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HomeMy WebLinkAboutAgenda Packet - CC - 2007.02.28 JBU CITY 0 tRLINGAME OQ1 9 ORATED JUNG 6 The City of Burlingame City Hall—501 Primrose Road Burlingame,CA 94010-3997 _City Council Budget Policy Study Session Wednesday, February 28,2007, 6:00 p.m. Burlingame Public Library, Lane Room AGENDA I. Call to Order and Roll Call (6:00)—Mayor Terry Nagel II. Mid-year Report- Status of the current year budget (6:03) a. FY 06-07 and FY 07-08 Revenue projections vs. actual b. FY 06-07 and FY 07-08 Expenditure levels and projections c. Review of the General Fund Budget Model III. CIP Needs (6:30) a. Parks and Recreation b. Public Works IV. Budget Policy Issues (7:00) a. Budget Assumptions b. Unfunded Departmental Priorities c. Budget Suggestions Referred from Goals Session o Rail grade separation o Additional Business District clean up o Easton Drive Master Plan o Easton Drive Realignment o Business Ambassador V. Break(7:45) VI. Public Comments (7:55) VII. Council Direction (8:30) a. Budget Assumptions b. CIP Funding c. Budget Suggestions VIII. Adjournment (9:00) Note: Time frames and sequence of discussion is tentative and may be changed by the Council BUFiIJNGAME � � � = 3URLINGAU CIiY LOLL City of Burlingame, CA Mid-year Budget Report Fiscal Year 2006-07 February 28,2007 FY 06-07 Mid-year Report 1 a�RUNGAME Mid-Year Report • Looks at first six months of the fiscal year • Verifies that projected revenue growth is on target • Compares revenue collections to prior years • Highlights adjustments or anomalies February 28,2007 FY 06-07 Mid-year Report 2 1 B General Fund Revenues • FY04 = 5.4% Growth • FY05 = 6.0% Growth • FY06 = 10.2% Growth • FY07 = 7.2% Growth (in the first 6 months) February 28,2007 FY 06-07 Mid-year Report 3 ��RUH�AM� General Fund Revenues • Adopted Budget = $39,091,885 • Mid-Year Collections = $1753051554 • 44% of Budget Collected to Date — Approximately 1% off from the 45% collected in FY05-06 for the same period. February 28,2007 FY 06-07 Mid-year Report 4 2 BURS General Fund Revenues e $19 $18.3 0 1 $18 - $17.3 — $17 — __ _ $16.1 — — $16 - ------ -- $14.7 $14.9 $15 — $13.9 $14.1 $14 $13 $12 FY 00-01 FY 01.02 FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07 February 28,2007 FY 06-07 Mid-year Report 5 BUijLIJGAM6 Transient Occupancy Taxes FY04 = 9.27% Growth FY05 = 10.5% Growth FY06 = 15% Growth r—Tr r5r r - r r • FY07 = 10.8% Growth A AR (in the first 6 months) February 28,2007 FY 06-07 Mid-year Report 6 3 s BU Transient Occupancy Taxes N $7 _.._---- _ ..._..___._ _.._._. ___._._ __.___.___ .___..__..._ .... o $6.6 j $6 - $5 - --- $5.2 i $4 — ----- - - $4-7_____,,__ $3 - $3.6 -- $3.1 $3.0 $3.2 $2 - ---------- _ $1 FY 00-01 FY 01-02 FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07 February 28,2007 FY 06-07 Mid-year Report 7 BU- LINGAME Sales and Use Taxes kwW • City receives only 1% of the 8.25% collected by the State of California • State takes 25% of the City's annual sales collections under the "Triple-Flip" scheme • State provides an equal amount of property tax from their General Fund as repayment • City collects it as "Sale Tax Compensation" February 28,2007 FY 06-07 Mid-year Report 8 4 6URUfYGAME Sales and Use Taxes • FY04 = 9.1% Growth -- v • FY05 = 3.7% Growth t- , • FY06 = 3.5% Growth ` • FY07 = 2% Growth (in � the first 6 months) February 28,2007 FY 06-07 Mid-year Report 9 BURL Sales and Use Taxes c $5.0 o ; - w $4.0 =i $4.1 r—� ¢�,� 53.6 $3 0 $3.5 $3.3 w3.4 $3.1 $2 9 $2.0 r. $1.0 ----- --- - -- --r - --- FY 00-01 FY 01-02 FY 02-03° FY 03-04 FY 04-05 FY 05-06 FY 06-07 February 28,2007 FY 06-07 Mid-year Report 10 5 �RufVGAt1E Property Taxes • Reflects more than property taxes • Includes former Motor Vehicles In Lieu of Tax • Includes San Mateo ERAF Refunds — Which are not constant — Which the County can not ensure will continue — Based on complex County auditing February 28,2007 FY 06-07 Mid-year Report 11 BURUf[GAME property Taxes FY04 = 8.10% Growth • FY05 = 26.5% Growth • FY06 = 11% Growth • FY07 = 24% Growth (in the first 6 months) February 28,2007 FY 06-07 Mid-year Report 12 6 aProperty Tax Roll Growth • 2004 = 6.8% • 2005 = 6.8% • 2006 = 8.6% Source: San Mateo County Assessor(June 2006) February 28,2007 FY 06-07 Mid-year Report 13 BUii'LIIVGAME property Taxes • Adopted Budget = $10,365,147 • Six Month Collections = $5,325,815 • Collections represent 51.4% of budget FY 0607 Secured Secured _Unsecured Unsecured Unsecured Secured Property Tax ER4F Total Actuals CurrentSupplemental „Current... Personal Supplemental Supplenn Li ental Ieu of VLF Refund Property, SB 813 Prior Prior Prior Taxes 1 st Quarter $ _$___..29,447 $._ _$.. - - .... .- $ ___.__ - $____29,447.. 2nd Quarter $ 3,852,439__$___,_ 52,_465 $_ 474681_ $ (24,813) $ ....... $ __$ _94 1,576 $ - §_5,296,366 3rd Quarter $ 4th Quarter $ Totals: $ 3,852 439 $ 81,932 $ 474,681 $ 24,813 $ - $ - $ 941,576 $ - $ 5,325,815 February 28,2007 FY 06-07 Mid-year Report 14 7 f3UR41NGAME Property Taxes a $6.0 C O $7.0 g- $6.0 $5.0- $4.0- 5.0$4.0 $4.5 $4.3 r—� $4.0 $3.0 $3.7 $3 6 $3.3 $2.0 — $1.0 FY 00-01 FY`01-02 FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07 February 28,2007 FY 06-07 Mid-year Report 15 SURLINq.AMEGeneral Fund Expenditures t FY 04-05 —0—FY 05-06 d FY 06-07 $4.5 _. .:. _ _ .._... .. ........ ....._.. ......_..__ _ s` $4.0 -- 5 $3.s $3.0 _ o $2.5 $2.0 $1.5 i $0.5 $. :Jul Aug Sep Oct Nov Dec 1 � A4tcPt #} - . . 3#, "' z $ ygyg : tiltl�''earJr Bercent z i' i�la"is E'.;Sunt avi I 1 2 * E $ t4d a X46 February 28,2007 FY 06-07 Mid-year Report 16 BU Financial Outlook • Stable Economy — Fed expectation for "moderate growth" in 2007 — Inflation is projected to be 2% for the year • With Caution about Expectations — Effects of the global economy — Geopolitical events & conflicts — Drop in home sales & prices — Slump in auto sales February 28,2007 FY 06-07 Mid-year Report 17 a Revenue Recommendations For FY07-08 • Adjust the three major revenue sources by 5% — Transient Occupancy Taxes — Sales and Use Taxes — Property Taxes • Adjust city fees and fines by 3% to reflect the increase in "average" employee labor costs • Complete the revenue/fee study in June and identify policy decisions for FY08-09 February 28,2007 FY 06-07 Mid-year Report 18 9 a Expenditure Recommendations for FY08 • Adjustment of 3% to employee labor costs • Adjustment of 10% to health care costs — Includes Retiree Health Care Premiums • Adjustment of 2% to services and supplies • Minimal investment of$2.3 million for CIP • Maintain General Fund Balance at 25% — Currently 24% (as of June 30, 2006) February 28,2007 FY 06-07 Mid-year Report 19 4) Next Steps • March 23, 2007 — Department submit budgets to the Finance Department • April 16, 2007 — Council adopts Master Fee Schedule with adjustments • May 11, 2007 — City Manager Recommended Budget delivered to Council • Weeks