Fiscal Year 2011
Proposed Operating Budget
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CITY OF PALO ALTO
Fiscal Year 2011 Proposed Operating Budget
CITY COUNCIL Patrick Burt, Mayor Sid Espinosa,Vice Mayor Karen Holman Larry Klein Gail Price Greg Scharff Greg Schmid Nancy Shepherd Yiaway Yeh
James Keene City Manager Pamela Antil Assistant City Manager Lalo Perez Director of Administrative Services David Ramberg Assistant Director of Administrative Services Joe Saccio Deputy Director of Administrative Services Greg Schmid Finance Committee Chair
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The government of the City of Palo Alto exists to promote and sustain a superior quality of life in Palo Alto. In partnership with the community, our goal is to deliver cost-effective services in a personal, responsive, and innovative manner.
The City of Palo Alto’s Values Quality - Superior delivery of service. Courtesy - Providing service with respect and concern. Efficiency - Productive, effective use of resources. Integrity - Straight-forward, honest and fair relations. Innovation - Excellence in creative thought and implementation.
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CITY OF PALO ALTO FY 2011 Budget Acknowledgements BUDGET ACKNOWLEDGEMENTS Department Budget Coordinators
Budget Document Producers
Administrative Services Department
Budget Staff
Libby Dame
Marc Puckett, Manager Amy Javelosa-Rio Cherie McFadden Mimi Nguyen Christine Paras Dale Wong
City Attorney's Office Stacy Lavelle
City Auditor's Office Patricia Hilaire
City Clerk's Office
Technical Advisors
Beth Minor
Myrna McCaleb Shawn Bailey
City Manager's Office Kelly Morariu
Special Contributors
Community Services Department
Nancy Nagel, Tarun Narayan
Lam Do
Graphic Design, Cover, & Photos
Fire Department
Cherie McFadden
Melinda Cook
Human Resources Department
Printing & Mailing
Elizabeth Egli
Ty Campbell, Rui Pereira, John Sanchez Roger Silva, Michael Hill
Library Department Susan Bodenlos
Planning & Community Environment Department Mary Figone
Police Department Pete Hazarian
Public Works Department Sharon Macway
Utilities Department
The City Hall Print Shop is a California Certified Green Business Uses only non-toxic soy-based inks Uses post-consumer recycled paper Recycles all unused paper
Dave Yuan
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Budget Awards Budget Aw ard s
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Operating Budget FY 2011
Budget Awards
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Operating Budget FY 2011
MESSAGE
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Operating Budget FY 2011
Transmittal Letter
Transmittal Letter May 3, 2010
Honorable City Council Palo Alto, California Attention: Finance Committee
C I T Y
O F
P A L O
A L T O
Introduction
Operating Budget FY 2011
Dear Mayor and Council Members:
The City of Palo Alto, together with other local jurisdictions, the state of California, and the federal government continues to struggle to recover from the "Great Recession." As we prepared the "Preview Budget" in late March, we projected an $8.3 million gap in Fiscal Year 2011. This follows the $10 million Budget gap the Council balanced for FY 2010. We must take action to address this deficit. Necessary and difficult decisions are incorporated in the FY 2011 proposed budget that will affect employees, residents, and businesses. Our City Council will need to choose among competing recommendations of program reductions, cost shifts, or job losses through layoffs that all affect some valuable interest or constituency in our city. There are more recommendations than are needed to close our funding gap suggested in this proposed budget, to provide Council with a range of options and some flexibility as you listen to the public and work through the budget process over the next two months. Palo Alto is not alone in this most challenging of fiscal situations and despite the scale of cuts the city must make, we are better off than many other communities. Jurisdictions across California have been steadily revising their revenue projections downward and also adjusting their current and future budgets. And despite the agreement of most economists that the recession "ended" sometime in the summer of 2009 and some hopeful signs are on the horizon, local government fortunes will not change anytime soon. Local government revenues always lag the business cycle; our revenue structure is disconnected in many ways from the modern evolving economy-for example, sales taxes aren't leveled on services, B to B (business) sales taxes have declined in an increasingly globalized supply chain, and increasing internet sales hurt local government revenues despite use tax legislation; and, finally, governments are carrying rising legacy costs
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Transmittal Letter from commitments made in better times, especially in the area of public employee benefits. The FY 2011 Proposed Budget represents a balanced spending plan totaling $442 million in appropriations across all funds. The Proposed General Fund "balanced" Budget amounts to $137.1 million in appropriations. Since the beginning of the recession, revenue projections have been repeatedly reduced. Sales, transient occupancy, and documentary transfer taxes have been particularly susceptible to the downturn. Since FY 2008, compared to the Adjusted Budget for FY 2010, these revenues have fallen by $5.3 million, $1.4 million, and $2.1 million, respectively. These losses represent an $8.8 million drop equating to a 5% revenue loss from these sources since FY 2008. To put it in perspective, in FY 2010 sales tax revenues were projected to be $17.2 million, reflecting the same level of revenue as collected in FY 1997. In addition, the City has suffered steep falloffs in permit, planning, parking fine and other fee revenues totaling $1.7 million during FY 2010. Most economists foresee a slow and gradual improvement in the economy. There are preliminary indications of having reached a "bottom" in the key revenue sources cited above. For example, in the past few months, documentary transfer tax transactions have increased modestly. Likewise, after nearly 2 years of substantial quarterly declines, fourth quarter 2009 sales tax revenues showed a slight 1.2 percent increase over fourth quarter 2008. While these are hopeful signs, they must be balanced against flat property taxes over the next two years and what is expected to be a protracted recovery amidst high unemployment, restrained business spending, and a wary consumer. It is likely to take multiple years for the City's revenue sources to fully recover from the effects of the recession. At the same time, there are almost automatic increases on the expense side, in pension and health care costs. And the significant and rising gap in City infrastructure investment needs and available funding will put growing stress on our budgets and quality of life in Palo Alto in coming years. The FY 2011 Proposed Budget does assume that the economic decline has reached bottom and will only slightly rebound. The consensus economic opinion is that the economy will pick up slightly during the first half of FY 2011 and begin to grow more substantively during the second half of the year.
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Transmittal Letter Balancing the General Fund Budget: Gap lowered to $7.3 Million
First, a little bit of good news. As staff refined our budget projections in the detailed development of the FY 2011 Budget, our funding gap was reduced by $1 million due to savings through our cost allocation model and revenue adjustments upward. As a result of the severity of the downturn and Council's direction to focus budget reduction strategies on permanent, on-going solutions sufficient to fully resolve the budget gap, staff has proposed $8.5 million in budget reductions and an additional $0.9 million in new revenue and revenue increases. Those specific recommendations total $9.4 million. Given the $7.3 million gap, the Proposed Budget shows a temporary "surplus" of $2.1 million. In addition, $0.9 million in budget balancing alternatives have been developed for consideration. These alternatives are budget balancing strategies that are not currently included in the proposed budget details but have been identified as possible alternative budget reductions to those on the $9.4 million list. The cumulative number at this point totals $10.3 million. Further, an additional $1 million in potential budget savings may be possible following subsequent analysis or policy direction. Many of these options may not be achievable by the time of budget adoption but are worthy of consideration, given our ongoing challenges and funding needs. Some of those options could include: • Regionalize services • Consolidate services • Use/Rent former Los Altos Treatment Plant site • Electronic reader board (sell ad space) • Install red light cameras • Implement full cost recovery for more programs • Transition services to non-profits via public/private partnerships • Increase rent rates for city facilities to be closer to market rates • Consider assessment district for some services • Enhance economic development/grow our tax base • Continue review of fleet utilization All told, a total of $11.3 million in budget balancing strategies and potential alternative solutions provides a foundation for Council consideration to address the $7.3 million budget gap. Of course, some of the recommendations
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Transmittal Letter are more "ready" for implementation than others. Still, staff has been responsive to Council's request for a range of options for consideration. Undoubtedly, other ideas and suggestions will also arise during the public meetings and Council deliberations. Criteria for Proposed Budget Balancing Recommendations
The staff recommendations are almost entirely composed of ongoing structural budget changes. A combination of across the board reductions, targeted cuts and fee increases were proposed to close the gap. In identifying those recommendations from city departments, three primary criteria were used : • Areas where costs could be reduced and the level of service would stay the same • Areas where costs could be reduced and the service would be performed at a reduced level • Areas where the cost of providing the service could be shifted to residents or participants A listing of the major service impacts can be found in Attachment A to this letter. Additional detailed information on all of the proposed reductions is available in the budget document in the individual department sections. Staff has made every effort to preserve the level and quality of service delivery to the public as an overriding consideration in developing the proposed budget. Further, where possible, staff has attempted to minimize the impact of the proposed reductions on our workforce. Due to the size of our structural deficit, following on the heels of earlier deficits the City has had to close in the last few years, and the fact that the major expense in the General Fund is personnel, our workforce and employees are directly affected. This budget proposal includes program and service reductions that could eliminate the equivalent of 75 fulltime positions in the City, representing 8.1% of full-time and 11% of temporary and part-time General Fund employees. Because temporary and part-time positions are included, a total of 119 positions are affected, of which 70 are currently filled and 49 are vacant. Because staff has identified a range of options greater than what is needed for closing the budget gap, more layoff notices have been sent to our affected employees than may eventually be necessary. Staff believed it important to communicate this information early to provide as much flexibility in job reassignments as possible to minimize actual layoffs, and to inform the public about the challenging choices Council will be facing. In addition, some positions have been kept vacant over time to consider for elimination or to be
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Transmittal Letter filled by employees whose position has been proposed for elimination. Still, many layoffs will be unavoidable. Structural Deficits and Ongoing Changes
The Council's leadership last year in recognizing the ongoing nature of the fiscal crisis resulted in a balanced budget that restructured employee pay and benefits and created a new two-tier pension plan with reduced benefits and costs for new employees for all of our non-public safety personnel. As difficult as those decisions were, they have buffered our City from even greater cuts in FY 2011. Similar concessions to those given by our Professional and Management and SEIU employees last year will be pursued with the Public Safety groups when their existing contracts are up. For Fire, this occurs at the end of this fiscal year, so a new contract for next year needs to be negotiated. The FY 2011 Budget does not yet include any savings from Fire at this time, as negotiations are just getting under way. It is important to note that the FY 2011 Proposed Budget already presumes no pay increases for the Professional and Management group of employees and SEIU. It does include a 6% pay increase for Police, as they enter the last year of a three-year contract. It also includes salary increases for Fire, as the full year impact of the PERS reversal in their expiring contract takes effect. As a matter of fairness and equity, in addition to generating needed cost savings, the City will need to realize, at a minimum, ongoing pay and benefit concessions from our public safety groups equivalent to contributions provided by SEIU and our Professional and Management group.
Reporting on Council Priorities
A comprehensive economic development strategy for the City is also being developed as part of our efforts to maintain and enhance the City's revenue base, with management reorganizations designed to emphasize the importance of investment, attraction, and retention of business, with our special focus on innovation and green technology and improvements in the development center processes. Land Use and Transportation Planning. Several high profile matters will consume the Council's attention in FY 2011, including expansion of the Stanford Medical Centers and the high speed rail initiative. Greater emphasis on the Comprehensive Plan and thoughtful development are other defining qualities.
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Transmittal Letter Environmental Sustainability efforts are evidenced by the continued development of a comprehensive strategy for the City's sustainability efforts, continued implementation of the Climate Action Plan, and staff 's work to implement the Council's directive to reduce potable water usage 20% by 2012. Continued investment in the Zero Waste Plan and in particular composting will occupy much of our agenda. Emergency Preparedness functions throughout the City will be reorganized in order to enhance communications and create efficiencies of operation and deepening community connections. In addition, the City provides primary support to the Citizen Corps Council and will lead the initiation of the Midpeninsula Foothills Emergency Forum. The City also is coordinating the implementation of recommendations stemming from the Wildland Fire Management Plan. The City is helping lead the Community Collaboration for Youth Well-Being initiative and is continuing to provide key staff support for Project Safety Net efforts. This involves facilitation of the community task force and response to ongoing media coverage. City staff is supporting the implementation of a community developmental assets model to address issues related to youth wellbeing. Enterprise Funds and Service Rate Changes
Turning to the City's Enterprise Funds, although the Storm Drainage rate is moving higher, rates for Gas, Electric, Water, Wastewater and Refuse are remaining unchanged. No rate changes are proposed for Fiscal Year 2011 except for in the Storm Drainage Fund. This is revised from the rate increases that were planned for FY 2011 in last year's two-year budget, which included increases of 15% in Electric, 15% in Gas, 7% in Water, and 5% in Wastewater rates. Storm Drainage rate increases are adjusted annually based on a consumer price index (CPI) change approved by property owners in the last fee election. The CPI showed 2.6% growth so the proposed rate change for FY 2011 is 2.6%. The Storm Drainage rate change will increase the overall average monthly residential utility bill by 0.1 percent or $0.28 per month from $10.95 to $11.23 and cost the average property owner an additional $3.36 per year. Palo Alto Utilities continue to provide value and reliable service for our residents and businesses. Of note, is the Utilities' continuous effort to upgrade
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Transmittal Letter their infrastructure such as the replacement of gas and water mains, and refurbishing electric substations.
Conclusion: Looking Forward and Final Thoughts
As directed by Council, staff will be scheduling a continuing series of community outreach meetings and information sharing efforts continuing through May to engage the public and Council in the budget process. A core group of 60-70 city employees from across our organization are working on design teams to explore other budget ideas and organizational changes to enhance revenues and reduce expenses. This budget has been designed to keep the Council's options open and to provide Council with choices and alternatives as much as possible as Council reviews and approves the final FY 2011 Budget. It is, however, fundamentally a budget of reduction and loss. I am hopeful that our outreach efforts bear fruit. That the community and our employees understand what is at stake and are ultimately appreciative and respectful of our Council for shouldering such responsibility on their behalf. In our post-modern world, governing lies beyond the realm of problem solving. Our elected representatives increasingly inhabit the world of dilemmas, which are problems that offer two or more solutions or outcomes, none of which are acceptable. Our FY 2011 Budget is not entirely populated with dilemmas but there are plenty of them. And even if city services and our community is ultimately better in the long run or more sustainable for the difficult choices that must be made today-necessity being the mother of invention-right now it's hard times in city budgets in California. Real people and real programs are affected by such hard choices.
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Transmittal Letter Acknowledgments
Appreciation is expressed to the entire City staff team involved in preparing the Fiscal Year 2011 Proposed Budget. Lalo Perez, Director of Administrative Services; David Ramberg, Assistant Director of Administrative Services; and Joe Saccio, Deputy Director of Administrative Services, have coordinated a wonderful team through an especially challenging task. Special acknowledgement goes to the Budget Team and their countless hours of analysis and creative thought. They include Marc Puckett, Budget Manager, and his staff: Amy Javelosa-Rio, Dale Wong, Christine Paras, Mimi Nguyen, Budget Analysts and Cherie McFadden, Graphic Designer. Staff throughout the city, in particular Department Budget Coordinators (see acknowledgment page for names) are recognized for their hard work in developing the FY 2011 Proposed Budget. Special thanks are also extended to the Department Directors comprising the Executive Leadership Team (ELT) of the city, who have worked closely as a team to identify cost savings and budget reduction strategies. Respectfully Submitted,
James Keene City Manager
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Transmittal Letter City of Palo Alto Proposed Budget Balancing Recommendations for Fiscal Year 2011 General Fund ESTIMATED NET SAVINGS
PROPOSED STRATEGY Elimination of contract funding for the annual Sidewalk Replacement Program with shift of responsibility for sidewalk repair to residents
($500,000)
Contracting out of some tree trimming/line clearing and elimination of four full-time positions
(386,000)
The elimination of the Traffic Team will cut five full-time Police Officer positions
(894,000)
Elimination of one Community Services Officer position serving the centralized community outreach program, including Neighborhood Watch, Citizen and Student Academies, Community Newsletter, Community Events and Fairs, Community Education Programs, Coordination of the Officer Request for Services Programs, coordinating public education efforts in Emergency Preparedness with Block Coordinators, Neighborhood Watch Captains and PANDA
(101,000)
Funding for school crossing guards eliminated
(345,000)
Reduction of HSRAP funding
(50,000)
Library hours shortened and the closure of the Library on Mondays at Main, Mitchell and the Children's Library will eliminate two full-time and one part-time position
(215,000)
The re-opening of the College Terrace Library delayed an additional eight months to June 30, 2011 Book collection funds for the Libraries reduced
(74,000) (117,000)
Partial cost recovery increases are proposed through increased participation and/or admission fees for many programs including Junior Museum and Zoo, Art Center Gallery, Children's Theatre productions, recreation classes, art classes, nature interpretive program, and the science outreach program, Animal Services, HazMat inspection fees and Planning fees. Shuttle services will be reduced to hourly stops at limited locations eliminating the service for the Noon shuttle and Marguerite shuttle and reducing the Cross-town shuttle to one bus
(196,000)
Elimination of the twilight concert and brown-bag summer concert series
(27,000)
In the Fire Department, Advanced Life Support (ALS) and Basic Life Support (BLS) fees are proposed to increase by 10% generating an estimated $200,000 in new revenue.
200,000
Elimination of one full-time Child care position and reduction of one Family Resources Coordinator position to a half-time position in the Community Services Department
(137,000)
The proposed contracting out of Lawn Bowling Maintenance eliminates one full-time position
(45,000)
Day use fees at Foothills, Arastradero and Baylands parks are proposed
(100,000)
The proposed contracting out of park maintenance at Mitchell Park and Rinconada will eliminate four full-time positions
(147,000)
Continued on next page
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Transmittal Letter Proposed Budget Balancing Recommendations, continued
PROPOSED STRATEGY Vehicle replacement funding for the City's fleet/equipment purchases was reduced by $483,000. A review of the size of City's fleet has been undertaken to further reduce future fleet/equipment expenditures. The proposed contracting out of park maintenance at Mitchell Park and Rinconada will eliminate four full-time positions Vehicle replacement funding for the City's fleet/equipment purchases was reduced by $483,000. A review of the size of City's fleet has been undertaken to further reduce future fleet/equipment expenditures. Employee training and education reduced Citywide across all departments Elimination of funding for building maintenance services resulting in the reduction of three fulltime building maintenance positions Contracting out custodial services will eliminate five positions The City will be seeking 50 percent cost sharing from the PAUSD for the School Resource Officer position Elimination of two full-time positions in Police investigative services that investigate cases of financial loss, and fraud Elimination of a Fire Hazmat Position with future plan checking services provided by hourly employees The proposed contracting out of golf course maintenance includes the elimination of seven fulltime maintenance positions The proposed reorganization of the Community Services department eliminates one Division Manager position Elimination of a building inspector, senior planner and staff support eliminates three positions in Planning The reorganization and contracting out of the Print and Mail shop includes the elimination of three full-time positions in the Administrative Services Department Elimination of administrative support organization-wide resulting in the elimination of seven positions Reductions in the City Attorney's outside legal funds Reduction of one full-time position in information technology
ESTIMATED NET SAVINGS ($483,000) (147,000) (483,000) (92,000) (230,000) (282,986) (83,000) (377,000) (37,000) (236,000) (185,000) (382,000) (269,000) (462,000) (145,000) (159,000)
Reduction of one full-time position responsible for customer service and revenue collection
(90,000)
Reduction in Overtime- Citywide
(42,000)
Reduction in Office Machines and Equipment – Citywide
(20,000)
Reduction in Office supplies, Books and Publications - Citywide
(36,000)
Reduction in Advertising and Publishing - Citywide
(27,000)
General Fund Cost Plan and Allocated Charges Reduction General Fund Position Reallocations to Utilities (4.35 FTE’s) Miscellaneous line item reductions
Total Budget Balancing Recommendations
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(1,016,000) (511,000) (216,000)
($8,539,000)
Operating Budget FY 2011
Transmittal Letter City of Palo Alto Citywide Summary of Positions Eliminated Proposed Fiscal Year 2011 Budget * Dept
CSD
Fund
General Fund
Positions for Elimination
FTE
Salary & Benefit Savings
Coordinator Recreation Programs (1 FTE in FY 2010)
(0.50)
($51,335)
Reduction Total
(0.50)
($51,335)
CSD
General Fund
Golf Equipment Mechanic
(1.00)
($99,837)
FIR
General Fund
Administrative Assistant
(1.00)
(116,507)
Other Funds
Administrative Associate III
(1.00)
(103,646)
Retirement Total
(3.00)
($319,990)
PWD
ASD
General Fund
Accounting Specialist
(1.00)
($90,527)
ASD
General Fund & Other Funds
Administrative Associate III
(1.00)
(103,646)
ASD
Other Funds
Technologist
(1.00)
(160,416)
CMO
General Fund
Administrative Associate II
(1.00)
(96,712)
CSD
General Fund
Building Serviceperson
(2.00)
(154,622)
CSD
General Fund
(1.00)
(138,919)
CSD
General Fund
Coordinator Child Care Cubberley Center & Human Services Division Manager
(1.00)
(197,923)
CSD
General Fund
Park Maintenance Person
(2.00)
(184,309)
CSD
General Fund
Sprinkler System Repairer
(1.00)
(93,717)
PCE
General Fund
Administrative Associate I
(1.00)
(88,997)
PCE
General Fund
Building Inspector Specialist
(1.00)
(135,742)
PCE
General Fund
Senior Planner
(1.00)
(158,886)
POL
General Fund
Code Enforcement Officer
(0.50)
(61,068)
POL
General Fund
Police Records Specialist II
(1.00)
(86,360)
POL
General Fund
Program Coordinator
(1.00)
(102,669)
PWD
General Fund
Building Serviceperson
(1.00)
(77,311)
PWD
Other Funds
Project Manager
(1.00)
(142,271)
(18.50)
($2,074,095)
Vacant Total
* Permanent full-time and part-time positions Chart is continued on next page
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Transmittal Letter City of Palo Alto Citywide Summary of Positions Eliminated in Proposed Fiscal Year 2011 Budget* Fund
ASD
Other Funds
Offset Equipment Operator - Lead
(1.00)
($91,894)
ASD
Other Funds
Supervisor Reproduction & Mail
(1.00)
(110,440)
CSD
General Fund
Administrative Associate I
(2.00)
(177,994)
CSD
General Fund
Golf Course Maintenance Person
(4.00)
(368,619)
CSD
General Fund
Park Maintenance Person
(3.00)
(276,464)
CSD
General Fund
Parks/Golf Crew-Lead
(1.00)
(100,260)
CSD
General Fund
Producer Arts/Science Programs
(1.00)
(118,912)
CSD
(1.00)
(98,112)
FIR
General Fund Program Assistant I General Fund & Hazardous Materials Specialist Enterprise Funds
(1.00)
(196,793)
LIB
General Fund
Library Associate
(1.00)
(90,853)
LIB
General Fund
Library Assistant
(0.50)
(39,372)
LIB
General Fund
Senior Librarian
(1.00)
(111,523)
PCE
General Fund
Building/Planning Technician
(1.00)
(104,329)
PCE
General Fund
Code Enforcement Officer
(1.00)
(122,135)
POL
General Fund
Crime Analyst
(1.00)
(116,178)
POL
General Fund
Police Agent
(1.00)
(172,772)
POL
General Fund
Police Officer
(5.00)
(782,391)
POL
General Fund
Police Sergeant
(1.00)
(194,232)
(2.00)
(154,622)
(1.00) (4.00)
(108,821) (390,103)
Filled / Layoff Total
(34.50)
($3,926,819)
General Fund
(50.41)
($5,640,766)
Enterprise Funds
(0.15)
(20,722)
Other Funds
(5.94)
(710,752)
(56.50)
($6,372,239)
PWD PWD PWD
Positions for Elimination
General Fund Building Serviceperson Enterprise Funds Engineer Technician III & Other Funds General Fund
Tree Trimmer/Line Clearer
Total Salary and Benefit Savings
FTE
Salary & Benefit Savings
Dept
* Permanent full-time and part-time positions (an additional 18.52 FTEs in temporary positions are recommended for elimination)
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Table of Contents PAGE iii iv
ITEM DESCRIPTION Budget Acknowledgements Budget Awards
MESSAGE ix
Transmittal Letter
TABLE OF CONTENTS INTRODUCTION 1 3
City of Palo Alto Organization Chart The Budget Process and Document
GENERAL FUND General Fund Overview 15 18 20 23 27 28 31 39 45 51 55 63 73 85 95 103 113 125 137
Operating Budget FY 2011
General Fund Revenues General Fund Expenditures General Fund Service Level Changes General Fund Summary General Fund — Expenditures by Category FY 2011 Projected Operating Fund Balances City Attorney City Auditor City Clerk City Council City Manager Administrative Services Community Services Fire Human Resources Library Planning and Community Environment Police Public Works
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Table of Contents PAGE
ITEM DESCRIPTION
ENTERPRISE FUNDS 149 154 155 157 158 159 163 177 185 195 203 215 223 231
Enterprise Funds Overview FY 2011 Enterprise Fund Summary Enterprise Fund Reserves Enterprise Revenues by Fund Enterprise Expenditures by Category Average Residential Monthly Utility Bill Electric Fund Fiber Optics Fund Gas Fund Wastewater Collection Fund Water Fund Refuse Fund Storm Drainage Fund Wastewater Treatment Fund
OTHER FUNDS Special Revenue Funds 241 243 244 245 247 249
Special Revenue Funds Overview FY 2011 Special Revenue by Fund Consolidated Special Revenue Funds Community Development Block Grant Debt Service Funds Overview Debt Service Funds Summary
Internal Service Funds 253 254 255 257 261 265 269 271 273
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Internal Service Funds Overview FY 2011 Internal Service Funds Internal Service Funds Unrestricted Assets Vehicle Replacement Fund Technology Fund Printing and Mailing Fund General Benefits and Insurance Fund Retiree Health Benefit Fund Average Salary & Benefits
Operating Budget FY 2011
Table of Contents PAGE
ITEM DESCRIPTION
STAFFING 277 282
Summary of Position Changes Table of Organization
MISCELLANEOUS 305 307 310 311 314
Operating Budget FY 2011
Palo Alto: The City Reserve Policies Demographic Statistics Glossary Americans with Disabilities Act
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INTRODUCTION
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City of Palo Alto Organization Chart City of Palo Alto Organization Chart
Palo Alto Residents City Council
CITY ATTORNEY Gary Baum
CITY MANAGER James Keene
Assistant City Manager Pamela Antil
CITY CLERK Donna Grider
CITY AUDITOR Lynda Flores Brouchoud
Deputy City Manager Steve Emslie
Community Services Department Greg Betts, Director
Administrative Services Department Lalo Perez, Director
Fire Department Nick Marinaro, Chief
Human Resources Department Russ Carlsen, Director
Library Department Diane Jennings, Director
Planning & Community Environment Curtis Williams, Director
Police Department Dennis Burns, Chief
Public Works Department Glenn Roberts, Director Utilities Department Valerie Fong, Director
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The Budget Process and Document
T
The Budget Process and Document
he budget is a spending management plan for the City's financial resources. Through the use of these resources, services are provided to meet the needs and desires of Palo Alto's residents and businesses. The budget is also at the heart of the political process, in which resources are allocated based on City Council priorities. The review of the proposed budget is structured around public hearings by the Finance Committee, which further incorporates public opinion into the process. The budget is therefore the vehicle for responding to the community's wishes, as well as an instrument for balancing inflows and outflows (revenues and expenditures) of funds. CITY COUNCIL TOP FIVE PRIORITIES At the start of the City's budget process, the City Council determines its main focus for the following one-year period. Through an open Council dialogue, the priorities guide both budget development and department priority-setting. The public has the opportunity to provide input into this process as well as during the budget review by the Finance Committee. The following are the Top Five City Council priorities for Fiscal Year 2011: • City Finances • Land Use and Transportation
P A L O
A L T O
• Emergency Preparedness • Environmental Sustainability • Community Collaboration for Youth Health and Well Being
OPERATING BUDGET PROCESS BUDGET PREPARATION The City's annual budget process begins in November and concludes in June. The operating and capital budgets are developed by the City Manager, in consultation with senior management and the Director of Administrative Services, utilizing the following main sources of information: • Community input
C I T Y
O F
• City Council Top Five Priorities • Findings from the City's Long Range Financial Forecast, which is updated annually and presented to the Finance Committee prior to the budget process • Comprehensive Plan containing the City's official policies on land use and community design, transportation, housing, natural environment, business and economics, and community services This information is used to develop the budget request guidelines, which provide direction to City departments as they prepare their budget requests.
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The Budget Process and Document OPERATING BUDGET CALENDAR November: Operating budget preparation begins with determination of the base budget for the following
year, which excludes one-time revenue and expenses from the prior year. Input from the Long Range Financial Forecast (LRFF) determines the broad financial picture facing City operations in the upcoming period. Budget guidelines and instructions are finalized and distributed. Municipal Fee Schedule change parameters are also provided. December /January: Critical to their planning process for the upcoming year, departments are allowed to
reallocate staffing and non-salary resources to meet the changing demands placed on service delivery. This step results in no net change to the amount of resources allocated to the department overall. February: Changes to the base budget are submitted to the Budget Division for analysis and may include
requests for additional funding to meet program needs for the upcoming year. Textual elements of the budget document, including benchmarking measures are also finalized. March: Recommendations on the base budget requests are made by Budget Division staff to the Director of Administrative Services, both in terms of their conformance to budget guidelines as well as their individual merits. Internal budget hearings are held to discuss Budget Division analysis of department funding requests, along with alternative funding options to meet the department's needs. Cost-benefit analysis is performed on both base operations as well as new funding requests. April: Final decisions are made by the City Manager, on the proposed operating budget requests, along
with the general message to the City Council. The proposed budget document is compiled, edited, and formally presented by the City Manager to the City Council. Proposed changes to the Municipal Fee Schedule are finalized and reviewed by the Office of the City Attorney. May/June: the City Manager presents the proposed budget to the Finance Committee in a series of public
hearings. The Finance Committee prepares its recommendation to the City Council. Final adoption occurs at a final public hearing in June. All changes made during the public process are incorporated into the adopted budget document which is distributed to City libraries as well as posted on the City's website.
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City of Palo Alto
Operating Budget FY 2011
The Budget Process and Document City of Palo Alto BUDGET HEARINGS PUBLIC OUTREACH SCHEDULE With City Council and Finance Committee For 2011 Budget
DATE
DESCRIPTION
TIME/LOCATION
DEPARTMENTS ATTENDING
Monday, May 3
City Council City Manager Proposed Budget
7pm Council Chambers
Presentation and Transmittal of FY2011 Proposed Budget - Referral to Finance Committee
Tuesday, May 4
Budget Outreach Community Meeting City Manager
6 – 7:30pm
Discussion and public input on the Proposed Budget
Thursday, May 6 Tuesday, May 11
Finance Committee Special Meeting Budget Review Kick-Off Finance Committee Special Meeting
Council Chambers 7pm Council Chambers
7pm Council Chambers
Transmittal of 2011 General Fund budget – CAO’s (except City Attorney), Council, Human Resources, Library Community Services, City Attorney, Planning
Saturday, May 15
Budget Outreach Community Meeting City Manager
9:30 – 11am
Tuesday, May 18
Finance Committee
7pm Council Chambers
Police, Fire, ASD, ASD Internal Service Funds
Tuesday, May 25
Finance Committee Special Meeting
7pm Council Chambers
Utilities and Utilities CIP, Public Works General Fund Operating, General Fund CIP
Thursday, May 27
Finance Committee
7pm Council Chambers
Public Works - Enterprise Funds (Storm Drain, Refuse, Wastewater Treatment), Internal Service Fund and related CIP
Finance Committee
7pm Council Chambers
Municipal Fee Schedule Contracts Greater than $85k, Wrap-Up
City Council
7pm Council Chambers
Budget Review and Public Hearing
Monday, June 28
City Council Special Meeting – Budget Adoption
7pm Council Chambers
BUDGET ADOPTION
Tuesday, June 29
City Council Special Meeting – Budget Adoption
7pm Council Chambers
BUDGET ADOPTION – if needed
Wednesday, June 30
City Council Special Meeting – Budget Adoption
7pm Council Chambers
BUDGET ADOPTION – if needed
Tuesday, June 8 Monday, June 21
Special Meeting
Operating Budget FY 2011
Lucie Stern Ballroom
Discussion and public input on the Proposed Budget
City of Palo Alto
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The Budget Process and Document CHANGING THE BUDGET LEVEL OF CONTROL AND CHANGES TO THE ADOPTED BUDGET Budgetary control, the level at which expenditures cannot legally exceed the appropriated amount, is implemented at each expense item at the cost center level, the department level, the fund level, and the capital project level. Administrative policies provide guidelines on budget transfers; the authorization necessary to implement transfers and appropriations after the budget is adopted. Generally there are two types of budget transfers: Budget Adjustment: Budgetary control, the level at which expenditures cannot legally exceed the
appropriated amount, is exercised at the fund level, the department level, and the capital project level. Budget Amendment: This is an adjustment to the total appropriated amount within a fund or department
which was not included in the original adopted budget. These supplemental appropriations are presented to City Council in an agenda report and require for approval, the passage by a two-thirds vote of the City Council. Unexpended appropriations automatically lapse at the end of the fiscal year and are included in the ending fund balance calculations within each fund. Reasons for initiating a Budget Amendment Ordinance (BAO) include: • Recognizing unanticipated revenue, which were not projected in the budget, and to appropriate associated expenditures in the year it is received • Appropriating additional funds from reserves • Transferring dollars from the operating budget to the capital budget or vice versa • Transferring between funds, departments, or projects • Amending the official “Table of Organization” (staffing changes) during the year • Amending the Municipal Fee Schedule during the year
UNDERSTANDING THE DOCUMENT LAYOUT DOCUMENT ORGANIZATION The budget document contains the General Fund, Enterprise Funds, Internal Service Funds, Debt Service Funds, and Special Revenue Funds. Funds: Local government budgets are made up of funds which help to organize and account for restricted
resources. Each fund is considered a separate accounting entity. Enterprise Funds are set up as selfsupporting units similar to those in a business. They account for the operation and maintenance of facilities and services that are entirely paid for by rates charged to residents or, in the case of Internal Service Funds, to City departments. The City of Palo Alto owns and operates its own utilities, with the
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City of Palo Alto
Operating Budget FY 2011
The Budget Process and Document exception of refuse hauling and collection, which is contracted with an outside firm. The budget document is divided into fund and department sections, each containing the following components: • Fund/Department Overview - identifies key goals to be achieved during period • Program Update - reports on accomplishments in any new program/activity undertaken during the past two years • Financial Summaries - revenues and expenditures by functional area and expense category • Council Priority Implementation - specifically cites activities related to City Council's top three priorities • Resource Level Changes - identifies major resource changes from the base budget • Service Level Changes - describes changes to service delivery in the upcoming period Financial and narrative information is provided in each of these areas. This format allows the reader to review a fund budget at different levels of detail ranging from an overview of the fund as a whole, to specific department program funding requests. Positions: Specific information related to the number of positions within a particular department or fund, can be found on the Full Time Equivalent (FTE) line of each financial summary. Historical information on how these numbers have changed is detailed under the Staffing tab and within the Table of Organization. At the fund and department levels, the number of personnel in each functional area is shown. A detailed listing of regular, permanent positions and total cost is shown at the beginning of each department/fund, with the specific classifications noted in the Table of Organization at the end of this document.
UNDERSTANDING THE DETAILS FINANCIAL SUMMARIES Reflected in this document are actual revenues and expenditures for Fiscal Year 2009; the FY 2010 Adjusted Budget; and the FY 2011 Proposed Budget. The main focus of this discussion along with the dollar amounts in the “Budget Change” column is to compare theFY 2010 Adjusted Budget with the FY 2011 Proposed Budget. This describes the changes from the prior year's numbers and is the recommended method of showing budgetary change by the Government Accounting Standards Board (GASB). Revenues: Total revenues are displayed for each department and fund. In each department, revenues are
shown as either internal or external depending on their source. Revenues include fees collected for costrecovery purposes by the department or fund for specific services to the public (external revenues), as well as revenues received from other funds (internal revenues). An example of internal revenue includes the Electric Fund reimbursing the Attorney's Office for legal services. The principal sources of external revenues are described in the Resource Level narratives within each department.
Operating Budget FY 2011
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The Budget Process and Document Expenditures: Expenditures are displayed at the fund summary as well as the department summary level.
For example, the budget shows funding dedicated to the Building Division in the Planning and Community Environment Department. Basis of Accounting and Budgeting: All governmental fund-type annual budgets are presented on a basis
consistent with the general purpose financial statements prepared in accordance with generally accepted accounting principles. The City’s Fiscal Year 2009 Comprehensive Annual Financial Report (CAFR) was prepared in accordance with the requirements of Governmental Accounting Standards Board (GASB) Statement No. 34 and provides the government-wide financial statements in addition to the fund financial statements. The accounting and financial reporting treatment applied to fund financial statements is determined by the measurement focus of the individual fund. The City's Governmental Fund (General Fund, Special Revenue Fund, and Capital Project Fund) and Proprietary Fund Budgets (Enterprise Funds) are developed using a modified accrual basis of accounting. While the Governmental Fund is accounted for using the modified accrual basis, the Proprietary Fund is accounted for using the full accrual basis of accounting. Both of these bases are generally accepted accounting principles (GAAP). Modified accrual basis of accounting recognizes revenues when measurable and available and records expenses when incurred, while the full accrual basis of accounting, records revenues when earned and recognizes expenses when incurred, regardless of when the related cash flows take place. Fund/Department Administration: The budget document includes an administration function within
each department-level financial summary. Typical administration expense includes core staff that work on department-wide priorities, as well as allocated costs from internal service funds. RATES AND RESERVES The General Fund (GF) has one main reserve - the Budget Stabilization Reserve (BSR). City Reserve Policy has placed a cap of 18.5 percent of GF Expenditures on the BSR, with any excess going to the Infrastructure Reserve (IR). Financial Policy allows flexibility in determining the BSR cap amount within a range of between 15 and 20 percent of expense. The Infrastructure Reserve (IR) is located in the General Capital Projects Fund. Annual interest of approximately $1 million accrues to this fund. The budgeted General Fund transfer for Fiscal Year 2011 is $9.2 million for infrastructure projects. In the Enterprise Funds, rates are the charges to customers for services provided, such as electric and gas services. The total revenue generated by the rates covers expenditures on an ongoing basis. Utility rate increases or decreases are typically staggered to minimize volatility from one year to the next. When budgeted revenues are not sufficient to cover budgeted expenditures in years between planned rate increases, or in the case of emergencies or unforeseen changes in either revenues or expenses, reserves are used to cover the difference. Council has adopted a policy specifying the appropriate levels of reserves in each Enterprise Fund. Typically, the budget will reflect either increasing or decreasing the reserves to within Council-approved ranges. A reserves summary table is located at the beginning of the Enterprise Funds section and within each individual fund summary.
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City of Palo Alto
Operating Budget FY 2011
The Budget Process and Document SPECIAL REVENUE FUNDS Special Revenue Funds account for revenues with certain restrictions on their usage. These funds include gas tax funds from the state, in-lieu housing fees assessed for the City's Below Market Rate housing projects, and transportation mitigation fees paid by developers. Other funds in this category include: assessments for parking lot bond payments, parking permit revenues and Community Development Block Grants (CDBG) from the federal government. Also included are development impact fees related to libraries, parks, and community centers. INTERNAL SERVICE FUNDS Internal Service Funds provide printing and mailing, vehicle replacement and maintenance, technology, and general benefits administration services to City departments. These services are rendered on a cost recovery basis through user charges. The Vehicle Replacement and Maintenance Fund manages citywide maintenance and replacement of vehicles and equipment. The Printing and Mailing Services fund accounts for central duplicating and printing/mailing services, while the General Benefits and Insurance Fund accounts for the administration of employee benefits, the City's self-insured workers' compensation, payroll, and general liability programs. The Technology Fund includes activities such as personal computer desktop, software application, and technology infrastructure replacement and maintenance.
Operating Budget FY 2011
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City of Palo Alto
Operating Budget FY 2011
GENERAL FUND
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Operating Budget FY 2011
General Fund Overview
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Operating Budget FY 2011
General Fund Revenues General Fund Revenues The City's “"2010-2020 Long Range Financial Forecast" (LRFF) was presented to the Finance Committee in February 2010 (CMR: 143:10). The LRFF, with its ten-year revenue and expense forecast is the foundation on which a proposed budget is built. With the disruptive economy and the significant budget gap, each revenue remittance is scrutinized carefully so that projections can be updated. Therefore, some revenue figures may have changed since the LRFF was published. General Fund revenues are still under duress and are expected, at best, to climb slowly out of their trough. There is some evidence that the General Fund has hit a revenue "bottom," but continued high unemployment, low consumer confidence, restrained business spending, and credit restrictions could reverse or constrain revenue performance. The following sections discuss the City’s major revenue sources and their projected levels for Fiscal Year 2011.
SALES TAX
C I T Y
O F
P A L O
A L T O
Sales taxes are projected at $18.2 million in this budget. This is $0.9 million or 5.2 percent above the adjusted FY 2010 budget. This increase is primarily a result of the "triple flip" FY 2010 reconciliation payment the State will make in FY 2011. After two years of consecutive, quarterly declines in performance, the City realized a 1.2 percent gain in the fourth quarter of 2010. Based on the economic conditions cited above, it is premature to verify a turnaround in this revenue source. Key local sales tax generators such as auto, department store, restaurant, and apparel stores continue to show weak results.
PROPERTY TAX Property taxes are expected to remain flat over the next two years. Typically lagging the more economically sensitive revenue sources, property taxes are reaching a plateau. Unlike other, less fortunate jurisdictions in the Bay Area, property values have remained relatively stable. There are, however, a few troubling signs. The County is receiving an overwhelming number of appeals from commercial properties to adjust their assessed values downward. It is not known how many of these appeals are coming from Palo Alto businesses and it is unlikely the County can address all of the appeals within the next two years. In addition, the FY 2011 roll will, in fact, be adjusted by a negative 0.26 percent based on the California CPI. In effect, any growth due to property turnover is likely to be muted.
TRANSIENT OCCUPANCY TAX (TOT) This tax source has dropped significantly over the past two years. In FY 2010, budgeted revenues were trimmed by $0.4 million at midyear as a consequence of lower occupancy and room rates in FY 2010. Through February 2010, occupancy and room rates have averaged 62.9 percent and $137.60, respectively. In FY 2009, they were 65.2 percent and $145.90, respectively. In February 2010, preliminary signs of stabilization in this revenue category emerged as occupancy and room rates trended above average as well as over the prior year period. This development prompted staff to cautiously raise the TOT projection in the LRFF by $0.25 million.
UTILITY USERS TAX (UUT) UUT revenues are projected to increase slightly in FY 2011compared tothe FY 2010 adjusted budget. Since no rate increases are proposed for electric, water, and gas usage, the utility driven UUT revenues are expected to remain flat. Telephone revenues are anticipated to remain stable as well. Compared to the FY 2011 Adopted-in-Concept budget, however, which did include rate increases, utility UUT revenues are falling by nearly $1.0 million.
Operating Budget FY 2011
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General Fund Revenues OTHER TAXES AND FINES This revenue category is comprised of motor vehicle in-lieu fees, documentary transfer taxes, and fines and penalties. Documentary Transfer tax revenues have been increased from $3.3 million in the LRFF to $3.6 million in the Proposed Budget. Transaction volume has been rising in the last several months and receipts are moving above the low levels experienced in FY 2009. Of all the City's revenue sources, the transfer tax has demonstrated the most evidence of a turnaround
CHARGES FOR SERVICES This revenue category is mainly comprised of external reimbursements and fee-for-service payments generated by General Fund departments such as Stanford University's payment for fire protection services ($7.9 million), paramedic fees ($2.0 million), and plan checking fees ($1.2 million). As compared to the Fiscal Year 2010 adjusted budget, this category is projected to increase by $1.0 million due to an increase in the Stanford fire contract, paramedic fees and a decreasein plan checking fees.
FEES, PERMITS AND LICENSES Revenue in this category is primarily derived from construction-related activity. In Fiscal Year 2011, revenue in this area is decreasing $0.1 million due to the downward trend in housing starts and construction activity.
INVESTMENT EARNINGS The Federal Open Market Committee (FOMC) has steadfastly maintained its loose monetary policy to boost the economy. With interest rates at "rock bottom" levels, there has been no change in projected income of $1.7 million from the LRFF.
RENTAL INCOME Primarily comprised of rent charged to enterprise funds for use of City land, this revenue category is increasing $0.1 million in Fiscal Year 2011 as compared to the Fiscal Year 2010 adjusted budget. This is due to revised rental values as updated annually.
CHARGES TO OTHER FUNDS This revenue category is the reimbursement received by the General Fund for the provision of administrative services to enterprise and internal services funds. The General Fund charges these funds for legal, human resources, finance, and general administration services. This revenue is increasing $0.1 million in Fiscal Year 2011 compared to the Fiscal Year 2010 adjusted budget. This is change is due, in part, to departmental expenditure reductions that have been recommended in response to declining revenues.
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City of Palo Alto
Operating Budget FY 2011
General Fund Revenues OPERATING TRANSFERS-IN The equity transfer from the Electric and Gas enterprise funds is the largest component of this revenue category, totaling $16.5 million. The equity transfer represents the return on the initial investment the City made when the Utility Department, and its utility business, was created more than 100 years ago. A recommendation to change the methodology for calculating the equity transfer was presented to the Finance Committee on March 31, 2009 (CMR: 190:09) and was presented again on May 26, 2009 (CMR: 260:09). The change in methodology was adopted by the City Council on June 15, 2009 as part of the budget adoption. The transfer for Fiscal Year 2011 represents a $0.1 million increase from Fiscal Year 2010.
OTHER REVENUE This revenue category is mainly comprised of Animal Services revenue from neighboring cities, Palo Alto Unified School District's (PAUSD) share of maintenance for athletic fields, and one-time revenue sources. This revenue is decreasing $0.2 million in Fiscal Year 2011 compared to the Fiscal Year 2010 adjusted budget due to one-time grant revenues received in Fiscal Year 2010.
Operating Budget FY 2011
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General Fund Expenditures General Fund Expenditures Total General Fund expense is projected to be $137.1 million in Fiscal Year 2011, a $4.9 million (3.4 percent) decrease from Fiscal Year 2011 adjusted budget figures. A total of $11.3 million in budget balancing strategies have been submitted for consideration to address the $7.3 million initial budget gap. With many of these strategies built into the proposed budget, a surplus of $2.1 million is shown in the General Fund summary. This approach was developed as part of a multi-year budget balancing strategy recognizing that the budget gap is too challenging to close in one year because it could result in unacceptably deep City service cuts.. Budget balancing strategies proposed in FY2011 focus primarily on long term systemic changes, which would have a lasting and significant impact on reducing the budget gap. To balance the $7.3 million budget gap in the FY 2011 proposed budget, three overriding strategies have been deployed. These include ongoing or structural changes as well as one-time or "bridge" solutions with the primary emphasis focus on long-term solutions. These three budget balancing strategies are as follows: •
Areas where costs could be reduced and the level of service would stay the same
•
Areas where costs could be reduced and the service would be performed at a reduced level
•
Areas where the cost of providing the service could be shifted to residents or participants
NO SALARY EXPENSE INCREASES The FY 2011 Proposed Budget contains no funding for salary increases for the Management and Professional group of employees and SEIU.
The Palo Alto Peace Officers Association (PAPOA) voted to defer their negotiated salary increase for FY 2010 to FY 2011. Senior staff is pursuing similar concessions given by management and SEIU employees with the Public Safety groups. Yet to be negotiated, these cost saving measures could include employee contributions to health care and pension plans, and potential reductions in public safety pay.
Non-departmental appropriations includes expenses or placeholders for future reductions not associated with operation of a particular department. This includes payments such as the direct support of the Palo Alto Unified School District (PAUSD) of $6.7 million as part of the lease and covenant not to develop the Cubberley Community Center. It also includes the placeholders for anticipated attrition savings during FY 2011 of $1.5 million and savings from an anticipated reduction in fleet operations of $483,000.
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City of Palo Alto
Operating Budget FY 2011
A L T O
NON-DEPARTMENTAL EXPENDITURES
P A L O
The Fire Chiefs Association (FCA) four year contract, renewed with an effective date of July 2006, will expire June 2010.
O F
International Association of Fire Fighters (IAFF) four year contract renewed with an effective date of July 2006, will expire June 2010.
C I T Y
To resolve the structural budget gap, the proposed cuts represent a mix of targeted and across the board reductions. Departments were requested to propose reductions and given the opportunity to reallocate resources within department budgets which addressed the need to adjust spending in certain areas as a result of shifting operational needs. Additionally, Departments recommended $8.5 million in net expenditure reductions as a response to declining revenues. The details of the departmental expenditure reductions can be found in the General Fund Service Level Changes summary and in the individual department narratives.
General Fund Expenditures CONTINGENCY SPENDING Contingency accounts are budget appropriations that are eventually transferred to another department in order to fund unanticipated expenses. These accounts include City Manager and City Council contingency spending as well as compensation adjustments that may be allocated to departmental budgets later in the year. Fiscal Year 2011 includes a $145 thousand reduction in the contingency account for unforeseen legal expenditures in the City Attorney's Office. This reduction reduced the City Attorney’s contingency account from $270 thousand to $125 thousand.
OPERATING TRANSFERS OUT The General Fund maintains obligations to other funds such as the Capital Project Fund and Debt Service Funds. Operating transfers are a means of moving resources between funds. General Fund operating transfers out are projected to be $10.3 million in Fiscal Year 2011. Some of the larger transfers in Fiscal Year 2011 include $9.2 million to the Capital Project Fund for infrastructure and $1.1 million to the Debt Service Fund to fund the debt payments.
RESERVES The Budget Stabilization Reserve (BSR) is projected to be at 19.0 percent of expenditures, approximately $26 million at the Fiscal Year 2011 year end. This is the upper limit of the reserve policy guideline range which is 15 to 20 percent of General Fund expenditures. The BSR as submitted in the proposed budget is in-line with the target level of 18.5 percent of expenditures. However, it is anticipated that once decisions are made regarding the proposed budget reductions the BSR will fall to the lower limit of the policy guideline range. Once the economy starts to experience a recovery from the current recession, it is expected that the BSR will again return to the target level of 18.5 percent of expenditures.
LONG RANGE FINANCIAL FORECAST (LRFF) As presented to the Finance Committee in February 2010, the LRFF plays a critical role in the development of much of the fundamental analysis in this budget presentation. The LRFF reflects the weakening economy and its anticipated effects on General Fund revenues and expenditures. The model in this document has been updated with the Fiscal Year 2009 actual revenues and expenditures as well as projections for Fiscal Years 2010 through 2020.
CITYWIDE OPERATING FUND BALANCES STATEMENT An organization-wide operating fund statement is included in the financial summaries that follow this discussion. Internal service fund activities are not listed separately since the expenses surrounding these activities have been allocated to all funds receiving the service and included as expense within those funds. Capital Project Fund activities are captured as a net transfer of fund balance and also are not included in this operating statement. Here are the highlights from the Fiscal Year 2010-2011 summary: •
Total City revenues are projected to be $414 million in FY 2011.
•
Total City expenditures are projected to be $442 million in FY 2011.
•
Total fund balances are projected to be $212 million in FY 2011.
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General Fund Service Level Changes General Fund Service Level Changes The proposed General Fund budget for Fiscal Year 2011 includes $8.5 million of proposed reductions in the expense base. These reductions include the elimination of 75 FTE and additional hourly positions among other departmental reductions. Below is a summary of the major service reductions that are a result of the cost reductions included in this budget. Additional detail on service reductions is included in the department sections within the budget document. City Attorney: ($0.2 million reduction)
Reduction in Outside Counsel funding: may result in a reduction in services to City departments and specialized outside counsel may be unavailable. Administrative Services Department: ($0.7 million reduction)
Elimination of 1 FTE Administrative Associate: will reduce administrative support throughout the department. Elimination of 1 FTE Accounting Specialist: may result in longer waits for customers at the Lobby counter for paying utility bills, parking citations, and building permit fees. Community Services: ($1.2 million reduction)
Elimination of 5.0 FTE Park Maintenance Person: will result in the contracting of the park maintenance services for Mitchell and Rinconada Parks and Lawn Bowling Green.
Elimination of 3.0 FTE support staff responsible for front desk customer service, program registration, facility booking and resident inquiries at the Lucie Stern, Mitchell Park, Cubberley, and Art Centers. A more centralized customer service model is being designed along with enhancing online and other self service strategies. Residents may experience some inconvenience as City adjust to a more sustainable level of customer service.
Elimination of the summer concert series. Revisions to the Fee Reduction Program to limit eligibility to youth, seniors, and disabled persons and reduce the discount to either 25% or 50% based on income level Human Resources Department: ($0.2 million reduction)
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City of Palo Alto
Operating Budget FY 2011
A L T O
Freeze Human Resources Director position beginning midyear Eliminate non-mandatory employee training Deferred Employee Recognition Picnic Reduction in contract service expense related to the Management/Professional Compensation Study
P A L O
Reduction of the budget for the Human Services Resource Allocation Process (HSRAP) in the amount of $50,000.
O F
Elimination of 0.5 FTE Family Resources Program Coordinator. The proposed reduction to 1/2 time will lead to a complete restructuring of the program, the end result of which is still to be determined.
C I T Y
Elimination of 7.0 FTE Golf Course Maintenance staff: will result in the contracting out of the golf course maintenance services.
General Fund Service Level Changes Library Department: ($0.5 million reduction)
Elimination of 1.0 FTE Senior Librarian, 1.0 FTE Library Associate, 0.5 FTE Library Assistant and 3.57 FTE hourly. This reduction will shorten the number of hours that the libary will be opened to the public: •
The College Terrace Library will remain closed in FY 2011, past the currently anticipated November 2010 renovation project completion date
•
Main and Mitchell Park libraries will close at 8 pm on Tuesdays, Wednesdays and Thursdays
Reduction of librarian staff will result in reductions in programming for all ages The Downtown Library will be closed for renovation through FY 2011 The number of items added to the library collection will decrease by 3,500 books, and the number of electronic resources the Library subscribes to will be reduced due to an 18 percent reduction to the collection budget Planning and Community Environment ($0.8 million reduction)
Elimination of 1.0 Senior Planner (vacant) will reduce current planning service levels, senior staff leadership and staff capability to take on projects such as ordinance revisions and development process modifications. Elimination of 1.0 Building Inspector Specialist (vacant) will reduce inspection service levels, requiring added contract services if development levels increase. Elimination of 1.0 Administrative Associate I (vacant) will reduce customer service levels and administrative support to staff. Elimination of 1.0 Building/Planning Technician (filled) will reduce coverage at the Development Center. Elimination of 1.0 Code Enforcement Officer (filled) will substantially reduce compliance efforts to address code violations in the field. Elimination of the Marguerite and Noon shuttles, plus eliminating one bus on the Crosstown shuttle. Stanford has already eliminated the Marguerite Shuttle. Service level impacts will not be substantial for the Noon shuttle since there is currently little ridership. The elimination of one bus on the Crosstown shuttle will cause an approximately 50 percent decrease in service, but the system could still serve most critical areas and times at a reduced frequency. Department instruction and training budgets have been reduced impacting department professional development. Public Works Department ($1.3 million reduction)
Elimination of 1.0 FTE Project Manager- CIP Parks Infrastructure: The Parks infrastructure backlog has been reduced substantially over the past few years and upcoming projects could be implemented with remaining staffing levels. Elimination of 3.0 FTE Building Servicepersons: Servicing of Civic Center would be by contract for all areas with the exception of the Police Dept. Elimination of 1.0 FTE Engineering Tech III conducting inspection services and contract funding for the annual Sidewalk Replacement program: Routine sidewalk repair and replacement will become the responsibility of the residents as is typical in most Bay area cities. In-house crew will be retained to maintain "hot spots" and any emergency work that needs to be done.
Operating Budget FY 2011
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General Fund Service Level Changes Reduction in asphalt supply would result in less road repairs accomplished. Reduction in tree planting budget would result in less trees planted and reduction of number of trees in the urban forest. Reduction in cleaning budget reduces the overall budget to clean carpet, upholstery, drapes, and blinds at City Facilities. Reduction in maintenance contract services will result in elimination of response to non-essential requests including carpet and window covering replacement, doors, locks, minor mechanical systems, and plumbing fixtures. The priority of response will continue to focus on health and life safety, and maintenance of the building shell and systems. Maintenance of interior finishes and customer convenience requests will be handled as resources allow. Elimination of 4.0 FTE Tree Trimmer/Line Clearers and increase contract services for routine tree trimming: Remaining City crews would be available for emergency trimming and for electric power line clearing. Contracting these services may result in a longer response time to trimming requests in general. Emergency response including winter storm response may be delayed until contractors can be contacted and dispatched. Additional reduction in various contract services. Police Department ($1.9 million reduction)
Elimination 0.50 FTE Code Enforcement Officer: Performs reviews of permit applications and issuance of permits; evaluates alarm permits and complaints. Elimination of 1.0 FTE Crime Analyst: eliminates demographic data collection and reporting; reduction in support for detectives. Elimination of the Traffic Team (1.0 FTE Police Agent, 3.0 FTE Police Officer, and 1.0 FTE Police Sergeant): reduction in traffic enforcement throughout the City, including school zones; impacts programs such as Safe Routes to Schools, Adopt-a-School, Bicycle Rodeos, and the School Crossing Guard Program. Elimination of 2.0 FTE Police Officer in the Detective Bureau: eliminate investigations for financial loss, fraud, or identity theft; reduction of detective support for major crimes such as homicide, rape, robbery, or burglary. Elimination of 1.0 FTE Police Records Specialist II: reduced public hours to meet minimum mandatory reporting requirements; potential elimination of on-line reporting capabilities. Elimination of 1.0 FTE Program Coordinator: eliminates the Neighborhood Watch, Community Newsletter, Community Events and Fairs, Community Education Programs, and the Coordinator of the Officer Request for Services Program. Reduction in education efforts in Emergency Prepardness. Reduction in temporary salary funding: elimination of the Municipal Code ban on gas-powered leaf blower enforcement. Decrease in overtime expense for providing police services to city sponsored events: elimination of police services for City sponsored events such as the "Moonlight Run," "May Fete Parade," "Black and White Ball," "California Avenue Summer Concert" and "World Music Day." Transfer cost of School Crossing Guards to PAUSD: school district will assume cost for 29 crossing guard locations that enhance students' safe passage to school.
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General Fund Summary General Fund Summary
F U N D S UMMAR Y ($000)
Sales Tax Property Tax Transient Occupancy Tax Utility Users Tax Other Taxes and Fines Charges for Services Permits and Licenses Return on Investment Rental Income From other agencies Charges to Other Funds Other Revenue
TOTAL REVENUES Operating Transfers-In
TOTAL SOURCE OF FUNDS
Operating Budget FY 2011
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
FY 2011 Budget Change
20,089 25,445 7,111 11,030 5,187 19,451 4,627 3,360 13,646 158 11,169 2,323
19,650 25,752 7,000 11,250 5,633 20,238 5,056 1,900 13,655 92 10,643 1,605
17,313 25,778 6,639 11,417 5,584 18,932 4,596 1,662 13,606 323 10,546 1,739
20,050 26,102 7,300 12,304 5,737 20,596 5,131 1,900 13,655 92 10,957 1,502
18,218 25,907 7,021 11,429 5,868 19,950 4,492 1,646 13,716 156 10,622 1,491
905 129 382 12 284 1,018 (104) (16) 110 (167) 76 (248)
$123,597
$122,474
$118,136
$125,326
$120,516
$2,381
17,614
19,664
22,908
18,709
18,684
(4,224)
$141,211
$142,138
$141,044
$144,035
$139,200
$(1,843)
City of Palo Alto
23
General Fund Summary FU N D S UMMAR Y FY 2009 Actuals
($000)
City Attorney City Auditor City Clerk City Council City Manager Administrative Services Community Services Fire Human Resources Library Planning and Community Environment Police Public Works Non-Departmental
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
FY 2011 Budget Change
2,474 817 1,150 279 1,948 6,994 21,149 23,397 2,700 6,224
2,569 999 1,512 296 2,395 6,761 21,876 25,166 2,837 6,385
2,523 987 1,596 298 2,436 6,713 21,694 26,253 2,795 6,370
2,614 1,020 1,227 271 2,395 6,889 22,272 26,161 2,898 6,521
2,354 982 1,093 159 2,154 6,359 20,142 27,007 2,749 6,421
(169) (5) (503) (139) (282) (354) (1,552) 754 (46) 51
9,889
9,858
9,862
9,745
9,078
(784)
28,245 12,894 6,835
29,998 13,484 6,925
30,010 13,426 6,074
31,328 13,768 8,230
29,181 13,000 6,088
(829) (426) 14
$124,995
$131,061
$131,037
$135,341
$126,767
$(4,270)
Operating Transfers Out Transfer to Infrastructure
1,166 14,648
1,128 9,900
4,665 9,900
1,122 10,248
1,122 9,204
(3,543) (696)
TOTAL USE OF FUNDS
$140,808
$142,089
$145,602
$146,711
$137,093
$(8,509)
$403
$49
$(4,558)
$(2,676)
$2,107
$6,666
TOTAL EXPENSES
NET SURPLUS (DEFICIT)
24
City of Palo Alto
Operating Budget FY 2011
General Fund Summary E XP E N D I T UR E S BY CATEGORY
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 Adopted-inConcept Budget
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
FY 2011 Budget Change
Salaries and Benefits
91,580,716
92,717,073
91,089,564
96,361,039
87,204,186
(3,885,378)
Contract Services
10,115,716
9,075,564
9,971,628
9,804,411
9,752,014
(219,614)
Supplies and Materials
3,013,374
3,546,939
3,303,771
3,479,839
3,269,892
(33,879)
General Expense
8,989,894
10,192,501
9,995,598
9,869,501
9,988,636
(6,962)
Rents and Leases
720,450
740,486
739,206
740,486
735,706
(3,500)
Facilities and Equipment Purchases
359,772
472,104
399,426
472,104
452,119
52,693
10,213,738
14,316,318
15,536,994
14,613,245
15,364,388
(172,606)
Operating Transfers Out
1,166,272
1,128,274
4,665,134
1,121,819
1,121,819
(3,543,315)
Transfer to Infrastructure
14,647,577
9,900,212
9,900,212
10,248,460
9,204,394
(695,818)
$140,807,509 $142,089,471 $145,601,533 $146,710,904 $137,093,154
$(8,508,379)
Allocated Charges
TOTAL EXPENDITURES
RESERVES ($000)
FY 2009 Actuals
FY 2010 Adopted Changes
FY 2010 BAO’s
Projected 06/30/10
FY 2011 Projected Changes
Projected 06/30/11
Reserves Budget Stabilization Reserve (BSR) Activity: BSR
24,747
49
(922)
23,874
2,107
25,981
Other Reserve Activity: Encumbrance & Reappropriation
5,924
Equity Transfer Stabilization
3,636
Inventory of Materials & Supplies Notes Receivable, Prepaid Items, & Interfund Advances
TOTAL RESERVES
Operating Budget FY 2011
5,924
5,924
3,173
3,173
3,173
3,303
3,303
3,303
$40,783
(3,636)
$49
$(4,558)
$36,274
$2,107
City of Palo Alto
$38,381
25
General Fund Summary
$139.2 Million / Proposed FY 2011
1 - Sales Tax - 13%
1
13
2 - Property Tax - 20% 12
3 - Transient Occupancy Tax - 5% 11
4 - Utility Users Tax - 8% 5 - Other Taxes and Fines 4%
10
6 - Charges for Services - 14%
2
7 - Permits & Licenses - 3% 9
8 - Return on Investment - 1% 9 - Rental Income - 10%
3
8
10-From other Agencies - < 1% 7
11-Charges to other Funds - 8% 12-Other Revenue - 1%
4
6
5
13-Operating Transfers-In - 13%
3 Year Trend - Revenues (Millions) $30 FY 2009 Actual FY 2010 Adjusted FY 2011 Proposed
$25 $20 $15 $10 $5
Operating Budget FY 2011
Operating Transfers-In
Other Revenue
Charges to other Funds
From other Agencies
Rental Income
Return on Investment
Permits & Licenses
Charges for Services
Other Taxes and Fines
Utility Users Tax
Transient Occupancy Tax
Property Tax
Sales Tax
$0
City of Palo Alto
26
General Fund â&#x20AC;&#x201D; Expenditures by Category General Fund â&#x20AC;&#x201D; Expenditures by Category $137.1 Million / Proposed FY 2011 9
1
8
1 - Administration - 12% 2 - Community Services - 15% 7
2
3 - Fire - 20% 4 - Library - 5% 5 - Planning & Comm Environ - 7% 6 - Police - 21% 7 - Public Works - 9%
6 3
8 - Non-Departmental - 4% 9 - Operating Transfers-Out - 7% 5
4
3 Year Trend - Expenditures (Millions) $35
FY 2009 Actual FY 2010 Adjusted FY 2011 Proposed
$30 $25 $20 $15 $10 $5
27
City of Palo Alto
Operating Transfers-Out
NonDepartmental
Public Works
Police
Planning and Community Environment
Library
Fire
Community Services
Administration
$0
Operating Budget FY 2011
FY 2011 Projected Operating Fund Balances FY 2011 Projected Operating Fund Balances ($000)
Projected Ending Balance 06/30/10
Estimated Revenues
Net Fund Transfers
Projected Estimated Ending Balance Expenditures 06/30/11
GENERAL FUND
$23,874
$120,516
$8,358
$126,767
$25,981
CAPITAL FUND
$8,967
$3,645
$10,409
$20,410
$2,611
801 366 245 $1,412
32 13 9 $54
527 408 224 $1,159
560 421 233 $1,214
800 366 245 $1,411
109,385 8,831 14,590 6,554 21,845 8,378 300 (12,003) $157,880
128,579 3,312 45,651 15,924 31,316 29,896 5,733 20,590 $281,001
(12,061) (8) (5,918) (567) (442) (338) (609) (9) $(19,952)
123,524 2,155 45,040 16,325 36,184 36,552 5,002 21,324 $286,106
102,379 9,980 9,283 5,586 16,535 1,384 422 (12,746) $132,823
481 26,362 30 6,138 332 $33,343
* * * * * $0
0 0 2 (647) (143) $(788)
* * * * * $0
481 26,362 32 5,491 189 $32,555
5,046 125 2,050 6,930 511 3,404 0 115 $18,181
803 1,158 956 3,860 1,149 610 25 162 $8,723
(302) (1,042) (5) 0 (1,349) 0 0 0 $(2,698)
0 0 1,205 6,390 0 0 28 160 $7,783
5,547 241 1,796 4,400 311 4,014 (3) 117 $16,423
$243,657
$413,939
$(3,512)
$442,280
$211,804
DEBT SERVICE Golf Course Debt Civic Center Debt Parking 2002 COPS (Taxable) Debt Subtotal
ENTERPRISE Electric Fund Fiber Optics Fund Gas Fund Wastewater Collection Fund Water Fund Refuse Fund Storm Drain Fund Wastewater Treatment Fund Subtotal
INTERNAL SERVICE General Benefits and Insurance Fund Retiree Health Benefit Fund Printing and Mailing Fund Technology Fund Vehicle Replacement and Maintenance Subtotal
SPECIAL REVENUE Community Development Fund Street Improvement Fund Federal and State Revenue Funds Housing In-Lieu and Public Benefit Fund Special Districts Fund Traffic Mitigation & Parking In-Lieu Fund Public Benefits Fund Downtown Business Improvement District Subtotal
TOTAL OPERATING FUNDS * allocation to/from other funds
Operating Budget FY 2011
City of Palo Alto
28
City Attorneyâ&#x20AC;&#x2122;s Office
City Attorneyâ&#x20AC;&#x2122;s Office Organizational Chart
1.0-CITY ATTORNEY
Gary Baum
1.0-Legal Administrator
1.0-Secretary to City Attorney 2.0-Senior Legal Secretary 0.6-Claims Investigator
2.0-Senior Asst City Attorney 1.0-Assistant City Attorney 2.0-Senior Deputy City Attorney
Fiscal Year 2011 Position Totals - All Funds:
30
City of Palo Alto
10.60 Full-time 0.25 Hourly
Operating Budget FY 2011
City Attorney City Attorney OVERVIEW In FY2011, the City Attorney's Office will strive to maintain the high level of customer service it has achieved through the reorganization that has occurred over the past five years. The two primary goals of the Office are (1) to provide quality legal advice in a timely and cost-effective fashion, and (2) to assist in solving the challenging problems facing the City by providing a range of legal options whenever possible. We will continue focusing on these goals in FY2011, with specific emphasis on informing our new Council Members of City legal requirements and developing a variety of approaches that are effective both legally and practically to help staff and the Council meet important City objectives and policy directions. On an ongoing basis, the Office will strive to keep the City Council informed of significant legal occurrences and provide updates on legal developments and new laws that affect the City. To improve City Attorney staff's skill in providing effective legal advice and options, the Office will continue to emphasize cross training and encourage continuing education. In furtherance of the Council's specific priorities for FY2011, the City Attorney's Office plans to provide support in a variety of ways, including but not limited to the following:
C I T Y
O F
P A L O
A L T O
Environmental Sustainability The Office will provide legal analysis for reporting greenhouse gas emissions for the City and Utility Department projects and provide contract negotiation and CEQA analysis for the City's Recycled Water Project. The Office will draft contracts for renewable energy; and draft appropriate documentation for Utilities Department Energy Efficiency programs. We will evaluate the legality of funding options for energy efficiency retrofit projects and assist with the analysis of sustainable development conditions at the Stanford Medical Center. The Office will provide legal advice related to the green building ordinances and implementation of California's Green Building Code.
