asst III=$41,244 Add Contract Staffing=($25,538) Net Reduction=$15,706 ?n j 2-i L`QJ ') 2009-11 QLxratina Bud et Reauction Options PUBLIC WORKS DEPARTMENT Staffing FTE Description ServiceImpact Temp Regular 1 2009-10 1 2010-11 DEVELOPMENT REVIEW . 34 Eliminate Development Review This reduction would decrease (0.25) 1.0 91,100 95,100 Engineer III position. Eliminate Development Review one vacant regular full-time Engineer resources by 20%from III in Development Review. Add 1/4 historical.With a decrease in time contract Engineer III position to development activity,a help backfill workload duties. temporary reduction in resources appears appropriate. 100.50400.7010—Regular Staffing 100.50400.7012—Contract Staffing Development Review staff Implement Date: July 1,2009 have had difficulty meeting review turnaround goals and Net Reduction. service levels.Depending on 2009-10 field vs.office needs;other Eliminate Engineer III=$121,491 positions may need to pick up Add Contract Staffing Engineer=($30.373) the deficiency areas that will Net Reduction=$91,118 affect other work groups in 2010-11 PW,CDD and the public. Eliminate Engineer 111=$126,904 Work could be offset some Add Contract Staffing Engineer=($31,726) with shared coverage of Net Reduction=$95,178 counter duties or a unified counter coverage approach for 919 Palm office so that higher level engineers don't have to backfill counter duties. FLEET&VEHICLE MAINTENANCE 35 Reduce Fleet Division Special This reduction will impact the 2,800 2,800 Equipment Installation budget. Fleet Division's ability to Reduce the Fleet Division operating update police scanners and budget for special equipment electronic repair devices installation by 50%(annual budget needed for routine $5,700). maintenance. 100.50340.7295 Implement Date: July 1,2009 Net Reduction 2009-11 50%reduction=$2,850 annually GEOGRAPHICAL INFORMATION SYSTEMS _ 36 Reduce FTE allocation for GIS This reduction will cause the 0.25 50,100 51,100 Specialist 11. Reduce the existing GIS group to prioritize the 2.5 FTE regular GIS Specialist II workload needed to maintain positions(in GIS Division)by.5 applications for other city FTE(Currently there is one 1.0 FTE departments and complete and two.75 FTE positions) mapping of private storm drain systems and perform 100.50450.7010—Regular Staffing impervious analysis for Implement Date: July 1,2009 watershed evaluation. -69- 2009-11 Operating Budget Reauction Options WORKSPUBLIC Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Net Reduction. It will result in some delays in 0.25 2009-10 completing work requests and GIS Spec Il Reduction from.5 to.25 FfE= limit the ability to start new $26.216 projects. GIS Spec II Reduction from.5 to.25 FTE= $23,888 Net Reduction=$50,104 2010-11 GIS Spec II Reduction from.5 to.25 FTE =$26,178 GIS Spec II Reduction from.5 to.25 FTE_ $24,984 Net Reduction=$51,162 PARKS&LANDSCAPE MAINTENANCE 37 Eliminate Parks Division This reduction will have an 1.0 67,700 70,700 Maintenance Worker II position. impact on achieving the Major Eliminate vacant regular full-time City Goal of effective Maintenance Worker II position in Infrastructure Maintenance. Parks Maintenance Division (specifically used for Damon-Garcia This reduction would limit the sports complex). ability to achieve the reduction of contract areas previously 100.50200.7010—Regular Staffing listed(#23). If both options are Implement Date: July 1,2009 selected,it would limit the ability to achieve an effective Net Reduction. level of park maintenance. 2009-10 Eliminate MW 11=$67,786 The park maintenance division would require considerable 2010-11 reorganization. Selected park Eliminate MW II=$70,766 locations would need to be considered for closure with staff reassignment to Damon- Garcia. Of the 2.3 FTE employees originally identified as necessary to maintain this site,only 1.5 non-benefitted temporary employees,funded through salary savings, currently maintain the facility. CIP ENGINEERING 38 Eliminate Engineer Technician III This reduction will have an 1.0 95,400 95,300 in CIP Engineering Division. impact on achieving the Major Eliminate one regular full-time City Goal of effective Engineering Technician III position Infrastructure Maintenance and in CIP Engineering Division. Traffic Congestion by delaying nearly$900,000 per.year of 100.50410.7010—Regular Staffing construction projects. Implement Date:July 1,2009 Outsourcing of design work Net Reduction. could be done,but would 2009-10 likely cost 141%of gross Tech 1I1=$95,453 -70- 6443.9- is,1 - r;:f;7 ti 2009-11 Operating Budget Reauction Options PUBLIC O. DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010.11 2010-11 savings of this staffing Eliminate Eng Tech III=$95,316 reduction. DEVELOPMENT REVIEW 39 Eliminate a Senior Civil Engineer Significant impacts will result 1.0 149,000 151,200 position in Development Review. from this reduction.It will Eliminate one regular full-time cause a much longer response Senior Civil Engineer position in the time for Development Review Development Review Division. permits and applications. All building plan check and 100.50400.7010—Regular Staffing inspection for site grading, Implement Date:July 1,2009 drainage and parking would need to revert to Building and Net Reduction. Safety in CDD. 2009-10 Eliminate Sr Civil Engr=$149,073 The City would not be able to meet environmental and permit 2010-11 statutory requirements without Eliminate Sr Civil Engr=$151,205 some backfilling of temporary resources or significant time extension for permit processing. STREETS MAINTENANCE 40 Eliminate full-time Streets This reduction will have an 1.0 74,900 74,800 Maintenance position. Eliminate impact on achieving the Major one regular full-time Maintenance City Goal of effective Worker(or Heavy Equipment Infrastructure Maintenance. Operator)position in the Streets Maintenance Division. Reducing the crew size by one will result in reduced 10050300.7010—Regular Staffing production in sidewalk repairs Implement Date:July 1,2009 and asphalt repairs and overlays.It will limit the Net Reduction. ability of the maintenance 2009-10 crew to complete necessary Eliminate MW 11=$74,861 preparation for paving construction projects,either 2010-11 reducing the quality of the end Eliminate Mw 11=$74,861 product or increasing the cost by substituting contract construction work for city staff work. This program will already be effectively reduced by a 0.5 FTE because of the need to take on the hauling work and sweeper operator vacation coverage formerly completed by the Equipment Operator slated for elimination in the Creek&Flood Protection program. _71 - E541--133 r, 2009-11 OperatingBudget Reauction Options c� ? PUBLIC WORKS DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 SIGNAL_&STREET LIGHTS 41 Reduce Signal Technician position This reduction will have an 0.5 40,800 42,900 to.5 FTE. Reduce one regular full- impact on achieving the Major time(1.0 FTE)Signal Technician City Goal of effective position to a regular part-time(.5 Infrastructure Maintenance. FTE)position in the Signal&Street Lights Division. It is uncertain whether a half time position could be filled 100.50330.7010—Regular Staffing with a qualified applicant, Implement Date:July 1,2009 given the recent difficulty in finding qualified and Net Reduction. experience signal technicians 2009-10 for the full time position. Reduce to.5 FrE=$40,828 Without a backup technician, there will be no emergency 2010-11 response coverage for the Reduce to.5 FCE=$42,918 signal technician when he is gone. Street light repair response time will be significantly lengthened.Imposition to public will be noticeable when signals malfunction or are not properly/regularly maintained. Safety issues may develop due to a lack of regular signal maintenance.Based on research completed at the time this additional position was added in 2007,the City currently falls at the median for number of signals to technician ratios. With only one technician or one and a half,it will fall well above the median. Lack of a second technician will also affect the street maintenance program because of the need to backfill and help out the technician when he needs assistance for work that requires a second person, which is frequent. This will be in addition to their impacts from the loss of the part time sweeper position. TOTAL (1.75) 9.4 1,407,700 1,454,100 -72_ 8 ���3� 2009-11 Operatin Bud et Reauction Options POLICE . . . Staffing FTE Description Service Impact I Temp Regular 2009-10 2010-11 POLICE ADMINISTRATION 1. Reducing various non-staffing Reduction in services and $13,100 $13,100 line items in contract services, supplies;lower level of building maintenance and general maintenance of janitorial supplies will save Police facilities. $13,100 each year. POLICE SUPPORT SERVICES 2. Reducing various non-staffing Elimination of address 3,800 3,800 line items in contract services verification system; and data processing services will reductions in software save$3,800 each year. upgrades and development. INVESTIGATIVE SERVICES 3. Reducing various non-staffing Reduction in use of outside 1,600 1,600 line items in laboratory services lab services for evidentiary and supplies will save$1,600 analysis and in each year. replacement/repair of camera supplies. TRAFFIC SAFETY 4. Reducing various non-staffing Elimination of camera 400 400 line items in operating supplies replacements for collision will save$400 each year. investigations. PATROL SERVICES 5. Reducing various non-staffing Minor reduction in supplies 3,000 3,000 line items in equipment for patrol staff. maintenance and operating supplies will save$3,000 each year. INVESTIGATIVE SERVICES 6. Eliminating the Juvenile Diversion Program 0.3 11,000 11,000 Diversion Program Coordinator coordination will be done position will save$11,000 each by the School Resource year(contract position—vacant). Officer resulting in some decrease in service to juveniles and parents in the program. NEIGHBORHOOD&CRIME PREVENTION SERVICES 7. Reducing crime prevention Approx. 50%reduction in 13,900 13,900 outreach and advertising and level of crime prevention related training will save$13,900 marketing and community each year. outreach materials; reduction in printed crime prevention material; reduction in training for Neighborhood Service Manager. -73- LG/��� 2009-11 Operating Budget Reuuction Options POLICEDEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 8. Eliminating the Graffiti Program There will be no dedicated 0.5 20,800 20,800 Coordinator position will save staff position to coordinate $20,800 each year(contract Graffiti Program;existing position—vacant). Police Dept.staff will continue coordination of program,possibly assisted by volunteer coordinator and summer intem. PATROL SERVICES 9. Eliminating one vacant Police The planned Neighborhood 1.0 139,200 143,700 Officer position effective 7-1-09 Team will be reduced to will save$139,200 in 2009-10 two officers and the and$143,700 in 2010-11 program redesigned (regular staffing—vacant). Total accordingly;reduction in savings include salary&benefit officers will cause increased costs,and non-staffing line item response times and savings in hiring and equipment decreased outreach to costs pro-rated at$1,700 per neighborhoods from officer in 2009-10. original plan. Position is currently vacant and Neighborhood Team does not currently exist. 10. Eliminating one vacant Police The planned Neighborhood 1.0 139,200 143,700 Officer position effective 7-1-09 Team will be reduced to one will save$139,200 in 2009-10 officer and the program and$143,700 in 2010-11 redesigned accordingly; (regular staffing—vacant). Total reduction in officers will savings include salary&benefit cause increased response costs,and non-staffing line item times and decreased savings in hiring and equipment outreach to neighborhoods costs pro-rated at$1,700 per from original plan. officer in 2009-10. Position is currently vacant and Neighborhood Team does not currently exist. POLICE ADMINISTRATION 11. Eliminating one Administrative Duties of Administrative 1.0 209,100 226,900 Lieutenant position effective 7-1- Lieutenant will be 09 will save$209,100 in 2009-10 redistributed to other and$226,900 in 2010-11 managers&supervisors, (regular staffing—vacant). Total including supervisor of savings include salary&benefit administrative&support costs. personnel,contract management,training program management,and internal affairs investigations;increased workload on other employees;elimination of Promotion opportunity for -74- 2009-11 Operating Budget Reauction Options cai' POLICE DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 line and supervisory staff, increased span of control/supervision for other supervisors. PATROL SERVICES.: 12. Eliminating one vacant Police Planned Neighborhood 1.0 139,200 143,700 Officer position effective 7-1-09 Team would be eliminated. will save$139,200 in 2009-10 Level of response and and$143,700 in 2010-11 outreach would remain at (regular staffing—vacant). Total existing levels,with some savings include salary&benefit improvements made using costs,and non-staffing line item existing staff. savings in hiring and equipment costs pro-rated at$1,700 per Position is currently vacant officer in 2009-10. and Neighborhood Team does not currently exist. POLICE'SUPPORT SERVICES 13. Eliminating one vacant%2 time Records and administrative 0.5 41,000 42,700 Records Clerk position effective support of Countywide 7-1-09 will save$41,000 in Narcotics Task Force will 2009-10 and$42,700 in 2010-11 be reduced by 50%, (regular staffing, %2 time— impacting efficient vacant). Total savings include operation of Task Force. salary&benefit costs. Task Force is comprised of all law enforcement agencies in County, including City of SLO,and leverages significant State and Federal funds for narcotic,gang,and child endangerment investigations. TRAFFIC SERVICES 14. Eliminating one vacant Traffic 20%reduction of dedicated 1.0 104,800 143,700 Officer position effective 10-1- Traffic(motorcycle) 09 will save$106,100 in 2009-10 Officers;reduced and$143,700 in 2010-11 enforcement of traffic (regular staffing—vacant). Total violations and specialized savings include salary&benefit enforcement;increase of costs,and non-staffing line item traffic collision savings in hiring and equipment investigations by patrol costs pro-rated at$1,700 per officers. officer in 2009-10. Vacancy will result from anticipated retirement of officer on 9-30-09. 