of May 14th and May 21 st — Council meetings with departments February 28,2007 FY 06-07 Mid-year Report 20 10 BURLINGAM6 Next Steps • May 30, 2007 — City Council Budget Study Session • June 4, 2007 — Public Hearing On Proposed Budget and Capital Program • June 18, 2007 — Resolution Adopting Proposed Budget and Capital Program • July 1, 2007 — Start of new fiscal year February 28,2007 FY 06-07 Mid-year Report 21 11 CITY OF BURLINGAME GENERAL FUND BUDGET MODEL FOR FY 08&FY 09(Feb 28,2007) (Showing 5%Revenue Growth and Average 3%Increase in Operation Costs) FY05-06 FY06-07FY 07-08 FY 07-08 FY 08-09 Actuals Adopted Budget Old Forecast New Forecast Forecast Beginning Unreserved Fund Balance: 1.65 3.01 1 0.08 2.18 �. Revenues: 38.38 39.09 41.04 41.04 43.10 Transfers In: 0.58 0.60 0.65 0.65 0.75 Annual Ongoing Revenue: 38.96 39.69 41.69 41.69 43.85 Use of One-Time Funds: 1.60 0.40 0.00 0.00 0.00 State Take Aways: -Jclude� 0.00 0.00 0.00 0.00 Total Available Financing: $42.21 $43.10 $41.77 $43.87 $43.31 Operating Expenditures: 36.25 38.82 39.98 37.80 38.93 Transfers Out(Debt Svc.&Shuttle Bus): 1.44 1.50 1.50 1.50 1.70 Pension Obligation Bond Debt Payments: 2.81 2.90 Total Operating Expenditures: $37.69 $38.62 $41.48 $42.11 $43.53 Ending Fund Balance(Before CIP Contribution): $4.52 $4.484 .29 $1.76 -$0.23 _j FGeneral Fund Contributions to CIP: $1.51 $2.30 7 F. -$-4.-00-7 $2.30 $4.00 Total General Fund Expenditures(Operating&Capital): $39.20 $40.92 $45.48 $44.41 $47.53 Ending Fund Balance(After CIP Contribution): $3.01 $2.18 I� Annual Ongoing Revenue Operating Expenditures Only: $1.27 $1.07 $0.21 $0.31 Surplus(+)or Including Minimum CIP Contribution: -$0.24 General un eserve Balance: 1 $5.74 1 $7.35 10 0 Economic Stability $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 Catastrophic $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 CalPERS Reserve $ 1,200,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 Contingency $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 Centennial $ 40,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Total General Fund Reserves: $ 5,740,000 $ 7,350,000 $ 7,350,000 $ 7,350,000 $ 7,350,000 Budget Madel-FY07 8 FY08 Forecast(2-28).xls 5%Rev Growth 2282007 5:24 PM Agenda Item # Meeting Date: February 28. 2007 BURLINGAME STAFF REPORT SUBMITTED BY APPROVED BY TO: HONORABLE MAYOR AND CITY COUNCIL DATE: February 20, 2007 FROM: PUBLIC WORKS SUBJECT: FY 2007-08 CAPITAL IMPROVEMENT PROGRAM RECOMMENDATION: The purpose of this report is to recommend FY 2007-08 Capital Improvement Program (CIP) projects for Council consideration. INTRODUCTION: The report focuses on general fund and gas tax/ Measure A projects. Water and sewer projects are not included but instead will be presented at the May 30, 2007 budget study session. DISCUSSION OF GENERAL FUND PROJECTS: As indicated in the past, staff has determined that the critical minimum level of annual CIP funding is $4,000,000 in order to keep pace with the rate of infrastructure deterioration. Over the last three years, the average level of CIP funding has been $1 ,500,000 (see attached CIP budget history). Although staff believes that this lower level is sustainable in the short term, a continuation will result in a significant increase in the backlog of capital work as well as liability and maintenance costs for the City. Staff has carefully examined the categories of infrastructure and proposes the following $2,450,000 program based mainly on safety considerations: ■ Storm Drainage Improvements ($860,000) — The Easton Creek Watershed has been identified as the top priority in the Storm Drainage Master Plan and 70% of the improvements have been completed over the last six years. The next phase involves the design and construction of an outfall pipeline with a storm water discharge structure located at the bay front. The final improvement in the Easton Creek Watershed, a new pump station at Marsten Road, will be designed to force storm water into the bay during heavy rains and high tide conditions. In order to complete this work, an additional $2,000,000 will be necessary in future CIP budgets. There are sufficient funds in the current budget to address local flood problems requiring small pipelines and catch basins. S:\A Public Works Directory\Staff Reports\FY2007-08 Capital Improvement Program.doc ■ Sidewalks ($100,000)—Prior to the change in policy, the City had spent an annual average of$550,000 for sidewalk replacement mainly due to tripping hazards. Approximately $42,000 of sidewalk was replaced in FY 2005-06 which was paid for by the property owners. Unlike the previous City financed program, the scope of work was limited to replacing the minimum number of sidewalk sections necessary to address tripping hazards, and did not include fixing hazards that were just starting to develop. Due to limited revenues,staff recommends continuing with the current sidewalk policy and $100,000 for funding sidewalk replacement adjacent to City owned property as well as for program administration. The project area is generally bounded by Edgehill Drive,Oak Grove Avenue, EI Camino Real and California Drive. ■ Handicap Ramps ($100,000)—An American Disabilities Act Transition Plan addresses handicap ramps along public sidewalks. Staff recommends $100,000 to construct 30 ramps primarily in high use and sensitive locations such as shopping areas,schools and transportation centers. • Parks and Recreation($640,000)—The recommended program emphasizes safety and regulatory projects including $55,000 for park pathway rehabilitation, $180,000 for Cuernavaca playground safety/ADA improvements, $10,000 for Pershing Park court resurfacing and $100,000 for Ray Park and Lot J playground resilient surfacing. The program also consists of deferred maintenance projects including $90,000 for new Bayside Park fencing, $150,000 for a new Village Park restroom and $50,000 for irrigation system upgrades at Washington Park. Finally $5,000 is recommended for a street reforestation plan which would annually fund 30 to 40 new trees. Staff will work with the Beautification Commission to identify additional reforestation plan funding sources. • Building ($400,000) —A recently completed Condition Assessment Plan of the City's major building elements identified a ten year maintenance program of$4,000,000 in order to keep the facilities operational and safe as well as prolong their useful life. Staff recommends$400,000 for ADA improvements, security upgrades, ceiling tile replacement, duct system cleaning and partial roof replacement at City Hall, carpet replacement at the main Library, new furnaces, dry rot removal and gutter replacement at the Recreation Center; and plumbing,painting and interior space improvements at several buildings. • Communications($50,000)—The Police Department's radio equipment is at the end of its useful life and needs to