Land Use & Transportation The City Attorney's Office will provide legal advice regarding the California High-Speed Rail Authority and the Peninsula Cities Consortium. The Office will assist staff, the Planning & Transportation Commission, and the City Council on issues related to the Comprehensive Plan revision. The Office will work on the Business Plan for the Palo Alto Airport and issues related to a potential early termination of the lease with the County. We will continue to provide advice to the City Council and staff on legal issues related to the Stanford University Medical Center.
Emergency Preparedness The Office will maintain its ongoing support to staff efforts in this arena by continuing participation in Emergency Preparedness Steering Committee and Working Group meetings, and providing legal advice supporting projects of those groups. We will also focus on ensuring that the legal functions continue in case of emergency and that a high level of legal advice is available during an emergency to ensure ultimate reimbursement for State, Federal or Local disasters.
Operating Budget FY 2011
City of Palo Alto
31
City Attorney City Finances The Office will provide legal advice relating to new or enhanced approaches to increasing revenues. We will continue to provide extensive legal advice regarding labor negotiations. The Office will also analyze any new expense reduction programs to determine legality and the risk of potential offsetting liabilities that reductions may trigger. The City Attorney's Office will continue to focus on reducing its share of department expenditures and will formulate approaches for full cost recovery for legal services provided for the benefit of third parties.
Community Collaborative for Youth Health and Wellbeing Finally, the City Attorney's Office will provide any assistance required to support this priority, including work with the District Attorney to develop police policies for Police Department interaction with juvenile victims and suspects. We will also work with Comcast to attempt to ensure the continued viability of the I-Net for the benefit of our Palo Alto Unified School District partners, and continue to review and negotiate contracts with numerous non-profits to provide a high level of service to our youth.
COUNCIL PRIORITY IMPLEMENTATION City Finances
•
Respond to the Request for Information from Google and assist with negotiation of contracts with Google for deployment of citywide fiber-to-the-premises trial project
•
Provide legal advice on Utilities rates, reserves, cost allocations, rents and equity transfers
•
Assist with development of infrastructure finance methods and other new revenue sources
•
Assist with transition from Destination Palo Alto contract to San Mateo Tourism Business Improvement District
•
Provide legal advice on labor and employment issues associated with City budget and finance
Land Use & Transportation
•
Provide legal advice and guidance on issues related to High Speed Rail including those involving the Peninsula Cities Consortium and CEQA
•
Advise staff, the Planning and Transportation Commission and City Council on legal issues related to the update of the Comprehensive Plan
•
Assist with development of a business plan for the Palo Alto Airport in anticipation of early termination of current ground lease with County of Santa Clara
•
Provide legal advice to City Council and staff on Stanford University Medical Center project
Environmental Sustainability
•
Provide legal advice on reporting greenhouse gas emissions for City and Utilities Dept. projects
•
Draft and review contracts for the purchase of renewable energy
•
Draft and review contracts, resolutions and financing documents for Utilities Department energy efficiency programs
•
Provide legal advice, including CEQA analysis and contract negotiation, for the City's Recycled Water Project
•
Provide legal advice regarding the City's Master Water Supply contract with SFPUC through BAWSCA, and potential sale of a portion of the City's water supply guarantee
32
City of Palo Alto
Operating Budget FY 2011
City Attorney •
Provide legal support on green purchasing initiatives
•
Provide legal advice on compost options
•
Draft recycling ordinance
•
Provide legal advice related to green building ordinance and implementation of new California Green Building code
Emergency Preparedness
•
Assist in workplace violence prevention training
•
Provide legal advice, review and support for emergency preparedness teams and related disaster/ emergency preparedness projects
•
Community Collaborative for Youth Health and Wellbeing
•
Work with the District Attorney to develop policies for Police Department interaction with juvenile crime victims and suspects
•
Assist with negotiation of management services agreement with Comcast for I-Net benefits on behalf of Palo Alto Unified School District
DEPARTMENT SUMMARY FY 2009 Actuals
Administration Consultation and Advisory Litigation and Dispute Resolution Official and Administration Duties TOTAL EXPENDITURES TOTAL REVENUES INTERNAL REVENUES EXTERNAL REVENUES
Operating Budget FY 2011
98,448 1,822,147 413,693 139,408 $2,473,696 $1,287,154 1,196,693 90,461
FY 2010 Adopted Budget
202,501 1,766,540 466,250 133,269 $2,568,560 $1,159,170 1,088,170 71,000
FY 2010 Adjusted Budget
203,757 1,766,540 419,692 133,269 $2,523,258 $1,159,170 1,088,170 71,000
FY 2011 Adopted-inConcept Budget
204,942 1,802,893 470,647 135,636 $2,614,118 $1,140,622 1,104,622 36,000
FY 2011 Proposed Budget
FY 2011 Budget Change
209,110 1,539,454 476,897 128,075 $2,353,536 $1,354,877 1,318,877 36,000
5,353 (227,086) 57,205 (5,194) $(169,722) $195,707 230,707 (35,000)
% Chg
3% (13%) 14% (4%) (7%) 17% 21% (49%)
City of Palo Alto
33
City Attorney
Annual Number of Assignments
FY08-09 FY07-08 FY06-07 FY05-06 FY04-05 0
500
1000
1500
2000
2500
3000
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
3500
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
1,945,040 463,904 22,802 760 24,265 5,994 10,931
2,009,921 391,359 38,000 2,000 30,480 5,500 91,300
2,009,921 344,801 38,000 2,000 30,480 5,500 92,556
2,055,479 391,359 38,000 2,000 30,480 5,500 91,300
1,832,183 364,759 26,500 1,000 28,680 2,000 98,414
TOTAL EXPENDITURES
$2,473,696
$2,568,560
$2,523,258
$2,614,118
$2,353,536
TOTAL REVENUES
$1,287,154
$1,159,170
$1,159,170
$1,140,622
$1,354,877
10.60 0.95
10.60 0.95
10.60 0.95
10.60 0.95
9.60 0.25
Total Full Time Positions Total Temporary Positions
34
City of Palo Alto
Operating Budget FY 2011
City Attorney
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Number of work requests processed (SEA) 2. Number of claims opened and handled (SEA) 3. Number of code enforcement matters referred to City Attorney
2957 135 7
2750 135 7
2970 150 7
496
496
496
96%
96%
96%
100%
100%
100%
97%
97%
97%
97%
97%
97%
Efficienc y : 1. Ratio of work requests per attorney 2. Percent of claims investigations commenced within 7 days of receipt of claim by department 3. Percent of requests for code enforcement legal support responded to within 10 working days
Effe c t iveness: 1. Percent of work requests completed within established time frames time frame varies based on type of work request 2. Percent of claims resolved within 9 months
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VEN UE CHANGES Decrease other revenue-Stanford Increase allocated revenue-internal
TOTAL REVENUE CHANGES
35,000 (230,707) $(195,707)
35,000 (230,707) $0
$(195,707)
EXPENDITURE CHANGES Salary and Benefits Transfer 1.0 FTE Senior Deputy City Attorney to Utilities Reduce Temporary Salaries Personnel Benefit Costs Decrease (Note 2) Total Salary and Benefits Increase
(116,356) (36,360) (25,026) $(177,742)
(116,356) (36,360) (25,026) $0
$(177,742)
Non-Salary Decrease Arbitration Decrease Instruction and Training Decrease Programming, Computer, Equipment Maintenance, Software Decrease Books, Films, Publication Decrease various Telephone, Facilities, Office Machine and Furniture Increase Allocated Charges (Note 3)
Operating Budget FY 2011
(20,000) (3,600) (4,500) (10,000) (6,300) 5,862
(20,000) (3,600) (4,500) (10,000) (6,300) 5,862
City of Palo Alto
35
City Attorney RESOURCE LEVEL CHANGES
Total Non-Salary Changes
TOTAL EXPENDITURE CHANGES
FY 2011 Ongoing $(38,538) $(216,280)
Adjustments (Note 1)
NET EXPENDITURE CHANGES
FY 2011 One-Time
$(216,280)
FY 2011 Total
$0
$(38,538)
$0
$(216,280)
46,558
46,558
$46,558
$(169,722)
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY2010 budget. Note 2: Personnel benefit costs have decreased mainly due to a change in methodology of estimating benefit costs. Note 3: Allocated charges have increased due to the loan repayment to the Technology Fund.
SERVICE LEVEL CHANGES A City Attorney contingency account, totaling $270,000, was created in FY2010 for unforseen legal services. In FY2011, this contingency account was decreased by $145,000 to realign with the actual trending. The Office of the City Attorney completed its restructuring effort during Fiscal Year 2007. The restructuring effort resulted in a 21 percent reduction in staffing from the Fiscal Year 2003 staffing level. This represents a substantial contribution from the City Attorney's Office to reducing general fund expenditures. The reduction in outside councel budget may result in a reduction in service to City departments. In order to maintain a high level of accurate legal services in a timely fashion, additional service level changes are not recommended.
Operating Budget FY 2011
City of Palo Alto
36
City Auditorâ&#x20AC;&#x2122;s Office
City Auditorâ&#x20AC;&#x2122;s Office Organizational Chart
1.0-CITY AUDITOR
Lynda Flores Brouchoud
1.0-Administrative Assistant
2.0-Senior Auditor
Fiscal Year 2011 Position Totals - All Funds:
38
City of Palo Alto
4.00 Full-time 0.32 Hourly
Operating Budget FY 2011
City Auditor City Auditor To promote honest, efficient, effective, and fully accountable City Government. OVERVIEW The City Auditor's Office conducts performance audits and reviews of City departments, programs, and services. Performance audits provide the City Council, City management, and the public with independent and objective information regarding the economy, efficiency, and effectiveness of City programs and activities. The Office coordinates the annual citizen survey and issues the annual City of Palo Alto Service Efforts and Accomplishments report summarizing costs, workload, and performance results for City services over the last five years. Each fiscal year, the Auditor's Office presents an annual audit work plan for City Council approval. The Office will continue to report quarterly to the City Council on the status of audit projects and annually on the status of open audit recommendations. The Office contracts with an independent certified public accountant for the City's annual external financial audit. The Office also conducts and coordinates revenue monitoring in areas such as sales and use tax, property tax, transient occupancy tax (TOT) and utility user's tax (UUT).
COUNCIL PRIORITY IMPLEMENTATION
O F
P A L O
A L T O
In 2011, the City Auditor's Office will support implementation of the following City Council's Top 5 Priorities as follows: City Finances
•
Conduct targeted performance audits focusing on efficiency and effectiveness of City programs and activities
•
Continue to ensure the accuracy of financial information through the annual external financial audit
•
Continue to provide independent, impartial assessment of City government performance through the Service Efforts and Accomplishments report
•
Conduct on-going revenue monitoring and recovery audits
Environmental Sustainability
•
Include audit steps, when applicable, to assess progress in achieving environmental protection goals
DEPARTMENT S UM M A RY FY 2009 Actuals
C I T Y
Audit Services TOTAL EXPENDITURES TOTAL REVENUES INTERNAL REVENUES EXTERNAL REVENUES
Operating Budget FY 2011
822,566 $822,566 $453,495 368,733 84,762
FY 2010 Adopted Budget
998,519 $998,519 $755,215 605,215 150,000
FY 2010 Adjusted Budget
987,035 $987,035 $878,583 605,215 273,368
FY 2011 Adopted-inConcept Budget
1,019,538 $1,019,538 $768,310 618,310 150,000
FY 2011 Proposed Budget
981,951 $981,951 $950,416 800,416 150,000
FY 2011 Budget Change
(5,084) $(5,084) $71,833 195,201 (123,368)
City of Palo Alto
% Chg
(1%) (1%) 8% 32% (45%)
39
City Auditor
Revenue Audit Recoveries - ($000)
FY 2010 Adj
FY 2009
FY 2008
FY 2007
FY 2006
FY 2005
0
150
300
450
600
750
900
1050
Sales Tax Recoveries Other Revenue Recoveries (Including TOT, UUT & Alternate Fuel Tax)
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials General Expense Allocated Charges Operating Transfers Out
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
628,565 170,877 5,260 630 11,453 5,781
712,917 239,385 7,350 1,150 37,717 0
712,917 227,518 7,308 1,150 38,142 0
728,665 244,656 7,350 1,150 37,717 0
691,225 239,256 7,850 1,150 42,470 0
TOTAL EXPENDITURES
$822,566
$998,519
$987,035
$1,019,538
$981,951
TOTAL REVENUES
$453,495
$755,215
$878,583
$768,310
$950,416
4.00 0.32
4.00 0.32
4.00 0.32
4.00 0.32
4.00 0.32
Total Full Time Positions Total Temporary Positions
40
City of Palo Alto
Operating Budget FY 2011
City Auditor
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Number of audit reports 2. Revenue audit recoveries (SEA) 3. Number of audit recommendations (SEA)
15 84,762 17
17 217,681 28
12 150,000 25
4.5 63%
5.0 67%
4.0 60%
210% 55%
323% 45%
210% 60%
Efficienc y : 1. Ratio of audit reports per auditor 2. Percent of workplan completed
Effe c t iveness: 1. Percent of revenue audit cost recovered 2. Percent of open audit recommendations implemented
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VEN UE CHANGES Increase allocated revenue-internal Increase operating transfer for utility audit reimbursement
TOTAL REVENUE CHANGES
160,200 $160,200
Adjustments (Note 1)
NET REVENUE CHANGES
$160,200
35,000
160,200 35,000
$35,000
$195,200
(123,367)
(123,367)
$(88,367)
$71,833
3,432
3,432 (25,125)
$3,432
$(21,693)
EXPENDITURE CHANGES Salary and Benefits Increase regular salaries Personnel Benefit Cost Increase (Note 2) Total Salary and Benefits Changes
(25,125) $(25,125)
Non-Salary Increase office supplies for offsite storage Allocated Charge Increase (Note 3) Total Non-Salary Changes
TOTAL EXPENDITURE CHANGES
500 4,329 $4,829
$0
$4,329
$(20,296)
$3,432
$(16,864)
11,780
11,780
$15,212
$(5,084)
Adjustments (Note 1)
NET EXPENDITURE CHANGES
Operating Budget FY 2011
500 4,329
$(20,296)
City of Palo Alto
41
City Auditor RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY2010 budget. Note 2: Personnel benefit costs have decreased mainly due to a change in methodology of estimating benefit costs. Note 3: Allocated charges have increased due to the loan repayment to the Technology Fund.
42
City of Palo Alto
Operating Budget FY 2011
City Clerkâ&#x20AC;&#x2122;s Office
City Clerkâ&#x20AC;&#x2122;s Office Organizational Chart
1.0-CITY CLERK
Donna Grider
1.0-Assistant City Clerk
1.0-Deputy City Clerk
3.0-Admin Associate III
Fiscal Year 2011 Position Totals - All Funds:
6.75 Full-time 0.48 Hourly
0.75-Parking Examiner
City Clerk City Clerk To help administer the laws and services that directly affect the daily lives of our citizens by administering elections, records managment, and is responsible for the legislative process of all City Council meetings. The City Clerk’s Office plays a vital role in our democracy. OVERVIEW In Fiscal Year 2011, the City Clerk's Office will continue to meet the needs of the public, the City Council, and Staff in the following areas: City Council and Standing Committe support services, agenda packet process, Board and Commission recruitment, City Council events, City Council minutes, elections, conflict of interest, legislative records management, and oversight of the Administrative Hearings. The City Clerk's Office maintains information provided to the City's website regarding the Clerk's Office and the City Council.
COUNCIL PRIORITY IMPLEMENTATION The City Clerk’s Office is not directly involved in the City Council’s Top 5 Priorities. In an administrative capacity, the Clerk’s Office will work closely with City Staff to ensure the agendas, minutes, packets, and public hearing notices reflect those priorities.
FY 2009 Actuals
Administration Public Information Council Support Services Election/Conflict of Interest Legislative Records Management Administrative Citations TOTAL EXPENDITURES TOTAL REVENUES INTERNAL REVENUES EXTERNAL REVENUES
67,312 101,100 576,327 178,432 79,908 146,450 $1,149,529 $401,114 400,691 423
FY 2010 Adopted Budget
128,889 113,021 615,335 420,616 101,176 133,249 $1,512,286 $527,296 522,346 4,950
FY 2010 Adjusted Budget
136,225 112,281 617,585 495,893 101,176 133,249 $1,596,409 $527,296 522,346 4,950
FY 2011 Adopted-inConcept Budget
130,140 115,306 624,784 117,987 103,135 135,609 $1,226,961 $435,703 430,753 4,950
FY 2011 Proposed Budget
FY 2011 Budget Change
157,886 95,950 509,591 108,062 92,305 129,375 $1,093,169 $427,286 422,336 4,950
21,661 (16,331) (107,994) (387,831) (8,871) (3,874) $(503,240) $(100,010) (100,010) 0
% Chg
16% (15%) (17%) (78%) (9%) (3%) (32%) (19%) (19%) 0%
C I T Y
O F
P A L O
A L T O
DEPARTMENT S UM M A RY
Operating Budget FY 2011
City of Palo Alto
45
City Clerk
Average Time to Finalize Council Minutes 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 0
1
2
3
4
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
Number of Weeks
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials General Expense Allocated Charges
TOTAL EXPENDITURES TOTAL REVENUES Total Full Time Positions Total Temporary Positions
46
City of Palo Alto
FY 2010 Adopted Budget
FY 2011 Proposed Budget
793,446 181,880 10,590 114,610 49,003
965,569 108,771 6,535 349,439 81,972
965,569 121,971 20,434 405,716 82,719
985,244 108,771 6,535 44,439 81,972
879,996 67,571 6,535 43,439 95,628
$1,149,529
$1,512,286
$1,596,409
$1,226,961
$1,093,169
$401,114
$527,296
$527,296
$435,703
$427,286
6.75 0.67
6.75 0.48
6.75 0.48
6.75 0.48
6.75 0.48
Operating Budget FY 2011
City Clerk
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Number of City Council agendas posted with City Manager Reports to the website four days prior to council meeting 2. Number of formal public records requests 3. Number of City Council minutes finalized (SEA)
70
72
70
105 68
120 70
130 70
4 days 10 days 4 weeks
4 days 10 days 4 weeks
5 days 10 days 4 weeks
100% 99 %
100% 99%
100% 99%
Efficienc y : 1. Average time to post City Council agenda 2. Average time to address formal public records requests 3. Average time to finalize City Council minutes (SEA)
Effe c t iveness: 1. Percent of City Council agendas posted 2. Percent of formal public records requests addressed within 10 days
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VEN UE CHANGES Decrease allocated revenues-internal
TOTAL REVENUE CHANGES
(100,010) $(100,010)
(100,010) $0
$(100,010)
EXPENDITURE CHANGES Salary and Benefits Personnel Benefit Costs Decrease (Note 2) Total Salary and Benefits Changes
(85,577) $(85,577)
(85,577) $0
$(85,577)
Non-Salary Decrease advertising/publising Decrease other contract services Decrease supplies and materials Decrease travel and meetings Increase allocated charges (Note 3) Total Non-Salary Changes
(41,200) (13,200) (13,899) (1,601) 12,913 $(56,987)
Adjustments (Note 1)
(41,200) (13,200) (13,899) (1,601) 12,913 $0
$(56,987)
(360,676)
(360,676)
TOTAL EXPENDITURE CHANGES
$(142,564)
$(360,676)
$(503,240)
NET EXPENDITURE CHANGES
$(142,564)
$(360,676)
$(503,240)
Operating Budget FY 2011
City of Palo Alto
47
City Clerk RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY2010 budget. Note 2: Personnel benefit costs have decreased mainly due to a change in methodology of estimating benefit costs. Note 3: Allocated charges have increased due to the loan repayment to the Technology Fund.
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City of Palo Alto
Operating Budget FY 2011
City Council
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City of Palo Alto
Operating Budget FY 2011
City Council City Council OVERVIEW In Fiscal Year 2011, the City Council will continue to address the needs of the community through various public meetings and activities. Much of the focus will be on the City Council’s Top 5 Priorities which include: •
City Finances
•
Land Use and Transportation
•
Emergency Preparedness
•
Environmental Sustainability
•
Community Collaboration for Youth Health and Well Being
The 2011 City Council Budget is primarily comprised of City Council salaries, healthcare benefits, and general expense.
DEPARTMENT S UM M A RY FY 2009 Actuals
A L T O
City Council Operations TOTAL EXPENDITURES TOTAL REVENUES INTERNAL REVENUES EXTERNAL REVENUES
279,234 $279,234 $126,953 126,949 4
FY 2010 Adopted Budget
296,300 $296,300 $97,869 97,869 0
FY 2011 Adopted-inConcept Budget
FY 2010 Adjusted Budget
297,800 $297,800 $97,869 97,869 0
FY 2011 Proposed Budget
282,365 $282,365 $99,283 99,283 0
158,783 $158,783 $154,638 154,638 0
C I T Y
O F
P A L O
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials General Expense Allocated Charges
FY 2010 Adopted Budget
FY 2011 Budget Change
(139,017) $(139,017) $56,769 56,769 0
FY 2011 Adopted-inConcept Budget
FY 2010 Adjusted Budget
% Chg
(47%) (47%) 58% 58% 0%
FY 2011 Proposed Budget
166,702 85,282 2,710 24,295 245
192,665 53,250 2,930 47,455 0
192,665 54,750 2,930 47,455 0
194,980 37,000 2,930 47,455 0
71,145 37,000 2,930 47,455 253
TOTAL EXPENDITURES
$279,234
$296,300
$297,800
$282,365
$158,783
TOTAL REVENUES
$126,953
$97,869
$97,869
$99,283
$154,638
9.00 0.00
9.00 0.00
9.00 0.00
9.00 0.00
9.00 0.00
Total Full Time Positions Total Temporary Positions
Operating Budget FY 2011
City of Palo Alto
51
City Council
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VENUE CHANGES Increase allocated revenues-internal
NET REVENUE CHANGES
56,769 $56,769
56,769 $0
$56,769
EXPENDITURE CHANGES Salary and Benefits Personnel Benefit Costs Decrease (Note 2) Total Salary and Benefits Changes
(121,519) $(121,519)
(121,519) $0
$(121,519)
(17,750)
(17,750) 252
$252
$(17,750)
$(17,498)
TOTAL EXPENDITURE CHANGES
$(121,267)
$(17,750)
$(139,017)
NET EXPENDITURE CHANGES
$(121,267)
$(17,750)
$(139,017)
Non-Salary Adjustments (Note 1) Increase allocated charges for printing Total Non-Salary Changes
252
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY2010 budget. Note 2: Personnel benefit costs have decreased mainly due to a change in methodology of estimating benefit costs.
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City of Palo Alto
Operating Budget FY 2011
City Managerâ&#x20AC;&#x2122;s Office
City Managerâ&#x20AC;&#x2122;s Office Organizational Chart
1.0-CITY MANAGER
James Keene
1.0-Executive Asst to the City Manager 0.5-Administrative Associate I
1.0-ASSISTANT CITY MANAGER
1.0-DEPUTY CITY MANAGER (0.5 FTE allocation to Planning and Community Environment)
1.0-Administrative Assistant
1.0-Public Communication Manager 1.0-Assistant to the City Manager (Sustainability) (0.5 FTE allocation - 0.05 to Planning and Community Environment, 0.10 to Public Works, and 0.35 to Utilities)
1.0-Assistant to the City Manager 1.0-Administrator (0.5 FTE allocation to Administrative Services Department Information Technology)
1.0-Administrative Associate I
Fiscal Year 2011 Position Totals - All Funds: 10.50 Full-time (9.0 FTE General Fund only) 0.25 Hourly
City Manager City Manager To lead the City in providing exemplary service and creating partnerships with citizens in an ever changing environment, in response to City Council priorities. OVERVIEW In Fiscal Year 2011, the City Manager's Office will oversee efforts to implement the City Council's Top 5 Priorities: City Finances, Land Use and Transportation Planning, Environmental Sustainability, Emergency Preparedness, and Community Collaboration for Youth Well-Being.
C I T Y
O F
P A L O
A L T O
City Finances: During this current economic crisis, the City Manager's Office will provide leadership as the organization faces challenging budget and service reductions. Staff will assist in the development of a sustainable and balanced budget that addresses the current operating deficits while planning for longer term and more systemic service level reductions. Working with staff from Administrative Services and Public Works, the Manager's Office will support the efforts of any task force developed to address the City's unfunded infrastructure needs. In coordination with the Economic Development Manager, the Manager's Office will also work to develop an overall economic development strategy that sustains current businesses, grows the City's revenue base, and identifies key opportunities for addressing the challenges inherent in the new global economy. Land Use and Transportation Planning: The City Manager's Office will continue to lead the negotiations for the expansion of the Stanford Medical Center and will actively participate in discussions and activities around the high speed rail proposal. The Office will provide primary staff support to the Council standing committee on high speed rail and will lead the City team working on this initiative. The Manager's Office will also support the efforts being designed by Planning & Community Environment to address concerns about planning and building permitting processes. Environmental Sustainability: The Manager's Office will continue to lead the City's efforts in this area, through the efforts of the Sustainability Coordinator. Much of the year will be spent continuing existing efforts around implementation of the Climate Action Plan and the further enhancement of the Community Environmental Action Partnership (CEAP). The Sustainability Coordinator will also continue to coordinate the staff efforts to implement the Council directive to reduce potable water use in the community 20% by 2012. The Coordinator will work closely with the Economic Development Manager to identify strategies for developing Palo Alto into a green technology center. In addition, the Coordinator will work with the City Manager to develop a more strategic view of the City's efforts, thus promoting further collaborations between City departments and with the community. The Manager's Office will also continue to work with Public Works to implement the Council's direction on composting options. Emergency Preparedness: The City Manager's Office will continue to provide primary support for the newly recreated Citizen Corps Council as the various subcommittees design work plans and initiatives. Given the numerous retirements that occurred in FY 2010, the Office will work closely with Police and Fire to implement a new organizational structure for the emergency preparedness functions that enhances operational efficiencies within the City and enhances connections to community partners. The Office will also continue to play a key role in the implementation of the Wildland Fire Plan recommendations, in particular, the convening of the Midpeninsula Foothills Emergency Forum (MFEF). The Office, through the City's Communications Manager, will continue to look at mechanisms for enhancing communications during emergency situations.
Operating Budget FY 2011
City of Palo Alto
55
City Manager Community Collaboration for Youth Well-Being: The City Manager's Office will continue to provide key support to the Project Safety Net efforts, including efforts to address ongoing media coverage and ongoing facilitation of the community task force. The Office will work with the task force on the implementation of a developmental assets model to address concerns about Youth Well-Being. The Office will also support other departmental efforts throughout the City that are intended to address this Council priority. Fiscal Year 2011 will be a year of continued change for the City organization as retirements in key management positions and other organizational shifts occur. The Manager's Office will lead these efforts with a continued focus on increased transparency and accountability across the organization, leading to enhanced performance and value. The City Manager will also focus on strengthening the City's communications efforts, both with the organization and the broader community, through a variety of tools and initiatives.
COUNCIL PRIORITY IMPLEMENTATION In Fiscal Year 2011, the City Manager's Office will support implementation of the City Council's Top 5 Priorities as follows:
City Finances •
Lead organization as the City faces challenging budget and service reductions
•
Develop a sustainable and balanced budget that addresses the current operating deficits while planning for longer term and more systemic service level reductions
•
In coordination with Public Works and Administrative Services, support the work of any task force developed to address the City's unfunded infrastructure needs
•
In coordination with Economic Development Manager, develop comprehensive economic development strategy for the City
Land Use and Transportation Planning •
Lead negotiations for expansion of Stanford Medical Center
•
Support the Council standing committee on high speed rail and other activities and initiatives related to this proposal
•
Support Planning & Community Environment's efforts to evaluate and enhance the planning and building permitting processes
Environmental Sustainability •
Finalize the development of a comprehensive strategy for the City's sustainability efforts
•
Continue implementation work on Climate Action Plan
•
Coordinate the staff work to implement the Council's directive to reduce potable water usage 20% by 2012
•
In coordination with the City's Economic Development Manager, identify strategies for further developing Palo Alto as a green technology center
•
Support efforts in Public Works to implement Council direction on composting options
Emergency Preparedness •
56
Lead the reorganization of emergency preparedness functions and staffing throughout the City in order to enhance communications and operations and to create efficiencies
City of Palo Alto
Operating Budget FY 2011
City Manager •
Provide the primary staff support to the Citizen Corps Council
•
Lead the initiation of the Midpeninsula Foothills Emergency Forum and continue to coordinate the implementation of other recommendations stemming from the Wildland Fire Management Plan
Community Collaboration for Youth Well-Being •
Provide key staff support for Project Safety Net efforts, including facilitation of the community task force and response to ongoing media coverage
•
Support the implementation of a developmental assets model for addressing issues related to youth wellbeing
DEPARTMENT SUMMARY FY 2009 Actuals
Admin and City Management Public Communication Sustainability TOTAL EXPENDITURES TOTAL REVENUES INTERNAL REVENUES EXTERNAL REVENUES
1,607,952 174,094 168,485 $1,950,531 $595,013 593,674 1,339
FY 2010 Adopted Budget
2,066,677 209,335 121,198 $2,397,210 $471,091 471,091 0
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
2,135,166 191,335 111,698 $2,438,199 $471,091 471,091 0
2,060,463 213,116 123,638 $2,397,217 $482,589 482,589 0
FY 2011 Proposed Budget
FY 2011 Budget Change
1,786,066 202,521 167,077 $2,155,664 $406,532 406,532 0
(349,100) 11,186 55,379 $(282,535) $(64,559) (64,559) 0
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges Operating Transfers Out
TOTAL EXPENDITURES TOTAL REVENUES Total Full Time Positions Total Temporary Positions
Operating Budget FY 2011
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
% Chg
(16%) 6% 50% (12%) (14%) (14%) 0%
FY 2011 Proposed Budget
1,488,673 369,769 15,822 0 47,661 85 26,482 2,039
1,951,401 272,285 11,113 300 58,408 500 101,164 2,039
1,951,401 299,710 13,613 300 68,370 500 102,266 2,039
1,951,408 272,285 11,113 300 58,408 500 101,164 2,039
1,781,389 211,685 11,613 300 46,081 500 102,057 2,039
$1,950,531
$2,397,210
$2,438,199
$2,397,217
$2,155,664
$595,013
$471,091
$471,091
$482,589
$406,532
11.50 0.25
10.00 1.03
10.00 1.03
10.00 1.03
9.00 0.25
City of Palo Alto
57
City Manager
B ENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Number of City Manager reports (CMRs) issued (SEA)
385
372
372
76%
76%
76%
Effe c t iveness: 1. Percent rating public information services as good or excellent (SEA)
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VENUE CHANGES Decrease allocated revenue - internal
TOTAL REVENUE CHANGES
(64,559)
0
(64,559)
$(64,559)
$0
$(64,559)
EXPENDITURE CHANGES Salary and Benefits Eliminate 1.0 FTE Administrative Associate II position Reclassify and transfer 0.50 FTE Assistant to City Manager-Sustainability to PCE .05 FTE, PWD .10 FTE, and Utilities .35 FTE Add .50 FTE Administrator (shared .50 FTE with Administrative Services Department - Information Technology) Decrease temporary salaries Personnel Benefits Costs Increase (Note 2) Total Salary and Benefits Changes
(96,712)
(96,712)
(89,303)
(89,303)
58,273
58,273
(102,938) 33,270
(102,938) 33,270
$(197,410)
Adjustments (Note 1)
NET SALARY AND BENEFITS CHANGES
$(197,410)
$0
$(197,410)
27,400
27,400
$27,400
$(170,010)
Non-Salary Decrease instruction/training and travel/meetings Decrease advertising and publishing Decrease other contract services and program consultants Decrease grants and subsidies Decrease supplies and materials Allocated Charge decrease (Note 3) Total Non-Salary
TOTAL EXPENDITURE CHANGES
(34,427) (18,000) (13,000) (5,000) (2,000) (213) $(72,640) $(270,050)
Adjustments (Note 1)
NET EXPENDITURE CHANGES
58
City of Palo Alto
$(270,050)
(34,427) (18,000) (13,000) (5,000) (2,000) (213) $0
$(72,640)
$0
$(242,650)
(39,885)
(39,885)
$(12,485)
$(282,535)
Operating Budget FY 2011
City Manager RESOURCE LEVEL NOTES Note 1: Adjustments include one-time appropriation changes from the prior year that did not carry forward from the FY2010 budget. Note 2: Personnel benefit costs have increased mainly due to reductions in proposed staffing levels and a change in methodology of estimating benefit costs. Note 3: Allocated charges have decreased mainly due to a change in methodology of calculating Information Technology costs and the loan repayment to the Technology Fund.
Operating Budget FY 2011
City of Palo Alto
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City of Palo Alto
Operating Budget FY 2011
Administrative Services Department
Administrative Services Department Organizational Chart 1.0 ADMINISTRATIVE SERVICES DIRECTOR
Lalo Perez ADMINISTRATION 1.0-Administrative Assistant 0.5-Sr Financial Analyst 2.0-Sr Business Analyst 1.0-Business Analyst
BUDGET 1.0-Budget Manager 1.0-Graphic Designer 4.0-Sr Financial Analyst
REAL ESTATE 1.0-Real Property Manager 1.0-Sr Financial Analyst
1.0 ASSISTANT DIRECTOR
1.0 CHIEF INFORMATION OFFICER
1.0 DEPUTY DIRECTOR
David Ramberg
Glenn Loo
Joe Saccio
ACCOUNTING 1.0-Accounting Manager
GENERAL LEDGER 1.0-Senior Accountant 1.0-Staff Accountant 1.0-Lead Account Specialist
ENTERPRISE FUND 1.0-Senior Accountant 1.0-Staff Accountant 2.0-Account Specialist
INVESTMENT & DEBT 1.0-Admin Associate II
PROJECT MANAGEMENTT, APPLICATIONS 1.0-IT Manager 8.0-Sr Technologist
CLIENT SERVICES
1.0-Senior Accountant 1.0-Lead Account Specialist 2.0-Account Specialist
1.0-IT Manager 3.0-Sr Technologist 2.0-Technologist 4.0-Desktop Technician 1.0-Business Analyst
PAYROLL
OPERATIONS
ACCOUNTS PAYABLE
1.0-Senior Accountant 1.0-Staff Accountant 2.0-Payroll Analyst
1.5-Sr Financial Analyst
INFORMATION TECHNOLOGY
1.0-IT Manager 3.0-Sr Technologist 1.0-Technologist 1.0-Desktop Technician
REVENUE COLLECTIONS 1.0-Sr Financial Analyst 2.0-Lead Acctg Specialist 5.5-Accounting Specialist
STORES WAREHOUSE 1.0-Warehouse Supervisor 1.0-Storekeeper, Lead 3.0-Storekeeper
RISK MANAGEMENT 1.0-Energy Risk Manager
PURCHASING & CONTRACTS 1.0-Manager, Purch/Contr Admin 3.0-Contract Administrator 1.0-Lead Account Specialist 1.0-Account Specialist 3.0-Buyer
PRINTING & MAIL SERVICES 1.0-Offset Equipment Operator 1.0-Mail Services Specialist
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City of Palo Alto
Fiscal Year 2011 Position Totals - All Funds: 86.50 Full-time 4.73 Hourly
Operating Budget FY 2011
Administrative Services Administrative Services To provide proactive administrative and technical support to City departments and decision makers, and to safeguard and facilitate the optimal use of City resources. OVERVIEW The Department broadly consists of three major functions: finance, information technology and real estate. ASD has identified over 30 active programs that it is supporting throughout the City. For Fiscal Year 2011 a description of the major services ASD will provide is detailed below. Financial Analysis
In Fiscal Year 2011, ASD staff will continue to provide analytical, organizational, and administrative support to a wide array of projects. These include, for example: monitoring major tax revenues and expenditures to ensure a balanced General Fund Budget; exploring the possibility of an early transition of the Palo Alto Airport from County to City control; supporting discussions on the expansion of Stanford University's hospital project; issuing debt for library and community facilities, and analyzing funding sources for infrastructure improvements. Other future activities include: supporting upcoming labor negotiations; participating in the City's Energy Risk Management Program; and preparing updates to the City's Long Range Financial Forecast. Finally, in coordination with the City Manager's Office, ASD will assist in closing pending budget gaps by identifying and analyzing solutions to ensure a balanced budget.
C I T Y
O F
P A L O
A L T O
Resource Management
ASD is responsible for recording, monitoring, and protecting City assets. For example, the budgeting function allows for the planning and control of City revenues and expenditures. Accounting staff record and report on the use of City resources while treasury personnel collect and invest excess cash. In short, ASD collects, monitors, invests, protects, and projects City revenue streams. These essential duties underpin the use of funds to provide City services and programs. Financial Reporting
Staff will continue to provide essential financial management reports. These include periodic revenue and expenditure comparisons to budget, midyear budget adjustment recommendations, capital expenditure reports, and the Comprehensive Annual Financial Report (CAFR). A major report is the Long Range Financial Forecast, which alerts Council, the public and City management to potential financial issues. Efforts to refine SAP financial reports and SAP utility billing module and customer relationship management module are continuing. ASD risk management staff provides the Utilities Advisory Commission and Council with independent quarterly reports on the credit worthiness of wholesale energy counterparties and utility financial risks. Staff continues to improve delivery of financial reporting through green practices such as limiting printed copies of the CAFRs and reducing the mailing of pay check stubs via alternative online notification. Staff also supports the Palo Alto/Mountain View Reclaimed Water Pipeline Project by analyzing and reconciling expenditures, grant reimbursements, audit requirements and financial reporting in the CAFR Single Audit Section. Business Process Re-engineering
The Department will continue to concentrate resources on SAP refinement and ongoing upgrades. Planned enhancements include simplified time tracking, project work-order management, and improved system reporting capabilities.
Operating Budget FY 2011
City of Palo Alto
63
Administrative Services Infrastructure Management Plan
In concert with the Public Works Department, ASD will continue to support efforts to rehabilitate the City's infrastructure. Maintaining and enhancing funding for the replacement and reconditioning of the City's existing infrastructure is a high priority for the City. The current level of funding at approximately $10 million per year is inadequate to deal with the General Fund's infrastructure backlog and future maintenance and replacement needs. With a declining Infrastructure Reserve, identifying resources is both necessary and challenging. Community outreach to find a funding plan will be a primary focus. Property Management and Acquisition
Real Estate staff will continue to provide a wide array of unique services to City departments. Staff will continue working with Foothill College to explore development of a City-owned 8-acre site at the Cubberley Community Center for a state-of-the-art community college. Other projects include: continuing to investigate how the City might run the Palo Alto Airport; continuing efforts to work with wireless carriers to lease city owned land; working with the Palo Alto History Museum Board to facilitate their signing of the lease to begin the remodel of the former Roth Building; completing the sale and transfer of development rights for the College Terrace Library, Roth building and Sea Scout building; working with the VTA on the Highway 101 Auxiliary Lane Project easement issues and working with Community Services to release an RFP for management of the Golf Course and a new food service provider. While the use of Municipal Service Center space for a car dealership is on indefinite hold, staff will continue exploring other revenue generating options. Purchasing and Contract Administration
Purchasing and Contract Administration Division will continue to support the Environmental Sustainability priority. This will occur through emphasizing sustainability in City purchasing decisions and in facilitating the solicitation and award process of Green Products and Services. The Division will continue to centrally manage the solicitation and award contract process (which total $249 million over the last two fiscal years) and take a leadership role in vendor selection, performance and cost savings from contracted services. In addition, the Division will collaborate with other City departments through process improvements to streamline procurement activities. Finally, the Division will continue to be part of on-going Emergency Preparedness through providing purchasing and contracting support to ensure that goods and services required during an emergency are available to support operations. Cable Franchising
ASD personnel are responsible for cable and video franchise administration and enforcement for a Joint Powers Authority (JPA), which includes the cities of Palo Alto, East Palo Alto and Menlo Park, the town of Atherton, and portions of San Mateo and Santa Clara counties. ASD will continue to oversee franchise compliance; monitor complaints from customers; manage public, education, and government (PEG) channel resources; collect franchise fees and distribute them to JPA members. The JPA has an agreement with the Media Center for the operation and management of the JPA's PEG access channels and facilities, which will expire July 1, 2011. ASD will negotiate a new agreement prior to the expiration date. In addition, ASD administers an Institutional Network (I-Net) of fiber optic cable connecting 70 schools, libraries, public buildings, and community centers in the JPA service area with the capability of delivering data, video, and voice communications. Comcast's current franchise I-Net obligations expire in July 2010. To continue the provision of these services, ASD must renegotiate the I-Net agreement between the JPA and Comcast.
64
City of Palo Alto
Operating Budget FY 2011
Administrative Services PROGRAM UPDATE The Administrative Services Department has accomplished the following during Fiscal Year 2010: •
Presented to Council a 2010 Midyear budget that closes a $6.2 million budget gap
•
Updated the 2009-2019 Long Range Financial Forecast (LRFF) and presented the 2010-2020 LRFF to the Finance Committee and Council. The LRFF identifies General Fund revenue and expenditure trends so that appropriate budget adjustments can be made proactively. In this year's report, the continuing downturn in the economy has prompted the City to deal with a significant and long-term structural deficit. In conjunction with the City Council, the public, the City Manager's Office and other City departments, budget balancing strategies have been initiated for Fiscal Years 2010 and 2011
•
Participated in the continuing evaluation of the Stanford Hospital Expansion
•
Assisted in labor negotiations and discussions with SEIU, Police, Fire and the Management group
•
Supported implementation of a major upgrade to the SAP financial system, which includes a utility billing system, customer relationship management, and other system improvements. Completed improvements include outstanding audit recommendations such as Employee Self-Service and Management SelfService to allow online changes to personnel information
•
Evaluated alternatives of a new Business License Tax and presented a report to the Finance Committee and Council in preparation for the November 2009 ballot measure
•
Supported evaluation of discussions related to the build out of an ultra high-speed broadband network, including Federal Stimulus Funding application consideration
•
Assisted in the negotiations to bring a car dealership to a city-owned freeway frontage site
•
Assisted in the Public Safety Building site purchase option negotiations
•
Led a citizen volunteer committee in upgrading the City’s website
Many of the projects and analysis cited above are ongoing and will continue into Fiscal Year 2011 and beyond. For example, ASD will: •
Continue to support implementation of the upgrade to the SAP financial system
•
Present to the Finance Committee the Palo Alto Airport Business Plan in order to review the consideration to take over the airport from the County prior to 2017
•
Continue to explore efficiencies and revenue generating options to close future budget gaps
•
Implement solutions to continue the City’s website upgrades
•
Complete an update to the City’s Information Technology Master Plan
•
Continue evaluating financial impacts of the Stanford Hospital Expansion
COUNCIL PRIORITY IMPLEMENTATION For Fiscal Year 2011, the Administrative Services Department will support implementation of the City Council's Top 5 Priorities as follows: City Finances
•
Monitor revenue sources and make recommendations for necessary adjustments to expenditure levels in order to maintain a balanced General Fund budget. Provide contracting support for the Infrastructure Management Plan through a comprehensive contract planning and execution process
Operating Budget FY 2011
City of Palo Alto
65
Administrative Services •
Promote expansion of the City's revenue base through negotiations with Stanford on development projects, and with auto dealers to retain them within the City
•
Develop a financing plan for key infrastructure including the Public Safety building, Los Altos Treatment Plant site conversion, and options for the Cubberley site
Emergency Preparedness
•
Provide purchasing and contracting support to ensure that goods and services required during an emergency are available to support operations
Environmental Sustainability
•
Implement green procurement practices following the City's adopted sustainability purchasing policy
•
Extend the use of direct deposit and online notification in lieu of mailed checks and paystubs
DEPARTMENT SUMMARY FY 2009 Actuals
Administration Accounting Purchasing Real Estate Treasury Budget Information Technology TOTAL EXPENDITURES TOTAL REVENUES INTERNAL REVENUES EXTERNAL REVENUES
66
City of Palo Alto
473,203 2,015,802 1,345,285 578,835 1,547,215 1,033,498 0 $6,993,838 $3,933,109 3,857,302 75,807
FY 2010 Adopted Budget
649,473 1,757,444 1,276,376 617,174 1,577,305 883,525 0 $6,761,297 $3,134,341 3,122,041 12,300
FY 2010 Adjusted Budget
619,675 1,752,111 1,275,776 634,141 1,548,463 883,225 0 $6,713,391 $3,134,341 3,122,041 12,300
FY 2011 Adopted-inConcept Budget
654,153 1,795,479 1,303,321 628,414 1,605,241 902,853 0 $6,889,461 $3,265,034 3,252,734 12,300
FY 2011 Proposed Budget
FY 2011 Budget Change
853,266 1,594,610 1,110,972 580,597 1,379,277 773,828 66,119 $6,358,669 $2,812,373 2,800,073 12,300
233,591 (157,501) (164,804) (53,544) (169,186) (109,397) 66,119 $(354,722) $(321,968) (321,968) 0
% Chg
38% (9%) (13%) (8%) (11%) (12%) 0% (5%) (10%) (10%) 0%
Operating Budget FY 2011
Administrative Services
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges
FY 2010 Adopted Budget
FY 2011 Adopted-inConcept Budget
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
6,327,271 377,144 35,139 2,485 93,493 11,153 147,153
5,776,796 292,698 63,444 3,700 140,063 11,153 473,443
5,776,796 231,992 57,244 5,100 151,023 11,153 480,083
5,904,960 292,698 63,444 3,700 140,063 11,153 473,443
5,096,319 277,556 57,694 3,100 186,263 11,153 726,584
TOTAL EXPENDITURES
$6,993,838
$6,761,297
$6,713,391
$6,889,461
$6,358,669
TOTAL REVENUES
$3,933,109
$3,134,341
$3,134,341
$3,265,034
$2,812,373
49.15 1.40
41.95 2.25
41.95 2.25
41.95 2.25
37.49 2.67
Total Full Time Positions Total Temporary Positions
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Number of accounts payable checks issued (SEA) 2. Number of purchasing documents processed (SEA) 3. Number of real property acquisitions and conveyances (fees, easements, BMR, permits, leases and document transfer tax) 4. Cash and investments (in millions), excluding bond proceeds (SEA)
14,436 2,577
14,500 2,575
14,500 2,575
190
200
200
$353.4
$330.0
$342.0
$26 $225
$27 $227
$27 $229
$1,200
$1,200
$1,260
83%
80%
80%
83%
80%
80%
30
45
45
+1.50%
+2.50%
+2.14%
Efficienc y : 1. Average cost to issue an accounts payable check (estimated) 2. Average cost to process a purchase order/contract (estimated) 3. Average cost to complete each real property acquisition and conveyance (estimated)
Effe c t iveness: 1. Percent of invoices paid within 30 days (estimated) (SEA) 2. Percent of purchases/contracts completed within established timeframes (estimated) 3. Average time (in days) to complete each real property acquisition and conveyance 4. Rate of return on investments compared to the annual average yield on a three-year Treasury note
Operating Budget FY 2011
City of Palo Alto
67
Administrative Services
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VENUE CHANGES Decrease allocated revenues-internal
TOTAL REVENUE CHANGES
(321,969) $(321,969)
(321,969) $0
$(321,969)
EXPENDITURE CHANGES Salary and Benefits Elimination of .96 FTE Administrative Associate Elimination of 1.00 FTE Accounting Specialist Transfer of .50 FTE Warehouse Supervisor to Utilities Transfer of .50 FTE Senior Financial Analyst in Treasury to Utilities Transfer of .60 FTE Contract Administrator in Purchasing to CIP Transfer of .60 FTE Senior Financial Analyst in Budget to CIP Reduce temporary salaries Reduce overtime Personnel Benefit Costs Decrease (Note 2) Total Salary and Benefits Changes
(99,500) (90,527) (52,857) (74,807) (89,769) (89,769) (24,572) (10,000) (173,569) $(705,370)
Adjustments (Note 1)
NET SALARY AND BENEFITS CHANGES
$(705,370)
(99,500) (90,527) (52,857) (74,807) (89,769) (89,769) (24,572) (10,000) (173,569) $0
$(705,370)
24,897
24,897
$24,897
$(680,473)
Non-Salary Decrease instruction/training and travel/meetings Decrease contract services Increase other contract services for banking service fees Decrease program, computer maintenance and equipment, facilities Decrease audit, financial, and contract agency personnel Allocated Charge Increase (Note 3)
(6,900) (9,592) 50,000 (4,000) (4,800) 246,501
Total Non-Salary
$271,209
TOTAL EXPENDITURE CHANGES
$271,209
Adjustments (Note 1)
TOTAL EXPENDITURE CHANGES
$(434,161)
(6,900) (9,592) 50,000 (4,000) (4,800) 246,501 $0
$271,209
$0
$271,209
54,540
54,540
$79,437
$(354,724)
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time appropriation changes from the prior year that did not carry forward from the FY2010 budget. Note 2: Personnel benefit costs have decreased mainly due to reductions in proposed staffing levels and a change in methodology of estimating benefit costs. Note 3: Allocated charges have increased mainly due to a change in methodology of calculating Information Technology costs and the loan repayment to the Technology Fund.
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City of Palo Alto
Operating Budget FY 2011
Administrative Services SERVICE LEVEL CHANGES Elimination of 1.0 FTE Accounting Specialist in Revenue Collections may result in longer waits for customers at the Lobby counter for paying utility bills, parking citations and building permit fees. Elimination of 1.0 FTE Administrative Associate reduces administrative support, from 3.0 FTE to 2.0 FTE, throughout the department.
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City of Palo Alto
Operating Budget FY 2011
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City of Palo Alto
Operating Budget FY 2011
Community Services Department
Community Community Services Services Department Department Organizational Chart Organizational Chart
1.0 COMMUNITY SERVICES DIRECTOR
Greg Betts HUMAN SERVICES
ADMINISTRATION
1.0-Sr Supervisor, Recreation Program 1.0-Management Assistant 0.5-Coordinator, Recreation Program
RECREATION AND CUBBERLEY
1.0-Administrative Assistant 1.0-Senior Administrator
ARTS & SCIENCES
OPEN SPACE, PARKS & GOLF
ADMINISTRATION
ADMINISTRATION
ADMINISTRATION
1.0-Division Mgr, Recreation & Golf 0.75-Admin Associate III
1.0- Division Mgr, Arts & Sciences
1.0-Division Mgr, Open Space & Parks 1.0-Program Assistant II
RECREATION
1.0- Manager, Arts 4.25-Producer Arts 1.0-Program Assistant I 1.0- Program Assistant II 0.5-Volunteer Coordinator
2.0-Supervisor, Open Space 5.0-Park Ranger
CHILDRENâ&#x20AC;&#x2122;S & COMMUNITY THEATRE
1.0-Park Superintendent
2.0-Supervisor, Recreation Programs 4.0-Coordinator, Recreation Programs 1.0-Building Service Person 175-Program Assistant I
CUBBERLEY CENTER 1.0-Sr Supervisor, Program Manager 2.0-Program Assistant I 2.0-Building Serviceperson-Lead 1.0-Building Serviceperson 1.0-Program Assistant II 0.75- Prod Arts/Science Program
ART CENTER
1.0- Manager, Arts 1.0-Theatre Specialist 1.0-Program Assistant I 3.0-Producer Arts
YOUTH SCIENCES & INTERPRETIVE 1.0- Supervisor, Jr Museum 4.0- Producer Arts/Science Program 1.0-Program Assistant I 2.25 - JMZ Educator
OPEN SPACE PARKS ADMINISTRATION CITY PARKS & FACILITIES 2.0-Inspector, Field Services 2.0-Sprinkler System Repair Person 1.0-Parks Crew-Lead 1.0-Parks Maintenance Person
ATHLETIC FIELD MAINTENANCE PROGRAM 1.0-Supervisor, Parks 1.0-Parks Crew-Lead 2.0-Sprinkler System Repair Person 5.0-Park Maintenance Person 1.0-Park Maintenance Lead
CAPITAL PROJECTS 1.0 - Program Assistant 1
GOLF Fiscal Year 2011 Position Totals:
74.75 Full-time 54.96 Hourly
*Note: CSD Org Chart reflects a proposed restructure.
1.0-Superintendent, Golf Course
Community Services Community Services To engage individuals and families in creating a strong and healthy community through parks, recreation, social services, arts, and sciences. OVERVIEW In Fiscal Year 2011, the Community Services Department (CSD) will provide the Palo Alto community with the services and programs summarized below both directly and through partnerships with community organizations. Arts and Sciences
The Arts and Sciences Division will provide visual and performing arts, music and dance, and science programs to adults and youth, including a focus on family programs.
C I T Y
O F
P A L O
A L T O
The division administers and manages the Art Center, Children's Theatre, Community Theatre, Junior Museum and Zoo, interpretive programs, the Public Art Commission, Civic Center lobby exhibitions, and Cubberley Artist Studios providing affordably priced studio space to local artists who also donate works to Palo Alto's Art in Public Places program. Under new leadership both at the division and program level, a focus will be to continue to explore and create cross-programming between the division and community, and to continue the success of existing programs. Past cross-programming and collaborations include the celebration of the Day of the Dead and a theater show production of Fahrenheit 451. The Day of the Dead celebration consisted of contributions from the Art Center, Children's Theatre, Junior Museum and Zoo, Library Department, and Mexican Museum in San Francisco. Fahrenheit 451 was produced by the Children's Theatre with support funding from a grant from the National Endowment of the Arts and Friends of Children's Theatre. It also tied in with the reading curriculum of several local schools. Through public/non-profit partnerships with the Palo Alto Art Center Foundation, Friends of the Palo Alto Children's Theatre, and Friends of the Palo Alto Junior Museum and Zoo, the division will continue to work with the community to develop support and advocate for sustaining programs and facilities. The Junior Museum and Zoo will have a new Bobcat Ridge habitat through support from Friends of the Junior Museum and Zoo; the Art Center Foundation continues raising funds for a capital building campaign; and the Friends of Children's Theatre will increase their support for theatre education. The division is addressing budget challenges with the proposed elimination of two positions associated with programming and customer service. In addition, the division is working towards increased cost recovery through program fees, support funding, and grants. Open Space, Parks and Golf Maintenance
The Open Space, Parks and Golf Maintenance Division is responsible for the conservation and maintenance of more than 4,000 acres of urban and open space parkland. Open Space services will provide ecology and natural history interpretive programs for youth and adults through campfires, special interest nature programs, and guided walks. Ranger staff will continue to provide protection of open space areas and safety to park visitors through patrols, and response to emergency calls for service. The Foothill Fire Management Plan was adopted in October 2009 and staff is currently seeking grant funding for implementation of the plan.
Operating Budget FY 2011
City of Palo Alto
73
Community Services Projects will continue to be implemented to rebuild aging infrastructure by improving tread and drainage problems on trails in the foothills, enhancing picnic areas and camp sites, and restoring the height and width of a Baylands emergency access levee. Staff will continue to partner with volunteer organizations such as Save The Bay, Friends of Foothills Park, and Acterra to restore degraded habitat with native plants. Staff will also collaborate with the Friends of the Palo Alto Parks to plant colorful flower beds, install new park amenities, and develop designs for the Magical Bridge playground, a universal access playground at Mitchell Park. Staff will use non-toxic methods such as timed mowing and sheet mulching to control non-native weeds and mechanical trapping of rodents. Staff also continues to work with Acterra and Save The Bay in propagating thousands of native plants in on-site nurseries which are used in creek and habitat restoration projects. Native planting along the reach of a recreated riparian corridor running through the Pearson-Arastradero Preserve will conclude in 2011. This five year project will re-establish a continuous stretch of trees and native plants for the enhancement of wildlife habitat. In September 2010, Save The Bay will be adding a greenhouse to the native plant nursery at the Baylands. They will also rebuild an existing nursery work shed. The greenhouse and shed, which are completely funded by Save The Bay, will help improve the Baylands restoration efforts. Parks Services is collaborating with neighborhood associations, friend groups, and tree enthusiasts on multiple infrastructure park projects scheduled for Greer Park, Mitchell Park Community Center and Library, Mayfield Park, Seale Park, El Camino Park and median landscaping. These projects include the expansion of Greer Park (Phase IV) with renovations to the playground and irrigation systems and landscape improvements for a newly constructed library and community center including a green roof. Additional projects include pathway and irrigation improvements at Mayfield Park, the provision of restrooms at Seale Park, the construction of synthetic turf sports fields at El Camino Park in conjunction with the installation of an emergency well system by our Utilities Department, and median landscaping on San Antonio Road. Park Services will continue to maintain Palo Alto Unified School District middle school and elementary school athletic fields. However, the focus will shift to continued maintenance instead of rehabilitation and infrastructure of the fields. Service delivery of park maintenance will change with the proposed elimination of five positions. The division plans to further contract out maintenance as a cost savings measure to address budget challenges. However, the division will regularly inspect contracted maintenance to ensure safety and quality standards are met. Golf Maintenance Services oversees maintenance of our 18 hole championship length golf course. The 54-yearold, 176-acre facility is preparing to undergo some physical changes this year as we work with the San Francisquito Creek Joint Powers Authority, US Fish and Wildlife Service, and the Palo Alto Baylands Preserve staff to incorporate the San Francisquito Creek Flood Protection and Ecosystem Restoration Project. This will involve a proposed removal or relocation of the levee that currently separates San Francisquito Creek from the Faber Tract and Golf Course. These changes may lead to modifications to several golf holes. Golf Course operations will focus on exploring the advantages and disadvantages of contracted versus public maintenance. Contract maintenance proposals will be evaluated and may result in the elimination of seven positions. Alternative maintenance models are being explored in an effort to help meet budget challenges facing the Cityâ&#x20AC;&#x2122;s General Fund. Cubberley Community Center and Human Services
The Cubberley Community Center and Human Services Division will need to reorganize with the proposed elimination of two and half staff from the division including the division manager. Community Services is in the process of examining what level of services can be sustained. With guidance from City Council, the Human Relations Commission, and residents, staff will reassess the level of Human Services provided by the
74
City of Palo Alto
Operating Budget FY 2011
Community Services Community Services Department in the coming year. The Cubberley Community Center is a 35-acre facility that hosts community artists, dance groups, childcare centers, Foothill College, and many non-profit organizations, such as Cardiac Therapy and Adolescent Counseling Services. The thriving center will continue to provide a full array of community facilities including fields, tennis courts, a track, gymnasiums, a theater and classrooms, all of which are available for public rental. The Human Relations Commission and the remaining Human Services staff will continue to provide assistance to people in need by coordinating approximately $1 million in grants to non-profit organizations through the Human Services Resource Allocation Process (HSRAP) and by providing comprehensive information about resources for the entire community through the Family Resources Program. Approximately 500 calls annually are received by Family Resources which also coordinates an annual Family Ambassador Program where 25 community members participate in 25 hours of training over four months to learn about the variety of family resources available in our community so they can support their family, friends and neighbors in times of need, and spread the word about the wide array of programs available. Through a public/non-profit partnership with the Family Resources Foundation, Human Services will continue to work with limited resources to develop support and advocacy for Family Resources, a program of civic engagement that disseminates resource information and strengthens community connections. Staff will work with a number of community groups to identify community needs that may be addressed through Human Services. These groups include the Human Relations Commission, the Child Care Advisory Committee, and the Extended School Child Care Directors Group. The division continues to participate in discussions with Foothill College to consider a plan that would design and build a new Foothill Community College branch at Cubberley Community Center on City property, while maintaining the community center venues and functions. Recreation Services
Recreation Services will provide a diverse range of programs and activities for the community. During the year, staff will continue to focus on creating a culture of fitness and healthy living in Palo Alto by encouraging the involvement of individuals and families in creative and fun activities. The division will adjust programs and services to reflect changing community demographics, including a sharp rise in the number of adults over the age of 55. With the budget challenges, staff will continue to work diligently to recover additional program costs through fees, partnerships, grants, and donations. Recreation Services will continue to focus efforts on youth and teen programming as it relates to the Youth Master Plan. The division will pursue collaborative programming efforts with other non-profit agencies serving youth to better target quality services for this age group. Coordinating a multi-agency task force called Project Safety Net, working on teen suicide prevention and the social and emotional health of youth and teens, will continue to be a focus. Strategies such as gatekeeper programs, community education, teen resiliency programs and the adoption of the '41 Developmental Assets' are all part of a set of strategies designed to improve our community "safety net" for teens. The division will emphasize customer service through convenient registration processes, professionalism and knowledgeable staff, while efficiently marketing new and existing programs and classes. Recreation will measure customer satisfaction through surveys and other evaluation methods. The Recreation Division will continue to encourage program participants to use the Internet-based registration system to facilitate a more efficient registration process. This will be beneficial to both registrant and staff as two front desk positions within recreation are proposed for elimination.
Operating Budget FY 2011
City of Palo Alto
75
Community Services The construction of a new Mitchell Park Community Center and Library presents an exciting opportunity for residents and will continue to be a focus for staff as this project develops. The Mitchell Park Community Center and Library will close in June 2010 for approximately two years as the new center is built. The design of the new center continues to be an excellent example of civic engagement contributions towards the form and functionality of the new center. Teens, parents, library and community center users, City staff, and elected officials have provided input throughout the design process. The programs provided at the soon to be demolished Mitchell Park Community Center will be moved to Cubberley and the Lucie Stern Community Centers including the teen center known as "The Drop," which will be housed at Cubberley. The temporary teen center will be close to sports playing fields and tennis courts, and the indoor space includes two spacious rooms for activities and games. The teen center will be open every afternoon when school is in session.