15. Eliminating one vacant Traffic Duties assigned to Traffic 1.0 177,000 191,900 Unit Sergeant position effective Unit Sergeant will be 7-1-09 will save$177,000 in redistributed to other 2009-10 and$191,900 in 2010- supervisors,managers& -75- SV-137- 2009-11 Operating Budget Reauction Options ,--- POLICE DEPARTMENT Staffing FTE IIIIIIIIIIIIIMMI Description Service Impact Temp Regular 2009-10 2010-11 11 (regular staffing—vacant). traffic officers,including Total savings include salary& special event organization, benefit costs. traffic enforcement& education planning,tracking of traffic statistics, preparation of annual Traffic Safety Report, traffic grant management& reporting;Reorganization of division to shift supervision of Traffic Officers; elimination of promotion opportunity for line staff, increased span of control/supervision for other supervisors. POLICE SUPPORT SERVICES - 16. Eliminating one vacant Records Records and administrative 1.0 81,900 85,200 Clerk position effective 7-1-09 support of Countywide will save$81,900 in 2009-10 and Narcotics Task Force will $85,200 in 2010-11 (regular be eliminated,severely staffing—vacant). Total savings impacting efficient include salary&benefit costs. operation of Task Force and resulting in no administrative support for Task Force officers. Task Force is comprised of all law enforcement agencies in County,including City of SLO,and leverages significant State and Federal funds for narcotic,gang, and child endangerment investigations. Elimination of both full- time and half-time vacant Records positions would have significant impact, resulting in the need to redistribute duties of Records personnel and reduce days/hours front counter of Police Department is open to public(in addition to eliminating all administrative support for Narcotic Task Force). -76- -!3g 2009-11 Operating Budget Reduction Options POLICE DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 INVESTIGATIVE SERVICES 17. Eliminating one filled Field One existing Field Services 1.0 100,100 104,500 Services Technician(FST) Technician(FST)currently effective 7-1-09 will save assigned as $100,100 in 2009-10 and Property/Evidence $104,500 in 20 10-1 l (regular technician will be laid off, staffing—filled position). Total causing significant impact; savings include salary and duties of remaining two benefit costs. FSTs will be redistributed and one will be assigned to Property/Evidence duties; response times to abandoned vehicle reports and other code violations will be increased;use of FSTs for traffic control at collisions and documenting non-injury collision reports will be eliminated,resulting in increased workload and response times for officers to these calls;officers and other staff will assume other duties currently being done by FSTs. Per MOA with Police Officers Association.lay- offs are by least seniority in job classification. PATROL SERVICES 18. Eliminating one filled Police One existing Police Officer 1.0 132,500 138,700 Officer position effective 7-1-09 currently assigned to Patrol will save$132,500 in 2009-10 will be laid off,causing and$138,600 in 2010-11 significant impact;one (regular staffing—filled Juveniles Services Officer position). Total savings include position will be eliminated, salary and benefit costs,and non- resulting in the elimination staffing costs of supplies for of dedicated services to the DARE Program($3,900 per Middle and Elementary year). school,including the delivery of the DARE Program,early identification and intervention with at-risk and mentally ill youth, participation in counseling meetings and threat management conferences, liaison to school staff and parents,participation in classroom and after-school programs;some duties -77- L l 2009-11 Operatin Bud et Reauction O tions POLICE DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 would be redistributed to other staff members on an as-needed basis. Per MOA with Police Officers Association lay- offs are by least seniority in job classification. POLICE SUPPORT SERVICES 19. Eliminating one existing One existing 1.0 97,200 104,000 Communications Technician Communications (dispatcher)effective 7-1-09 will Technician(dispatcher)will save$97,200 in 2009-10 and be laid off,causing $104,000 in 2010-11 (regular significant impact and staffing—filled position). Total resulting in fewer savings include salary and dispatchers to staff fixed benefit costs,. post shifts,increased overtime,decreased efficiency,and fewer dispatchers per shift. Per MOA with Police Officers Association lay- offs are by least seniority in job classification. TOTAL 0.8 10.5 1,428,800 1,536,300 z7 77z,7� 2009-11 Operating Budget Reauction Options DEPARTMENTFIRE Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 HAZARD PREVENTION 1. 10040400-7231 Eliminating contract plan review $24,000 $24,000 services of fire sprinkler plans Engineering and Plan by transferring the work over to Review Services the Fire Department will have Contract plan review minimal service impact. services of fire sprinkler plans 2. 100-85300-7010 One Fire Inspector III has 0.25 $29,600 $7,400 requested a temporary reduction Temporarily reduce one Fire in work hours to accommodate Inspector III to a 75% child care. While this will have position on a voluntary some impact on Bureau basis. Effective April 2009 workload,It will be less and terminating September significant due to a reduction in 2010. building plan submittals.This position is the primary staff person for plan checks.The increase in Fire System plan submittals will be handled by the Fire Marshal. 3. 100-85300-7010 Reduction of one FTE Fire 1.0 $0 $79,300 Inspector III position will have a Planned retirement of one significant impact on the Fire Inspector III in October delivery of Bureau services.This 2010. position is responsible for most, if not all of the fire investigation program. In addition,one third of the workload from the multi- dwelling inspection program will need to be shifted to the other 2 remaining Fire Inspectors.This position also handles Code Enforcement, Juvenile Firesetter Intervention, Fire Lane Citations,special events,and public assembly over-crowding.These programs will need to be shifted to the Fire Marshal. ADMINISTRATION_r. 4. 100-85100-7010 Reduce the Administrative 0.25 $22,000 $44,200 Analyst position to a Y4 fully Reduce the Administrative benefited position in January of Analyst position to a% 2010 to coincide with the position starting January 1, incumbent's retirement. This is 2010. not the ideal and is only being recommended due to the financial state of the City. The tasks that would not be done by -79- t/�( -� — 2009-11 Operating Budget Reauction Options DEPARTMENTFIRE Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 the 1/4 position could be shared by the Administrative Assistant I permanent position(if not cut) and the temporary part-time position. The Administrative Analyst position cannot be eliminated as the Fire Chief needs a highly skilled person to continually analyze financial data and to monitor the Fire Department's large budget. However, for a limited period of time,this reduction is a viable option. 5. 100-85100-7453 Business and Industry Council $100 $100 Associations for Emergency Planning and Reduce Associations by Preparedness(BICEPP)and 17% Administrative Fire Services Section membership dues would not be paid. EMERGENCY RESPONSE . 6. 100-85200-7817 Hose and Deferral of replacement of $800 $800 Fittings emergency response equipment resulting in less up-to- Reduce Nozzle replacement date/reliable equipment and estimate by$800. future budget impacts for replacing these materials ADMINISTRATION, 7. 100-85100-7259 Laundry Only contract for shop towels, $7,000 $7,000 &Linen glass towels,and mops. Bath towels(used to wipe down Reduce Laundry&Linen apparatus)and dish towels Service by 78% would be washed by city employees. This will require suppression personnel to take on additional tasks. It is unknown at this time if there would be a significant increase in water consumption. 8. 100-85100-7537 Fire administration would be $2,000 $2,000 Reduce Trips and Meetings restricted to one trip for by 66% educational and/or training purposes a year. This would limit opportunities to network or to gain valuable information on new trends and/or budgeting ideas. -go- 2009-11 Operating Budget Reauction O tions DEPARTMENTFIRE Statfing FTE Description Service Impact Temp Regular 2009-10 2010-11 9. 100-85100-7423 Postage Limit the number of parcels that $200 $200 leave via Federal Express. Reduce Postage by 15% 10. 100-85100-7417 Employee Employees retiring from the Fire $1,200 $1,200 Recognition Department would no longer Reduce Employee receive a Joanne Ruggles'print. Recognition by 58% This has been a tradition in this department for over 20 years. TRAINING 11. 100-85400-7909 Training The deferment of the training $3,000 $3,000 Aids tower modifications will have a minimum impact on the Defer Training Tower facilities and training Modifications capabilities of the firefighters. This is due to the construction of the new dispatch center limiting our available time to train on the tower over the next year. The deferment of the training tower modifications will reduce the training capabilities of our firefighters. Rescue props construction would be deferred. ADMINISTRATION _ 12. 100-85100-7913 Uniforms Reduce this budget by not $1,000 $1,000 & Identification purchasing any spare badges, collar tabs,or belt buckles. Uniforms&Identification When hiring occurs,this would by 40% need to be factored in as a cost of the new hire. DISASTER PREPAREDNESS 13. 100-85600-7843 Raise the fees for students to $1,600 $1,800 Operating Materials cover the cost of both overtime and supplies. The impact of this Reduce Training Aids by would be charging individuals having students pay for cost potentially more than they of the Community would be willing to spend Emergency Response Team resulting in fewer participants. (CERT)class Ultimately as smaller amount citizens would be prepared during a major disaster either to be self-sufficient or assist first responders. -81- 5q- � 3 2009-11 Operating Budget Reauction Options -- FIRE DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 ADMINISTRATION 14. 100-85100-7020 Overtime Eliminate all overtime for CERT $3,500 $3,500 training either by having on-duty Reduce Misc.Overtime by crews teach. Or,offset overtime 66% costs through student fees. Eliminate all Captains' meetings. Instead,have three meetings on-duty. EMERGENCY RESPONSE 15. 100-85200-7811 Based on estimates of fuel costs $5,000 $5,000 Fuel and Oil only(unknown cost). Also plan to reduce annual fleet miles by Reduce budgeted amount for 5% each year by$5000. HAZARD PREVENTION 16. 100-85300-7036 Reduction of investigation $600 $600 Investigation Overtime overtime will minimize the use of the City's Investigator to Reduce investigations respond out of the City for SLO overtime 25% Fire Investigator Strike Team (SLOFIST)mutual aid assignments.This may also result in kind as a SLOFIST investigator may not reciprocate when the City investigator is not available. The efforts that the department's investigator expends to bring arson training seminars to the local area will cease,with a possible loss of tax revenue to the City. EMERGENCY RESPONSE 17. 100-85200-7227 Contract Biowaste transfer would only be $1,800 $1,800 Services at Station 1,requiring apparatus to go out of district to drop off Reduce Medical Waste their biowaste. Disposal contract from 4 stations to Station 1 only. TECHNICAL SERVICES 18. 100-85500-7895 Eliminates replacement of aging $0 $1,600 Station Quarters Supplies linen and purchase of new linen for new hires. Eliminate purchase of linen -82- 2009-11 Operatinq Bud et Reauction OiRtions - FIRE DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 19. 100-85500-7843 Operating Limits ability to outfit our new $500 $500 Materials radios with special microphones for SCBA and belt/gear Reduce purchase of radio mounting hardware. accessories 20. 100-85500-7895 Eliminates ability to repair or $2,000 $2,000 Station Quarters Supplies replace major appliances. Also eliminates ability to continue Eliminate purchase and/or with R.O. water as Building repair of major appliances Maintenance is planning on discontinuing support and we will need to provide our own if we want it. EMERGENCY RESPONSE 21. 100-85200-7845 Paint supplies are a critical need $200 $200 Paint Supplies in order to maintain the Fire apparatus and Fire Department Reduce by$200 per year vehicles. A reduction in paint supplies may result in insufficient material to properly prime and paint fabricated materials and equipment. 22. 100-85200-7843 Operating Deferral of replacement of $3,400 $3,400 Materials miscellaneous emergency response equipment resulting in Reduce budgeted amount by less up-to-date/reliable $3400 per year. equipment and future budget impacts for replacing these materials 23. 