be replaced in the next three years to meet new federal standards which require transitioning from analog to digital frequencies. Currently, the San Mateo County Chiefs and Sheriff Association is performing an assessment of all of the Police Departments to determine the portable, vehicle and console radio replacement needs. Staff recommends banking $50,000 for each of the next three years to cover the cost of the replacements which are estimated to be$125,000 to$150,000. S:\A Public Works Directory\Staff Reports\PY2007-08 Capital Improvement Program.doc • Traffic ($100,000) — A recently completed Traffic Signal Master Plan has identified the City's 15 traffic controllers as a priority to facilitate the safe and efficient flow of vehicles. Three traffic signal interconnection systems including the California Drive corridor, Broadway corridor and Bayshore Highway corridor do not function in full coordination due to the deteriorating condition of the signal controllers. Staff recommends a $100,000 project to install new controller cabinets with added safety features such as an emergency vehicle preemption capability and battery backup systems. In addition, smarter software will enable staff to more efficiently implement signal timing coordination plans. The remaining 12 controllers will be programmed for replacement over the next four years. ■ Street Lighting ($200,000) — A recently completed Street Lighting Master Plan has identified the Howard Avenue/California Drive area as a priority due to the outdated underground circuit system. The system requires light fixtures that are no longer manufactured and replacement parts which are difficult to find. Staff recommends $200,000 for a Howard Avenue/California Drive Street Light Circuit System Replacement Project which would convert the old series circuit system to a modern parallel circuit system requiring lower energy usage. The project would include the installation of new conduits and wires as well as the replacement of poles and light fixtures with low-voltage units which are safer to maintain. DISCUSSION OF GAS TAX MEASURE A AND GRANT FUNDED PROJECTS It is estimated that the City will received $1 , 100,000 in gas tax/Measure A revenues, $10,000 in vehicle registration fees (AB 1546) and $278,000 in transportation grant funding. The total of $1 ,388,000 is recommended for the following two projects: ■ Local Street Resurfacing Program ($750,000) — The project would focus on resurfacing residential streets in the Burlinghome Subdivision which has undergone numerous trench cuts as a result of a major water rehabilitation project in 2005 and sewer rehabilitation project in 2006. ■ Arterial Street Resurfacing ($638,000) — The project would include resurfacing California Drive between Dufferin Avenue and the Millbrae City limit, Hillside Drive between EI Camino Real and Vancouver Avenue and Rollins Road between Oak Grove Avenue and Cadillac Way. These streets were selected due to their condition and because they are on the roadway system which is eligible for transportation grant funding. Exhibit: General Fund CIP Budget History and Critical Needs SAA Public Works Directory\Staff Reports\FY2007-08 Capital Improvement Program.doc CITY 0 BURUNGAME Background Information and Options For Council %ATEO JUNEd Budget Policy Discussion, February 28, 2007 The budget process is once again upon us and the work of formulating a new financial plan is underway. As was the case last year,the fiscal pressure is less. Revenue growth has occurred and operating costs have been contained and increased incrementally. However,there is still a need to remain fiscally conservative in the upcoming year in order to solidify our gains and avoid undue financial risks. As we witnessed after the terrorist attacks of 2001, sales tax and transient occupancy tax collections can decline dramatically and impact our budget immediately. Staff has confidence that the growth we have experienced will continue, but there is always the caution that another serious incident will occur, for example a pandemic, causing our gains to disappear. I realize that there is a desire to restore the levels of services that were lost in the last four fiscal years,but it is important to maintain a long-term view of our finances. Ultimately our job is to help you make the decisions that are best for our citizens during good times and bad. The following information is provided to give you insight into the city's finances and to assist you in making policy decisions that we will implement in the new budget. A.Budget Assumptions After three years of revenue declines,the City did experience revenue growth in the General fund in FY03-04 and FY04-05. In FY03-04, the Council adopted a 3% revenue growth factor for the budget and realized actual growth of 5.4%. In FY04-05,the Council approved a revenue growth factor of 3% and achieved actual growth of 6%. Given this trend,the Council opted to budget for 5% growth in the both FY05-06, as well as,the current FY06-07 budget. At mid-year, all indications are that the budget revenue estimates should be achieved. The City's budget model is being updated and will be presented to the City Council Wednesday night. The budget model once again projects 5% growth for the upcoming fiscal year(FY06-07) given the rate of revenue growth that has occurred in the last two years. We believe this to be a conservative, yet realistic projection of growth for the new year. The model also includes employee costs based on our projection of what it would take to keep salaries for all bargaining units at or above the median level for cities within our survey group. In addition, benefits have been adjusted in accordance with the various Memorandums of Understanding. Although increases in salaries will vary by the different bargaining units,the result is an overall increase in employee costs of 3%. The model will show a balanced budget for FY07-08 based on the revenue and_expenditure assumptions that have been described. This includes an appropriation of$2.3 million for capital Budget Policy Session 2007.doc of 4 1 improvements in the new fiscal year. What the model does not include is any new positions or increases in operating costs beyond the projected 3%. If Council desires to eliminate current revenue sources or add new expenditures to the budget, then new revenue or budget cuts will be required. At the study session we will be asking that Council to provide us feedback on the assumptions that are included,especially the 5% revenue growth rate,the 3% increase in employee costs and 2% for operating. B.Budget Reduction Approach The Council has implemented a multi-pronged approach to balancing the budget in past fiscal years. The strategies include: ➢ Annual adjustment to fees and fines Shared services with neighboring cities Cuts to services and elimination of positions Annual