PROGRAM UPDATE In Fiscal Year 2010, the Community Services Department implemented the following programs: •
Worked closely with Stanford University and the Senior Games Organizing Committee to produce the biennial National Senior Games event. The event included medal competition in 18 sports, plus tournaments and contests in seven (7) demonstration sports. The event drew 12,750 athletes along with thousands of additional visitors to Palo Alto
•
Within Community Theatre and Children's Theatre, introduced new classes such as tap, ballet, and jazz dance, voice and diction, and playwriting
•
Produced multiple sold out performances at Children's Theatre including "If You Give a Mouse a Cookie," "Nutcracker," "Night of the Living Dead," and "Secret Life of Girls"
•
Recreation continued to focus on healthy living for all ages and creating a culture of fitness in Palo Alto continues to drive program and event planning
•
Support for green alternatives, particularly as it relates to alternative transportation such as walking and biking. A Citywide bike share program has been implemented using bicycles donated to the City from the National Senior Games
•
A capital improvement of Lytton Plaza, completed with joint funding from the City and Friends of Lytton Plaza Park. The renovations include new outdoor seating, landscaping, lighting, trees, and a water feature
•
Bobcat Ridge, a new habitat at the Junior Museum & Zoo, planned for completion in summer 2010, along with resurfacing of zoo pathways
•
The conversion of the "football field" at Cubberley to synthetic turf to allow for increased play to meet the growing public need for playing fields availability
•
The completion of Palo Alto Unified School District Athletic field renovation projects at Nixon and Addison Elementary Schools, including irrigation design and replacement
COUNCIL PRIORITY IMPLEMENTATION In Fiscal Year 2011, the Community Services Department will support the implementation of the City Council's Top Priorities as follows:
76
City of Palo Alto
Operating Budget FY 2011
Community Services City Finances
•
With the significant structural budget challenges facing the City in Fiscal Year 2011, the Community Services Department will increase fees for classes, camps and activities in an effort to move towards full cost recovery where possible. The department will also work towards expanding cost recovery beyond classes and camps in areas such as admission to exhibits and theater performances. In addition, the department will also explore or implement new models of service delivery in several areas such as park maintenance, custodial services, and golf course maintenance to lower costs while maintaining quality service
•
Community Services is actively seeking private and grant funding for the replacement and renovation of aging infrastructure, the enhancement of park, community and art center facilities, and program support
•
The Open Space Division will continue to implement trail restoration recommendations from the Arastradero Trail Master Plan. A channeled creek that runs through the Arastradero Gateway property will be day-lighted and restored using funds from the State Riverine and Riparian Habitat grant program and donated plant materials from the Acterra native plant nursery. Grant revenues received for infrastructure funding may help relieve the need for City funding
Emergency Preparedness
•
The Cubberley Community Center is a planned emergency response center. The facility will be made ready as a shelter at all times to respond to any disaster or emergency
•
Open Space rangers have worked closely with the Fire Department on a Fire Management Plan. Rangers are trained in fire fighting and emergency response to provide security and safety for park visitors and open space natural resources. Staff may also be deployed to assist police personnel in responding to noncritical calls for service
Community Collaboration for Youth Well-Being
•
The City's Community Services Department with its many partners have taken an active role in organizing a multidisciplinary group of individuals and agencies to develop an effective Teen Suicide Prevention Plan focused on education, prevention and intervention. Work will continue in 2011 to further develop an integrated system of community strategies to provide a "safety net" for youth and teens
•
The City's Recreation staff and PAUSD will continue to collaborate in providing after-school sports for the three middle schools. This middle school athletic program is a "no cut" program where every middle school student who enrolls has an opportunity to play. Sports offered include flag football, volleyball, cross-country, basketball, track and field, golf and wrestling
•
Recreation staff will continue to work closely with youth leadership groups such as the Youth Council, Teen Advisory Board, and Junior Advisory Board, along with the Palo Alto Recreation Foundation and volunteers, to help shape programs and services to meet current and future community needs
•
The Teen Arts Council is a self-supported and directed teen council promoting performing arts in the community. Children's Theatre staff support the council in an advisory role
Environmental Sustainability
•
The Art Center, working with the Palo Alto Art Center Foundation, will include "green" building considerations in their plans to renovate and expand the Art Center
•
The Junior Museum and Zoo's current exhibit "Clean, Green, Energy Machines" has been developed with a focus on environmental education and energy conservation
•
The Open Space and Parks Division will continue to actively support partnerships with a variety of
Operating Budget FY 2011
City of Palo Alto
77
Community Services environmental organizations, recreation clubs, sports groups, Acterra, Save The Bay, and Friends of the Palo Alto Parks in order to provide special interest classes, augment City services, and enhance facilities and programs offered to the public. Park staff will work with neighborhood associations to "adopt-a-park" and encourage volunteers to plant colorful flower beds in their local parks. The division will also continue to further limit the use of pesticides in parks. Staff will work closely with neighbors and interested parties in the design of infrastructure improvements
DEPARTMENT SUMMARY FY 2009 Actuals
Administration Arts and Sciences Cubberley and Human Services Open Space and Parks Recreation and Golf TOTAL EXPENDITURES TOTAL REVENUES INTERNAL REVENUES EXTERNAL REVENUES
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
378,162 1,360,095 1,387,506 1,370,841 1,392,082 4,580,932 4,710,034 4,239,510 4,568,955 4,624,411 3,473,190 3,363,930 3,334,465 3,435,412 2,775,004 6,455,124 6,402,545 6,312,384 6,539,261 6,068,941 6,086,043 6,223,780 5,673,689 6,280,912 6,131,866 $21,156,343 $21,882,847 $21,701,330 $22,279,328 $20,149,226 $7,102,535 $7,864,698 $7,079,938 $7,864,698 $7,577,698 147,600 147,600 99,600 72,717 147,600 7,029,818 7,717,098 6,932,338 7,717,098 7,478,098
FY 2011 Budget Change
4,576 (341,422) (559,461) (243,443) (412,354) $(1,552,104) $497,760 (48,000) 545,760
% Chg
0% (7%) (17%) (4%) (7%) (7%) 7% (33%) 8%
Enrollment in Community Services Classes (By Fiscal Year)
FY 2008-09
FY 2007-08
FY 2006-07
FY 2005-06
FY 2004-05
15,000
78
City of Palo Alto
16,000
17,000
18,000
19,000
20,000
21,000
Operating Budget FY 2011
Community Services
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges Operating Transfers Out
TOTAL EXPENDITURES
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
12,356,475 3,023,518 714,443 29,809 1,309,187 12,480 3,703,441 6,990
12,231,478 3,051,204 839,140 78,700 1,376,774 23,766 4,274,795 6,990
12,226,978 3,009,894 770,742 56,115 1,321,314 23,766 4,285,531 6,990
12,459,102 3,051,204 839,140 78,700 1,376,774 23,766 4,443,652 6,990
10,066,772 3,691,204 789,140 78,700 1,326,774 23,766 4,165,880 6,990
$21,156,343
$21,882,847
$21,701,330
$22,279,328
$20,149,226
$7,102,535
$7,864,698
$7,079,938
$7,864,698
$7,577,698
96.50 49.44
94.25 52.14
94.25 52.14
94.25 52.14
73.75 54.96
TOTAL REVENUES Total Full Time Positions Total Temporary Positions
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Number of Community Services classes and camps taught (SEA) 2. Number of classes and camps sessions cancelled
985 345
1,050 350
1,000 330
45% 1,095
45% 1,050
47% 1,000
85%
87%
87%
90%
90%
92%
Efficienc y : 1. Percentage of registrations online (SEA) 2. Number of classes and camps refunds processed
Effe c t iveness: 1. Percent rating the range/variety of classes good or excellent in citizen survey (SEA) 2. Percentage of refunds processed by credit cards
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VEN UE CHANGES Administration New Revenue - Fund raising from friends and support groups Reduction - Fee Reduction subsidy program
Operating Budget FY 2011
50,000 (60,000)
50,000 (60,000)
City of Palo Alto
79
Community Services RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
Arts and Sciences New Revenue - Entrance Fee for the Junior Museum and Zoo (JMZ) New Revenue - Entrance Fee for the Art Center Gallery Cost Recovery - Childrens Theatre productions Cost Recovery - JMZ education classes Cost Recovery - Art classes Cost Recovery - Science Outreach Program Cost Recovery - Community Theatre Cost Recovery - Nature Interpretive Program Cubberley and Human Services
25,000 25,000 100,000 75,000 50,000 79,000 42,000 50,000
25,000 25,000 100,000 75,000 50,000 79,000 42,000 50,000
Reduce funding from the Family Resources Foundation Open Space and Parks
(50,836)
(50,836)
100,000
100,000
50,000
50,000
New Revenue - Open Space day use fee ( Foothills, Baylands and Arastradero) Recreation and Golf Cost Recovery - increase revenues in various recreation classes
TOTAL REVENUE CHANGES
$535,164
Adjustments (Note1)
NET REVENUE CHANGES
$535,164
$0
$535,164
(37,404)
(37,404)
$(37,404)
$497,760
EXPENDITURE CHANGES Salary and Benefits Arts and Sciences Elimination of 1.0 FTE Program Assistant Elimination of 1.0 FTE Producer, Arts and Science Cubberley and Human Services
(81,486) (98,762)
(81,486) (98,762)
(197,651)
(197,651)
(138,734) (153,120) (50,836)
(138,734) (153,120) (50,836)
12,906
12,906
Elimination of 5.0 FTE Park Maintenance Person Recreation and Golf
(412,137)
(412,137)
Elimination of 7.0 FTE Golf Maintenance Person Elimination of 2.0 FTE Administrative Associate
(565,152) (89,300)
(565,152) (89,300)
$(1,774,272)
$0 $(1,774,272)
Elimination of 1.0 FTE Cubberley Center and Human Services Division Manager Elimination of 1.0 FTE Child Care Coordinator Elimination of 2.0 FTE Building Service Person Elimination of 0.5 FTE Family Resources Program Coordinator Reclassification of 2.0 FTE Supervisor Recreation Program to Senior Supervisor Recreation Program Open Space and Parks
Total Salary and Benefits Changes
80
City of Palo Alto
Operating Budget FY 2011
Community Services RESOURCE LEVEL CHANGES Decrease in Personnel Benefit Costs (Note 2) Adjustments (Note 1) Total Net Salary and Benefits Changes
FY 2011 Ongoing
FY 2011 One-Time
(367,934) (18,000)
FY 2011 Total (367,934) (18,000)
$(2,142,206)
$(18,000) $(2,160,206)
Elimination of summer concert series Cubberley and Human Services
(27,000)
(27,000)
Reduction in Human Service Resource Allocation Process (HSRAP) Increase in contract services for custodial Open Space and Parks
(50,000) 100,000
(50,000) 100,000
Increase in contract services for park maintenance - net Recreation and Golf
147,000
147,000
420,000 (50,000)
420,000 (50,000)
Non-Salary Arts and Sciences
Increase in contract servcies for golf course maintenance Reduction in golf course planting materials Total Non-Salary Changes
TOTAL EXPENDITURE CHANGES Adjustments (Note 1) Decrease in allocated charges (Note 3)
NET EXPENDITURE CHANGES
$540,000 $(1,602,206)
$0
$540,000
$(18,000) $(1,620,206) 187,752
(119,650)
187,752 (119,650)
$(1,721,856)
$169,752 $(1,552,104)
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Personnel benefit costs have decreased mainly due to reductions in proposed staffing levels and a change in methodology of estimating benefit costs. Note 3: Allocated charges are decreasing mainly due to a change in methodology of calculating Information Technology costs.
SERVICE LEVEL CHANGES In Fiscal Year 2011, the following capital improvement programs are planned to be accomplished: â&#x20AC;˘
Renovation and replacement of dimmers and lighthing at Cubberley Theatre
â&#x20AC;˘
Replacement of audio and visual monitoring systems at Children's Theatre
Due to the economic environment and budget reductions, service level changes within the Community Services Department are as follows:
Operating Budget FY 2011
City of Palo Alto
81
Community Services •
Maintenance services at Mitchell and Rinconada Parks and Lawn Bowling Green are proposed to be contracted out as a cost saving measure with the elimination of five positions. However, the division will regularly inspect contracted maintenance to ensure safety and quality standards are met
•
Community Services will evaluate options to contract out Golf Course maintenance. If an acceptable proposal emerges from the private sector with equal or better maintenance service levels at a lower cost, subject to Council approval, the department may shift from public to contracted Golf Course maintenance, resulting in the elimination of seven positions
•
Recreation and the Art Center proposes to eliminate three of seven positions responsible for front desk customer service, program registration, facility booking and resident inquiries at the Lucie Stern, Mitchell Park, Cubberley, and Art Centers. A more centralized customer service model is being designed along with enhancing online and other self service strategies. Residents may experience some inconvenience as we adjust to a more sustainable level of customer service
•
Community Theatre management will be provided by Children's Theatre staff due to the proposed elimination of a theater producer position
•
Management of Cubberley Community Center and Human Services will be provided by recreation supervisors since the Division Manager and Child Care Coordinator positions will be eliminated. In addition, two maintenance positions will also be eliminated, hence the building maintenance will be provided in the future by remaining staff and contractors
•
The proposed reduction to 1/2 time of the Family Resources Program Coordinator will lead to a complete restructuring of the program, the end result of which is still to be determined
•
The budget for the Human Services Resource Allocation Process (HSRAP) is proposed to be reduced
•
The funding for the summer concert series is proposed to be eliminated in FY 2011
•
Various budgets for supplies, materials, and contracts in Golf, Parks, and Open Space are reduced which may impact the appearance and maintenance of turf, shrubs, hedges, and plants
•
Revisions to the Fee Reduction Program are proposed to limit eligibility to youth, seniors, and disabled persons and reduce the discount to either 25% or 50%
82
City of Palo Alto
Operating Budget FY 2011
Fire Department
FIRE DEPARTMENT Organizational Chart
1.0 FIRE CHIEF Nick Marinaro
EMERGENCY RESPONSE
ENVIRONMENTAL & SAFETY MANAGEMENT
1.0-Deputy Fire Chief Operations
1.0-Fire Marshal
3.0-Battalion Chief
3.0-Fire Inspector
1.0-EMS Coordinator
2.0-Hazardous Materials Inspector
30.0-Fire Apparatus Operator
1.0-Administrative Asssociate II
27.0-Fire Captain 45.0-Fire Fighter 2.0-Administrative Asssociate II
TRAINING & PERSONNEL MANAGEMENT
1.0-Deputy Fire Chief Support Serv 1.0-Office of Emergency Services Coord 1.0-Training Captain 1.0-Administrative Asssociate II
Fiscal Year 2011 Position Totals - All Funds:
121.00 Full-time 4.40 Hourly
Fire Fire To protect life, property and the environment from fire, hazardous materials, and other disasters through rapid emergency response, proactive code enforcement, modern fire prevention methods, and progressive public safety education for the community. OVERVIEW In Fiscal Year 2011, the Fire Department will continue to provide mandated trainings for confined space and entry, rescue exercises, fire extinguisher, Occupational Safety and Health Administration (OSHA), respiratory mask fit testing, and CPR and First Aid to the Public Works and Utility departments. The department will continue to share regional training resources with other Santa Clara County fire departments, such as the Joint Fire Academy, Live Fire training, hazardous materials, wildland and Strike Team deployment training and exercises. The Palo Alto Fire Department looks forward to hosting the Fall county-wide trench rescue class and will explore new opportunities for sharing resources and training.
As a budget reduction proposal for Fiscal Year 2012, the department is considering reorganizing emergency preparedness program and possibly centralizing it under the City Manager's office. If emergency services is retained in the department, Fire personnel will continue to prepare City staff and the community for major disaster mitigation, preparedness, response, and recovery through the Office of Emergency Services (OES) and the Palo Alto Neighborhood Disaster Activity (PANDA) program. Legally mandated training (Incident Command System100 and 200) will continue to be provided to City employees and elected officials. Terrorism Awareness (AWR-160) training will be provided to all emergency first responders, Executive Staff, City Council, and Emergency Standby Council officials. In Fiscal Year 2011, the department will continue to operate the Basic Life Support (BLS) ambulance with non-firefighter limited hourly employees. The BLS ambulance takes lower level calls, allowing the Paramedic ambulances to be available for more critical patients requiring a higher level of intervention. When the Advance Life Support (ALS) - Paramedic first responders find that a patient can be efficiently transported by our BLS ambulance, the ALS ambulance is placed back in service making it available for more critical patients. The BLS ambulance is also available for inter-facility transports and special events. The Department completed outfitting all of its first line apparatus with Advance Life Support (ALS) Paramedic equipment including 12-lead cardiac monitors. The department modified its personnel rotations to maximize the number of ALS - Paramedic Engines in service at all times. In Fiscal Year 2011, the Fire Department will continue to actively explore restructuring strategies and opportunities for cost-savings and organizational efficiencies. The Department will continue the process of placing additional ALS engine companies in service on a more frequent basis. Municipal fees for ALS transport and related services will be increased as needed to remain consistent with the industry standards. The contract with the Emergency Medical Services (EMS) collections vendor has been enhanced to increase revenues as well as be more administratively efficient.
C I T Y
O F
P A L O
A L T O
The department continues to increase proficiency in emergency readiness by training in vacant and donated structures and facilities as well as in existing department training sites. These sites will include the vacant School for the Blind and Dyslexic, Casa Olga and various single family residences that have been donated for training purposes.
Operating Budget FY 2011
City of Palo Alto
85
Fire The Fire Prevention Bureau will focus on improving efficiency by providing ongoing cross-training, reevaluating inspection priorities, and implementation of automated data management systems. Efforts to improve Geographic Information Systems (GIS) mapping and development of newer methods to gather and use information for the improvement of emergency response capabilities will be deferred due to staffing constraints. Other alternatives will continue to be explored. A priority will continue to be placed on improving cost recovery through improved verification of compliance with certificate of occupancy, state-mandated fire inspections and fire extinguishing system upgrade requirements, and implementing a cost-recovered program to verify compliance with maintenance requirements for fire protection systems. The Underground Storage Tank (UST) program transfer completed in Fiscal Year 2009 has allowed the Hazardous Materials Inspector assigned to this project to prioritize work time towards revenue generating activities, such as Use and Occupancy inspections and verification of mandatory UL300 upgrades for fire extinguishing systems, in addition to hazardous materials facilities inspection and oversight. Emphasis will continue to be placed on required and mandated inspections. Previously established plan check target dates may require modifications due to a proposed elimination of a position in the Fire Prevention Bureau previously assigned to conduct fire plan checks. Fire plan check contract employees will continue to be used going forward. The Foothills Fire Management Plan update has been completed and was approved by the City Council in October 2009. During Fiscal Year 2009, the Fire Department in conjunction with other city staff conducted extensive community outreach efforts regarding the development and formulation of the plan. In 2011, efforts for the Fire Management Plan will focus on development of an evacuation route plan and fuel mitigation. A systematic approach to plan implementation with identified priorities, resource needs, and funding opportunities will continue to be explored.
PROGRAM UPDATE The Fire Department has accomplished the following program implementations: •
FEMA Task Force 3: Palo Alto Fire Department is a participating agency in the regional FEMA California Urban Search and Rescue (USAR) Task Force coordinated by the Menlo Park Fire Protection Agency. Seven members are assigned to the team as Hazardous Materials Specialist, Rescue, Search and Equipment Support Specialist roles. These members are eligible for deployment to any incident nationwide as part of FEMA's Homeland Security response system. The training brings specialized skills back to the department which can be used to train other department members and for expertise in the event of a local emergency. Cost of deployment and mobilization drills are reimbursed to the city from FEMA. No members were deployed during the Fiscal Year 2010, but all members participated in required monthly drills and activities
•
Data Management Systems for Hazardous Materials: In Fiscal Year 2010, Hazardous Materials Program staff continued collection of electronic inventory and facility information for approximately 400 facilities where hazardous materials are used and stored in Palo Alto. During this period the department relinquished its responsibility as project manager to be transitioned to the State of California for two state-funded projects to further enhance this system
•
Mobile Data Computers: The Department has begun the implementation of Mobile Data Computers in each response vehicle. The computers are linked to the CAD system and City GIS maps and allow for the responding unit to have current incident data and view incident status within the city. The units are linked with GPS-based automatic vehicle locators (AVL) that will help dispatch units in the field to respond with the closest available resource to any incident. AVL will aid in reducing response times and help prevent accidents with incoming units
86
City of Palo Alto
Operating Budget FY 2011
Fire •
Electronic Patient Care Report (e-PCR): In Fiscal Year 2011 the Fire Department will continue the use of the electronic patient care reporting system. The electronic system collects data and signatures via laptop computer. By collecting the information electronically the department can easily evaluate patient care trends and report required data points to Santa Clara County EMS with more efficiency and less staff time. The electronic data can be transferred to the outsourced billing company, eliminating the manual data entry phase. The result should be more accurate billing information, minimization of error, and expedited payment to the City
•
Emergency Medical Services: The Basic Life Support Ambulance Program has continued to provide an improved level of availability for medical downgrade calls in the Palo Alto and Stanford communities. The support that’s provided results in increased opportunities for Advance Life Support ambulance transports. Non-emergency patients are transported to receiving facilities in a more efficient and timely manner
•
Public Education: “Remembering When" is a fire and fall prevention safety program sponsored by the National Fire Protection Agency (NFPA) that brings awareness to older adults. It is coordinated by a community fire department volunteer with assistance from Palo Alto firefighter volunteers. In Fiscal Year 2010 and forward into 2011, in conjunction with the local Senior Center, the awareness program will continue to be delivered to older adults in the community
COUNCIL PRIORITY IMPLEMENTATION In Fiscal Year 2011, the Fire Department will implement the City Council's Top 5 Priorities as follows: Disaster Preparedness Office of Emergency Services (OES) in conjunction with other City departments has continued to facilitate a collaborative public education campaign to assist neighborhoods, businesses, and faith-based organizations in developing disaster preparedness plans that identify vulnerable populations and their level of preparedness. OES has coordinated a functional Emergency Operations Center (EOC) exercise in conjunction with the State, County, and Local Silver Sentinel plan. Trained approximately 100 individuals in Community Emergency Response Training (CERT), and continues to offer the course 8 times each year. The OES has trained the City's EOC staff to coordinate information, resources and priorities for a Bay Area-wide earthquake scenario. Environmental Sustainability Due to staff reductions in the Hazardous Materials Division, the Fire Department will need to selectively review and prioritize Environmental Impact Reports and will look for other alternatives to provide guidance for developers and City Planning staff regarding potential impacts of soil and/or groundwater contamination at sites under development. This may include deferral to Santa Clara County or outside contractors. The Fire Department's hazardous materials inspection staff will continue to inspect occupancies and review required facility reports to ensure compliance with federal, state and local hazardous materials requirements. The goal of inspecting each hazardous materials facility annually will be revised to every two years for Fiscal Year 2010 and 2011, with further evaluation to be made at the end of 2011. New construction or closures of hazardous materials facilities will have more limited review or inspecttion by the hazardous materials inspectors. In some cases, applicants may be required to provide a third-party technical report including plan review, inspection, and post-closure report review. To enhance cost recovery, it is being proposed for 2011 that School District properties and Enterprise Fund facilities will be charged permit fees for storage, use and handling of hazardous materials.
Operating Budget FY 2011
City of Palo Alto
87
Fire Any new Fire Department engines, paramedic ambulances, trucks and rescue vehicles will be equipped with diesel particulate filters (DPF) to reduce emissions beyond current air quality mandates as well as incorporating the most current best practices for environmental protections and efficiencies. For example, the six new fire engines purchased in 2009 have DPF filters that meet 2007 EPA standards even though emergency vehicles are currently exempt from this requirement. The Fire Department's Greenhouse Gas reduction plan resulted in a greater than 5 percent reduction in carbon dioxide emissions from the 2005 baseline to the end of 2009. The Fire Department is on schedule to achieve at a 15 percent reduction in carbon dioxide emissions by the year 2020. The Fire Department will make every effort to promote and achieve energy efficiency to the extent possible moving forward. As a result of the elimination of the Hazardous Materials Specialist position for 2011, work on the greenhouse reduction plan may be more limited and the tasks will need to be reallocated to existing Hazardous Materials Division staff. Alternatives may need to be explored to be able to further analyze or develop greenhouse gas reduction strategies such as assistance from other departments in the City.
DEPARTMENT SUMMARY FY 2009 Actuals
Fire Administration Emergency Response Environmental Safety Management Training and Personnel Records and Information Management TOTAL EXPENDITURES TOTAL REVENUES INTERNAL REVENUES EXTERNAL REVENUES
88
City of Palo Alto
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
FY 2011 Budget Change
% Chg
353,259 17,441,198 2,284,830 2,337,784
1,492,927 17,614,356 2,497,508 2,528,858
2,634,264 17,591,881 2,497,458 2,520,423
1,495,186 18,360,680 2,596,149 2,637,981
1,432,718 19,486,314 2,556,360 2,560,393
(1,201,546) (46%) 1,894,433 11% 58,902 2% 39,970 2%
979,598
1,032,759
1,009,062
1,071,441
971,702
(37,360) (4%)
$23,396,669 $25,166,408 $26,253,088 $26,161,437 $27,007,487 $11,021,172 $10,645,094 $10,391,241 $10,965,996 $10,920,063 337,913 337,913 337,913 303,159 337,913 10,718,013 10,307,181 10,053,328 10,628,083 10,582,150
$754,399 $528,822 0 528,822
3% 5% 0% 5%
Operating Budget FY 2011
Fire
Comparison of Net Fire and Emergency Medical Svcs. Expenditures Per Capita: Fiscal Year 2007 Santa Clara Mountain View Berkeley Redwood City Milpitas PALO ALTO San Mateo Sunnyvale Fremont San Jose $0
$30
$60
$90
$120
$150
$180
$210
$240
$270
Sources: California State Controller, Cities Annual Report, Fiscal Year 06-07 and Palo Alto City Auditor's Fiscal Year 2009 Service Efforts and Accomplishments Report
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Allocated Charges
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
20,896,773 444,441 328,002 204,419 30,389 1,492,645
21,619,512 475,144 378,845 256,797 41,065 2,395,045
21,579,512 496,694 368,933 225,621 30,570 3,551,758
22,607,404 475,144 378,845 256,797 41,065 2,402,182
23,294,330 465,719 378,845 244,447 41,065 2,583,081
TOTAL EXPENDITURES
$23,396,669
$25,166,408
$26,253,088
$26,161,437
$27,007,487
TOTAL REVENUES
$11,021,172
$10,645,094
$10,391,241
$10,965,996
$10,920,063
126.69 1.05
122.69 3.82
122.69 3.94
122.69 3.82
120.74 4.40
Total Full Time Positions Total Temporary Positions
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Number of ordinary hazard facilities inspected for fire safety (SEA) 2. Total responses to emergency calls (SEA)
Operating Budget FY 2011
1,028 7,549
1,000 7,500
City of Palo Alto
1,000 7,500
89
Fire B ENCHMARKING MEASURES FY 2009 Actuals 3. Number of training opportunities through PANDA classes 4. Number of bike safety classes conducted 5. Number of fire safety, bike safety, and disaster preparedness presentation (SEA) 6. Number of fire calls (actual fires) (SEA) 7. Number of medical/rescue calls (SEA) 8. Number of hazardous conditions calls (SEA) 9. Total number of hazardous materials inspections (SEA)
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
75 37
75 38
75 38
329
250
250
239 4,509 165 286
240 4,500 165 250
240 4,500 165 250
5:37 155
6:00 180
6:00 180
11,281
10,500
10,500
25% 2,466 5:37 5:37 6:45
25% 1,600 6:00 6:00 6:00
25% 1,600 6:00 6:00 6:00
56%
60%
60%
95%
90%
90%
80%
85%
85%
95%
95%
95%
96% 95% 91%
95% 98% 90%
85% 98% 90%
91%
90%
90%
91%
90%
90%
90%
90%
90%
Efficienc y : 1. Average emergency response time for all calls (SEA) 2. Number of PANDA volunteers recruited and trained 3. Number of residents provided with fire safety, bike safety and disaster preparedness training 4. Percent of ordinary hazard facilities inspected annually for fire safety 5. Number of 3rd and 5th graders trained in bicycle safety 6. Average response time for fire calls (minutes) (SEA) 7. Average response time for medical/rescue calls (minutes) (SEA) 8. Average response time for hazardous conditions calls (minutes) 9. Percent of annual hazardous materials inspections (Underground Storage Tank Program discontinued)
Effe c t iveness: 1. Percent rating fire services good or excellent (SEA) 2. Percent of residents rating fire prevention and education good or excellent (SEA) 3. Percent of ordinary hazard fire safety inspections where facility was found in compliance or returned to compliance within department standards 4. Percent of students trained 5. Percent of PANDA volunteers who completed training 6. Percent response to fire emergencies within 8 minutes (SEA) 7. Percent response to emergency medical requests for service within 8 minutes (urban area response versus foothills response) (SEA) 8. Percent of responses to hazardous conditions emergencies within 8 minutes 9. Percent of hazardous materials inspections of state regulated facilities where facility was found in compliance or returned to compliance within department standard (Annual Unified Program Inspection Summary Report)
90
City of Palo Alto
Operating Budget FY 2011
Fire
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VEN UE CHANGES Increase Hazardous Materials Inspection Fees Increase Stanford Fire Services Revenue Increase Paramedic Services Fees by 10% Increase Code Enforcement Fees Decrease Plan Checking Fee
TOTAL REVENUE CHANGES
88,000 136,969 200,000 120,000 (270,000) $274,969
Adjustments (Note 1)
NET REVENUE CHANGES
$274,969
88,000 136,969 200,000 120,000 (270,000) $0
$274,969
253,853
253,853
$253,853
$528,822
EXPENDITURE CHANGES Salary and Benefits Elimination of 1.0 FTE Administrative Assistant Elimination of 0.95 FTE Hazardous Materials Specialist Reclassification of 2.0 FTE Hazmat Materials Inspector To Hazmat Materials Inspector/EMT Increase Temporary Salaries Increase Workers' Compensation Charges Increase Medicare (Employer) Contribution Increase Retiree Health Insurance Premiums Increase Benefit Allocation (Note 2)
Total Salary and Benefits Changes Salary and Benefits Changes (Note 4) Adjustments (Note 1) Total Net Salary and Benefits Changes
(116,507) (186,953)
(116,507) (186,953)
9,069
9,069
100,869 479,668 12,965 393,311 390,237
100,869 479,668 12,965 393,311 390,237
$1,082,659
$0
$1,082,659
(20,000)
652,158 (20,000)
$(20,000)
$1,714,817
652,158
$1,734,817
Non-Salary Decrease Contract Services Increase Supplies and Materials Decrease General Expenses Decrease Facilities and Equipment Decrease Utility Charges Increase Allocated Charges (Note 3)
Total Non-Salary Changes Adjustments (Note 1)
Operating Budget FY 2011
(67,435) 12,412 (1,690) (25,065) (4,175) 192,211
$106,259
(67,435) 12,412 (1,690) (25,065) (4,175) 192,211
$0
$106,259
(1,066,677)
(1,066,677)
City of Palo Alto
91
Fire RESOURCE LEVEL CHANGES
Total Non-Salary Changes
NET EXPENDITURE CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
$106,259 $(1,066,677)
$(960,418)
$1,841,076 $(1,086,677)
$754,399
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. The total non-salary change of $1,066,677 includes $1,156,713 in repayment of FY 2009 Technology Fund allocated charges and decrease of $90,036 in non-salary expenses. Note 2: Personnel benefit have increased due to net staffing costs increase (see Note 4) and a change in methodology of estimating benefit costs. Note 3: Allocated charges have changed due to reductions in staffing levels, change in methodology of estimating benefit costs, and reductions in non-salary appropriations. Note 4: Effective January 1, 2010, International Association of Firefighters received a 9.989 percent salary increase and employees will assume responsibility for paying the full employee PERS contribution of 9 percent resulting in net annual salary and benefit increase of approximately $1.3 million. Half of this salary and benefits increase, $0.65 million, was included in the FY 2010 budget and the second half of this increase is included in the FY 211 proposed budget.
92
City of Palo Alto
Operating Budget FY 2011
Human Resources Department
HUMAN RESOURCES DEPARTMENT ORGANIZATIONAL CHART
1.0 HUMAN RESOURCES DIRECTOR RUSS CARLSEN
ADMINISTRATION
1.0-Assistant Director, HR
EMPLOYEE/ORG DEVELOPMENT & HR SYSTEMS
1.0-Administrative Assistant
1.0-Sr. Administrator
0.5-HR Assistant LABOR RELATIONS RECRUITMENT
1.0-Administrator-HR
1.0-Administrator-HR
0.5-HR Representative
1.0-HR Assistant
1.0-HR Assistant
EMPLOYEE RELATIONS
COMPENSATION
1.0-Administrator-HR
1.0-Administrator-HR 1.0-HR Assistant
BENEFITS
RISK MANAGEMENT/SAFETY/WORKERS’ COMP
1.5-HR Representative
1.0-Administrator-HR
0.5-HR Assistant
1.0-HR Assistant
Fiscal Year 2011 Position Totals - All Funds: 16.00 Full-time 0.34 Hourly
94
City of Palo Alto
Operating Budget FY 2011
Human Resources Human Resources To recruit, develop, and retain a diverse, well-qualified, and professional workforce that reflects the high standards of the community we serve, and to provide a high level of support to the City departments. OVERVIEW The Human Resources Department provides a wide range of employee services for the City of Palo Alto, including recruitment, new employee orientation, training, staff development, benefits administration, employee safety, and labor relations. In addition, the Department provides support services to City departments related to employee relations, compensation, performance evaluations, job classification, risk management, organizational development, and employee assistance. City departments and employees are the primary customers for the Human Resources Department and the Department is dedicated to supporting them with their core missions. Goals for Fiscal Year 2011 include: (1) Negotiate and implement labor agreements with Service Employees' International Union (SEIU), Service Employees' International Union (SEIU) - Hourly Unit, International Association of Fire Fighters (IAFF), Fire Chief's Association (FCA), and Palo Alto Police Manager's Association (PAPMA); (2) Initiate contract negotiations with Palo Alto Police Officer's Association (PAPOA);
A L T O
(3) Complete the compensation and classification study for the Management and Professional group; (4) Update the compensation plans for the Management and Professional group and the Limited Hourly group; (5) Continue phased update of the Merit System rules and regulations and other Human Resources policies and procedures (6) Continue to partner with other City departments to improve City operations; (7) Identify opportunities for contracting out additional HR services;
C I T Y
O F
P A L O
(8) Develop a strategic plan for creating a comprehensive Human Resources Information System (HRIS); and (9) Explore feasibility of developing a paperless Document Management System for Human Resources.
PROGRAM UPDATE During FY 2010, the Human Resource Department performed the following: Recruitment
•
Continued to evaluate restructuring opportunities prior to authorizing recruitments
•
Enhanced the requisition process for recruitments
•
Enhanced the pre-employment background process
•
Analyzed post recruitment data to improve recruitment techniques
•
Explored the use of social networking sites for appropriate recruitments
Employee/Org Development & HR Systems
•
Provided customized training to City Staff on safety, mandated training, ethics, and policies and procedures. Added skills classes, taught by staff (bidding process, staff reports, budget reports)
Operating Budget FY 2011
City of Palo Alto
95
Human Resources •
Completed transition of Management Talent Exchange Program (MTEP) to County of San Mateo
•
Audited performance appraisal process City-wide
•
Provided financial and retirement planning sessions for employees
•
Consolidated and downsized City-wide training
Employee and Labor Relations
•
Administered salary deferral with the Palo Alto Police Officer's Association (PAPOA)
•
Negotiated with Service Employees' International Union (SEIU) resulting in the adoption and implementation of the City's Last, Best, and Final offer
•
Initiated contract negotiations with SEIU - Hourly Unit and the International Association of Fire Fighters (IAFF)
•
Analyzed petition from and initiated contract negotiations with the newly formed Palo Alto Police Manager's Association (PAPMA)
•
Administered changes in the Variable Management Compensation (VMC) benefit program and the Management/Professional Compensation Plan
•
Analyzed and responded to petition from the Utility Management and Professional Association of Palo Alto (UMPAPA)
•
Maintained zero Equal Employment Opportunity Commission (EEOC) and Fair Employment and Housing Act (FEHA) discrimination complaints
•
Continued phased update of the Merit Systems Rules and Regulations
Benefits and Compensation
•
Continued analysis and evaluation of employee benefit plan contracts and alternative employee contribution options
•
Conducted benefits fair and health/safety/wellness presentations
•
Completed and distributed Management/Professional Classification Study salary data for employee review and response
•
Commenced benefits analysis component for the Management/ Professional Classification Study to benchmark total compensation
Risk Management/Safety/Workers' Compensation
•
Identified claim trends such as back and shoulder injuries; worked with departments on exposure analysis, and coordinated specialized training
•
Maintained and monitored Injury and Illness Prevention Program departmental checklists, focusing on preventing injuries and controlling workers' compensation costs pursuant to the City Auditor's recommendations
•
Facilitated City-wide implementation of changes in Federal regulations related to employee protective equipment
•
Administered the mandatory Department of Transportation drug and alcohol testing as required, resulting in the testing of ninety-one random and follow-up drug and alcohol tests
96
City of Palo Alto
Operating Budget FY 2011
Human Resources COUNCIL PRIORITY IMPLEMENTATION In Fiscal Year 2011, the Human Resources Department will address the City Council's Top Priorities as follows: City Finances
•
Human Resources will continue to explore opportunities for restructuring, controlling benefits costs, and reducing workers' compensation costs, as well as pursuing other opportunities for cost reductions
Emergency Preparedness
•
Participate directly in Emergency Operation Center (EOC), health/safety programs, and the coordination of safety drills and other areas related to emergency preparedness
Environmental Sustainability
•
Continued participation in City-wide environmental initiatives including the organization's Climate Protection Plan
DEPARTMENT SUMMARY FY 2009 Actuals
Administration/Employee-Org Development and HR Systems EmployeeRelations/Labor Relations Benefits/Compensation Recruitment Risk Mgmt/Safety/Worker's Compensation TOTAL EXPENDITURES TOTAL REVENUES INTERNAL REVENUES EXTERNAL REVENUES
Operating Budget FY 2011
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
FY 2011 Budget Change
% Chg
557,257
822,952
766,512
836,051
759,466
(7,046) (1%)
584,984 471,773 635,547
767,726 435,554 483,256
783,736 441,350 479,123
782,721 444,427 495,757
732,427 344,899 465,363
(51,309) (7%) (96,451) (22%) (13,760) (3%)
450,711
327,403
324,511
338,908
447,261
122,750 38%
$2,700,272 $1,457,252 1,429,252 28,000
$2,836,891 $1,351,604 1,351,604 0
$2,795,232 $1,351,604 1,351,604 0
$2,897,864 $1,400,888 1,400,888 0
$2,749,416 $1,175,502 1,175,502 0
$(45,816) (1%) $(176,102) (13%) (176,102) (13%) 0 0%
City of Palo Alto
97
Human Resources
Workers' Compensation Estimated Incurred Cost (in $000's)
FY 2009-10 FY 2008-09 FY 2007-08 FY 2006-07 FY 2005-06 $0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
$3,500
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
2,195,702 295,408 19,054 10,409 71,366 43,000 65,344
2,341,135 222,535 26,880 8,989 44,159 43,000 150,193
2,341,135 175,975 26,880 8,989 47,228 43,000 152,025
2,402,108 222,535 26,880 8,989 44,159 43,000 150,193
2,366,884 99,071 21,280 3,989 27,924 43,000 187,268
TOTAL EXPENDITURES
$2,700,283
$2,836,891
$2,795,232
$2,897,864
$2,749,416
TOTAL REVENUES
$1,457,252
$1,351,604
$1,351,604
$1,400,888
$1,175,502
16.00 0.04
16.00 0.34
16.00 0.34
16.00 0.34
16.00 0.34
Total Full Time Positions Total Temporary Positions
98
City of Palo Alto
Operating Budget FY 2011
Human Resources
BENCHMARKING MEASURES
FY 2010 Adjusted Budget
FY 2009 Actuals
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. 2. 3. 4. 5.
Number of training hours Number of new hires processed Number of grievances filed Number of labor agreements negotiated Number of Workers' Compensation Claims
8710 130 13 1 133
3250 125 15 4 130
2600 100 20 4 132
716 685 0
260 350 1
200 300 1
0
0
0
$9048
$3754
$4000
94% 8% $0
94% 8% $5920
95% 6% $8000
1
2
2
149
130
125
Efficienc y : 1. 2. 3. 4.
Number of employees who completed a training course Number of sick leave hours utilized by new hires Number of grievances to arbitration Number of unfair labor practices upheld by Public Employment Relations Board 5. Average cost per Workers' Compensation claim
Effe c t iveness: 1. 2. 3. 4.
Percent of classes offered and delivered Percentage of first year turnover (SEA) Cost of settlement payout related to grievances Number of labor agreements implemented within 90 days of Council authorization 5. Number of Workers' Compensation claims closed
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VEN UE CHANGES Increase allocated revenues - internal
TOTAL REVENUE CHANGES
176,102 $176,102
176,102 $0
$176,102
(113,703) 139,452
(113,703) 139,452
$25,749
$25,749
EXPENDITURE CHANGES Salary and Benefits Freeze Human Resources Director position beginning midyear Personnel Benefit Costs Increase (Note 2) Total Salary and Benefits Changes
$0
Adjustments (Note 1)
NET SALARY AND BENEFITS CHANGES
0 $0
$25,749
$25,749
Non-Salary Eliminate non-mandatory employee training
Operating Budget FY 2011
(28,050)
(28,050)
City of Palo Alto
99
Human Resources RESOURCE LEVEL CHANGES Defer records retention and various equipment upgrades Reduce compensation study resources Reduce allocation for potential investigation Reduce travel and meeting expense Defer Employee Recognition Picnic Reduction in other administrative expense (office supplies, advertising) Allocated charge increase (Note 3) Total Non-Salary
FY 2011 Ongoing
FY 2011 One-Time (13,000) (8,114)
(13,000) (8,114) (7,000) (6,585) (4,500) (15,050) 35,243
$(21,114)
$(47,056)
(24,509)
(24,509)
(7,000) (6,585) (4,500) (15,050) 35,243 $(25,942)
Adjustments (Note 1)
FY 2011 Total
NET NON-SALARY CHANGES
$(25,942)
$(45,623)
$(71,565)
NET EXPENDITURE CHANGES
$(25,942)
$(19,874)
$(45,816)
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenue and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Personnel benefit costs have changed mainly due to reductions in proposed staffing levels and a change in methodology of estimating benefit costs. Note 3: Allocated charges have increased due to changes in staffing levels, methodology of estimating benefit costs, and reductions in non-salary appropriations.
SERVICE LEVEL CHANGES There will be a reduction in Human Resources services due to budget cuts that will directly affect nonmandatory employee training as well as other personalized employee services. Programs such as the Management Talent Exchange Program (MTEP) and the Supervisor, Lead, and Management Academies have been deferred. Training will focus only on mandatory safety and other essential courses such as policy and procedures, performance appraisal, and New Employee Orientation. Annual Employee Recognition Event has been deferred. Staff membership and participation in professional conferences or meetings have been reduced or eliminated. Elimination of contract agency personnel funds may impede progress on the Management/Professional Compensation Study.
100
City of Palo Alto
Operating Budget FY 2011
Library Department
Library Department Organizational Chart
1.0 LIBRARY DIRECTOR
Diane Jennings ADMINISTRATION 1.0 ASSISTANT DIRECTOR
1.0-Business Analyst 1.0-Administrative Assistant 1.0-Management Assistant
PUBLIC SERVICES MAIN LIBRARY 2.0-Supervising Librarian 1.0-Coordinator, Library Program 3.0-Senior Librarian 1.0-Librarian 1.0-Library Associate 1.0-Library Specialist 1.0-Library Assistant
CHILDRENâ&#x20AC;&#x2122;S LIBRARY 1.0-Supervising Librarian 1.0-Senior Librarian 1.0-Librarian 1.0-Library Specialist 1.0-Library Assistant
DIVISION HEAD 1.0-Collection & Technical Services
COLLECTION & TECHNICAL SERVICES 1.75-Senior Librarian 1.0-Librarian 2.0-Library Associate 2.0-Library Specialist
MITCHELL PARK LIBRARY 1.0-Supervising Librarian 1.0-Senior Librarian 2.0-Librarian 1.0-Library Associate 2.0-Library Specialist 1.0-Library Assistant
COLLEGE TERRACE LIBRARY* 1.0-Library Specialist 1.0-Library Assistant
DOWNTOWN LIBRARY* 1.0-Library Specialist 1.0-Library Assistant
Fiscal Year 2011 Position Totals: 39.75 Full-time 9.61 Hourly
* Staff will be reassigned during comprehensive capital improvement projects in FY 2011. Hourly staff has been reduced to compensate for the closures during branch renovations.
Library Library To enable people to explore library resources to enrich their lives with knowledge, information, and enjoyment. OVERVIEW In FY 2011, the Library Department will adjust hours, service levels, collections, and programs in response to a decline in City revenues and to upcoming building improvement projects that will require closures and relocations during construction. Library weekly service hours will be reduced from FY 2010 levels due to a combination of temporary branch closures for construction and cutbacks in staffing levels to address the City's budget deficit. Downtown Library will be closed through June 2011 for an extensive facility renovation, funded with proceeds from the Library Bond Measure of 2008. The infrastructure renovation project of the College Terrace Library, which began in FY 2010, will continue into FY 2011. While the construction is slated to be complete by November 2010, this branch will not be reopened in FY 2011 in order to reduce staffing costs. No temporary libraries will be provided while College Terrace and Downtown libraries are closed for renovation.
C I T Y
O F
P A L O
A L T O
Service hours at the three principal libraries - Mitchell Park, Main, and Children's - also will be reduced to meet required budget targets. Beginning July 2010, all libraries will be closed on Mondays, and Mitchell Park and Main Library will close at 8 pm instead of 9 pm Tuesdays-Thursdays. All libraries will be closed on the Sunday before City holidays that fall on Monday. These changes will result in a total 20% ongoing reduction of service hours at these three facilities. Construction of the new Mitchell Park Library & Community Center will begin in summer 2010. Staff, collections, and furniture at that branch library will be relocated to a temporary library in the former auditorium of the Cubberley Community Center. Library staff will continue its work with the project team to select the furnishings and equipment for the new Mitchell Park facility, scheduled to open in summer of 2012. Library staff will also support the continued design development in FY 2011 of the plans for the renovation of the Main Library, scheduled for construction in 2012 after the Mitchell Park Library is completed. Library programs and support for online services will be adjusted to reduced staffing levels. Library Youth Services staff will continue to offer year-round programming for children and teens, with financial support from the Friends of the Palo Alto Library, but at reduced levels from past years. Collaboration between Library and Community Service staffs will continue in support of service to youth. The Library will provide a limited number of programs for adults if funding support is available from the Friends of the Library. The Department's budget for library collections will experience an overall reduction of 18% with cuts in purchases of new books, reference materials, microfilm, and electronic resources. Staffing in the Collection & Technical Services Division will be reduced accordingly. A two-year pilot project in the LINK+ system, a cooperative borrowing program among more than 50 academic and public libraries that enables customers to borrow books not available in the City's library system, will continue through March 2011. Prior to the end of the pilot, staff will evaluate the cost and benefit of LINK+ and make a recommendation to City Council about continued participation in the program. If the Council agrees to fund this program, the Library's budget will need to be increased to continue the service through the end of FY 2011.
Operating Budget FY 2011
City of Palo Alto
103
Library The Department will begin to implement a major recommendation of the 2009-13 Library Technology Plan - to use radio frequency identification (RFID) tags for inventory control of the library collection and to install automated material handling systems at the three busiest branches. RFID-based technology will reduce the staff time spent on routine tasks associated with the check-in of returned library materials. In FY 2011, staff will select the vendor(s) for this project and begin to place RFID tags in the Library's collection. Tagging of the collection will be completed by FY 2012 when the new Mitchell Park Library is opened with automatic material handling equipment in place. While staff will continue to investigate options to provide an enhanced web catalog that incorporates user-provided content, customer personalization, and enhances search capabilities, progress on this and other technology projects will depend on available funding.
PROGRAM UPDATE Facilities
•
Library staff worked on project teams with Group 4 Architecture and other City staff to review and finalize plans for the new bond-funded Mitchell Park Library & Community Center. Recommendations for interior and exterior finishes, including signage and flooring, were developed based upon input from community members. Moving and surplus plans were developed. The project went out to bid in Spring 2010
•
Library staff met with Group 4 Architecture and other City staff to identify an appropriate location for a Mitchell Park Library temporary facility. The Cubberley Community Center Auditorium was identified as the most appropriate usable site for this purpose. Staff worked with Group 4 Architecture to select interior finishes and analyze the interior space of the Auditorium. Staff helped to develop a collection and furniture placement plan for the temporary facility, and developed a plan for relocating other collection items during construction. Construction on the temporary facility began in 2010
•
Library staff worked on project teams with Group 4 Architecture and other City staff to review and finalize plans for the bond-funded Downtown Library renovation project. Recommendations for interior and exterior finishes, including signage and flooring, were developed based upon input from community members. Staff analyzed library spaces and shelving capacity in order to further refine the plans. Moving and surplus plans were developed and implemented. Construction plans were reviewed and approved by the Library Advisory Commission. The library closed for construction in Spring 2010. Library Administration moved to the Main Library, Collection & Technical Services moved to the Cubberley Temporary Facility, and Downtown Library staff were reassigned to other locations
•
Library staff worked on project teams to review and finalize plans for a major infrastructure renovation project for the College Terrace Library. Collection and furnishing placement plans were developed and finalized. Moving and surplus plans were developed and implemented. Some collection items were relocated to other branches for continued circulation, with the remainder boxed for storage during construction. The branch closed for renovation in Summer 2009
Library Collections
•
With funding support from the Friends of the Library, electronic resources were expanded to include a second database package, additional general interest e-books, many with iPod compatibility and usable by MAC users, and an additional financial database
•
The book and media collections were enhanced through joint funding by the City and the Friends of the Library
•
The Chinese and Russian language collections were increased
•
In FY 2010 periodical subscriptions were reduced by 20% due to budget reductions. (Note: this was in lieu of discontinuing the checkout of back issues of magazines that had been planned). In response to
104
City of Palo Alto
Operating Budget FY 2011
Library changing use patterns and the need to recover storage space for collections and other items while libraries undergo construction, the majority of the archived periodical collection at the Main Library was permanently removed from the collection in FY 2010 Technology
•
A Library Technology Plan and a feasibility report on the Library's future use of RFID and materials handling systems were completed
•
A Citizens' Technology Advisory group was established to provide input on the Library Technology Plan and assist with the review of the RFID and materials handling report
•
The Library implemented LINK+, enabling Palo Alto card holders to borrow from the combined collection of over 5 million books from over 50 member libraries. The Friends of the Library funded half the cost of a two-year pilot of this service
•
Stand-alone off-line circulation software was implemented that provides backup during network or server outages
•
An online events calendar was introduced that includes features such as automatic notifications about events by type of program and online registrations for programs
•
All of the public PCs were replaced with new, faster computers with updated software
•
The original loaner laptops at Main and Mitchell Park libraries were replaced with funding from a Cable Co-op grant to the Friends of the Library
•
A software program was installed that streamlines the check-in of library materials being moved between library branches. This reduced the staff time spent on the check-in of library materials
•
Online payment of fines and fees via the Web was made available
•
More than 20 free on-line newsletters and customized booklists geared to particular interests were provided to customers by e-mail or RSS feed
Programs
•
The Library, in partnership with Stanford University, successfully developed and presented a grant-funded series of programs entitled "Feed Your Head: Nourish Your Boomer Brain at the Library"
•
For the fourth consecutive year, the Library offered, with financial support from the Friends of Palo Alto Library, a community-wide reading program featuring a month-long series of events. The program attracted hundreds of participants who read the book and attended a variety of cultural events
•
With funding support from the Friends of Palo Alto Library, the Library presented two Author Series of programs for adults: a Spring Series featuring four noted Bay Area authors and a Fall Series featuring two noted Bay Area authors
•
The Library presented its Second Annual Writing Contest for children in grades 2-5. For the first time, in 2010, teens in grades 6-12 also participated in the contest
•
The Library developed and presented a well-attended practical series of five programs for adults entitled "Help for Job Seekers" in which librarians demonstrated how to use social network sites, on-line library resources and government Internet sites to successfully research and apply for jobs
•
Two years in a row, the Library presented a three-part series of programs for parents and teens on how to successfully apply to college
•
The Library developed and presented a program for parents entitled "How to Help Your Child Succeed in School Using Library Tools," in which librarians demonstrated resources for elementary, middle and high school students available through the Library's web site that can be used at home for assignments and
Operating Budget FY 2011
City of Palo Alto
105
Library projects •
The Library collaborated with the Community Services Department to plan and present the first-ever Citywide Day of the Dead Celebration
•
The Library created a promotional DVD for distribution to schools in order to promote its summer reading program
•
The Library was rated one of America's Star Libraries by the Library Journal Index of Public Library Service. The rating system was based on how customers use public libraries: visits to the library, items checked out, attendance at library programs, and public Internet computer use
COUNCIL PRIORITY IMPLEMENTATION In Fiscal Year 2011, the Library Department will support the implementation of the City Council's priorities as follows: City Finances
•
Continue partnerships with the Library Foundation and Friends of the Library to raise funds in support of library programs, services, and facilities beyond the limits of public funds
•
Seek new partnerships and grant opportunities in support of service priorities and innovations
•
Begin to use the services of a collection agency to reduce the number of uncollected library accounts
Emergency Preparedness
•
Participate in the City's plans to ensure appropriate disaster response to occupants of public facilities
Environmental Sustainability
•
Continue to work with the Friends of the Library in support of their book sales which support the reuse and recycling of items removed from library collections
•
Implement the Department's plan to achieve or exceed established goals for the reduction of greenhouse gas emissions
Community Collaboration for Youth Health and Well Being
•
Collaborate with other City departments and PAUSD to provide programs that meet the needs of youth in the community
•
Develop programs that enhance selected elements of the Developmental Assets model of healthy development for youth, particularly those identified as High Expectations, Creative Activities, Reading for Pleasure, and Self-Esteem
106
City of Palo Alto
Operating Budget FY 2011
Library
DEPARTMENT SUMMARY FY 2010 Adopted Budget
FY 2009 Actuals
Library Services Administration Collection and Technical Services Public Services TOTAL EXPENDITURES TOTAL REVENUES INTERNAL REVENUES EXTERNAL REVENUES
380,278 1,834,257 4,009,133 $6,223,668 $292,750 0 292,750
710,943 1,802,899 3,871,195 $6,385,037 $339,080 0 339,080
FY 2010 Adjusted Budget
786,269 1,725,904 3,857,620 $6,369,793 $361,920 0 361,920
FY 2011 Adopted-inConcept Budget
714,808 1,758,562 4,047,352 $6,520,722 $266,330 0 266,330
FY 2011 Proposed Budget
1,090,062 1,596,056 3,734,631 $6,420,749 $271,128 0 271,128
FY 2011 Budget Change
303,793 (129,848) (122,989) $50,956 $(90,792) 0 (90,792)
% Chg
39% (8%) (3%) 1% (25%) 0% (25%)
FY 2009 Library Circulation per Capita PALO ALTO
Menlo Park
Santa Clara
Mountain View
Redwood City
Burlingame
Berkeley
Sunnyvale
0
5
10
15
20
25
30
Number of Items Circulated
Operating Budget FY 2011
City of Palo Alto
107
Library
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges
TOTAL EXPENDITURES TOTAL REVENUES Total Full Time Positions Total Temporary Positions
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
5,017,325 123,782 755,419 39,282 28,354 24,079 235,427
4,823,618 127,724 798,859 24,137 24,375 28,395 557,929
4,899,618 116,650 713,939 25,137 23,575 27,115 563,759
5,023,963 118,550 731,759 24,137 24,375 28,395 569,543
4,677,806 132,890 603,916 24,137 21,325 27,115 933,560
$6,223,668
$6,385,037
$6,369,793
$6,520,722
$6,420,749
$292,750
$339,080
$361,920
$266,330
$271,128
43.75 13.45
42.25 12.79
42.25 12.79
42.25 12.79
39.75 9.61
B ENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Percent of citizens who have used libraries or their services more than 12 times during last year (SEA) 2. Number of new titles/number of new volumes added to the collection 3. Number of items circulated (SEA) 4. Number of hours open annually (SEA) 5. Number of library programs (SEA)
34%
32%
32%
20,776/ 36,959 1,633,955 11,822 558
17,000/ 31,960 1,678,036 10,106 475
13,300/ 25,000 1,443,228 6,840 380
62% 2.70 / 4.37
56% 2.70 / 4.36
58% 2.72 / 4.39
90%
90%
91%
207 36,582
187 33,000
143 29,000
79%
70%
72%
73% 25.3 74.1
70% 25.7 83.4
65% 21.9 109.3
Efficienc y : 1. Percent of Palo Alto residents who are cardholders (SEA) 2. Number of titles/number of items in the collection per capita 3. Percent of first-time circulations checked out at self-service stations (SEA) 4. Number of hours of operation per FTE 5. Number of people attending programs (SEA)
Effe c t iveness: 1. Percent of citizens rating quality of public library services good or excellent (SEA) 2. Percent rating variety of library materials good or excellent (SEA) 3. Number of items circulated per capita (SEA) 4. Number library visits per hour
108
City of Palo Alto
Operating Budget FY 2011
Library BENCHMARKING MEASURES FY 2009 Actuals 5. Number of attendees per program
RESOURCE LEVEL CHANGES
65.6
FY 2011 Ongoing
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
69.5
FY 2011 One-Time
76.3
FY 2011 Total
RE VEN UE CHANGES Increase revenues to reflect historical trend Increase revenues generated by a collection agency
TOTAL REVENUE CHANGES
4,170 $4,170
Adjustments (Note1)
NET REVENUE CHANGES
$4,170
14,878
4,170 14,878
$14,878
$19,048
(109,840)
(109,840)
$(94,962)
$(90,792)
EXPENDITURE CHANGES Salary and Benefits Elimination of 1.0 FTE Senior Librarian Elimination of 0.5 FTE Library Assistant Elimination of 1.0 FTE Library Associate Elimination of 3.57 FTE Hourly positions (Note 4) Increase hourly salaries to reflect current salary rate Increase in personnel benefit costs (Note 2) Total Salary and Benefits Changes
(110,440) (38,990) (89,971) (168,173) 69,203 58,892 $(279,479)
Adjustments (Note1) Total Net Salary and Benefits Changes
$(279,479)
(18,333)
(110,440) (38,990) (89,971) (186,506) 69,203 58,892
$(18,333)
$(297,812)
76,000
76,000
$57,667
$(221,812)
Non-Salary Reduction in collection purchases Increase in collection agency fees Reduction in membership fees, volunteer appreciation event and supplies, and rental of microfilm equipment Increase in allocated charges (Note 3)
(117,343) 5,810
(117,343) 5,810
(6,300)
(6,300)
369,800
369,800
Total Non-Salary Changes
$251,967
$0
$251,967
TOTAL EXPENDITURE CHANGES
$(27,512)
$57,667
$30,155
20,801
20,801
$78,468
$50,956
Adjustments (Note1)
NET EXPENDITURE CHANGES
Operating Budget FY 2011
$(27,512)
City of Palo Alto
109
Library RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Personnel benefit costs have increased mainly due to a change in methodology of allocating benefit costs. Note 3: Allocated charges are increasing mainly due to a change in methodology of calculating Information Technology costs and the loan repayment to the Technology Fund. Note 4: Hourly positions of 0.39 FTE associated to the College Terrace Library are reflected as a one-time dollar reduction but will be reinstated when the branch reopens. Total hourly positions reflected in the budget document is 9.61 FTE which includes the 0.39 unfunded FTE.
SERVICE LEVEL CHANGES Service Level Increases
•
The Library will continue, through March 2011, a two-year pilot project in the LINK+ cooperative book lending system among member libraries. This program is provided through joint funding from the Friends of the Library and the City
•
Subject to availability of technology funding improve the functionality of the library's catalog from mobile devices, and add user-provided content, customer personalization and enhanced search capabilities to the catalog
Service Level Decreases
•
The College Terrace Library will remain closed in FY 2011, past the currently anticipated November 2010 renovation project completion date
•
The Downtown Library will be closed for renovation through FY 2011
•
Mitchell Park, Main and Children’s libraries will be closed on Mondays
•
Main and Mitchell Park libraries will close at 8 pm on Tuesdays, Wednesdays and Thursdays
•
Reduction of librarian staff will result in reductions in programming for all ages
•
The number of items added to the library collection will decrease by 3,500 books, and the number of electronic resources the Library subscribes to will be reduced due to an 18 percent reduction to the collection budget
110
City of Palo Alto
Operating Budget FY 2011
Planning and Community Environment
Planning and Community Environment Department Organizational Chart
1.0-PLANNING & COMMUNITY ENVIRONMENT DIRECTOR
Curtis Williams
ADMINISTRATION
ECONOMIC DEVELOPMENT
1.0-Administrator
1.0-Manager, Economic Development & Redevelopment
1.0-Administrative Assistant
PLANNING & TRANSPORTATION 1.0-Chief Planning & Transportation Official 1.0-Admin Associate III 1.0-Planning Arborist
CURRENT PLANNING 1.0-Planning Mgr 1.0-Admin Associate II 2.0-Senior Planner 3.0-Planner 1.0-Assoc Planner
ADVANCE PLANNING 1.0-Planning Manager 2.0-Admin Associate II 3.0-Senior Planner 1.0-Planner (CDBG) 3.0-Planner
BUILDING 1.0-Chief Building Official 1.0-Code Enforcement Officer
PLAN CHECK/COUNTER SERVICES 1.0-Asst Building Official 2.0-Plan Check Engineer 2.0-Building Technician 1.0-Admin Associate I
INSPECTION SERVICES 1.0-Inspection Services Supervisor 1.0-Building Inspector Specialist 4.0-Building Inspector
TRANSPORTATION 1.0-Chief Transportation Official 1.0-Admin Associate II 1.0-Transportation Engineer 1.0-Associate Transportation Engineer 1.0-Engineering Technician II 0.5-Commute Coordinator 1.0-Project Engineer
#
City of Palo Alto
Fiscal Year 2011 Position Totals - All Funds: 45.50 Full-time 2.34 Hourly
Operating Budget FY 2011
Planning and Community Environment Planning and Community Environment To provide the Council and community with creative guidance on, and effective implementation of, land use development, planning, economic development and redevelopment, transportation, housing and environmental policies, and plans and programs that maintain and enhance the City as a safe, vital, and attractive community. OVERVIEW The Department of Planning and Community Environment (PCE) work for Fiscal Year 2011 will be focused on significant development proposals and major planning efforts. Below is a summary of the ongoing efforts of the department:
C I T Y
O F
P A L O
A L T O
Advance Planning/Comprehensive Plan
The key focus of the Advance planning staff for the next year is the Comprehensive Plan Amendment. Work items to be completed during Fiscal Years 2010 and 2011 for the amendment include reviewing existing Comprehensive Plan policies, completing draft concept plans for California Avenue/Fry's and East Meadow Circle/West Bayshore areas, and developing sustainability text for incorporation in the Plan. It is anticipated that preparation of the EIR will also begin in early 2011. An update to the City's Housing Element will also be drafted as part of the Comprehensive Plan amendment during this timeframe and forwarded to the state for initial review. Community outreach and participation for the amendment process will include several citywide community meetings to discuss community services, transportation, housing, and sustainability issues. The Advance Planning team will also continue to work with the school district to monitor housing development and student generation and to participate in regional governance issues working with ABAG and other outside agencies. During Fiscal Year 2011, staff will be involved with the 2010 census compilation. Advance planning staff assists with affordable housing development projects such as the projects on the Alma Substation site and at 488 West Charleston Road by overseeing City funding for these projects. Advance Planning also administers the City's CDBG grant funding, which is used primarily to support affordable housing renovation and development. This past year the City also received conditional CDBG funding as part of the American Recovery and Reinvestment Act. Development Review
The Planning and Transportation Division continues to lead intensive planning and negotiation efforts regarding development proposals for the Stanford Medical Center. The Department will continue to hold public workshops, study sessions and meetings with the Architectural Review Board, Planning & Transportation Commission, and City Council regarding the project. Staff and a consultant team have been preparing the EIR for the project that will be circulated for public review in 2010, to be followed by formal hearings on the project plans and alternatives. The Division is also reviewing several other significant development projects, including the proposed Library projects. The Department will continue to monitor development of major projects for which planning entitlements were received in 2009 including the "Treehouse" project at 488 West Charleston, 801 Alma housing project, the redevelopment of the JJ&F market site at 2180 El Camino Real, the Palo Alto Bowl site proposed for a hotel and housing, mixed use building at 265 Lytton, commercial building at 2995 Middlefield, Lockheed Martin at 3251 Hanover, a mosque at 998 San Antonio, Mitchell Park Library and Community Center, a mixed use project at 420 Cambridge, commercial building at 2805 El Camino Real at the corner of Page Mill Road, the Elks Lodge at 4249 El Camino Real, and several other commercial redevelopment projects. Some Fiscal Year 2011 anticipated projects for continuing entitlement review are the Ming's site hotel redevelopment, the Edgewood Plaza shopping center redevelopment, 385 Sherman mixed use project, and the 195 Page Mill Road mixed use project.
