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HomeMy WebLinkAboutJune 24, 2008CITY OF ARCADIA ~~ CITY COUNCIUREDEVELOPMENT AGENCY SPECIAL MEETING [0aa1[y ot0aes TUESDAY, JUNE 24, 2008 AGENDA 6:00 p.m. Location: Arcadia Police Department EOC Room, 250 W. Huntington Drive CALL TO ORDER ROLL CALL OF CITY COUNCIL/REDEVELOPMENT AGENCY MEMBERS: Robert Harbicht, Mayor/Agency Chair John Wuo, Mayor Pro Tem/Agency Vice Chair Peter'Amundson, Council/Agency Member Roger Chandler, Council/Agency Member Gary Kovacic, Council/Agency Member STUDY SESSION PUBLIC COMMENTS (5 minutes per person) Any person wishing to address the City Council/Redevelopment Agency during the Public Comments period is asked to complete a "Public Comments" card available in the Council Chamber Lobby: The completed form should be submitted to the City ClerklAgency Secretary prior to the start of the Closed Session/Study Session. In order to conduct a timely meeting, there will be a five (5) minute time limit per person. All comments are to be directed to the City Council/Redevelopment Agency and we ask that proper decorum be practiced during the meeting. State law prohibits the City Council/Redevelopment Agency from discussing topics or issues unless they appear on the posted Agenda. STUDY SESSION a. Report, discussion and direction regarding Fiscal Year 2008-2009 and 2009- 2010 Budgets. ADJOURNMENT The City Council/Redevelopment Agency will adjourn this meeting to Tuesday July 1, 2008, 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia PURSUANT TO THE AMERICANS WITH DISABILITIES ACT, PERSONS WITH A DISABILITY WHO REQUIRE ADISABILITY-RELATED MODIFICATION OR ACCOMODATION IN ORDER TO PARTICIPATE IN A MEETING, INCLUDING AUXILIARY AIDS OR SERVICES, MAY REQUEST SUCH MODIFICATION OR ACCOMODATION FROM THE CITY CLERK AT (626) 574-5455. NOTIFICATION 48 HOURS PRIOR TO THE MEETING WILL ENABLE THE CITY TO MAKE REASONABLE ARRANGEMENTS TO ASSURE ACCESSIBILITY TO THE MEETING. Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available (or public inspection in the City Clerk's office located at 240 W. Huntington Drive, Arcadia, California, during normal business hours. ot~ ~K~ ~..~d ~roq,~. -f ~~" ~' G. y. `: -. I ' ~ •_ . ~~'~~r June 24, 2008 TO: Mayor and City Council FROM: Don Penman, City Manager SUBJECT: REVENUE AND EXPENDITURE CHANGES TO THE PRELIMINARY FY 08-09 BUDGET; DISCUSSION OF CAPITAL IMPROVEMENT AND EQUIPMENT REPLACEMENT PLAN SUMMARY On May 20, the City Council conducted a study session regarding the FY 2008-2009 Preliminary budget. At the meeting an overview was provided of expenditures and revenues and each department also presented a summary of their operating budgets. Staff also presented a plan of preliminary expenditure reductions and some revenue enhancements in an effort to reduce the General Fund shortfall of $1,804,334. The gap between General Fund revenues and expenditure is 3.8%, so the City Council directed staff to prepare a list of potential cuts/and or revenue increases totaling 3.8% by department. That list has been prepared and is an attachment to this memo. It includes numerous changes, which in fact exceed the 3.8% directive, along with City Manager recommendations. DISCUSSION The total of all General Fund expenditure reductions and revenue increases included in the budget booklet is $2,834,175 which exceeds the City Council target of 3.8% due to the fact that staff looked at a number of options for revenue enhancements. It the Council implemented all the alternatives in the Budget Booklet, it would change the General Fund balance numbers from a shortfall of $1,804,334 to a surplus of $1,029,841. This includes expenditure reductions of $1,135,921 and revenue increases of $1,698,254. As noted, included in the booklet are City Manager recommendations as to the revenue enhancements and expenditure cuts to be included in the 2008-2009 Budget. Of this total $946,045 are new revenues and $827,702 are expenditure reductions. If these were implemented there would only be a $30,587 shortfall in [he OS-09 General Fund budget. The question may be asked as to why all the cuts and revenue increases listed in the booklet are not being recommended, which would result in a positive balance of $1,029,841. While this balance would certainly assist with all the equipment purchases as proposed in the Equipment Replacement Fund, there are a number of reasons all the cuts and revenue increases are not recommended. First aphase-in of some revenues would seem prudent to lessen the impact. Second, more significant service reductions will result if all of the cuts are implemented. Staff was attempting to balance the budget without program cuts to the degree possible. Finally with the slow economy it was felt that implementing all the revenue increases at this time might create a hardship to some in the community. Of the $827,702 in expenditure cuts, $554,000 is in the Police Department, freezing six (6) Police Officer positions. While the freezing of these positions will impact police services, it is important to note that two (2) of these positions were overfill positions authorized by the City Council during FY 06-07, meaning that these were unfunded positions that the Department was authorized to fill should they reach their then full complement of sworn positions. They were then subsequently funded in the FY07-08 budget though they have never been filled due to the staffing shortages the Police Department has experienced over the past several years. In summary, the department up until 06-07 had an authorized strength of seventy-five sworn positions (75). The overfill positions added two more for a total of seventy-seven (77) which included two grant funded officers, the YES Officer at the high school campus (half School District half City funded), and the Narcotics Seizure funded LA Impact officer. So while freezing six (6) positions would have some service impact, the seventy-one (71) officers will result in a complement that the department has not had for close to five years due to all the turnover. Additionally the Police Department is also requesting an upgrade of one officer to sergeant to supervise a special enforcement team and an upgrade of a sergeant to lieutenant for administration. Also, as a reminder, three positions were proposed for elimination in the Preliminary budget already submitted to the City Council: a senior planner, management analyst in the City Manager's Office and apart-time management analyst in Administrative Services (all positions are currently vacant as are the Police positions). The Public Works Services Department is also proposing a minor reorganization which would involve elimination of the Environmental Services Officer position and adding a Management Aide. The department believes that this reorganization will enable them to continue to effectively manage environmental