Adiustment to General Fund Fees and Fines As has been the practice for the past three years we recommend that general fund fees and fines be adjusted to reflect increases in annual operating costs. That amount represents an increase of 3% for FY07-08. We believe that as with any business it is best to make incremental, annual adjustments to cover rising costs than to delay those increases only to have to make them up with sizable increases two or three years down the road. As the Council knows we hope to complete a fees analysis prior to June and as a result expect to bring additional fee policy issues to the Council that may well result in some fees increasing by more than 3%. Shared Services Shared service proposals have provided budget savings in the previous fiscal years. Our success with the fire merger and Public Works department shared services agreement with the Town of Hillsborough to provide sewer maintenance services are two examples. At this point staff does anticipate some possible discussions with neighboring cities for additional shared services but nothing specific for discussion at this point. Budget Cuts Beginning in FY03-04, the Council has authorized four levels of cuts to the General fund operating budget which reduced annual costs by$4.8 million. Tier One Reductions: $1.7 million FY03-04 Tier Two Reductions: $0.9 million FY03-04 Tier Three Reductions: $1.8 million FY04-05 Tier Four Reductions: $0.4 million FY05-06 Budget Policy Session 2007.doc of 4 2 The goal of those efforts was to achieve a structural balance between annual revenue collections and operating expenses. The good news is that we have structural imbalance between operating revenues and expenditures. The bad news is we still don't have enough projected annual revenues to fund capital improvements from the General fund. We continue to estimate that the city's capital needs require $4 million annually. As mentioned earlier,the budget model does include $2.3 million of onetime General fund money to finance capital improvements next year,but there is still a projected deficit in FY08-09 even if we continue to only fund half of the minimum investment that staff feels is necessary. As per Council direction we will continue to discuss ballot alternatives to help address this crucial issue for our long term viability to provide infrastructure to meet the needs of this community for years to come. D. Budget/Service Level Increases E. General Fund Funding for Capital Improvements Policy issues pertaining to the funding of capital improvements in FY06-07 are presented under a separate report that is part of this packet. F. Community Group Funding The final item requiring Council input is the funding for local community groups. Last year staff developed a standard form that solicited the same information from all applicants for community funding. The form was well received by both the community groups and the Council. It simplified the funding application and provided the Council with similar information from each agency that could be used to compare the different requests for funding. The form will be used once again this year. Funding for the Community Groups has been augmented by 2% in the budget model. This will provide $54,000 for awarding funds to the non-profit organizations. The annual letter informing community groups of the availability of funding will be mailed in March. Final Comments I know that it has been difficult to reduce services and positions over past budget years,but I want to acknowledge the discipline and fortitude that the department directors and city staff have shown. No matter what levels of cuts were implemented,they maintained their commitment to public service and continued to assist the citizens as best they could. In addition,the departments have done an excellent job of continuing to under-spend their budgets. Their Budget Policy Session 2007.doc of 4 3 actions are a far-cry from the general perception that government bureaucrats continuously spend their appropriations only request more. Now that revenues have recovered and are growing, it is important to protect the levels of service that remain in tact. While staff is optimistic about the future we remain cautious of any potential drops in revenue that may occur given the uncertainty in the world. As such, our overall recommendation is that the Council continues the budget philosophy that was implemented from the onset of the economic downturn. That includes: 1. Acknowledging that the loss of transient occupancy and sales taxes created a new base level of revenue and that the recovery, once begun,would not be immediate but rather a normal steady growth of 3%to 5%. 2. Implementation of budget reductions that were designed to re-establish a structurally balanced budget where annual revenue collections would cover or exceed ongoing operating expenses and capital improvements. 3. Judicious and prudent use of our general fund reserves to limit service reductions until we achieved the structural balance between annual revenues and expenses. 4. Identify a recommended ongoing funding requirement to maintain our investment in infrastructure such that at a minimum investment keeps us from getting any farther behind in terms of deterioration. Last year we achieved an important milestone in our recovery where we achieved a structural balance between annual revenues and operating expenses. The good news is that we will avoid further cuts. But we are not ready to celebrate as annual revenues will still be inadequate to fund our ongoing need for$4 million in capital improvements. As the goals suggestions indicate there is a desire to reinstate service reductions. They include increasing library hours,the library collections budget and adding police officers. As public employees we are always interested in improving the services we provide our community, particularly in a community like Burlingame where citizens have enjoyed a relatively high level of service. So we fully understand the temptation to respond to calls for greater services. However the last five budgets have left us in position where we have under funded our public infrastructure by roughly$10 million dollars. This means we have fallen behind in our basic obligation to ensure that the core infrastructure needs are met. We believe that some tough love is still needed and that the Council needs to tell the community that they would love nothing more than to start reinstating service levels. However, we need to stay the course and commit that our first call on any new funding is to address our public infrastructure. I look forward to our budget discussion on Wednesday, February 28, 2007. Budget Policy Session 2007.doc of 4 4 Options for Additional Funding for Fiscal Year 2007-08 Unfunded Departmental Needs In preparation for the Council's budget session last year we had cautioned