Operating Budget FY 2011
City of Palo Alto
113
Planning and Community Environment Development Center and Building Review Process
Building Permit levels in Fiscal Year 2011 are expected to be similar to those in Fiscal Year 2010, reflecting the continued sluggish economy. Still, there are several noteworthy projects under construction that will be overseen by the Building Division including finalization of the Altaire multi-family and BRIDGE senior housing projects on the former Sun Microsystems campus, the Sterling Park and Redwood Gate housing developments, the renovation of the former Beckman-Coulter building at 1050 Page Mill Road into additional office space for Facebook, and the creation of a new corporate headquarter for Tesla Motors in the former Agilent building at 3500 Deer Creek Road. The Building Division will lead an inter-departmental effort to streamline plan review and permitting processes and improve customer service at the city's Development Center. This initiative, dubbed "Blueprint for a New Development Center," was launched in December 2009 and includes five elements - 1) convening DC focus groups, 2) soliciting staff input, 3) evaluating the DC organizational structure, 4) implementing technology upgrades, and 5) initiating a variety of customer service enhancements. Work on the Blueprint will continue throughout Fiscal Year 2011 and will gradually position the Development Center to improve the overall delivery of services and better support its customers. The Building Division also accomplished several noteworthy customer service initiatives in Fiscal Year 2010. These included publication of additional Inspection Guidelines Books covering Electrical Inspections and Reroof Projects, implementation of an automated inspection scheduling (IVR) system, initiation of an appointment-based plan review process for residential photovoltaic (PV) projects, increased processing of over-the-counter plan reviews and permits, and electronic imaging of completed project records for permanent storage in the city's GIS database. Finally, the Building Division will lead the transition to the new state building codes in January 2011 by developing local amendments for adoption by the City Council and then providing a comprehensive training program for staff and design and construction professionals who work in Palo Alto. Transportation Planning
In Fiscal Year 2010, the Transportation section completed several projects to increase safety and improve circulation on local streets and on school commute routes: the approval of the permanent retention of the residential arterial traffic calming project on Charleston Road, completion of the Pepper Avenue traffic calming project, the Maybell/Donald bicycle boulevard project, the College Terrace traffic calming trial evaluation and the installation of a new traffic signal at Embarcadero Road and Town and Country Village and Palo Alto High School. The Department worked with the Valley Transportation Authority (VTA) on the Community Bus Study for Palo Alto, a comprehensive study of ridership of VTA, Stanford, and Palo Alto bus routes, which resulted in new community bus routes in Palo Alto and a restructuring of the City's Crosstown shuttle service. Staff has developed input to High Speed Rail and Oregon Expressway projects, both of intense interest to much of the affected community. In Fiscal Year 2011, safe routes to school projects on North California Avenue and Greer Roads will be completed. Staff will finalize the plans and specifications for the El Camino Real/Stanford Avenue streetscape project, which will be constructed in Fiscal Year 2011 and will evaluate its effectiveness and cost after one year. Staff initiated the Residential Permit Parking Program for the College Terrace neighborhood in Fiscal Year 2010. Transportation staff will continue to work with the California High Speed Rail Authority, Caltrain Joint Powers
114
City of Palo Alto
Operating Budget FY 2011
Planning and Community Environment Board, and the Peninsula Cities Consortium to ensure that Palo Alto's interests are addressed as the San Francisco to San Jose High Speed Train project process. Staff will also work with Santa Clara County staff on the design of operational and safety improvements at the intersections along Oregon Expressway. Staff also expects the improvements at Stanford Avenue and El Camino Real to be designed and under construction during the year. In Fiscal Year 2011, the Arastradero Road trial (Phase 2 of the Charleston/Arastradero Road Corridor Project) will be initiated and an evaluation of the Park Boulevard Bicycle Boulevard project will be conducted. The City's Bicycle and Pedestrian Master Plan will be updated during the year and will proceed with the feasibility study for the Highway 101 pedestrian bridge at Adobe Creek. Green Building
The Department continues to implement the City's Green Building Ordinance and will be exploring the adoption of an updated Green Building Code to complement the new State Green Building Code that will become effective in January 2011. In the last year, the City's Green Building Ordinance, Construction and Demolition Debris Ordinance, and Energy Efficiency Ordinance were all amended to capture more projects and higher levels of environmental responsibility. A Water Efficient Landscape Ordinance is currently being developed and reviewed, to be adopted in Fiscal Year 2011. Several staff members are Green Building professionals and a consultant for the Individual Review Program is now a green point rater. Department staff participate in inter-departmental and inter-agency coordination of green building efforts, such as the City's Climate Protection Plan, and the Santa Clara County Cities Association Green Building Collaborative. Economic Development
The Division continues to focus on outreach to businesses and enhancing the economy of Palo Alto. A variety of tools to assist businesses have been initiated including the Downtown Business Improvement District (Palo Alto Downtown) and Destination Palo Alto. Destination Palo Alto, funded in Fiscal Year 2009 for $240,000, and set to operate as a pilot for an additional year in Fiscal Year 2010, is a partnership between the Silicon Valley/San Mateo County Visitor's Bureau, Palo Alto Chamber of Commerce, and the Palo Alto Weekly, and operates a visitor's center, has updated the Destination Palo Alto website, and has targeted off-peak hotel nights for occupancy. In March 2010, City Council will consider a staff recommendation to transition the Destination Palo Alto contract into the San Mateo County Tourism Business Improvement District (TBID). Hotels would contribute directly into the TBID and local Palo Alto marketing efforts and the visitor's center would continue. Events such as Stanford Admit Weekend will be used as vehicles to increase visitorship and transient occupancy revenue to the City, adding to the City's economic vitality. In addition to these activities, the Economic Development Division maintains relationships and works to advocate on behalf of businesses, property owners, and business associations in Palo Alto. Staff also participates in regional economic development partnerships that enhance the City's economic base and leverages existing City resources.
PROGRAM UPDATE The Planning and Community Environment Department has accomplished the following in new program and service implementation: In Fiscal Year 2008, the Department began an amendment to the City's Comprehensive Plan, which will continue through Fiscal Year 2011 and includes several components:
â&#x20AC;˘
Concept plans for California Avenue/Fry's and East Meadow Circle/West Bayshore areas
â&#x20AC;˘
New Sustainability Chapter
Operating Budget FY 2011
City of Palo Alto
115
Planning and Community Environment •
Revisions to the City's Housing Element
•
Review of existing policies and programs
•
Development of growth projections through 2020
•
Preparation of Environmental Impact Report
The Department continues to implement the City's Green Building Program in several ways:
•
Revised the green building, construction and demolition debris, and energy efficiency policies for private construction in 2009 to require more projects to comply, and increased the level of environmental responsibility.
•
Provided staff training and participated in several public forums to explain the City's green building requirements to private sector designers and contractors
•
Developed implementation policies, procedures, forms, website pages, and handouts for the Green Building Program
The Department has instituted several customer service enhancements at the Development Center:
•
Publication of new and expanded Inspection Guidelines Books formatted for the 2007 California Building Code
•
Restored afternoon counter hours for permit application submittals
•
Increased volume of over-the-counter plan checks performed from 53% to 75% and decreased the average time for issuance of permits from 80 days to 63 days
•
Restored 3-5 day plan review time for simple projects
•
Implemented pre-application screening meetings for large and/or complex projects to enhance completeness of permit submittal packages
•
Developed and implemented a Customer Satisfaction Survey that is available both on-line and in hard copy format
•
Implemented an automated inspection scheduling (IVR) system in October 2009
•
Developed a more user-friendly voice mail system for the Development Center
•
Began a program of electronic imaging of completed project records for permanent retention in the city's GIS database
•
Launched the "Blueprint for a New Development Center," a major initiative to streamline operations and enhance customer service at the city's Development Center
COUNCIL PRIORITY IMPLEMENTATION In Fiscal Year 2011, the Planning and Community Environment Department will implement most of the City Council's Top 5 Priorities as follows: City Finances
•
Provide outreach to local businesses to determine ways in which the City can assist business processes
•
Consider Comprehensive Plan and zoning changes to provide for land uses that generate revenues to the City, particularly retail sales tax and transient occupancy taxes
•
Re-invigorate pre-development meetings to assist businesses in anticipating planning and building entitlement requirements and streamlining the process, making outcomes more predictable
•
Increase visitorship and transient occupancy tax, continue to proactively market and promote Palo Alto hotels and businesses. Transition of the Destination Palo Alto program to a Tourism Business
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City of Palo Alto
Operating Budget FY 2011
Planning and Community Environment Improvement District will leverage the City's investment to maximize benefits to local hotels, retail businesses and restaurants. Stanford events, like Admit Weekend, will be positioned to enhance Palo Alto business participation •
In partnership with the Business Improvement District (BID) and the Palo Alto Chamber of Commerce, continue to identify and implement cost savings and streamlining efforts to enhance the Downtown retail and restaurant environment
Land Use and Transportation Planning
•
Work on the Comprehensive Plan Amendment will continue including a review of the existing Comprehensive Plan policies, completing draft concept plans, and developing sustainability text for incorporation into the Plan
•
The City's Housing Element will also be updated as part of the Comprehensive Plan amendment and will be forwarded to the state for initial review
•
Continue holding public workshops, study sessions and meetings with the Architectural Review Board, Planning & Transportation Commission, and City Council regarding the Stanford University Medical Center project. Staff will also work with the consultant team to finalize the Environmental Impact Report
•
Continue to develop input to the High Speed Rail project
•
Initiate the Arastradero Road trial (Phase 2 of the Charleston/Arastradero Road Corridor Project) along with the evaluation of the Park Boulevard Bicycle Boulevard project
•
Maintain support for affordable housing development and the Below Market Rate Housing Program in order to expand the availability of a range of housing types and affordability within the community
•
Promote alternatives to automobile use, including maintaining the City's shuttle system, implementing the Bicycle Transportation Plan projects including the Park Boulevard bicycle boulevard, coordinating the commute alternatives program for the City, and implementing traffic calming measures and other safety enhancements to school commute corridors, such as Charleston/Arastradero
Emergency Preparedness
•
Incorporate climate adaptation practices into planning activities, and promote them in building projects to reduce impact on communities or properties that may be vulnerable to extreme weather events and/ or sea level rise
Environmental Sustainability
•
Continue to develop and expand the City's Green Building Program, including evaluation of a local Green Building Code to become effective January 2011. This would include implementation of a revised Construction and Demolition Debris Diversion ordinance requirement to increase diversion, and adopting any necessary revisions to the green building ordinance and/or resolutions setting methods, systems, thresholds, and levels for green building compliance
•
Enhance the level of review and inspection under the California Energy Code, particularly for those projects with models exceeding code minimums
•
Enhance the level of review and inspection for landscape water efficiency
•
Track environmental sustainability indicators, including but not limited to tons of waste diverted, electricity and gas savings, green house gas emissions, and gallons of water reduced
•
Standardize review and methodologies for the green house gas emission sections of projects requiring an Environmental Impact Report
Operating Budget FY 2011
City of Palo Alto
117
Planning and Community Environment •
Enhance facilitation of the use of solar photovoltaic systems and other new energy technologies
•
Amend the Comprehensive Plan to include sustainability goals, policies, and programs
•
Continue to promote the retention and restoration of historic homes and commercial structures
•
Promote land use planning practices that sequesters, avoids and/or reduces green house gas emissions from current levels
DEPARTMENT SUMMARY FY 2010 Adopted Budget
FY 2009 Actuals
Administration Planning and Transportation Building Economic Development TOTAL EXPENDITURES TOTAL REVENUES INTERNAL REVENUES EXTERNAL REVENUES
194,010 5,741,960 3,538,048 422,234 $9,896,252 $5,110,229 164,834 4,945,395
626,096 5,649,513 3,128,814 460,946 $9,865,369 $5,639,364 128,000 5,511,364
FY 2011 Adopted-inConcept Budget
FY 2010 Adjusted Budget
745,266 5,546,265 3,122,550 455,940 $9,870,021 $4,820,864 128,000 4,692,864
631,825 5,711,735 3,183,166 225,550 $9,752,276 $5,739,364 128,000 5,611,364
FY 2011 Proposed Budget
FY 2011 Budget Change
856,334 4,911,654 3,080,861 236,994 $9,085,843 $4,827,364 128,000 4,699,364
111,068 (634,611) (41,689) (218,946) $(784,178) $6,500 0 6,500
% Chg
15% (11%) (1%) (48%) (8%) 0% 0% 0%
Number of Building Permits Issued Mountain View
Milpitas
Sunnyvale
San Mateo
PALO ALTO
0
1000
2000 2007-08
118
City of Palo Alto
3000
4000
5000
6000
2008-09
Operating Budget FY 2011
Planning and Community Environment
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges Operating Transfers Out
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
6,985,753 1,807,266 39,832 28,120 350,167 294,069 383,438 7,607
6,746,370 1,582,317 52,819 12,335 394,709 299,222 769,990 7,607
6,744,599 1,621,155 30,599 11,978 379,043 299,222 775,818 7,607
6,873,277 1,342,317 52,819 12,335 394,709 299,222 769,990 7,607
6,456,353 1,101,561 31,165 11,300 398,859 299,222 779,776 7,607
TOTAL EXPENDITURES
$9,896,252
$9,865,369
$9,870,021
$9,752,276
$9,085,843
TOTAL REVENUES
$5,110,229
$5,639,364
$4,820,864
$5,739,364
$4,827,364
53.30 0.95
48.85 1.63
48.85 1.63
48.85 1.63
43.60 2.34
Total Full Time Positions Total Temporary Positions
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. 2. 3. 4. 5. 6. 7.
Number of building permits issued (SEA) Number of building inspections completed (SEA) Number of planning applications completed (SEA) Number of zoning plan checks completed Number of new code enforcement cases (SEA) Number of Palo Alto Shuttle boardings (SEA) Average number of City employees participating in the City commute program each month (SEA)
2,543 17,945 273 543 545 136,511
2,642 14,475 223 447 575 139,000
2,741 15,000 245 488 650 141,000
124
111
122
509
528
548
3,589 45 91 273 $2.61
2,895 37 75 288 $2.56
3,000 40 81 288 $2.67
Efficienc y : 1. Number of building permits issued (per plan checker/building technician FTE) 2. Number of building inspections (per inspector FTE) 3. Number of planning applications completed (per current planner FTE) 4. Number of zoning plan checks completed (per current planner FTE) 5. Number of code enforcement cases (per code enforcement officer FTE) 6. City's cost per Palo Alto Shuttle rider (SEA)
Operating Budget FY 2011
City of Palo Alto
119
Planning and Community Environment B ENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Effe c t iveness: 1. Percent of building inspection requests for permitted work responded to within one day - target is 90% (SEA) 2. Average number of weeks to complete planning staff-level applications (represents 98% of total volume) (SEA) 3. Percent of zoning plan checks completed within 4 week target 4. Percent of residents surveyed rating the ease of walking in Palo Alto as "good" or "excellent" (SEA survey) 5. Percent of residents surveyed rating the ease of bicycle travel in Palo Alto as "good" or "excellent" (SEA survey)
RESOURCE LEVEL CHANGES
98%
98%
98%
10.7 weeks
13.0 weeks
13.0 weeks
67%
67%
69%
81%
n/a
n/a
70%
n/a
n/a
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VENUE CHANGES Decrease zoning plan check fee Increase architectural review board fee Increase plan checking fee Decrease valet fee Decrease parking permit-construction/maintenance vehicles fee Decrease building-new construction permit fee
(10,000) 40,000 25,000 (3,500) (20,000) (25,000)
(10,000) 40,000 25,000 (3,500) (20,000) (25,000)
TOTAL REVENUE CHANGES
$6,500
$0
$6,500
NET REVENUE CHANGES
$6,500
$0
$6,500
EXPENDITURE CHANGES Salary and Benefits Elimination of 1.0 FTE Administrative Associate I Elimination of 1.0 FTE Building Inspector Specialist Elimination of 1.0 FTE Senior Planner Elimination of 1.0 FTE Building/Planning Technician Elimination of 1.0 FTE Code Enforcement Officer Transfer of .30 FTE Planner to Utilities Drop 1.0 FTE Transportation Manager and Add 1.0 FTE Chief Transportation Official Reduce temporary salaries Personnel Benefit Costs Increase (Note 2)
TOTAL SALARY AND BENEFITS CHANGES
(88,997) (135,742) (158,886) (104,329) (122,135) (41,260)
(88,997) (135,742) (158,886) (104,329) (122,135) (41,260)
30,077
30,077
(9,000) 342,033
(9,000) 342,033
$(288,239)
$0
$(288,239)
Non-Salary Decrease instruction/training and travel/meeting
120
City of Palo Alto
(18,255)
(18,255)
Operating Budget FY 2011
Planning and Community Environment RESOURCE LEVEL CHANGES Decrease GIS planning Decrease office supplies Decrease engineering Decrease shuttle program (eliminate noon and marguerite shuttles, eliminate one bus and reduce crosstown to hourly stops) Allocated Charges increase (Note 3)
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
(21,753) (11,934) (6,271)
(21,753) (11,934) (6,271)
(196,082)
(196,082)
3,951
3,951
Total Non-Salary Changes
$(250,344)
$0
$(250,344)
TOTAL EXPENDITURE CHANGES
$(538,583)
$0
$(538,583)
(245,595)
(245,595)
$(245,595)
$(784,178)
Adjustments (Note 1)
NET EXPENDITURE CHANGES
$(538,583)
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time appropriation changes from the prior year that did not carry forward from the FY2010 budget. Note 2: Personnel benefit costs have increased mainly due to reductions in proposed staffing levels and a change in methodology of estimating benefit costs. Note 3: Allocated charges have increased mainly due to a change in methodology of calculating Information Technology costs and the loan repayment to the Technology Fund.
SERVICE LEVEL CHANGES In this Fiscal Year 2011 proposed budget, the target reduction of $888,000 by the Planning and Community Environment Department has been met with the following salary and non-salary expense reductions and corresponding service level impacts. There are five positions proposed to be eliminated from the Planning and Community Environment Department budget in this FY 2011 budget process. Three of the positions are vacant and two are filled: a. 1.0 Senior Planner (vacant) would reduce current planning service levels, senior staff leadership and staff capability to take on projects such as ordinance revisions and development process modifications; b. 1.0 Building Inspector Specialist (vacant) would reduce inspection service levels, requiring added contract services if development levels increase; c. 1.0 Administrative Associate I (vacant) would reduce customer service levels at the Development Center and/ or on the 5th floor; d. 1.0 Building/Planning Technician (filled) would reduce coverage at the Development Center; and e. 1.0 Code Enforcement Officer (filled) would substantially reduce compliance efforts to address code violations in the field.
Operating Budget FY 2011
City of Palo Alto
121
Planning and Community Environment Additional proposed non-salary budget reductions include eliminating the GIS Planning budget, assumed to be addressed by the Administrative Services Department in line with the GIS transition initiated 2 years ago (though this may instead reduce GIS responsiveness if ASD has reduced staff as well); the elimination of the Marguerite and Noon shuttles, plus eliminating one bus on the Crosstown shuttle. Stanford has already eliminated the Marguerite Shuttle. Service level impacts would not be substantial for the Noon shuttle since there is currently little ridership. The elimination of one bus on the Crosstown shuttle would cause an approximately 50 percent decrease in service, but the system could still serve most critical areas and times at a reduced frequency. Department instruction and training budgets have been reduced by 38 percent, impacting department professional development. Other non-salary expense has been reduced, which includes a 37 percent reduction in office supplies. The department will need to only order the most essential office supplies and more carefully monitor the usage of the copiers.
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City of Palo Alto
Operating Budget FY 2011
Police Department
Police Department Organizational Chart
1.0 POLICE CHIEF DENNIS BURNS POLICE PERSONNEL SERVICES
ADMINISTRATION
1.0-Police Lieutenant 1.0-Police Agent/Officer 1.0-Admin Associate II 1.0-Program Assistant II
1.0-Assistant Chief of Police 1.0-Senior Administrator 1.0-Administrative Assistant
TECHNICAL SERVICES
FIELD SERVICES
INVESTIGATIVE SERVICES
1.0-Coordinator, Technical Serv 1.0 Court Liaison 1.0-Business Analyst 1.0-Crime Analyst 1.0- Public Safety Dispatcher - Lead 1.0-Code Enforcement Officer 1.0- Communications Technician
1.0-Police Captain
1.0-Police Captain 1.0-Administrative Associate II 2.0-Police Sergeant 9.0 Police Agent/Officer 2.0-Property/Evidence Technician
1.0-Police Agent/Officer 1.0-Administrative Associate II FIELD SERVICES (PATROL) 4.0-Police Lieutenants 11.0-Police Sergents 52.0-Police Agent/Officers
DISPATCHING SERVICES 1.0-Supervisor, Police Services 4.0-Public Safety Dispatcher, Lead 16.0-Public Safety Dispatcher
FIELD SERVICES (PARKING) 1.0-Supervisor, Police Services 9.0-Community Service Officer
INFORMATION MANAGEMENT 1.0-Supervisor, Police Services 1.0-Police Records Specialist - Lead 6.0 -Police Records Specialist
Fiscal Year 2011 Position Totals -All Funds: 151.00 Full-time 4.45 Hourly
ANIMAL SERVICES 1.0-Superintendent, Animal Serv 1.0-Supervisor, Animal Serv 1.0-Veterinarian 4.5-Animal Control Officer 1.0-Animal Service Specialist 1.0-Animal Service Specialist II 2.0-Veterinarian Technician 0.5-Volunteer Coordinator
Police Police To proudly serve and protect the public with respect and integrity. OVERVIEW In Fiscal Year 2011, due to the economic health of the City, the Police Department has proposed eliminating 10.5 positions. The resulting service level reductions may impact some Council priorities for 2010, specifically Emergency Preparedness and Community Collaboration for Youth Well Being. Other Police services impacted due to budget changes include traffic and school safety, crime prevention programs and community engagement, investigations of white collar crime, and the collection, analysis and reporting of demographic data from officer contacts to the City Council and the public. A detailed account of the impacts to the community can be found in the service level section of this document.
C I T Y
O F
P A L O
A L T O
The Police Department will continue to partner with the City Manager's Office to coordinate citywide functions of emergency preparedness and response to catastrophic events. This year, the Department deploy a regional Mobile Command Vehicle which will enhance field operations and communications capabilities at the scene of an incident and allow for greater integration of mutual aid resources at the scene of a regional disaster or critical incident. Significant grant funding augmented funds provided by Council enabling the purchase of a vehicle with enhanced capabilities. This vehicle is capable of being used as a back-up 9-1-1 Center and can support an alternate Emergency Operations Center (EOC). The Department is also participating in several regional initiatives that improve emergency preparedness. The Silicon Valley Regional Interoperability Project (SVRIP) has built a county-wide microwave network for secure wireless communications between the Santa Clara County Cities and the County. Palo Alto plans to leverage this system to provide connectivity with Mountain View and Los Altos for other regional projects. Those projects include a joint interagency Computer Aided Dispatch (CAD) system for the three cities. Palo Alto, Mountain View and Los Altos, will complete the design phase for a the CAD system and plan to begin implementation in the coming fiscal year. In 2011, the three cities intend to replace their existing 9-1-1 telephone infrastructure with a combined system. These initiatives provide enhanced technology and the opportunity to share resources and improve emergency response. In addition, this virtual consolidation effort will reduce costs and provide the three agencies with redundant capabilities for critical systems. Radio communication infrastructure is a critical component of emergency preparedness and the Department supports and maintains the City-wide radio system. Several upgrades are anticipated for the coming year including the replacement of the antennas on the City Hall roof and the aging, seismically vulnerable radio tower on the roof of the MSC with a standalone monopole. The expansion of the Geographic Information System (GIS) to include "tactical layer information" for certain critical infrastructure and key resources, including schools, retail centers, and other sites is being considered. The system will be extended to other Emergency Operation Centers (EOC) (Stanford, PAUSD, etc.) as well as to community and non-governmental organizations via a putative Community Disaster Network. Such efforts will be synchronized with the pending Disaster Resiliency Center at Moffett Field and the Bay Area Regional Coordination Plan (RECP). Staff is proposing match funding and support from the Palo Alto Unified School District (PAUSD) to be able to continue with the School Resource Officer (SRO) program and the Parent Project. The Parent Project is a program designed to assist parents who have troubled or at-risk children. In collaboration with Community Services, the Department will continue to participate in Track Watch, a program to intervene and prevent teen suicides.
Operating Budget FY 2011
City of Palo Alto
125
Police In conjunction with the City's Climate Protection Plan (CCP), the Department will continue to promote measures to reduce greenhouse gas emission levels. These recommendations include encouraging employees to use alternate commute strategies, reduce electricity usage for charging flashlight batteries through new LED technology, and replace Department vehicles with CNG where able. The Department will continue its efforts to ensure accountability and increase trust with the community. Staff will continue to consult with national experts in the field of promoting fair and equitable policing. The Community Advisory Group will continue to meet to develop trust and create a dialogue on race and police practices and policies. The Department will continue to work closely with the Independent Police Auditor to ensure that the Department is in compliance and to determine if any policies need updating or modification.
PROGRAM UPDATE Civic Engagement •
Began monthly meetings with the Community Advisory Group, a diverse group of citizens to advise the Police Chief on police practices and race relations.
•
Enlisted the Independent Police Auditor to review and make recommendations on department policy, training, and practices as part of the City's response to community concerns about bias-based policing.
•
Continued the Parent Project in conjunction with the Palo Alto Unified School District (PAUSD). This 12week program assisted over 30 families with troubled or at-risk children.
•
The Department continues to compile demographic data on police contacts and regularly posts the information on the Department's website, as well as publishes reports to City Council. This year the Department was proud to report a 100% compliance rate of reportable contacts.
Emergency Disaster Preparedness •
Participated in the Emergency Preparedness Steering and the Emergency Preparedness Working Groups. These groups develop strategies and objectives to improve cross departmental response during an emergency. This year the groups continued to develop strategic, city-wide objectives to improve response during an emergency or disaster.
•
Participated in Urban Shield '09, a region-wide, 50-hour exercise to assess law enforcement's ability to cope with, and manage large scale natural disasters and terrorism related incidents.
•
Participated in the Northern California Regional Intelligence Center's (NCRIC) group. The group's mission is to collect, evaluate, analyze, and disseminate timely information related to terrorist threats, criminal events, organized criminal activity, narcotics organizations, gang activity or serial crime events to government and private agencies, and to provide a platform of interagency cooperation, communication, training and technical/equipment support to the jurisdictions in the area.
•
Supported by $300,000 in additional funding from the Anti-Terrorism Approval Authority for State Homeland Security and the Bay Area Urban Area Security Initiative (BAUASI), finalized the design and began production on a regional Mobile Command Vehicle which will support an alternate Emergency Operations Center (EOC). The City is expected to take delivery in June 2010.
•
Continued deployment of the Automatic Vehicle Location (AVL) mapping system in Police and Fire vehicles and completed the installation of the upgraded GIS mapping and AVL application in all patrol vehicles and dispatch workstations. This system will allow dispatchers to send emergency response personnel based on closest location and will reduce the response times to emergencies. It will also enhance situational awareness for incident commanders and field supervisors.
•
Completed the first phase of the Ecomm Network, the county-wide digital microwave system connecting
126
City of Palo Alto
Operating Budget FY 2011
Police 19 agencies throughout Santa Clara County. This system provides a private public safety network between the agencies in Santa Clara County and will provide a pathway for variety of critical applications and systems. •
Selected a vendor and entered the design phase for a joint agency regionalized Computer Aided Dispatch (CAD) system. This project will improve information sharing, especially during an emergency or disaster, between the 9-1-1 centers in Palo Alto, Mountain View, and Los Altos.
•
Completed design and began construction on a Mobile Command Vehicle that will provide back-up communications capabilities and support during critical incidents.
•
Council approved the Palo Alto/Stanford Citizen Corps Council (CCC). The CCC structure allows the City and the various other stakeholders to achieve economies of scale and to share best practices as well as tangible assets.
•
Neighborhood Block Preparedness Coordinators (BPC) Program has grown and now provides the EOC with "eyes and ears" in a major disaster and were used to check on at-risk residents and report other needs during the February power failure.
•
Through the CCC, businesses, medical facilities, and other private-sector entities are now also poised to participate in our ICS. Substantial outreach and training is ongoing with the private sector, especially with a view to protect sites with the potential for high economic impact (such as the Stanford Shopping Center).
•
The CCC and other related nascent endeavors show promise for public-private partnering that are consistent with the concept of community policing and engagement. Such initiatives will permit certain services erstwhile performed by staff (such as Neighborhood Watch training) to be subsumed by community volunteers. However, the City must dedicate defined staff resources to ensure continuity and provide requisite guidance.
•
The City was selected as one of only six in the nation to host the Department of Homeland Security Center for Infrastructure Assurance and Security (CIAS) cyber security training program. The 2009 sabotage of fiber optic cable lines in San Mateo County and in Santa Clara County illustrate our collective vulnerabilities regarding this form of terrorism.
•
Police Animal Services is deploying a new County-sponsored Animal Disaster Trailer to augment our ability to handle animal companions which otherwise may be excluded from traditional shelters.
•
Continued Council-directed work to implement the Foothills Emergency Plan, including regional planning for evacuation and mutual aid.
•
School protection and other critical infrastructure: Continued "Code Red" school lockdown training. Performing tactical surveys of schools, hospitals, malls, and other at-risk or critical sites. Working with private sector to conduct joint training.
Traffic Safety and Calming Efforts •
Participated in the Santa Clara County "Avoid the 13" Holiday Campaign in which Palo Alto officers made 39 arrests for driving under the influence within the two-week enforcement period.
•
Participated in the month long "Click it or Ticket" Campaign sponsored by Santa Clara County designed to ensure vehicle occupant safety through the use safety belts. Officers issued 121 seat belt violations during the campaign and achieved 93% compliance.
•
Participated in the State of California Office of Traffic Safety "Specialized Traffic Enforcement Program" (STEP) and worked a red light campaign issuing 55 citations during the first quarter of the grant.
•
Participated in programs such as "Adopt-A-School" and "Operation Safe Passage" designed to maximize
Operating Budget FY 2011
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127
Police enforcement efforts around the schools to insure pedestrian safety. Palo Alto traffic officers held "Bike Rodeos" at the various Palo Alto Elementary Schools and taught third grade students bicycle safety. •
Palo Alto traffic officers taught juvenile traffic diversion classes for the Santa Clara County Traffic Community Safety Network (TCSN). These classes are the department's effort to take an educational approach to youth enforcement though participatory diversion classes in-lieu of fines.
Crime Suppression/Investigation Efforts •
Obtained convictions in two high profile cases: a homicide in downtown Palo Alto and a child abduction/ sexual assault.
•
Made significant arrests in connection with an arson and a homicide in downtown Palo Alto, multiple arsons at neighborhood schools, and several groups responsible for numerous residential and auto burglaries.
•
Completed design specifications and purchased a bar-coding system. Combined with the new and concurrent report writing forms, the bar-coding system will improve the Department's property and evidence processing and management while ensuring the integrity of the chain of custody for evidence.
Environmental Protection •
In accordance with the Climate Protection Plan (CPP), the Department has started to implement recommendations previously made to reduce greenhouse gas emission levels including changes to workflows that reduce paper usage, the installation of secondary battery systems into patrol cars to reduce engine idling at traffic incidents, and the education of personnel on ways to reduce waste. Department actively participates on the Citywide committee.
COUNCIL PRIORITY IMPLEMENTATION Emegency Preparedness •
The Department will deploy a regional Mobile Command Vehicle which will enhance field operations and communications capabilities at the scene of an incident and allow for greater integration of mutual aid resources at the scene of a regional disaster or critical incident. This vehicle is capable of being used as a back-up 9-1-1 Center and can support an alternate EOC.
•
In conjuction with the Silicon Valley Regional Interoperability Project (SVRIP), Palo Alto plans to leverage this system to provide connectivity with Mountain View and Los Altos for other regional projects.
•
Upgrades to the City’s existing radio infrastructure will include the replacement of the antennas on the City Hall roof and the aging, seismically vulnerable radio tower on the roof of the MSC with a standalone monopole.
•
The expansion of Geographic Information System (GIS) to include "tactical layer information" for certain critical infrastructure and key resources, including schools, retail centers, and other sites is being considered. The system will be extended to other Emergency Operation Centers (EOC) (Stanford, PAUSD, etc.) as well as to community and non-governmental organizations via a putative Community Disaster Network. Such efforts will be synchronized with the pending Disaster Resiliency Center at Moffett Field and the Bay Area Regional Coordination Plan (RECP).
Community Collaboration for Youth Health and Well-being •
128
Staff is proposing match funding and support from the Palo Alto Unified School District (PAUSD) to be able to continue with the School Resource Officer (SRO) program and the Parent Project. The Parent Project is a program designed to assist parents who have troubled or at-risk children.
City of Palo Alto
Operating Budget FY 2011
Police â&#x20AC;˘
In collaboration with Community Services, the Department will continue to participate in Track Watch, a program to intervene and prevent teen suicides.
Environmental Sustainability â&#x20AC;˘
In conjunction with the City's Climate Protection Plan (CCP), the Department will continue to promote measures to reduce greenhouse gas emission levels. These recommendations include encouraging employees to use alternate commute strategies, reduce electricity usage for charging flashlight batteries through new LED technology, and replace Department vehicles with CNG where applicable.
DEPARTMENT SUMMARY FY 2009 Actuals
Administration Field Services Technical Services Investigations and Crime Prevention Services Traffic Services Police Personnel Selection Animal Services Parking Services TOTAL EXPENDITURES TOTAL REVENUES INTERNAL REVENUES EXTERNAL REVENUES
Operating Budget FY 2011
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
FY 2011 Budget Change
% Chg
425,083 13,585,159 4,955,795
466,771 13,401,085 6,651,516
458,371 13,279,606 6,684,099
470,498 14,289,037 6,749,276
529,822 13,889,207 6,864,917
71,451 16% 609,601 5% 180,818 3%
3,675,698
3,578,625
3,594,625
3,762,042
3,240,967
(353,658) (10%)
1,833,679 1,882,320 1,943,782 1,985,846 704,191 1,035,533 1,019,224 1,039,874 973,293 1,018,100 1,710,530 1,731,726 1,741,316 1,764,563 1,684,988 1,086,063 1,268,173 1,272,853 1,287,872 1,226,796 $28,245,300 $29,998,316 $30,010,185 $31,328,358 $29,180,762 $4,614,385 $5,191,217 $4,985,199 $5,204,214 $4,764,271 497,376 512,000 602,000 512,250 512,000 4,487,823 4,692,214 4,162,271 4,102,135 4,679,217
(1,239,591) 4,341 (56,328) (46,057) $(829,423) $(220,928) 104,624 (325,552)
(64%) 0% (3%) (4%) (3%) (4%) 21% (7%)
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Police
2008 FBI Violent Crime Index Per 1,000 Residents East Palo Alto Sunnyvale Santa Clara San Mateo Redwood City PALO ALTO Milpitas Mountain View Menlo Park
0.00
2.00
4.00
6.00
8.00
10.00
12.00
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges
TOTAL EXPENDITURES TOTAL REVENUES Total Full Time Positions Total Temporary Positions
130
City of Palo Alto
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
25,113,481 1,157,531 372,048 45,088 265,274 2,808 1,289,070
25,176,626 1,295,852 415,530 79,500 337,415 2,950 2,690,443
25,239,988 1,276,915 421,551 59,140 296,619 2,950 2,713,022
26,521,493 1,295,852 415,530 79,500 319,415 2,950 2,693,618
24,271,019 987,102 447,130 79,500 202,915 2,950 3,190,146
$28,245,300
$29,998,316
$30,010,185
$31,328,358
$29,180,762
$4,614,385
$5,191,217
$4,985,199
$5,204,214
$4,764,271
164.00 5.51
161.50 5.26
161.50 5.26
161.50 5.26
151.00 4.45
Operating Budget FY 2011
Police
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Number of total calls for service (SEA)
53,275
60,000
60,000
7:05 4:43
10:00 6:00
10:00 6:00
24:07
45:00
45:00
84%
90%
90%
Efficienc y : 1. Average response time from receipt to on-scene urgent calls (SEA) 2. Average response time from receipt to on-scene emergency calls (SEA) 3. Average response time from receipt to on-scene non-emergency calls (SEA)
Effe c t iveness: 1. Percentage of those surveyed rating police services as good or excellent (SEA)
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VEN UE CHANGES Parking violation citation revenue decline, net of municipal fee increase Elimination of leaf blower program Loss of revenue due to elimination of the Traffic Team Decrease in reimbursement from Stanford for communication services Increase in Animal Services municipal fees Parent Project class revenue Reimbursement from Palo Alto Unified School District for School Resource Officer Silicon Valley Regional Interoperability Project revenue Leased line revenue from various participants Reimbursement for ballistic vest replacement Adjustment to dispatch services and alarm monitoring services provided to Utilities
TOTAL REVENUE CHANGES
(475,000) (20,000) (100,000) (67,316) 47,200 4,600
(475,000) (20,000) (100,000) (67,316) 47,200 4,600
83,570
83,570
5,000 2,600
5,000 2,600 0
10,000
$(429,346)
Adjustments (Note 1)
NET REVENUE CHANGES
90,000
90,000
$(429,346)
$10,000
$(429,346)
198,418
198,418
$208,418
$(220,928)
EXPENDITURE CHANGES Salary and Benefits Elimination of 0.50 FTE Code Enforcement Officer Elimination of 1.0 FTE Crime Analyst Elimination of 1.0 FTE Police Agent - Traffic Team Elimination of 3.0 FTE Police Officer - Traffic Team
Operating Budget FY 2011
(61,068) (116,178) (183,139) (497,601)
(61,068) (116,178) (183,139) (497,601)
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Police RESOURCE LEVEL CHANGES Elimination of 1.0 FTE Police Sergeant - Traffic Team Elimination of 2.0 FTE Police Officer - Investigations Elimination of 1.0 FTE Police Records Specialist II Elimination of 1.0 FTE Program Coordinator Decrease in temporary salaries Decrease in overtime expense for providing police services to city sponsored events Personnel Benefit Costs Decrease (Note 2) Total Salary and Benefits Changes
FY 2011 Ongoing
FY 2011 Total
(205,886) (331,734) (86,360) (102,669) (41,587)
(205,886) (331,734) (86,360) (102,669) (41,587)
(32,000)
(32,000)
(55,813)
(55,813)
$(1,714,034)
Salary Increase (Note 3) Adjustments (Note 1)
TOTAL NET SALARY AND BENEFITS CHANGES
FY 2011 One-Time
$(1,714,034)
$0 $(1,714,034) 808,429 (63,364)
808,429 (63,364)
$745,065
$(968,969)
Non-Salary Supplies for Animal Services Decrease in booking fees expense Transfer cost of School Crossing Guards to PAUSD Increase cost for Santa Clara County Crime Lab Silicon Valley Regional Interoperability Project expense Leased line expense increase Ballistic vest replacement Costs associated with the Parent Project Increased cost for the California Chapter of the National Emergency Number Association (CalNENA) Change in allocated charges Technology Fund repayment Total Non-Salary Changes
9,000 (130,000) (345,000) 14,000 20,250 10,500 4,600
9,000 (130,000) (345,000) 14,000 20,250 10,500 20,000 4,600
3,000
3,000
17,643 459,482
17,643 459,482
20,000
$63,475
$20,000
$83,475
56,071
56,071
$63,475
$76,071
$139,546
$(1,650,559)
$821,136
$(829,423)
Adjustments (Note 1)
TOTAL NET NON-SALARY CHANGES NET EXPENDITURE CHANGES
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenue and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Personnel benefit costs have decreased mainly due to reductions in proposed staffing levels and a change in methodology of estimating benefit costs.
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Police Note 3: The Palo Alto Peace Officers Association (PAPOA) voted to defer their negotiated 6 percent salary increase for FY 2010 to FY 2011. This results in an $0.8 million salary and benefits increase in FY 2011.
SERVICE LEVEL CHANGES •
The elimination of the Code Enforcement Officer may result in longer wait times for permits and complaint reviews, extended response time to citizens' appeals of alarm fines and additional time between permit applications and issuance.
•
The elimination of the Crime Analyst would eliminate demographic data collection and reporting. The Crime Analyst Program analyzes data and creates reports for the Department and the public on crime trends and suspects. The Crime Analysts support the detectives in developing intelligence and information on criminal activity. Approximately 80% of the Crime Analyst's time is spent compiling and analyzing demographic data. Public crime mapping and reports/analysis would also be reduced or eliminated. The resulting reduction in statistical analysis and intelligence development for detectives and the Department, may affect crime clearance rates.
•
The elimination of 5.0 FTE (one Police Sergeant - Advanced, one Agent - Advanced, and three Police Officer - Advanced) would effectively eliminate the Traffic Division and would critically impact the amount of aggressive and targeted proactive traffic enforcement throughout the City including school zones. The elimination of the Traffic Team would impact school safety programs such as Safe Routes to Schools, Adopt-a-School, Bicycle Rodeos, and the School Crossing Guard Program. Traffic complaints from residents may not be responded to in a timely manner, as these neighborhood and business district issues would now be patrol based, and as such, prioritized against other calls-for-service. Since the Traffic Team issues over 50% of all the traffic citations and are responsible for 20% of the DUI arrests by the Department, the number of accident and DUI related problems may increase due to the lack of directed enforcement. The elimination of the Traffic Team may impact programs including DUI Grants and Enforcement, Red Light Running, Click it or Ticket, Specialized Commercial Enforcement, Truck Route violations and targeted neighborhood traffic enforcement. The traffic team works primarily daytime and early evening hours, during the week, and augments patrol thus offsetting the increased daytime population and reducing the ratio of officer to public. The absence of the traffic team will increase priority response times as the traffic team will no longer be able to respond to priority calls and assist with patrol during busy times. The traffic team works on motorcycles which enables them to more easily get into congested areas for priority calls and specialized traffic enforcement. The loss of the traffic team will also impact the Department's ability to immediately commit resources to in-progress crimes or critical incidents.
•
The elimination of two Police Officer - Intermediate positions in the Detective Bureau would mean the Department would no longer investigate financial loss, fraud or identity theft. The Department would no longer have a central point of contact for Suspicious Activity Reports which are mandatory reports, numbering in the thousands per year, produced by local banks, investment firms and businesses. Along with this loss, comes the elimination of the liaison with major technology firms and legal offices. The Department estimates it would no longer investigate, beyond a basic report of the case by the responding patrol officer, approximately 350 calls for service and 2,000 Suspicious Activity and Internet complaint reports per year. The financial crimes detectives account for 20% of the staffing in the Investigations Unit. These positions also assist other detectives during complex, labor intensive and socially sensitive investigations, major crimes or crime trends such as homicide, rape, robbery or burglary cases.
•
In 2009, Records Specialist II position was eliminated; the elimination of an additional position would amount to a 30% staff reduction in the Police Records Unit since 2001. This reduction would seriously impact the ability of the Records Unit to complete mandated reporting to the Department of Justice
Operating Budget FY 2011
City of Palo Alto
133
Police (DOJ) and its ability to support the Patrol and Investigative Services (ISD) divisions. The Records unit reduced public hours in 2009 and a further reduction of public hours would be necessary to meet the minimum mandatory reporting requirements and provide some support to the detectives and patrol. Although the details have yet to be determined, there is a possibility of closing to the public every Friday and reducing business hours to 24 hours a week (from 45 hours a week in 2001). The reduction in public hours will necessitate that patrol officers respond to rountine calls for service such as citation sign offs and vehicle releases currently handled by Records Specialists. In 2003, due to prior budget reductions in the patrol division, the Department initiated on-line reporting for a limited number of crimes without suspect information. Records Specialists are responsible for entering those reports into the Records Management System (RMS) and assigning case numbers for the victims' documentation. The elimination of this position would mean that on-line reporting capability would be reduced or eliminated entirely, resulting in less identifiable crime trends. •
During the late 1980s the Department maintained a staff of 14 to personnel dedicated to provide crime prevention services and public outreach. Due to previous budget constraints, staff was reduced and services were also reduced or eliminated. The Program Coordinator provides positive outreach to the community through multiple programs and public education. The following services would be eliminated: Neighborhood Watch, Community Newsletter (4 per year), Community Events and Fairs (10 per year), Community Education Programs, Coordination of the Officer Request for Services Program (150 per year). This position is also responsible for coordinating public education efforts in Emergency Preparedness by working with Block Coordinators, Neighborhood Watch Captains and PANDA. Currently the program conducts two citizen police academies per year which serving up to 60 citizens per year. In addition, a Student Academy Program has been added. The elimination of the position effectively dissolves the program and compromises the department’s ability to engage in community partnerships and proactive crime prevention.
•
The Police Department has traditionally provided police services on overtime for City sponsored events, including the "Moonlight Run," "May Fete Parade," "Black and White Ball," "California Avenue Summer Concert" and "World Music Day." Elimination of Police Department participation in these events will have various impacts on the sponsoring departments including increased production costs for private security services.
•
The elimination of the hourly position responsible for enforcing the Municipal Code ban on gas-powered leaf blowers will reduce the proactive enforcement of the ordinance. Enforcement will be on a complaint basis and patrol response will be prioritized with other calls for service. The elimination of proactive enforcement may result in increased violations and resident complaints.
•
The Department currently staffs 29 crossing guard locations to enhance students' safe passage to school. As school enrollment increases and new housing projects in traditionally nonresidential areas near completion, the Department anticipates having to staff several new intersections over the coming years. The School District could assume all or some cost of the current School Crossing Program or revised criteria could be implemented to reduce the number of crossing guard locations; alternatively, the School District could coordinate a volunteer and/or student-lead crossing guard program as many districts do.
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City of Palo Alto
Operating Budget FY 2011
Public Works Department
PUBLIC WORKS DEPARTMENT Organizational Chart 1.0 PUBLIC WORKS DIRECTOR
Glenn Roberts 1.0-Sr Administrator of Public Works
1.0-Administrative Assistant
ENGINEERING
EQUIPMENT MANAGEMENT
1.0-Asst Director/Public Works 1.0-Administrator, IMP 1.0-Admin Associate I
1.0-Fleet Manager 1.0-Admin Associate III 1.0-Asst Fleet Manager 1.0-Sr Fleet Services Coordinator 2.0-Fleet Services Coordinator 2.0-Equipment Maint Serv Person 7.0-Motor Equipment Mechanic II 1.0-Mobile Service Technician
INSPECTIONS/SURVEYS 1.0-Superv Inspections/Survey 1.0-Inspector-Field Serv 1.0-Surveyor 1.0-Surveying Asst
PROJECT MANAGEMENT 2.0-Sr Engineer 3.0-Project Engineer 3.0- Engineer 1.0-Engineering Tech III 1.0-Architect/Park Planner
PRIVATE DEVELOPMENT 1.0-Sr Project Mgr 1.0-Supervising Project Engineer 3.0-Engineering Tech III
STORM DRAIN
FACILITIES 1.0-Mgr Facility Maint. & Proj MAINTENANCE FACILITIES MANAGEMENT
1.0-Project Engineer 1.0-Admin Associate II
FACILITIES REHABILITATION 1.0-Project Mgr 1.0-Admin Associate I 1.0-Engineering Tech III
1.0-Sr. Engineer 1.0 Project Engineer 1.0-Engineer
BUILDING SERVICES 1.0-Supv, Facilities Mgt 2.0-Bldg Svc Person-Lead 1.0-Bldg Service Person
OPERATIONS AND REFUSE
SIDEWALKS
1.0-Assistant Director, Public Works 1.0-Admin Associate II
1.0-Mgr Maint Oper 1.0-Associate Engineer 1.0-Cement Finisher-Lead 3.0-Cement Finisher
STREETS 1.0-Superintendent, Operations 1.0-Traf Control Maint-Lead 3.0-Traf Control Maint II 2.0-Traf Control Maint I 1.0-Heavy Equip Oper-Lead 2.0-Heavy Equip Oper 4.0-Equip Oper
1.0-Supv, Facilities Mgt 0.5-Admin Associate I 2.0-Facilities Maint-Lead 6.0-Facilities Mechanic 2.0-Facilities Painter 1.0-Facilities Carpenter 1.0-Electrician
STREET SWEEPING OPERATIONS 1.0-Mgr. Maint Ops 7.0-Str Sweeper Operator 1.0-Heavy Equip Oper-Lead 1.0-Heavy Equip Operator 2.0-Street Maint Assistant
TREES
STORM DRAIN OPERATIONS
1.0-Managing Arborist 2.0-Project Manager (75 Utl Line Clr) 1.0-Admin Associate I 2.0-Tree Maint Person (1.0 Utl Line Clr) 1.0-Tree Trim/Line Clear-Lead 4.0-Tree Trim/Line Clear
1.0-Electrician-Lead 1.0-HeavyEquip Oper-Lead 1.0-HeavyEquip OperatorRefuse -Solid Waste Ops/Recycle 1.0-Mgr Solid Waste 1.0-Mgr Environmental Controls 1.0-Senior Engineer 1.0-Environmental Specialist 2.0-Executive Assistant 2.0-Recycling Coordinator 1.0-Program Assistant I 1.0-Admin Associate II 1.0-Administrator
LANDFILL OPERATIONS 1.0-Supv Public Works 1.0-Landfill Technician 4.0-Refuse Disposal Attendant 1.0-Heavy Equip Oper-Lead 4.0-Heavy Equip Oper
WATER QUALITY CONTROL PLANT 1.0-Water Quality Control Plant Mgr 2.0-Admin Associate II
WATER QUALITY CONTROL OPERATIONS 1.0-Sr Engineer 5.0-Supervisor WQC Operations 6.0-Sr Operator, WQC 16.0-Plant Operator II
LABORATORY SERVICES 1.0-Manager Laboratory Services 1.0-Sr Chemist 3.0-Chemist 2.5-Lab Technician
WQC PLANT MAINTENANCE 1.0-Asst Manager WQCP 1.0-Electrician-Lead 3.0-Electrician 1.0-Sr Mechanic 7.0-Maintenance Mechanic 1.0-Business Analyst 1.0-Project Engineer
ENVIRONMENTAL COMPLIANCE 1.0-Mgr. Environmental Compliance 1.0-Program Assistant I
ENVIRONMENTAL CONTROL PROGRAMS 2.0-Mgr. Environmental Ctrl Prgrm 1.0-Program Assistant II 1.0-Environmental Specialist 3.0-Associate Engineer 2.0-Industrial Waste Investigator 1.0-Industrial Waste Inspector 1.0-Engineer Technician III 1.0-Industrial Waste Asst Investigator
Fiscal Year 2011 Position Totals: All Funds 205.00 Full-time 5.67 Hourly
Public Works Public Works To provide efficient, cost effective and enviornmentally sensitive construction, maintenance, and management of Palo Alto streets, sidewalks, parking lots, buildings, and other public facilities; to provide appropriate maintenance, replacement, and utility line clearing of City trees; and to ensure timely support to other City departments and the private development community in the area of engineering services. OVERVIEW Besides managing the Engineering, Facilities Management, and Operations Divisions of the General Fund, the Public Works Department also includes three Enterprise Funds - Refuse, Storm Drainage and Wastewater Treatment. The Department is also responsible for the Vehicle Replacement and Maintenance Fund, an Internal Service Fund, responsible for managing the City fleet. In Fiscal Year 2010, staff successfully obtained approximately $1.2 million in American Recovery & Reinvestment "stimulus" funding to supplement the annual street maintenance program. In Fiscal Years 2011-2015 the annual street maintenance capital project has been increased by $2 million to address the ongoing backlog in the streets program. Staff will continue to aggressively pursue stimulus and other funding opportunities.
C I T Y
O F
P A L O
A L T O
With the success of the Library Bond Measure N, design of Mitchell Park Library and Community Center and Downtown Library Improvements were completed in fiscal Year 2010 with construction to commence by the end of the fiscal year. Construction on the College Terrace Library is underway and is expected to be completed in the fall of 2010. In addition, a study for the Highway 101 Pedestrian/ Bicycle Crossing was initiated. Public Works will continue to implement significant capital improvement program projects during Fiscal Year 2011. Other major initiatives are the next phase of the Civic Center Infrastructure Improvements; construction of the Ultraviolet Disinfection Facility at the Water Quality Control Plant; and Storm Drain capital projects. In Fiscal Year 2011, Public Works Engineering will continue to focus on CIP projects, the storm water management program and providing support to private development projects. CIP projects include the annual street maintenance program and construction of Mitchell Park Library and Community Center and Downtown Library Improvement commencing in Spring 2010. In addition the Engineering Division will complete construction of Greer Park Irrigation System Replacement and Phase IV. The Division will also continue to support Palo Alto private development activity including issuance of street opening and encroachment permits, certificates of compliance under the Subdivision Map Act, and support of the Planning Department with plan review of grading and drainage issues. The Public Works Facilities Management Division maintains and operates City facilities with a commitment to sustainability, energy efficiency, and "green" maintenance practices. In Fiscal Year 2011, efforts will continue with the continued delivery of custodial, maintenance, and rehabilitation services to achieve maximum life expectancy of the City's buildings and building systems. Planned CIP projects in Fiscal Year 2011 include the next phase of the multi-year Civic Center Infrastructure Improvements; Art Center Renovation; accessibility upgrades at various locations; Foothill Park Interpretive Center Reroof; and roof replacements at various locations. In the Operations Division of Public Works street and sign repairs; and curb painting continue to be done on an as needed basis. During FY 2010 Operations began upgrading all street painting to thermoplastic to improve/enhance roadway safety for motorists. This replacement will continue and an annual maintenance project has been added to the Capital program.
Operating Budget FY 2011
City of Palo Alto
137
Public Works The Tree Section of the Operations Division is updating the street tree management plan by inventorying City trees with the assistance of a consultant. This project is substantially funded by a grant from the State of California . The street tree inventory and the final report will be completed by Summer 2010. The City of Palo Alto proudly maintains one of the highest frequency sweeping schedules in the Bay Area. Staff will be providing continued street sweeping service to the residents and businesses of Palo Alto to maintain the aesthetic quality of the City's streets and neighborhoods and to meet federal, state, and local requirements for pollution prevention. In additon, Public Works Refuse staff will work toward the continuation of the implementation of the Zero Waste Plan. To meet the City's budget challenge the Public Works Department has made changes in four areas of operation. The 100% City funded sidewalk program, including one assigned inspection position, has been eliminated and replaced by a resident program whereby non-emergency sidewalk repair will now be the responsibility of the property owner. The City will continue to do "hot spot" emergency repairs on all sidewalks. In-house custodial positions, primarily assigned to the Civic Center, have been reduced by three and will be replaced by contract services. The remaining three positions in the section will respond to emergencies; provide support and building access for night and weekend meetings; and service confidential and secure areas such as the Police Department that require staff to have elevated security clearance. Four in-house tree trimmer/line clearer positions have been eliminated and replaced by contract services for routine tree trimming. The remaining four positions will respond to electric line clearing and emergency trimming. Contract services will also supplement in-house crew during storm events. The Department eliminated one Project Manager position assigned to Parks infrastructure projects and one Administrative Associate III support position. Public Works Enterprise and Internal Service Funds are located in separate sections of this document.
PROGRAM UPDATE In Fiscal Year 2010, design of the new Mitchell Park Library and Community Center and Downtown Library improvements were completed with construction commencing in spring 2010. Design of the Main Library expansion and renovations is scheduled to begin in Fiscal Year 2011. In addition construction began on the College Terrace Library and Child Care Center Improvements. The multi phased Civic Center project continues in to FY 2011. Also in Fiscal Year 2010, the annual Street Maintenance project was expanded due to staff successfully obtaining $1.20 million in “stimulus” funding The Public Works Engineering Private Development section provided review support for Campus for Jewish Life, Town and Country Shopping Center, Alma Plaza and numerous housing developments.
COUNCIL PRIORITY IMPLEMENTATION In Fiscal Year 2011, the Public Works Department will implement the City Council's Top 5 Priorities as follows: City Finances
•
Continue to pursue grant and outside sources of funding for Capital Improvement Plan projects and maintenance programs (e.g., rubberized asphalt, rubberized sidewalks, and tree grants)
•
Continue to streamline and coordinate street resurfacing processes to achieve maximum value for
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City of Palo Alto
Operating Budget FY 2011
Public Works budgetary expenditures •
On-going coordination efforts between Public Works and other City departments to coordinate project activities to minimize impacts to the natural life of the City streets
•
Review and evaluate opportunities to conserve energy and electricity in City facilities when upgrades are in process
•
Review opportunities to reduce the size of the vehicle fleet through employing new measures to track and verify equipment utilization (Vehicle Fund- ISF)
Environmental Sustainability
•
Continue to evaluate city operations and identify opportunities to reduce greenhouse gasses and increase carbon sequestration by: purchasing greener products, chemicals, construction materials, and landscape materials; increasing equipment efficiency; designing greener City facilities; purchasing lowemission vehicles and equipment; and planting trees and shrubs
•
Maintain City facilities at optimal and efficient operating condition by providing on-going operations and maintenance
•
Continue to research and evaluate all options for alternative fuel usage and consumption
•
Continue Implementation of the Zero Waste Operational Plan.
•
Set a Leadership in Energy and Environmental Design (LEED) Gold certification goal for the Mitchell Park Library and Community Center project
•
Set a Leadership in Energy and Environmental Design (LEED) Certified goal for the Art Center Renovation Project
DEPARTMENT SUMMARY FY 2009 Actuals
Administration Streets Trees Structures and Grounds Engineering TOTAL EXPENDITURES TOTAL REVENUES INTERNAL REVENUES EXTERNAL REVENUES
Operating Budget FY 2011
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
673,518 1,125,489 1,132,477 1,137,890 1,268,046 2,309,998 2,500,123 2,458,058 2,532,482 2,501,325 2,435,335 2,368,713 2,064,361 2,106,981 2,334,270 5,663,582 5,844,113 5,727,566 6,013,726 5,538,966 2,156,715 1,696,630 1,688,930 1,731,916 1,644,069 $12,910,794 $13,500,625 $13,442,366 $13,784,727 $13,016,767 $2,942,057 $2,927,371 $2,949,671 $2,973,534 $2,716,376 2,326,871 2,456,034 2,376,826 2,344,874 2,409,871 622,800 517,500 339,550 597,183 517,500
FY 2011 Budget Change
135,569 43,267 (370,974) (188,600) (44,861) $(425,599) $(233,295) 49,955 (283,250)
% Chg
12% 2% (15%) (3%) (3%) (3%) (8%) 2% (45%)
City of Palo Alto
139
Public Works
Public Works Capital Improvement Projects ($000's) 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 $100
$4,100
$6,100
$8,100
Structures & Grounds
$2,100
Streets
Sidewalks
$10,100
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges Operating Transfers Out
TOTAL EXPENDITURES TOTAL REVENUES Total Full Time Positions Total Temporary Positions
140
City of Palo Alto
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
7,665,510 1,537,943 692,253 0 23,731 175,677 2,799,106 16,574
7,581,997 1,963,040 905,494 5,646 33,229 170,000 2,824,645 16,574
7,565,397 1,993,603 831,598 5,046 28,515 170,000 2,831,633 16,574
7,759,956 1,963,040 905,494 5,646 33,229 170,000 2,930,788 16,574
6,887,405 2,076,640 885,294 5,646 33,429 170,000 2,941,779 16,574
$12,910,794
$13,500,625
$13,442,366
$13,784,727
$13,016,767
$2,942,057
$2,927,371
$2,949,671
$2,973,534
$2,716,376
69.23 1.37
63.67 1.19
63.67 3.24
63.67 1.19
56.57 0.94
Operating Budget FY 2011
Public Works
BENCHMARKING MEASURES
FY 2010 Adjusted Budget
FY 2009 Actuals
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. 2. 3. 4. 5.
STREETS: Number of potholes repaired (SEA) STREETS: Number of signs repaired or replaced (SEA) TREES: Number of service calls for trees completed TREES: Number of trees line cleared FACILITIES: Total square footage maintained by Facilities Maintenance Section 6. FACILITIES: Total square footage cleaned by Facilities Custodial Section. 7. FACILITIES: Number of projects assigned in given fiscal year to Facilities Management Division. 8. ENGINEERING: Private Development: Number of permits issued 9. ENGINEERING: Street Maintenance: Total dollar value of IMP accomplished (Capital Expenditures) 10. ENGINEERING: Structures and Grounds: Total dollar value of Infrastructure Management Plan (IMP) accomplished (Capital Expenditures) 11. ENGINEERING: Parks & Open Space: Total dollar value of IMP projects accomplished (Capital Expenditures) 12. ENGINEERING: Private Development: Number of plans reviewed
3,727 1,292 6,618 10,084
2,000 1,620 5,200 8,000
2,000 1,620 5,200 8,000
1,616,171
1,617,101
1,617,101
1,219,008
1,220,457
1,220,457
8
8
10
304
250
250
$4,392,342
$3,251,557
$2,000,000
$4,217,853
$5,676,411
$1,400,000
$1,942,896
$2,778,156
$1,000,000
191
150
150
3.2 1.3 1.8 33% $1.62 $1.19
1.2 1.2 2.2 25% $1.75 $1.18
1.2 1.2 2.0 25% $1.67 $1.16
7
8
10
101 $971,448 $611,283 $2,336,352
83 $1,389,078 $950,000 $950,000
83 $500,000 $950,000 $950,000
122
200
200
19 5
50 0
50 0
6
5
10
80%
80%
80%
Efficienc y : 1. 2. 3. 4. 5. 6. 7.
STREETS: Potholes filled per hour STREETS: Number of signs repaired or replaced per hour TREES: Person hours per all service call TREES: Percent of total trees line cleared (SEA) FACILITIES: Cost per square foot for facilities maintenance. FACILITIES: Cost per square foot for custodial services. FACILITIES: Number of CIP projects bid and awarded in the year budgeted. 8. ENGINEERING: Private Development: Number of permits per FTE (SEA) 9. ENGINEERING: Parks & Open Space: Dollar value per FTE 10. ENGINEERING: Structures and Grounds: Total dollar value per FTE 11. ENGINEERING: Street Maintenance: Total dollar value per FTE 12. ENGINEERING: Private Development: Number of plans reviewed within four weeks
Effe c t iveness: 1. STREETS: Number of calls reporting damaged/faded signs 2. TREES:Number of electrical service disruptions caused by trees (SEA) 3. TREES: Average number of days to respond to service requests from the public 4. STREETS: Percent potholes completed within 15 days (SEA)
Operating Budget FY 2011
City of Palo Alto
141
Public Works B ENCHMARKING MEASURES
FY 2010 Adjusted Budget
FY 2009 Actuals 5. FACILITIES: Percent of facility maintenance repairs completed in 3 weeks 6. FACILITIES: Number of customer callbacks for regularly scheduled cleaning 7. FACILITIES: Percent of CIP projects bid and awarded in fiscal year budgeted 8. ENGINEERING: Private Development: Revenues received- plan review 9. ENGINEERING: Private Development: Revenues received- permits review 10. ENGINEERING: Structure and Grounds: % of IMP projects within planned budget 11. ENGINEERING: Street Maintenance: Percent of streets not in need of maintenance (good or better condition on the Pavement Maintenance Management System) 12. ENGINEERING: Parks & Open Space: Percentage of IMP projects completed within planned budget
RESOURCE LEVEL CHANGES
FY 2011 Proposed Budget
86%
82%
80%
5
6
6
87%
100%
100%
$82,505
$90,000
$90,000
$175,648
$160,000
$160,000
100%
100%
100%
55%
56%
57%
100%
100%
100%
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VENUE CHANGES Decrease plan checking fee Decrease special service fee Increase street cut fees- external Decrease building-new construction permit Decrease encroachment permit Decrease street opening permit Decrease allocated revenue-internal
TOTAL REVENUE CHANGES
(100,000) (7,950) 85,000 (35,000) (50,000) (70,000) (77,645) $(255,595)
Adjustments (Note 1)
NET REVENUE CHANGES
$(255,595)
(100,000) (7,950) 85,000 (35,000) (50,000) (70,000) (77,645) $0
$(255,595)
22,300
22,300
$22,300
$(233,295)
EXPENDITURE CHANGES Salary and Benefits Elimination of 3.0 FTE Building Servicepersons Elimination of 4.0 FTE Tree Trimmer/Line Clearers Personnel Benefit Costs Decrease (Note 2) Total Salary and Benefits Changes
142
City of Palo Alto
(231,933) (390,104) (55,954) $(677,991)
(231,933) (390,104) (55,954) $0
$(677,991)
Operating Budget FY 2011
Public Works RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
Adjustments (Note 1)
NET SALARY AND BENEFITS CHANGES
0 $(677,991)
$0
$(677,991)
Non-Salary Decrease construction materials- asphalt supply Decrease planting material- trees Decrease contract services- cleaning Decrease facilities maintenance contract services- elimination of response to non-essential requests Increase custodial contract services- related to elimination of 3.0 FTE Building Servicepersons Increase contract services for tree trimming- related to elimination of 4.0 FTE Tree Trimmer/Line Clearers Decrease contract services in various areas Allocated Charges Increase (Note 3)
Total Non-Salary Changes
(10,000) (10,000) (8,000)
(10,000) (10,000) (8,000)
(8,000)
(8,000)
155,700
155,700
73,900
73,900
(100,000) 100,532
(100,000) 100,532
$194,132
Adjustments (Note 1)
TOTAL EXPENDITURE CHANGES
$(483,859)
$0
$194,132
58,260
58,260
$58,260
$(425,599)
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Personnel benefit costs have decreased mainly due to reductions in proposed staffing levels and a change in methodology of estimating benefit costs. Note 3: Allocated charges are increasing primarily due to increases in telecommunications and vehicle replacement charges.
SERVICE LEVEL CHANGES •
Additional reductions to the Facilities Management Division FY 2011 operating budget will result in the continuing deterioration of City facilities. The division will focus on maintenance of the building shell and building systems at all facilities. Non-critical service calls will be delayed or deferred. Interior finishes will show increasing wear.
•
The programmatic district sidewalk replacement program has been eliminated and sidewalk replacment will now be 100% property owner funded.
•
Due to the elimination of tree maintenance crew, response for both routine and emergency calls during a storm event may be delayed.