programs while adding flexibility by being able to perfonn other administrative functions that a generalist management position can perform. The new Management Aide position will assist the existing Management Analyst position on the City's various environmental programs such as administration of the stormwater and industrial waste program (NPDES) as well as work on refuse and water related items. The Environmental Services Officer is a more specialized position which does not possess the same general skill set. There would be a cost savings of $51,500 if this recommendation is implemented, though the savings would be realized in the Water, Sewer and Solid Waste funds. If the City Council approves of the changes recommended for the General Fund operating budget, the projected shortfall would be $30,587. Finally we do need to be cognizant that decisions have not been made at the state level which could negatively impact our budget, and they likely won't be made prior to adoption of our budget on July 1. Capital Improvement Plan (CIPI A Capital Improvement Plan has been prepared and submitted to the City Council as required by the City Charter. Staff is recommending approval of this with the following changes: • Elimination of the Residential Streets Rehabilitation program (page 71) which would mean Lucile Street would not be rehabilitated in 08-09. The reason for eliminating this project is that there will not be adequate Gas Tax funds over the next two years to fund this project and others in 09-10. • Add a project for construction of a retaining wall on the access road to Wilderness Park ($450,000). • Add a project to improve drainage off of Santa Anita Canyon Road into an existing culvert ($100,000). • Reduce Library Facility Improvements from $60,000 to $50,000. The City received a request to fund $10,000 out of a total of $25,000 to construct another ball field at Camino Grove School. The request, from Paul Kalemkiarian, is that the Rotary Club contributes $5,000, the baseball league $10,000 and the city $10,000. It has been indicated that use of the School site for another field has been approved. Staff has not included this into the proposed CIP but needs City Council direction to add this in for adoption if that is the Council's desire. The written request is being provided loose in your budget packet. Equinment Replacement Fund There are requests totaling $2,895,420 for new equipment in FY08-09, of which $1,765,420 would be funded by the Equipment Replacement Fund and the balance from the Water, Air Quality Management District (AQMD), Transit and Narcotics Seizure Funds. The Equipment Replacement reserve at the beginning of FY 08-09 is projected at $6,285,000; with the proposed expenditures the balance would be reduced to $4,645,580. The challenge with the Equipment Fund (the portion that pertains to General Fund equipment purchases) is that it has no independent funding source. Many years ago, at least through the 1980's, Santa Anita Racetrack generated enough revenue that it could fund both capital as well as equipment in the budget. Declining revenues from the Racetrack, along with increasing costs for certain equipment and keeping pace with technology changes has created a budgetary challenge for the City. In the past several years the City was able to finance equipment purchases by transferring excess General Fund revenues to the Equipment Fund. However, at least at this time, there are not adequate revenues for this transfer. iii At this time staff is recommending approval of all equipment purchases in the Preliminary budget books with the following exceptions and changes; the electronic citation system at $59,000 (page 187), the shelving systems in evidence storage at $28,000 (page 195) and reduce the Oxygen Refilling System budget to $3,500 (page 201). Developing a long term funding plan for the Equipment Fund should be a priority for the next fiscal year. RECOMMENDATION Staff is seeking direction from the City Council regarding the changes proposed in the budget booklet for inclusion in the FY08-09 Budget. A public hearing has been noticed for July 1, at which meeting the City Council should adopt the Budget. iv F~{~ `~ ~} ~._..'~ ~A REVISED GENERAL FUND BUDGET 2008-2009 JUNE 24. 2008 CITY OF ARCADIA FISCAL YEARS 2008-09 GENERAL FUND BUDGET REVISION TABLE OF CONTENTS Page CITY MANAGER'S MESSAGE ................................................................................................................ i REVISED GENERAL FUND BUDGET SUMMARY ................................................................................ 1 EXPENDITURE REDUCTIONIREVENUE ENHANCEMENT City Council .................................................................................... .............................................. 3 City Manager .................................................................................. .............................................. 5 City Clerk ....................................................................................... .............................................. 7 City Attorney .................................................................................. .............................................. 9 General City ................................................................................... ............................................ 11 Administrative Services .................................................................. ............................................ 13 Police Department ......................................................................... ............................................ 15 Fire Department ............................................................................. ............................................ 17 Public Work Services ..................................................................... ............................................ 21 Development Services ................................................................... .............................................23 Recreation and Community Services ............................................. ............................................ 