the Council that"if you reinstate services in one department some other department and commissions may interpret that they too need to develop constituencies to lobby or pressure you". Although fortunately we did not see and overwhelming reaction to new funding decisions last year,we did experience some follow up lobbying by a special interest group last year. In order to assist the Council in looking at commission or community requests for special consideration I have asked each department to develop a list of unfunded needs. In developing there lists departments were asked to identify needs they would fund if they had up to$50,000 more in additional budget funds,$50,000 to $100,000 more and over$100,000. As you can see from the attached lists,the needs vary depending on the level of additional funding. It would be my intention to maintain the list and ask the Council to review it against the request for additional funding that comes up though the year. To begin with please consider this list as you look at the cost associated with the items discussed below that came out of your goals discussion. Easton Drive Realignment Staff had a topographic survey performed at the Easton Drive and Cabrillo Avenue intersection in order to prepare a sketch design of a street realignment. Based on feedback received from Council and the public, the attached drawing meets the following criteria: ■ The scope of worst is limited to an Easton Drive realignment west of Cabrillo Avenue only. ■ The south side of the realigned street is set so that no utility poles or trees are impacted ■ The north side of the realigned street is set so that no part of the hump is within the roadway ■ The realigned street is 20 feet in width An asphalt curb would be placed on the north side of the street which is bonded to the surface of the pavement thereby not requiring any shaving of the tree root. The realigned street would be sloped from the north to south side thereby eliminating ponding water near the tree root. The design concept is very preliminary and is subject to change depending on information received after exposing the tree root. Also, a forecast of the root growth can be made at that time. Staff continues to be concerned that the realignment creates a jog in Easton Drive at Cabrillo Avenue making the turning movements off of both streets potential safety hazards. Based on the sketch design, the construction cost is estimated to be $80,000. As this is non-standard design, staff recommends that if Council wishes to pursue the realignment, general fund monies rather than gas tax or Measure A funds be used for the construction. Staff will coordinate with the Parks Department and Traffic, Safety and Parking Commission to develop a final plan for Council to review in May. 2 MA. ty, ih r36 PQ .Lf. 4 03' z _1 4. L� 31 FFF "ji.2 I— 'Th 4 Mr i?I Ua W9 U-10 • 141. 141, I\ 1 . is1 SI itle p� tte F4 WN 7,,- V-0 gill I, W.5 kne /w I I a...• jun —.Xfw .......aw— lpt -ij Railroad Corridor Study Staff has researched the status of possible future Caltrain improvements in Burlingame to assess whether a City initiated grade separation study is appropriate at this time. Following is a summary of railroad improvements based on recent discussions with Caltrains/Transporation Authority staff. High Speed Rail: The scope and timing of this project is unknown. The Governor has recently backed away from his earlier commitment to promote State bond financing for high speed rail. In addition,the Regional Transportation Plan,which is the basis for allocating transportation funds, does not include a high speed rail project. There is no final consensus as to the routing of high speed rail between Southern and Northern California including the segment between San Jose and San Francisco. Without a financing plan or a firm scope of work, it is unlikely that high speed rail improvements would occur in Burlingame for decades. Electrification: Caltrain is actively pursuing an electrification project based on a 2004 environmental report. The latest estimate for construction is between 2010 and 2014. The scope of work includes overhead wires which would allow speeds of 90 miles per hour and 172 trains per day with five minute headways. An electrification project would not require that street crossings be grade separated. Staff does not recommend pursuing a consultant study to evaluate grade separations in the Burlingame corridor at this time. Grade separations are not required for electrification and the timing of a high speed rail is many years away. The cost of a study would be significant. The City of San Mateo had six possible grade separations studied for developing a land use plan along their railroad corridor. The $300,000 study was initiated by San Mateo but was eventually taken over by Caltrain as their knowledge of railroad operations and railroad infrastructure was crucial to the successful completion of the evaluation. Instead, staff recommends that Caltrain be invited to make a presentation of their electrification project and describe the impacts to Burlingame. The presentation could also include a discussion of the impacts of electrification on any future high speed rail project as well as the Broadway grade separation feasibility study. Based on this discussion, the City can then determine whether to pursue any proactive measures. 4 Increase City Resources To Clean The Business Districts The existing business district cleaning includes the following tasks and annual costs: By Contract ■ Power washing - Sidewalks (5 times/year) $21,200 - Donnelly parking structure 9,200 • Garbage cans - Liner cleaning 30,400 - Spot cleaning 900 - Painting 1,300 $63,000 By City Staff ■ Wednesday sidewalk litter pickup (overtime)* $ 6,500 • Friday sidewalk litter pickup (overtime)* 8,700 • Sunday sidewalk litter pickup (overtime)* 13,000 • Monthly landscape area litter pickup (straight time)* 6.000 $34,300 Total Cost $97,300 * the work needs to be done early in the morning before businesses open Following are three options to increase the business district cleaning: 1. Increase the level of contract/City staff services • Add one more sidewalk power washing $ 4,000 ■ Add a Saturday sidewalk litter pickup 13,000 ■ Add 6 more days of landscape area litter pickup 3.000 $20,000 2. Contract rather than use overtime for litter pickup. This option eliminates $28,300 in annual overtime costs for the current service level which requires 13 person hours per week. Based on labor rental rates for contract sweeping and assuming that the same amount of work can be done twice as efficiently (requiring only 6.5 person hours per week) the cost would still be higher at $40,600. In addition, there would be the added 5 staff cost for some contract administration and management. For these reasons, this option is not recommended. 