Operating Budget FY 2011
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143
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144
City of Palo Alto
Operating Budget FY 2011
ENTERPRISE FUNDS
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Operating Budget FY 2011
Enterprise Funds
UTILITIES DEPARTMENT Organizational Chart
ELECTRIC & WGW ENGINEERING 1.0-Asst Director Util Engineering 1.0-Engineering Mgr - Electric 4.0-Sr Electric Project Engineer 4.0-Electric Project Engineer 3.0-Power Engineer 5.0-Util Engr Estimator 3.0-Engr Tech III 1.0-Engineering Mgr - WGW 3.0-Admin Associate II 1.0-Coordinator, Utilities Project 4.0-Sr Project Engineer 5.0-Project Engineer 4.0-Engineer 3.0-Inspector, Field Svc 1.0-Supv. Project Engineer
1.0 DIRECTOR OF UTILITIES
Valerie Fong
UTILITIES ADMINISTRATION 1.0-Administrative Asst 1.0-Sr Administrator 2.0-Business Analyst 2.0-Program Assistant 2.0-Sr Business Analyst 1.0-Mgr Utilities Telecommunications
CUSTOMER SUPPORT SERVICES
RESOURCE MANAGEMENT 1.0-Assist Director, Resource Mgmt 1.0-Admin Associate II 1.0-Sr Resource Originator 5.0-Sr Resource Planner 5.0-Resource Planner
1.0-Asst Dir Utl/Cust Support Svc 1.0 Admin Assoc I 1.0-Admin Associate II 1.0-Mgr Utility Rates 1.0-Mgr Util Mkt Svcs 1.0-Sr Market Analyst 1.0-Mgr Cust Svcs and Meter Reading 2.0-Customer Svr Spec-Lead 6.0-Customer Svc Rep 3.0-Customer Svc Spec 1.0-Util Credit/Col Spec 1.0-Meter Reader-Lead 6.0-Meter Reader 3.0-Util Key Account Rep 1.0-Marketing Engineer 3.0-Util Account Rep 1.0-Sr Resource Planner
Fiscal Year 2011 Positions - All Funds Totals: 236.00 Full-time 10.29 Hourly
ELECTRIC & WGW OPERATIONS 1.0-Asst Director Utility Operations 1.0-Program Assistant 1.0-Coord Util Safety & Security 1.0-Mgr Electric Operations 1.0-Admin Associate I 2.0-Admin Associate II 5.0-Supv Elect Systems 1.0-Underground Inspector-Lead 6.0-Electrician-Lead 14.0-Electrician 5.0-Elec Asst I 2.0-Elec Undgd Inspec 4.0-Lineper/Cable Spl-Lead 11.0-Lineper/Cable Spl 9.0-Heavy Equip Oper 1.0-Util Comp Tech-Lead 2.0-Util Comp Tech 2.0-Util Locator 5.0-Util Syst Operator 1.0-Mgr Utility Operations WGW 3.0-Coord Utility Proj 5.0-Supv WGW 1.0-Supv Water Trans 2.0-Sr Water Sys Oper 2.0-Cathodic Tech 4.0-Water Sys Oper II 3.0-Wtr Mtr Crs Cn Technician 1.0-Inspector, Field Svc 2.0-Gas System Tech 1.0-Equip Operator 1.0-Maint Mech 1.0-Maintenance Mechanic Welding 1.0-Cement Finisher 1.0-Util Locator 5.0-Util Install/Rep-Lead 2.0-Util Install/Rep-L-Welding 13.0-Util Install/Rep 2.0 -Util Install/Rep-Welding 1.0- Util Install/Rep Assistant 1.0- Sr Utility Field Service Rep 5.0- Field Service Rep 1.0- Sr Mechanic 1.0 Restoration Lead 1.0 Compliance Manager 1.0-Gas Systems Tech II
Enterprise Funds Overview Enterprise Funds Overview The City of Palo Alto's utility and public works operations are comprised of the Electric, Fiber Optics, Gas, Water, Wastewater Collection, Refuse, Wastewater Treatment and Storm Drainage Funds. A financial summary of the funds follows this overview and includes discussion and pertinent information in each fund section. REVENUES
The total combined budgeted revenues of the Enterprise Funds for Fiscal Year 2011 is $281.0 million; $44.6 million or 13.7 percent lower than the previous fiscal year. The decrease is primarily attributed to proceeds from utility revenue bonds of $35,000,000 in the Water Fund (which were included in the Fiscal Year 2010 Adopted Budget), a decrease of $7.2 million in the Refuse Fund to bring the budget closer to projected actual amounts, and a decrease of $1.4 million in investment income. EXPENDITURES
Aggregated budgeted expenditures of the Enterprise Funds for Fiscal Year 2011 are $306.0 million, when compared to $314.3 million in Fiscal Year 2010, a decrease of $8.3 million.
C I T Y
O F
P A L O
A L T O
A decrease in capital expenditures of $8.4 million is the primary factor contributing to the decrease in expenditures (more information may be found in the Fiscal Year 2011 Capital Budget document). Decreases in commodity costs for the Electric and Gas Funds are partially offset by increases in commodity costs for the Water Fund. Salaries and benefits are decreasing slightly by $715,000, primarily due to a change in methodology of estimating benefit costs. "Operating transfers out" increase by $859,000 when compared to the prior year. The variance is due to increased contributions to the Technology Fund for the capital project to enhance the SAP utility billing system. Allocated charges increase by $1.9 million when compared to Fiscal Year 2010 primarily due to increased IT charges for support, application replacement and maintenance, and telecommunications. UTILITY RATE CHANGES
This Fiscal Year 2011 Budget includes one rate adjustment for the Storm Drainage Fund. The average monthly residential Utilities bill is expected to increase by $0.28 for combined utility services, including Utility Users Taxes. The size and timing of rate adjustments take into account current and future revenue requirements and reserve levels. They may also cushion the impacts on customer bills by spreading rate adjustments during consecutive or alternate years. Details are further discussed in the overview and within each fund's section. •
Electric Fund - No rate increases proposed
•
Gas Fund - No rate increases proposed
•
Water Fund - No rate increases proposed
•
Wastewater Collection Fund - No rate increases proposed
•
Refuse Fund - Rate increase not recommended by Finance Committee
•
Storm Drainage Fund - A rate increase of 2.6 percent effective July 1, 2010 for inflation based on CPI as allowed by the approved ballot measure
RENT
Enterprise Funds pay market-based rental fees for the sites needed to conduct their business operations.
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Enterprise Funds Overview The rent paid for City-owned sites is adjusted annually after conducting an independent appraisal of all sites. EQUITY TRANSFERS
As part of the Fiscal Year 2010 budget process, the Council adopted a change in the methodology by which the equity transfer to the General Fund is calculated. Starting in FY 2010, the equity transfers from the Electric and Gas Funds to the General Fund are based on the Utilities Enterprise Methodology (UEM). In prior years, the equity transfers had been increased three percent per year. Under the UEM, the equity transfers are based on a rate of return on the asset base. In addition, the equity transfer from the Water Fund ceased in Fiscal Year 2010. The total amount of equity transfers to the General Fund increases by $79,000 in Fiscal Year 2011. RESERVES
Since no revenue or expense forecast is perfect, some Utilities Reserves serve as "balancing accounts" which mitigate the risk of commodity price swings and insure against default by the Cityâ&#x20AC;&#x2122;s wholesale suppliers. Other Reserves are used to provide cash for replacement parts during an emergency infrastructure failure, or to serve as temporary "parking" for planned expenditures. Reserve levels that are above guidelines are returned to customers in the form of lower future rates, or used to pay for higher expenses, thereby also resulting in lower future rates. The total Enterprise Fund Reserve Balances (Supply and Distribution Rate Stabilization, Emergency Plant Replacement, etc.) decrease by $25.0 million in Fiscal Year 2011. UTILITIES DEPARTMENT OVERVIEW
The City of Palo Alto Utilities (CPAU) plans to focus on customer service, infrastructure reliability, and cost containment - priorities outlined in the Department's strategic plan and consistent with Council financial priorities of City finances and environmental sustainability. In addition, the marketing of energy efficiency programs and the increasing of renewable energy supplies will be focal points, in light of Council's environmental sustainability priority and state-mandated energy-efficiency goals. The Utilities Department continues to adapt to the changing regulatory and legislative landscape, including developments in transmission markets, greenhouse gas reduction regulations, and requirements to maintain reliable utility system operations. Utilities is working directly with the City Manager to better position the department to manage increasing regulatory requirements that include identifying a "Compliance Manager" position to deal with Federal Department of Transportation, California Department of Health Services, California Occupational Safety and Health Administration, Regional Water Quality Control Board, and Federal Energy Regulatory Commission (and Western Electricity Coordinating Council) requirements, among others. The addition of high-value services for customers began with the May 4, 2009 implementation of SAP software for customer service and billing functions. These services continued with the re-introduction of the online "My Utilities Account" (MUA) customer self-service portal. MUA provides 24/7 customer access to Utilities account information and allows on-line payment of utilities bills. The new billing system is more flexible and permits more utility usage and rate information to be displayed on customer bills with the goal of providing customers information and incentives to use resources efficiently. UTILITIES DEPARTMENT EXPENDITURE HIGHLIGHTS
Due to a combination of factors, including higher electric supply costs associated with the expiration of the long-term Western Area Power Administration (Western) electric contract, and higher transmission costs from the California Independent System Operator (CAISO), costs have increased considerably since 2004.
150
City of Palo Alto
Operating Budget FY 2011
Enterprise Funds Overview Water commodity costs are expected to increase steadily over the next six years based on projections provided by the San Francisco Public Utilities Commission, which supplies water to Palo Alto. In the past few years, actual consumption levels were lower than forecasted; thus, annual revenues have not kept pace with the fixed expenses of the water distribution system. Palo Alto's share of wastewater treatment costs--which are allocated among the five partners that use the system--will decrease by about $0.4 million in Fiscal Year 2011. CPAU CAPITAL IMPROVEMENT PROGRAM (CIP)
CPAU continues to invest in its infrastructure, replacing deteriorated and aging facilities with new technologies, to ensure reliable delivery of services. Utilities continues to pursue smart grid opportunities, the potential to increase the its connection points to the electric transmission grid to improve reliability, and local generation options. Utilities will also seek funding for the City's broadband build-out, and a recycled water project. It recently issued Build America Bonds in conjunction with the Administrative Services Department to finance construction of a 2.5 million gallon water reservoir to increase local emergency water supplies, and will implement large-scale deployment of light emitting diode (LED) streetlights using recently awarded State funds. In Fiscal Year 2011, planned CIP expenditures for the Electric Fund total $10.1million. New CIP projects include rebuilding and replacing certain underground electric systems and electric distribution system conversions from 4kV to 12kV in the East Charleston/Middlefield Road area. Fiscal Year 2011 Gas Fund planned CIP expenditures are $8.3 million. A significant amount of capital expenditures are appropriated for the gas main replacements projects. The Wastewater Collection Fund has budgeted $4.1 million for Fiscal Year 2011 CIP expenditures. Included are projects to rehabilitate collection systems and manholes, and to reduce groundwater and rainfall seepage into the pipelines. In Fiscal Year 2011, $8.8 million is budgeted in the Water Fund for CIP expenditures. Water Fund CIP primarily involves the water main replacements and other projects focused on reliability. A significant CIP is the Emergency Water Supply Project estimated to cost $40 million during a four-year construction period. The Fiscal Year 2011 Capital Budget document discusses in details the capital projects of all Utilities Department Enterprise Funds. UTILITIES DEPARTMENT PROGRAM HIGHLIGHTS
The PaloAltoGreen Program offers "new" renewable energy (as defined by the California Energy Commission) to customers for a premium of 1.5 cents per kilowatt-hour over their applicable electric rate schedule. Introduced in July 2003, this program had a five-year goal of 2,000 participants. As of February 2010, there are 6,105 active participants in the PaloAltoGreen Program which represent 20.8 percent of all electric accounts. The PaloAltoGreen Program continues to achieve the nation's highest participation rate, according to the National Renewable Energy Laboratory. Given recent state legislation and Council's priority to promote environmental sustainability, the Utilities Department is undertaking additional efforts to promote energy efficiency and the use of alternative resources. The specific state laws include:
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Enterprise Funds Overview •
SB1 (2006), also known as the "Million Solar Roofs Bill", requires publicly-owned utilities to offer rebates for photovoltaic systems similar to those offered by investor-owned utilities like PG&E. This legislation sets a statewide goal to create 3,000 megawatts of new, solar-produced electricity by 2017. By lowering the cost of solar systems to consumers, SB1 aims to put California on pace to build a million solar roofs over the next ten years.
•
SB1037 (2005) established a statewide "loading order" for electric power resources, specifying the following preference hierarchy: first, energy efficiency and demand reduction; second, renewable energy; third, conventional power supply
•
SB1037 requires publicly-owned utilities to adopt this loading order and to report annually to customers and the California Energy Commission (CEC) on programs, expenditures, and energy savings results.
•
AB2021 (2006), built on SB1037, adds new and very specific long-term planning, reporting, and review requirements with specific deadlines, and a requirement to "treat efficiency as procurement investments…without regard to previous minimum investments". AB 2021 requires the Utilities Department to develop and submit 10-year energy efficiency plans to the CEC on a three-year cycle with annual reports to customers and the CEC.
•
AB32 (2006), "California Global Warming Solutions Act of 2006", sets state goals to reduce greenhouse gas emissions to 1990 levels by 2020. AB32 requires publicly-owned utilities to report greenhouse gas emissions, and empowers the State Air Resources Board to determine the 1990 baseline emissions, to establish emission reduction targets and regulations for reporting, and to adopt regulations for marketbased compliance mechanisms.
•
AB920 (2009) requires utility companies to pay households or businesses for any extra electricity produced by the customer's solar power system to encourage more people to invest in solar power while also maximizing conservation and energy efficiency.
In Fiscal Year 2011, approximately $3.5 million is being devoted to incentives and programs to comply with these laws. ELECTRIC UTILITY CHALLENGES
Since the December 2004 expiration of the City's 40-year contract with the Western Area Power Administration (WAPA) which had supplied most of the City's electric supply needs, the Electric Utility has worked diligently to address the resulting supply gap. Significant progress has been made in developing and implementing a longterm energy efficiency plan, purchasing wind and landfill gas renewable power, obtaining market-based contracts, and developing plans for improving the transmission infrastructure. RISK MANAGEMENT
CPAU will continue to develop, implement, and work under approved risk management policies and guidelines. Staff from several departments continue to work together to ensure that CPAU strategies and implementation plans meet all relevant risk management policies, guidelines, and procedures.
GAS UTILITY CHALLENGES The Gas Utility's commodity-hedging program, with a three-year "laddering" approach to purchasing gas, has helped stabilize costs and retail rates in spite of marketplace volatility. Staff will continue to pursue supply strategies that mitigate price swings. In addition, the Gas Utility will focus on promoting energy efficiency and on capital projects that increase the infrastructure's reliability and safety.
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Enterprise Funds Overview WATER UTILITY CAPITAL WORK The City's water supplier, the San Francisco Public Utilities Commission (SFPUC), has embarked on a series of capital projects to upgrade its aqueducts and water transmission system, which will result in annual increases in the City's wholesale water rates for the next six years. Comprised of the cities, water districts, and private companies that purchase water from SFPUC, the Bay Area Water Supply and Conservation Agency (BAWSCA) actively participates in planning capital projects that will improve the reliability of the regional water supply infrastructure. Though these infrastructure improvements are costly, they will greatly increase the seismic reliability of the system which provides Palo Alto, and many neighboring communities, with one of the highest quality sources of drinking water in the nation. In addition, the Utility is planning capital projects in Fiscal Year 2011 that include water main replacements, continued installation and upgrading of customer services and meters, and the accelerated implementation of the recommendations of the 1999 Water Wells, Regional Storage, and Distribution Study.
PUBLIC WORKS UTILITY FUNDS Refuse
The Refuse Fund continues to exceed the State of California's solid waste diversion requirement, which mandates cities and counties to divert 50 percent of all solid waste from landfills. Effective July 1, 2009, a new agreement began with GreenWaste of Palo Alto for the collection and processing of solid waste, recyclable materials, organic materials, and other services. The financial health of the Refuse Fund has been impacted by a number of factors including the new agreement with GreenWaste, implementation of the Zero Waste Operational Plan programs, rising costs at the Sunnyvale Materials Recovery and Transfer (SMaRT) Station, and the revised closure cost for the City landfill. In Fiscal Year 2010, there is a current operating deficit within the fund. A rate increase was proposed to the Finance Committee. However, the Finance Committee decided not to recommend an increase in rates at this time. The current operating deficit is projected to continue into FY 2011. A cost of service study will be completed, and staff will return with a recommendation for a rate increase during FY 2011. As directed by the City Council, staff is also undertaking efforts to achieve Zero Waste goals. The goal of Zero Waste is to reduce the amount of waste going to landfills by 90 percent or more. Storm Drain
The Storm Drainage Fee increase approved by property owners in April 2005 continues to provide funding for high-priority storm drain capital improvements. In Fiscal Year 2010, efforts will include Channing Avenue/ Lincoln Avenue Storm Drain Improvements and continued implementation of citywide system repairs. Wastewater Treatment
Revenues in the Wastewater Treatment Fund will show a decrease of $1.4 million in Fiscal Year 2011, primarily due to efforts to align budget revenue for contract cities more closely with projected actual amounts. An estimated $2.5 million in capital improvement is planned in Fiscal Year 2011. CIP projects include Plant Equipment Replacement as well as work on Facility Condition Assessment and Retrofit.
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153
FY 2011 Enterprise Fund Summary FY 2011 Enterprise Fund Summary FUND SUM MARY Electric Fund
($000)
Fiber Optic Fund
Gas Fund
Wastewater Collection Water Fund Fund
Storm Wastewater Refuse Drainage Treatment Fund Fund Fund
Total
Revenues Net Sales Interest Income Other Income
112,561
3,044
43,993
14,477
28,803
26,137
5,506
20,095
254,616
4,299
268
847
445
1,050
301
159
422
7,791
11,719
0
811
1,002
1,463
3,458
68
73
18,594
$15,924 $31,316 $29,896
$5,733
TOTAL SOURCE OF FUNDS $128,579 $3,312 $45,651
$20,590 $281,001
Expenditures Utility Purchases and Charges
74,078
0
24,595
7,499
12,043
14,797
0
0
133,012
Salaries and Benefits
10,492
976
4,641
1,900
5,229
4,365
1,000
9,213
37,816
4,284
165
1,021
208
754
6,547
379
1,884
15,241
815
18
521
231
491
311
99
1,838
4,324
84
0
63
1
6
16
12
10
192
General Expense
3,174
19
658
65
359
276
152
404
5,107
Rents and Leases
3,755
15
326
210
2,207
4,308
6
0
10,827
Allocated Charges
7,809
562
3,942
1,951
3,333
3,674
616
4,660
26,549
Debt Service
8,949
0
947
129
2,981
608
950
815
15,379
$12,195 $27,403 $34,902
$3,214
Contract Services Supplies and Materials Facilities and Equipment Purchases
Subtotal
$113,439 $1,755 $36,715
$18,824 $248,447
Equity Transfer
11,195
0
5,304
0
0
0
0
0
16,499
Capital Improvement Program
10,085
400
8,325
4,130
8,781
1,650
1,788
2,500
37,659
866
8
614
567
442
338
609
9
3,453
$135,585 $2,163 $50,958
$16,892 $36,626 $36,890
$5,611
$21,333 $306,058
$(7,006) $1,149 $(5,307)
$(968) $(5,310) $(6,994)
$122
$(743) $(25,057)
Operating Transfers Out
TOTAL USE OF FUNDS TO/FROM RESERVES
154
City of Palo Alto
Operating Budget FY 2011
Enterprise Fund Reserves Enterprise Fund Reserves RESERVES ($000)
FY 2011 Projected Beginning Balance
FY 2011 Projected Ending Balance
FY 2011 Changes
FY 2011 Reserve Guideline Range
Electric Fund Emergency Plant Replacement
1,000
0
1,000
1,000 (min.)
Distribution Rate Stabilization
9,073
(17)
9,056
6,834 - 13,669
Supply Rate Stabilization
33,924
(7,373)
26,551
37,039 - 74,078
Calaveras
62,209
384
62,593
0
2,309
0
2,309
Central Valley O&M
153
0
153
Underground Loan
717
0
717
$109,385
$(7,006)
$102,379
Emergency Plant Replacement
1,000
0
1,000
1,000 (min.)
Distribution Rate Stabilization
6,072
(2,169)
3,903
3,230 - 6,461
Supply Rate Stabilization
6,566
(3,138)
3,428
6,149 - 12,298
952
0
952
$14,590
$(5,307)
$9,283
Emergency Plant Replacement
1,000
0
1,000
1,000 (min.)
Rate Stabilization
5,554
(968)
4,586
2,156 - 4,311
$6,554
$(968)
$5,586
1,000
0
1,000
1,000 (min.)
15,765
(1,810)
13,955
4,300 -8,600
4,300
(3,500)
800
780
0
780
$21,845
$(5,310)
$16,535
Rate Stabilization
(3,561)
(6,519)
(10,080)
Landfill Closure and Postclosure Care Liability
11,289
(475)
10,814
650
0
650
$8,378
$(6,994)
$1,384
Public Benefit
Subtotal
Gas Fund
Debt Service Reserve Subtotal
Wastewater Collection Fund
Subtotal
Water Fund Emergency Plant Replacement Rate Stabilization Bond Proceeds (Restricted) Debt Service Reserve Subtotal
Refuse Fund
Landfill Corrective Action Reserve Subtotal
Operating Budget FY 2011
2,614 - 5,228
City of Palo Alto
155
Enterprise Fund Reserves RESERVES ($000)
FY 2011 Projected Beginning Balance
FY 2011 Projected Ending Balance
FY 2011 Changes
FY 2011 Reserve Guideline Range
Storm Drainage Fund Rate Stabilization
300
122
422
$300
$122
$422
2,160
(413)
1,747
1,747 (max.)
(14,163)
(330)
(14,493)
2,990 - 5,980
0
0
0
$(12,003)
$(743)
$(12,746)
Emergency Plant Replacement
1,000
0
1,000
1,000 (min.)
Rate Stabilization
7,831
1,149
8,980
609 - 1,522
$8,831
$1,149
$9,980
$157,880
$(25,057)
$132,823
7,160
(413)
6,747
67,361
(21,053)
46,308
Bond Proceeds (Restricted)
4,300
(3,500)
800
Debt Service Reserve
1,732
0
1,732
62,209
384
62,593
2,309
0
2,309
Central Valley O&M
153
0
153
Underground Loan
717
0
717
Shasta Rewind Loan
0
0
0
Conservation Loan
0
0
0
650
0
650
11,289
(475)
10,814
$157,880
$(25,057)
$132,823
Subtotal
Wastewater Treatment Fund Emergency Plant Replacement Rate Stabilization Bond Proceeds (Restricted) Subtotal
Fiber Optics Fund
Subtotal
TOTAL RESERVES Emergency Plant Replacement Rate Stabilization
Calaveras Public Benefit
Landfill Corrective Action Reserve Landfill Closure and Postclosure Care Liability
TOTAL RESERVES
156
City of Palo Alto
Operating Budget FY 2011
Enterprise Revenues by Fund Enterprise Revenues by Fund $281.0 Million / Proposed FY 2011 8 7 1 - Electric - 46%
1 6
2 - Fiber Optics - 1% 3 - Gas - 16% 4 - Wastewater Collect - 6%
5 5 - Water 11% 6 - Refuse - 11% 7 - Storm Drainage - 2%
4
8 - Wastewater Treat - 7%
3
2
3 Year Trend - Revenues ($Millions)
$160 $140
2009 Actual
$120
2010 Adjusted
$100
2011 Proposed
$80 $60 $40 $20 $0 Wastewater Treat
Storm Drainage
Refuse
Water
Wastewater Collect
Gas
Fiber Optics
Electric
Operating Budget FY 2011
City of Palo Alto
157
Enterprise Expenditures by Category Enterprise Expenditures by Category $306.0 Million / Proposed FY 2011 2 1
1 - Utility Purch Chgs - 43.5%
3 2 - Salaries/Benefits - 12.4%
4
3 - Contract Services - 5.0%
5
4 - Supplies/Materials - 1.4%
6
5 - Facil/Equip Purch - 0.1%
7
6 - General Expense - 1.7% 7 - Rent/Lease - 3.5%
8
8 - Allocated Charges - 8.6% 9 - Debt Service - 5.0%
9
10 - Equity Transfer - 5.4% 11 - Op Transfers Out - 1.1%
10 11
12 - Capital Improv Prog - 12.3%
12
3 Year Trend - Expenses ($Millions) $160 $140
2009 Actual
$120
2010 Adjusted
$100
2011 Proposed
$80 $60 $40 $20 $0 Capital Improv Prog
Op Transfers Out
Equity Transfer
Debt Service
Allocated Charges
Rent/Lease
General Expense
Facil/Equip Purch
Supplies/Materials
City of Palo Alto
Contract Services
Salaries/Benefits
Utility Purch Chgs
158
Operating Budget FY 2011
Average Residential Monthly Utility Bill Average Residential Monthly Utility Bill Utility
Current FY 2010 Bill
Proposed FY 2011 Bill
$ Difference % Difference
Electric (650KWH)
76.33
76.33
-
0.0%
Water (14CCF)
72.01
72.01
-
0.0%
Gas (100/30TH)
99.42
99.42
-
0.0%
Sewer
24.65
24.65
-
0.0%
Refuse
31.00
31.00
-
0.0%
Storm Drain
10.95
11.23
0.28
2.6%
User Tax
12.39
12.39
-
0.0%
$326.75
$327.03
$0.28
0.1%
TOTAL MONTHLY BILL COMMENTS: FY 2011 Storm Drain will increase by CPI at 2.6%, effective 7-1-10
Operating Budget FY 2011
City of Palo Alto
159
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160
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Operating Budget FY 2011
Electric Fund
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City of Palo Alto
Operating Budget FY 2011
Electric Fund Electric Fund To provide valued utility services to customers and dependable returns to the City OVERVIEW OVERVIEW
In Fiscal Year 2011, the City of Palo Alto's Utilities (CPAU) Electric Division plans to focus on increasing infrastructure reliability, increasing the percent of electric supply obtained from renewable energy supplies, and maintaining a supply cost advantage as measured against the California wholesale electric market.
Infrastructure Reliability The integrity of the infrastructure required for achieving a high level of reliability and value for our customers is of paramount importance to CPAU. Capital projects in Fiscal Year 2011 include completing construction of Underground District 45, continuing the on-going multiyear system rebuilding projects encompassing the old Underground Districts 17, 18, and 24 and at the Hewlett Subdivision along Los Trancos Road, making ongoing system improvements and upgrades, installing transformers and meters for new customers, upgrading existing services, making utility site security enhancements, and converting the primary electric distribution system along E. Charleston from 4kV to 12kV. Additional new capital projects include multiyear funding for reconductoring the 60kV Overhead Transmission system, converting lightemitting diode (LED) street light system, and implementing the Smart Grid Technology.
Staff will devote a significant amount of time in the coming year to developing and managing a diversified, reliable, cost-effective, and renewable portfolio consistent with the Council-approved Long-term Electric Acquisition Plan (LEAP) Guidelines. The LEAP Guidelines include preference for efficiency, renewable supply goals, risk management, incentives for locally sited, ultra-clean local generation, demand reduction programs, and consistency with the Council-adopted Climate Protection Plan. Due to the long-term contract with the Western Area Power Administration for hydro power and other lowcost supply contracts, overall costs for electricity are less than market costs. Nevertheless, supply and transmission expenses present significant challenges as those costs continue to fluctuate. Wholesale electric costs rose to very high levels in the summer of 2008, then fell precipitously until the end of 2008 and remained at relatively low levels throughout 2009. Highly volatile energy prices mean that high prices could return. Although electric costs have declined from their heights in the summer of 2008, persistent dry weather has reduced hydroelectric generation requiring CPAU to purchase replacement energy, driving up costs. Actions taken by the Federal Energy Regulatory Commission (FERC) and the California Independent System Operator (CAISO) to promote changes to the industry's structure will result in greater complexity and, most likely, increased costs for both transmission and for maintaining the required local (Bay Area) generating capacity. Currently, CPAU's access to local generating capacity is very limited and it costs more to acquire power from more distant resources.
C I T Y
O F
P A L O
A L T O
Supply
Operating Budget FY 2011
City of Palo Alto
163
Electric Fund CPAU has made significant progress in mitigating increased costs for longer-distance generation by developing programs to stay on target with the approved long-term energy efficiency plan. CPAU is also purchasing geothermal, wind and landfill gas renewable power. Other efforts include obtaining market-based contracts and reviewing improvements to transmission infrastructure and CPAU's connections to the electric transmission grid system. CPAU continues its investigation of customer-sited generation and cogeneration options, but no customer sites have proven feasible for these options. The LEAP (Long-term Electric Acquisition Plan) reflects a planning methodology for managing the City's supply portfolio. By clearly identifying and capturing supply needs and risks, staff recommends long-term portfolio elements and short-term power purchases. During Fiscal Year 2011, implementation of the LEAP initiatives will continue. LEAP initiatives include a focus on energy efficiency, ultra-clean small-scale distributed generation, power from renewable resources, transmission upgrades, market-based contracts, and actions to meet climate protection goals. During calendar year 2009, renewable supplies from two wind projects and three landfill-gas-to-energy plants delivered about 15 percent of the City's electric supply needs (this is slightly lower than expected due to a 2month outage at the two wind projects). The City has executed contracts for renewable energy from two additional landfill-gas-to-energy plants, which are expected to come on-line in September 2010. After these two plants are in operation, the renewable supplies are expected to provide about 20 percent of the City's electric supply needs in calendar year 2010. The City released two Requests for Proposals (RFPs) in 2009 seeking additional renewable supplies to meet the Council-approved targets of 30 percent renewable by 2012 and 33 percent by 2015. As of March 2010, contracts for the best proposals from the RFPs were negotiated and, if approved, will result in sufficient renewable supplies to meet 28 percent target of the Cityâ&#x20AC;&#x2122;s electric usage. Staff intends to seek Council direction in FY 2011 as to whether additional renewable energy supplies should be pursued or the goals should be changed. Since the passage of Senate Bill 1(2003), Senate Bill 1037(2005), and Assembly Bill 2021(2006), CPAU has been required to consider cost-effective energy efficiency as our primary supply option, followed by renewable energy, and then by conventional generating sources. As a result, in addition to the previous Demand-side Management programs, there was an increased funding of energy efficiency programs. In addition, a variety of new programs delivered by third party agencies have been offered to customers in the past two years, increasing customer involvement. The City is a member of the Northern California Power Agency (NCPA). It is likely that changes to the membership arrangements may impact the cost to members such as Palo Alto. Staff will continue to be involved in monitoring and participating in those NCPA strategies that continue to enhance the value the agency provides the City.
Sales, Marketing and Customer Service The Electric Utility's Public Benefits program continues to see significant expansion to reach broader markets. The California Solar Initiative (Senate Bill 1) allowed the Photovoltaic (PV) Partners program to offer additional funding for rebates to those in Palo Alto who install solar electric panels. Customers continue to take advantage of efficiency and PV rebates, which help the City meet its Climate Protection Plan goals. The results of these programs are evaluated by a third party consultant, as required, and reported to the state.
Rates For the Electric Utility, a 10 percent rate increase was implemented effective July 1, 2009. No rate changes are proposed for July 1, 2010.
164
City of Palo Alto
Operating Budget FY 2011
Electric Fund Reserves Electric Rate Stabilization Reserves (RSRs) are maintained and managed in accordance with Council-approved guidelines. The RSRs provide a cushion for sudden changes in commodity costs and other operating expenses, to reduce the frequency of rate adjustments, and absorb any sudden cost increases. Additionally, the Councilapproved LEAP Implementation Plan specifies the need to maintain an adequate supply RSR to ensure stable rates in an environment of uncertainty. The reserves are not used to solve long-term financial needs or to address major catastrophic events. Rates are established such that revenues adequately cover current operating, capital, and financial obligations. Reserves may be above the maximum guideline level or below the minimum guideline level for a particular year as long as the levels are projected to move back to between the minimum and maximum over the five-year financial forecast planning horizon. In Fiscal Year 2009, Council approved changes to Electric RSR guidelines. Target reserve levels reflect the risk assessment of the RSRs that must be performed annually according to the guidelines. Risks for the Electric Supply RSR include exposure to hydrological conditions, market price fluctuations for electricity, changes in sales volumes, risks related to legislative and regulatory initiatives, and credit risks related to CPAU's energy suppliers. The target level for the Electric Distribution RSR is based on a risk assessment that includes potential revenue shortfalls from declining sales and requirements for Capital Improvement Programs. Without an electric rate increase in Fiscal Year 2011, the Fiscal Year 2011 Budget results in a total reserve balance of approximately $102.4 million. The Electric Supply RSR ending balance is projected to end Fiscal Year 2011 at $26.6 million, which is below the minimum guideline of $37.0 million. The ending Electric Distribution RSR is projected to be $9.1 million as of the end of Fiscal Year 2011, which is above the minimum guideline of $6.8 million. The Calaveras Reserve is maintained to cover the amount that certain electric assets are projected to cost above their market value in the future, or their "stranded costs." In February 2009, staff provided Council with an updated assessment of stranded costs and alerted them that there could be more funds in the Calaveras Reserve than needed to cover stranded costs. In June 2009, Council adopted new guidelines for the management of the Calaveras Reserve. The guidelines require an annual re-calculation of the stranded costs, both for the upcoming budget year and for the long term, and set the minimum transfer from the Calaveras Reserve to the Electric Supply Operating Budget equal to the stranded cost estimate for the budget year. In addition, the guidelines require that if there are funds available in excess of long-term stranded cost needs, staff will work with the Utilities Advisory Commission to identify and recommend projects for Council consideration and approval. Such projects shall be to the benefit of electric ratepayers. Projects that Council has approved for funding from the Calaveras Reserve include: â&#x20AC;˘
"$200 per year in FY 2010 and FY 2011 for the PLUG-In Program for investments or incentives for cogeneration projects within the City;
â&#x20AC;˘
"$70,000 in FY 2010 to evaluate the cost-effectiveness of advanced metering infrastructure (AMI) and other smart grid elements and to develop a strategic plan to implement appropriate advanced metering infrastructure (AMI) and other smart grid elements; and
â&#x20AC;˘
"$2 million in seed funding for a Business Electric Efficiency Financing Program.
Other projects may be identified in FY 2011 for funding from the Calaveras Reserve. The projected Calaveras Reserve balance is $62.6 million at the end of Fiscal Year 2011.
PROGRAM UPDATE As of February 2010, there have been 342 photovoltaic systems installed, representing over 2,200 kW of
Operating Budget FY 2011
City of Palo Alto
165
Electric Fund pollution-free electric generation on the rooftops of Palo Alto businesses and residents. In addition, PaloAltoGreen remains the number one voluntary renewable energy program in the country. PaloAltoGreen currently boasts a participation rate greater than 21% percent. Since the City of Palo Alto has increased its participation in PaloAltoGreen and the City has engaged in many other renewable and sustainable practices, the Environmental Protection Agency (EPA) has designated Palo Alto as a "Green Power Community" for the third year in a row. Two new lighting incentive programs were run in 2009 and 2010. The first program was run in conjunction with April's Earth Day and encouraged residents to purchase both LED (Light Emitting Diode) puck lights to familiarize themselves with this new technology and CFL (compact fluorescent) Indoor Flood lights to take advantage of their substantial energy savings over incandescents. This program paid out rebates for 1,622 CFL flood lights and a similar number of LED puck lights. First year energy savings were 51,900 kilowatt hours. The second program was run during December and offered free LED holiday light strings to residents in exchange for their old working incandescent light strings. A total of 900 customers participated, translating into an estimated first year energy savings of just under 74,000 kilowatt hours. Significantly, this "in person" exchange model had the added benefit of facilitating positive communications with customers about other efficiency programs available to them. Other new programs included the Commercial and Industrial Energy Efficiency Program for larger businesses, enhancements to the small business Right Lights+ program, and a program to install energy-saving measures in commercial kitchens. All three programs are delivered by outside, third party agencies, thus allowing the department to increase the breadth and depth of programs available to customers without increasing staff. A program to provide residents with information comparing energy and water usage with similar neighbors (Home Utility Usage Report, otherwise known as Home Energy Report) will begin in FY 2011. Money to start this program was provided by the federal government through the American Recovery and Relief Act (ARRA) stimulus funds. The City received recognition in 2009 for achievements supported by Solar Programs in the Electric Fund, including: •
"Environment California, a statewide nonprofit environmental group, in a report they just released entitled California's Solar Cities: Leading the Way to a Clean Energy Future, analyzed the amount of solar power installed to date in California on a city by city basis. This organization announced that the city of Palo Alto is home to one of the largest numbers of solar roofs---as well as the largest amount of solar energy (kilowatts) in the state. Mayor Peter Drekmeier was presented with a Solar Champion award on July 13th to acknowledge our city's accomplishment.
•
"NorCal Solar Energy Association gave an award to the City of Palo Alto for being one of the top three cities in Northern California in the categories of Total Watts Installed and Watts per Capita Installed in calendar year 2008. The Mayor accepted the award on July 15th during the Intersolar Conference in San Francisco.
•
"Solar Electric Power Association gave an award to the City of Palo Alto for ranking as the third highest electric utility in the country in the category Total Solar Watts Installed per Customer-2008. This award was presented to Utilities Director Valerie Fong at SEPA's national utility solar conference in San Jose.
COUNCIL PRIORITY IMPLEMENTATION Environmental Sustainability
In August 2006, Council endorsed the California Publicly Owned Electric Utilities' Principles Addressing
166
City of Palo Alto
Operating Budget FY 2011
Electric Fund Greenhouse Reduction Goals, which commits the Electric Fund to develop a greenhouse gas reduction plan consistent with the State's reduction goals. In December 2006, Council approved a Resolution joining International Cities for Local Environmental Initiatives (ICLEI)'s "Cities for Climate Protection Campaign", committing to undertake actions to reduce greenhouse gas emissions throughout the community. In March 2007, Council approved new Long-term Electric Acquisition Plan Objectives and Guidelines, which include the guideline to develop a Climate Action Plan that recognizes the Mayor's Green Ribbon Task Force recommendations and the ICLEI campaign milestones, and revised guidelines that accelerate and expand the City's renewable energy goals, set the stage for expanded and enhanced energy efficiency programs, and promote local small-scale and ultra-clean distributed generation and cogeneration. More details are in the Palo Alto Climate Protection Plan approved by Council in December 2007. In 2008 the City completed its third California Climate Action Registry greenhouse gas inventory and certification for year 2007, retaining the designation of "Climate Action Leader." Estimated community-wide CO2 emissions from CPAU-provided electricity were higher in 2007 (198,314 metric tons) than in base year 2005 (145,007 metric tons), despite increases in power deliveries from renewable resources. The higher emissions were a result of the purchase of market based brown electricity to make up for the loss of hydro electricity production due to California's drought conditions. PaloAltoGreen continues to maintain the highest participation rate of any green pricing program in the nation, with over 21% percent of electric customers continuing with the program. As a result, CPAU purchases an additional 6 percent of its annual energy supply from wind and solar resources on top of the renewable supplies purchased to meet the Council-approved renewable portfolio targets. One new Bay Area landfill generation facility is now on-line and a second one became operational in 2009, increasing renewable energy supplies to almost 18 percent of annual energy use by the end of 2009. Contracts for additional renewable resources, obtained as part of our progress toward the City's accelerated renewable energy goals, are expected to be presented to Council as negotiations are completed. Costs for these new resources are included in the electric supply budget for Fiscal Year 2011. All of the Electric Fund's residential and commercial energy and demand-side management programs and incentives contribute to the Council's priority of "Environmental Sustainability." Since the City itself is also a top customer for the Utilities energy efficiency programs, these programs also contribute to the Council's "Economic Health" priority by lowering the operating costs of City facilities and parks. The Electric Fund began a pilot project to study Light Emitting Diode (LED) street lights, which should use less energy and can be disposed of without concern about releasing mercury into the atmosphere. Additional lighting will be replaced through money provided from the American Recovery and Relief Act (ARRA) stimulus funds. Fiscal Year 2011 will see continued funding for efficiency, renewable energy and other demand-side management activities as required by the State of California's Public Benefits guidelines. This just under $3 million annual funding is mandated through billing surcharges based on 2.85% of utility revenues. Supplemental annual funding of $1.55 million for Fiscal Year 2011 will be provided through the Resource Supply budget to comply with various state legislative requirements, including those of Senate Bill 1, the California "million solar roofs" legislation. Residential programs promoting Environmental Sustainability in Fiscal Year 2011 include: •
Smart Energy Program (includes rebates for ENERGY STAR® appliances, insulation, furnaces, and other equipment)
•
Residential Energy Assistance Program (REAP) for low income efficiency installations
•
Refrigerator recycling program
Operating Budget FY 2011
City of Palo Alto
167
Electric Fund •
Online Home Energy Analysis
•
PV Partners for Photovoltaic or solar electric installation rebate program
•
Community event sponsorship promoting participation in residential efficiency programs
•
PAUSD Grant Program, $50,000 grant for efficiency education
•
PaloAltoGreen-renewable energy supply source option
•
New construction incentive program
•
Lighting incentive programs, as described above
•
In-home energy audits (provided by Acterra)
•
Blue Line Monitoring System through in-home energy audits
Commercial programs promoting Environmental Sustainability in Fiscal Year 2011 include: •
Commercial Advantage Program with rebates for many efficiency equipment installations
•
Commercial and Industrial Energy Efficiency Program, which provides focused audit and implementation assistance for larger businesses
•
PV Partners (Solar Electric Rebate Program)
•
Right Lights+ Program (small commercial lighting, refrigeration, and controls installation program)
•
Data center efficiency program
•
New Construction incentive program
•
Meter Links website program to show the customer's prior-day load profile
•
Efficiency training for City facilities staff and customers
•
PLUG-In ultra-clean small-scale distributed generation and cogeneration
•
Efficiency programs are reviewed by a third party agency to ensure that savings are being appropriate evaluated, measured, and verified, as required by Assembly Bill 2021
168
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Operating Budget FY 2011
Electric Fund
FUND SUMMARY FY 2009 Actuals
Net Sales Interest Income Other Income TOTAL FUND REVENUES Administration General Services CIP Operations
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
106,320,485 113,765,304 113,765,304 129,789,675 112,561,075 7,711,325 5,024,100 5,024,100 5,024,100 4,299,000 15,903,475 11,154,548 14,569,837 12,080,548 11,718,930 $129,935,285 $129,943,952 $133,359,241 $146,894,323 $128,579,005 6,505,167 6,024,113 6,056,796 6,074,674 6,272,851 121,409 1,318,565
210,000 1,267,588
674,015 1,274,627
915,000 1,268,268
915,001 1,271,196
FY 2011 Budget Change
(1,204,229) (725,100) (2,850,907) $(4,780,236) 216,055
(1%) (14%) (20%) (4%) 4%
240,986 36% (3,431) 0%
Resource Management Purchases 82,348,076 77,697,251 77,697,251 84,015,364 74,078,000 (3,619,251) Operations 2,062,511 4,995,524 7,010,704 4,996,989 4,099,893 (2,910,811) Customer Support Services 1,650,733 1,703,400 1,775,401 1,704,688 1,735,782 (39,619) Distribution System Systems Improvement(CIP) 6,799,216 7,075,000 7,170,000 370,784 5,079,168 6,315,000 Customer Design and Connec1,948,613 2,009,999 2,050,544 1,899,999 2,000,000 (50,544) tion Services(CIP) Operations 8,713,165 10,655,798 10,615,501 10,719,556 10,539,191 (76,310) Demand-side Management (DSM) 3,099,907 3,031,003 5,225,444 3,476,002 2,995,143 (2,230,301) Debt Service 7,859,000 8,953,000 8,949,000 1,090,000 8,089,119 7,859,000 Equity Transfer 9,267,689 11,120,000 11,120,000 11,530,000 11,195,000 75,000 Rent 3,252,664 3,498,101 3,498,101 3,498,101 3,498,101 0 Operating Transfers Out 785,345 819,340 865,625 80,280 6,283,886 692,072 TOTAL FUND EXPENDITURES $139,740,672 $137,078,849 $142,441,945 $146,945,981 $135,584,783 $(6,857,162) $(51,658) $(7,005,778) $2,076,926 TO/FROM RESERVES $(9,805,387) $(7,134,897) $(9,082,704)
Operating Budget FY 2011
% Chg
(5%) (42%) (2%) 5% (2%) (1%) (43%) 14% 1% 0% 10% (5%)
City of Palo Alto
169
Electric Fund
INPUTS FY 2009 Actuals Utility Purchases and Charges Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges Debt Service Equity Transfer Capital Improvement Program Operating Transfers Out
TOTAL EXPENDITURES
82,348,076 10,992,864 2,201,528 612,299 5,927 2,304,145 3,434,145 7,051,804 8,089,119 9,267,689 7,149,190 6,283,886
FY 2010 Adopted Budget 77,697,251 11,342,950 4,273,552 775,677 99,080 3,591,771 3,761,501 7,330,996 7,859,000 11,120,000 8,534,999 692,072
FY 2010 Adjusted Budget 77,697,251 11,574,391 4,551,602 768,427 99,080 7,435,144 3,711,501 7,316,429 7,859,000 11,120,000 9,523,775 785,345
FY 2011 Adopted-inConcept Budget 84,015,364 11,352,980 4,372,526 775,677 99,080 3,986,106 3,761,501 7,390,408 8,953,000 11,530,000 9,889,999 819,340
FY 2011 Proposed Budget 74,078,000 10,491,734 4,283,551 814,658 84,080 3,173,845 3,755,176 7,809,113 8,949,000 11,195,000 10,085,001 865,625
$139,740,672 $137,078,849 $142,441,945 $146,945,981 $135,584,783
Total Full Time Positions Total Temporary Positions
103.67 3.76
105.98 3.50
105.98 5.26
B ENCHMARKING MEASURES FY 2009 Actuals
105.98 3.50
FY 2010 Adjusted Budget
103.45 4.10
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Average purchase cost per MWH (SEA) 2. The Standard & Poor's revenue bond credit rating will be AA- or higher.(SP-F2.1) 3. Percent of electricity from Palo Alto Green Program (SEA) 4. Percent of customers enrolled in Palo Alto Green Program (SEA) 5. Average wait time for customers calling the Customer Service Center will be 70 seconds or less. 6. Number of total participants in the Rate Assistance Program (RAP) 7. Amount of annual assistance for RAP for Electric bills 8. Number of service orders (for high meter reads, meter problems, and other investigations from customers or staff that require a field visit) 9. Reading accuracy for the Meter Reading group will be equivalent or higher than industry standards. 10. Achieve percentage of customers in PAG as shown in City's adopted Sustainability Policy 11. Achieve 10 Year Energy Efficiency Goals in kWh- Residential 12. Achieve 10 Year Energy Efficiency Goals in kWh- Business
170
City of Palo Alto
83.34
77.13
79.25
AA-
AA-
AAA
6.4% 20%
6% 22%
6% 25%
70 Sec
70 sec
<180 sec
1,000 $165,000
1,000 $180,000
1,500 $270,000
17,700
18,000
18,000
99.88
99.90
99.9
20%
22%
25%
1,319,660 3,348,051
750,000 3,500,000
800,000 3,750,000
Operating Budget FY 2011
Electric Fund BENCHMARKING MEASURES
FY 2010 Adjusted Budget
FY 2009 Actuals 13. Number of Palo Alto School District students attending class presentations for solar, electricity, and water education
FY 2011 Proposed Budget
1,850
1,850
1,850
66.51
<60 minutes/ cus/yr
<60
<3
<3
<3
25%
>25%
<15%
N/A
N/A
>10%
79
87
80
8.6
7.7
7.7
83%
>85%
85%
16.5%
17.9%
19%
5%
0.068%
.068%
<5%
<5%
<5%
2,204
3,000
3200
Efficienc y : 1. Customer outages will be equal to or less than 60 minutes in duration as reported in the nationally recognized electric System Average Interruptible Duration Index (SAIDI) (SP-C2.1) 2. The number of customer outages will be equal to or less than 3 per customer per year as reported in the nationally recognized System Average Interruption Frequency Index (SAIFI) 3. Bank Drafting- Increase the participating customers to greater then 25% of total 4. My Utilities Account- increasing the participating customers to greater than 10% of total 5. Increase participants in low-income efficiency program (REAP) by 10%
Effe c t iveness: 1. The customer satisfaction rating from an outside rating agency, measured against other California utilities will be equal to or greater than the state average. The scale is from one to ten with ten being the highest (SP-C1.1) 2. Citizen survey- percent rating electric utility good or excellent (SEA) 3. Increase annual purchase of electricity from renewable fuel sources to meet Council-directed targets of (1) 20% renewable power by 2008 (2) 30% renewable power by 2012 and (3) 33% renewable power by 2015 4. Uncollectable Revenue (Write-Off ) will be less than 0.068 percent of Fund Net Revenue. (new) 5. Reduce days lost due to workplace injury to 5 or less 6. Increase kW of solar electric (PV) systems installed in PV Partners Program to level in City's 10 Year Plan
RESERVES ($000)
FY 2011 Projected Beginning Balance
Emergency Plant Replacement
1,000
Distribution Rate Stabilization
9,073
Supply Rate Stabilization Calaveras Public Benefit Central Valley O&M
Operating Budget FY 2011
FY 2011 Changes
FY 2011 Projected Ending Balance
FY 2011 Reserve Guideline Range
1,000
1,000 (min.)
(17)
9,056
6,834 - 13,669
33,924
(7,373)
26,551
37,039 - 74,078
62,209
384
62,593
2,309
2,309
153
153
City of Palo Alto
171
Electric Fund RESERVES ($000)
FY 2011 Projected Beginning Balance
Underground Loan
717
TOTAL RESERVES
$109,385
FY 2011 Projected Ending Balance
FY 2011 Changes
RESOURCE LEVEL CHANGES
FY 2011 Reserve Guideline Range
717 $(7,006)
$102,379
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
R E VE N U E C H A N G E S ( $ 0 00 ) Decrease net sales Increase surplus energy revenue Increase connection charges Increase CIP reimbursements from customers Decrease other revenue Decrease interest income Increase in operating transfers from other Enterprise Funds (Note 2)
TOTAL REVENUE CHANGES
(1,064) 193 50 5 (84) (725) 260 $(1,365)
Adjustments (Note 1)
NET REVENUE CHANGES
$(1,365)
(1,064) 193 50 5 (84) (725) 260 $0
$(1,365)
(3,415)
(3,415)
$(3,415)
$(4,780)
E X P E N D I T U R E C H A N G E S ( $ 00 0 ) Salary and Benefits Salary Adjustments (Note 3) Personnel Benefits Costs Decrease (Note 4) Total Salary and Benefits Changes
(615) (401) $(1,016)
Adjustments (Note 1) Net Salary and Benefits Changes
$(1,016)
(615) (401) $0
$(1,016)
(143)
(143)
$(143)
$(1,159)
Non-Salary Decrease electric commodity (Note 5) Increase debt service Decrease energy risk management cost Decrease in solar rebates- alternative resource programs related to state legislation SB1 Decrease demand-side management program incentives Increase capital improvement program (Note 6) Allocated Charges Increase (Note 7) Increase rate of return transfer to General Fund
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City of Palo Alto
(3,619) 1,090 (10)
(3,619) 1,090 (10)
(500)
(500)
(309) 632 465 75
(309) 632 465 75
Operating Budget FY 2011
Electric Fund RESOURCE LEVEL CHANGES Decrease operating transfer to General Fund (Note 8) Increase operating transfer to Capital Projects Fund Decrease operating transfer to Gas Fund Increase operating transfer to Technology Fund (Note 9)
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
(366) 50 (16) 412
(366) 50 (16) 412
Total Non-Salary Changes
$(2,096)
$0
$(2,096)
TOTAL EXPENDITURE CHANGES
$(3,112)
$(143)
$(3,255)
(3,602)
(3,602)
$(3,745)
$(6,857)
Adjustments (Note 1)
NET EXPENDITURE CHANGES
$(3,112)
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Increase in transfers from other Enterprise Funds reflects reimbursements for CIP EL-10008 Advanced Metering Infrastructure and CIP EL-11014 Smart Grid Technology. Note 3: Salary adjustments are primarily due to a net decrease of 1.53 FTEs which includes various reallocations to/from other funds and the additions of 0.34 FTE Senior Business Analyst, 0.15 FTE Compliance Manager, 0.25 FTE Customer Service Representative, and 0.25 FTE Customer Service Specialist. Note 4: Personnel benefit costs have decreased mainly due to a net decrease of 1.53 FTEs and a change in methodology of estimating benefit costs. Note 5: Changes in electric commodity costs are due to expected changes in supply and transmission expenses. Note 6: Projected CIP expenditures for the Electric Fund are $10.1 million in Fiscal Year 2011. Note 7: Increase in allocated charges is primarily due to increases in utilities administration charges. Note 8: Decrease in operating transfer to General Fund in Fiscal Year 2011 reflects end of payments for retiree medical catch-up plan. Note 9: Changes in transfers to Technology Fund are due primarily to the costs of the SAP upgrade/Utilities billing system.
SERVICE LEVEL CHANGES Energy efficiency and renewable energy programs
These programs continue to be expanded and enhanced to follow the requirements of both state legislation and the City's Climate Protection Plan goals. New efficiency programs have focused on the underserved markets of small commercial and residential low income customers, as well as providing greater incentives to motivate owners and builders to look at "greener" and more efficient designs for new construction. The solar electric PV Partners program will be redesigned again to closely match the new statewide solar program, which
Operating Budget FY 2011
City of Palo Alto
173
Electric Fund requires that funding levels and other requirements, including efficiency, new system inspection and reporting be increased. California natural gas utilities were legislatively-mandated to implement a new solar water heating program for customers. CPAU introduced our new program during 2008 to encourage additional reduction in natural gas consumption. The program incentive is an upfront rebate applied towards the installed cost of a new system. Due to the availability of this program and the fact that the systems installed in the program during the early 1980's, the electric discounts available for the past 20+ years were eliminated. Staff will be increasing the marketing and contractor participation in this program to increase the customer participation levels. Staff is in the process of developing new programs to provide additional energy efficiency options for customers. New programs in development include: "Energy Efficiency Loan Program for businesses. This program will be available to business owners and property tenants for the installation of efficient equipment and will be administered by a third party agency. "CaliforniaFIRST energy efficiency loan programs. This program will allow residents to get loans for energy efficiency and renewable energy projects. Repayment will be made through property tax liens. The program is coordinated at the state level with outside agencies and may be partially funded by the State Energy Program (a subsidiary of the federal stimulus programs). ""Keep Your Cool" business program will provide enhanced replacement services for small businesses with cooling fan motors. The electronically controlled motors will be replaced at low or no charge, if the grant from the State Energy Program is approved. This program is being implemented with a group of publicly owned electric utilities throughout the state.
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Operating Budget FY 2011
Fiber Optics Fund
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Operating Budget FY 2011
Fiber Optics Fund Fiber Optics Fund To be the premier utility of fiber optic services in the City of Palo Alto with a high level of commitment to the community. Offered services will have high customer value with Quality of Service that exceeds our customers' expectations. OVERVIEW Launched in 1996, the City of Palo Alto Utilities (CPAU) Commercial Fiber Optics Enterprise Fund provides a high level of expertise in the design, construction, and operation of "dark fiber optic" network services to the Palo Alto business community. Dark fiber optics service is characterized as the fiber optics cabling, splice points, service connections and other infrastructure which provide the high-capacity bandwidth needed to transport very large quantities of data. It does not include, however, the transmitters, receivers or data itself, which are supplied and controlled by each customer.
C I T Y
O F
P A L O
A L T O
The CPAU Fiber Optics system is comprised of a 40.6-mile "dark fiber optics backbone ring" within Palo Alto, to which individual customers are connected via fiber optics "service connections". Service is provided through approximately 173 connections including the City of Palo Alto. Fiber Optics customers are comprised of businesses, schools, and home-based businesses. This includes fiber optics connectivity provided to telecommunication service resellers. Several City departments and sections of City government also use the fiber optics network including Libraries, Foothills Park Interpretive Center, traffic signals, and the Wastewater Treatment Plant. New customers pay the construction fees required to connect to the fiber optics backbone. In 1996, the Electric Enterprise Fund provided initial financial resources to the fledgling enterprise in the form of loans for capital (infrastructure) and operating expenses. These funds were used to construct the fiber optics backbone within the City. At the end of Fiscal Year 2008, the fiber optics business completed the loan repayment to the Electric Enterprise Fund for all capital and operating expenses from the beginning of the project. A separate Fiber Optics Enterprise Fund, capable of maintaining its own capital and operating budgets and financial operating reserve, was also created. In Fiscal Year 2010, the CPAU Fiber Optics staff continues to concentrate on connecting new customers and expanding service to existing customers, in a timely manner. Restructuring of rates and pricing options has continued to drive customer growth, with an increase of approximately 6.7% in annual revenue in the last twelve months. As with any maturing industry, customers both enter and leave the system for a variety of business reasons. The effects of the breadth and depth of the current economic downturn on the Fiber Optics Enterprise Fund are unknown at this time, but CPAU fiber optics service for current and potential customers remains highly competitive. In Fiscal Year 2011, the CPAU Fiber Optics staff will maintain marketing efforts to add customers on a timely basis as operations and engineering functions are available. Marketing staff will also continue to work to increase system utilization and revenues. Infrastructure Reliability- Engineering and Operations
A capital project exists to extend the "dark" fiber network around Palo Alto. This network in turn, is licensed to parties providing telecommunication services to citizens and businesses in Palo Alto. Included in the project are increases in system capacity, development of fiber sub-rings, and general improvements to the fiber system. This project promotes the formation of a competitive market for telecommunications in Palo Alto, while limiting the negative impacts on Palo Alto's environment by using pre-existing conduit and poles. A second capital project provides funds for the installation of fiber optic infrastructure for new service connections. These services are fully reimbursed by the customer. Utility operations staff continues to monitor the integrity of the system and make any necessary repairs.
Operating Budget FY 2011
City of Palo Alto
177
Fiber Optics Fund Customer Service and Marketing
During Fiscal Year 2011, operating revenue is projected to increase by 11.0 percent. In that same time period, the number of service connections is projected to increase by 5.0 percent. Over the last year the number of service connections grew by 8.0 percent. Continuous improvements are being made to CPAU fiber optic business processes to reduce customer cost-to-connect, streamline and improve data management, and coordinate internal workloads to increase efficiency. Rates and Reserves
New customers take service under Fiber Optics Rate Schedule EDF-3, based on the most recently completed cost of service study. Some existing customers with earlier, unexpired agreements take service under Fiber Optics rate Schedule EDF-1, the cost of which is adjusted annually by the Consumer Price Index. The Fiber Optics Enterprise Fund has been created and this fund has fully repaid the initial loan and subsequent operating expenses which were taken from the Electric Enterprise Fund to design and build the dark fiber ring servicing the City. A Fiber Optics Enterprise Fund Rate Stabilization Reserve (RSR) was established in Fiscal Year 2009 with guidelines for minimum and maximum reserve levels. The Fiber Optics RSR level is projected to be $9.0 million for Fiscal Year 2011. These levels are above the RSR maximum guideline level of $1.5 million for Fiscal Year 2011. Staff continues to explore the utilization of Fiber Optics Fund reserves to independently proceed with a phased build-out of the existing backbone to achieve the City's vision of a universally fiber-connected City. By providing competitively-priced fiber optics services to commercial customers, customers are retained within the City, economic development efforts are enhanced, and the City is able to expand a valuable community asset.
PROGRAM UPDATE The Commercial Fiber Optic cable network ("backbone ring") has been installed in all the areas planned in the original proposal. A Capital Improvement Project (CIP) is funded annually for the replacement of system components that have reached the end of usable life, and to make backbone enhancements based on customer demand for services. Connections to the backbone at individual splice points are performed as required for customers requesting fiber optic service and paid by customers in advance of the work. In Fiscal Year 2010, marketing efforts were enhanced and there are now a total of 59 customers (54 private and 5 governmental). CPAU will continue to promote this service in Fiscal Year 2011 among commercial customers.
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Operating Budget FY 2011
Fiber Optics Fund
FUND SUMMARY FY 2009 Actuals
Net Sales Interest Income Other Income TOTAL FUND REVENUES Administration Planning, Marketing, and Contracts Operations and Maintenance Customer Design and Construction (CIP) Rent Operating Transfers Out TOTAL FUND EXPENDITURES TO/FROM RESERVES
FY 2010 Adopted Budget
FY 2011 Adopted-inConcept Budget
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
3,298,093 460,160 38,186 $3,796,439 637,065 252,218 362,574
2,733,859 256,300 0 $2,990,159 499,319 216,338 435,384
2,733,859 256,300 0 $2,990,159 488,364 269,680 414,400
2,733,859 256,300 0 $2,990,159 502,579 216,439 435,773
3,043,889 268,400 0 $3,312,289 1,076,836 221,868 442,340
268,239
399,999
395,340
399,999
399,999
12,902 14,273 $1,547,271 $2,249,168
14,268 11,192 $1,576,500 $1,413,659
14,268 12,951 $1,595,003 $1,395,156
14,268 23,890 $1,592,948 $1,397,211
14,268 8,337 $2,163,648 $1,148,641
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials General Expense Rents and Leases Allocated Charges Capital Improvement Program Operating Transfers Out
TOTAL EXPENDITURES Total Full Time Positions Total Temporary Positions
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Budget Change
% Chg
310,030 11% 12,100 5% 0 0% $322,130 11% 588,472 120% (47,812) (18%) 27,940 7% 4,659
1%
0 0% (4,614) (36%) $568,645 36% $(246,515)
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
800,628 191,772 2,073 4,280 17,380 248,626 268,239 14,273
635,443 114,800 18,000 19,000 15,268 362,798 399,999 11,192
659,846 116,800 18,000 14,000 15,268 362,798 395,340 12,951
636,062 114,800 18,000 19,000 15,268 365,929 399,999 23,890
975,886 164,800 18,000 19,000 15,268 562,358 399,999 8,337
$1,547,271
$1,576,500
$1,595,003
$1,592,948
$2,163,648
5.99 0.00
5.08 0.46
5.08 1.10
5.08 0.46
6.73 1.03
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Number of Customers (SEA) 2. Service Connection Fiber Miles (SEA)
Operating Budget FY 2011
47 178
50 175
53 175
City of Palo Alto
179
Fiber Optics Fund B ENCHMARKING MEASURES
3. Dollar amount of gross sales revenue
RESERVES ($000)
FY 2011 Projected Beginning Balance
FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
$3,392,636
$3,500,000
$3,600,000
FY 2011 Projected Ending Balance
FY 2011 Changes
FY 2011 Reserve Guideline Range
Emergency Plant Replacement
1,000
0
1,000
1,000 (min.)
Fiber Optic RSR
7,831
1,149
8,980
609 - 1,522
$8,831
$1,149
$9,980
TOTAL RESERVES
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
R E VE N U E C H A N G E S ( $ 0 00 ) Increase net sales Increase interest income
TOTAL REVENUE CHANGES
310 12 $322
310 12 $0
Adjustments (Note 1)
NET REVENUE CHANGES
$322 0
$322
$0
$322
E X P E N D I T U R E C H A N G E S ( $ 00 0 ) Salary and Benefits Salary adjustments (Note 2) Decrease in temporary salaries Personnel Benefits Costs Increase (Note 3) Total Salary and Benefits Changes
245 (46) 79 $278
Adjustments (Note 1) Net Salary and Benefits Changes
$278
245 (46) 79 $0
$278
33
33
$33
$311
Non-Salary Increase rate studies Increase contract services Decrease operating transfer to Technology Fund Increase capital improvement program (Note 4) Allocated Charges Increase (Note 5)
180
City of Palo Alto
10 40 (3) 9 201
10 40 (3) 9 201
Operating Budget FY 2011
Fiber Optics Fund RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
Total Non-Salary Changes
$257
$0
$257
TOTAL EXPENDITURE CHANGES
$535
$33
$568
1
1
$34
$569
Adjustments (Note 1)
NET EXPENDITURE CHANGES
$535
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Salary adjustments are primarily due to a net increase of 1.65 FTEs which includes various reallocations to/from other funds and the addition of 0.10 FTE Compliance Manager. Note 3: Personnel benefit costs have increased mainly due to a net increase of 1.65 FTEs and a change in methodology of estimating benefit costs. Note 4: Projected CIP expenditures for the Fiber Optics Fund are $400,000 in Fiscal Year 2011. Note 5: Increase in allocated charges is due to an increase in cost plan charges and utilities administration charges.
Operating Budget FY 2011
City of Palo Alto
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City of Palo Alto
Operating Budget FY 2011
Gas Fund
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City of Palo Alto
Operating Budget FY 2011
Gas Fund Gas Fund To provide valued utility services to customers and dependable returns to the City. OVERVIEW In Fiscal Year 2011, the City of Palo Alto Utilities (CPAU) Gas Fund plans to focus on: increasing infrastructure reliability, the marketing of energy efficiency programs; and maintaining an excellent safety record.
Infrastructure Reliability Capital projects planned in Fiscal Year 2011 include the design phase of Project 21. Also starting in Fiscal Year 2011 is the construction phase of Gas Main Replacement Project 19 to replace leaking, inadequately sized, and structurally deficient Acrylonitrile-Butadiene-Styrene (ABS) gas mains and services, ongoing system improvements and upgrades, and installation of services and meters for new customers. All four Gas Stations will have undergone replacement by Fiscal Year 2011.