27 Library and Museum Services ....................................................... .............................................29 CONTRACTED SERVICES OVER $5,000 ............................................................................................31 GENERAL FUND SUMMARY BASED ON CITY MANAGER'S RECOMMENDATION Proposed 08-09 Changes Revised Budget By City Manager Budget Beginning Fund Balance Estimated Revenue: Revenues Transfers-In from other funds To[al Revenues Proposed Expenditures: Transfers-Out to other funds Expenditures Total Expenditures Revenue Over Expentliture Ending Fund Balance 4,080,000 4,080,000 40,654,600 946,045 41,600,645 4,664,871 4,664,871 45,319,471 946,045 46,265,516 481,052 - 481,052 46,642,753 (827,702) 45,815,051 47,123,805 (827,702) 46,296,103 (1,804,334) 1,773,747 (30,587) 2,275,666 4,049,413 GENERAL FUND DEPARTMENT SUMMARY BASED ON CITY MANAGER'S RECOMMENDATION Original Revised Proposed Proposed Proposed Proposed 08.09 Expense Expense Revenue % change Expenditure Budstet Reductions bud et Enhancement City Council 220,900 (7,000) 213,900 - 3.2% City Manager 754,940 (9,000) 745,940 - 1.2% City Clerk 354,355 - 354,355 - 0.0% City Attorney 522,475 - 522,475 6,500 1.2%,~ General City 1,284,920 (20,000) 1,264,920 - 1.6% Administrative Services 2,623,339 (79,952) 2,543,387 - 3.0% Police 16,192,516 (554,000) 15,638,516 175,000 4.5% Fire 11,691,991 (11,800) 11,680,191 252,261 2.3% Public Works Services 4,719,607 (53,500) 4,666,107 355,000 8.7% Development Services 2,878,090 (10,000) 2,868,090 100,500 3.8% Recreation 8 Community Services 2,354,347 (43,950) 2,310,397 10,984 2.3% Library & Museum Services 3,158,873 (38,500) 3 120,373 45,800 2.7% Total 46,758,353 (827,702) 45,928,651 946,045 3.8% z a City Council Potential Cost Reductions Proposed Reduction Potential City Mgr's Impact Savings Recom. 1 Reduce Office Supplies account $1,000 $1,000 Less money available to purchase office and event supplies. The amount of printed materials purchased 2 Reduce Printing account $1,000 $1,000 (stationery, business cards, labels, envelopes, certifcate and proclamation supplies, etc.) will need to be reduced. Less money available for reimbursement to 3 Reduce Official Meetings account $4,000 $4,000 Council Members for their attendance at communication functions, conferences, seminars and special events. 4 Reduce Public Relations account $1 000 $1 000 Less discretionary money for Mayor and City , , Council outreach activities. TOTAL POTENTIAL SAVINGS $7,000 $7,000 THIS PAGE INTENTIONALLY LEFT BLANK City Manager Potential Cost Reductions Proposed Reduction Potential ~ Clty Mgr's Impact Savings Recom. Eliminates the purchase of one over-the-street 1 Reduce Program Expenses account $2,000 $0 banner to promote a City activity or operation, and reduces the funds available for computer software/licenses. This account covers a variety of outside services used by the department. The proposed cut is 2 Reduce Contract Services account $3,000 $3 000 suggested to be in the area of video production for , the government access cable channel and it will result in the production of one less City-produced video. 3 Reduce Official Meetings account $2,000 $2,000 Less money available to attend conferences, community functions and meetings. This cut will: eliminate the Chinese language reprint of the City's ACTION Handbook; reduce the 4 Reduce the Brochures account by $17,500 $0 funds available for direct mail; reduce the funds available to publish or reprint miscellaneous brochures, pamphlets and handouts. This cut will: reduce the budget for an ACTION event from $5,000 to $3,000 and reduce the funds available for miscellaneous community meetings, forums and Council-directed programs from 5 Reduce the Special Events account $4,000 $4,000 $7,000 to $5,000. Events are produced to the budget available. A smaller budget typically results in a lower level (but not necessarily ineffective) event because there is less money to use for operations and publicity. TOTAL POTENTIAL SAVINGS $28,500 $9,000 THIS PAGE INTENTIONALLY LEFT BLANK City Clerk Potential Cost Reductions Proposed Reduction Potential Clty Mgr's Impact Savings Recom. ~ Change full-time Records Coordinator Position to part- $33.500 So This position is currently vacant. time w/benefits. TOTAL POTENTIAL SAVINGS s33,soo Sa THIS PAGE INTENTIONALLY LEFT BLANK City Attorney Potential Revenue Enhancements Proposed Revenue Enhancement Potential Clty Mgr's Comments Revenue Recom. 1 Increase fee for preparation and review of Covenants and g1,5o0 51,500 The current fee is $215 Agreements to $315 Pass through fee far review of reciprocal access and/or Z parking agreement, or any document that as a condition of g5,oco $5,Oo0 There are many cities that now impose approval imposed by the City requires City Attorney review this fee and a royal TOTAL REVENUE ENHANCEMENTS Ss,soo Ss,sao THIS PAGE INTENTIONALLY LEFT BLANK io General City Potential Cost Reductions Proposed Reduction Potential Clty Mgr's Impact Savings Recom. 1 Reduce contract services for cable N $ 10,000 $ 10,OOD Limits the scope of work for Cable N consulting consultant 2 Eliminate the Coyote management program $ 30,000 - There will be no Coyote control This account is an estimated vacation payoff for 3 Reduce the budget for Vacation Payoff $ 10,000 $ 10,000 terminated employees, the reduction should not have any significant impact. TOTAL POTENTIAL SAVINGS $ 50,000 $ 20,000 11 THIS PAGE INTENTIONALLY LEFT BLANK iz Administrative Services Potential Cost Reductions Proposed Reduction Potential Clty Mgr's Impact Savings Recom. Eliminate amount budgeted to pay tuition 1 reimbursement for Accounting Specialist (Payroll $ 2,872 $ 2,872 Potentially none. Position is currently vacant. Clerk). Potentially none. Status of current personnel 2 Reduce amount budgeted for personnel related $ 20,000 $ 2o,ooo actions suggests that costs are likely to be less contract legal services. than in revious ears. Eliminate funds budgeted for staff training on Potentially none. It appears that the City can get 3 handling of blood borne pathogens and hazards $ a,o0o $ a,0oo this training from its joint powers insurance communications. authority at no cost. Departments using persons obtained from tem- 4 Eliminate amount budgeted to pay for persons $ 5,000 $ - porary personnel agencies will have to pay their hired from temporary personnel agencies. own costs. Reduce amount budgeted for recruiting Potentially none. The completion of major recruit- s $ a,soo $ a,soo ments in prior year indicate that costs are likely fo advertisements. be lower. Eliminate amounts budgeted for SGV Funds will not be available for the Department to 6 newspaper and other miscellaneous $ seo $ 5eo purchase miscellaneous publications during the ublications. ear. Eliminate amounts budgeted for miscellaneous Funds will not be available for the Department to T $ 1.sso $ 1,000 purchase miscellaneous office supplies during the office supplies. year. Eliminate amount budgeted for miscellaneous Funds will not be available for the Department to 6 $ 30o g - provide miscellaneous computer training during computer training. [he year. Reduce amounts budgeted for miscellaneous Funds may not be available to respond to unex- g $ a,oo0 g - petted data processing and accounting related contract services. roblems that arise Burin the ear. Eliminate amounts budgeted to lease fiber optic Slow communication and intemet speeds will 10 broadband service. $ a7,ooo S a7,ooo continue. Some software upgrades may be postponed or may