3. Have all cleaning services performed by City staff. This option would eliminate contract services and instead add a full time maintenance worker position whose sole responsibility would be the cleanliness of the business districts. Duties would include: • Power washing ■ Litter pick up ■ Garbage can cleaning and repair ■ Debris pickup (furniture, etc.) ■ Newspaper rack • Community volunteer coordination ■ Business district coordination • Permit and code enforcement coordination The position's regular work hours could be set from early morning to early afternoon to better coordinate with the street sweepers schedule and to eliminate the need for most of the weekday litter pickup overtime. The position would be the point of contact for follow up on complaints and would have a daily awareness of the business districts condition so as to proactively, rather than reactively, address cleanliness issues. The annual cost of the $75,000 position including benefits would be essentially offset by eliminating $63,000 of contract services, $6,500 of Wednesday litter pickup overtime and $4,500 of Friday litter pickup overtime. There would be a one time cost of $30,000 for a vehicle and steam cleaning equipment. Based on the increased flexibility, accountability and availability for addressing the business district cleanliness at essentially no additional net cost, staff recommends this option. Master Plan for Lower Easton Drive As was discussed at the City Council Goals setting session the request by the Council to do additional work on a reforestation plan for Easton Drive which would include tree specific recommendations has led to a recommendation from the City Arborist that it may be more appropriate to step back and take a look at a lower Easton Drive Master plan (Easton from Vancouver to ECR). Such a plan would not only include more specific information on the reforestation plan but also look at tree placement, planting strip widths, sidewalk placement and parking that would more completely respond to the desire to achieve an urban forest that long term would be less problematic from an infrastructure maintenance perspective. The parking issue is likely to be a controversial one. 6 The estimated cost for such a plan is $44,000. See attached letter to Tim Richmond. Business Ambassador/Outreach Resource Depending on the Council's desire around next steps on ballot measure options, we may find time to focus some attention on clarifying the City Council's vision and priorities in the area of economic development. Absent that discussion and clarification our sense has been that a priority for the City Council is to provide a business ambassador resource that can help facilitate small businesses navigate the planning and building processes. Such a resource would be intended to encourage and support those businesses and hopefully reduce the cost associated with mistakes made by businesses that just lack the experience to know how to avoid those pitfalls. Although we would not expect that this service would generate sufficient revenue from new businesses to offset the cost, it would result in a reputation that Burlingame values the small businesses in our community. As is shown in the attached list of unfunded priorities there are two optional approaches: A part time resource to serve Provide a part time resource to serve as an as Business Ambassador 50,000 ambassador to help small businesses interested in locating here or expanding an existing operation Assistant City Manager $150,000 Professional resource to serve as community relations resource with the responsibility to perform Economic Development service and other communit /Council relations. For budgeting purposes we would recommend the $50,000 option at this time and hopefully we can develop it more as we get closer to Council budget action in June. That would allow some funding that could be used to begin some efforts in this area as we develop a direction with the assistance of the new Community Development Director, Election Costs Because the Council is still undecided on ballot measures for next fiscal year, we would recommend that we plan to draw from the contingency reserve in next year's budget rather than try to anticipate specific amounts for an election for storm drainage funding at this time. 7 JOHN CAH-H LANDSCAPE ARCHITECT February 6,2007 Tim Richmond,Parks Superintendent Parks&Recreation Dept. 850 Burlingame Ave. Burlingame,CA 94010 RE; Easton Drive,Burlingame/Estimated Consultant Fees for Survey,Master Plan and Related Services Dear Tim, As requested,the following is an estimated breakdown of services and fees to prepare a Master Plan for Easton Drive from EI Camino to Vancouver(6 blocks). I spoke with Dave Voorhies,a civil engineer with Underwood& Rosenblum to get his input on what would be advisable to do now as part of the Master Plan process. Conceptual Master Plan It is my understanding that the improvements to be included as part of the Master Plan design process would be the phased replacement of several large,old Eucalyptus trees with a pre-selected tree that would be more suitable,design of parking spaces where feasible and possible roadway and shoulder drainage and paving improvements over a six(6)block length. The numbers below are approximate. 1.1 Aerial survey photos to scale to be provided by the City 1.2 Supplemental topographic survey and drafting for all six blocks $6,000 (2 man survey crew for two days and drafting) 1.3 Review and supplemental report by certified Arborist $5,000 1.4 Civil engineer review of parking layout/circulation $1,500 1.5 Site reconnaissance,Master Plan design as scaled and $20,000 rendered presentation drawings,photo-exhibits,Master Plan report with evaluations,conclusions and recommendations and detailed construction cost estimates. 1.6 Meetings—allow for six(6)meetings,some attended by arborist $5,000 and/or Civil Engineer 1.7 Plan and report revisions based on meetings/oroiect Gose-out $5,00 Subtotal $42,500 Expenses(printing&reproduction etc) $1,500 Total $44,000 15495 Los Gatos Boulevard Suite 5 Los Gatos CA 95032 T 408-358-5122 F 408-358-5133 jcahalan@jps.net CA Reg.No.2894 City of Burlingame a List of Unfunded Items February 22, 2007 DH Team Approx. One-Time vs. Dept Priority Item Cost Justification On-aoina Cost Items Under$50,000 City Manager Contract services for Web Site and 40,000 A resource to handle public information outreach with specific One-time public information skills in web site production and maintenance. City Manager Community satisfaction survey 7,000 Provide the Council with annual objective feedback on public's One-time level of satisfaction with public services Fire Fire Investigation Kit, Hydro carbon 5,000 Help with investigation, documentation and public education One-time sniffer, Prevention laptop Fire Replace personal protective clothing 42,000 Replace up to 17 sets of PPE each year