100-85200-7031 CTO This is a roll of the dice that $7,000 $7,000 Buyout there won't be much CTO buyout during the coming two Reduce projected amount years,which is at the discretion down by$7,000 of individual members. 24. 100-85200-7839 Medical $3,400 $3,400 Supplies Deferral of replacement of emergency response medical Reduce budgeted amount by equipment resulting in less up- $3400 per year. to-date/reliable equipment and future budget impacts for replacing these materials TRAINING 25. 100-85400-7020 Eliminating the 24 hours of $9,700 $9,700 Eliminate National Widlfire backfill for an individual to take Coordinating Group an NWCG class could (NWCG)Supported Backfill potentially reduce the Cost individuals taking any NWCG _83_ 2009-11 Operating Bud et Reuuction Options FIRE DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 classes. From these classes come certifications which allow our firefighters to go on out of county assignments and earn money for our City. Potentially, our City could lose funding if this was implemented. 26. 100-85400-7909 Training All of the physical fitness $1,500 $1,500 Aids equipment will receive routine maintenance prior to July 1, Reduce maintenance of 2009. Reducing next years physical fitness equipment maintenance on certain physical fitness items could result in some of the equipment being out of service until funds could be secured to repair a piece of equipment. 27. 100-85400-7909 Training Reducing the training aids $0 $500 Aids budget will have a small impact on the ability to support classes Reduce training aids that are being taught purchased EMERGENCY RESPONSE 28. 100-85200-7875 Safety With the probable purchase of $1,200 $1,200 Supplies new Self-Contained Breathing Apparatus(SCBA)in 2009-10, Reduce budgeted amount by the need for equipment and $1200 per year accessories related to SCBAs will be reduced.for the next two years. However,this equipment is vital to a Firefighter's safety and must be maintained resulting in budget impacts for replacing these materials in the future. 29. 100-85200-7227 Contract Non-compliance with National $1,500 $0 Services Fire Protection Association (NFPA)annual testing standard. Switch Aerial and Ground Possible liability for sub- Ladder UL Testing to every standard ladders. two years instead of annually($1500 each) TRAINING - 30. 100-85400-7459 Education Reducing the fire dept supported $0 $2,900 &Training training of individuals from 4 slots a year to 3 slots a year Reduce supported Rescue would slow our progress to Systems 2(RS2)Class to 3 reach our goal of getting all of -84- U7'� 7 " 2009-11 Operating Budget Reauction Options FIRE - • - Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 members/year our members RS2 certified. We still have 32 members not certified in RS2. HAZARD PREVENTION 31. 100-85300-7020 Overtime Reduction of regular overtime $1,900 $1,900 will impact the delivery of Reduce Regular Overtime Public Education programs. hours 50%. Reduce the amount of time that the Hazardous Materials Coordinator will be available for response to after-hours hazardous materials incidents. TRAINING 32. 100-85400-7459 Education Eliminating succession training $12,100 $12,100 &Training would put our City at the risk of not having individuals prepared Eliminate Succession to be leaders on our department Training Classes when promotions arise. This is an issue City-wide and our City has invested many staffing hours to address this problem. Our department secured this funding in 2007 which has allowed our firefighters to obtain training to prepare them for the future. 33. 100-85400-7020 Overtime Without funding for sending $23,100 $23,100 individuals to classes for Eliminate Succession succession training there would Training Overtime be no need for overtime to backfill these individuals. TECHNICAL SERVICES 34. 100-85500-7843 Operating Eliminates semi annual updates $800 $1,100 Materials&Supplies on station and wall maps. Would result in response delays Eliminate mapbook updates and/or incomplete map info for changes or new additions. Most impact for the new Tank Farm annex area HAZARD PREVENTION 35. 100-85300-7014 The reduction of hours for the 0.2 $3,500 $3,500 Temporary Staffing temporary City Field Worker VII (Hazard Abatement Officer) Reduce temporary City Field will result in decreased service Worker VII(Hazard in the weed abatement program, Abatement Officer)to 8 prolonging the fire risk to the hours per week. Effective community during dry months. July 1,2009. In addition Plan routing,Knox rapid entry system tracking,and -85- 2009-11 Operating Budget Reauction Options - DEPARTMENT e - Staffing FTE Description Service Impact Temp Regular 2009-10 2010.11 inspection database maintenance and input will have to be transferred to one of the other 2 department Administrative Assistants EMERGENCY RESPONSE 36. 100-85200-7020 Because of a reduced recruit $45,000 $45,000 academy from six weeks to two Overtime(Minimum weeks, less will be expended in Staffing) backfilling for Firefighters participating in the academy,but not available to be part of the minimum staffing. Reducing Recruit Academy for four candidates to two weeks instead of the customary six week academy would require the Department to hire laterals only with significant experience. These recruits will be the only ones in more than 30 years to receive on-the-job training this way. Additional training will have to occur on shift further impacting the time schedule. TRAINING 37. 100-85400-7020 Reduce Recruit Academy for $6,500 $6,500 four candidates to two weeks Training Program Overtime instead of the customary six week academy will result in less instructor overtime. 38. 100-85400-7265 Medical Cutting the medical services $32,000 $32,000 Services budget down to$5,000 would, in essence,eliminate the physical Reduce Quality of Medical fitness evaluation. The funds Services(physicals) remaining in this budget would provide the Tuberculosis testing and a physician to review the firefighter's medical questionnaire. The more extensive testing in the past has found more than one firefighter's medical condition so severe that the individual received treatment and was required to retire. If this budget is cut the potential for line of duty injuries,up to and including death,would increase. -86- �� /�� 2009-11 Operating Budget Reauction Options DEPARTMENTFIRE Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 EMERGENCY RESPONSE_ 39. 100-85200-7022 Many small and large ongoing $6,300 $6,300 Training/Misc and Special programs will suffer due to non- Events OT allocation of OT money for their maintenance. SWAT program OT for Special tabled. Bike Program tabled. Projects/Special Events EPCR Program tabled. Special reduced by 140 hours per Events dollars are greatly year. reduced,but still need to continue Mechanic call back for needed repairs. HAZARD PREVENTION _ 40. 100-85300-7459 Education Reducing the training budget $3,000 $3,000 &Training will mean that prevention staff may only attend local training Reduce Training an that is not frequently offered in additional 55% this area,resulting in prevention staff not be keeping up with the latest technology and adversely affecting succession planning. ADMINISTRATION 41. 100-85100-7014 Have 50%of Administration's 0.2 $5,300 $5,300 Temporary Staffing Temporary Salaries be paid from the Mutual Aid administrative Reduce Temporary Salaries rate. Currently,the Fire by 50%and have remainder Department receives between paid from Mutual Aid 16.59%from the State and 18% Revenues from the U.S.Forest Service (USFS)for the administrative rate to process mutual aid claims. One of the functions of this temporary position is to assist in configuring billing for these fires;in essence, performing this administrative function for reimbursement. If this reduction were to be made without being made whole by mutual aid reimbursement funds; the processing would be significantly impacted. With the pending retirement of the Administrative Analyst,there would be no-one able to do this billing,thus costing the City hundreds of thousands of dollars. EMERGENCY RESPONSE 42. 100-85200-7014 This may require Suppression 0.3 $2,200 $2,200 Temporary Staffing personnel(who already have a _87_ �y'l�T'� 2009-11 Operating Budget Reauction Options FIRE DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Mechanic assistant. Reduce full schedule)to step in more weekly average hours from often to assist the Mechanic 16 to 12. TECHNICAL SERVICES 43. 100-85500-7020 Limits or eliminates Fire $500 $500 Department involvement inset Reduce Technical Services up of new radio system. Limits Overtime or eliminates using skilled fire personnel for facilities repairs and improvements. EMERGENCY RESPONSE -;-- — ' , 44. 100-85200-7227 Contract Decreases ongoing repair issues $2,700 $2,700 Services with printers. Remove EPCR printers from Remove Electronic Patient apparatus,and EPCR's from Care Reporting(EPCR) jumpseat mounts. Continue to printers from apparatus. use EPCR's as documentation tools,but discontinue air card service for printers. Companies may have to write or verbally transfer information for ambulance pass-on. TRAINING 45. 100-85400-7459 Education Eliminating the train the trainer $10,300 $10,300 &Training classes would reduce the ability of our training division of the Eliminate Train the Trainer fire department to train its members. Sending one individual away to a class where they can return to our City and teach our department is one of the least expensive forms of training our members. We can expect a reduced training schedule and a less efficient and safe department if this proposition is implemented. 46. 100-85400-7020 Overtime Without funding to send $23,200 $23,200 individuals to classes for Train Eliminate Train the Trainer the Trainer,there is no need to Overtime backfill for staff attending classes. EMERGENCY RESPONSE 47. 100-85200-7861 Personal This will impact our ability to $4,800 $4,800 Protective Equipment meet new hire equipment needs (PPE) and aging personal protective Reduce budgeted amount by equipment needing repair. $4,800 per year _88- 2009-11 Operating Budget Reduction Options • • - Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 48. Defer Purchase of"Quint" Currently,the City has one $72,000 Engine/Ladder Truck responding '75 foot Quint,and The Quint is a multi-purpose no reserve unit. The existing vehicle serving as both a Quint was purchased in 1993 "front-line" responding and is coming to the end of its engine company unit as well front-line service life of 16 as the City's sole aerial years. Maintenance costs are ladder truck,with 75-foot rising,reliability is falling,and ladder. the demands of being the front line responder in the City's The current plan is to busiest district have taken their purchase a replacement 100- toll. Within the surrounding foot ladder Quint. The mutual aid area of the City,there added cost for a 100-foot is limited access to a ladder versus 75-foot Quint,which truck. is attributable to new development taller than 50 The City currently has a contract feet,would be funded by with California Polytechnic impact fees over time. State University(Cal Poly)to Additionally,once the Quint provide emergency services to has been ordered,Cal Poly the campus. Including the new has agreed to increase its buildings being built,Cal Poly contribution under our will have 13 buildings on contract with them by campus that need 100' aerial $25,000 annually. truck access. This does not include buildings with set-back After purchasing a new unit, configurations,which will also the current 1993 Quint need a longer aerial to would have been used as a implement rescue.. The longest relief truck during ground ladder available is 35 ft. maintenance and repair of and most engines carry a 24 ft. the new Aerial/Quint;and ladder at best. Even a 35 ft would have been available ladder will not reach the roof of for second alarm fires. In a three-story building. Cal Poly this more limited capacity, has 53 buildings three stories in the 1993 Aerial/Quint could height or taller,that could continue to serve the City require an aerial ladder in an for perhaps another decade. emergency. Consistent with the City's debt financing policy,we recommend debt financing this replacement. Based on an estimated cost of$1.04 million and a 16-year term, the annual debt service would be$97,000, beginning in 2010-11. Adjusting for the Cal Poly contribution,the net savings in deferring this purchase is $72,000. _89- �'f �I✓�I 2009-11 Operating Budget Reauction Options DEPARTMENTFIRE Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 TECHNICAL SERVICES 49. 100-85500-7227 Contract Eliminates 20 AED's in service $4,000 $3,800 Services at various City facilities, resulting in decreased Eliminate all Automated survivability for cardiac arrest Electronic Defibrillators victims if a trained AED (AED's)at various City operator happens to be present. facilities. TRAINING 50. Delete Training Battalion When one of the current Fire 1.0 $195,600 $215,300 Chief position Battalion Chiefs retires,do not promote. Transfer the Fire Training Battalion Chief into that spot with holiday pay and no incentive. Some of the duties of this position listed below would be assumed by the Special Assignment Engineers on each shift. 1. Develops and maintains the Training Budget. 2. Schedules and coordinates all training,develops and maintains the Quarterly and Annual Training calendars, brings outside instructors/classes in as needed. 3. Remains abreast of Training Mandates as regulated by various government agencies,and incorporates them into the Department Training Program. 