not work at optimal levels. Eliminate amounts budgeted for the Accounting Supervisor and Purchasing Officer to attend the Training opportunities for key Department staff will 11 annual Pentamation (accounting software) $ 2'325 _ $ be missed. conference. Reduce temporary help for parking citations, Department may not have sufficient funds to pay 12 fixed asset tracking, and employee absences. $ 3,soo $ - for needed part-time and temporary assistance during staff absences or for special projects. TOTAL POTENTIAL SAVINGS $ 99,737 $ 7ss52 13 THIS PAGE INTENTIONALLY LEFT BLANK 14 Police Department Potential Cost Reductions Proposed Reduction Potential Clty Mgr's Impact Savings Recom. The Department has previously been authorized to operele a[ a full capacity of seventy-seven (77) sworn officers'. This number inGudes (1) Chief of Police, (2) Police Captains, (5) Police Lieutenants", (13) Police Sergeants"', (1) Police Agent, and (54) Police Officers. The freezing of six (S) Police Officer positions would bring the number of police officers from 54 to 45 with the other ranking positions remaining as staled above. The six absent police officer positions, if filled, would provitle flexibility for additional officers to be added to the Tragic assignment, Community 8 Youth Services assignment, and/or patrol as necessary. Adding additlonal traffic staff would allow extended traffic officer coverage during weekends. Freeze six entry police officer Adding additional staff to the Community and Youth Services assignment positions; this includes the two would add flexibility for community outreach and educational programs. The overfill positions that were atldition of patrol officers would augment the Patrol Division's ability to authorized two years ago but peAorm more pro-alive police service and investigative field support. t were never filled. As part of this $545,ogo $545,og Atltled offcers In patrol would also retluce the need to rely on overtime expenditure to cover absences caused by illness, vacation, training, court, action, the De artment would P or other activities that woultl lake a patrol officer from their regularly upgrade ono sergeant to scheduled shift. lieutenant and one officer to Sefgeant. The estimated fiscal savings represented by freezing six police officer positions is $545,000 annually. ' Two of the 77 positions were previously authorized (or'overfill' to create a cushion to account for retirements or other long-tens vacant position '~` openings. " A sixth lieutenant position has been authorized as part o(ihe restructure in light of the six officer heeze. This position is for Administration purposes. "' An additional sergeant position has been authorized as part of the restructure in light of the six officer freeze. This position is for supervision of anew Special Enforcement Team to be operated out of the Detective Bureau. 2 Reduce backgroud check fees $g ooD o o N i due to #1 above $g. o mpact o TOTAL POTENTIAL SAVINGS $55a.ooo Sssa,oo0 - 15 Police Department Potential Revenue Enhancements Proposed Revenue Enhancement Potential City Mgr's Comments Revenue Recom. Once the new false alarm fees are Contract with an outside vendor to administer the t25 oo0 OO0 $ 125 adopted, this is a conservative estimate in ~ false alarm program. $ , , annual revenue and could be substantially higher. 2 Reimbursement from Arcadia Unified School District $ so ooo 8 so ooo The School District has agreed to continue for the Police Officer at the High School campus. , , funding 50% of the costs. TOTAL REVENE ENHANCEMENTS S t~s,oao 5 i75,o00 is Fire Department Potential Cost Reductions Potential City Proposed Reduction Savings Mgr's Impact Recom. 1 Fire Prevention Overtime $ 500 $ 500 Employee primarily chooses to be compensated by comp. time off instead of monetary pay. 2 Administration Tuition Reimbursement $ 2,800 $ 2,800 Only 1 admin staff will participate in the program in FY 2008-09. Emergency Services Offcial Send 1 instead of 2 Fire Officers to the California Emergency 3 Meetings $ 750 - Services Association Conference to learn the latest emergency preparedness information. 4 Emergency Services Training $ 2,000 _ Send 2 instead of 4 Fire Officers to the CSTI classes to learn about emergency management. Staff is not going to attend the State Executive Fire Officer 5 Administration Official Meetings $ 1,100 - Conference and any Administrative Fire Services Section of California Fire Chief meetings. 6 Fire Prevention Off cial Meetings $ 140 - Staff is not going to attend all the Fire Prevention meetings. 7 Suppression Official Meetings $ 200 - No Training Officers or Fire Mechanic meetings will be held. Depending on employee turnover rate, staff will aim to conduct mast 8 Administration Contract Services $ 4,000 $ 4,000 background investigations in-house to save money for the next fiscal year. 9 Suppression Tuition $ 1 000 _ Staff is comfortable with the $1000 reduction in tuition estimate for Reimbursement , the next fiscal year. 10 Buildings 8 Grounds Permits Fees $ 1,000 _ Reduction made based on past year actual expenditures for the Leak Detection Systems certiflcalions and the fuel tank permits. 11 Administration Employee Support $ 2,900 _ Eliminate the City-approved $50 per person annual employee appreciation allowance. 12 Administration Print Shop $ 1,200 _ Eliminate pet safety stickers. Citizens will not be able [o identify to fire personnel that they have pets inside the house. 13 Fire Prevention Arson Program $ 750 - May impact required Arson training per department policy. 14 Building & Grounds Tools $ 2,500 _ Not going to replace all necessary station maintenance tools and vehicle maintenance tools. 15 Building & Grounds Portable $ 1 000 _ Not going to repair or replace all necessary portable equipment and Equipment , appliances. 16 Suppression Portable Equipment $ 1,000 _ Depending on fire activity level, may impact the maintenance and repair of all necessary fre suppression portable equipment. 17 Suppression Field Supplies $ 2,000 _ Depending on crew activities, may impact the purchase of feld and training supplies. 18 Administration Training $ 1,500 _ Staff is not going to attend the Administrative Fire Services Section of California Fire Chief conference. 17 Fire Department Potential Cost Reductions Proposed Reduction Potential Savings Clty Mgr's Impact Recom. 19 Fire Prevention Training $ 300 - No computer training for administrative staff. 