to meet new needs On-going annual plan Fire Traffic Controllers 35,000 Replace aging equipment to control traffic lights at 3 stations One-time Finance Increase Permanent part time Acct 30,000 Return to full time one of the 2 1/2 positions cut in the Finance On-going Clerk II positon to full time in water Department in prior years to increase coverage of the counter. office Finance Reconfigure the reception area, mail 50,000 The space needs to be updated to provide a better work areas One Time room, copier room on the 1st floor. for the postage meter and copier machine. The Receiption window needs to be more visable to the public. HR Additional in-house training classes 30,000 The training tracks program was developed 2-3 years ago and ongoing only one class has been implemented so far. There is a need for regular ongoing training for staff, both legally required (such as anti-harassment training) as well as skill development, especially for supervisors and managers. HR Outsource dental and vision claims 10-15,000 It is a very time-consuming task and a third-party administrator ongoing reimbursement would provide more confidentiality and expertise for dental and vision claims admin. HR Consultant assistance to finalize civil 20,000 The Civil Service Rules have not been updated since 1992. It is a one-time service and personnel rules revision large task that is difficult to accomplish in the course of every day business. Legal review is also required. Library Provide all staff training day 5,000 Provide teambuilding for staff One Time Library Open library from 5PM-6PM on 10,000 Provide an additional public service hour on Saturday On Going Saturdays Library Open 10 AM on Sundays 25,000 Would provide additional public service hours on Sunday, one of On Going the busiest days of the week City of Burlingame VnNNIM evWRLINGAME I List of Unfunded Items February 22, 2007 DH Team Approx. One-Time vs. Dept Prioritv Item Cost Justification On-going Cost Library Increase hours at Easton during 25,000 Would provide additional public service hours at the Branch, On Going morning hours (11-12) Current use has tripled Library Increase Media Budget 20,000 Media is becoming a larger and larger part of our circulation On Going Library Hire a space planner to make 20,000 Would provide better use of current space with the many One-time recommendations on the best use of technology changes over the past 10 years the building with the many technology changes Library Improve lighting in specific areas of 5,000 This project has been pending for several years One-time building on main floor Library Glass doors on a study room to ensure 25,000 We have continual requests for a"quiet study"space One-time quiet study area Library Better utilize upper level space 10,000 Consolidate non-fiction materials on lower level and open up One-time space for display of fiction Library Self-check in children's area 35,000 Children are excellent candidates for self-check One-time Library Hire outreach coordinator to expand 35,000 As our population ages, it becomes more important to provide On-going program outreach Library Reconfigure Children's desk (Redwood 20,000 After 10 years, we are using the Children's Room in new ways One-time City model) Library Create individual study rooms 25,000 The trend in libraries (SMPL) is to provide small private study One-time rooms for group study Parks Street tree inventory 40,000 40,000 Update current list One-time Planning Furniture-CP office 3,000 Office is currently furnished with old prison stuff, not space One-time efficient. Lacks storage capacity Planning Part time Planner 24,000 Lack of regular staff time has caused us to fall behind in One-time code enforcement, need to catch up, develop system and maintain, would be on an as needed basis not to exceed 12 hrs/wk., 50 wks. Police Create Dispatch Supervisor 15,000 Remove sworn oversight. Increase efficiency On-going Page 2 City of Burlingame BpRLINGAME """' " List of Unfunded Items February 22, 2007 DH Team Approx. One-Time vs. Dept Priority Item Cost Justification On-going Cost Police Reinstate 2nd K-9 position 12,000 Replace a 2nd K-9 position back for patrol support/safety One-time Police Tasers 20,000 Complete tasers/distribution to all PD safety personnel. One-time Police Vehicle locators, patrol vehicles 25,000 GPS/computer based locator for PD vehicles/pd and public One-time safety Police Transfer of OLD microfilm records 20,000 Transfer and store micro film reports to laserfisone system One-time Police Camera Upgrade @ police facility 30,000 Continue/replace/upgrade/add cameras for safety One-time Police Patrol vehicle trunk storage units 15,000 Protection of essential equiptment One-time Police Tear gas replacement 10,000 Update all old outdated tear gas, etc in dept. One-time Police Storage Cubicles 7,500 Additional storage for patrol officer's added required equipment One-time PW(Facilities) Training Course $2,000 Certification training in building maintenance for staff On-going PW(Facilities) CAD Drawings $3,000 Vendor would convert building plans to electronic format On-going PW(Facilities) Arc Flash Protection $6,000 Consultant would analyze all electrical equipment and provide One time Assessment/Signage proper signage PW(Facilities) Street Light Poles $6,000 5 replacement poles for potential knockdowns (no poles in stock On-going currently) PW(Facilities) 60 chairs for training room $15,000 Existing chairs are old and becoming unsafe(originally from One time Library after reconstruction) PW(Facilities) Infrared Camera $7,000 Takes infrared pictures of electrical panels to determine areas of One time overheating (camera senses heat loss) PW(Streets) 1 cut-off saw $4,000 Replace the old wacker saw One time PW(Streets) Plotter $10,000 Used to print maps for street sweeping, storm drain cleaning and One time sidewalk repairs.Also used for water flushing, maintenance, sewer cleaning, Wing, repairs, and tracking blockages. Includes purchase, installation, and training. PW(Streets) 2 summer help $10,000 The positions would stencil catch basins and paint red curbs On-going PW(Streets) Cuppola refurbishing $10,000 Refurbishes parking lot J Cuppola including dry rot repairs and One time painting City of Burlingame a List of Unfunded Items February 22, 2007 DH Team Approx. One-Time vs. Deet Priority Item Cost Justification On-aoino Cost Items over$100,000 City Manager Assistant City Manager 150,000 Professional resource to serve as a community relations resource One-time with the responsibility to perform Economic Development service and other community/Council relations. Finance Sound &AV Improvements for Council 360,000 Sound &AV improvements for public meetings and to improve One-time Chambers the sound quality of televised meetings Fire Full-time fire inspector and or staff 135,000 Career development in fire prevention, Admin