4. Serves as Fire Academy Coordinator-academies typically run 6-8 weeks in length; however they require considerable prep work. 5. Serves as Outside Training Program Coordinator- schedules and enrolls personnel in local and non- local Level training, Vandenberg/NWCG 90 ' � r.r. 2009-11 Operating Budget Reuuction Options FIRE DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 classes,Paramedic CE classes,&specialized training. 6. Prepares and delivers multi- company training drills, serves as an evaluator and source of accountability. 7. Serves as the Fire Department Safety Officer, both on emergencies and as the Department Safety representative. Without the Training Officer,we will jeopardize our safety and common training methods, etc. 8. Conducts and coordinates in-service training on new equipment,apparatus, policies&procedures. 9. Assigns duties to Special Assignment Engineers (SAE's)and oversees their training assignments 10. Oversees the Fire Department participation in the statewide California Fire Fighter Joint Apprenticeship Committee,which establishes training standards and assists with the funding of training(with limitations). 11. Maintains/updates training records program, training library,AN resources, training/testing props and equipment, and Station I training tower. 12. Develops Fire Department career development program,including certification program for Acting Captain and Acting Battalion Chief. 13. Attends and/or serves as liaison to SLO County Training Officers,Cal- Chiefs Association Training Section,Tri-Counties Training Officers meetings. _91- 8 53 �l .r°Fr, 2009-11 Operating Budget Reuuction Options FIRE DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 14. Develops,maintains,and updates all Fire Department Training Materials, Manuals,etc. (computer and hard copy). HAZARD PREVENTION 51. Reduce the Administrative Reduce the Administrative 0.5 $49,700 $51,800 Assistant to a '%time(20 Assistant I position to half-time hrs.)fully benefited to be half funded by CUPA position; 10 hrs.being fines. funded by CUPA fines. In the past 10-12 years,the Fire Department has been impacted by the City's budget shortfalls. In an effort to preserve the field forces responding to emergency calls,other Department programs have been targeted for cuts. In Administration,the workload was handled since 1995,by two Administrative Assistants,sharing the considerable flow of paperwork and non-emergency service demands from the public. In 2003-05 one of these positions was eliminated,placing all the work on the remaining Administrative Assistant. In the 2007-09 Financial Plan the Fire Department asked for and received approval to hire an Administrative Assistant to provide clerical support to Administration staff,full-time Fire Marshal and Training Chief as programs and mandated Public Safety requirements are added and implemented as agreed to by the City. Without this help,the needs of the public and the department will not be met. With the elimination of this position,the Department would depend upon the one remaining Administrative Assistant in administration.This is undesirable because of the -92- Bit-li y 2009-11 Operating- Budget Reuuction Options FIRE DEPARTMENT Staffing FTE Description Service Impact Temp Regular 2008-10 2010-11 current workload of this position. It should be noted that the Department's master plan recently presented to Council clearly indicated that even with the two clerical positions we currently have,the workload warrants adding another clerical position. Also,with the proposed reduction in hours of the City Field Worker VII(Weed Abatement Officer),the unmet tasks of that position would have been transferred to this Administrative Assistant I position. However,if this position is significantly reduced,this would not be possible,prolonging the fire risk to the community. This position has taken on the inputting of Certified Unified Program Agency(CUPA) records as mandated by the State of California. This is a complicated computer program that is crucial to the CUPA program and maintenance of good hazardous materials records. Records MUST be inputted and updated. The Fire Department has added the software and invested considerable time in training. The only other person capable of using this software is the Hazardous Materials Coordinator. It is simply not cost-effective to have a$78/hr. Hazardous Materials Coordinator use time that could be better spent recouping CUPA fines. TOTAL 0.7 3.0 $566,300 $743,200 -93- - � 4 ! 7 2009-11 O eratin Bud et Reuuction Options DEPARTMENT: - FUND Staffing FTE Description Service Impact I Temp I Regular 1 2009-10 1 2010-11 WATER ADMINISTRATION 1. Eliminate Utilities Engineer The current significant reduction in 0.5 75,000 75,000 position. development and plan review,a Position is currently filled. major and important component of this position's workload,is An additional.4 FTE is expected to remain for some time. included in the Wastewater Overall departmental impact Administration budget associated with the reduction is reductions. .l FTE for this expected to be minor with the position is included in the exception of a moderate impact for Whale Rock budget and the approximately three months every City pays 55.05%of the two years during coordination of budget(these savings are the CIP Request development with included in the 75,000 figure). the financial plan. I FTE(total)reduction would be implemented effective July Additional workload of 1,2009.Costs based on coordinating comments on plans salaries current as of February and specifications,attendance at 2009. standing committee meetings, coordination of CIP submittals associated with financial planning, interfacing with public,and routine reports required by various entities would be assigned to and absorbed by others. Overall service quality will not be impacted but,for those employees who receive additional assignments(director, administrative assistants,senior administrative analyst,project manager,division managers,and section supervisors/managers), there will be a workload impact of varying degrees. Management will need to prioritize (and assist others in prioritizing as needed),delegate effectively,and work closely with staff assigned additional responsibilities to minimize impacts. Plans/Specs-given reduced development activity currently being experienced,response times should only be minimally(if at all) affected.Individual divisions already review plans and specifications.The method used to provide comments would be analyzed for efficiency. i 2009-11 Operating Budget Reauction Options UTILITIES DEPARTMENT: WATER FUND Staffing FTE Description Service Impact Temp Regular 2009.10 2010.11 Standing Committees/Other Meetings—could have minor to moderate impact on department depending on number of meetings. Some meetings have historically had more than one department representative in attendance so impact may be minimal.Decisions would need to be made as to which meetings were mandatory or discretionary to attend.Could impact ability to ensure department's interests are adequately protected. Exploring whether attendance at some meetings may be better assigned to staff in another department would be done. CIP Coordination—The bulk of this activity takes place once every two years. Could be absorbed by administrative assistant or temporary staff with assistance by manager.Will require a moderate level of additional work effort by managers and administrative staff that could impact operations during financial planning process. Public Interface—Activities such as looking up as-built information, hydrant pressures,answering questions on standards,and other inquiries would be handled by others;perhaps other departments. Routine Reports—Volume of these reports is unknown so unable to fully quantify impacts.Additional workload would be absorbed by others knowledgeable in the related subject matter. CUSTOMER SEAVICE 2. Eliminate Water Customer In the short term,the impacts to 1.0 91,500 91,500 Service position. service levels will be moderate. Position is currently vacant. The valve maintenance program will not meet targeted goals. A The proposal is to split one reduction in other preventative staff member's time between maintenance activities such as Cla- Water Distribution(WD)and Valves will result.The ability to Customer Service(CS).A maintain monthly meter reading small savings in training cost schedules will be moderately -95- 8 I' i57 r) 2009-11 Operating Budget Reauction Options ' DEPARTMENT-UTILITIES Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 and protective clothing would affected and will require more WD also be realized.The net cost staff time.By sharing a position was determined by adding the half time between CS and WD cost of a step 9 WD Operator, most activities and level of service ($90,000),to the training cost will be maintained. of one WD Operator,($1000), and the protective clothing In the long term,the reduction in requirements,($500). PM,due to required meter reads, will moderately affect the long term ability of the water system to deliver safe reliable water for consumption and fire protection. UTILITIES CONSERVATION_ --- 3. Miscellaneous Supplies- Could affect delivery of field staff 1,000 1,000 Operating Materials and work.These funds are used by Supplies,no additional staff when a special tool or piece purchases of field supplies. of equipment is required. Reduction in funding may affect these purchases. 4. Landscape Maintenance Reductions to this program will 7,000 7,000 Professional Outreach& restrict the outreach efforts to Training-Contract services, landscape professionals. It has reduction in workshops and been recognized that training and training for landscape educating the landscape professionals. maintenance professionals on the importance of water management is a key to accomplishing both our water conservation and storm water goals. This is a relatively new program first identified in the 2007-09 Financial Plan so we are just now understanding the funding needed for the program. The funding reduction reflected in the base budget reflects what I believe would be the real costs based on experience. Further cuts will reduce the effectiveness of the outreach both in numbers of trainings held and material distributed. 5. Partners in Water No direct service impact,it will 1,000 1,000 Conservation-Contract limit the section's involvement Services,reduction in monetarily in the regional efforts. participation with the regional water conservation group. 6. CRRA,Irrigation No service impact,staff will try to 400 400 Association-Associations,not stay informed through our renew memberships association with the IWMA and CUWCC. !� 96- 2009-11 Operatin Bud et Re-auction Options UTILITIES DEPARTMENT: VV,ATER FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 7. Publications-Publications, No service impact;many 200 200 eliminate subscription to trade publications are now available magazines. online. 8. New Materials(energy, No short term service impact,the 3,000 3,000 water,solid waste)-Print and section will use its reserve supply Reproduction,decrease dollars of publications and materials and spent on conservation not purchase any new information materials and handouts. that becomes available. 9. Misc.supplies-Office No service impact,assumption 100 100 Supplies,decrease allotted based on historic use. funds for office supplies 10. Reduce temporary staffing. Limit support to the section and 4,000 4,000 Utilities Department staff.The current temporary employee assists not only conservation staff in program activities,including helping the manager complete important tasks but other divisions as well. 11. Public Relations,Education Historically,the Utilities 25,000 25,000 and Advertising—Contract Department has maintained an Services,reduction in the aggressive public outreach public outreach program. program using a professional PR firm to assist in development and implementation of the public information and outreach programs for water,solid waste and energy. This includes designing and printing the Resource newsletter, developing PSA and direct mail pieces and copy editing for news articles. Decreasing funding will eliminate most of the paid outreach activities such as PSA's and direct mail pieces but retain funds to produce and print the Resource newsletter. Staff would have to design and do the copy editing of the Prop 218 notice in house,and handle the printing and mailing activities. If this is a short term reduction,the community will miss some important messaging points. UCO staff would have to be more creative in delivering its message. Long term,this will be a difficult task to maintain and remain effective. -97- T� /5 2009-11 Operating Budget Reuiuction Options UTILITIES DEPARTMENT: VVATER FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 12, Commercial Incentive Decrease in services and financial 17,000 17,000 Program-Contract Services, assistance offered to commercial reduction in commercial customers.This is a relatively new rebates offered. program which was under development as part of the 2007-09 Financial Plan. Implementation is just getting off the ground. The funding is for commercial rebates for water efficient equipment and upgrades to commercial irrigation systems. The cuts leave some funding for theseactivities,they will just be limited and when the funding runs out the programs will be over for the fiscal year. 13. Computer Software No service impact. It is the intent 1,500 1;500 Upgrades(Hansen)- to move away from Foxpro. Short Computer supplies,delay term this will not be a problem, implementation of Hansen long term a conversion to a new database will be necessary. 