C I T Y
O F
P A L O
A L T O
Supply Staff is guided by the Council-approved Gas Utility Long-term Plan (GULP) objectives, guidelines, and implementation recommendations. The primary objectives of GULP are to hedge volatile wholesale energy prices and to provide stable prices to retail customers. In response to the extreme volatility of gas prices and feedback from customers, staff developed a commodity-hedging program that aims to stabilize costs for residential and small commercial customers. Council has approved Gas Enabling Master Agreements with several suppliers that allow the City to diversify credit risk and to receive competitive prices on gas purchases. The latest Council-approved revisions in February 2008 to the GULP implementation recommendations brought GULP into alignment with the Climate Protection Plan and the 10-year Energy Efficiency Plan. Initiatives for Fiscal Year 2010 included expanding the voluntary green energy program, PaloAltoGreen, to include gas. Non-fossil gas resources were evaluated for this program, but determined to be too costly. Staff will evaluate purchasing greenhouse gas emissions offsets to support a voluntary green gas program and expects to have a recommendation prepared for implementation in FY 2011. Staff will also seek economical gas storage opportunities that allow the purchase of additional gas in the summer for withdrawal from storage in the higher-priced winter season. Finally, staff seeks to evaluate the potential for and complexities of entering into a long-term contract to purchase gas at a discount. However, the economic environment and difficult credit environment will delay that implementation of that initiative. A five-year laddering strategy has been utilized to guide the gas purchasing strategy. This strategy has kept natural gas rates relatively stable despite the rapid upward and downward swings in natural gas and oil prices.
Marketing and Customer Service Natural gas efficiency is viewed as an alternative to purchasing gas supply. This will expand the breadth of natural gas efficiency programs that can be offered to Palo Alto customers. The new solar water heating rebate program encourages customers to use less natural gas by harnessing the heat of the sun for hot water. Staff is researching additional efficiency programs to encourage customers to install and use more efficient equipment, thus reducing consumption. During Fiscal Year 2009, seven solar water heating systems were installed. A total of 146,028 therms were saved in first year savings. This savings rate is equal to 0.49% of natural gas sales.
Operating Budget FY 2011
City of Palo Alto
185
Gas Fund In spite of the availability of alternative suppliers in the deregulated market, the City's largest commercial and industrial gas customers have remained steadfast buyers of natural gas from CPAU. Large customers can choose between a market-based rate and a CPAU "contract" rate that locks in their usage at guaranteed prices for either a 12-month or 24-month period. Staff provides critical market information on a weekly basis to help customers make the best possible gas supply choices.
Rates For the Gas Utility, a 10 percent rate decrease was implemented effective July 1, 2009. No rate changes are proposed for July 1, 2010.
Reserves Gas Rate Stabilization Reserves (RSRs) are maintained and managed in accordance with Council-approved guidelines. The RSRs provides a cushion for sudden changes in commodity costs and other operating expenses. The aim is to reduce the frequency of rate adjustments and absorb any sudden cost increases. The reserves are not used to solve long-term financial needs or to address major catastrophic events. Rates are established such that revenues adequately cover current operating, capital, and financial obligations. Reserves may be above the maximum guideline level or below the minimum guideline level for a particular year as long as the levels are projected to move back to between the minimum and maximum guideline levels over the five-year financial forecast planning horizon. In Fiscal Year 2009, Council approved changes to the Gas RSR guidelines. Target reserve levels reflect the risk assessment of the RSRs that must be performed annually according to the guidelines. Risks for the Gas Supply RSR include exposure to market prices for gas, changes in sales volumes, and risks related to legislative and regulatory initiatives. The target level for the Gas Distribution RSR is based on a risk assessment that includes potential revenue shortfalls from declining sales and requirements for Capital Improvement Programs. Without a gas rate change in Fiscal Year 2011, the Fiscal Year 2011 Budget results in a total reserve balance of approximately $9.3 million. The Gas Supply RSR ending balance is projected to be approximately $3.4 million, which is below the minimum guideline level of $6.1 million. The ending Distribution RSR is projected to be $3.9 million, which is above the minimum guideline of $3.2 million. Staff believes that the projected Gas Supply RSR balance is sufficient to meet the risk assessment requirement for Fiscal Year 2011, but future supply-related rate increases may be necessary if changes occur in the wholesale gas market. Withdrawals of Gas Distribution RSR funds have taken place over the last several years to mitigate the increase in customer supply costs and additional expenses such as allocated Workers' Compensation and retiree medical liabilities. However, staff will continue to evaluate the Gas Distribution RSR balance on an ongoing basis.
COUNCIL PRIORITY IMPLEMENTATION Environmental Sustainability
In December 2006, Council approved a resolution joining the International Council for Local Environmental Initiatives' (ICLEI) Cities for Climate Protection Campaign, committing to undertake actions to reduce greenhouse gas emissions throughout the community. Supporting this goal, the Gas Utility Long-term Plan Guideline #4 is to pursue cost-effective energy efficiency investments, reflected in the Utilities Ten-Year Energy Efficiency Portfolio Plan. Consistent with the Cityâ&#x20AC;&#x2122;s Climate Protection Plan, all of the Gas Fund's energy and demand-side management programs and incentives contribute to the Council's Top Five Priority of Environmental Sustainability. Since the City is also a top customer for these programs, the Utilities energy efficiency programs also contribute to Council's priority for City Finances, since City facilities and parks costs are lowered. Funding for supply-funded incentives and analysis will continue into Fiscal Year 2010, as a result of
186
City of Palo Alto
Operating Budget FY 2011
Gas Fund state legislation addressing energy efficiency and solar water heating. This supply funding is in addition to the already funded Demand-side Management (DSM) programs. Funding for the DSM programs is based on 1 percent of revenue sales. The City has been reporting the natural gas related greenhouse gas emissions for the period 2005-2007 to the California Climate Action Registry and has earned the designation of "Climate Action Leader." Estimated community-wide CO2 emission from CPAU-provided natural gas in 2007 was 168,000 metric tons (compared to 165,000 metric tons in 2006 and 166,000 tons in year 2005). City government operations use of natural gas was 5,504 tons in 2007 (compared to an estimated 3,953 tons in 2006 and 6,499 tons in 2005). The emissions variation is primarily due to natural gas used at the RWQCP and landfill gas collected and used by the RWQCP. In the Gas Fund, under the Council Priority relating to environmental sustainability, there are programs for both residential and commercial customers. These programs and other new initiatives are described in detail in the Utilities Chapter of the Palo Alto Climate Protection Plan, approved by Council in December 2007. This year we will continue to evaluate options to obtain non-fossil alternatives to natural gas, such as pipeline quality gas made from biomass, and if feasible, to implement a voluntary program similar to PaloAltoGreen for gas customers. Residential programs addressing Environmental Protection in Fiscal Year 2010 include: •
Smart Energy Program (including rebates for high efficiency appliances, furnaces, boilers, insulation, and other items)
•
Residential Energy Assistance Program (REAP) for low income efficiency installations
•
Community event sponsorship to promote participation in residential efficiency programs
•
PAUSD Grant Program, $50,000 grant for efficiency education in local schools
•
New construction incentive programs
•
PLUG-IN (Cogeneration)
•
Retro-commissioning training for City facilities staff
Commercial programs addressing Environmental Protection include: •
Commercial Advantage Program (Commercial Prescriptive Rebate Program)
•
Consultant Assistance for Resource Efficiency (Commercial Energy Audits)
•
Meter Links to show the customer's prior-day load profile
•
Institutional programs to pursue energy and water audits of all reasonable facilities, including City facilities
•
Efficiency bidding to select vendors servicing customers that bid both on price and the energy savings
•
Third party delivered efficiency programs Right Lights Plus Commercial and Industrial Energy Efficiency Program
Operating Budget FY 2011
City of Palo Alto
187
Gas Fund
FUND SUMMARY FY 2009 Actuals
Net Sales Interest Income Other Income TOTAL FUND REVENUES Administration Resource Management Purchases Operations Customer Support Services Distribution System Systems Improvement(CIP) Customer Design and Connection Services(CIP) Operations Demand-side Management (DSM) Debt Service Equity Transfer Rent Operating Transfers Out TOTAL FUND EXPENDITURES TO/FROM RESERVES
188
City of Palo Alto
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
47,249,896 44,222,000 44,222,000 50,448,000 43,993,054 1,614,478 1,009,500 1,009,500 1,009,500 847,400 623,067 693,398 1,702,363 655,398 810,680 $49,487,441 $45,924,898 $46,933,863 $52,112,898 $45,651,134 2,181,319 2,816,970 2,824,874 2,841,989 3,262,207
FY 2011 Budget Change
(228,946) (162,100) (891,683) $(1,282,729) 437,333
% Chg
(1%) (16%) (52%) (3%) 15%
25,091,226 671,912 1,167,994
26,858,750 1,132,002 1,226,738
26,858,750 1,143,913 1,249,049
27,355,569 1,162,515 1,227,698
24,595,362 1,425,405 1,251,529
(2,263,388) (8%) 281,492 25% 2,480 0%
5,289,559
1,699,002
1,722,572
7,208,002
7,624,999
5,902,427 343%
597,321
690,000
703,476
700,000
699,999
(3,477)
0%
3,543,786 4,019,784 4,091,040 4,026,662 4,166,503 75,463 2% 364,844 581,001 681,441 654,001 851,522 170,081 25% 946,716 946,613 946,613 (103) 0% 520,942 946,716 3,135,257 5,300,000 5,300,000 4,930,000 5,304,000 4,000 0% 204,560 215,371 215,371 215,371 215,371 0 0% 406,561 396,343 614,475 207,914 51% 1,648,399 366,678 $44,417,119 $45,853,012 $46,143,763 $51,664,763 $50,957,985 $4,814,222 10% $790,100 $448,135 $(5,306,851) $(6,096,951) $5,070,322 $71,886
Operating Budget FY 2011
Gas Fund
INPUTS FY 2009 Actuals Utility Purchases and Charges Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges Debt Service Equity Transfer Capital Improvement Program Operating Transfers Out
TOTAL EXPENDITURES
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
25,091,226 4,029,288 (172,840) 337,296 4,291 213,464 297,658 3,425,258 520,942 3,135,257 5,886,880 1,648,399
26,858,750 4,369,546 801,770 520,584 62,590 595,210 325,781 3,316,385 946,716 5,300,000 2,389,002 366,678
26,858,750 4,482,164 897,770 518,584 62,590 594,510 325,781 3,324,289 946,716 5,300,000 2,426,048 406,561
27,355,569 4,373,424 831,770 520,584 62,590 668,191 325,781 3,345,896 946,613 4,930,000 7,908,002 396,343
24,595,362 4,641,122 1,021,270 521,324 62,590 657,951 325,781 3,942,499 946,613 5,304,000 8,324,998 614,475
$44,417,119
$45,853,012
$46,143,763
$51,664,763
$50,957,985
47.01 1.38
46.79 2.19
48.54 3.25
46.79 2.19
52.10 1.48
Total Full Time Positions Total Temporary Positions
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Percent of class one gas leaks repaired within Department of Transportation (DOT) Timelines of less then 4 hours 2. Miles of gas main replaced during year (SEA) 3. Average purchase cost (per therm) 4. The Standard & Poor's revenue bond credit rating will be AA- or higher. (SP-F2.1) 5. Average wait time for customers calling the Customer Service Center will be 70 seconds or less. 6. Number of participants in the total Rate Assistance Program (RAP) 7. Amount of annual assistance for RAP for Gas bills 8. Number of service orders (for high meter reads, meter problems, and other investigations from customers or staff that require a field visit) 9. Reading accuracy for meter reading will be equivalent or higher than industry standards 10. Therms saved by Energy Efficiency Programs- Residential 11. Therms saved by Energy Efficiency Programs- Business 12. Number of hot water solar systems (new)
Operating Budget FY 2011
100%
100%
100%
5.7% $0.83
5.7% $0.72
3.0% $0.78
AA-
AA-
AAA
70 sec
70 sec
<180 sec
1,200 $75,000
1,300 $80,000
1,500 $110,000
24,000
23,400
23,500
99.88
99.90
99.9
42,985 103,043 7
50,000 200,000 23
50,000 200,000 40
City of Palo Alto
189
Gas Fund B ENCHMARKING MEASURES
FY 2010 Adjusted Budget
FY 2009 Actuals
FY 2011 Proposed Budget
Efficienc y : 1. Bank Drafting- Increasing the participating customers to greater then 25% of total 2. My Utilities Account- increasing the participating customers to greater than 10% of total
>25%
>25%
>15%
N/A
N/A
>10%
8.6
8.6
8.6
81%
=>83%
83%
0.047%
0.068%
0.068%
=<5%
=<5%
=<5%
Effe c t iveness: 1. The customer satisfaction rating from an outside rating agency, measured against other California utilities will be equal to or greater than the state average. The scale is from one to ten with ten being the highest. (SP-C1.1) 2. Citizen survey- percent rating gas utility good or excellent (SEA) 3. Uncollectable Revenue (Write-Off ) will be less than 0.068 percent of Fund Net Revenue. (new) 4. Reduce days lost due to workplace injury to 5 or less
RESERVES ($000)
FY 2011 Projected Beginning Balance
Emergency Plant Replacement
1,000
Distribution Rate Stabilization
6,072
Supply Rate Stabilization
6,566
Debt Service Reserve
TOTAL RESERVES
FY 2011 Projected Ending Balance
FY 2011 Changes
1,000
1,000 (min.)
(2,169)
3,903
3,230 - 6,461
(3,138)
3,428
6,149 - 12,298
952 $14,590
RESOURCE LEVEL CHANGES
FY 2011 Reserve Guideline Range
952 $(5,307)
$9,283
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
R E VE N U E C H A N G E S ( $ 0 00 ) Decrease net sales Decrease interest income Increase other income Decrease in operating transfers from other Enterprise Funds
TOTAL REVENUE CHANGES
(74) (162) 10 (48) $(274)
Adjustments (Note 1)
NET REVENUE CHANGES
190
City of Palo Alto
$(274)
(74) (162) 10 (48) $0
$(274)
(1,009)
(1,009)
$(1,009)
$(1,283)
Operating Budget FY 2011
Gas Fund RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
E X P E N D I T U R E C H A N G E S ( $ 00 0 ) Salary and Benefits Salary Adjustments (Note 2) Personnel Benefits Costs Increase (Note 3) Total Salary and Benefits Changes
224 66
224 66
$290
Adjustments (Note 1) Net Salary and Benefits Changes
$290
$0
$290
(154)
(154)
$(154)
$136
Non-Salary Increase program and project consultants- demand-side management programs Increase program and project consultants- resource management Increase demand-side management incentives Increase other contract services for gas leak survey Increase rate of return transfer to General Fund Decrease gas commodity Increase capital improvement program (Note 4) Increase operating transfer to Technology Fund (Note 5) Increase operating transfer to Capital Projects Fund Increase operating transfer to Electric Fund (Note 6) Decrease operating transfer to General Fund (Note 7) Allocated Charges Increase (Note 8)
100
100
100 25 4 (2,263) 5,983 217 7 130 (146) 618
0 100 25 4 (2,263) 5,983 217 7 130 (146) 618
Total Non-Salary Changes
$4,775
$0
$4,775
TOTAL EXPENDITURE CHANGES
$5,065
$(154)
$4,911
(97)
(97)
$(251)
$4,814
Adjustments (Note 1)
NET EXPENDITURE CHANGES
$5,065
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Salary adjustments are primarily due to a net increase of 3.56 FTEs which includes various reallocations to/from other funds and the additions of 0.33 FTE Senior Business Analyst, 0.25 FTE Compliance Manager, 0.25 FTE Customer Service Representative, 0.25 FTE Customer Service Specialist, and 1.20 FTE Installer Repairer. Note 3: Personnel benefit costs have increased mainly due to a net increase of 3.56 FTEs and a change in methodology of estimating benefit costs. Note 4: Projected CIP expenditures for the Gas Fund are $8.3 million in Fiscal Year 2011.
Operating Budget FY 2011
City of Palo Alto
191
Gas Fund Note 5: Changes in transfers to Technology Fund are due primarily to the costs of the SAP upgrade/Utilities billing system. Note 6: Increase in transfers to Electric Fund reflects reimbursements for CIP EL-10008 Advanced Metering Infrastructure and CIP EL-11014 Smart Grid Technology. Note 7: Decrease in operating transfer to General Fund in Fiscal Year 2011 reflects end of payments for retiree medical catch-up plan. Note 8: Increase in allocated charges is primarily due to increases in utilities administration charges and vehicle replacement and maintenance charges.
192
City of Palo Alto
Operating Budget FY 2011
Wastewater Collection Fund
THIS PAGE IS INTENTIONALLY LEFT BLANK.
194
City of Palo Alto
Operating Budget FY 2011
Wastewater Collection Fund Wastewater Collection Fund To provide valued utility services to customers and dependable returns to the City. OVERVIEW In Fiscal Year 2011, the Wastewater Collection Utility plans to focus on maintaining infrastructure reliability, identifying problems in mains and service laterals through expanded use of video technology, and maintaining its excellent safety record. Consistent with the department-wide goal of focusing on reliability, staff will continue the design and construction stages of several major capital improvement projects (CIP) based on the 1989 Wastewater Collection System Master Plan (WWCMP) and 2004 WWCMP update. The Master Plans targeted top priority work in its CIP recommendations. Over the past 19 years most of the top priority CIP work has been completed.
A contract to provide services to customers with sewer blockages will continue in Fiscal Year 2011. This program has resulted in better customer service and reduced overtime. Success of this program is thoroughly evaluated using a survey of customers served by the contractor. Rates
For the Wastewater Collection Utility, a rate increase of 5 percent went into effect on July 1, 2009. No rate changes are proposed for July 1, 2010.
P A L O
The Wastewater Collection Rate Stabilization Reserve (RSR) is maintained and managed in accordance with Council-approved guidelines. The RSR provides a cushion for sudden changes in commodity costs and other operating expenses, to reduce the frequency of rate adjustments, and absorb any sudden cost increases. The reserves are not used to solve long-term financial needs or to address major catastrophic events. Rates are established such that revenues adequately cover current operating, capital, and financial obligations. Reserves may be above the maximum guideline level or below the minimum guideline level for a particular year as long as the levels are projected to move back to between the minimum and maximum over the five-year financial forecast planning horizon.
O F
Reserves
In Fiscal Year 2009, Council approved changes to the Wastewater Collection RSR guidelines. Target reserve levels reflect the risk assessment of the RSR, which must be performed annually. The target level for the Wastewater Collection RSR is based on a risk assessment that includes potential revenue shortfalls from declining sales and requirements for Capital Improvement Programs.
C I T Y
A L T O
In Fiscal Year 2011, staff will continue overlapping the design and construction elements of rehabilitation and augmentation projects. Specifically, construction will continue on Wastewater Collection System Rehabilitation/Augmentation Project 23. Design will begin for Wastewater Collection System Rehabilitation/Augmentation Project 24 with advertisement and construction occurring during the later portion of this fiscal year. Since current technology allows for the dynamic modeling of collection systems, the model will be used to provide engineering staff with data for planning future CIP projects. This higher quality dynamic analysis may reduce the need for future CIP expenditures.
Without a wastewater rate change in Fiscal Year 2011, the Wastewater Collection RSR ending balance is projected to be approximately $4.6 million, which is above the maximum guideline level of $4.3 million.
Operating Budget FY 2011
City of Palo Alto
195
Wastewater Collection Fund PROGRAM UPDATE In order to improve service to our customers, the Department contracted with an outside vendor for wastewater calls. Customer surveys assist in the monitoring of this contract to ensure continued customer satisfaction. Implementation of this contract has allowed staff to increase activities in capital and operating services to customers with favorable customer satisfaction results.
FUND SUMMARY FY 2009 Actuals
Net Sales Interest Income Other Income TOTAL FUND REVENUES Administration Customer Support Services Collection System Treatment Plant Charges Systems Improvement(CIP) Customer Design & Connection(CIP) Operations Debt Service Rent Operating Transfers Out TOTAL FUND EXPENDITURES TO/FROM RESERVES
196
City of Palo Alto
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
13,832,508 14,442,683 14,442,683 15,165,417 14,476,767 551,500 551,500 444,900 805,362 551,500 829,652 993,600 993,600 1,002,600 1,002,600 $15,467,522 $15,987,783 $15,987,783 $16,719,517 $15,924,267 1,346,772 1,355,184 1,475,516 1,500,119 1,343,702 301,176 288,569 292,992 288,796 267,314
FY 2011 Budget Change
% Chg
34,084 0% (106,600) (19%) 9,000 1% $(63,516) 0% 128,744 10% (25,678) (9%)
6,131,457 3,493,018
7,933,408 2,985,000
7,933,408 2,989,380
8,330,078 3,070,000
7,499,360 3,799,999
(434,048) (5%) 810,619 27%
260,861
961,000
966,353
890,000
330,000
(636,353) (66%)
2,439,789 2,529,078 2,555,419 2,544,457 2,708,869 70,054 129,003 129,003 129,266 129,266 114,536 114,536 114,536 108,645 114,536 732,321 96,620 107,982 564,741 567,415 $15,037,440 $16,380,916 $16,435,845 $17,287,058 $16,892,275 $(448,062) $(567,541) $(968,008) $430,082 $(393,133)
153,450 6% 263 0% 0 0% 459,433 425% $456,430 3% $(519,946)
Operating Budget FY 2011
Wastewater Collection Fund
INPUTS FY 2009 Actuals Utility Purchases and Charges Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges Debt Service Capital Improvement Program Operating Transfers Out
TOTAL EXPENDITURES
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
6,131,457 1,966,825 161,650 183,909 0 67,008 152,738 1,817,599 70,054 3,753,879 732,321
7,933,408 1,791,048 246,440 227,470 5,150 58,500 210,436 1,736,841 129,003 3,946,000 96,620
7,933,408 1,821,812 246,440 227,470 5,150 58,500 210,436 1,739,911 129,003 3,955,733 107,982
8,330,078 1,792,630 246,440 227,470 5,150 63,500 210,436 1,757,347 129,266 3,960,000 564,741
7,499,360 1,900,113 208,140 231,470 500 64,550 210,336 1,951,126 129,266 4,129,999 567,415
$15,037,440
$16,380,916
$16,435,845
$17,287,058
$16,892,275
24.21 1.24
24.68 1.46
24.94 2.23
24.68 1.46
26.93 1.11
Total Full Time Positions Total Temporary Positions
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Number of miles of sewer lines cleaned/treated annually (SEA) 2. Number of total participants in the Rate Assistance Program (RAP) 3. Average wait time for customers calling the Customer Service Center will be 70 seconds or less 4. The Standard & Poor's revenue bond credit rating will be AA- or higher (SP-F2.1)
101 None
101 None
101 None
70 sec
70 sec
<180 sec
AA-
AA-
AAA
95%
95%
95%
>25%
27%
>15%
N/A
N/A
>10%
75%
80%
80%
>81%
>83%
83%
Efficienc y : 1. Responses to notification of reportable incidents of sewer overflow will be within 2 hours for 95 percent of the time 2. Bank Drafting- Increase the participating customers to greater than 27% of total 3. My Utilities Account- increasing the participating customers to greater than 10% of total
Effe c t iveness: 1. A satisfaction survey regarding the contractor's response to wastewater backups will have a 75 percent approval rating 2. Citizen survey- percent rating quality of sewer services good or excellent (SEA)
Operating Budget FY 2011
City of Palo Alto
197
Wastewater Collection Fund B ENCHMARKING MEASURES
FY 2010 Adjusted Budget
FY 2009 Actuals 3. Uncollectable Revenue (Write-Off ) will be less than 0.068 percent of Fund Net Revenue (new)
RESERVES ($000)
FY 2011 Projected Beginning Balance
0.047%
0.068%
FY 2011 Projected Ending Balance
FY 2011 Changes
FY 2011 Proposed Budget 0.068%
FY 2011 Reserve Guideline Range
Emergency Plant Replacement
1,000
0
1,000
1,000 (min.)
Rate Stabilization
5,554
(968)
4,586
2,156 - 4,311
$6,554
$(968)
$5,586
TOTAL RESERVES
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
R E VE N U E C H A N G E S ( $ 0 00 ) Increase net sales Decrease interest income Increase other income (Note 2)
TOTAL REVENUE CHANGES
28 (107) 15 $(64)
28 (107) 15 $0
Adjustments (Note 1)
NET REVENUE CHANGES
$(64) 0
$(64)
$0
$(64)
E X P E N D I T U R E C H A N G E S ( $ 00 0 ) Salary and Benefits Salary Adjustments (Note 3) Personnel Benefits Costs Increase (Note 4) Total Salary and Benefits Changes
59 22 $81
Adjustments (Note 1) Net Salary and Benefits Changes
$81
59 22 $0
$81
(59)
(59)
$(59)
$22
Non-Salary Decrease treatment plant charges Decrease legal Increase supplies and materials Decrease operating transfer to Gas Fund Increase operating transfer to Refuse Fund (Note 5)
198
City of Palo Alto
(434) (35) 3 (16) 375
(434) (35) 3 (16) 375
Operating Budget FY 2011
Wastewater Collection Fund RESOURCE LEVEL CHANGES Increase operating transfer to Technology Fund (Note 6) Increase capital improvement program (Note 7) Allocated Charges Increase (Note 8)
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
112 226 198
112 226 198
Total Non-Salary Changes
$429
$0
$429
TOTAL EXPENDITURE CHANGES
$510
$(59)
$451
5
5
$(54)
$456
Adjustments (Note 1)
NET EXPENDITURE CHANGES
$510
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Change in other income is due primarily to an increase in revenue from connection charges. Note 3: Salary adjustments are primarily due to a net increase of 1.99 FTEs which includes various reallocations to/from other funds and the additions of 0.25 FTE Compliance Manager, 0.25 FTE Customer Service Representative, 0.25 FTE Customer Service Specialist, and 0.50 FTE Installer Repairer. Note 4: Personnel benefit costs have increased mainly due to a net increase of 1.99 FTEs and a change in methodology of estimating benefit costs. Note 5: Increase in transfer to Refuse Fund reflects reimbursement for CIP RF-10003 Drying Beds, Material Storage and Transfer Area. Note 6: Changes in transfers to Technology Fund are due primarily to the costs of the SAP upgrade/Utilities billing system. Note 7: Projected CIP expenditures for the Wastewater Collection Fund are $4.1 million in Fiscal Year 2011. Note 8: Increase in allocated charges is due primarily to increases in utilities administration charges.
Operating Budget FY 2011
City of Palo Alto
199
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200
City of Palo Alto
Operating Budget FY 2011
Water Fund
THIS PAGE IS INTENTIONALLY LEFT BLANK.
202
City of Palo Alto
Operating Budget FY 2011
Water Fund Water Fund To provide valued utility services to customers and dependable returns to the City. OVERVIEW In Fiscal Year 2011, Palo Alto's Water Utility plans to focus on increasing infrastructure reliability and responsiveness to meet the City's water supply needs during an emergency, maintaining high-quality and reliable sources of water, and marketing water efficiency programs and services.
Engineering and Operations Capital projects planned in Fiscal Year 2011 include the design and construction phases of water main replacement projects to replace structurally deficient water mains; system improvements and upgrades for underground vaults and above-ground water regulation facility locations; and continued installation and upgrading of services and meters for customers. Specifically, work will begin on the design phase of Water Main Replacement (WMR) Project 25, the construction phase of WMR Projects 24, and coating improvements to the water reservoirs.
C I T Y
O F
P A L O
A L T O
To address the critical need for ensuring sufficient water supplies during emergency situations, the City of Palo Alto Utilities (CPAU) has accelerated the implementation of the recommendations of the 1999 Water Wells, Regional Storage, and Distribution Study. This study was commissioned to evaluate ways to improve the operation and reliability of the City's water distribution system, particularly during emergency situations. The study identified a series of recommended projects. In 2007, Council certified the Environmental Impact Report (EIR) and voters overwhelmingly approved a ballot measure to use the space beneath El Camino Park for a new reservoir, pump station, and well. The design and construction of the El Camino project is running concurrently with the design phase of the other study-recommended projects. Predesign of two new emergency wells and the construction of a third were already undertaken during Fiscal Year 2010 and these projects will continue in Fiscal Year 2011. Significant funding increases appear in the Fiscal Year 2011 budget.
Supply Palo Alto's water supplier, the San Francisco Public Utilities Commission (SFPUC), has provided rate projections indicating that the City's wholesale costs will steadily increase over the next six years. This is due to the adopted construction program to repair and upgrade the SFPUC's regional water delivery system. Palo Alto has supported these system improvements and has advocated for prompt implementation of the SFPUC's Water System Improvement Program (WSIP). On October 30, 2008, the SFPUC adopted the WSIP and the San Francisco Planning Commission certified the Final Program Environmental Impact Report for the WSIP. These major milestones for the WSIP indicate that the risks to human health and safety from a major lengthy disruption of water supplies from the regional water system are being addressed. Although staff has concluded that SFPUC supplies are sufficient in normal water years, additional supplies are needed in drought years. Other water supply options are therefore under evaluation.
Operating Budget FY 2011
City of Palo Alto
203
Water Fund In Fiscal Year 2009, a Recycled Water Facilities Plan was completed. The plan identified a project to extend pipelines to deliver recycled water to the Stanford Research Park area. Significant comments were received on a draft environmental document for the project and staff has determined that a more extensive evaluation of the impacts of using recycled water on landscaping must be completed. Utilities is also working with Public Works and the other partners of the Regional Water Quality Control Plant to improve the quality of the recycled water produced. A significant barrier for the project is its high cost. To address this cost, staff is actively seeking outside funding in order to make the project feasible and cost effective. Palo Alto is a member of the Bay Area Water Supply and Conservation Agency (BAWSCA), an agency which represents all the water agencies that purchase water from the SFPUC. SFPUC's adoption of the WSIP contained a limitation on water sales from the regional water system. In response to this water supply limitation, the potential for increasing efficiency programs is being re-assessed by BAWSCA. BAWSCA has completed a study of water efficiency measures and is working with its member agencies to implement new efficiency programs. Palo Alto actively participated in the development of the plan and began implementation of the plan's recommended programs and projects in Fiscal Year 2010. One of the efforts spearheaded by BAWSCA in FY 2010 was the development of model ordinances for indoor and outdoor water use. Staff will recommend that Council adopt these ordinances in FY 2010.
Sales and Marketing Water efficiency continues to play an important role in the goals for CPAU. The cost sharing water efficiency contract with the Santa Clara Valley Water District is in its third year of providing a vast array of water efficiency projects that are currently available to Palo Alto customers. In light of current drought conditions and in anticipation of possible mandatory water restrictions, CPAU will place great emphasis on helping customers reduce water usage. In particular, reduction of outdoor irrigation watering will be targeted as a primary conservation measure, since this is the single largest water end use and the place where the greatest reductions can be readily achieved.
Rates For the Water Utility, a rate increase of 5 percent went into effect on July 1, 2009. No rate changes are proposed for July 1, 2010.
Reserves A Water Rate Stabilization Reserve (RSR) is maintained and managed in accordance with Council-approved guidelines. The RSR provides a cushion for sudden changes in commodity costs and other operating expenses, to reduce the frequency of rate adjustments, and absorb any sudden cost increases. The reserves are not used to solve long-term financial needs or to address major catastrophic events. Rates are established such that revenues adequately cover current operating, capital, and financial obligations. Reserves may be above the maximum guideline level or below the minimum guideline level for a particular year as long as the levels are projected to move back to between the minimum and maximum guideline levels over the five-year financial forecast planning horizon. In Fiscal Year 2009, Council approved changes to the Water RSR guidelines. Target reserve levels reflect the risk assessment of the RSRs, an assessment which must be performed annually according to the guidelines. The target level for the Water RSR is based on a risk assessment that includes potential revenue shortfalls from declining sales and requirements for Capital Improvement Programs.
204
City of Palo Alto
Operating Budget FY 2011
Water Fund Without a water rate change in Fiscal Year 2011, the Water RSR ending balance is projected to be approximately $13.9 million, which is above the minimum guideline level of $4.3 million.
PROGRAM UPDATE In partnership with the Santa Clara Valley Water District (SCVWD), CPAU is participating in several water conservation "Best Management Practices" (BMP) programs. These programs enable Palo Alto to meet its water conservation goals. BMPs include residential, commercial, industrial, and institutional efficiency measures for domestic water use, process use, and irrigation. Staff continues to look for ways to enhance marketing of these programs as the state continues through its third dry year and mandatory water use restrictions were imposed by the SCVWD (but not by the San Francisco Public Utilities Commission, Palo Alto's water provider). In addition, staff is working to develop a revised "Landscape Efficiency Ordinance" that can be adopted by Council. This updated ordinance will meet new state requirements and work to reduce water usage in landscapes. Staff is also working with BAWSCA agencies to adopt an indoor water ordinance, encourage the replacements of toilets with high efficiency ones, and to increase the installation of water efficient washing machines.
COUNCIL PRIORITY IMPLEMENTATION Environmental Sustainability
All of the Water Fund's demand-side management programs and incentives contribute to the Council's Top Five Priority of Environmental Sustainability, and are consistent with the Green Ribbon Task Force's recommendations. Since the City is also a top customer for these green programs, water efficiency programs contribute as well to the Council priority of “City Finances”, since City facilities and Parks costs are lowered when water use is reduced. Funding for demand side management programs is based on 1.25 percent of revenue sales for Fiscal Year 2011. In the Water Fund, there are programs for both residential and commercial customers. Almost all of the programs include a cost sharing arrangement with the Santa Clara Valley Water District (SCVWD). The exceptions are the new construction rebate programs, marketing promotions at City-sponsored events and the Palo Alto Unified School District (PAUSD) $50,000 grant for energy and water efficiency education. These SCVWD cost-shared programs include: FREE WATER CONSERVATION MATERIALS AVAILABLE:
•
Low-Flow Faucet Aerators
•
Bathroom (homes, hospitals, health care facilities): 1.5 gallons per minute (gpm)
•
Bathroom (businesses, schools, public facilities): tamper-resistant 0.5 gpm.
•
Kitchen: 2.2 gpm.
•
Low-Flow Showerheads, equipped with shut-off valve, 2.0 gpm
•
Hose Nozzles. Automatic shut-off nozzle, with varying spray patterns
•
Dye Tablets. Used to test for toilet leaks
•
Toilet Flappers to replace leaking or worn-out flappers (for both 1.6 and 3.5 gpf models)
•
Literature on Water Conservation
Operating Budget FY 2011
City of Palo Alto
205
Water Fund RESIDENTIAL WATER PROGRAMS
•
Water Wise House Call Program
•
Free indoor/outdoor water survey of home or apartment. Participation in this program pre-qualifies for other water conservation rebate programs from the Santa Clara Valley Water District (SCVWD). Trained water surveyors review water use, providing low-flow showerheads, faucet aerators and toilet flappers (if needed), and suggesting water-wise recommendations - including an annual irrigation schedule for landscape.
•
High Efficiency Toilet (HET) Rebate Program. Tank-type toilets that flush at 3.5 gallons per flush (gpf ) or greater can be replaced with new High Efficiency Toilets (HET) that flush at 1.28 gpf or less, for a rebate of up to $125 (rebate will not exceed the price of the toilet, and does not include labor or installation costs).
•
High Efficiency Clothes Washer Rebates. SCVWD offers water-saving rebates for replacing older, toploading clothes washers with high efficiency clothes washers. The rebate amount is $90 for Tier 2 models or $125 Tier 3 models. Qualifying clothes washers are listed at www.cee1.org CPAU offers energy-saving rebates for installing high efficiency clothes washers, through the Smart Energy Program. Rebate amounts are $35 for Tier 2 and $75 for Tier 3 models.
•
Water Softener Replacement Rebate Program: This program offers a $150 rebate for replacing a timerbased water softener with a more efficient demand initiated regeneration (DIR) water softener. The new DIR water softener reduces water and salt demand, which saves money.
•
Landscape Rebate Program : Rebates are available for replacing high water use landscape (turf grass) and/ or upgrading to high efficiency irrigation equipment. In order to qualify for the Landscape Rebate Program, a pre-inspection survey (Water Wise House Call) is required prior to starting a landscape project.
•
The "Cash for Grass" - receive a rebate of $1.50 per square foot of turf grass removed and replaced with approved low-water using plants and/or permeable hardscape. Maximum rebate amount for Palo Alto residents is $3,000.
•
Irrigation equipment upgrades - receive rebates for installing weather-based irrigation controllers, rain sensors, converting overhead spray to drip irrigation, replacing rotating nozzles and spray heads, etc. Rebate amounts vary, based upon the project and cost. Visit www.valleywater.org for rebate amounts.
WATER PROGRAMS FOR BUSINESSES AND SCHOOLS (CII SECTOR)
•
Indoor Water Use Survey Program: Free water surveys for commercial, industrial, and institutional (CII) facilities. Participants receive a comprehensive report detailing water use at the facility, recommendations for improving water use efficiency, water and cost savings, and information on rebates and other free programs.
•
Landscape Survey Program: Sites with 5,000 square feet or more of irrigated landscape may be eligible to participate in a free landscape irrigation audit through the Landscape Survey Program. This program provides a detailed analysis of the entire irrigation system and identifies inefficiencies. Participants are provided a full report with recommendations for how to improve irrigation system efficiency, as well as information on potential rebates available to assist with improving water use efficiency in landscaping.
•
Landscape Rebate Program : Rebates are available for replacing high water use landscape (turf grass) and/ or upgrading to high efficiency irrigation equipment. In order to qualify for the Landscape Rebate Program, sites must participate in the Landscape Survey Program.
•
Cash for Grass" - receive a rebate of $1.50 per square foot of turf grass removed and replaced with approved low-water using plants and/or permeable hardscape. Maximum rebate amount for Palo Alto businesses is $30,000.
•
Irrigation equipment upgrades : Rebates for installing weather-based irrigation controllers, rain sensors,
206
City of Palo Alto
Operating Budget FY 2011
Water Fund converting overhead spray to drip irrigation, replacing rotating nozzles and spray heads, etc. Rebate amounts vary, based upon the project and cost. •
High Efficiency Toilet (HET) and Urinal (HEU) Installation Program: Commercial, industrial, institutional facilities and multi-family dwellings with tank-type toilets that flush at 3.5 gallons per flush (gpf ) or greater can receive free high efficiency toilets that flush at 1.28 gpf or less. Installation is included in this free service. Facilities with urinals that flush at 1.0 gallon per flush or greater can receive a free flush valve retrofit kit, which reduces the flush volume to 0.5 gpf. Installation is included in this free service.
•
Commercial Rebate Program: Rebates are available for replacing flush valve toilets flushing at 3.5 gpf or greater with high efficiency flush valve toilets that flush at 1.28 gpf or less. Rebate amount is $400 for each toilet. Rebates are available for replacing urinals flushing at 1.0 gpf or greater with high efficiency urinals that flush at one pint or less. Rebate amount is $500 for each urinal replaced.
•
Commercial Clothes Washer Rebates: Property managers and owners of laundromats & multi-family common laundry rooms can receive rebates for replacing older, top-loading clothes washers with approved high efficiency models. Rebate amount is $400 for each clothes washer installed.
•
Water Efficient Technologies (WET): Rebates are available for upgrading or replacing water-using equipment to more water efficient models. The WET rebate program offers rebates of up to $50,000 per qualified water saving process or equipment change that reduces water use by at least 100 CCF per year.
•
Water Submeter Rebate Program: Rebates are available to property managers and owners of mobile home parks and condominium complexes for changing from a master water meter to individual water submeters. SCVWD offers a rebate of up to $100 per installed water submeter.
•
Commercial Water Softener Rebate Program: SCVWD offers a rebate of $400 to business owners for replacing their old timer-based water softener (owned or leased) with a new efficient demand initiated regeneration (DIR) water softener. A pre-inspection is required prior to removal of the old water softener.
Operating Budget FY 2011
City of Palo Alto
207
Water Fund
FUND SUMMARY FY 2009 Actuals
Net Sales Interest Income Other Income Bond Proceeds TOTAL FUND REVENUES Administration Resource Management Purchases Operations Customer Support Services Distribution System Systems Improvement(CIP) Customer Design and Connection Services(CIP) Operations Debt Service Equity Transfer Rent Operating Transfers Out TOTAL FUND EXPENDITURES TO/FROM RESERVES
208
City of Palo Alto
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
FY 2011 Budget Change
% Chg
(144,362) 0% 26,651,618 28,947,500 28,947,500 30,972,500 28,803,138 1,787,799 1,265,200 1,265,200 1,265,200 1,050,100 (215,100) (17%) 1,034,316 813,934 1,073,200 823,934 1,462,865 389,665 36% 0 0 (35,000,000) (100%) 0 35,000,000 35,000,000 $29,473,733 $66,026,634 $66,285,900 $33,061,634 $31,316,103 $(34,969,797) (53%) 2,161,643 2,451,446 2,454,663 2,484,407 2,644,395 189,732 8% 8,443,057 394,284 1,435,667
10,354,000 744,454 1,546,222
10,354,000 753,469 1,567,443
12,067,000 754,867 1,582,198
12,043,289 659,722 1,692,608
1,689,289 16% (93,747) (12%) 125,165 8%
4,832,492
27,013,999
27,694,778
7,762,999
8,371,000
(19,323,778) (70%)
363,907
400,001
406,996
410,001
410,001
3,005
1%
4,372,686 5,169,185 5,224,742 5,201,499 5,275,180 50,438 1% 774,586 774,501 2,980,984 2,206,398 285% 426,225 774,586 2,666,956 0 0 0 0 0 0% 1,919,052 2,107,405 2,107,405 2,107,405 2,107,405 0 0% 281,764 223,127 441,511 159,747 57% 1,887,404 258,050 $28,903,373 $50,819,348 $51,619,846 $33,368,004 $36,626,095 $(14,993,751) (29%) $(306,370) $(5,309,992) $(19,976,046) $570,360 $15,207,286 $14,666,054
Operating Budget FY 2011
Water Fund
INPUTS FY 2009 Actuals Utility Purchases and Charges Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges Debt Service Equity Transfer Capital Improvement Program Operating Transfers Out
TOTAL EXPENDITURES
FY 2010 Adopted Budget
FY 2011 Adopted-inConcept Budget
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
8,443,057 4,669,061 323,731 284,352 4,361 277,992 2,010,057 2,713,778 426,225 2,666,956 5,196,399 1,887,404
10,354,000 5,410,948 592,801 489,800 10,010 330,357 2,193,231 2,991,565 774,586 0 27,414,000 258,050
10,354,000 5,501,741 592,801 484,800 10,010 330,357 2,193,231 2,994,782 774,586 0 28,101,774 281,764
12,067,000 5,415,529 592,801 489,800 10,010 375,357 2,193,231 3,053,648 774,501 0 8,173,000 223,127
12,043,289 5,229,027 754,101 491,300 5,610 358,557 2,206,631 3,334,084 2,980,984 0 8,781,001 441,511
$28,903,373
$50,819,348
$51,619,846
$33,368,004
$36,626,095
45.74 1.94
44.16 2.63
45.15 3.19
44.16 2.63
44.56 2.08
Total Full Time Positions Total Temporary Positions
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Average cost per 100 Cubic Feet (CCF) 2. The Standard & Poor's revenue bond credit rating will be AA- or higher (SP-F2.1) 3. Total number of service orders (for high meter reads, meter problems, and investigations from customers or staff that require a field visit) 4. Reading accuracy for meter reading will be equivalent or higher than industry standards 5. Number of Water Surveys for Single-and- Multi Family Residential Customers, Single Family (SF) Audits 6. Number of Water Surveys for Single-and- Multi Family Residential Customers , Multi-Family (MF) Audits 7. Average wait time for customers calling the Customer Service Center will be 70 seconds or less
Operating Budget FY 2011
$1.47
$1.85
$2.00
AA-
AA-
AAA
24,000
24,500
30,000
99.98%
99.90%
99.90%
320
325
325
15
30
30
70 sec
70 sec
<180 sec
City of Palo Alto
209
Water Fund B ENCHMARKING MEASURES
FY 2010 Adjusted Budget
FY 2009 Actuals
FY 2011 Proposed Budget
Efficienc y : 1. A comparision of the annual CPAU water system losses (unaccountedfor losses) will be less than the BMP (Best Management Practice) guideline of the California Urban Water Conservation Council (CUWCC) of under 10%. 2. Bank Drafting- Increase the participating customers to greater then 25% of total 3. My Utilities Account- increasing the participating customers to greater than 10% of total
4.50%
7%
<10%
>25%
>25%
>15%
N/A
N/A
>10%
7.9
8.2
8.2
81%
=>83%
83%
100%
100%
100%
100%
100%
100%
0.047%
0.068%
0.068%
=<5 %
=<5 %
=<5 %
95%
95%
95%
Effe c t iveness: 1. The customer satisfaction rating from an outside rating agency, measured against other California utilities will be equal to or greater than the state average. The scale is from one to ten with ten being the highest. (SP-C1.1) 2. Citizen survey- percent rating water utility good or excellent (SEA) 3. The percent of water main breaks responded to within one hour will be 95 percent or greater. (revised due to data availability) 4. Compliance with all required California Department of Health Services and EPA testing for water quality will be 100 percent. This indicates that the Water System Operators (Class 5) have a perfect record. (SEA) 5. Uncollectable Revenue (Write-Off ) will be less than 0.068 percent of Fund Net Revenue. (new) 6. Reduce days lost due to workplace injury to 5 or less 7. Number of Key/Major/Institutional customers contacted each quarter will be equal to 95%.
RESERVES ($000) Emergency Plant Replacement Rate Stabilization Bond Proceeds (Restricted) Debt Service Reserve
TOTAL RESERVES
210
City of Palo Alto
FY 2011 Projected Beginning Balance
FY 2011 Projected Ending Balance
FY 2011 Changes
FY 2011 Reserve Guideline Range
1,000
0
1,000
1,000 (min.)
15,765
(1,810)
13,955
4,300 -8,600
4,300
(3,500)
800
780 $21,845
780 $(5,310)
$16,535
Operating Budget FY 2011
Water Fund
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
R E VE N UE C H A N G E S ( $ 0 00 ) Decrease net sales Decrease interest income Increase other income (Note 2) Increase federal reimbursements (Note 3)
TOTAL REVENUE CHANGES
(115) (215) 10 609 $289
Adjustments (Note 1)
NET REVENUE CHANGES
$289
(115) (215) 10 609 $0
$289
(35,259)
(35,259)
$(35,259)
$(34,970)
E X P E N D I T U R E C H A N G E S ( $ 00 0 ) Salary and Benefits Salary Adjustments (Note 4) Personnel Benefits Costs Decrease (Note 5) Total Salary and Benefits Changes
(48) (229) $(277)
Adjustments (Note 1) Net Salary and Benefits Changes
$(277)
(48) (229) $0
$(277)
(110)
(110)
$(110)
$(387)
Non-Salary Increase water commodity Increase in program and project consultants for water conservation programs Increase other contract services for backflow program Increase general expense for remodeling of meter shop Increase debt service Increase operating transfer to Technology Fund (Note 6) Increase operating transfer to Capital Projects Fund Decrease operating transfer to Gas Fund Increase operating transfer to Electric Fund (Note 7) Decrease operating transfer to General Fund (Note 8) Decrease capital improvement program (Note 9) Allocated Charges Increase (Note 10)
1,689
1,689
50
50
80
80 25 2,206 147 3 (16) 130 (105) (19,050) 346
25 2,206 147 3 (16) 130 (105) (19,050) 346
Total Non-Salary Changes
$(14,520)
$25
$(14,495)
TOTAL EXPENDITURE CHANGES
$(14,797)
$(85)
$(14,882)
(112)
(112)
$(197)
$(14,994)
Adjustments (Note 1)
NET EXPENDITURE CHANGES
Operating Budget FY 2011
$(14,797)
City of Palo Alto
211
Water Fund RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Increase in other income is due to a decrease in revenue from connection charges. Note 3: Increase in federal reimbursements is for partial subsidy of interest payments on water bonds. Note 4: Salary adjustments are primarily due to a net decrease of 0.84 FTEs which includes various reallocations to/from other funds and the additions of 0.33 FTE Senior Business Analyst, 0.25 FTE Compliance Manager, 0.25 FTE Customer Service Representative, 0.25 FTE Customer Service Specialist, and 0.30 FTE Installer Repairer. Note 5: Personnel benefit costs have decreased mainly due to a net decrease of 0.84 FTEs and a change in methodology of estimating benefit costs. Note 6: Changes in transfers to Technology Fund are due primarily to the costs of the SAP upgrade/Utilities billing system. Note 7: Increase in transfers to Electric Fund reflects reimbursements for CIP EL-10008 Advanced Metering Infrastructure and CIP EL-11014 Smart Grid Technology. Note 8: Decrease in transfers to General Fund in Fiscal Year 2011 reflects end of payments to the General Fund for retiree medical catch-up plan. Note 9: Capital Improvement Program expenditures include project costs for emergency water supply, water main replacements, and other distribution system improvements. Decrease is mainly due to a large amount of the emergency water supply project in the prior year. Note 10: Increase in allocated charges is due primarily to increases in utilities administration charges.
SERVICE LEVEL CHANGES In Fiscal Year 2010, a new construction program was added for both residential and business customers. The incentive program is in coordination with the City's Green Building Ordinance. In development are a variety of new ordinances and programs to increase water conservation in the City of Palo Alto and achieve a 20% reduction in per capita water usage by 2020. Included in this list of new ordinances and programs are an update landscape efficiency water ordinance, an indoor water ordinance, and a gray water ordinance. Also in development are enhanced programs for high efficiency toilet and washing machine rebates. The education program continues to be positively received, with new classes on landscape design and water conservation offered each year.
212
City of Palo Alto
Operating Budget FY 2011
Refuse Fund
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214
City of Palo Alto
Operating Budget FY 2011
Refuse Fund Refuse Fund To manage the solid, hazardous waste, and street sweeping programs to minimize waste generation and maximize recycling to not only comply with all regulatory requirements but also to far exceed them in pursuit of the Zero Waste goals. OVERVIEW On July 1, 2009, the new waste and recycling collection agreement with Green Waste of Palo Alto began. The transition has been smooth with only minor issues needing attention. Also, in 2010, the Household Hazardous Waste (HHW) Program staff implemented an appointment-based program one day per month for those residents who could not utilize the monthly Saturday drop-off event. In Spring 2010 staff proposed the development of a permanent HHW drop-off facility to allow more convenient drop-off dates and times and the compost blue ribbon task force completed its assignment to review compost options which was presented to Council in spring 2010.
C I T Y
O F
P A L O
A L T O
In Fiscal Year 2011, implementation of the Zero Waste Operational Plan, in conjunction with services provided by GreenWaste of Palo Alto, will continue to be a priority. One primary focus will be the phased-in implementation of required recycling and composting services in order to continue expanding the collection of organic materials from commercial customers and recyclable materials from all customers. Staff is currently conducting public meetings with both residents and businesses to outline the changes and to gather input. Some early success in participation of the expanded services is being realized, and the implementation of additional tools should help lead the City to its Zero Waste goal in 2021. An ongoing concern is the impact of the economic downturn on the health of the Refuse Fund. Revenues for Fiscal Year 2010 were down over 18 percent from projections, largely due to the lack of commercial and development activity in the City. Additionally, as the City moves towards its Zero Waste goal, a realignment of rates to address ongoing costs of supplying services and stabilizing the rate fund is underway. The Public Works Department will also continue to prepare for the closure of the landfill scheduled for FY 2012. Due to new stricter regulations, the overall closure cost projections increased from the previous estimates. Due to accounting rules which require the recording of a liability for the estimated landfill closure and postclosure care costs, in Fiscal Year 2011, the rate stabilization reserve is expected to have a negative ending balance below minimum guidelines. In Fiscal Year 2010, there is a current operating deficit within the fund. A rate increase was proposed to the Finance Committee. However, the Finance Committee decided not to recommend an increase in rates at this time. The current operating deficit is projected to continue into FY 2011.
PROGRAM UPDATE The focus of the Zero Waste Operational Plan (ZWOP) will be the phased-in implementation of required recycling and composting services. This will be done in order to continue expanding the collection of organic materials from commercial customers and recyclable materials from all customers. Staff continues preparation for the 2012 closing of the landfill. High frequency of street sweeping continues for residential and commercial areas.
COUNCIL PRIORITY IMPLEMENTATION Environmental Sustainability
â&#x20AC;˘
Continue implementation of projects for the Zero Waste Operational Plan including requiring recycling and composting services in residential and commercial sectors.
Operating Budget FY 2011
City of Palo Alto
215
Refuse Fund •
Minimize hazardous waste in the City through collection of City-generated and household hazardous waste
•
Minimize solid waste through waste reduction and recycling programs.
FUND SUMMARY FY 2009 Actuals
Net Sales Interest Income Other Income TOTAL FUND REVENUES Administration Solid Waste Systems Improvement(CIP) Operations Collection, Hauling and Disposal Payment to GreenWaste Operations Street Sweeping Debt Service Rent Operating Transfers Out TOTAL FUND EXPENDITURES TO/FROM RESERVES
216
City of Palo Alto
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
24,835,922 32,414,927 32,414,927 32,414,927 26,136,936 740,730 487,300 487,300 487,300 300,600 4,180,896 4,556,162 3,458,288 4,445,747 4,180,896 $30,022,399 $37,083,123 $37,083,123 $37,458,389 $29,895,824 1,519,856 1,745,183 1,746,645 1,772,008 1,600,644 740,216 9,143,198
0 7,647,381
0 7,700,366
7,650,000 7,796,689
1,650,000 6,746,348
FY 2011 Budget Change
(6,277,991) (186,700) (722,608) $(7,187,299) (146,001)
% Chg
(19%) (38%) (17%) (19%) (8%)
1,650,000 (954,018) (12%)
(249,838) (2%) 9,504,151 15,047,016 15,047,016 14,797,178 14,797,178 6,365,993 4,824,144 4,827,434 4,824,309 4,803,472 (23,962) 0% 2,025,988 2,003,454 2,057,396 31,408 2% 2,080,361 2,002,263 603,874 606,897 606,897 606,897 607,897 1,000 0% 4,288,747 4,288,747 4,288,747 4,288,747 4,288,747 0 0% 353,517 313,148 337,872 (15,645) (4%) 1,291,111 333,205 $35,537,507 $36,494,836 $36,596,610 $44,052,430 $36,889,554 $292,944 1% $486,513 $(6,594,041) $(6,993,730) $(7,480,243) $(5,515,108) $588,287
Operating Budget FY 2011
Refuse Fund
INPUTS FY 2009 Actuals Utility Purchases and Charges Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges Debt Service Capital Improvement Program Operating Transfers Out
TOTAL EXPENDITURES
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
9,504,151 4,068,893 10,481,938 355,224 2,500 239,814 4,296,075 3,953,711 603,874 740,216 1,291,111
15,047,016 4,585,749 6,931,044 459,596 19,300 384,995 4,310,447 3,816,587 606,897 0 333,205
15,047,016 4,676,411 6,901,844 479,596 19,300 384,995 4,310,447 3,816,587 606,897 0 353,517
14,797,178 4,593,254 6,931,044 459,596 19,300 384,995 4,310,447 3,986,571 606,897 7,650,000 313,148
14,797,178 4,365,441 6,547,299 310,846 15,900 275,595 4,307,747 3,673,779 607,897 1,650,000 337,872
$35,537,507
$36,494,836
$36,596,610
$44,052,430
$36,889,554
34.88 0.43
36.47 1.11
36.47 1.59
36.47 1.11
36.71 0.68
Total Full Time Positions Total Temporary Positions
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. SOLID WASTE: Number of households serviced through Household Hazardous Waste Program 2. COLLECTION, HAULING & DISPOSAL: Number of complaints regarding PASCO service 3. COLLECTION, HAULING & DISPOSAL: Tons of waste processed through SMaRT 4. STREET SWEEPING: Number of residential and commercial curb miles swept (SEA)
4,817
3,500
3,500
233
0
0
44,811
50,000
50,000
17,149
17,319
17,533
18%
17%
13%
233
all
all
8%
20%
25%
92%
92%
92%
Efficienc y : 1. SOLID WASTE: Percent of households serviced through Household Hazardous Waste Program (26,048 from 2000 census) 2. COLLECTION, HAULING & DISPOSAL: Number of complaints resolved within 24 hours 3. COLLECTION, HAULING & DISPOSAL: Percent of total waste processed through SMaRT Station that was recycled. 4. STREET SWEEPING: Percent of residential and business curb miles swept (SEA)
Operating Budget FY 2011
City of Palo Alto
217
Refuse Fund B ENCHMARKING MEASURES
FY 2010 Adjusted Budget
FY 2009 Actuals
FY 2011 Proposed Budget
Effe c t iveness: 1. SOLID WASTE: Tons of HHW diverted from illegal dumping through HHW collection events 2. COLLECTION, HAULING & DISPOSAL: Tons of recyclables diverted from landfill 3. STREET SWEEPING: Cubic yards of commercial and residential debris removed from streets (NEW-SEA) 4. COLLECTION, HAULING & DISPOSAL: Percentage of residents rating waste hauler's service as excellent
RESERVES ($000)
FY 2011 Projected Beginning Balance
243
125
150
9,080
9,000
9,000
14,420
12,213
13,000
90%
100%
100%
FY 2011 Projected Ending Balance
FY 2011 Changes
Rate Stabilization Reserve
(3,561)
(6,519)
(10,080)
Landfill Closure and Postclosure Care Liability
11,289
(475)
10,814
Landfill Corrective Action Reserve
TOTAL RESERVES AND FULLY-FUNDED LIABILITY
650 $8,378
RESOURCE LEVEL CHANGES
FY 2011 Reserve Guideline Range 2,614 - 5,228
650 $(6,994)
$1,384
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VENUE CHANG E S ( 0 0 0) Increase net sales (Note 2) Increase interest income Increase special revenue from GreenWaste (Note 3) Decrease in disposal fee revenue (Note 4) Decrease in revenue from plan checking fees Increase (decrease) in operating transfer from Wastewater Collection Fund (Note 5)
TOTAL REVENUE CHANGES
(6,278) (187) (544) (500) (53)
(6,278) (187) (544) (500) (53)
375
375
$(7,187)
$0
Adjustments (Note 1)
NET REVENUE CHANGES
$(7,187) 0
$(7,187)
$0
$(7,187)
EXPENDITURE CHANGES (000) Salary and Benefits Increase in Temporary Salaries
218
City of Palo Alto
(61)
(61)
Operating Budget FY 2011
Refuse Fund RESOURCE LEVEL CHANGES Personnel Benefit Costs Decrease (Note 6) Total Salary and Benefits Changes
FY 2011 Ongoing
FY 2011 One-Time
(160)
(160)
$(221)
Adjustments (Note 1) NET SALARY AND BENEFITS CHANGES
FY 2011 Total
$(221)
$0
$(221)
(90)
(90)
$(90)
$(311)
Non-Salary Increase in landfill closure/postclosure accrual Decrease contract services Decrease supplies and materials Decrease boards and commissions expense Decrease bankcard service charge Decrease rent- tools and equipment Increase joint agency debt service- Palo Alto share of costs for upgrade at SMaRT Station Decrease GreenWaste contract - waste hauling agreement Increase (decrease) operating transfer to Technology Fund (Note 7) Decrease operating transfer to General Fund (Note 8) Increase (decrease) capital improvement program (Note 9) Allocated Charges Increase (decrease) (Note 10)
(311) (43) (169) (104) (18) (2)
(311) (43) (169) (104) (18) (2)
1
1
(250) 89 (105) 1,650 (143)
(250) 89 (105) 1,650 (143)
Total Non-Salary Changes
$595
$0
$595
TOTAL EXPENDITURE CHANGES
$374
$(90)
$374
9
9
$(81)
$293
Adjustments (Note 1)
NET EXPENDITURE CHANGES
$374
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Decrease in net sales reflects efforts to align budget amount closer to expected actual amount. Note 3: Under the hauling agreement with GreenWaste, the City receives all revenue that GreenWaste bills for drop boxes and bin rentals. Note 4: Decrease in revenue from disposal fee is due to the fewer loads at the City landfill. Note 5: Change in operating transfers from the Wastewater Collection Fund for reimbursement for CIP RF10003 Drying Beds, Material Storage and Transfer Area. Note 6: Personnel benefit costs have decreased mainly due to a change in methodology of estimating benefit costs.
Operating Budget FY 2011
City of Palo Alto
219
Refuse Fund Note 7: Changes in transfers to Technology Fund are due primarily to the costs of the SAP upgrade/Utilities billing system. Note 8: Decrease in transfers to General Fund in Fiscal Year 2011 reflects end of payments to the General Fund for retiree medical catch-up plan. Note 9: Projected CIP expenditures for the Refuse Fund are $1.65 million in Fiscal Year 2011 (including $600,000 for CIP RF-11001 Landfill Closure to be funded by cash that has been accumulated to cover the landfill closure liability). Note 10: Decrease in allocated charges is due primarily to a decrease in vehicle replacement charges.
220
City of Palo Alto
Operating Budget FY 2011
Storm Drainage Fund
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222
City of Palo Alto
Operating Budget FY 2011
Storm Drainage Fund Storm Drainage Fund To operate, maintain, replace, and augment the storm drainage system to ensure adequate local drainage and storm water quality protection for discharge to creeks and the San Francisco Bay. OVERVIEW Work in FY2010 focused on the construction of the Alma Street Storm Drain Improvements and the initial phase of the Channing Avenue/Lincoln Avenue Storm Drain Improvements.
C I T Y
O F
P A L O
A L T O
In Fiscal Year 2011, staff will continue to implement the enhanced storm drain program, which includes storm drain maintenance, urban runoff pollution prevention, and storm drain system capital improvements. These activities are funded by the storm drainage fee increase approved by property owners in April 2005. In addition, engineering staff will focus on the second construction phase of the Channing Avenue/Lincoln Avenue Storm Drain Improvements, which will be coordinated with the annual pavement resurfacing program and the continuing implementation of City-wide storm drain system repairs. These improvements will convey storm water runoff more efficiently to the San Francisquito Creek Storm Water Pump Station, completed in 2009, resulting in improved drainage system performance in northeastern Palo Alto. In order to reduce storm water runoff, staff will also continue to conduct a rebate program for residents and businesses that install rain barrels, cisterns, green roofs, and pervious pavement. Staff will continue to meet with the Council-appointed Storm Drain Oversight Committee each year to review proposed operating and capital budgets and to verify that fund expenditures are consistent with the approved ballot measure. The Committee has noted that the fund will likely experience capital project funding shortfalls in the upcoming years. The shortfalls are a result of the discrepancy between increased construction costs and the modest storm drainage fee increases allowed by the ballot measure (based on annual increases in the local Consumer Price Index (CPI) or 6 percent, whichever is less). A 2.6% fee increase is proposed for Fiscal Year 2011, based on the increase in the local Consumer Price Index. Although construction costs have recently stabilized, past cost increases have raised project costs substantially above original estimates, and it is unlikely that there will be sufficient funds to complete the original 12-year capital improvement program outlined in the ballot measure. Staff and the Committee have developed strategies to maximize the use of available funds, including focusing on completion of the highest priority projects and incrementally reducing the scope of some projects in order to free up funds for other projects. Staff will continue to monitor project costs and look for opportunities to utilize grants and other outside funding sources to pay for the proposed drainage improvements. Staff will continue to coordinate with the Santa Clara Valley Water District (SCVWD) and the Federal Emergency Management Agency on flood control and flood insurance issues. Staff will also assist with review of land development applications to ensure compliance with storm water quality and stream protection regulations. Staff will work with its partner agencies in the Santa Clara Valley Urban Runoff Pollution Prevention program to implement the Bay Area-wide National Pollutant Discharge Elimination System (NPDES) permit from the Regional Water Quality Control Board for discharge of storm water to local creeks and the San Francisco Bay. The permit requires more rigorous and costly activities by municipal staff, including implementation of updated best management practices, inspection and enforcement at construction sites and commercial facilities, public outreach, installation of trash controls, and water quality monitoring to protect storm water quality. In addition, staff will actively participate in the San Francisquito Creek Joint Powers Authority's partnership with the US Army Corps of Engineers to identify a comprehensive solution to creek and tidal flooding problems in the watershed. Operations staff will continue to conduct an enhanced level of storm drain maintenance which has been made possible by the storm drainage fee increase.
Operating Budget FY 2011
City of Palo Alto
223
Storm Drainage Fund COUNCIL PRIORITY IMPLEMENTATION Environmental Sustainability
â&#x20AC;˘
Staff will work with its partner agencies in the Santa Clara Valley Urban Runoff Pollution Prevention program to implement a the National Pollutant Discharge Elimination System (NPDES) permit from the Regional Water Quality Control Board for discharge of storm water to local creeks and the San Francisco Bay
â&#x20AC;˘
Staff will continue to conduct a rebate program for residents and businesses that install rain barrels, cisterns, green roofs, and pervious pavement in order to reduce storm water runoff and water pollution
Emergency Preparedness
Staff will continue to maintain the online Creek Monitor, coordinate with the Santa Clara Valley Water District to provide sand bags to the public, and work with the Fire Department, Police Department, and the San Francisquito Creek Joint Powers Authority (JPA) and its member agencies to coordinate emergency preparedness efforts related to flood emergencies.