20 Suppression Library Materials $ 200 _ May not be able to purchase all necessary updated training materials. Eliminate the production of fire safety public service announcement (PSA) for the government cable channel which the department has 21 Fire Prevention Public Education $ 4,500 $ 4,500 been co-producing annually with the City Manager's Offce during Supplies Fire Prevention Month. Also minimize the purchase of public education supplies and limit all fire prevention and life safety community outreach efforts. TOTAL POTENTIAL SAVINGS $ 31,340 $11,800 18 Fire Department Potential Revenue Enhancements Proposed Revenue Potential City Mgr's Comments Enhancement Revenue Recom. The Los Angeles County ambulance rates, as adopted by the City, will be Updated ambulance rates increased by 5.7% as of July 1, 2006. We also expect some growth in this 1 per $ 200,000 $ 20D,000 revenue. According to Wittman Enterprises, the City's paramedic billing L.A. County provider, an estimated $200,000 in additional revenue is anticipated to be generated. Proposing the revision of existing fire service fees, including California Fire 2 Revised existing fire service $ 47 761 $ 47 761 Code permits, State mandated inspections, plan checks, and other fees ' ' miscellaneous inspections and services, to recover increased personnel cost due to the City's labor contractual agreements. Proposing the collection of a $60 fee for every movie detail request as a cost 3 New service fee for Movie $ 3 600 $ - recovery mechanism. The service is currently being provided free of charge. Details , Sixty (60) Movie Detail requests are anticipated annually, so the anticipated revenue for this proposal is $3,600 per year. Proposing the collection of a $90 fee for every Title 19 Sprinkler System New service fee for Title 19 Certifcation issued as a cost recovery mechanism. The service is currently 4 Sprinkler System $ 4,500 $ 4,500 being provided free of charge. Approximately fifty (50) Title 19 Sprinkler Certifications System Certifications are issued annually, so the anticipated revenue for this proposal is $4,500 per year. Proposing the collection of a fee of 24 cents per square Toot for all New New Service fee for New Construction Occupancy Inspection Permits as a cost recovery mechanism. 5 Construction Occupancy $ 60,000 $ - The service is curently being provided free of charge. Approximately Inspection Permits 25D,000 sq. ft. of new constructions are inspected annually, so the anticipated revenue for this proposal is $60,000 per year. ' Proposing the collection of Annual Inspections fees per the following guidelines: - $80 for Business Occupancy (1,600 annually); - $100 for Business Restaurant Occupancy (140 annually); - $80 for Manufacturingllndustrial Storage Occupancy (145 annually); 6 New service fee for various $ 237 600 $ - $60 for Mercantile Occupancy (25D annually); Annual Inspections , - $100 for Commercial Rental Occupancy (80 annually); and - $80 for Apartments (500 annually) Annual inspections are curently being performed free of charge. If approved, this cost recovery proposal would generate approximately $237,600 in annual revenue for the City. TDTAL $ 553,461 $ 252,261 19 THIS PAGE INTENTIONALLY LEFT BLANK zo Public Works Services Potential Cost Reductions Proposed Reduction Potential Clty Mgr's Impact Savings Recom. $3,000 should be charged to Sewer Fund; $500 fire disposal casts can be funded through Solid 1 Eliminate $3,000 disposal charges for $ 3 500 $ 3 500 Waste fund. Therefore, if this is eliminated, industrial waste water debris from clarifier , , Sewer and Solid Waste funds' budgets must be increased to account for this expense. Eliminate $22,500 for freeway ramps Ask Caltrans to take over the maintenance of 2 maintenance $ 22,500 - freeway ramps. Staff will take over the routine signal maintenance service i.e., monthly inspection of signals to ensure 3 Reduce signal maintenance contract by $ 50 000 $ 50 000 that the lights, controllers and the pedestrian $50,000 , , buttons are functioning properly, and to ensure that there are no damage to the signals. Will re- bid contract on 7!1!08. Reductions: 1) Removal and replacement of turf at Service Center ($1,954/yr); 2) For citywide parks, cut grass every other week ($5,855/yr). Impact will be overgrowth of weeds, non edging of 4 Reduce landsca a maintenance at the Service p $ 39 409 _ curbs, and uneven grass surfaces that may cause Center and various parks , tripping hazards; 3) Eliminate a landscape worker at Wilderness Park that could result to a considerably less landscape maintenance in the park ($9,600/yr). Tree trimming cycle will be changed from four to five years. As a result, the quantity of trees cut 5 Reduce tree trimming service $ 57,000 _ annually will also be reduced from 4,615 frees to 3,692 (25% reduction) including the 385 fcus trees we currently have. TOTAL POTENTIAL SAVINGS $172,409 $53,500 21 Public Works Services Potential Revenue Enhancements Proposed Revenue Enhancement Potential City Mgr's Comments Revenue Recom. Water Fund: Potentially leasing all city-owned water facilities to Water Fund at $0.50 cents per square Almost 90% of the water facilities' locations ~ foot. To avoid immediate water rate increase, the $ 711,389 $ 355,000 have been confirmed to be City-owned. Staff is City Manager recommends startingt he lease rate at still verifying the remaining properties. $0.25 per square foot and phase in to full market rate in 5 years. Solid Waste Fund: Each of our four (4) commercial haulers may be charged an additional mitigation flat 2 fee of $10,000 annually. This fee is for refuse $40,000 - collection operations that are damaging our streets and alleys. TOTAL REVENUE ENHANCEMENTS $ 751,389 $ 355,000 22 Development Services Potential Cost Reductions Proposed Reduction Potential City Mgr's Impact Savings Recom. In DSD, interns are valuable staff members. They heighten customer service, help provide a steady presence at the public counters, and 1 Eliminate Two Interns in DSD $24,135 - are able to work on short-notice priority projects. This would be a substantial hit on our ability to work on special projects and would be a negative impact on customer service and wait times. Reduce budgeted amount for This would reduce by half the budget for scanning of building permits 2 scanning/storage of building $12,500 _ to provide a "paperless" system. This money has been earmarked for permits scanning and storage so the impact would be that less archived data is scanned in this fscal year. This is not a significant impact. Allocate 10% of Associate Planners already assist Redevelopment with no compensation from 3 Planner salary and benefits to $9,100 _ the Redevelopment Fund. This would simply pay for this planning Redevelopment Fund assistance within the redevelopment area. There would be a fscal impact to the Redevelopment Fund but it is not deemed significant. The speed survey is curently budgeted at $18,000. The proposal is to 4 Cut to Proposed Speed Survey 000 $5 $5 000 cut $5,000 from this amount and any additional work not covered by Amount , , contract would be done in-house. The scope of the speed surveys may be limited by this cut but it is not considered signifcant. Traffc Engineering is budgeted at $55,000. Proposal is to cut $5,000 from this