to assist with Veg On-going captain Mgmt., project work, support training Fire 50 SCBA units with spare bottles and 295,000 Replace aging Self-contained breathing apparatus on all fire One-time test/maintainence equiptment apparatus and vehicles Parks Cuernavaca playground 180,000 Ada, playstructure. Out of compliance On-going Planning New Position-Sr. Planner 105,000 Position needed to provide in-house technical support and On-going supervision of Downtown Specific Plan, draft zoning implementation and prepare State mandated Housing Element, programs. Completed by end of 2009 Police High band radio replacement 150,000 Meet legal FCC requirements/replace older equipment One-time Police Chevy Tahoe Command vehicles 100,000 For use during critical incidents/disaster prep/ETC One-time Police Patrol vehicle video/audio recorders 100,000 Video recording devices for patrol vehicles (reduction of liability, One-time etc) Police Reinstate lost Commander Position 150,000 Add efficiency, management direction, assistance on projects, On-going etc. PW (Facilities) New position - Facilities Supervisor $115,000 The position would improve staff supervision and mentoring as On-going well as provide a needed resource to service Parks Department structures and electrical needs. It would also save$43,000 in part-time project manager costs. PW(Fleet) Emission Control Compliance Retrofit $130,000 There are 13 vehicles needing new emission control compliance One time devices. The work can be done in two phases, phase 1 is estimated to be$60,000 and phase 2 is estimated to be $70,000. • City of Burlingame BURLI GAME List of unfunded Items February 22, 2007 DH Team Approx. One-Time vs. Dept Priority Item Cost Justification On-going Cost Items between 50,000-100,000 City Manager Part-time resource to serve as 50,000 A part-time resource to serve as an ambassador to help small One time Business Ambassador businesses interested in locating here or expanding Fire Telestaff Software 55,000 Reduce workload on staffing officer while ensuring guidelines are One time met to maintain service level. Fire 6 Bi-monthly cert classes 75,000 Allows dept. ability to bring FF's in to instruct public On-going Finance Redesign the Finance/Water office 100,000 Reconfiguration of this area would provide needed space to the One time including the counter area; the finance/water offices and a centralized counter space would reception area and the mail/copier provide better customer service for both water and finance room. customers. The reconfigured copy/mail room would provide a better work space for City Hall. Finance/Admin Provide for electrical upgrades and 100,000 More and more departments are requesting technology one-time Svcs space for the server room. enhancements and IT is finding it difficult to accommodate the requests due to the limited space and electrical power. HR Additional .5FTE to closely manage 60,000 Dedicated attention and monitoring of disabilities and safety on-going workers' compensation claims and program should result in less cost and loss time due to disability. provide in-house investigative services Library Create a computer lab where the 50,000 This was planned during the 1997 construction, so could be One-time compact shelving is now. easily accomplished on the lower level Library Open up Circulation area, create one 50,000 This would open up the "welcoming" area of the library and One-time service desk provide circulation & reference at one desk Library Increase Media Budget 50,000 Media continues to be an important library commodity On-going Parks Fencing Bayside park 80,000 Old, safety concerns On-going Parks Renovate Washington Park Picnic Area50,000 New tables, BBQ, ADA Page 4 City of Burlingame 9DBURLINGAMEList of Unfunded Items February 22, 2007 DH Team Approx. One-Time vs. Dept Priority Item Cost Justification On-going Cost Planning New Position-Sr. Typist Clerk 53,000 Admin. Sec does not have enough hours to prepare packet, On-going maintain files, serve coni nission and meet legal noticing and other filing requirements along with staff support/production activities. Less technical responsibilities would be shifted to this position. Police Create a civilian Property Clerk position 55,000 Remove from sworn position. Meet legal standards and add On-going efficiency PW(Engineering) New Position-CIP Budget Analyst $80,000 Currently the Senior Engineers and Project Engineers track their On-going project budgets and prepare budget status summaries. For a CIP budget of over$81VI annually, it is critical to have a staff Budget Analyst for preparing project budgets forecasts, tracking expenditures and advising engineers. This will allow engineers to focus on the design and construction of projects. An additional function would be to provide public relations efforts for CIP project construction. PW(Engineering) New Position- Permit Technician $70,000 Currently encroachment permits are issued by all employees On-going from the City Engineer to the Engineering Technician. Without a dedicated permit technician, there are inefficiencies and permits are not issued consistently. It is expensive to have higher salaried employees perform these duties. PW(Facilities) New Position-Painter $70,000 Position would be utilized for painting as well as preventive On-going maintenance. A full time position could do 4x the painting which is needed at all facilities. There would be an offsetting reduction of$35,000 in the Major Facilities CIP and $20,000 in operating budget for contract help. Page 5 City of Burlingame BVRLINGAME 1 1 1 1__t____ 1 _ _I It _ List of unrundea Items February 22, 2007 DH Team Approx. One-Time vs. Dept Priority Item Cost Justification On-going Cost PW(Fleet) New Position-Mechanic(Conversion $70,000 Over the course of last 2 years vehicles have been added to the On-going of part time employee to mechanic) fleet including those from Hillsborough. More equipment such as pump station generators have been added. Also, there are newer more stringent requirements from Air Quality Control Board and the County Health Departments for inspections and certifications which take additional time. A full time position would allow system preventive maintenance of all the equipment. PW(Streets) New Position-Maintenance Worker $75,000 Employee would clean parking lots and downtown sidewalks as On-going well as power washing downtown sidewalks and garbage cans. Position would save$62k from contract power washing of sidewalks, garbage cans and parking lots. It will also save$13k in overtime during the week for early starts. PW(Streets) New Position-Maintenance Worker $75,000 Additional employee to grind, ramp, and assist with paving and On-going debris pickup. This will enable the street crew to pave larger trenches and patches without having to break the sidewalk crew up to perform these duties. Page 6