FUND SUMMARY FY 2009 Actuals
Net Sales Interest Income Other Income TOTAL FUND REVENUES Administration Systems Improvements Systems Improvement(CIP) Operations Operations & Maintenance Debt Service Operating Transfers Out TOTAL FUND EXPENDITURES TO/FROM RESERVES
224
City of Palo Alto
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
FY 2011 Budget Change
% Chg
5,463,867 317,942 42,456 $5,824,265 (321,383)
5,366,376 216,750 67,500 $5,650,626 579,215
5,366,376 216,750 67,500 $5,650,626 579,078
5,366,376 216,750 67,500 $5,650,626 590,175
5,506,376 158,950 67,500 $5,732,826 530,086
140,000 3% (57,800) (27%) 0 0% $82,200 1% (48,992) (8%)
5,635,942 125,755 1,363,962 564,399 163,403 $7,532,078 $(1,707,813)
1,699,750 116,549 1,595,681 948,930 683,411 $5,623,536 $27,090
1,699,147 116,325 1,594,280 948,930 688,228 $5,625,988 $24,638
1,792,080 123,606 1,601,850 950,345 603,113 $5,661,169 $(10,543)
1,788,318 115,309 1,617,686 950,345 608,791 $5,610,535 $122,291
89,171 5% (1,016) (1%) 23,406 1% 1,415 0% (79,437) (12%) $(15,453) 0% $97,653
Operating Budget FY 2011
Storm Drainage Fund
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges Debt Service Capital Improvement Program Operating Transfers Out
TOTAL EXPENDITURES Total Full Time Positions Total Temporary Positions
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
1,059,480 (524,579) 59,967 3,905 16,622 0 552,939 564,399 5,635,942 163,403
1,033,676 373,879 99,300 11,621 147,900 6,000 619,069 948,930 1,699,750 683,411
1,031,914 373,879 99,300 11,621 147,900 6,000 619,069 948,930 1,699,147 688,228
1,041,577 373,879 99,300 11,621 151,900 6,000 631,354 950,345 1,792,080 603,113
1,000,492 379,379 99,300 11,621 151,400 6,000 614,889 950,345 1,788,318 608,791
$7,532,078
$5,623,536
$5,625,988
$5,661,169
$5,610,535
9.52 0.00
9.54 0.00
9.54 0.00
9.54 0.00
9.54 0.00
BENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Number of industrial storm water inspections conducted 2. Linear feet of storm drain pipelines cleaned annually 3. Total dollar value of storm drain improvements completed- (capital expenditures)
358 107,223
250 100,000
250 100,000
$5,780,603
$2,000,000
$1,040,172
358 65,580 $2,752,603
250 80,000 $950,000
250 75,000 $950,000
92% 44
70% 100
70% 100
100%
100%
100%
Efficienc y : 1. Number of industrial storm water inspections per FTE 2. Pounds of debris removed by hydroflushing pipelines 3. Total dollar value of storm drain improvements per FTE
Effe c t iveness: 1. Percent of industrial sites in compliance with storm water regulations 2. Number of resident calls regarding ponding problems 3. Percent of storm drain improvement projects completed within planned budget
Operating Budget FY 2011
City of Palo Alto
225
Storm Drainage Fund
RESERVES ($000) Distribution RSR
TOTAL RESERVES
FY 2011 Projected Beginning Balance
FY 2011 Changes
FY 2011 Projected Ending Balance
FY 2011 Reserve Guideline Range
300
122
422
$300
$122
$422
FY 2011 Ongoing
FY 2011 One-Time
RESOURCE LEVEL CHANGES
N/A
FY 2011 Total
R E VE N U E C H A N G E S ( $ 0 00 ) Increase net sales (Note 3) Decrease interest income
TOTAL REVENUE CHANGES
140 (58) $82
140 (58) $0
Adjustments (Note 1)
NET REVENUE CHANGES
$82 0
$82
$0
$82
E X P E N D I T U R E C H A N G E S ( $ 00 0 ) Salary and Benefits Personnel Benefit Costs Decrease (Note 2) Total Salary and Benefits Changes
(33) $(33)
Adjustments (Note 1) NET SALARY AND BENEFITS CHANGES
$(33)
(33) $0
$(33)
2
2
$2
$(31)
Non-Salary Increase debt service expense Increase in storm water rebates Increase other contract services for Palo Alto's share of the cost of the county-wide Urban Runoff Program Decrease operating transfer to General Fund (Note 4) Increase operating transfer to Technology Fund (Note 5) Increase in capital improvement program (Note 6) Allocated Charges Decrease Total Non-Salary Changes
TOTAL EXPENDITURE CHANGES Adjustments (Note 1)
NET EXPENDITURE CHANGES
226
City of Palo Alto
1 4
1 4
5
5
(99) 25 89 (4)
(99) 25 89 (4)
$21
$0
$21
$(12)
$2
$(10)
0
(5)
(5)
$(12)
$(3)
$(15)
Operating Budget FY 2011
Storm Drainage Fund RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Personnel benefit costs have decreased mainly due to a change in methodology of estimating benefit costs. Note 3: Increase in net sales is due to a rate increase of 2.6% based on the change in local CPI index as allowed by the approved ballot measure. Note 4: Decrease in Fiscal Year 2011 reflects end of payments to the General Fund for retiree medical catch-up plan. Note 5: Changes in transfers to Technology Fund are due primarily to the costs of the SAP upgrade/Utilities billing system. Note 6: Projected CIP expenditures for the Storm Drainage Fund are $1.5 million in Fiscal Year 2011. Amounts exclude salaries and benefits.
Operating Budget FY 2011
City of Palo Alto
227
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228
City of Palo Alto
Operating Budget FY 2011
Wastewater Treatment Fund
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230
City of Palo Alto
Operating Budget FY 2011
Wastewater Treatment Fund Wastewater Treatment Fund To operate, maintain, and monitor the Regional Water Quality Control Plant (RWQCP) 24 hours a day, every day; to treat all wastewater from the five partner cities’ regional service area (Mountain View, Los Altos, Los Altos Hills, Stanford, and East Palo Alto Sanitary District), and to ensure the maximum feasible compliance with regulations protecting the San Francisco Bay and the environment. OVERVIEW In Fiscal Year 2010, the Regional Water Quality Control Plant (RWQCP) began construction of the ultraviolet disinfection system. The project is expected to be complete in Fiscal Year 2011 with final closeout in December 2010. The UV system will lower operating costs, more safely disinfect final treated water, and will reduce the plant’s carbon footprint. Additional projects in Fiscal Year 2010 included the commencement of the long-range master planning process, facility repair improvements to replace aging structures, and miscellaneous emergency and critical construction repairs to maintain plant operations. During Fiscal Year 2011, the plant will be working on the master plan and starting up the new Ultraviolet Disinfection system.
P A L O
A L T O
In Fiscal Year 2010, unwanted medicine collection by the RWQCP continued to increase as new partners were added to the program to protect San Francisco Bay from contamination. Grease related sewage blockages and overflows decreased as restaurant inspections resulted in grease collection system upgrades. Mercury discharges to the RWQCP continue to be at reduced levels due to successful installation of control devices at dental offices. New measures to reduce greenhouse gases at the RWQCP were implemented and the Fiscal Year 2009 carbon dioxide reduction goals (5% reduction) were met by a substantial margin. In Fiscal Year 2011, new commercial facility requirements for zinc, molybdenum, and cyanide will be adopted as part of a comprehensive update of the City’s Sewer Use Ordinance. Actions to reduce salt discharges to the sewer system will be conducted and new actions planned in order to reduce the salinity of the treated wastewater, which is increasingly being used for landscape irrigation. In Fiscal Year 2011, the rate stabilization reserve is expected to have a negative ending balance of $12.7 million due to timing differences. Commitments for both the reclaimed water pipeline project and the ultraviolet disinfection system temporarily have the effect of drawing down the reserve. Reimbursements from grants, state loans, and partners will offset the negative balance as they are received and recognized.
COUNCIL PRIORITY IMPLEMENTATION City Finances
•
Staff will continue to pursue grant options to help finance projects and to identify opportunities to minimize costs.
O F
Emergency Preparedness
•
Staff will continue to review emergency response plans, train staff on response actions, and maintain equipment in a state of operational readiness.
C I T Y
Environmental Sustainability
•
The RWQCP and Environmental Compliance Division are continually implementing programs to protect the climate and further reduce pollutant releases.
•
The Disinfection Facility Improvement Program project will replace the use of chlorine for disinfection of plant effluent.
•
Staff will continue process optimizations to conserve electricity and natural gas including enhanced
Operating Budget FY 2011
City of Palo Alto
231
Wastewater Treatment Fund use of landfill gas. Community Collaboration for Youth Health and Well Being
â&#x20AC;˘
Staff will continue to involve youth through volunteer opportunities, classroom visits, and tours of the RWQCP.
FUND SUMMARY FY 2009 Actuals
Net Sales Interest Income Other Income TOTAL FUND REVENUES Administration Operations Systems Improvement(CIP) Operations Environmental Compliance Debt Service Operating Transfers Out TOTAL FUND EXPENDITURES TO/FROM RESERVES
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
25,084,179 21,484,503 21,484,503 22,558,727 20,095,232 664,365 422,900 422,900 422,900 422,100 80,000 84,000 72,500 3,371,328 80,000 $29,119,872 $21,987,403 $21,987,403 $23,065,627 $20,589,832 16,215,877 2,296,850 2,297,670 2,334,245 2,352,522
FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Allocated Charges Debt Service Capital Improvement Program Operating Transfers Out Total Full Time Positions Total Temporary Positions
232
City of Palo Alto
% Chg
(1,389,271) (6%) (800) 0% (7,500) (9%) $(1,397,571) (6%) 54,852 2%
1,700,547 2,550,000 2,500,000 799,453 47% 9,203,439 1,700,000 10,617,742 12,555,062 12,624,750 13,034,876 12,739,332 114,582 1% 2,956,026 2,939,297 2,917,543 (38,483) (1%) 2,616,389 2,937,508 444,770 816,170 816,170 814,992 814,992 (1,178) 0% 181,588 152,679 152,679 18,269 8,761 (143,918) (94%) $785,308 4% $39,279,805 $20,458,269 $20,547,842 $21,691,679 $21,333,150 $(10,159,933) $1,529,134 $1,439,561 $1,373,948 $(743,318) $(2,182,879)
INPUTS
TOTAL EXPENDITURES
FY 2011 Budget Change
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
8,097,324 121,529 1,364,864 5,953 15,420,164 4,440,174 444,770 9,203,439 181,588
9,363,112 1,978,608 1,754,788 10,000 250,990 4,431,922 816,170 1,700,000 152,679
9,475,738 1,955,008 1,754,788 10,000 250,990 4,431,922 816,170 1,700,547 152,679
9,373,820 2,028,988 1,836,728 10,000 260,840 4,798,042 814,992 2,550,000 18,269
9,212,822 1,883,988 1,838,228 10,000 404,340 4,660,019 814,992 2,500,000 8,761
$39,279,805
$20,458,269
$20,547,842
$21,691,679
$21,333,150
68.02 1.50
68.62 0.99
68.62 2.47
68.62 0.99
68.66 1.69
Operating Budget FY 2011
Wastewater Treatment Fund
BENCHMARKING MEASURES
FY 2010 Adjusted Budget
FY 2009 Actuals
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. 2. 3. 4. 5. 6.
OPERATIONS: Millions of gallons treated OPERATIONS: Tons of solids incinerated OPERATIONS: Number of samples analyzed ENVIRONMENTAL COMPLIANCE: Number of industries regulated ENVIRONMENTAL COMPLIANCE: Number of permits issued ENVIRONMENTAL COMPLIANCE: Number of industrial discharge tests
7,958 6,564 8,300 92 46 7,046
7,958 6,564 8,300 90 50 6,500
7,958 6,564 8,300 90 50 6,500
$1,404
$1,322
$1,195
$271
$299
$307
2.55
2.55
2.55
15.3
15.7
15.7
7.7
8.33
8.33
1,174
1,083
1,083
100% 100% 97
99% 99% 300
99% 99% 600
100%
95%
95%
98.8%
98%
98%
98%
98%
98%
Efficienc y : 1. OPERATIONS: Treatment cost in $/MG treated (total O&M cost;exclude CIP) 2. OPERATIONS: Solids disposal $/ton 3. OPERATIONS: Number of employees per millions of gallons per day treated 4. ENVIRONMENTAL COMPLIANCE: Number of businesses regulated per FTE (#/6 FTE) 5. ENVIRONMENTAL COMPLIANCE: Number of permits issued per FTE (#/ 6 FTE) 6. ENVIRONMENTAL COMPLIANCE: Number of industrial discharge tests per FTE (#/6 FTE)
Effe c t iveness: 1. 2. 3. 4.
OPERATIONS: Fish toxicity (Percent survival) OPERATIONS: Compliance with discharge permit (percent compliance) OPERATIONS: Reclaimed water delivered (million gallons per year) ENVIRONMENTAL COMPLIANCE: Percent of dental offices in compliance 5. ENVIRONMENTAL COMPLIANCE: Percent of commercial businesses in compliance 6. ENVIRONMENTAL COMPLIANCE: Percent of discharge tests in compliance
RESERVES ($000) Emergency Plant Replacement Distribution RSR Bond Proceeds (Restricted)
TOTAL RESERVES
Operating Budget FY 2011
FY 2011 Projected Beginning Balance
FY 2011 Changes
FY 2011 Projected Ending Balance
FY 2011 Reserve Guideline Range
2,160
(413)
1,747
1,747 (max.)
(14,163)
(330)
(14,493)
2,990 - 5,980
0 $(12,003)
0 $(743)
$(12,746)
City of Palo Alto
233
Wastewater Treatment Fund
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
R E VE N U E C H A N G E S ( $ 0 00 ) Decrease net sales (Note 3) Decrease interest income Decrease in revenue from WQCP saltwater marsh services
NET REVENUE CHANGES
(1,389) (1) (8) $(1,398)
(1,389) (1) (8) $0
$(1,398)
Adjustments (Note 1)
TOTAL REVENUE CHANGES
0 $(1,398)
$0
$(1,398)
E X P E N D I T U R E C H A N G E S ( $ 00 0 ) Salary and Benefits Personnel Benefit Costs Decrease (Note 2) Total Salary and Benefit Changes
(150) $(150)
Adjustments (Note 1) NET SALARY AND BENEFITS CHANGES
$(150)
(150) $0
$(150)
(113)
(113)
$(113)
$(263)
Non-Salary Decrease debt service expense Increase in capital improvement program (Note 4) Increase in plant operations cost (Note 5) Decrease operating transfer to Technology Fund (Note 6) Decrease operating transfer to General Fund (Note 7) Allocated Charges Increase (Note 8) Total Non-Salary Changes
TOTAL EXPENDITURE CHANGES
(1) 800 155 (10) (134) 214 $1,024
$0
$1,024
$874
$(113)
$761
24
24
$(89)
$785
Adjustments (Note 1)
TOTAL EXPENDITURE CHANGES
(1) 800 155 (10) (134) 214
$874
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Personnel benefit costs have decreased mainly due to a change in methodology of estimating benefit costs. Note 3: Decrease in net sales reflects efforts to align budget amount closer to expected actual amount. Note 4: Projected CIP expenditures for the Wastewater Treatment Fund are $2.5 million in Fiscal Year 2011.
234
City of Palo Alto
Operating Budget FY 2011
Wastewater Treatment Fund Note 5: Increase in plant operations cost includes increases for chemical supplies, and spare parts and assemblies. Note 6: Changes in transfers to Technology Fund are due primarily to the costs of the SAP upgrade/Utilities billing system. Note 7: Decrease in operating transfer to General Fund in Fiscal Year 2011 reflects end of payments for retiree medical catch-up plan. Note 8: Allocated charges are increasing primarily due to increases in information technology, telecommunications, liability insurance, and public works administration charges.
Operating Budget FY 2011
City of Palo Alto
235
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236
City of Palo Alto
Operating Budget FY 2011
OTHER FUNDS
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238
City of Palo Alto
Operating Budget FY 2011
Special Revenue Funds
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240
City of Palo Alto
Operating Budget FY 2011
Special Revenue Overview Special Revenue Overview Special Revenue Funds comprise revenues that have either restrictions on their use or special reporting requirements, such as development impact fees for parks, community centers, and libraries; gas tax revenues from the State; housing mitigation fees assessed on commercial and industrial projects; in-lieu fees for the City's Below Market Rate (BMR) housing program; transportation mitigation fees paid by developers; and parking in-lieu fees from commercial projects in the downtown area. Also included are parking permit revenues and Community Development Block Grants (CDBG) from the federal government.
Community Development Funds Revenue in this fund comes from development impact fees for parks, community centers, and libraries. The development impact fees collected from new developments provides funding for the City's infrastructure related to parks, community centers, libraries, and the Charleston-Arastradero Corridor. The projected revenue for the development impact fees is $0.8 million for Fiscal Year 2011.
Street Improvement Funds (SIF) Revenue in this fund comes from the state gas tax and from federal and state grants earmarked for street improvements. The SIF provides funds for transportation and traffic-related capital projects. Based on projected gas tax revenues and interest income, revenues are estimated to be $1.16 million for Fiscal Year 2011.
C I T Y
O F
P A L O
A L T O
Federal and State Revenue Funds The Federal and State Revenue Fund consists primarily of CDBG monies. CDBG funds are used for a wide variety of community projects such as affordable housing, public services, and project expenditures. CDBG project expenditures draw upon program income and prior year allocations that have been left unspent. For Fiscal Year 2011, Agency requests totaled $1.27 million and Proposed budget totals $1.05 million, a decrease of $0.77 million in Federal Grant funding from the Department of Housing and Urban Development (HUD).
Housing In-lieu Funds In-lieu housing revenues come from fees required of commercial, industrial, and residential developers. These fees are used to provide housing for the City's Subsidized Housing Program. Any new projects are brought to the Council for specific appropriation. Other revenue includes proceeds from the anticipated sale of BMR housing units.
Special Districts Funds Revenue in this fund comes from parking permits and is used for maintenance of parking facilities within the University and California Avenue business districts. Parking permit fees will not change from the Fiscal Year 2010 adjusted budget.
Traffic Mitigation and Parking In-Lieu Funds Traffic mitigation fee revenue is derived from fees paid by developers of new, non-residential projects to alleviate resulting additional traffic congestion. Parking in-lieu fees result from commercial projects in assessment district areas which contribute a fee for future parking spaces in lieu of providing the required spaces within the project area itself.
Operating Budget FY 2011
City of Palo Alto
241
Special Revenue Overview Public Benefit Funds Revenue in these funds is a result of a senior housing project on Hamilton Avenue and contributions and mitigation fees paid for Planned Community Zone approvals. The Hamilton Avenue funds will continue to be used by Avenidas (formerly Senior Coordinating Council) to provide services to seniors.
Downtown Business Improvement District (BID) The Downtown Business Improvement District was established by an ordinance adopted in January 2004, to promote the downtown business community through events, marketing, beautification, and advocacy programs. The BID surveyed its member businesses to determine what its priorities should be. The top two priorities identified were street cleanliness and issues related to the homeless in the downtown area. In response to these issues, the Palo Alto Business and Professional Association (which operates the BID under contract with the City) has initiated the Downtown Streets Team, a national model, empowering the homeless to care for the streets and take responsibility for cleanliness of the area. In addition, twice a year there is a marketing effort for restaurants, Dine Downtown, providing a fixed price menu for dining. The Palo Alto Business and Professional Association will continue to operate the Downtown Palo Alto BID for Fiscal Year 2011.
242
City of Palo Alto
Operating Budget FY 2011
FY 2011 Special Revenue by Fund FY 2011 Special Revenue by Fund FUND SUMMARY ($000)
Street Community ImproveDevelop. ment Funds Funds
Federal & State Revenue Funds
Housing In-Lieu Funds
Special Districts Funds
Traffic Mitigation & Parking In-Lieu Funds
Public Benefits Funds
Total Special Revenue Funds
BID Funds
Revenues Gas Tax Federal and State Grants Parking Permit/In-Lieu Fees Development Impact Fees Interest Income Operating Transfers Other Revenue Business Improvement District (BID) Special Assessment Loan Payoff
TOTAL SOURCE OF FUNDS
1,127 663 82 553 168
$803
31
$1,158
5 5 276
7 $956
3,500
1,120
200
137
29
130
140
82 $3,860
25
2
280
$1,149
$610
$25
1,127 663 4,902 553 528 5 696
160
160
$162
89 $8,723
Expenditures CDBG Project Expenditures CDBG Administration Cost Recovery Planning / Public Works Department Transfer for Street Improvement Cost Recovery Community Development Funds CIP Transfer Charleston-Arastradero Funds CIP Transfer Street Improvement Fund CIP Transfer Parking Facilities Debt Service Transfer Parking Garage Maintenance/ Operations Transfer to General Fund Parking Lot Sweeping Transfer to Refuse Fund CDBG Projects Transfer from HIP Revenues Below Market Rate (BMR) Program Management Contract BMR Loan Program Residential Housing In-Lieu Commercial Housing In-Lieu Senior Services Grant BID Operating Expense
TOTAL USE OF FUNDS NET TO (FROM) RESERVES
Operating Budget FY 2011
1,046
1,046
159
159
292
292
220
220
82
82 750
750 80
80
1,090
1,090
179
179 5
5 125
125
350 4,815 1,100
$6,390
$1,349
$0
$28
350 4,815 1,100 28 160 160 $160 $10,482
$(254) $(2,530)
$(200)
$610
$(3)
$2 $(1,758)
28 $302
$1,042
$501
$116
$1,210
City of Palo Alto
243
Consolidated Special Revenue Funds Consolidated Special Revenue Funds FUND SUMMARY FY 2009 Actuals
($000)
FY 2010 Adopted Budget
FY 2011 Adopted-inConcept Budget
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
FY 2011 Budget Change
Revenues Gas Tax Federal and State Grants Federal CDBG Housing In-Lieu Traffic Mitigation Fees Developer Impact Fees Parking Mitigation Fees BID Assessment Interest Income Other Revenue
1,024 1,091 1,494 407 197 437 1,117 96 585 185
1,127 1,000 656 750 282 553 1,120 160 491 975
1,127 1,000 656 750 282 553 1,120 160 491 975
1,127 1,000 656 750 282 553 1,120 160 491 975
1,127 0 663 3,500 282 553 1,120 160 519 794
0 (1,000) 7 2,750 0 0 0 0 28 (180)
SUBTOTAL REVENUES
$6,632
$7,113
$7,113
$7,113
$8,718
$1,605
22
5
5
5
5
0
$22
$5
$5
$5
$5
$0
$6,654
$7,118
$7,118
$7,118
$8,723
$1,605
4,848
4,720
4,720
4,620
7,783
3,063
1,180 22 80 1,657 116
1,336 5 80 899 140
1,336 5 80 899 140
1,362 5 80 1,152 141
1,383 5 80 1,052 179
47 0 0 153 39
SUBTOTAL OPERATING TRANSFERS
$3,055
$2,461
$2,461
$2,739
$2,699
$238
TOTAL USE OF FUNDS
$7,902
$7,180
$7,180
$7,359
$10,482
$3,302
$(1,249)
$(62)
$(62)
$(241)
$(1,758)
$(1,820)
Operating Transfers From: Housing Improvement
SUBTOTAL OPERATING TRANSFERS IN TOTAL SOURCE OF FUNDS
Expenses General Expense
Operating Transfers To: General Fund CDBG Debt Service CIP Refuse
NET TO (FROM) RESERVES
244
City of Palo Alto
Operating Budget FY 2011
Community Development Block Grant Community Development Block Grant FY 2011 FUNDING
FY 2010 Adopted Budget
FY 2011 Agency Requests
FY 2011 Proposed Budget
SOURCE OF FUNDS Housing & Urban Development
656,000
956,512
731,566
959
99,930
99,930
Housing Improvement Program
5,000
5,000
5,000
Palo Alto Housing Corporation
60,000
60,000
60,000
Estimated Sheridan Apartments and Palo Alto Gardens Loan Repayment
80,300
149,550
149,550
$802,259
$1,270,992
$1,046,046
Emergency Housing Consortium - Palo Alto HOMES project
0
7,500
0
Emergency Housing Consortium - Off the Streets project
0
0
0
30,000
50,870
34,211
5,000
5,000
5,000
0
0
0
8,250
20,000
9,700
Clara Mateo Alliance - Single/Couple Shelter
17,500
25,000
19,841
Clara Mateo Alliance - Family Shelter
17,500
25,000
19,841
InnVision - Opportunity Center
30,000
50,000
34,211
$108,250
$183,370
$122,803
113,475
175,359
127,873
30,725
31,440
31,440
$144,200
$206,799
$159,313
Stevenson House - Interior Common Area Renovation
83,200
478,808
478,304
Avenidas-Home Repair Accessibility Services
56,609
60,000
10,000
Lytton Gardens-New Shower Enclosures
110,000
0
0
Palo Alto Housing Corporation-488 W. Charleston Road Housing
300,000
0
0
0
242,015
211,819
Prior Year Excess/Reallocation (1)
Pro g ra m I n co m e
TOTAL SOURCE OF FUNDS
USE OF FUNDS Public S e r vice
Palo Alto Housing Corporation - SRO Resident Support Services Catholic Charities - Long-Term Care Ombudsman Shelter Network - Haven Family House Support Network for Battered Women - Domestic Violence
SUBTOTAL: PUBLIC SERVICE (2) Planning and Ad ministration City of Palo Alto - CDBG Administration includes 1.15 FTE CDBG Administrative Staff Fair Housing - Project Sentinel
SUBTOTAL: PLANNING AND ADMINISTRATION (2) Housing, Economic Deve lopment & Ca pital Projec ts
Second Harvest Food Bank
Operating Budget FY 2011
City of Palo Alto
245
Community Development Block Grant FY 2011 FUNDING Day Worker Center of Mountain View
FY 2010 Adopted Budget
FY 2011 Agency Requests
FY 2011 Proposed Budget
0
100,000
63,807
SUBTOTAL: HOUSING, ECONOMIC DEVELOPMENT & CAPITAL PROJECTS (2)
$549,809
$880,823
$763,930
TOTAL USE OF FUNDS
$802,259
$1,270,992
$1,046,046
(1) Funds received in excess of revenue estimate for local program income (FY2010 and prior) (2) The funding will be made at the three primary program activity levels
246
City of Palo Alto
Operating Budget FY 2011
Debt Service Funds Overview
E
xpenses for non-utilities debt service are included in these funds and is General Fund debt service.
General debt service is funded by General Fund revenues. It also includes repayment of funds borrowed for improvements to the Golf Course, structural improvements to the Civic Center, and for the commercial building adjacent to lots S and L parking structure on Bryant and Florence. The estimated General debt service expense is $1.2 million for Fiscal Year 2011. Debt service for the Golf Course Renovations and Civic Center Retrofit is funded by an operating transfer from the General Fund. The University Avenue Parking Permit Fund supports support the parking district's share of the Civic Center debt by annually contributing $80,000 to fund debt service. The table below describes the three debt issues currently serviced by the General Fund: the 1998 Golf Course Certificates of Participation (COP's), 2002A Civic Center Refinancing COP's, and 2002B Downtown Parking COP's.
C I T Y
O F
P A L O
A L T O
General Fund Debt Service 1998 Golf Course COP
2002A COP's (Tax Exempt)
2002B COP's (Taxable)
February 1999
January 2002
January 2002
$7,750,000
$3,500,000
$2,674,048
Annual Debt Service Payment
$559,539
$421,410
$233,160
Final Payment Date
Sep. 2018
Mar. 2012
Mar. 2022
Issued Date Principal Issued
Estimated Debt Outstanding as of 7/1/2010
$4,060,000
$795,000
$1,910,000
Total Interest over life of Debt
$4,183,244
$726,625
$2,243,950
The Golf Course COP's were issued in August 1998 to retire the 1978 Golf Course Lease Revenue Bonds and to finance infrastructure improvements at the Golf Course. Funding for this debt service comes from a transfer from the General Fund and is paid for by Golf Course receipts. The 2002A Civic Center Refinancing COP's were issued in January 2002 to refinance the City's 1992 COP's at a lower interest rate. The refinancing resulted in an overall debt service savings of $372,000 and an economic gain of $191,000. The 2002B Downtown Parking Improvement Project COP's were also issued in January 2002 to fund the construction of a two-story, above-ground structure as an extension to the new parking garage on lots S and L. In January 2005, the City established an escrow account to partially defease the Series 2002B COP's. The original principal issued was $3,555,000. The table above reflects the new principal issued of $2,674,048. The defeasance resulted in an overall debt service savings of $1,511,000 and an economic gain of $462,000.
Operating Budget FY 2011
City of Palo Alto
247
Debt Service Funds Overview City of Palo Alto Debt Policy The City of Palo Alto recognizes the need for spending a prudent amount every year for ongoing capital replacement and rehabilitation needs. An ongoing capital improvement plan is vital to ensure the future viability of services and the City places priority on funding its regular and ongoing capital needs on a payas-you-go basis. There are special or extraordinary capital improvement projects in which it is appropriate to consider debt financing. A set of guidelines is included below in order to support the decision-making process. These guidelines were adopted by the City Council on May 13, 1997 (City Manager's Report 210:97). Debt financing is only appropriately considered for capital improvements and not for operating budget items. Annual debt service payments should not exceed 10 percent of the annual expenditure budget of the General Fund. The term of the debt issuance should not exceed the useful life expectancy of the asset acquired, constructed, or improved. It is appropriate to consider debt financing under the following circumstances: • The project financing can be paid for directly by the users of the facility. One example is capital improvements made to the City's golf course, where debt service payments can be made from the green fees paid by golfers. A second example is capital improvements paid for by assessments to property owners, such as a parking assessment for a downtown parking garage • If a significant backlog of Enterprise Funded capital improvement projects has developed and if that backlog cannot be addressed through the ongoing capital budget, without having a significant impact on utility rates • If funding for a large project (or grouping of similar projects) would have a significant negative impact on the availability of funding for other ongoing capital needs • Capital leases may be considered for purchases of large pieces of equipment Legal Debt Limit California Government Code, Section 43605 sets the debt limit at 15 percent of the assessed value of all real and personal property of the City. This Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25 percent of market value. Thus, the limit is calculated at 3.75 percent, which is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value. This legal debt margin only applies to General Obligation debt, of which the City has none at this time. Approximately $56 million General Obligation Bonds for the Library and Community Center, as approved by the voters in November 2008, is tentatively scheduled to be issued mid-June 2010. Based upon the assessed valuation of $21.1 billion for the fiscal year ending June 30, 2009, the City is limited to general obligation indebtedness of $0.8 billion. As of June 30, 2009, the City had no debt subject to this limit.
248
City of Palo Alto
Operating Budget FY 2011
Debt Service Funds Debt Service Funds FUND SUMMARY FY 2009 Actuals
($000)
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
FY 2011 Budget Change
Revenues Other - Interest
59
54
54
54
54
0
$59
$54
$54
$54
$54
$0
526
529
529
528
528
(1)
332
333
333
328
328
(4)
225
225
225
224
224
(1)
80
80
80
80
80
0
SUBTOTAL OPERATING TRANSFERS IN
$1,162
$1,167
$1,167
$1,160
$1,160
$(6)
TOTAL SOURCE OF FUNDS
$1,222
$1,221
$1,221
$1,214
$1,214
$(6)
335 221
355 206
355 206
370 190
370 190
15 (16)
365
380
380
390
390
10
59
46
46
31
31
(14)
100
105
105
110
110
5
135
129
129
123
123
(6)
$1,215
$1,221
$1,221
$1,214
$1,214
$(6)
$7
$0
$0
$0
$0
$0
SUBTOTAL REVENUES
General Fund Operating Transfers Golf Course Corporation Public Improvement Corp. (Civic Center) Parking 2002B COPS Taxable University Avenue Permit Fund Transfer
Expenses Debt Service: Golf Course Corporation - Principal Golf Course Corporation - Interest Public Improvement Corporation Principal Public Improvement Corporation Interest Parking 2002B COPS Taxable - Principal Parking 2002B COPS Taxable Interest
TOTAL USE OF FUNDS NET TO (FROM) RESERVES
249
City of Palo Alto
Operating Budget FY 2011
Special Assessment Debt Service
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250
City of Palo Alto
Operating Budget FY 2011
Internal Service Funds
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City of Palo Alto
Operating Budget FY 2011
Internal Service Funds Overview Internal Service Funds Overview Internal Service Funds provide services to City departments and recover their costs through user charges. These user charges are included in the department/fund budgets under the "allocated charges" expenditure category and do not represent additional expenditure to the City's operating budgets. Vehicle Replacement and Maintenance Fund
The Vehicle Replacement and Maintenance Fund provides maintenance and replacement of vehicles and equipment used by all City departments. In Fiscal Years 2011, this fund will continue to focus on its core activities -- vehicle and equipment replacement, preventive maintenance, repairs, and fueling - and on improving service to client departments. In addition, staff will review and analyze the fleet size and make adjustments as necessary, including implementation of the April 2010 audit recommendations. The fund balance is projected to be $0.2 million at the end of Fiscal Year 2011. Technology Fund
This fund manages citywide Information Technology (IT) activities. The fund continues to maintain critical desktop, software, and infrastructure replacements and maintenance activities. The Enterprise Funds are now full participants in this fund as their technology systems become further integrated into the citywide technology infrastructure. Staff continues to enhance the functionality in the SAP general ledger, project management system, and Human Resources module. The focus for FY2011 will be to implement solutions to continue the Cityâ&#x20AC;&#x2122;s website upgrades, complete an update to the Cityâ&#x20AC;&#x2122;s Information Technology Master Plan, and maintain current service levels. The FY2011 fund balance is projected to be $5.5 million.
The Printing and Mailing Services Fund provides central duplicating and printing and mailing services for all City departments. In FY2011, staff will continue to provide printing and mailing services with a reduced level of staffing. The focuses will be to maintain high customer service while controlling costs and to explore the feasibility of using on-line transmission of job orders to outside vendors. The FY2011 fund balance is projected to be $30,000. General Benefits and Insurance Fund
The General Benefits and Insurance Fund accounts for employee health benefits, retirement pension contributions, and the City's self-insured workers' compensation and general liability programs. Citywide benefit, general liability, and insurance expense decreased 12 percent to $39 million in Fiscal Year 2011, primarily due position eliminations and new budgeting methodologies. Staff continues to examine ways to control citywide benefit and insurance costs. The Fiscal Year 2011 fund balance is projected to be $0.5 million. Retiree Health Benefits Fund
This fund manages the payments associated with, and reserves dedicated to, medical benefits granted to retired employees of the City. The Fiscal Year 2011 fund balance is projected to be $10,000.
C I T Y
O F
P A L O
A L T O
Printing and Mailing Services Fund
Operating Budget FY 2011
City of Palo Alto
253
FY 2011 Internal Service Funds FY 2011 Internal Service Funds FU N D S UMMAR Y
($000)
Vehicle Replacement and Maintenance Technology Fund Fund
Printing and Mailing Fund
General Benefits and Insurance Fund
Retiree Health Benefit Fund
Total
Revenues Operating Revenue
7,585
10,392
1,137
37,668
9,843
66,625
Interest Income
156
315
0
1,293
0
1,764
Other Revenue
191
1,718
2
290
0
2,201
$7,932
$12,424
$1,139
$39,252
$9,843
$70,590
Operating Expenditures
4,861
9,638
1,137
39,252
9,843
64,731
Capital Improvement Program
3,214
3,433
0
0
0
6,647
TOTAL USE OF FUNDS
$8,075
$13,071
$1,137
$39,252
$9,843
$71,378
NET TO/FROM UNRESTRICTED ASSETS
$(143)
$(647)
$2
$0
$0
$(788)
TOTAL SOURCE OF FUNDS
Expenditures
254
City of Palo Alto
Operating Budget FY 2011
Internal Service Funds Unrestricted Assets Internal Service Funds Unrestricted Assets F U N D S UMMAR Y
($000)
Vehicle Replacement and Maintenance Technology Fund Fund
Printing and Mailing Fund
General Benefits and Insurance Fund
Retiree Health Benefit Fund
Total
Changes to Unrestricted assets JUNE 30, 2010 UNRESTRICTED ASSETS
$332
$6,138
$30
$481
$10
$6,991
FY 2011 Projected Changes
(143)
(647)
2
0
0
(788)
JUNE 30, 2011 UNRESTRICTED ASSETS
$189
$5,491
$32
$481
$10
$6,203
Operating Budget FY 2011
City of Palo Alto
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City of Palo Alto
Operating Budget FY 2011
Vehicle Replacement Fund Vehicle Replacement Fund To provide for the timely replacement of vehicles and equipment in accordance with prescribed schedules, to ensure the safe, reliable, and efficient operation of vehicles and equipment through systematic preventive maintenance and cost-effective repairs, and to provide safe, efficient fuel storage and dispensing facilities while pursuing alternative fuel technologies and minimizing the pollution and carbon footprint generated from the City’s vehicle fleet. OVERVIEW In Fiscal Year 2010, Public Works focused on core activities, such as vehicle and equipment replacement, preventive maintenance, repairs, and fueling. During Fiscal Year 2011, staff will continue to focus on core activities as described above. The Fiscal Year 2011 budget accounts for continuation of the replacement of the City-Wide fuel management system (CIP VR-06801) and the pool vehicle reservation system (CIP VR-07001) which reside within the capital improvement program with project cost captured in the fund. Staff continues to review the City’s fleet with the City Auditor’s Office to ensure that purchases are prioritized for maximum cost effectiveness and are in compliance with the City’s utilization and replacement policies. An evaluation of the fleet’s size may result in the downsizing of the fleet, and the CIP for vehicle replacement may be subject to change.
FUND SUMMARY FY 2009 Actuals
Operating Revenue Interest Income Other Income TOTAL FUND REVENUES Administration Vehicle Replacement and Additions Vehicle Operations and Maintenance TOTAL FUND EXPENDITURES TO/FROM RESERVES
Operating Budget FY 2011
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
FY 2011 Budget Change
565,687 8% (51,300) (25%) (75,000) (28%) $439,387 6% (145,974) (100%) 2,546,225 284%
8,115,602 320,762 388,305 $8,824,669 2,033,367 8,669,061
7,019,248 207,600 266,009 $7,492,857 145,974 895,237
7,019,248 207,600 266,009 $7,492,857 145,974 896,659
7,019,248 207,600 266,009 $7,492,857 118,559 225,529
7,584,935 156,300 191,009 $7,932,244 0 3,442,884
4,075,670
4,471,094
4,482,820
4,510,982
4,632,047
$14,778,098 $(5,953,429)
$5,512,305 $1,980,552
$5,525,453 $1,967,404
$4,855,070 $2,637,787
149,227
% Chg
3%
$8,074,931 $2,549,478 46% $(142,687) $(2,110,091)
City of Palo Alto
257
Vehicle Replacement Fund
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges Capital Improvement Program Operating Transfers Out
TOTAL EXPENDITURES
FY 2010 Adopted Budget
FY 2011 Adopted-inConcept Budget
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
1,633,019 1,235,397 1,624,250 5,369,807 4,094,846 3,271 790,093 0 27,415
2,042,124 443,100 1,479,600 1,000 22,000 10,000 817,066 670,000 27,415
2,055,272 443,100 1,479,600 1,000 22,000 10,000 817,066 670,000 27,415
2,041,479 443,100 1,479,600 1,000 22,000 10,000 857,891 0 0
2,021,593 351,500 1,534,200 1,000 65,500 3,500 884,138 3,213,500 0
$14,778,098
$5,512,305
$5,525,453
$4,855,070
$8,074,931
16.20 0.08
16.08 0.00
16.08 0.96
16.08 0.00
16.08 0.48
Total Full Time Positions Total Temporary Positions
B ENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Number of alternatively-fueled vehicles in the City fleet (SEA)
75
73
65
25%
25%
25%
87,725
90,000
95,000
Efficienc y : 1. Percentage of total fleet fuel consumption that is alternative fuels (CNG, biodiesel). Includes fuel provided to PAUSD and PASCO (GreenWaste beginning 7/1/09) (SEA)
Effe c t iveness: 1. Amount of gasoline and diesel fuel consumption avoided (in gallons). Includes fuel provided to PAUSD and PASCO (GreenWaste beginning 7/ 1/09).
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VENUE CHANGES Increase vehicle replacement reimbursement from other funds Decrease sale of salvage Decrease interest income
TOTAL REVENUE CHANGES
258
City of Palo Alto
565,687 (75,000) (51,300) $439,387
565,687 (75,000) (51,300) $0
$439,387
Operating Budget FY 2011
Vehicle Replacement Fund RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
Adjustments (Note 1)
NET REVENUE CHANGES
0 $439,387
$0
$439,387
EXPENDITURE CHANGES Salary and Benefits Personnel Benefits Costs (Note 2) Total Salary and Benefits
(20,531) $(20,531)
Adjustments (Note 1) NET SALARY AND BENEFITS CHANGES
$(20,531)
(20,531) $0
$(20,531)
(13,149)
(13,149)
$(13,149)
$(33,680)
Non-Salary Increase capital improvement program (Note 3) Decrease operating transfer to General Fund (Note 4) Allocated Charges Increase (Note 5)
2,543,500 (27,415) 67,073
2,543,500 (27,415) 67,073
Total Non-Salary
$2,583,158
$0
$2,583,158
TOTAL EXPENDITURE CHANGES
$2,562,627
$(13,149)
$2,562,627
Adjustments (Note 1)
NET EXPENDITURE CHANGES
0 $2,562,627
$(13,149)
$2,549,478
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY 2010 budget. Note 2: Personnel benefit costs have decreased mainly due to a change in methodology of estimating benefit costs. Note 3: Projected CIP expenditures for the Vehicle Replacement and Maintenance Fund are $3.2 million in Fiscal Year 2011. This amount is subject to change pending implementation of the April 2010 audit recommentations. Note 4: Decrease in operating transfer to General Fund in Fiscal Year 2011 reflects end of payments for retiree medical catch-up plan. Note 5: Increase in allocated charges is primarily due to increases telecommunications, cost plan, and vehicle charges.
Operating Budget FY 2011
City of Palo Alto
259
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City of Palo Alto
Operating Budget FY 2011
Technology Fund Technology Fund OVERVIEW In Fiscal Year 2011, the Technology Fund will continue to deliver information technology services in accordance with the Information Technology (IT) Strategic Plan. The IT Strategic Plan will be updated to ensure that a cohesive, citywide management information strategy be in place to address organizational, operational, and technological infrastructure issues. The plan facilitates the development and implementation of citywide priorities including SAP, eGovernment, Geographic Information System (GIS), IT Security, and Telecommunications. Client Services will continue to maintain the City's desktop computers, and has extended the 36-month replacement schedule to 48-months as a cost saving measure. Infrastructure Services will focus on: implementing the Telecommunications Master Plan; developing a Wireless Service Strategic Plan; refining and implementing the disaster recovery plan for the City's mission critical systems; conducting an IT security audit; updating the City's existing telephone system; and upgrading the City's network infrastructure. Project Management and Application has upgraded the SAP Enterprise Resources Planning (ERP) system. Migration and upgrade activities continue to be ongoing. The technical upgrade of the SAP environment to SAP 2005 was performed prior to the migration of the Utilities Department Customer Information System. In Fiscal Year 2009, $4.9 million in allocated charges was deferred from the General Fund to the Internal Service Technology Fund. Beginning Fiscal Year 2010, a 4-year repayment schedule was adopted to repay $1.2 million annually. The Technology Fund reserve was established to fund the replacement of the City's IT infrastructure. The continued existence of this reserve reflects the City's strong commitment to future technology infrastructure needs.
FUND SUMMARY FY 2009 Actuals
Operating Revenue Interest Income Other Income TOTAL FUND REVENUES Client Services Infrastructure Services Project Management and Application Technology Projects TOTAL FUND EXPENDITURES TO/FROM RESERVES
Operating Budget FY 2011
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
8,867,674 10,391,759 3,768,087 8,867,674 10,088,368 903,065 551,100 551,100 551,100 314,600 6,424,314 598,617 793,737 1,709,233 1,717,731 $11,095,466 $10,017,391 $11,433,205 $11,128,007 $12,424,090 3,469,926 4,568,670 4,577,089 4,484,396 4,037,215 2,748,122 1,523,237 1,528,753 1,525,538 1,130,880 3,813,276
3,559,572
3,570,148
3,561,653
4,400,857
FY 2011 Budget Change
% Chg
303,391 3% (236,500) (43%) 923,994 116% $990,885 9% (539,874) (12%) (397,873) (26%) 830,709 23%
7,145,088 1,011,245 1,206,365 3,500,813 3,502,224 2,295,859 190% $17,176,412 $10,662,724 $10,882,355 $13,072,400 $13,071,176 $2,188,821 20% $550,850 $(1,944,393) $(647,086) $(1,197,936) $(6,080,946) $(645,333)
City of Palo Alto
261
Technology Fund
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials Facilities and Equipment Purchases General Expense Rents and Leases Allocated Charges Capital Improvement Program Operating Transfers Out
TOTAL EXPENDITURES
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
5,094,901 8,895,810 324,477 571,665 1,159,324 231,145 794,555 0 104,535
5,185,795 2,200,300 160,776 560,125 565,305 246,000 726,228 943,432 74,763
5,210,306 2,200,300 160,776 560,125 565,305 246,000 726,228 1,138,552 74,763
5,190,620 2,200,300 160,776 560,125 565,305 246,000 716,274 3,433,000 0
4,562,855 3,031,821 60,000 750,039 421,800 236,000 575,661 3,433,000 0
$17,176,412
$10,662,724
$10,882,355
$13,072,400
$13,071,176
30.65 0.68
30.65 0.84
30.65 0.84
30.65 0.84
30.41 2.06
Total Full Time Positions Total Temporary Positions
B ENCHMARKING MEASURES FY 2009 Actuals
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
Work l oa d O ut put s : 1. Number of computer workstations (SEA) 2. Provide public video broadcasting for meetings of the City Council, Council Commissions, and Committees (e.g. Finance, Policy & Services, Planning, Public Arts, Library Advisory, etc.)
1,005
1,025
1,020
190
190
190
5.8%
3.6%
4.5%
87%
86%
87%
Efficienc y : 1. Information Technology General Fund operating and maintenance expenditures as a percent of total operating expenditures (SEA)
Effe c t iveness: 1. Percent of requests for computer help desk services resolved within 5 days (SEA)
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VENUE CHANGES Decrease investment income Decrease stanford revenue Decrease other miscellaneous revenue
262
City of Palo Alto
(236,500) (37,000) (9,600)
(236,500) (37,000) (9,600)
Operating Budget FY 2011
Technology Fund RESOURCE LEVEL CHANGES Increase allocated revenues-loan repayment Increase allocated revenues-internal Increase operating transfers in for CIP projects
TOTAL REVENUE CHANGES
FY 2011 Ongoing 1,220,693 303,391 970,594 $2,211,578
FY 2011 Total 1,220,693 303,391 970,594
$0
$2,448,078
(1,220,693)
0
$2,211,578 $(1,220,693)
$990,885
Adjustments (Note 1)
NET REVENUE CHANGES
FY 2011 One-Time
EXPENDITURE CHANGES Salary and Benefits Elimination of .04 FTE Administrative Associate III Elimination of 1.0 FTE Technologist Add of .50 FTE Administrator from City Manager's Office Transfer of .10 FTE Business Analyst from Administrative Services Department Transfer of .20 FTE Sr Business Analyst from Administrative Services Department Personnel Benefit Costs Increase (Note 2) Adjustments Total Salary and Benefits
(4,146) (160,416) 58,273
(4,146) (160,416) 58,273
12,240
12,240
27,830
27,830
(482,829) (98,400)
(482,829) (98,400)
$(98,400)
$(647,448)
$(549,048)
EXPENDITURE CHANGES Non-Salary Increase in application maintenance (Note 4) Decrease in application replacement (Note 4) Decrease in infrastructure maintenance (Note 4) Decrease in infrastructure replacement (Note 4) Increase in desktop maintenance (Note 4) Increase in desktop replacement (Note 4) Decrease telecommunication (Note 4) Increase CIP project costs Allocated Charges decrease (Note 3)
506,425 (190,150) (90,287) (888) 130,000 99,575 (151,283) 2,295,859 (150,567)
506,425 (190,150) (90,287) (888) 130,000 99,575 (151,283) 2,295,859 (150,567)
Total Non-Salary
$2,448,684
$0
$2,448,684
TOTAL EXPENDITURE CHANGES
$1,899,636
$0
$1,899,636
387,585
0
$289,185
$2,188,821
Adjustments (Note 1)
NET EXPENDITURE CHANGES
$1,899,636
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY2010 budget.
Operating Budget FY 2011
City of Palo Alto
263
Technology Fund Note 2: Personnel benefit costs have decreased mainly due to a change in methodology of estimating benefit costs. Note 3: Decrease in allocated charges are mainly due to a decrease in cost plan charges. Note 4: Increase and decrease in expenditures for Application maintenance and replacement, Infrastructure maintenance and replacement, Desktop maintenance and replacement, and Telecommunication are mainly due to a change in maintenance and replacement schedules and the reclassification of maintenance and replacement line items.
SERVICE LEVEL CHANGES Information Technology staff is continually adjusting to an increasing workload. The effect on management and staff has been an increase in project management responsibilities. Due to the increased workload, it will be necessary to contract for consulting services for any enterprise application upgrades. Highlights of service level changes are as follows: •
Enterprise level applications will be maintained at the current level. Any new major initiatives will require the contracting of consulting services
•
GIS data updating will be maintained. New projects will require additional staff resources
•
The upgrade to SAP 2005 will enable the City to offer a number of additional services to its employees and citizens which include, but are not limited to, Employee Self-Service (ESS), Management Self-Service (MSS), and the inclusion of SAP's Utility billing module known as Industry-Specific Solution for Utilities (ISU)
•
The SAP upgrade and IS-U migration was performed with the assistance of consulting resources, to ultimately allow Utilities customers to pay their bills online from any internet access point, adding the value of convenience to customer services; this requires major staff resources to address trial issues during the first year, and then to integrate additional functionality in future years
•
The change from a 36-month to 48-month desktop computer replacement schedule has the potential impact of increasing demand for IT support services to upkeep aging machines and repair malfunctions, and may increase maintenance costs
•
The loss of a 1.0 FTE Technologist position will necessitate utilizing a contractor to perform HP/UX system administration and Basis Administration functions for SAP
•
Any new major IT initiative(s) will require additional staffing and/or budget for consulting resources
264
City of Palo Alto
Operating Budget FY 2011
Printing and Mailing Fund Printing and Mailing Fund OVERVIEW In Fiscal Year 2011, the Printing and Mailing Fund will continue to provide printing and mailing services with a reduced level of staffing. City staff will manage print requests, with the production of major jobs accomplished by using local professional print shops. Items for Council packets will continue to be printed, and assembled inhouse. In addition, to control costs, staff will explore the feasibility of using on-line transmission of job orders to outside vendors. To enhance processing efficiencies, the Printing Services Unit will continue to extend document processing services to City departments, using the digital document processing system. For Mailing Services, the City will continue to process and distribute internal mail daily to departments. In addition, the City will continue to utilize a mailing services provider to transport all outgoing mail, including customer utility bills, at no additional cost. Utility bills are mailed using permit indicia; all other City mail is processed through the Mailing Services Unit.
FUND SUMMARY FY 2009 Actuals
Operating Revenue Interest Income Other Income TOTAL FUND REVENUES Printing and Mailing TOTAL FUND EXPENDITURES TO/FROM RESERVES
Operating Budget FY 2011
1,419,994 (9,405) 4,413 $1,415,002 1,516,952 $1,516,952 $(101,950)
FY 2010 Adopted Budget
1,335,613 0 2,000 $1,337,613 1,411,480 $1,411,480 $(73,867)
FY 2010 Adjusted Budget
1,335,613 0 2,000 $1,337,613 1,424,403 $1,424,403 $(86,790)
FY 2011 Adopted-inConcept Budget
1,335,613 0 2,000 $1,337,613 1,406,426 $1,406,426 $(68,813)
FY 2011 Proposed Budget
FY 2011 Budget Change
1,137,000 0 2,000 $1,139,000 1,135,805 $1,135,805 $3,195
(198,613) 0 0 $(198,613) (288,598) $(288,598) $89,985
% Chg
(15%) 0% 0% (15%) (20%) (20%)
City of Palo Alto
265
Printing and Mailing Fund
INPUTS FY 2009 Actuals Salaries and Benefits Contract Services Supplies and Materials General Expense Rents and Leases Allocated Charges Operating Transfers Out
TOTAL EXPENDITURES
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
528,614 130,201 76,839 381,031 260,496 131,549 8,222
375,564 167,011 81,758 399,357 269,385 110,183 8,222
388,487 167,011 81,758 399,357 269,385 110,183 8,222
375,921 167,011 81,758 399,357 269,385 112,994 0
121,470 167,011 81,758 399,357 269,385 96,824 0
$1,516,952
$1,411,480
$1,424,403
$1,406,426
$1,135,805
4.05 0.00
4.05 0.00
4.05 0.00
4.05 0.00
1.57 0.00
Total Full Time Positions Total Temporary Positions
B ENCHMARKING MEASURES
FY 2010 Adjusted Budget
FY 2011 Proposed Budget
1,600
1,600-2,200
1,500-2,000
100%
100%
100%
98%
100%
100%
FY 2009 Actuals
Work l oa d O ut put s : 1. Number of utilities bills mailed on average per day
Efficienc y : 1. Accommodate 85 percent of late printing requests for inclusion in the weekly City Council packet
Effe c t iveness: 1. Percent of utilities bills mailed timely each day
RESOURCE LEVEL CHANGES
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
RE VENUE CHANGES Decrease mailing services Decrease printing services
TOTAL REVENUE CHANGES
(91,778) (106,835) $(198,613)
(91,778) (106,835) $0
$(198,613)
EXPENDITURE CHANGES Salary and Benefits Elimination of 1.0 FTE Supervisor Reproduction and Mail Elimination of 1.0 FTE Offset Equipment Operator-Lead Elimination of .48 FTE Print Shop Assistant
266
City of Palo Alto
(110,440) (91,894) (19,650)
(110,440) (91,894) (19,650)
Operating Budget FY 2011
Printing and Mailing Fund RESOURCE LEVEL CHANGES Transfer of .48 FTE Offset Equipment Operator to Utilities Personnel Benefit Costs Increase (Note 2)
FY 2011 Ongoing
FY 2011 One-Time
FY 2011 Total
(45,031) 12,564
(45,031) 12,564
Total Salary and Benefits
$(254,451)
$0
$(254,451)
NET SALARY AND BENEFITS CHANGES
$(254,451)
$0
$(254,451)
Non-Salary Allocated Charges decrease (Note 3) Total Non-Salary
(15,063) $(15,063)
Adjustments (Note 1)
TOTAL EXPENDITURE CHANGES
$(269,514)
(15,063) $0
$(15,063)
(19,084)
(19,084)
$(19,084)
$(288,598)
RESOURCE LEVEL NOTES Note 1: Adjustments include one-time revenues and appropriation changes from the prior year that did not carry forward from the FY2010 budget. Note 2: Personnel benefit costs have decreased mainly due to reductions in proposed staffing levels and a change in methodology of estimating benefit costs. Note 3: Allocated charges have decreased mainly due to a change in methodology of calculating Information Technology costs.
SERVICE LEVEL CHANGES Due to the reduction of staff, from 4.05 FTE to 1.57 FTE, departments may experience a longer lead-time on printing requests when jobs are sent to an outside print shop.
Operating Budget FY 2011
City of Palo Alto
267
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268
City of Palo Alto
Operating Budget FY 2011
General Benefits and Insurance Fund General Benefits and Insurance Fund OVERVIEW The General Benefits and Insurance Funds are jointly managed by Administrative Services and Human Resources Department staff and accounts for health benefits, the City's self-insured workers' compensation, and general liability programs. The table below reflects citywide expense of $5.4 million from Fiscal Year 2010 adjusted budget totals. PERS contributions, healthcare for active city employees and workers' compensation costs are the three major expenses in the General Benefits and Insurance Fund. Citywide, PERS contributions have decreased 18 percent to $19.3 million in the proposed FY 2011 budget, as compared to the FY 2010 adjusted budget. Medical, dental, and vision healthcare for active employees is $13.4 million in the proposed FY 2011 budget, a 10 percent decrease compared to the FY 2010 adjusted budget. These decreases are due to position eliminations and new budgeting methodologies. Workers' compensation expense increased 10 percent from FY 2010 adjusted budget to $3.5 million. Included in the FY 2011 proposed budget is $0.3 million estimate for incurred but not reported workers' compensation claims.
FUND SUMMARY FY 2009 Actuals
Operating Revenue Interest Income Other Income TOTAL FUND REVENUES Operating Expense TOTAL FUND EXPENDITURES TO/FROM RESERVES
Operating Budget FY 2011
FY 2010 Adopted Budget
FY 2010 Adjusted Budget
FY 2011 Adopted-inConcept Budget
FY 2011 Proposed Budget
1,383,200 1,383,200 1,729,760 1,182,200 1,383,200 1,936,346 1,463,300 1,463,300 1,463,300 1,293,400 35,634,360 41,767,900 41,767,900 41,767,900 36,228,539 $38,752,906 $44,614,400 $44,614,400 $44,614,400 $39,251,699 41,556,024 44,614,400 44,614,400 44,614,400 39,251,699 $41,556,024 $44,614,400 $44,614,400 $44,614,400 $39,251,699 $0 $0 $0 $(2,803,118) $0
FY 2011 Budget Change
346,560 (169,900) (5,539,361) $(5,362,701) (5,362,701) $(5,362,701) $0
% Chg
25% (12%) (13%) (12%) (12%)
City of Palo Alto
269
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270
City of Palo Alto
Operating Budget FY 2011
Retiree Health Benefit Fund Retiree Health Benefit Fund OVERVIEW The Retiree Health Benefit Fund manages the payments associated with and reserves dedicated to medical benefits granted to retired employees of the City. In Fiscal Year 2011, retiree health benefit expense is estimated to be $9.8 million. The General Fund contribution for the portion of the retiree medical liablility related to future retirees, was suspended in Fiscal Year 2009 and 2010 budgets in the amounts of $1.9 million and $0.2 million respectively. This was a temporary budget balancing action that was not carried forward into the Fiscal Year 2011 budget. For 2011, the annual required contribution to cover the cost of retiree medical premiums for current and future retirees was included in the proposed budgets for both the General Fund and the Enterprise Funds. This contribution includes an amortization payment of the un-funded medical premium liabilities in an amount of approximately $6 million in addition to the current cost of medical benefit payments of approximately $3.8 million. This amortization payment is in accordance with the recommendations set forth by the Cityâ&#x20AC;&#x2122;s actuary and is intended to fully fund the liability at the conclusion of the amortization period. The City has established an irrevocable trust fund to account for assets accumulated to offset the retiree medical liability for current and future retirees. The funding schedule established by the City for current and future liabilities is in compliance with accounting standards promulgated by the Governmental Accounting Standards Board (GASB 45) for expense recognition.
FUND SUMMARY FY 2009 Actuals
Interest Income Other Income TOTAL FUND REVENUES Operating Expense TOTAL FUND EXPENDITURES TO/FROM RESERVES
Operating Budget FY 2011
(152,276) 5,786,180 $5,633,904 7,985,104 $7,985,104 $(2,351,200)
FY 2010 Adopted Budget
0 6,702,182 $6,702,182 6,702,182 $6,702,182 $0
FY 2010 Adjusted Budget
0 9,290,220 $9,290,220 9,290,220 $9,290,220 $0
FY 2011 Adopted-inConcept Budget
0 8,734,589 $8,734,589 8,734,589 $8,734,589 $0
FY 2011 Proposed Budget
0 9,842,964 $9,842,964 9,842,964 $9,842,964 $0
FY 2011 Budget Change
0 552,744 $552,744 552,744 $552,744 $0
City of Palo Alto
% Chg
0% 6% 6% 6%
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272
City of Palo Alto
Operating Budget FY 2011
Average Salary & Benefits Average Salary & Benefits
CATEGORY
Management/ Fire Chiefs Professional Association
IAFF
PAPOA
Police Mgmt Group
TOTAL
SEIU
FTE
235
4
108
76
7
577
% OF CITY
23%
0%
11%
8%
1%
57%
100%
$112,645
$138,200
$105,105
$113,685
$143,972
$69,810
$88,343,239
OVERTIME (A)
n/a
n/a
$18,611
$13,436
n/a
$2,389
$4,409,388
VARIABLE MGMT COMP
$0
$6,402
$0
$0
$0
$0
$25,606
IN-LIEU HOLIDAY
n/a
n/a
$5,756
$6,226
n/a
$3,823
$3,300,882
$4,108
$5,315
n/a
n/a
$5,537
n/a
$1,026,916
PERS EMPLOYER
$19,775
$34,129
$27,377
$29,612
$35,554
$12,255
$17,317,851
PERS EMPLOYEE
$6,760
$12,438
see note (B)
$10,792
$12,957
$1,571
$3,457,612
MEDICARE
$1,633
$2,004
$1,607
$1,739
$2,088
$1,068
$1,328,840
$11,579
$11,579
$11,579
$11,579
$11,579
$11,579
$11,663,773
DENTAL/VISION
$1,761
$1,761
$1,761
$1,761
$1,761
$1,761
$1,773,697
RETIREE MEDICAL LIABILITY
$9,771
$9,771
$9,771
$9,771
$9,771
$9,771
$9,842,964
WORKER'S COMP
$1,979
$0
$7,293
$10,337
$0
$2,116
$3,259,609
LIFE/LTD/SUI/EAP
$598
$598
$598
$598
$598
$598
$602,814
$4,666
$4,666
$1,666
$1,666
$4,666
$759
$1,894,150
$175,275
$226,862
$191,124
$211,202
$228,483
$117,500
$148,247,341
SALARY
MGMT LEAVE
MEDICAL
NON-SALARY BENEFITS TOTAL SALARY/ BENEFITS
1,007
(A) Average employee eligible for benefit (B) Beginning January 1, 2010, IAFF received a 9.989% salary increase and PERS employee contribution cost was transferred from the city to the employee.