amount. This would potentially limit the scope of work that 5 Cut to Traffic Engineering 000 $5 $5 000 could be done on special projects or traffc studies/analyses. It is Contract Amount , , possible that certain projects may need to be limited in scope or may need to wait until a different fiscal year but this is not anticipated to be significant. This $6,000 is earmarked for upgrades to the AutoCAD and other Remove Budget for AutoCAD software used by Engineering. This is currently in the ASD budget but 6 software for Engineering $6,000 - is earmarked for DSD, This could be removed from this fiscal year Division budget and improvements could be made next fiscal year. Impacts would not be signifcant. TOTAL POTENTIAL $61 735 $10 000 REDUCTIONS , , 23 Development Services Potential Revenue Enhancements Proposed Revenue Enhancement Potentlal Revenue Clty Mgr's Recom. Comments Currently, we have only a $25 processing fee for planning review of a new business license application. There is no charge for business license staff processing. Many cities have a processing fee for both renewals and original licenses. This proposed $10 fee would apply to both. In the last year, there were 3,771 renewals and 981 new licenses Establish a $10 processing fee for for a total of 4,752 transactions. We estimated the amount of potential 1 original Business License review $40,000 $40,000 revenue based on a projection of 4,000 transactions in FY OB-09. The and renewals. impact to the applicant is that for a new license an owner would pay $70.90 for the license and $35 for processing for a total of $105.90 (currently $95.90). In the case of an annual renewal, the applicant would pay $70.90 and a $10 processing fee for a total of $80.90. We surveyed fve other cities and this proposal is within the range of these cities' charges. Currently, we charge a sliding scale fee for single family design review: $245 for under 500 square feet, $357 for 501-1000 square feat and $500 for over 1001 square feat. We charge $510 for Multi-family projects and $1225 for Commercialllndustdal projects. These fees are supposed to be deposits to be charged against, but experience has shown that time spent on these cases easily exceeds these initial deposits. In most cases additional fee deposits are not collected. Increase Design Review Fee for Arcadia single family homes are very large, and often there are 3 to 4 2 both Single Family and Multi- $26,000 $26,000 iterations of the plans for design review. ARer approximately 2 112 Family Residential projects years of work with these projects, it is clear that our fees are not reflective of the amount of staff time spent on these projects. The same is bue of multi-family projects, although they are much less common and the tee has been in place since 2003. Given the amount of time spent on design review, we propose increasing the single- family design review deposits to $750 (a 50% increase) and increasing multi-family design review deposits to $1225, the same as Commercial ro'ecls. We have an extremely low grading permit fee, collecting $42.20 for a typical permit and $50.25 for plan review of a typical project. In addition, we do not charge grading fees for single-family homes which in Arcadia is significant given the average size of the homes we see and the amount of earthwork and new permeable surfaces proposed in most cases. Recently, environmental laws related to water quality Increase Grading Review Fees for and drainage have made it imperative for the City to review grading Plan Check and Permit Issuance plans for nearly all projects. We complete a review of grading and 3 and Begin Charging Grading Fees $23,000 $23,000 drainage but, in most cases do not charge for it. We estimate that staff for Single-Family projects spends an average of 5 hours per plan on grading plan review and an average of 2 hours collectively on the inspections associated with the grading permit. This equates to a new base charge of $250 for grading plan review and $100 for grading permit fees based on a $50lhour charge per staff person. The revenue estimate is based on a conservative projection of 60 new projects in the coming fiscal year that would NOT have been charged under the current system ($350 per project minimum). Currently, we charge nothing for environmental review of projects other than an EIR. Other cities charge as much as $6,500 for an Initial Environmental Study. The majority of cities we surveyed charge between $500 - $1,400 for this work. Since most of these reviews take 4 Add Fee for Environmental Initial $g 500 $6 500 approximately 10 hours, we are proposing to add a fee of $500 for Study (CEQA review) , , projects that require a CEQA Initial Study review. This is similar to our Modification application fee and we estimate the work load is similar. We estimate 151nitial Studies a year. Also, we would now require a fee of $50 for projects subject to a Categorical Exemption (1 hour of staff time . We estimate 20 Cate oriral Exem lions er ear. 24 Development Services Potential Revenue Enhancements Proposed Revenue Enhancement Potential Revenue City Mgr's Reeom. Comments Currently, our Public Works Department and the Engineedng Division conduct plan check services for projects that include off-site work or public improvements. This includes street trees, street work, parkway improvements, utility connections, etc. As of now, there is no fee collected for this work by any department. The fee is in the fee Public Improvement Plan Check schedule as at "at cost" item, but we are not charging for it. 5 Fee $3,000 $3,000 Engineering staff has estimated that projects that are estimated to take more than three (3) hours of work should be charged a fee at $50 an hour for staff time. Of the 40 projects submitted this year, 20 are estimated to have taken at least three hours of staff time. As such, DSD recommends a $150 fee (3 hours at $50/hour) for such projects. Using an estimate of 20 projects would be reviewed per year; DSD estimates an additional $3,000 in revenue. TOTAL POTENTIAL REVENUE ENHANCEMENTS $100500 $1D0500 25 THIS PAGE INTENTIONALLY LEFT BLANK zs Recreation and Community Services Potential Cost Reductions Proposed Reduction Potential Savings City Mgr's Recom. Impact 1 Cancel 4th of July event $25,000 $25,000 No special event for the 4th of July holiday. 2 Shared funding of school counselor with AUSD $16,200 $16,200 Agreement has been made with the distict that we are not going to fund our share of this position. 3 Cancel 3 on 3 basketball tournament $2,750 $2,750 Event has 36 teen/adult participants. TOTAL cost reductions $43,950 $43,950 27 Recreation and Community Services Potential Revenue Enhancements Proposed Revenue Enhancement Potential Clty Mgr's Comments Revenue Recom. 