14. Data Base Management No direct service impact. It is the 4,000 4,000 (Hansen)-Computer intent to move all Utilities supplies,delay databases away from Foxpro. In implementation of Hansen for the short term,this is not a UCO. problem,long term a conversion to a new database will be necessary. 15. Water Efficient Irrigation Placing a lower cap on the number 7;500 7,500 Equipment/Appliance of rebates offered for High Rebate Reimbursement- Efficiency Clothes washers, Rebates,decrease in the appliances and irrigation number of rebates offered. equipment.This reduction would affect our residential customers. Also, it would limit or possibly put us out of compliance with one of the state's high efficiency washer BMPs. 16. Quarterly CUWCC&sub- No service impact,it may mean 600 600 committee meetings- not attending some of the meetings Education and Training,limit and limit the manager's travel to meetings involvement in committees. 17. Staff Training and No direct service impact,staff will 1,000 1,000 Development-Education and try to utilize low or no cost training Training,limit staff training. opportunities. WATER.TREATMENT 18. Training Reduction: Phase I WTP staff is required to maintain 9,000 9,000 Reduction in the training certifications that require budget by$9,000. This continuing education as part of reduction would be their job qualifications and to -98- ��f-1too 71 2009-11 Operating Budget Reauction Options UTILITIES DEPARTMENT: Staffing FTE, Description Service Impact Temp Regular 2009-10 2010-11 implemented July 1,2009. progress through the SBP criteria (CDPH Treatment,CWEA Maintenance,safety,job related skills,etc). This reduction would provide for two staff to attend an out-of-area seminar each year with the remaining training needs met through less expensive correspondence courses,webcasts or local seminars. While these options can fulfill the minimum requirements,they will limit or eliminate the greater benefit of staff interaction and networking outside of their day-to-day work environment. WATER TREATMENT'- 19. Eliminate Water Treatment While the WTP has been fully 1.0 83,500 83,500 Plant Operator position. staffed since July 2007, it is just Position is currently filled. recently becoming"fully trained" due to the lengthy training period, The reduction to WTP staffing amount of new staff,and by one WTP Operator SBP completion of the.WTP Upgrade position and the associated Project. The service impact of this cost savings is estimated at cost reduction would decrease the $83,497(Regular staffing SBP WTP's ability to cover all shifts Step 5=$57,226,Benefits= and its capability for 24 hour $25,271,Uniforms=$500, continuous operation would not be Protective Clothing=$500). realistic. Its ability to perform in- Through creative scheduling, house projects and maintenance it is anticipated that there will would also be reduced. It will still be minimal increased cost for, need to be decided as to what overtime due to this reduction. extent these projects would either The reduction in this position continue to be deferred or need to would be implemented as soon be contracted out,either way at as directed to. This position is substantial cost. There would be a currently filled. definitive shift back to more reactive maintenance than the gains made recently towards preventive maintenance. UTILITIESCONSERVATION 20. Reduce temporary staffing. The temporary position directly 1.0 23,000 23,000 supports the 2 UC Technicians and UC Manager positions with day to day activities and special projects. This position also provides assistance to other divisions within the Utilities Department. -99- 2009-11 Operating Bud et R vuction Options UTILITIES ■ - FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010.11 21. Eliminate Utilities Solid Waste: 1.0 91,100 91,100 Conservation Technician • Decrease in turnaround time position, processing incoming C&D Position is currently filled. Recycling Plans and finalizing blue card signoffs. • Delay in follow up or elimination of the illegal dumping in the public right- of-way activities by staff. If eliminated,activities would have to be performed by PD and/or PW staff(Util. took this program on during last budget cutting process). • Decrease in consultations with businesses assisting in the establishment and/or maintaining their recycling programs. This could affect diversion mandates. Water Conservation: • Reduction service order request program. Currently staff completes approximately 2,000 service orders per year. This work would either go uncompleted or would have to move back to Customer Service which is currently under staffed. • Eliminate the other 1,000 contacts per year with City water customers. • Impede the implementation of and the compliance with the State's BMPs which will impact the City's ability to receivestate funding such as SRF loans. Water Reuse: • Greatly reduce or eliminate the water reuse site monitoring program. • Greatly reduce or eliminate technical assistance for water reuse customers. Energy: • Eliminate in-house energy conservation information. Energy conservation is an important City Goal. - 100- ✓`f'-tl �- �_-- I 2009-11 Operating Budget Reauction Options - UTILITIES DEPARTMENT: V�ATER FUND Staffing FTE Description Service Impact I Temp I Regular 1 2009-10 1 2010-11 WATER ADMINISTRATION 22. Eliminate Administrative Overall departmental impact is 0.4 25,000 25,000 Assistant III position. expected to be severe.The Position currently filled. department has 66 employees with an administrative support staff of FTE reduction would be 1.75 FTEs to provide required, implemented effective July 1, specialized office and 2009. administrative support functions. The majority of department staff is Costs based on salaries and not versed in the myriad benefits current as of February administrative tasks performed by 2009. this position and significantly depends on the functions it provides. Aspects of essential work currently provided by administrative support staff would become a task of management(e.g.website updates, processing travel vouchers/credit card payments,preparing graphics/materials,reports,forms, invitations, filing,maintaining technical library,answering the phone,receiving visitors,mailing, coordinating meetings)as there would be insufficient capacity with remaining administrative support staff to accomplish all of the work. Transference of this workload to others would have severe impacts on response times. The ability of managers to focus on their core competencies would be impacted to varying degrees—depending on what tasks were assigned them to take on.Both internal and external customer service would be moderately to severely impacted as priorities are juggled and potentially new skills are learned by those assigned to perform the work.Public access to the Utilities Administrative building may be routinely impacted due to lack of staffing.Ability to access complete information in department files or the technical library,the administration of the lateral program,and timely website updates would be negatively impacted. 1 i 91 T k, y 1 2009-11 Operating Budget Recluction Options - =- ° UTILITIES DEPARTMENT: WATER FUND Staffing FTE Description Service Impact I Temp I Regular 2009-10 2010-11 WATER TREATMENT 23. Training Reduction: Phase 2 This reduction option would 3,000 3,000 Further reduction in the include the reductions in Training training budget in addition to Reduction—Phase 1 and Training Reduction—Phase I additionally eliminate all out-of by$3,000. This reduction town travel. This second reduction would be implemented July 1, would result in the minimum 2009. budget level that could still achieve the certification and safety requirements. 24. Total Contract Services— This reduction would be a return of 25,000 25,000 Phase 1 deferred and reactive maintenance This first phase reduction in being the majority rather than Contract Services would preventative and predictive basically cut all optional or maintenance. Short and long term improvement services effects of this change in direction estimated at$25,000. Typical would be"possible"increased services would include the emergency repair and replacement deference of non-mandated costs,degradation of infrastructure, electrical and mechanical lowering of employee maintenance,instrumentation "ownership". I say"possible" and painting improvement because the actual effects are not projects. This reduction quantifiable in the short timeframe would be implemented July 1, available for analysis. Note: One 2009. direction is not necessarily better or worse than the other,just different costs and consequences, 25. Total Operating See Service Impacts above for 25,000 25,000 Expenditures—Phase 1 Total Contract Services—Phase 1. This first phase reduction in Operating Expenditures would basically cut materials used for improvement projects estimated at$25,000. Typical improvement areas include the deferral of electrical and mechanical maintenance, instrumentation and painting improvement projects,and general facility maintenance. This reduction would be implemented July 1,2009. 26. Total Contract Services— This reduction would defer all 25,000 25,000 Phase 2 possible maintenance and This second phase reduction in minimize the use of materials. Contract Services would Short and long term effects would basically cut all non-essential include increased assumption of services estimated at$25,000. risk by the City,increased These reductions would cut all emergency repair and replacement non-essential services in costs,degradation of infrastructure, contracted preventative erosion of employee"ownership" 102 2009-11 O erating Bud et Reauction Options UTILITIES DEPARTMENT- W'AT—ER FUND Staffing FTE Description Service Impact Temp Regular2009-10 2010-11 maintenance. This reduction and pride,lessened operational would be implemented July 1, efficiency. 2009. 27. Total Operating See Service Impacts above for 25,000 25,000 Expenditures—Phase 2 Total Contract Services—Phase 2. This second phase reduction in Operating Expenditures would basically cut all non-essential services estimated at$25,000. These reductions would cut all material costs for non- essential maintenance and repair. This reduction would be implemented.July 1,2009. 28. Eliminate WTP Operator The impacts of the reduction of a 1.0 68,500 68,500 position. second position would have much Position is currently filled. deeper impacts than just doubling the Service Impacts discussed Staff Reduction—Phase 2 above. This added reduction (2nd FTE) would place the Chief Operator The additional reduction to back into the normal operator shift WTP staffing by a second rotation thus greatly diminishing WTP Operator SBP position his effectiveness and transfer and the associated cost savings workload back to the Supervisor. is again estimated at$83,497 The majority of operator time (Regular staffing SBP Step 5 would be operations-only specific =$57,226,Benefits= and in-house plant projects would $25,271,Uniforms=$500, be scaled back to bare minimum. Protective Clothing=$500). Operations staff currently performs It is estimated that there will a large amount of the maintenance be increase cost for overtime and this would either need to be due to this reduction estimated deferred or contracted out. The at$15,000. The reduction in total short and long term fiscal this position would be effects related to a reduction of this implemented as soon as magnitude would be extensive and directed. This position is difficult to quantify. There would currently filled. most likely be an increase in fatigue related incidences and lower employee moral. WATER DISTRIBUTION 29. Material inventory In the short term,the first impact 23,000 23,000 reduction. will be that broken fire hydrants This is a reduction in pipe, will be out of service until repair fittings and valves used for parts are ordered and the hydrant planned and emergency water repaired. Currently the WDT line repair.This is also the replaces a minimum of 5 broken or elimination of line item 7805 outdated hydrants annually and this Fire Hydrants,($5000). I activity would be curtailed in favor anticipate that a one year of repairing broken and outdated savings of$23,000 could be hydrants.Hydrants broken by - 103- , 2009-11 Operating Budget Reauction Options -' UTILITIES DEPARTIVIENT� WATER FUND Staffing FTE Description Service Impact Temp Regular2009.10 2010-11 realized by eliminating the vehicle impacts would be purchase of new fire hydrants purchased and replaced on an as and by reducing expenditures needed basis. Both activities will on pipeline appurtenances by result in moderate negative short $20,000.This reduction will term impacts to fire protection. be implemented.July 1 2009. In the long term,the impact will be on the ability to make timely emergency and after hours water line repair. Currently the WDT stocks all types of pipe,valves and fittings that.are required to make repairs.As on hand inventory is reduced through use the ability to make timely emergency repairs will be severely impacted and water service outages may be longer.The impact is to customer service and fire protection. Identifying the cost of lost water from pipeline breaks is problematic due to unpredictability of pipeline failures. In October we discharged 1.5 MG and the approximate cost of the water loss was$7500. 30. Eliminate Water In the short term,the impact to 1.0 91,500 91,500 Distribution Operator. service will be mostly associated Position is currently filled. with the WD preventative maintenance program,The Staff reduction option 2. reduction of preventative Elimination of one full time maintenance will immediately staff member resulting in a result in a severe negative impact reduction in regular staffing to the valve maintenance program cost.A small savings in and the Cla-Valve maintenance training cost and protective program. Emergency response and clothing would also be prompt leak repair will be realized. I determined the net impacted resulting in longer water cost by adding the cost of a service outages for City customers. step 9 WD Operator, ($90,000),to the training cost In the long term,the 2000 Water of one WD Operator,($1000), System Master Plan specifically and the protective clothing recommends implementation of a requirements,($500). valve maintenance program(VMP) in order to increase valve life and The staff reduction would be ensure valve function.With a implemented July 1 2009. reduction in staff the VMP will not meet predictive maintenance goals or may fail to be implemented. Cla-Valve recommends annual servicing of valves. Currently Cla- Valves in our City are serviced every 5-10 years and a reduction in staff will increase the service 2009-11 Operating Budget Reauction Options UTILITIES DEPARTMENT: WATER FUND Staffing FTE Description Service impact Temp Regular 2009-10 2010.11 interval leading to unreliable operation.The reduction in PM work will severely affect the long term ability of the water system to deliver safe reliable water for consumption and fire protection. CUSTOMER_SERVICE 31. Reduction in meter retrofits. In the short term,the impact will 21,000 21,000 Eliminate half of the water meter be severe to the meter budget.This is a materials item. I replacement/retrofit program. arrived at the net cost by using half With current budget CS replaces the meter budget,($25,000)and less than half of the meters subtracting$4000 that is an necessary to complete a 15 year estimate in lost revenue.This meter lifecycle or replacement would be implemented July 1 program. AWWA Standard C700- 2009. 02 states that 5/8"-1"meters should be accuracy tested every 6- 10 years. It is cost prohibitive to test small meters and they are instead replaced to maintain meter accuracy.This reduction will put the CS Team further behind in meter replacements and not increase revenues. This would also impact sewer revenues and fees to the General Fund(Franchise fees and Utilities User Tax). In the long term,reducing meter budget will put CS further behind and keep revenue and franchise fees near the current rate. TOTAL 1.0 5.9 $778,400 $778,400 -105= �Y ^n 2009-11 Operating Budget Reouction Options UTILITIES DEPARTMENT: SEWER FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 WASTEWATER ADMINISTRATION 1. Eliminate Utilities Engineer The current significant reduction 0.4 54,000 54,000 position. in development and plan review,a Position is currently filled. major and important component of this position's workload,is This FTE is paid for by.5 expected to remain for some time. FTE Water Fund, .4 FTE Overall departmental impact Sewer Fund,and.1 FTE associated with the reduction is Whale Rock. FTE reduction expected to be minor with the would be implemented exception of a moderate impact effective July 1,2009. for approximately three months every two years during Costs based on salaries coordination of the CIP Request current as of February 2009. development with the financial plan. Additional workload of coordinating comments on plans and specifications,attendance at standing committee meetings, coordination of CIP submittals associated with financial planning, interfacing with public,and routine reports required by various entities would be assigned to and absorbed by others. Overall service quality will not be impacted but,for those employees who receive additional assignments(director, administrative assistants, senior administrative analyst,project manager,division managers,and section supervisors/managers), there will be a workload impact of varying degrees. Management will need to prioritize(and assist others in prioritizing as needed),delegate effectively,and work closely with staff assigned additional responsibilities to minimize impacts. Plans/Specs-given reduced development activity currently being experienced,response times should only be minimally(if at all)affected. Individual divisions already review plans and specifications.The method used to provide comments would be 2009-11 Operating Budget R l '1'rn eauction Options -- - ---- - -- UTILITIES DEPARTMENT: SEWER FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 analyzed for efficiency. Standing Committees/Other Meetings—could have minor to moderate impact on department depending on number of meetings. Some meetings have historically had more than one department representative in attendance so impact may be minimal.Decisions would need to be made as to which meetings were mandatory or discretionary to attend. Could impact ability to ensure department's interests are adequately protected. Exploring whether attendance at some meetings may be better assigned to staff in another department would be done. CIP Coordination—The bulk of this activity takes place once every two years. Could be absorbed by administrative assistant or temporary staff with assistance by manager.Will require a moderate level of additional work effort by managers and administrative staff that could impact operations during financial planning process. Public Interface—Activities such as looking up as-built information, hydrant pressures,answering questions on standards,and other inquiries would be handled by others;perhaps other departments. Routine Reports—Volume of these reports is unknown so unable to fully quantify impacts.Additional workload would be absorbed by others knowledgeable in the related subject matter. .WATER QUALITY LAB 2. Eliminate Lab Analyst In the short term,we are currently 1.0 82,400 82,400 Position. using unpaid volunteers and a 15 Position is currently unfilled. hr per week temporary employee to offset some of the full time(70 We subsequently have hired hrs per week)understaffed temporary part time staff. One workload. We have also modified _ 107_ 2009-11 Operating Budget Reauction Options UTILITIES DEPARTMENT: SEWER FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 temporary staff member left our schedules to maximize for full time employment and coverage options.We have the other part time staff is adapted our TMDL workload to running out of hours by Mid reflect minimum required amount March 2009. of sampling.The extra sampling was not required,but something We have completed two we initiated and now the added intern recruitments.The first workload is currently impacting resulted in two interns who other activities.We are currently are functioning effectively exploring the options to bring in and the second recruits should WRF staff to backfill and address be ready by April 2009. workload and coverage issues.We are also in the process of Recently,because we had recruiting two more unpaid only a part time(08:00— volunteers to be activated in April 12:00)temporary employee 2009. available fora Sunday shift, when the Water Distribution In the long term,inadequate staff brought in a line break staffing may result in excessive Bacti sample,there was overtime to cover shifts required nobody available in the lab to to accomplish required analysis. accept the sample.By the In addition,if we do not have time Water Distribution adequate staffing workload that brought the sample in the next can not get finished may result in day,the sample had expired. a violation of our NPDES permit. This delayed putting the If our free intern supply dries up, water system back into we will have coverage issues service by a day and a half. which will result in service Customer service impact. impacts to Utilities,Public Works, Also,recently a lab member rate payers and anyone else that was on vacation and the utilizes the lab's services. Also, remaining staff member had a lack of adequate staffing leads to family emergency and had to morale,reliability and coverage leave town,thus leaving issues. nobody left in the lab. If an unscheduled staff member This position is critical to the hadn't been in town(which compliant and efficient operation was unusual)and had been of the Water Quality Lab and able to come in and cover on needs to be filled. her day off,there would have been nobody to fulfill our Leaving this position vacant will NPDES sampling require current laboratory staff to commitments.This would fulfill the vacant position duties have likely resulted in a fine. resulting in additional workloads, and a possible compromise of Just the other day Collections compliance and program need analysis performed on requirements. It has been creek samples associated with determined that one dedicated a creek siphon break. It was analyst,with extensive an emergency workload. knowledge,experience and Because we had limited certification needs to be a staffing,the regularly principal in the program. For the scheduled WRF process and aforementioned reasons and in the permit compliance duties had spirit of efficiency and - 108- 8 (—L 2009-11 Op2rating Budget Reouction Options UTILITIES DEPARTMENT: SEWER FUND Staffing FTE Description Service Impact Temp Regular 2009.10 2010-11 to be deferred and results commitment to excellence,this were subsequently three hours position should be filled as soon late.This had a negative a as the opportunity arises. impact on their ability to manage the WRF. Also because weekend staffing is limited,when a weekend staff member takes a vacation or calls in sick,it usually requires another staff member to come in on overtime to fill the staffing shortage and address workload issues. WASTEWATER COLLECTION: 3. Contract Services. This would have no short term 500 500 Reduce funds for printing impacts. Hard copy Maps are sewer system maps updated annually. This would cause no long term impacts. 4. Contract Services. No short term impacts. Funding 500 500 Telemetry Repairs was for incidental costs outside the telemetry services contract. This would cause no long term impacts. 5. Communications Services. No short term impacts. Funding is 1,500 1,500 Radio maintenance for any outside services required for maintenance. No long term impacts. Depending on priorities and other related funding,it would have no long term impact. 6. Operations and No short term effects. Chemical 6,600 6,800 Maintenance. root control program has been an Chemicals ongoing process to evaluate the effectiveness of the program. There would be no increase of staff's work load to eliminate program and continue to control the roots with specialized cutting tools. There is the argument that roots grow back stronger and cause pipe destruction if a chemical -109- 2009-11ORratinq Budget Reauction Options UTILITIES DEPARTMENT: - FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 application does not continue as an ongoing program. Historically, staff has not witnessed any such destruction. Only on-going sewer system overflows. 7. Contract Services. No short term impacts. 18,000 18,000 Manhole Rehabilitation Sancon 100 has been applied annually to manholes that have been identified with UI and root infiltration. Long term effect would be the increases to I/I and maintenance costs to control root infiltration and blockages. PRETREATMENT 8. Contract Services. No impacts. Staff has already 2,000 2,000 Reduce Flow Monitor started to perform this task and Calibration by$2000 has developed a related SOP. 9. Contract Services. At this level we can continue to 1,300 1,300 Reduce Stormwater Sampling meet the sampling requirements set forth for the Industrial Stormwater(WRF)permit. I believe that the original budget of $1900 was set when stormwater was first part of Utilities. As some of this money could potentially be used for the Pathogen TMDL,reduction of this item may be further impact the Stormwater(General Fund) budget. WATER RECLAMATION FACILITY 10. Janitorial Maintenance. No short term impact. WRF has 6,000 6,000 Offer janitorial maintenance all pertinent equipment and to public works. WRF is supplies for janitorial currently paying outside maintenance. contract$6,000 for this service. No long term impact. If public works declines, No significant short term impacts. WRF staff will take over Some operator and maintenance janitorial responsibilities. time will be used to accomplish This work could be this task but it should not be accomplished for this budget significant. cycle by WRF personnel but not into the 2011-2013 budget In the long term,this will be a low cycle. priority item. Janitorial duties will be completed as time permits. -110. �Y ��- 2009-11 Operating Budget Reauction Options UTILITIES DEPARTMENT: - FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 WATER QUALITY LAB 1 I. Operating Materials& In the short term and long term, 1,000 1,000 Supplies. there are no internal or external Eliminate steel toe boot service impacts funding 12. Operating Materials& In the short term,no internal or 5,000 5,000 Supplies. external service impacts Recycle and reuse microbial glassware In the long tern,there will be some additional staff time required which may be partially offset by less time ordering and paying bills for new goods. 