1 Add $2 administration fee to all class registration. $10,984 $10,984 Our senior programs already have this fee. The program has only had a $4 increase in the last 8 years. Since we have already completed 2 Increase cost of swim classes by $10 per class. $19,820 $19,820 the registration for summer of 2008. The new rates will apply to the swimming classes in 2009, and it will be recognized as FY09-10 revenue. Cost would increase from $100 to $110 per 3 Increase cost of day camp/sports camp by $10 per week. Since we have already completed the . week. $10,800 $10,800 registration far summer of 2008. The new rates will apply to the summer camps in 2009, and it will be recognized as FY09-10 revenue. 4 Add $5 fee to Halloween event, snow festival, bike $g 000 _ These programs are currently offered for free. A ride, and summer carnival. nominal fee would help offset casts. TOTAL REVENUE ENHANCEMENTS $50,604 $10,984 28 Library & Museum Services Potential Cost Reductions Proposed Reduction Potential Clty Mgr's Impact Savings Recom. 1 Reduce Library materials budget $26 000 $26 000 Fewer new books, no duplicate copies for books on school lists; by 10% , , fewer online databases. 2 Reduce print shop budget by 13 /° $2 000 $2,000 Fewer notices for the public regarding our programs and services. Prioritize items to be processed; some items will deteriorate 3 Reduce supply budget by 10% $4,700 $4,700 quickly; fewer public relations items; notice frequencies will be reduced. 4. Reduce budget for substitute librarians by 25% $1,250 - Public desks may be closed when there is a shortage of staff. Reduce costs Unique Management (collection agency) $5,800; 5 Contract services $10,800 $5,800 Security Patrol Mgmt (security guard) $4,000; SirsiDynix (Library software) $1.200 6 Official meetings $1,500 - Eliminate one conference attendance. 7 Training $1,000 - Less well-trained staff and Board. 8 Programs $3,500 - Reduced program supplies for Library & Museum programs. 9 Delete Museum street banners $3,000 - No new street banners; newest banners may last longer. TOTAL POTENTIAL SAVINGS $53,750 $38,500 29 Library & Museum Services Potential Revenue Enhancements Proposed Revenue Enhancement Potential Clty Mgr's Comments Revenue Recom. 1 Increase maximum capon overdue material. $15,000 $15,000 Currently the cap for foes is $5, increase to $10. 2 Increase referral fee to collection agency $2,000 $2,000 Currently $10, proposed to increase to $15. Increase from $70 to $80 per hour; cleaning fee 3 Increase hourly rental fee for auditorium $1,000 $1,000 from $40 to $50 per use when food is involved. Revenue dependent on activity levels. 5 Increase fee for Interlibrary loan $300 $300 Increase from $2 to $3 per request. 6 Impose $1 fee for guest pass to use Internet computers $25,000 $25,000 Computers remain tree to those with Library cards. Requires moving staff off regular duties which will 7 Introduce Passport Services $15,000 - impact service delivery. ($25 per application as set by the U.S. State Dept.) 8 Create rental fee for use of auditorium piano $2,500 $2,500 $50 per use. TOTAL REVENUE ENHANCEMENTS $60,800 $45,800 30 General City Contract Services over 55.000 Contractor Description of Services Cost 1 The Ferguson Group Federal legislative Advocacy $ 25,000.00 2 Gonsalves & Son State legislative advocacy $ 28,800.00 3 Communications Support Group Cable Television consultant services regarding franchise administration $ 20,000.00 4 Studio Spectrum, Inc. Filming and broadcast of City Council meetings, including production, labor, supplies and maintenance of equipment g 27,000.00 b Animal Pesl Management Coyote Management Co ote Mana ement y g $ 30,000.00 TOTAL CONTRACTED SERVICES $ 130,800.00 31 City Clerk Contract Services over $5,000 Contractor DescrfpUon of Services Cost 1 Lexis/Nexis Municipal Code Updates $6,000 2 Various Document Imaging and Scanning $9,000 3 Data Net Weblink (electronic access to public rewrds by staff and the public via City website $7.000 TOTAL CONTRACTED SERVICES $22,000 32 City Attorney Contract Services over 55.000 Contractor Description of Services Cost 1 Best Best 8 Krieger City Attorney basic contract services -blended monthly rate of $12,496 $~ gg,g50 2 Best Best 8 Krieger & Outside Special Counsel City Attorney and outside Special Counsel for special legal services (this is separate from basic services) $P95,000 TOTAL CONTRACTED SERVICES $444,950 33 Administrative Services Contract Services over $5.000 Contractor Description of Services Cost Revenue & Cost This contract would provide for an update to the City's cost allo- t Specialists, LLC nation plan. The plan is used as part of the budget process to $ 5,000.00 spread overhead costs among benefiting funds. The City contracts for the use of the County's computer system to 2 County of Los Angeles track vehicle registration information. This information is used in $ 10,000.00 conjunction with the enforcement of parking citations. Union Bank provides safekeeping services for the City's invest- 3 Union Bank ments by having its trust department take physical possession of all $ 6,000.00 purchased securities. Bank of the West provides the City with various depository serv-ices 4 Bank of the West including checking and payroll accounts. It also provides an $ 10,000.00 armored car to pickup cash deposits at City Hall. 5 Nova Nova processes all credit card payments made to the City. $ 36,000.00 MBIA manages about $50 million of the City's investment portfolio. 6 MBIA The firm also assists the City with the development of its invest- $ 41,000.00 ment olicies and rovides related advice as needed. Knight Communications staffs the Information Systems Division, 7 Knight Communications which oversees the City's computer equipment, software, and per- $335,943.00 i herals and rovides technical su ort to de artments. 6 Cititech Cititech provides upgrades, support, and maintenance for the Public $ 10 52 Works Department's work order tracking system. , 5.00 9 Pentamation Pentamation provides upgrades, support, and maintenance for the ' $ 35 000 00 City s various types of fnancial software. , . Pentamation provides a backup site for the City's fnancial soft- 10 Pentamation ware, allowing the system's continued operation in the event of a $ 14,500.00 natural disaster or other emergency situation. 11 Symantec Symantec licenses anti-viral software to the City to protect its g 5 500 00 computer hardware and software. , . 12 Symantec Symantec provides software maintenance and support for an $ 6 000 00 application designed to backup the City's computer system. , . 13 Smartnet Smartnet provides maintenance for the City's computer network $ 7 500 00 hardware. , . 14 Surfcontrol Surfcontrol provides and maintains a software program that limits $ 5 500 00 employee access to inappropriate intemet sites. , . 