13. Operating Materials& In the short term, no internal or 400 400 Supplies. external service impacts Recycle and Reuse reagent blank filter pads In the long term,there will be some additional staff time required which may be partially offset by less time ordering and paying bills for new goods. WATER RECLAMATION FACILITY 14. Landscape Maintenance. No short term or long term 28,000 28,000 Offer landscape maintenance impacts if accepted by public to public works. WRF has all works. necessary equipment. No cost to public works. WRF is currently spending$28,000 for an outside contractor. If public works declines, In the short term,landscape WRF staff will take over maintenance by WRF staff will be landscape maintenance. a low priority item. WRF staff WRF has all necessary feels that they can maintain for the equipment. No additional short term. costs for equipment. In the long term, if WRF staff cannot keep up there may loss of some shrubs,trees,and grass may not be groomed regularly. PRETREATMENT 15. Contract Services. This will have no short term 100 100 Reduce Newspaper impacts and will allow for some Publication cost(7227). As inflationary cost related to the part of Pretreatment current instability of the requirements,Significant newspaper industry. 2009-11 Operating Budget Reauction Options UTILITIES DEPARTIVIENT� S�. WER FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010.11 non-compliance dischargers are published in the local newspaper annually. The current cost for this is approximately$200 per year. 16. Office Supplies. This will have little to no effect to 300 300 Reduce Office Supplies service. (7421)from$800 to$500. 17. Contract Services. Eliminates ability to upgrade any 1,300 1,300 Reduce Software updates/fees software beyond annual minimum (7227)by$1300. payment to maintain current FoxPro system. With this system going away and the cost of anew system still undetermined the impacts to cutting this budget are unknown. There is currently discussion about cost sharing part of a conversion to a new system with Stormwater(General Fund). There might also be future funding for this conversion from other sources. 18. Travel,Meetings& Impacts from this cut would be 1,500 1,500 Association Dues. both short term and long term. Reduce Professional While continuing education can be Conference Attendance obtained through other sources, such as webcast,the overall loss of contacts and discussions that occur at conferences could lead to less ability to compare strategies with other Industrial Waste and Stormwater professionals. There are very limited opportunities to have related professional interactions in the SLO area. WASTEWATER ADMINISTRATION 19. Eliminate Administrative Overall departmental impact is 0.3 17,000 17,000 Assistant III position. expected to be severe.The Position currently filled. department has 66 employees with an administrative support staff of FTE reduction would be 1.75 FTEs to provide required, implemented effective July 1, specialized office and 2009. administrative support functions. The majority of department staff Costs based on salaries and is not versed in the myriad benefits current as of administrative tasks performed by February 2009. this position and significantly depends on the functions it provides. _ n2- 9y-/��. 2009-11 O erating Bud et Reduction Options UTILITIES DEPARTMENT: SEWER FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 Aspects of essential work currently provided by administrative support staff would become a task of management (e.g.website updates,processing travel vouchers/credit card payments,preparing graphics/materials,reports,forms, invitations,filing,maintaining technical library,answering the phone,receiving visitors,mailing, coordinating meetings)as there would be insufficient capacity with remaining administrative support staff to accomplish all of the work. Transference of this workload to others would have severe impacts on response times.The ability of managers to focus on their core competencies would be impacted to varying degrees—depending on what tasks were assigned them to take on. Both internal and external customer service would be moderately to severely impacted as priorities are juggled and potentially new skills are learned by those assigned to perform the work.Public access to the Utilities Administrative building may be routinely impacted due to lack of staffing.Ability to access complete information in department files or the technical library,the administration of the lateral program,and timely website updates would be negatively impacted. WASTEWATER COLLECTION 20. Eliminate Wastewater PM hydro-cleaning is a#1 2.0 175,500 175,500 Collection System Operator priority. In the short term with positions. staff reduction,this component of Positions are currently filled. the wastewater collection programs would not be 2 FTE reduction would be jeopardized. Other programs implemented effective July 1, would be prioritized daily and 2009. completed as required. An increase in overtime would be inevitable. In the long term,staff reductions -113- 2009-11 Operating Budget Reauction Options SEWERUTILITIES DEPARTMENT: FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 would cause inadequate maintenance and operation of the wastewater collection system. Historical records and scheduled work loads requires adequate staffing for an effective on-going comprehensive maintenance program. Staff reduction would have a long term negative impact on City major goals and objectives. In the long term,this would cause crisis management with the on-going increase of catastrophic failures,an increase of sanitary sewer overflows (SSO's),overtime and an undetermined amount of environmental impacts. A major City goal is to provide Uninterrupted sewage flow without health hazard,effluent leakage,(SSO's)or water infiltration and inflow. PRETREATMENT -- 21. Reduce Industrial Waste Currently performs over 320 0.2 19,100 19,100 Inspector position to 0.8 inspections per year. This will be FTE. reduced to 250. Fewer inspections Position is currently f lied. could lead to potentially more finable discharge violations,WRF upsets,sanitary sewer overflows, and may increase the chance of worker health hazards. Additional workloads will fall onto other sections and departments as plant upsets occur,and fewer stormwater inspections occur. Additionally,if more sanitary sewer overflows occur this is coupled with more reporting and associated fines. There is a possibility of part of this vacancy being filled by Water Conservation staff for some of the Class II inspections. WATER QUALITY LAB _ 22. Travel,Meetings&Dues. Most of our training is specialized 2,000 2,000 Eliminate travel for training and must meet CWEA criteria. purposes. The City's training through JPIA does not qualify for CWEA continuing education units which are required to maintain State -114- 2009-11 Operating Budget Reauction Options UTILITIES DEPARTMENT: SEWER FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 required CWEA certificates.Per Title 22 regulations all Principal Lab Analysts must have a valid CWEA certificate. Since JPIA can not meet our training need, generally we are required to attend specialized training conferences outside of the area. Short term impacts are negligible. In the long term,the Lab would fall behind with current and proposed changes in regulatory and laboratory industry standards. Also,our inability to acquire approved training would result in forfeiture of our CWEA certifications.Because we service many sections in both Utilities and Public works,the long term impacts would affect both Departments.Without state certified analysts we could not perform:NPDES analysis for WRF,field pH's etc for Pretreatment,line break Bactis and field kit calibrations,etc for Water Distribution,field kit calibrations for Fire,TMDL's for Storm Water,New line hook up Bacti's for building inspectors, and Bacti etc for Water Treatment... to mention a few. 23. Travel,Meetings&Dues. Most of our training is specialized 1,500 1,500 Eliminate training funding and must meet CWEA criteria. The City's training through JPIA does not qualify for CWEA continuing education units which are required to maintain State required CWEA certificates.Per Title 22 regulations all Principal Analyst must have a valid CWEA certificate. Since JPIA can not meet our training need,generally we are required to attend specialized training conferences outside of the area.Although,we attend the local CWEA Tri- Counties seminar,we are the ones presenting the seminars in the laboratory section. - 115- l�� 2009-11 Operating Budget Reauction Options UTILITIES DEPARTMENT: SEWER FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010-11 The short term impact is negligible. In the long term,the Lab would fall behind with current and proposed changes in regulatory and laboratory industry standards. Also,our inability to acquire approved training would result in forfeiture of our CWEA certifications. Because we service many sections in both Utilities and Public works,the long term impacts would affect both Departments. Without state certified analysts we could not perform:NPDES analysis for WRF,field pH's etc for Pretreatment,line break Bactis and field kit calibrations,etc for Water Distribution, field kit calibrations for Fire,TMDL's for Storm Water,New line hook up Bacti's for building inspectors, and Bacti etc for Water Treatment... to mention a few. 24. Operating materials& In the short term,the lab would 5,000 5,000 supplies. not be able to undertake or Eliminate investigative/ perform in a timely manner trouble shooting laboratory trouble shooting challenges.For analysis. example,frequently,the lab is asked to determine if a suspected For example,just today water leak is from a city supply Collections had the Lab (which may require trenching)or analyze creek water from a ground water source.Also, associated with a creek there was a strong fuel smell siphon.breakage. coming from the collections system,we sampled and analyzed in an effort to determine a possible source.Often time at the a WRF unusual foam,smells,or strange activated sludge activity prompts us to take investigative samples to determine if we have received an illicit discharge to the plant or are experiencing a pass through. Also during plant upsets,we are required to take additional daily (or multiple times per day) samples to re-establish compliance. In the long term,the lab would be T3 V—/7 O -116- 2009-11 Operating Budget Recruction Options ... UTILITIES DEPARTMENT- SEWER FUND Staffing FTE Description Service Impact Temp Regular 2009-10 2010.11 unable to trouble shoot unscheduled events which may affect the WRF,Collections, Pretreatment and other City assets and Water Distribution customer service and NPDES compliance. This could lead to degradation of City assets,compromised customer service and fines. 25. Overtime. Short term impacts would be 6,100 6,100 Eliminate Overtime minimal if we could utilize currently trained WRF staff.This Because we are currently would be manageable short term down 70 man hrs per week mostly because of the strain on the (The full time vacancy,40hrs, WU staff.We are also currently and the 30hrs per week I used using unpaid interns to offset to contribute to field and overtime and provide holiday and bench top related workloads), vacation/sick coverage. overtime is almost impossible to avoid.Currently we have In the long term,since we only modified our schedules from have three full time permanent 4/10 to 9/80 and 9/80 to a staff for 365 days per year,we can 10/80 to maximize coverage, juggle for a bit using temporary but during holiday and staffing such as unpaid interns and vacation there are not enough WRF staff.However long term,it staff members for adequate is unmanageable. We can and coverage without overtime. have been making up the shortfall We are currently using unpaid with unpaid interns but that is not inters for approximately 30+ a solid long term solution.There hrs of workload driven efforts is a huge potential for service Ins per week. impacts whether it is for internal customers or external customers. In addition,when there is a Unfalfilled workloads or coverage holiday on Mon and the staff issues effects anyone that relies that worked the holiday wants upon our services. to take off Wed,Thurs or Fri in exchange(to avoid overtime),then that leaves Thurs,Wed or Fri critically short staffed or completely unstaffed,because the staff that is supposed to work Wed, Thurs,Fri has to exchange Wed,Thurs or Fri for the holiday that normally falls on their day off. This combination holds true for just about any holiday or vacation scenario.We just don't have enough bodies to draw from. TOTAL 3.9 $436,600 $436,800 -117- 15V-17r al�CE1VED 9pq t 4 7009 April 14,2009 SLO CITY CLERK To: Mayor Dave Romero and Members of the San Luis Obispo City Council City Administrative Officer Ken IIampian From: Lee Price,Pam Voges-Ruggles and Bonnie Gawf RE: City Council Agenda Meeting 4/14/09, Item#B-4: Strategic Budget Direction As former City Clerks for the City of San Lids Obispo, we write to respectfully request that the recommendation in the Staff Report to reclassify the City Clerk's position be rejected. We acknowledge the economic crisis and understand the budgetary issues and challenges you are facing. It is clear, after reading the Staff Report,that there are a number of options on the table, some of which may or may not be.approved after careful evaluation. Like so many other California cities, we know how difficult your decisions will be, especially this year and next. We do not,therefore,make this recommendation lightly without due consideration for the many tough choices you must make to balance your budget. We are compelled to implore and encourage the Administration and the City Council to consider alternatives to finding some costs savings in the reclassification of the City Clerk. While we understand that you have an opportunity now with the pending retirement of Audrey Hooper,your current City Clerk, we hope that you realize that short or long-term reclassification of this critical position in.local government is not best for the community or the organization internally. The Clerk provides the necessary"checks and balances", ensures good process and democracy;and complements the vital functions of the Administration by bringing unique professional and technical expertise to the Office. Reducing the many State and City mandated responsibilities of the City Clerk to a"program"within the Administration is radically understating the value of the responsibilities of the Clerk and the need to maintain some autonomy. Consider the risk and liability the City may face without proper and full attention to so many legal details. We urge you to maintain the status of the City Clerk as an independent department head. Remain committed to filling the position with a well-qualified and experienced professional. San Luis Obispo has been a model City in this regard for decades. Please don't change that now. r Sincere] ' Uf 4 u Yeerice, M C PaLai Voges-Rugs, CM Finnie Gawf, CMC City Clerk Retired City Clerk City Clerk City of San Jose City of San Luis Obispo Az., City of Monterey remmi__ LICOUNCIL G"'CDD DIR I I'C B(nit A&e- 3-FIN DIR RED FILE 2'A4;Aawcalrttcn 2-FIRE CHIEF MEETING AGENDA BTLEORNEY 2-PW DIR I�'CLERK/ORIG 2-POLICE CHF DATE I o9 ITEM #, h� 7 DEPT HEADS R-REC DIR ^:�- PI b FeUTIL DIR � a4 g � NL�J-flrrtEs �Cou�� i /lyJLG � �Illlllllllli�������lllll`I � COUNCIL MEMORANDUM_ _ City of San Luis Obispo, Administration Department DATE: April 14, 2009 TO: Council FROM: Ken Hampian, City Manager Prepared By: Shelly Stanwyck, Assistant City Manager SUBJECT: Item: 4 Strategic Budget Direction — Request for Added Information On A Reduction Option (City Clerk's Office) As noted in the staff report, the goal for tonight's Special Council meeting is directed toward gaining broad "strategic direction," and not toward making specific decisions about the many reduction options listed in the attachment to the staff report for Item 4. The City Manager has yet to make any of those decisions and the number of reduction options required still depend upon"other pieces of the puzzle" coming together, including the level of acceptable CIP reduction, revenue increases,use of the reserve and, potentially, employee assistance through contract changes. However, Council Member Marx felt that it would be helpful to provide some preliminary comparative information regarding the way other comparable cities place their city clerk's organizationally. Attached is information based on cities that San Luis Obispo typically compares to in such matters as well as information about local jurisdictions. In terms of the six cities within San Luis Obispo County, only San Luis Obispo and Pismo Beach presently place their city clerk at the department head level. Again, it should be emphasized that this information represents only one part of a more detailed review of this option that staff can provide later, should this reduction option be recommended with the Preliminary Financial Plan. There are undoubtedly other considerations (and many other reduction options) that will also need to be reviewed more thoroughly before final decisions are made. RED FILE ,Kp"� y ,L __ MEETING AGENDA rrZ2rrtLEft0AIG COUNCIL CDD DIR AIS As 1fGc C7 FIN DIRD/4 U ITEM # 'A6Fc6�cry�,x&C3'F'IRE CHIEF �,�TTT7'ORNEY U-PW DIR 2'POLIEE CHF ATTACHMENTS j ❑ DE T HEADS �G6 DIp 3"� Z UTIL DIR r�-RR DIR 1. Table- City Clerk Comparable Cities i AYW rye �eL 2. Table- City Clerk Local Cities • VA' � � ° o M o Attachment I a c o 0 'V®,e M rl° C9 00 N +S!i0 0 �SrgO a m m Wo- w w s w W T M to m � N N Cq CD Goo coo n 96 M co %^ to to es b v co e 0 ems' r- 0 b% -p % i» Z E!Vp 0 pm N C N v�vb C�� � a� z m n Cl) CD 04 a �, �, P- o c +ves U) V'69 69. Q• p9w I, m c � coo 0 C6 0 n �'Jp^ z comp m J sei90 N W O 63 oz 64�, voi N v Of, COm 4 aeN W r o N t0 mGoCl) �eweLC5 C6 (6 1pOG. v>en to 8 -Y Q z W cli m c NCR oc z m v N M o m N O O LO CD Cl) O b) ° m N JlyJ W U% in a N L C Mcc m N N C O m Eco c m c W N > � � 2U3 c L 0 W Lm w H 2 d W 4�/pay Attachment Z 4 aQ�Ja�b� aJa�/Di M 0 a�40 Jam/ 0 co Ld .Oo 0 /p ch O does � 4p/pad c� c N a6 o e 0 Y s O a� z o LO U 1�4�, Oys/d 6%co Lo N ,7o N C O�pd O � z 69 0 z 0 yap p 0 aA4 z p� N o �6' 0 N z r L N m wO O y O co 4) N d fOc c W CL L W O = d KS ASS RECEIVED [3-COUNCIL Q'CDD DIR ff GAG 2f FIN DIR APQ 14 2009 ZrFIRE CHIEF ,;97ORNEY 2 PW DIR SLO CITY CLERK CLERK CRIG Z�,/POLICE CHF 17 DEP HEADS [! REC DIR El- TIL DIR �r7 mai"1 - !?HR DIR April 14, 2009 i Nkd-7 r-WUWOU n FIT-.-, VILE City of San Luis Obispo 990 Palm Street San Luis Obispo, California 93401-3249 Dear Mayor Romero and Members of the San Luis Obispo City Council, The City Clerk is a critical position in local government and has very separate and distinct responsibilities from any other position in local government. Please consider some of the specialized duties of the City Clerk. The City Clerk is the local official for elections, local legislation, the Public Records Act, the Political Reform Act, and the Brown Act (open meeting laws). Before and after the city council takes action, the city clerk ensures that actions are in compliance with all federal, state and local statutes and regulations and that all actions are properly executed, recorded, and archived. The statutes of the State of California prescribe the basic functions and duties of the city clerk, and the Government Code and Election Code provide precise and specific responsibilities and procedures to follow. The office of the City Clerk is a service department within the municipal government upon which the city council, all city departments, and the general public rely for information regarding the operations and legislative history of the city. The city clerk serves as the liaison between the public and city council and provides related municipal services. I have been in local government since 1988 and I would urge to you look at the role and duties of the City Clerk position using the following analogy that was shared by a City Manager to a fellow City Clerk. Consider the city as a triangle of Policy-Process- Product. • The City Council establishes the Policy—establishing vision and direction for the community's future. • The City Clerk oversees the Process—ensuring that the decision-making process complies with federal, state, and local regulations and that it is properly recorded. ' San Luis Obispo Page 2 • The City Manager provides the Product—which is the primary reason for the existence of local government: to provide services to the taxpayer that the taxpayers cannot(or will not) provide for themselves. Success in public service requires an even-sided triangle. The City Council, City Clerk, and City Manager must understand and respect each other's roles and share an obligation in maintaining this balance. I personally believe that it is through this balance that the integrity of democracy is ensured. Please consider how reorganization of the City Clerk from a Department Head position to reporting directly to staff within the product function affects the triangular balance both in practice and public perception. A City Clerk functioning solely within the process arena retains the objective, apolitical, and neutral perspective expected by the citizens of an elections official and keeper of the public record. Sincerely, / � J Margaret S. Roberts, MMC CCAC President c: Ken Hampian, City Administrative Officer Go Office of the City Clerk•City of Menlo Park•701 Laurel Street•Menlo Park,CA•94025.650.330-6620 650-328-7935(fax) �`��E oary San Luis Obispo County Bicycle Coalition �o y PO Box 14860 • San Luis Obispo, CA 93406-4860 � s x ,� m l l Adam Fukushima, Executive Director McgB�cI'cle Coalition Phone: 805-547-2055 le_-_ ___ Email: adamf@slobikelane.org San Luis Obispo City Council 990 Palm Street San Luis Obispo, CA 93401 April 13, 2009 RE: Goal Work Programs for FY 2009-2011 (Business Item 3) and Strategic Budget Direction (Business Item 4) Dear Honorable Mayor Romero and Members of Council, The Bicycle Coalition would like to thank the hard work of city staff in preparing the budget work plan for the FY 2009-2011. We have reviewed the draft and would like to submit the following comments. We are glad to see that significant progress is proposed for our city's bikeways for the next budget, especially the Railroad Safety Trail. The City has won over$1.6 million in state grants for the trail. These grants have mandatory deadlines for project completion. We are pleased to see that City staff has recognized the importance of honoring the deadlines so that the City is in good standing to apply for those grants again in the future. We also strongly support the recommendation to continue staffing for the Bicycle Transportation Programs Assistant(see page B4-123), which is set to end with the 2007-2009 budget. This staffing position is critical to the City's success in winning state and federal grants. In the current budget, this position has leveraged $2.27 million. That amounts to over $70 of outside funding for every $1 invested with city funds. Sincerely, LEMOUNCIL pZ;DD DIR RED FILE ciry c 3-FIN DIR — MEETING AGENDA p A IRE CHIEF C-Pw DIR i ITEM #. �LERK/DRI+3 2 PbuCE Cr ❑ DEPT HEADS 0-fgEC DIF Adam Fukushima ei3 []--L1TIL DIR Executive Director —= - R-HR D)R San Luis Obispo County Bicycle Coalition N 40uAJcrL crty A&-e- Page 1 of 2 Attachments can contain viruses that may harm your computer.Attachments may not display correctly. Council,SloCity From: Sandi Sigurdson [sandi@slosymphony.com] Sent: Tue 4/14/2009 9:23 AM To: Council, SloCity Cc: Subject: Continue funding for PCC programs and activities Attachments: I_j SLO Symphony letter to SLO City Council April 2009 doc(36K6) April 13, 2009 Council Members �rCOUNCIL City of San Luis Obispo DD DIR RED FILE E r�eAo4(ry,,,�,� FIN DIR 990 Palm St. MEETING AGENDA /���eQ"FIRE CHIEF DATA ITEM # `L. �'�CRNEY p Pw DIR / ii CLERIH 13 C'l�ppI,ICE CHF San Luis Obispo,CA 93401 f 0 HEAD3 r�Etm 91R LIfiIL DIR C HR DIR A)6V 71MC-5- `IuNGL Esteemed Council Members, I do not envy you your position of having to balance the funding of the city's varied and noble objectives against shrinking revenues. In the past 2 weeks we at the Symphony have instituted a 10%wage cut for orchestra musicians and administrative staff while continuing to meet oureducational commitment to our youth symphony families and bringing superb classical music to our community. Damn....and onward. Now is a time when we consider our mission: programs and activities indispensable to our mission, programs and activities that can be postponed to better financial times and programs and activities that lay the foundation for a strong rebound in better financial titi g. Your continued investment in the PCC positions the City of SLO for a strong tourism rebound in better financial times. Even a cursory review of your Promotional Coordinating Committee's Tourism Marketing Plan will(re)convince you that this advisory body is an unbelievably deep pool of talent and experience. Their analysis of TOT trends,travel trends and coastal destination competition like Monterey and Santa Barbara is targeted, measurable and stark. The PCC has: Indentified opportunities for marketing to culture-oriented travelers and travelers interested in.food and wine trips. Recognized the cost-savings potential for marketing collaboration with print-and-intemet savvy cultural organizations like the San Luis Obispo Symphony. https://mail.slocity.org/exchange/slocitycouncil/Inbox/Continue%20funding%20for%20.P... 4/14/2009 Page 2 of 2 C Articulated that our citizens'strong ties to community events and cultural activities are who we are. I strongly encourage you to lay a foundation for a strong rebound in better financial times and continue your support of the programs and activities of the PCC Yours Most Sincerely, Sandi Sigurdson, executive director Sandi Sigurdson Executive Director San Luis Obispo Symphony (805) 543-3533 sandi@slosymphony.com https://mail.slocity.org/exchange/slocitycouncit/Inbox/Continue%20funding%20for%20P... 4/14/2009 Fiber Coast LLC 194 Country Club Drive San Luis Obispo,CA 93401 805-441-1867 bur[caldwell@gmaii.com April 14, 2009 San Luis Obispo City Council 919 Palm Street City Hall San Luis Obispo,CA 93401 V: .A.pDI'i`IONAL PARKING AVAILABLE FOR CITY CONSIDERATION Dear City Council Members: This letter is to confirm conversations that I have previously had with each of you, City Staff, and toe Downtown Parking Association. As you know,our plans for the city block of Marsh, �Wden, Pacific and Broad have recently changed with the purchase of Long$ by CVS. WFate currently in a position to enter into an"offer to negotiate"with the City the back half-block of that location. The area in discussion is approximately 125 feet along IlwM'and Garden, and 295 feet along Pacific. This area, as a surface lot, could accommodate approximately 120 automobiles. Meters could be utilized while planning on a parking structure proceeds. The annual revenue, as I understand the number from staff,would be about$1,440 per meter,with fees and enforcement giving the City additional annual revenues of$172,800. It has been voiced,by many,that an ideal spot for another parking area would be the Wells Fargo Site. As is obvious,that site is only a half block away from this site being offered. The opportunity is here to explore a possible arrangement. (I.e. Purchase, lease option, land lease,or possibly another form). Regardless, of what the City decides about the timing of a garage on this site, it does seem to be a critical piece of property for the eventual build-out to meet the downtown parking needs. Page 1 of 2 Thank you for your attention to this matter we look forward to your response. Sincerely, Burt Caldwell Charlie Kamm Page Z of 2