15 Datanow Datanow provides support and maintenance for the City's water $ 7 000 00 billing system software. , . The proposed budget includes funds to lease fiber optic lines from 16 Time Warner Time Warner to increase the speed of computer access to and from $ 72,000.00 the Internet. DLT Solutions provides maintenance for the City's AutoCAD com- 17 DLT Solutions puler software, which is used by both the Public Works Depart-ment $ 10,400.00 and the Development Services Engineering Division. The proposed budget includes funding for miscellaneous contract 18 Various services that may be required during the year to repair and main- $ 10,000.00 f ain the City's computer hardware and software. 34 Administrative Services Contract Services over $5,000 Contractor Description of Services Cost Johnson & Associates is one of several vendors that assists the 19 Johnson 8 Associates City by conducting personnel related classifcation and compen- $ 10,000.00 sation audits as needed. 20 Express Personnel Express Personnel provides the City with temporary clerical and $ 5 000 00 other replacement employees as needed. , . TOTAL CONTRACTED SERVICES $642,868.00 35 Police Department Contract Services over $5,000 CONTRACTOR Description of Services Cost 1 Grace Building Maintenance Co. Contract Custodians two custodians for the De artment ( P ) $ 69,000.00 2 CLS Landscaping $ 17,000.00 3 Range Maintenance Services, LLC Firing Range Maintenance (replace rubber material for backstop) $ 5,500.00 4 Grace Building Major Janitorial Building Maintenance (caryeVfloor cleaning, locker Maintenance Co. rooms, and windows) $ 13,500.00 5 Cal Protection Fire Suppression Inspection (fire alarm maintenance and $ 5 000.00 inspections) , 6 Sheldon Mechanical air conditioning/heating maintenance $ 12,700.00 7 Range Maintenance Services, LLC Firing Range Lead Removal (annual removal of lead from backstop) $ 12,000.00 Communication Installation (repair and installation of mobile digital 8 Woodcrest and North Star computers (MDC's), two-way radios, and emergency lighting $ 10,000.00 equipment) 9 Inter-Con Security parking enforcement services $ 219,838.00 10 Los Angeles County Sheriffs Department ail bodkin char es ~ g 9 $ 6,000.00 11 All City Management Crossing Guard Services for the local schools $ 145,334.00 12 Quick Clean Uniform cleaning for police personnel $ 15,000.00 13 Datanet document archival and retrieval system support $ 15,000.00 EIS (public safety software system support; includes Law Records 14 Executive Information Management, Computer Assisted Dispatch (CAD), Report Writing, Services (EIS) Mobile Digital Communications, and the Los Angeles County $ 25,000.00 interface 15 Amrel Mobile Digital Computer (MDC) maintenance $ 9,000.00 16 Knight Communications computer, server, and network support $ 66,900.00 17 Shred-It North Los Angeles dis osal of confidential re orts and documents P P $ 5,000.00 18 Confidential Investigative Services Back round investi ations for new em to ees 9 9 P Y $ 27,000.00 19 DF Polygraph Polygraph fees for new employees $ 9,000.00 20 Stencil and various other Stencil and Computer Assisted Dispatch (CAD) Maintenance (9-1-1 vendors system support) $ 5,000.00 TOTAL CONTRACTED SERVICES $ 712,772.00 36 Fire Department Contract Services over $5,000 Contractor Description of Services Cost Annual maintenance of the photocopier. Contract fee is dependent 1 Image IV Copier upon the number of copies made. All copier supplies, such as $ 6,000 toners, are also charged to this account. Fire communications dispatching service. Contract fee is 2 Verdugo dependent upon call volume, and it also reflects a 10% $ 231,310 administrative fee. Landscape management at all fire facilities. All miscellaneous 3 CLS landscaping expenses, such as sprinkler repair and plant $ 17 000 replacement, are also charged to this account. Contract is , maintained by the Public Works Services Department. Paramedics and emergency medical technicians continuing 4 UCLA education and paramedic services quality improvement. This $ 24,110 Council-approved contract allows fora 5% increase annually. TOTAL CONTRACTED SERVICES $ 278,42 37 Public Works Services Contract Services over $5,000 Contractor Description of Services Cost 1 CLS Landscape Inc. Landscape maintenance contracts $ 26,000 2 Sheldon Mechanical HVAC service $ 7,500 3 Grace Building Custodial service at City Hall $ 71,gp0 4 John L. Hunter & Assoc. NPDES Program $ 45,700 5 County of Los Angeles Pollution Prevention Media Campaign $ 6,000 6 County of Los Angeles Catch basin cleaning mandated by NPDES Permitting $ 6,500 TOTAL CONTRACTED SERVICES $ 163,100 38 Development Services Contract Services over $5,000 Contractor Description of Services Cost 1 HDL Digitizing Services for Building Permit scanning and storage to enable customer interface for web based permit retrieval. $p5,000 2 Hogle-Ireland General Plan Update (2 year project currently under contract) $300,000 3 HDL Building Department Permit Tracking MaintenancelSoftware $8,500 4 Various Traffic Engineering Services (e.g. trafFlc studies, technical review and reports) $55,000 5 Various Engineering and street studies, surveys, and reviews (e.g. signal work, street work, Transportation Advisory Committee projects, school coordination Council member ro'ects etc. $11,000 6 Various Speed Survey (review of posted speeds and potential changes to speed limits) gtg,000 TOTAL CONTRACTED SERVICES $417,500 39 Recreation and Community Services Contract Services over $5.000 Contractor Description of Services Cost 1 Sheldon Mechancial Heating 8 Air Conditioning Service for the Community Center $14,696 2 Grace Building Maintenance Custodial Cleaning for the Community Center $71,492 3 Youth Master Plan/AUSD Portion of cost for library service at high school $23,000 TOTAL CONTRACTED SERVICES $109,188.00 ao Library and Museum Services Contract Services over 55.000 Contractor Description of Services Cost 1 Sheldon Mechanical HVAC service and repair $ 8,900.00 On-site day porter (M-F) for room setups and emergency 2 Janitorial cleanings throughout the day; Nightly cleaning crew (six days/wk) for $ 81,380.00 general cleaning. 3 Unique Mgt. Service Collection service to recover long overdue material and late fines $ 11 600 00 over$25. , . 4 Security Patrol Mgt. Security guard service for after school and evenings to control $ 24 000 00 the noise and other disruptions. , . 5 SirsiDynix Software Maint. Library software maintenance and upgrades. $ 25,000.00 6 SirsiDynix iBistro Special features for Library Catalog, including book covers, table $ 8 200 00 of contents and book reviews. , . ~ 3M Express Maintenance for three express (patron self-check) machines, Check/Secudty Maintenance for material security equipment. $ 15,100.00 8 CLS Landscape Maint. Landscape service for perimeter of the Library $ 13,000.00 9 Janitorial Daily janitorial service. $ 6,500.00 10 CLS Landscape Maint. Landscape service for perimeter of the museum $ 6,000.00 TOTAL CONTRACTED SERVICES $ 199,680.00 a7