Operating Budget FY 2011
City of Palo Alto
273
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274
City of Palo Alto
Operating Budget FY 2011
STAFFING
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276
City of Palo Alto
Operating Budget FY 2011
Summary of Position Changes Summary of Position Changes FTE
GENERAL FUND 622.51
FY 2010 ADOPTED BUDGET F Y 2 01 0 B AO Po s i t i o n Ad j u s t m e nt s Tree Maintenance Person (PWD)
(2.00)
Tree Maintenance Specialist (PWD)
2.00 622.51
FY 2010 ADJUSTED TOTAL F Y 2 01 1 N ew Pos i t i o n s Administrator (CMO)
0.50
FY 2011 Total New Positions
0.50
F Y 2 01 1 R ec la s s i f i e d Pos i t i o n s Supervisor, Recreation Programs
(2.00)
Senior Supervisor, Recreation Programs
2.00
Transportation Manager (PCE)
(1.00)
Chief Transportation Official (PCE)
1.00
FY 2011 Total Reclassified Positions
0.00
F Y 2 01 1 R ea l l o c ate d Po s i t i o n s Business Analyst (ASD)
(0.10)
Contracts Administrator (ASD)
(0.60)
Senior Business Analyst (ASD)
(0.20)
Senior Engineer (PWD)
(0.10)
Senior Financial Analyst (ASD)
(1.10)
Warehouse Supervisor (ASD)
(0.50)
Assistant to City Manager (CMO)
(0.45)
Planner (PCE)
(0.30)
Senior Deputy City Attorney (ATT)
(1.00)
FY 2011 Total Reallocated Positions
(4.35)
FY 2011 E l iminated Po si ti ons Accounting Specialist (ASD)
(1.00)
Administrative Associate III (ASD)
(0.96)
Administrative Associate II (CMO)
(1.00)
Administrative Associate I (CSD)
(2.00)
Building Serviceperson (CSD)
(2.00)
Coordinator Child Care (CSD)
(1.00)
Operating Budget FY 2011
City of Palo Alto
277
Summary of Position Changes FTE Coordinator Recreation Programs (CSD)
(0.50)
Cubberley Center & Human Services Division Manager (CSD)
(1.00)
Golf Course Equipment Mechanic (CSD)
(1.00)
Golf Course Maintenance Person (CSD)
(4.00)
Park Maintenance Person (CSD)
(5.00)
Parks Crew-Lead (CSD)
(1.00)
Prod Arts/Science Program (CSD)
(1.00)
Program Assistant I (CSD)
(1.00)
Sprinkler System Repairer (CSD)
(1.00)
Administrative Assistant (FIR)
(1.00)
Hazardous Material Specialist EMT (FIR)
(0.95)
Library Associate (LIB)
(1.00)
Library Assistant (LIB)
(0.50)
Senior Librarian (LIB)
(1.00)
Administrative Associate I (PCE)
(1.00)
Building Inspector Specialist (PCE)
(1.00)
Building/Planning Technician (PCE)
(1.00)
Code Enforcement Officer (PCE)
(1.00)
Senior Planner (PCE)
(1.00)
Code Enforcement Officer (POL)
(0.50)
Crime Analyst (POL)
(1.00)
Police Agent (POL)
(1.00)
Police Officer (POL)
(5.00)
Police Records Specialist II (POL)
(1.00)
Police Sergeant (POL)
(1.00)
Program Coordinator (POL)
(1.00)
Building Serviceperson (PWD)
(3.00)
Tree Trimmer/Line Clearer (PWD)
(4.00)
FY 2011 Total Eliminated Positions
FY 2011 TOTAL PROPOSED GENERAL FUND POSITIONS
(50.41) 568.25
ENTERPRISE FUNDS FY 2010 ADOPTED BUDGET
356.24
F Y 2 01 0 Po s i ti o n Ad j u s t m e nts
278
City of Palo Alto
Operating Budget FY 2011
Summary of Position Changes FTE Cathodic Protection Technician/Assistant (UTL)
1.00
Gas System Technician II (UTL
1.00
Utility Field Service Representative (UTL)
(1.00)
Water System Operator II (UTL)
(1.00) 356.24
FY 2010 ADJUSTED TOTAL F Y 2 01 1 N ew Pos i t i o n s Compliance Manager (UTL)
1.00
Customer Service Representative (UTL)
1.00
Customer Service Specialist (UTL)
1.00
Manager Communications (UTL)
1.00
Senior Business Analyst (UTL)
1.00
Utility Installer/Repairer (UTL)
2.00
FY 2011 Total New Positions
7.00
F Y 2 01 1 R ec la s s i f i e d Pos i t i o n s Assoc Resource Planner (UTL)
(1.00)
Resource Planner (UTL)
1.00
Electric Project Engineer (UTL)
1.00
Gas Systems Technician (UTL)
1.00
Heavy Equipment Operator (UTL)
(1.00)
Meter Shop Lead (UTL)
(1.00)
Power Engineer (UTL)
1.00
Project Engineer (UTL)
(1.00)
Supervising Electric Project Engineer (UTL)
(1.00)
Supervising Project Engineer (UTL)
1.00
Utilities Engineer Estimator Lead (UTL)
(1.00)
Water Meter/Cross Connection Technician (UTL)
1.00
FY 2011 Total Reclassified Positions
0.00
F Y 2 01 1 R ea l l o c ate d Po s i t i o n s Assistant to City Manager (CMO)
0.45
Offset Equip Op (ASD)
0.48
Planner (PCE)
0.30
Senior Engineer (PWD)
0.30
Senior Financial Analyst (ASD)
0.50
Senior Deputy City Attorney (ATT)
1.00
Operating Budget FY 2011
City of Palo Alto
279
Summary of Position Changes FTE Warehouse Supv (ASD) FY 2011 Total Reallocated Positions
0.50 3.53
FY 2011 E l iminated Po si ti ons Engineer Tech III (PWD)
(0.10)
Hazardous Materials Specialist (FIR)
(0.05)
FY 2011 Total Eliminated Positions
FY 2011 TOTAL PROPOSED ENTERPRISE FUND POSITIONS
(0.15) 366.62
OTHER FUNDS FY 2010 ADOPTED BUDGET
76.60
F Y 2 01 0 B AO Po s i ti o n Ad j u s t m e nt s None
FY 2010 ADJUSTED TOTAL
76.60
F Y 2 01 1 N ew Pos i t i o n s Administrator (CMO)
0.50
Accounting Specialist (ASD)
0.50
FY 2011 Total New Positions
1.00
F Y 2 01 1 R ea l l o c ate d Po s i t i o n s Offset Equipment Operator (ASD)
(0.48)
Business Analyst (ASD)
0.10
Contracts Administrator (ASD)
0.60
Senior Business Analyst (ASD)
0.20
Senior Engineer (PWD) Senior Financial Analyst (ASD) FY 2011 Total Reallocated Positions
(0.20) 0.60 0.82
FY 2011 E l iminated Po si ti ons
280
Administrative Associate III (ASD)
(0.04)
Offset Equipment Operator - Lead (ASD)
(1.00)
Supervisor Reproduction & Mail (ASD)
(1.00)
Technologist (ASD)
(1.00)
Administrative Associate III (PWD)
(1.00)
Engineer Tech III (PWD)
(0.90)
City of Palo Alto
Operating Budget FY 2011
Summary of Position Changes FTE Project Manager (PWD)
(1.00)
FY 2011 Total Eliminated Positions
(5.94) 72.48
FY 2011 TOTAL ADOPTED OTHER FUNDS POSITIONS
1007.35
2009-10 TOTAL PROPOSED CITYWIDE POSITIONS
Operating Budget FY 2011
City of Palo Alto
281
Table of Organization Table of Organization FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
GENERAL FUND Cit y Atto rney Assistant City Attorney
1.00
1.00
1.00
1.00
1.00
0.00
City Attorney
1.00
1.00
1.00
1.00
1.00
0.00
Claims Investigator
0.60
0.60
0.60
0.60
0.60
0.00
Deputy City Attorney
0.00
0.00
0.00
0.00
0.00
0.00
Legal Administrator
1.00
1.00
1.00
1.00
1.00
0.00
Legal Secretary - Confidential
0.00
0.00
0.00
0.00
0.00
0.00
Secretary to City Attorney
1.00
1.00
1.00
1.00
1.00
0.00
Senior Assistant City Attorney
2.00
2.00
2.00
2.00
2.00
0.00
Senior Deputy City Attorney (10)
2.00
2.00
2.00
2.00
1.00
(1.00)
Senior Legal Secretary
2.00
2.00
2.00
2.00
2.00
0.00
10.60
10.60
10.60
10.60
9.60
(1.00)
Administrative Assistant
1.00
1.00
1.00
1.00
1.00
0.00
Auditor
0.00
0.00
0.00
0.00
0.00
0.00
City Auditor
1.00
1.00
1.00
1.00
1.00
0.00
Deputy City Auditor
0.00
0.00
0.00
0.00
0.00
0.00
Senior Auditor
2.00
2.00
2.00
2.00
2.00
0.00
TOTAL CITY AUDITOR
4.00
4.00
4.00
4.00
4.00
0.00
Administrative Associate III
3.00
3.00
3.00
3.00
3.00
0.00
Assistant City Clerk
1.00
1.00
1.00
1.00
1.00
0.00
City Clerk
1.00
1.00
1.00
1.00
1.00
0.00
Deputy City Clerk
1.00
1.00
1.00
1.00
1.00
0.00
Parking Examiner
0.75
0.75
0.75
0.75
0.75
0.00
TOTAL CITY CLERK
6.75
6.75
6.75
6.75
6.75
0.00
1.00
1.00
1.00
1.00
1.00
0.00
TOTAL CITY ATTORNEY Cit y Au ditor
Cit y Clerk
Cit y M a nager Administrative Assistant
282
City of Palo Alto
Operating Budget FY 2011
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Administrative Associate I
1.50
1.50
1.50
1.50
1.50
0.00
Administrative Associate II (9)
1.00
1.00
1.00
1.00
0.00
(1.00)
Administrator (1)
0.00
0.00
0.00
0.00
0.50
0.50
Assistant City Manager
1.00
1.00
1.00
1.00
1.00
0.00
Assistant to City Manager (7)
2.00
2.00
2.00
2.00
1.50
(0.50)
City Manager
1.00
1.00
1.00
1.00
1.00
0.00
Deputy City Manager
0.00
0.50
0.50
0.50
0.50
0.00
Executive Assistant to the City Manager
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Communications
1.00
0.00
0.00
0.00
0.00
0.00
Public Communication Manager
1.00
1.00
1.00
1.00
1.00
0.00
Senior Administrator
1.00
0.00
0.00
0.00
0.00
0.00
11.50
10.00
10.00
10.00
9.00
(1.00)
11.00
8.00
8.00
8.00
7.00
(1.00)
Accounting Specialist - Lead
5.00
5.00
5.00
5.00
5.00
0.00
Administrative Assistant
0.93
0.93
0.93
0.93
0.93
0.00
Administrative Associate III (9)
0.96
0.96
0.96
0.96
0.00
(0.96)
Assistant Director, Administrative Services
0.60
0.60
0.60
0.60
0.60
0.00
Assistant Storekeeper
0.00
0.00
0.00
0.00
0.00
0.00
Business Analyst (11)
0.10
0.10
0.10
0.10
0.00
(0.10)
Buyer
1.95
1.95
1.95
1.95
1.95
0.00
Contracts Administrator (3)
2.00
2.00
2.00
2.00
1.40
(0.60)
Deputy Director, Administrative Services
0.80
0.80
0.80
0.80
0.80
0.00
Director, Administrative Services
0.50
0.50
0.50
0.50
0.50
0.00
Graphic Designer
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Accounting
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Budget
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Purchasing/Contract Administrator
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Real Property
1.00
1.00
1.00
1.00
1.00
0.00
Payroll Analyst
2.00
2.00
2.00
2.00
2.00
0.00
Real Property Analyst
0.00
0.00
0.00
0.00
0.00
0.00
Real Property Agent
0.00
0.00
0.00
0.00
0.00
0.00
TOTAL CITY MANAGER Ad mini st rat i ve S e r vi ce s Depar t ment Accounting Specialist (9)
Operating Budget FY 2011
City of Palo Alto
283
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Senior Accountant
4.00
3.00
3.00
3.00
3.00
0.00
Senior Business Analyst (12)
0.20
0.20
0.20
0.20
0.00
(0.20)
Senior Financial Analyst (4), (5)
7.91
6.91
6.91
6.91
5.81
(1.10)
Senior Buyer
0.00
0.00
0.00
0.00
0.00
0.00
Staff Accountant
3.00
2.00
2.00
2.00
2.00
0.00
Staff Secretary
0.00
0.00
0.00
0.00
0.00
0.00
Storekeeper
1.00
0.00
0.00
0.00
0.00
0.00
Storekeeper - Lead
1.00
1.00
1.00
1.00
1.00
0.00
Warehouse Supervisor (6)
1.00
1.00
1.00
1.00
0.50
(0.50)
48.95
41.95
41.95
41.95
37.49
(4.46)
Administrative Assistant
1.00
1.00
1.00
1.00
1.00
0.00
Administrative Associate I (9)
2.50
2.00
2.00
2.00
0.00
(2.00)
Administrative Associate III
0.00
0.75
0.75
0.75
0.75
0.00
Administrator Special Events
0.00
0.00
0.00
0.00
0.00
0.00
Arts and Culture Division Manager
1.00
1.00
1.00
1.00
1.00
0.00
Building Serviceperson (9)
4.00
4.00
4.00
4.00
2.00
(2.00)
Building Serviceperson - Lead
2.00
2.00
2.00
2.00
2.00
0.00
Coordinator, Child Care (9)
1.00
1.00
1.00
1.00
0.00
(1.00)
Coordinator, Recreation Programs (9)
5.00
5.00
5.00
5.00
4.50
(0.50)
Cubberley Center and Human Svc Div Mgr (9)
1.00
1.00
1.00
1.00
0.00
(1.00)
Director, Community Services
1.00
1.00
1.00
1.00
1.00
0.00
Division Manager, Golf & Parks
0.00
0.00
0.00
0.00
0.00
0.00
Division Manager, Recreation & Golf
1.00
1.00
1.00
1.00
1.00
0.00
Division Manager, Rec and Youth Sciences
0.00
0.00
0.00
0.00
0.00
0.00
Golf Course Equipment Mechanic (9)
1.00
1.00
1.00
1.00
0.00
(1.00)
Golf Course Maintenance Person (9)
5.00
4.00
4.00
4.00
0.00
(4.00)
Inspector, Field Services
2.00
2.00
2.00
2.00
2.00
0.00
Jr. Museum & Zoo Lead Educator
0.00
2.25
2.25
2.25
2.25
0.00
Jr. Museum & Zoo Lead Instructor
0.00
0.00
0.00
0.00
0.00
0.00
Management Assistant
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Arts
2.00
2.00
2.00
2.00
2.00
0.00
TOTAL ADMINISTRATIVE SERVICES Co mmunity S e r v ices Depar tment
284
City of Palo Alto
Operating Budget FY 2011
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Open Space and Parks Division Manager
1.00
1.00
1.00
1.00
1.00
0.00
Park Maintenance Lead
1.00
1.00
1.00
1.00
1.00
0.00
11.00
11.00
11.00
11.00
6.00
(5.00)
Park Ranger
5.00
5.00
5.00
5.00
5.00
0.00
Parks and Open Space Assistant
0.00
0.00
0.00
0.00
0.00
0.00
Parks Crew - Lead (9)
3.00
3.00
3.00
3.00
2.00
(1.00)
Producer Arts/Science Programs (9)
12.50
13.00
13.00
13.00
12.00
(1.00)
Program Assistant I (9)
12.00
7.75
7.75
7.75
6.75
(1.00)
Program Assistant II
3.00
3.00
3.00
3.00
3.00
0.00
Senior Administrator
1.00
1.00
1.00
1.00
1.00
0.00
Senior Ranger
1.00
0.00
0.00
0.00
0.00
0.00
Senior Supervisor, Recreation Program (14)
0.00
0.00
0.00
0.00
2.00
2.00
Sprinkler System Repairer (9)
5.00
5.00
5.00
5.00
4.00
(1.00)
Superintendent, Golf Course
1.00
1.00
1.00
1.00
1.00
0.00
Superintendent, Parks
1.00
1.00
1.00
1.00
1.00
0.00
Supervisor, Junior Museum
1.00
1.00
1.00
1.00
1.00
0.00
Supervisor, Open Space
1.00
2.00
2.00
2.00
2.00
0.00
Supervisor, Parks
1.00
1.00
1.00
1.00
1.00
0.00
Supervisor, Recreation Program (14)
4.00
4.00
4.00
4.00
2.00
(2.00)
Theater Specialist
1.00
1.00
1.00
1.00
1.00
0.00
Volunteer Coordinator
0.50
0.50
0.50
0.50
0.50
0.00
96.50
94.25
94.25
94.25
73.75
(20.50)
Administrative Assistant (9)
1.00
1.00
1.00
1.00
0.00
(1.00)
Administrative Associate II
4.00
4.00
4.00
4.00
4.00
0.00
Battalion Chief
3.00
3.00
3.00
3.00
3.00
0.00
Deputy Fire Chief/Fire Marshal
0.84
0.84
0.84
0.84
0.84
0.00
Deputy Fire Chief EMT
2.00
2.00
2.00
2.00
2.00
0.00
Deputy Fire Chief OPS/Support
0.00
0.00
0.00
0.00
0.00
0.00
EMS Chief
1.00
0.00
0.00
0.00
0.00
0.00
EMS Coordinator
1.00
1.00
1.00
1.00
1.00
0.00
EMT Basic
3.00
0.00
0.00
0.00
0.00
0.00
Park Maintenance Person (9)
TOTAL COMMUNITY SERVICES Fi re
Operating Budget FY 2011
City of Palo Alto
285
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Fire Apparatus Operator
30.00
30.00
30.00
30.00
30.00
0.00
Fire Captain
27.00
27.00
27.00
27.00
27.00
0.00
1.00
1.00
1.00
1.00
1.00
0.00
45.00
45.00
45.00
45.00
45.00
0.00
Fire Inspector
3.00
3.00
3.00
3.00
3.00
0.00
Hazardous Materials Fire Apparatus Operator
0.00
0.00
0.00
0.00
0.00
0.00
Hazardous Materials Fire Captain
0.00
0.00
0.00
0.00
0.00
0.00
Hazardous Materials Fire Fighter
0.00
0.00
0.00
0.00
0.00
0.00
Hazardous Materials Inspector
1.90
1.90
1.90
1.90
1.90
0.00
Hazardous Materials Specialist (9)
0.95
0.95
0.95
0.95
0.00
(0.95)
OES Coordinator
1.00
1.00
1.00
1.00
1.00
0.00
Paramedic Captain
0.00
0.00
0.00
0.00
0.00
0.00
Paramedic Fire Fighter
0.00
0.00
0.00
0.00
0.00
0.00
Paramedic Inspector
0.00
0.00
0.00
0.00
0.00
0.00
Paramedic Operator
0.00
0.00
0.00
0.00
0.00
0.00
Training Captain
1.00
1.00
1.00
1.00
1.00
0.00
126.69
122.69
122.69
122.69
120.74
(1.95)
Administrative Assistant
1.00
1.00
1.00
1.00
1.00
0.00
Administrator, Human Resources
5.00
5.00
5.00
5.00
5.00
0.00
Assistant Director Human Resources
1.00
1.00
1.00
1.00
1.00
0.00
Director, Human Resources
1.00
1.00
1.00
1.00
1.00
0.00
Human Resources Assistant - Conf
4.00
5.00
5.00
5.00
5.00
0.00
Human Resources Representative
2.00
2.00
2.00
2.00
2.00
0.00
Manager, Employee Relations
1.00
0.00
0.00
0.00
0.00
0.00
Manager, Human Resources & Development
0.00
0.00
0.00
0.00
0.00
0.00
Manager, Risk and Benefits
0.00
0.00
0.00
0.00
0.00
0.00
Senior Administrator
1.00
1.00
1.00
1.00
1.00
0.00
16.00
16.00
16.00
16.00
16.00
0.00
1.00
1.00
1.00
1.00
1.00
0.00
Fire Chief Fire Fighter
TOTAL FIRE Hu man R e sou rce s Dep ar t ment
TOTAL HUMAN RESOURCES L i b ra r y D e p a r t m e nt Administrative Assistant
286
City of Palo Alto
Operating Budget FY 2011
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Assistant Director, Library Services
1.00
1.00
1.00
1.00
1.00
0.00
Business Analyst
0.00
1.00
1.00
1.00
1.00
0.00
Coordinator, Library Circulation
0.00
0.00
0.00
0.00
0.00
0.00
Coordinator, Library Programs
3.00
1.00
1.00
1.00
1.00
0.00
Director, Libraries
1.00
1.00
1.00
1.00
1.00
0.00
Division Head, Library Services
1.00
1.00
1.00
1.00
1.00
0.00
Librarian
5.00
5.00
5.00
5.00
5.00
0.00
Library Assistant (9)
5.50
5.50
5.50
5.50
5.00
(0.50)
Library Associate (9)
4.00
4.00
4.00
4.00
3.00
(1.00)
Library Specialist
8.00
8.00
8.00
8.00
8.00
0.00
Manager, Main Library Services
0.00
0.00
0.00
0.00
0.00
0.00
Management Assistant
1.00
1.00
1.00
1.00
1.00
0.00
Senior Librarian (9)
9.25
8.75
8.75
8.75
7.75
(1.00)
Supervisor, Librarian
4.00
4.00
4.00
4.00
4.00
0.00
43.75
42.25
42.25
42.25
39.75
(2.50)
Administrative Assistant
1.00
1.00
1.00
1.00
1.00
0.00
Administrative Associate I (9)
2.00
2.00
2.00
2.00
1.00
(1.00)
Administrative Associate II
4.80
3.80
3.80
3.80
3.80
0.00
Administrative Associate III
1.00
1.00
1.00
1.00
1.00
0.00
Administrator, Planning & Comm Envir
1.00
1.00
1.00
1.00
1.00
0.00
Arborist
1.00
1.00
1.00
1.00
1.00
0.00
Assistant Building Official
1.00
1.00
1.00
1.00
1.00
0.00
Assistant Director, Planning & Comm Envir
1.00
0.00
0.00
0.00
0.00
0.00
Assistant Engineer
0.00
0.00
0.00
0.00
0.00
0.00
Assistant to City Manager (7)
0.00
0.00
0.00
0.00
0.05
0.05
Associate Engineer
1.00
1.00
1.00
1.00
1.00
0.00
Building Inspector
4.00
4.00
4.00
4.00
4.00
0.00
Building Inspector Specialist (9)
3.00
2.00
2.00
2.00
1.00
(1.00)
Building/Planning Technician (9)
3.00
3.00
3.00
3.00
2.00
(1.00)
Chief Building Official
1.00
1.00
1.00
1.00
1.00
0.00
Chief Planning and Transportation Official
1.00
1.00
1.00
1.00
1.00
0.00
TOTAL LIBRARY DEPARTMENT P l a n n i n g a n d Com m u n i t y E nviro n m ent De pa r t me nt
Operating Budget FY 2011
City of Palo Alto
287
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Chief Transportation Officer
0.00
0.00
0.00
0.00
0.00
0.00
Chief Transportation Official (2)
0.00
0.00
0.00
0.00
1.00
1.00
City Traffic Engineer
0.00
0.00
0.00
0.00
0.00
0.00
Code Enforcement Officer (9)
2.00
2.00
2.00
2.00
1.00
(1.00)
Coordinator, Transp Sys Mgmt
0.50
0.50
0.50
0.50
0.50
0.00
Deputy City Manager
0.00
0.50
0.50
0.50
0.50
0.00
Director, Planning and Comm Envir
1.00
1.00
1.00
1.00
1.00
0.00
Engineer
1.00
1.00
1.00
1.00
1.00
0.00
Engineering Technician II
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Economic Resources
0.00
0.00
0.00
0.00
0.00
0.00
Manager, Economic Devlpmt & Redevlpmt
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Planning
2.00
2.00
2.00
2.00
2.00
0.00
Managing Arborist
0.00
0.00
0.00
0.00
0.00
0.00
Permit Specialist
1.00
0.00
0.00
0.00
0.00
0.00
Planner (8)
6.00
6.05
6.05
6.05
5.75
(0.30)
Plan Checking Engineer
3.00
2.00
2.00
2.00
2.00
0.00
Project Engineer
1.00
1.00
1.00
1.00
1.00
0.00
Senior Planner (9)
6.00
6.00
6.00
6.00
5.00
(1.00)
Supervisor, Building Inspection
1.00
1.00
1.00
1.00
1.00
0.00
Transportation Manager (2)
1.00
1.00
1.00
1.00
0.00
(1.00)
Transportation Project Manager
0.00
0.00
0.00
0.00
0.00
0.00
53.30
48.85
48.85
48.85
43.60
(5.25)
Administrative Assistant
1.00
1.00
1.00
1.00
1.00
0.00
Administrative Associate II
3.00
3.00
3.00
3.00
3.00
0.00
Animal Attendant
0.00
0.00
0.00
0.00
0.00
0.00
Animal Control Officer
4.50
4.50
4.50
4.50
4.50
0.00
Animal Services Specialist
1.00
1.00
1.00
1.00
1.00
0.00
Animal Services Specialist II
1.00
1.00
1.00
1.00
1.00
0.00
Assistant Chief of Police
1.00
1.00
1.00
1.00
1.00
0.00
Business Analyst
1.00
1.00
1.00
1.00
1.00
0.00
Chief Communications Technician
0.00
0.00
0.00
0.00
0.00
0.00
TOTAL PLANNING AND COMMUNITY ENVIRONMENT Po li ce De pa r tm e nt
288
City of Palo Alto
Operating Budget FY 2011
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Code Enforcement Officer (9)
1.50
1.50
1.50
1.50
1.00
(0.50)
Communication Technician
1.00
1.00
1.00
1.00
1.00
0.00
Community Service Officer
9.00
9.00
9.00
9.00
9.00
0.00
Community Service Officer - Lead
0.00
0.00
0.00
0.00
0.00
0.00
Coordinator, Police Technical Services
1.00
1.00
1.00
1.00
1.00
0.00
Court Liaison Officer
1.00
1.00
1.00
1.00
1.00
0.00
Crime Analyst (9)
1.00
2.00
2.00
2.00
1.00
(1.00)
Parking Enforcement Officer
0.00
0.00
0.00
0.00
0.00
0.00
Parking Enforcement Officer - Lead
0.00
0.00
0.00
0.00
0.00
0.00
19.00
19.00
19.00
19.00
18.00
(1.00)
Police Captain
2.00
2.00
2.00
2.00
2.00
0.00
Police Chief
1.00
1.00
1.00
1.00
1.00
0.00
Police Lieutenant
5.00
5.00
5.00
5.00
5.00
0.00
Police Officer (9)
51.00
50.00
50.00
50.00
45.00
(5.00)
Police Officer Training
0.00
0.00
0.00
0.00
0.00
0.00
Police Records Specialist I
0.00
0.00
0.00
0.00
0.00
0.00
Police Records Specialist II (9)
9.00
7.00
7.00
7.00
6.00
(1.00)
Police Records Specialist - Lead
1.00
1.00
1.00
1.00
1.00
0.00
14.00
14.00
14.00
14.00
13.00
(1.00)
Police Trainee
0.00
0.00
0.00
0.00
0.00
0.00
Program Assistant I
1.00
0.00
0.00
0.00
0.00
0.00
Program Assistant II
1.00
1.00
1.00
1.00
1.00
0.00
Program Coordinator (9)
0.00
1.00
1.00
1.00
0.00
(1.00)
Property and Evidence Technician
2.00
2.00
2.00
2.00
2.00
0.00
Public Safety Dispatcher I
2.00
2.00
2.00
2.00
2.00
0.00
Public Safety Dispatcher II
14.00
14.00
14.00
14.00
14.00
0.00
Public Safety Dispatcher - Lead
5.00
5.00
5.00
5.00
5.00
0.00
Safety Officer
0.00
0.00
0.00
0.00
0.00
0.00
Senior Administrator
1.00
1.00
1.00
1.00
1.00
0.00
Superintendent, Animal Services
1.00
1.00
1.00
1.00
1.00
0.00
Supervisor, Animal Services
1.00
1.00
1.00
1.00
1.00
0.00
Supervisor, Police Services
3.00
3.00
3.00
3.00
3.00
0.00
Veterinarian
1.00
1.00
1.00
1.00
1.00
0.00
Veterinarian Technician
2.00
2.00
2.00
2.00
2.00
0.00
Police Agent (9)
Police Sergeant (9)
Operating Budget FY 2011
City of Palo Alto
289
Table of Organization
FY 2009 Actuals Volunteer Coordinator
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
1.00
0.50
0.50
0.50
0.50
0.00
164.00
161.50
161.50
161.50
151.00
(10.50)
Accounting Specialist
0.00
0.04
0.04
0.04
0.04
0.00
Administrative Assistant
1.00
1.00
1.00
1.00
1.00
0.00
Administrative Associate I
3.50
1.70
1.70
1.70
1.70
0.00
Administrative Associate II
2.00
1.80
1.80
1.80
1.80
0.00
Administrative Associate III
1.00
0.00
0.00
0.00
0.00
0.00
Administrator, Public Works
1.00
0.00
0.00
0.00
0.00
0.00
Assistant Director Public Works
1.10
1.10
1.10
1.10
1.10
0.00
Associate Engineer
0.10
0.10
0.10
0.10
0.10
0.00
Building Serviceperson (9)
4.00
4.00
4.00
4.00
1.00
(3.00)
Building Serviceperson - Lead
2.00
2.00
2.00
2.00
2.00
0.00
Coordinator, Public Works Projects
0.00
0.00
0.00
0.00
0.00
0.00
Deputy Director, Public Works Operations
0.00
0.00
0.00
0.00
0.00
0.00
Director, Public Works/City Engineer
1.00
1.00
1.00
1.00
1.00
0.00
Electrician
1.00
1.00
1.00
1.00
1.00
0.00
Engineer
1.20
0.30
0.30
0.30
0.30
0.00
Engineering Technician III
4.20
3.30
3.30
3.30
3.30
0.00
Equipment Operator
3.46
3.46
3.46
3.46
3.46
0.00
Equipment Parts Technician
0.00
0.00
0.00
0.00
0.00
0.00
Facilities Assistant
0.00
0.00
0.00
0.00
0.00
0.00
Facilities Carpenter
1.00
1.00
1.00
1.00
1.00
0.00
Facilities Electrician
0.00
0.00
0.00
0.00
0.00
0.00
Facilities Maintenance - Lead
2.00
2.00
2.00
2.00
2.00
0.00
Facilities Mechanic
6.00
6.00
6.00
6.00
6.00
0.00
Facilities Painter
2.00
2.00
2.00
2.00
2.00
0.00
Heavy Equipment Operator
1.90
1.90
1.90
1.90
1.90
0.00
Heavy Equipment Operator - Lead
0.85
0.85
0.85
0.85
0.85
0.00
Inspector, Field Services
1.00
1.00
1.00
1.00
1.00
0.00
Instrument Electrician
0.00
0.00
0.00
0.00
0.00
0.00
Manager, Facilities Maintenance
0.80
0.80
0.80
0.80
0.80
0.00
TOTAL POLICE Publi c Wor ks De p ar t m ent
290
City of Palo Alto
Operating Budget FY 2011
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Manager, Maintenance Operations
0.12
0.12
0.12
0.12
0.12
0.00
Managing Arborist
1.00
1.00
1.00
1.00
1.00
0.00
Project Engineer
0.20
0.20
0.20
0.20
0.20
0.00
Project Manager
1.75
1.75
1.75
1.75
1.75
0.00
Senior Accountant
0.00
0.02
0.02
0.02
0.02
0.00
Senior Administrator
0.90
0.90
0.90
0.90
0.90
0.00
Senior Engineer (13)
0.30
0.30
0.30
0.30
0.20
(0.10)
Senior Financial Analyst
0.00
0.16
0.16
0.16
0.16
0.00
Senior Project Manager
1.00
1.00
1.00
1.00
1.00
0.00
Staff Accountant
0.00
0.02
0.02
0.02
0.02
0.00
Superintendent, Public Works Operations
0.60
0.60
0.60
0.60
0.60
0.00
Supervising Project Engineer
1.00
1.00
1.00
1.00
1.00
0.00
Supervisor, Building Services
0.00
0.00
0.00
0.00
0.00
0.00
Supervisor, Facilities Management
1.95
1.95
1.95
1.95
1.95
0.00
Supervisor, Inspec/Surveying, Public Works
0.80
0.80
0.80
0.80
0.80
0.00
Surveying Assistant
0.78
0.78
0.78
0.78
0.78
0.00
Surveyor, Public Works
0.78
0.78
0.78
0.78
0.78
0.00
Traffic Control Maintainer - Lead
1.00
1.00
1.00
1.00
1.00
0.00
Traffic Control Maintenance I
1.94
1.94
1.94
1.94
1.94
0.00
Traffic Control Maintenance II
3.00
3.00
3.00
3.00
3.00
0.00
Tree Maintenance Assistant
0.00
0.00
0.00
0.00
0.00
0.00
Tree Maintenance Person
2.00
2.00
0.00
0.00
0.00
0.00
Tree Maintenance Specialist
0.00
0.00
2.00
2.00
2.00
0.00
Tree Trimmer/Line Clearer (9)
7.00
7.00
7.00
7.00
3.00
(4.00)
Tree Trimmer/Line Clearer Assistant
0.00
0.00
0.00
0.00
0.00
0.00
Tree Trimmer/Line Clearer - Lead
1.00
1.00
1.00
1.00
1.00
0.00
69.23
63.67
63.67
63.67
56.57
(7.10)
651.27
622.51
622.51
622.51
568.25
(54.26)
TOTAL PUBLIC WORKS GENERAL FUND AUTHORIZED POSITIONS Fo o tn o te s: 1
Add 0.50 FTE Administrator
2
Drop 1.0 FTE Transportation Manager and add 1.0 FTE Chief Transportation Official
Operating Budget FY 2011
City of Palo Alto
291
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
3
Reallocate 0.60 FTE Contracts Administrator to Other Funds - Capital
4
Reallocate 0.50 FTE Senior Financial Analyst to Utilities
5
Reallocate 0.60 FTE Senior Financial Analyst to Other Funds - Capital
6
Reallocate 0.50 FTE Warehouse Supervisor to Utilities
7
Reallocate 0.05 FTE Assistant to City Manager to Planning and Community Environment, 0.10 FTE to Public Works - Enterprise and 0.35 FTE to Utilities
8
Reallocate 0.30 FTE Planner to Utilities
9
Elimination of various positions due to budget constraints
10
Reallocate 1.0 FTE Senior Deputy City Attorney to Utilities
11
Transfer 0.10 FTE Business Analyst to Technology Fund
12
Transfer 0.20 FTE Senior Business Analyst to Technology Fund
13
Transfer 0.10 FTE Senior Engineer to Public Works - Enterprise Fund
14
Reclassification of 2.0 FTE Supervisor, Recreation Programs to Senior Supervisor, Recreation Programs
ENTERPRISE FUNDS Publi c Wor ks De p ar t m ent Refuse, Storm Drai nage and Wa stewater Treatment Accounting Specialist
0.00
0.46
0.46
0.46
0.46
0.00
Administrator, Refuse
1.00
1.00
1.00
1.00
1.00
0.00
Assistant Director, Public Works
0.75
0.75
0.75
0.75
0.75
0.00
Assistant to City Manager (13)
0.00
0.00
0.00
0.00
0.10
0.10
Administrative Associate II
3.00
3.20
3.20
3.20
3.20
0.00
Asst Manager, Water Quality Control Plant
1.00
1.00
1.00
1.00
1.00
0.00
Associate Engineer
3.30
3.30
3.30
3.30
3.30
0.00
Associate Planner
1.00
1.00
1.00
1.00
1.00
0.00
Business Analyst
1.13
1.13
1.13
1.13
1.13
0.00
Buyer
1.00
1.00
1.00
1.00
1.00
0.00
Chemist
3.00
3.00
3.00
3.00
3.00
0.00
Coordinator Environmental Protection
0.00
0.00
0.00
0.00
0.00
0.00
Coordinator Recycling
0.00
0.00
0.00
0.00
0.00
0.00
Coordinator Zero Waste
2.00
2.00
2.00
2.00
2.00
0.00
Deputy Fire Chief/Fire Marshal
0.08
0.08
0.08
0.08
0.08
0.00
Electrician
3.00
3.00
3.00
3.00
3.00
0.00
292
City of Palo Alto
Operating Budget FY 2011
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Electrician - Lead
2.00
2.00
2.00
2.00
2.00
0.00
Engineer
1.10
1.00
1.00
1.00
1.00
0.00
Engineering Technician I
1.00
0.00
0.00
0.00
0.00
0.00
Engineering Technician III (19)
1.50
1.40
1.40
1.40
1.30
(0.10)
Environmental Specialist
2.00
2.00
2.00
2.00
2.00
0.00
Equipment Operator
0.54
0.54
0.54
0.54
0.54
0.00
Executive Assistant
2.00
2.00
2.00
2.00
2.00
0.00
Hazardous Materials Inspector
0.04
0.04
0.04
0.04
0.04
0.00
Hazardous Materials Specialist (19)
0.02
0.02
0.02
0.02
0.00
(0.02)
Heavy Equipment Operator
5.90
5.90
5.90
5.90
5.90
0.00
Heavy Equipment Operator - Lead
3.15
3.15
3.15
3.15
3.15
0.00
Industrial Waste Assistant Inspector
0.00
1.00
1.00
1.00
1.00
0.00
Industrial Waste Inspector
1.00
1.00
1.00
1.00
1.00
0.00
Industrial Waste Investigator
2.00
2.00
2.00
2.00
2.00
0.00
Laboratory Tech, Water Quality Control Plant
2.50
2.50
2.50
2.50
2.50
0.00
Landfill Technician
1.00
1.00
1.00
1.00
1.00
0.00
Maintenance Mechanic
7.00
7.00
7.00
7.00
7.00
0.00
Manager, Environmental Compliance
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Environmental Control Program
3.00
3.00
3.00
3.00
3.00
0.00
Manager, Laboratory Services
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Maintenance Operations
1.38
1.38
1.38
1.38
1.38
0.00
Manager, Solid Waste
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Water Quality Control Plant
1.00
1.00
1.00
1.00
1.00
0.00
Program Assistant I
2.00
2.00
2.00
2.00
2.00
0.00
Program Assistant II
1.00
1.00
1.00
1.00
1.00
0.00
Program Analyst
0.00
0.00
0.00
0.00
0.00
0.00
Project Engineer
2.00
2.00
2.00
2.00
2.00
0.00
Refuse Disposal Attendant
4.00
4.00
4.00
4.00
4.00
0.00
Senior Accountant
0.00
0.23
0.23
0.23
0.23
0.00
Senior Administrator
0.10
0.10
0.10
0.10
0.10
0.00
Senior Chemist
1.00
1.00
1.00
1.00
1.00
0.00
Senior Engineer (20)
2.45
2.45
2.45
2.45
2.75
0.30
Senior Financial Analyst
0.00
0.16
0.16
0.16
0.16
0.00
Senior Industrial Waste Inspector
0.00
0.00
0.00
0.00
0.00
0.00
Operating Budget FY 2011
City of Palo Alto
293
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Senior Mechanic, Water Quality Control
1.00
1.00
1.00
1.00
1.00
0.00
Senior Operator, Water Quality Control
6.00
6.00
6.00
6.00
6.00
0.00
Senior Technologist
0.13
0.13
0.13
0.13
0.13
0.00
Staff Accountant
0.00
0.23
0.23
0.23
0.23
0.00
Storekeeper
1.00
1.00
1.00
1.00
1.00
0.00
Street Maintenance Assistant
2.00
2.00
2.00
2.00
2.00
0.00
Street Sweeper Operator
7.00
7.00
7.00
7.00
7.00
0.00
Street Sweeper Operator - Lead
0.00
0.00
0.00
0.00
0.00
0.00
Superintendent, Public Works Operations
0.20
0.20
0.20
0.20
0.20
0.00
Supervisor, Public Works
1.00
1.00
1.00
1.00
1.00
0.00
Supervisor, Water Quality Control Operations
5.00
5.00
5.00
5.00
5.00
0.00
Surveying Assistant
0.11
0.11
0.11
0.11
0.11
0.00
Surveyor, Public Works
0.11
0.11
0.11
0.11
0.11
0.00
Technologist
0.00
0.00
0.00
0.00
0.00
0.00
Traffic Control Maintenance I
0.06
0.06
0.06
0.06
0.06
0.00
Truck Driver
0.00
0.00
0.00
0.00
0.00
0.00
Water Quality Control Plant Operator I
0.00
0.00
0.00
0.00
0.00
0.00
Water Quality Control Plant Operator II
16.00
16.00
16.00
16.00
16.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
113.55
114.63
114.63
114.63
114.91
0.28
Account Representatives
3.00
3.00
3.00
3.00
3.00
0.00
Accounting Specialist
1.00
2.50
2.50
2.50
2.50
0.00
Administrative Assistant
1.00
1.00
1.00
1.00
1.00
0.00
Administrative Associate I
2.00
2.00
2.00
2.00
2.00
0.00
Administrative Associate II
7.00
7.00
7.00
7.00
7.00
0.00
Assistant Power Engineer
0.00
0.00
0.00
0.00
0.00
0.00
Assistant Resource Planner
0.00
0.00
0.00
0.00
0.00
0.00
Associate Power Engineer
0.00
0.00
0.00
0.00
0.00
0.00
Associate Resource Planner (7)
1.00
1.00
1.00
1.00
0.00
(1.00)
Assistant Director Customer Support Services
1.00
1.00
1.00
1.00
1.00
0.00
Water Quality Control Plant Operator Trainee
TOTAL PUBLIC WORKS - ENTERPRISE Utilities D e par t ment Ad mini strati o n, E l ec t ric, G as, Wa stewater Co llec tion and Water
294
City of Palo Alto
Operating Budget FY 2011
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Assistant Director Utilities/Admin Svc
0.00
0.00
0.00
0.00
0.00
0.00
Assistant Director Utilities/Engineering
1.00
1.00
1.00
1.00
1.00
0.00
Assistant Director Utilities/Operations
1.00
1.00
1.00
1.00
1.00
0.00
Assistant Director Utilities/Res Mgmt
1.00
1.00
1.00
1.00
1.00
0.00
Assistant to City Manager (13)
0.00
0.00
0.00
0.00
0.35
0.35
Business Analyst
2.87
2.87
2.87
2.87
2.87
0.00
Cathodic Technician
1.00
1.00
1.00
1.00
1.00
0.00
Cathodic Protection Technician/Assistant
0.00
0.00
1.00
0.00
1.00
0.00
Cement Finisher
1.00
1.00
1.00
1.00
1.00
0.00
Chief Electric Underground Inspector
0.00
0.00
0.00
0.00
0.00
0.00
Chief Inspector Water, Gas, Wastewater
0.00
0.00
0.00
0.00
0.00
0.00
Compliance Manager (1)
0.00
0.00
0.00
0.00
1.00
1.00
Contracts Administrator
1.00
1.00
1.00
1.00
1.00
0.00
Coordinator, Utility Safety & Security
1.00
1.00
1.00
1.00
1.00
0.00
Coordinator, Utility Projects
4.00
4.00
4.00
4.00
4.00
0.00
Customer Service Representative (2)
5.00
5.00
5.00
5.00
6.00
1.00
Customer Service Specialist (3)
2.00
2.00
2.00
2.00
3.00
1.00
Customer Service Specialist - Lead
1.00
2.00
2.00
2.00
2.00
0.00
Deputy Director, Administrative Services
0.20
0.20
0.20
0.20
0.20
0.00
Deputy Fire Chief/Fire Marshal
0.08
0.08
0.08
0.08
0.08
0.00
Director, Administrative Services
0.15
0.15
0.15
0.15
0.15
0.00
Director, Utilities
1.00
1.00
1.00
1.00
1.00
0.00
Electric Project Engineer (10)
1.00
1.00
1.00
1.00
2.00
1.00
Electric Underground Inspector
2.00
2.00
2.00
2.00
2.00
0.00
Electric Underground Inspector Lead
1.00
1.00
1.00
1.00
1.00
0.00
Electrical Assistant I
5.00
5.00
5.00
5.00
5.00
0.00
14.00
14.00
14.00
14.00
14.00
0.00
Electrician - Apprentice
0.00
0.00
0.00
0.00
0.00
0.00
Electrician - Lead
6.00
6.00
6.00
6.00
6.00
0.00
Engineer
4.00
4.00
4.00
4.00
4.00
0.00
Engineering Manager, Electric
1.00
1.00
1.00
1.00
1.00
0.00
Engineering Mgr, Water, Gas, Wastewater
1.00
1.00
1.00
1.00
1.00
0.00
Engineering Technician III
3.00
3.00
3.00
3.00
3.00
0.00
Equipment Operator
2.00
1.00
1.00
1.00
1.00
0.00
Electrician
Operating Budget FY 2011
City of Palo Alto
295
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Equipment Operator - Lead
0.00
0.00
0.00
0.00
0.00
0.00
Field Service Person Water, Gas, Wastewater
0.00
0.00
0.00
0.00
0.00
0.00
Gas System Technician (9)
2.00
0.00
1.00
1.00
2.00
1.00
Gas System Technician II
0.00
0.00
1.00
0.00
1.00
0.00
Hazardous Materials Inspector
0.06
0.06
0.06
0.06
0.06
0.00
Hazardous Materials Specialist (19)
0.03
0.03
0.03
0.03
0.00
(0.03)
10.00
10.00
10.00
10.00
9.00
(1.00)
Inspector, Field Services
4.00
4.00
4.00
4.00
4.00
0.00
Lineperson/Cable Splicer
11.00
11.00
11.00
11.00
11.00
0.00
Lineperson/Cable Splicer - Apprentice
0.00
0.00
0.00
0.00
0.00
0.00
Lineperson/Cable Splicer - Lead
4.00
4.00
4.00
4.00
4.00
0.00
Lineperson/Cable Splicer - Lead Trainee
0.00
0.00
0.00
0.00
0.00
0.00
Lineperson/Cable Splicer - Trainee
0.00
0.00
0.00
0.00
0.00
0.00
Maintenance Mechanic
1.00
1.00
1.00
1.00
1.00
0.00
Maintenance Mechanic - Welding
1.00
1.00
1.00
1.00
1.00
0.00
Manager Communications (4)
0.00
0.00
0.00
0.00
1.00
1.00
Manager Utilities Telecommunication
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Electric Operations
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Energy Risk
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Field and Customer Service
1.00
0.00
0.00
0.00
0.00
0.00
Mgr, Customer Svc and Meter Reading
0.00
1.00
1.00
1.00
1.00
0.00
Manager, Utilities Marketing Services
1.00
1.00
1.00
1.00
1.00
0.00
Mgr, Util Operations Water, Gas, Wastewater
1.00
1.00
1.00
1.00
1.00
0.00
Manager, Utilities Rates
0.00
0.00
0.00
0.00
0.00
0.00
Marketing Engineer
1.00
1.00
1.00
1.00
1.00
0.00
Meter Reader
6.00
6.00
6.00
6.00
6.00
0.00
Meter Reader - Lead
1.00
1.00
1.00
1.00
1.00
0.00
Meter Shops Lead (9)
0.00
1.00
1.00
1.00
0.00
(1.00)
Offset Equipment Operator (14)
0.00
0.00
0.00
0.00
0.48
0.48
Planner (15)
0.00
0.00
0.00
0.00
0.30
0.30
Power Engineer (12)
2.00
2.00
2.00
2.00
3.00
1.00
Program Assistant I
3.00
3.00
3.00
3.00
3.00
0.00
Project Engineer (10)
6.00
6.00
6.00
6.00
5.00
(1.00)
Project Manager
0.75
0.75
0.75
0.75
0.75
0.00
Heavy Equipment Operator (8)
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Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Resource Planner (7)
4.00
4.00
4.00
4.00
5.00
1.00
Restoration Lead
0.00
1.00
1.00
1.00
1.00
0.00
Senior Accountant
0.00
0.75
0.75
0.75
0.75
0.00
Senior Administrator
1.00
1.00
1.00
1.00
1.00
0.00
Senior Business Analyst (5)
1.00
1.00
1.00
1.00
2.00
1.00
Senior Deputy City Attorney (17)
0.00
0.00
0.00
0.00
1.00
1.00
Senior Electric Project Engineer
4.00
4.00
4.00
4.00
4.00
0.00
Senior Financial Analyst (16)
0.00
0.60
0.60
0.60
1.10
0.50
Senior Instrument Electrician
0.00
0.00
0.00
0.00
0.00
0.00
Senior Market Analyst
1.00
1.00
1.00
1.00
1.00
0.00
Senior Mechanic
1.00
1.00
1.00
1.00
1.00
0.00
Senior Project Engineer
4.00
4.00
4.00
4.00
4.00
0.00
Senior Resource Originator
1.00
1.00
1.00
1.00
1.00
0.00
Senior Resource Planner
6.00
6.00
6.00
6.00
6.00
0.00
Senior Technologist
0.87
0.87
0.87
0.87
0.87
0.00
Senior Utilities Field Services Representative
1.00
1.00
1.00
1.00
1.00
0.00
Senior Utility System Technician
0.00
0.00
0.00
0.00
0.00
0.00
Senior Water System Operator
2.00
2.00
2.00
2.00
2.00
0.00
Staff Accountant
0.00
0.75
0.75
0.75
0.75
0.00
Storekeeper
2.00
2.00
2.00
2.00
2.00
0.00
Supervising Electric Operations & Programs
0.00
0.00
0.00
0.00
0.00
0.00
Supervising Electric Project Engineer (11)
2.00
2.00
2.00
2.00
1.00
(1.00)
Supervising Project Engineer (11)
0.00
0.00
0.00
0.00
1.00
1.00
Supervisor Electric Systems
5.00
5.00
5.00
5.00
5.00
0.00
Supervisor, Utility Construction Inspector
0.00
0.00
0.00
0.00
0.00
0.00
Supervisor, Util Meter Readers & Field Service
0.00
0.00
0.00
0.00
0.00
0.00
Supervisor, Water, Gas, Wastewater
5.00
5.00
5.00
5.00
5.00
0.00
Supervisor, Water Transmission
1.00
1.00
1.00
1.00
1.00
0.00
System Operator Scheduler
0.00
0.00
0.00
0.00
0.00
0.00
Technologist
0.00
0.00
0.00
0.00
0.00
0.00
Tree Maintenance Person
1.00
0.00
0.00
1.00
0.00
0.00
Tree Maintenance Specialist
0.00
0.00
1.00
0.00
1.00
0.00
Utilities Accounting Technician
0.00
0.00
0.00
0.00
0.00
0.00
Utilities Credit/Collection Specialist
1.00
1.00
1.00
1.00
1.00
0.00
Operating Budget FY 2011
City of Palo Alto
297
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Utilities Engineer Estimator
5.00
5.00
5.00
5.00
5.00
0.00
Utilities Engineer Estimator - Lead (12)
1.00
1.00
1.00
1.00
0.00
(1.00)
Utilities Field Service Representative
7.00
6.00
5.00
6.00
5.00
0.00
11.00
11.00
11.00
11.00
13.00
2.00
Utilities Installer/Repairer Assistant
1.00
1.00
1.00
1.00
1.00
0.00
Utilities Installer/Repairer - Welding
3.00
3.00
3.00
3.00
3.00
0.00
Utilities Installer/Repairer - Lead
5.00
5.00
5.00
5.00
5.00
0.00
Utilities Installer/Repairer - Lead Welding
2.00
2.00
2.00
2.00
2.00
0.00
Utilities Key Account Representative
3.00
3.00
3.00
3.00
3.00
0.00
Utilities Locator
3.00
3.00
3.00
3.00
3.00
0.00
Utilities Rate Analyst
0.00
0.00
0.00
0.00
0.00
0.00
Utilities System Operator
5.00
5.00
5.00
5.00
5.00
0.00
Utility Compliance Technician
2.00
2.00
2.00
2.00
2.00
0.00
Utility Compliance Technician - Lead
1.00
1.00
1.00
1.00
1.00
0.00
Utility Market Analyst
0.00
0.00
0.00
0.00
0.00
0.00
Utility System Technician
0.00
0.00
0.00
0.00
0.00
0.00
Warehouse Supervisor (18)
0.00
0.00
0.00
0.00
0.50
0.50
Water Meter/Cross Connection Technician (8)
2.00
2.00
2.00
2.00
3.00
1.00
Water Meter Representative Assistant
0.00
0.00
0.00
0.00
0.00
0.00
Water Meter Repairer
0.00
0.00
0.00
0.00
0.00
0.00
Water System Operator I
0.00
0.00
0.00
0.00
0.00
0.00
Water System Operator II
5.00
5.00
4.00
5.00
4.00
0.00
TOTAL UTILITIES
238.01
239.61
241.61
241.61
251.71
10.10
TOTAL ENTERPRISE FUNDS POSITIONS
351.56
354.24
356.24
356.24
366.62
10.38
Utilities Installer/Repairer (6)
Fo o tn o te s: 1
Add 1.0 FTE Compliance Manager
2
Add 1.0 FTE Customer Service Representative
3
Add 1.0 FTE Customer Service Specialist
4
Add 1.0 FTE Manager Communications
5
Add 1.0 FTE Senior Business Analyst
6
Add 2.0 FTE Utility Installer/Repairer
7
Reclassification of 1.0 FTE Associate Resource Planner to Resource Planner
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Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
8
Drop 1.0 FTE Heavy Equipment Operator and add Water Meter/Cross Connection Technician
9
Drop 1.0 FTE Meter Shop Lead and add Gas Systems Technician
10
Drop 1.0 FTE Project Engineer and add Electric Project Engineer
11
Drop 1.0 FTE Supervising Electric Project Engineer and add Supervising Project Engineer
12
Drop 1.0 FTE Utilities Engineer Estimator Lead and add Power Engineer
13
Transfer 0.10 FTE Assistant to City Manager from City Manager Office - General Fund to Public Works - Enterprise and 0.35 FTE to Utilities
14
Transfer 0.48 FTE Offset Equipment Operator from Print & Mailing Services - Other Fund to Utilities
15
Transfer 0.30 FTE Planner from Planning and Community Environment - General Fund to Utilities
16
Transfer 0.50 FTE Senior Financial Analyst from Administrative Services - General Fund to Utilities
17
Transfer 1.0 FTE Senior Deputy City Attorney from City Attorney's Office - General Fund to Utilities
18
Transfer 0.50 FTE Warehouse Supervisor from Administrative Services - General Fund to Utilities
19
Elimination of various positions due to budget constraints
20
Transfer 0.20 FTE Senior Engineer from Other Funds - Capital and 0.10 from Public Works - General Fund to Public Works - Enterprise
OTHER FUNDS Printing and M a iling S e r vi ces Buyer
0.05
0.05
0.05
0.05
0.05
0.00
Mailing Services Specialist
1.00
1.00
1.00
1.00
1.00
0.00
Offset Equipment Operator (3)
1.00
1.00
1.00
1.00
0.52
(0.48)
Offset Equipment Operator - Lead (6)
1.00
1.00
1.00
1.00
0.00
(1.00)
Supervisor Reproduction and Mailing (6)
1.00
1.00
1.00
1.00
0.00
(1.00)
TOTAL PRINTING AND MAILING SERVICES
4.05
4.05
4.05
4.05
1.57
(2.48)
Administrative Assistant
0.07
0.07
0.07
0.07
0.07
0.00
Administrative Associate II
1.00
1.00
1.00
1.00
1.00
0.00
Administrative Associate III (6)
0.04
0.04
0.04
0.04
0.00
(0.04)
Administrator (1)
0.00
0.00
0.00
0.00
0.50
0.50
Assistant Director, Administrative Services
0.40
0.40
0.40
0.40
0.40
0.00
Business Analyst (7)
0.90
0.90
0.90
0.90
1.00
0.10
Chief Information Officer
1.00
1.00
1.00
1.00
1.00
0.00
Te c h n o l o g y
Operating Budget FY 2011
City of Palo Alto
299
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Desktop Technician
5.00
5.00
5.00
5.00
5.00
0.00
Director, Administrative Services
0.35
0.35
0.35
0.35
0.35
0.00
Manager, Information Technology
3.00
3.00
3.00
3.00
3.00
0.00
Senior Business Analyst (8)
1.80
1.80
1.80
1.80
2.00
0.20
13.00
13.00
13.00
13.00
13.00
0.00
Senior Financial Analyst
0.09
0.09
0.09
0.09
0.09
0.00
Technologist (6)
4.00
4.00
4.00
4.00
3.00
(1.00)
30.65
30.65
30.65
30.65
30.41
(0.24)
Administrative Associate III
1.00
1.00
1.00
1.00
1.00
0.00
Assistant Fleet Manager
1.00
1.00
1.00
1.00
1.00
0.00
Equipment Maintenance Service Person
2.00
2.00
2.00
2.00
2.00
0.00
Fleet Manager
1.00
1.00
1.00
1.00
1.00
0.00
Fleet Services Coordinator
2.00
2.00
2.00
2.00
2.00
0.00
Mobile Service Technician
1.00
1.00
1.00
1.00
1.00
0.00
Motor Equipment Mechanic I
0.00
0.00
0.00
0.00
0.00
0.00
Motor Equipment Mechanic II
7.00
7.00
7.00
7.00
7.00
0.00
Motor Equipment Mechanic - Lead
0.00
0.00
0.00
0.00
0.00
0.00
Project Engineer
0.10
0.00
0.00
0.00
0.00
0.00
Senior Engineer
0.10
0.00
0.00
0.00
0.00
0.00
Senior Financial Analyst
0.00
0.08
0.08
0.08
0.08
0.00
Senior Fleet Services Coordinator
1.00
1.00
1.00
1.00
1.00
0.00
16.20
16.08
16.08
16.08
16.08
0.00
Accounting Specialist (2)
0.00
0.00
0.00
0.00
0.50
0.50
Administrative Associate II
0.20
0.20
0.20
0.20
0.20
0.00
CDBG Coordinator
0.00
0.00
0.00
0.00
0.00
0.00
Planner
1.00
0.95
0.95
0.95
0.95
0.00
TOTAL SPECIAL REVENUE
1.20
1.15
1.15
1.15
1.65
0.50
Senior Technologist
TOTAL TECHNOLOGY Eq ui pm e nt M a na g e m e nt
TOTAL EQUIPMENT MANAGEMENT S p e c i a l R even u e
Ca pit a l
300
City of Palo Alto
Operating Budget FY 2011
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
Administrative Associate I
0.00
1.80
1.80
1.80
1.80
0.00
Administrative Associate III (6)
0.00
1.00
1.00
1.00
0.00
(1.00)
Administrator, Public Works
0.00
1.00
1.00
1.00
1.00
0.00
Assistant Director, Public Works
0.15
0.15
0.15
0.15
0.15
0.00
Associate Engineer
0.60
0.60
0.60
0.60
0.60
0.00
Cement Finisher
3.00
3.00
3.00
3.00
3.00
0.00
Cement Finisher - Lead
1.00
1.00
1.00
1.00
1.00
0.00
Contracts Administrator (4)
0.00
0.00
0.00
0.00
0.60
0.60
Engineer
2.70
2.70
2.70
2.70
2.70
0.00
Engineering Technician III (6)
2.30
2.30
2.30
2.30
1.40
(0.90)
Heavy Equipment Operator
0.20
0.20
0.20
0.20
0.20
0.00
Manager, Facilities Maintenance
0.20
0.20
0.20
0.20
0.20
0.00
Manager, Maintenance Operations
0.50
0.50
0.50
0.50
0.50
0.00
Landscape Architect Park Planner
1.00
1.00
1.00
1.00
1.00
0.00
Program Assistant I
1.00
1.00
1.00
1.00
1.00
0.00
Project Engineer
3.70
3.80
3.80
3.80
3.80
0.00
Project Manager (6)
1.50
1.50
1.50
1.50
0.50
(1.00)
Senior Engineer (9)
2.15
2.25
2.25
2.25
2.05
(0.20)
Senior Financial Analyst (5)
0.00
0.00
0.00
0.00
0.60
0.60
Superintendent, Public Works Operations
0.20
0.20
0.20
0.20
0.20
0.00
Supervisor, Facilities Management
0.05
0.05
0.05
0.05
0.05
0.00
Supervisor, Inspection/Surv Public Works
0.20
0.20
0.20
0.20
0.20
0.00
Surveying Assistant
0.11
0.11
0.11
0.11
0.11
0.00
Surveyor, Public Works
0.11
0.11
0.11
0.11
0.11
0.00
TOTAL CAPITAL
20.67
24.67
24.67
24.67
22.77
(1.90)
TOTAL OTHER FUNDS POSITIONS
72.77
76.60
76.60
76.60
72.48
(4.12)
Fo o tn o te s: 1
Add 0.50 FTE Administrator
2
Add 0.50 FTE Accounting Specialist
3
Transfer 0.48 FTE Offset Equipment Operator to Utilities
4
Transfer 0.60 FTE Contracts Administrator from Administrative Services - General Fund to Capital
5
Transfer 0.60 FTE Senior Financial Analyst from Administrative Services - General Fund to Capital
Operating Budget FY 2011
City of Palo Alto
301
Table of Organization
FY 2009 Actuals
FY 2010 Adopted Budget
FY 2011 FY 2010 Adopted- FY 2011 Adjusted in-Concept Proposed Budget Budget Budget
FY 2011 Budget Change
6
Elimination of various positions due to budget constraints
7
Transfer 0.10 FTE Business Analyst from Administrative Services - General Fund to Technology Fund
8
Transfer 0.20 FTE Senior Business Analyst from Administrative Services - General Fund to Technology Fund
9
Transfer 0.20 FTE Senior Engineer to Public Works - Enterprise
TOTAL CITYWIDE POSITIONS
1,075.60
1,053.35
1,055.35
1,055.35
1,007.35
(48.00)
Authorization is given to create no more than 7.0 FTE temporary overstrength positions. Overstrength positions are justified by business needs and provide a vacancy to allow for cross training of a critical classification. These interim positions facilitate organizational transitions and succession planning in the cases of long-term disability, retirement, and critical vacancies. This action responds to the City Auditor's recommendation number four in the Audit of Workers Compensation (Issued 04-09-05).
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MISCELLANEOUS
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P
Palo Alto: The City Palo Alto: The City alo Alto is located on the San Francisco Bay Peninsula in a valley between the bay and the coastal mountain range to the west about 40 miles south of San Francisco. The town of approximately 64,500 people, in Santa Clara County, is one of a constellation of towns and cities ringing San Francisco Bay and comprising the greater nine-county San Francisco Bay Region, with a population of approximately six million. While it is not a significant population center, Palo Alto enjoys international name recognition and people from all over the world come to participate in education or research at Stanford University, conduct business with the technology firms of the Silicon Valley area, or receive medical care at the Stanford Medical Center. Palo Alto's historic ties to Stanford University and the various institutions affiliated with it, either formally or loosely, creates a much more cosmopolitan character here than evidenced in many other Bay Area communities of similar size. Palo Alto's residential neighborhoods are distinctive, each with its own character and ambiance. Most neighborhoods also have resident and homeowner organizations, which provide a forum for interacting with city government on neighborhood issues. Gamble Gardens
The Palo Alto Unified School District (PAUSD) has an international reputation for excellence. Approximately 95 percent of PAUSD students enter college and the drop-out rate is about 1percent. In addition, District students score well above the average on standardized tests. Palo Alto enjoys access to medical care unsurpassed almost anywhere in the world. Two medical facilities of national or international stature are located here, the Palo Alto Medical Foundation and the Stanford Medical Center. Palo Alto is home to a vibrant business community, with over 91,000 jobs and 4,000 businesses located in the city. The local economy is primarily based on banking, insurance, technology, real estate, as well as the wholesale, retail, and service industries. From city-owned parks in the baylands where birds and aquatic life flourish in a natural habitat to the trails and picnic areas in our grassy foothill preserves, Palo Alto is a city that boasts 34 parks. Indeed, onethird of Palo Alto's 26 square miles is open space, which complements Stanford University's thousands of acres of rolling hills and botanical preserves.
www.CityofPaloAlto.org
Operating Budget FY 2011
City of Palo Alto
305
Palo Alto: The City
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Operating Budget FY 2011
City of Palo Alto
306
Reserve Policies Reserve Policies AS REVISED BY CITY COUNCIL ON JUNE 9, 2008
GENERAL FUND RESERVE POLICY etermination of the appropriate level of General Fund reserves is a policy decision. Some general guidelines have been suggested by the literature in the government finance field. The Government Finance Officers of America (GFOA) recommend that reserve levels be directly related to the degree of uncertainty the local government faces: the greater the uncertainty, the greater the financial resources necessary. Past experience should be used as a guide, with particular attention being paid to the following:
D
• Diversity of revenue base • Volatility of revenue structure • Volatility of political environment • Consistent operating surpluses/occasional or frequent operation deficits • Uneven cash flows, requiring short-term borrowing Diversity of Revenue Base: Palo Alto has a comparatively diverse revenue base with almost half of
General Fund revenues coming from non-tax sources. This means that in periods of economic recessions, Palo Alto is somewhat more resilient to revenue reductions than cities in which tax revenue makes up the overwhelming majority of their revenue base. (In contrast, for all cities in California of Palo Alto's size, taxes make up roughly two-thirds of total General Fund revenue.) Volatility of Revenue Structure: Tax revenues show the most volatility in terms of growth, although Palo
Alto's revenues have been relatively more stable than other cities in Santa Clara County or the Bay Area in general. Sales tax is spread broadly across consumer retail, business-to-business sales, and other sales (transportation, food products, and miscellaneous). Political Volatility: While Palo Alto's revenues have shown strength and resilience in relation to the
general economy, considerable volatility has been introduced by the inability of the State government to deal with its own budget problems. In Fiscal Year 1991, the State gave counties authority, through SB 2557, to charge cities for the cost of booking prisoners and for property tax administration; this action cost Palo Alto approximately half a million dollars on an annual basis. In Fiscal Year 1992, the State shifted 47 percent of cities' cigarette tax away to fund trial courts. In addition, the State took half of all non-parking fines and forfeitures attributable to cities. From 1992 through 1994, the State reduced cities' property tax revenues by almost 15 percent, eliminated the balance of cigarette tax revenues, and extended the definition of booking fees so that counties may potentially double or triple the charges they assess. In November 1996, voters passed Proposition 218, the Right to Vote on Taxes initiative. It further limits the City's ability to raise new funds.
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City of Palo Alto
Operating Budget FY 2011
Reserve Policies The State has further targeted property tax revenues as an offset to its 2004 and 2005 budget balancing activities. Approximately $1.5 million (10 percent) in Palo Alto property tax revenues were targeted for inclusion in the Educational Revenue Augmentation Fund (ERAF) in Fiscal Year 2005. Operating Surplus/Operating Deficit: The City has historically maintained its philosophy of funding current obligations with current resources ("pay as you go") as its preferred approach to operations and continues that practice in this budget. This requires that the City maintain a balanced budget and manage revenue growth where possible to ensure that sufficient resources are currently available to fund service level expectations of the community. This practice, together with not funding operating deficits with reserves serves to protect the fiscal health of the City. Uneven Cash Flow: The City manages uneven cash flows by utilizing conservative cash management
practices and cash flow analysis performed on a daily basis. Estimates of payments for City obligations such as payroll, accounts payable and debt service are scheduled out over the next year. Maturity dates of security purchases are laddered out and matched against resource requirements to fund City obligations when due per the estimated payment schedule. These conservative cash flow management practices assist the City in managing its cash flows and maintaining its preferred approach to operations of funding current obligations with current resources. BUDGET STABILIZATION RESERVE (BSR) The General Fund requires a BSR to serve as a repository for unspent operating funds at yearend, as well pay for one-time unexpected needs that arise outside of the regular budget planning process. The BSR is not meant to fund ongoing operating expense. A reserve range of 15 to 20 percent of General Fund operating expenditures, with a target of 18.5 percent, shall be maintained. Any reserve level below 15 percent shall be approved by the Council. At the discretion of the City Manager, reserve balance above 18.5 percent may be transferred to the Infrastructure Reserve within the Capital Fund.
CAPITAL FUND RESERVE POLICY INFRASTRUCTURE RESERVE (IR) The Infrastructure Reserve (IR) was originally created as a mechanism to accumulate funding required to complete a 10 year, $100 million infrastructure rehabilitation program that would repair or renovate existing buildings and facilities, streets and sidewalks, parks and open space and transportation systems. Because of the need to maintain infrastructure on a systematic basis, it was recognized that the IR would of necessity never be exhausted but would act in perpetuity as the source of funding for General Fund infrastructure. The reserve would therefore be used primarily to fund the projects identified in the original Infrastructure Master Plan, or any other projects not identified in the plan but which are critical to the maintenance of
Operating Budget FY 2011
City of Palo Alto
308
Reserve Policies existing infrastructure. Secondarily, should Council choose, the IR may be used for major capital projects involving the acquisition or renovation of infrastructure not previously included in the IMP. Following recommendations from the Finance Committee during budget hearing of Fiscal Year 2008, references to the Infrastructure Management Plan (IMP) and Non-IMP have been eliminated from the Budget document. General Fund projects are now classified either as: Land, Buildings and Facilities, Street and Sidewalks (which include Traffic and Transportation), Park and Open Space, and Miscellaneous. Unspent monies from General Fund capital projects will be returned to the IR and retained within the Capital Fund. Investment income from this reserve will also be retained within the IR to fund future capital project needs.
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Demographic Statistics Demographic Statistics LAST TEN FISCAL YEARS
City of Palo Alto School Population
Santa Clara County Population
City Population % of County
Santa Clara Total County ($000) Personal Income
Fiscal Year
City of Palo Alto Population
City of Palo Alto Unemployment Rate (%)
2001
60,200
2.4%
10,031
1,728,680
3.48%
83,838,707
2002
60,500
3.7%
9,952
1,719,565
3.52%
77,548,912
2003
60,465
4.1%
10,151
1,729,917
3.50%
77,680,349
2004
60,246
3.2%
10,341
1,731,422
3.48%
82,638,917
2005
61,674
2.8%
10,527
1,759,585
3.51%
86,400,000
*
2006
62,148
2.5%
10,607
1,773,258
3.50%
91,600,000
*
2007
62,615
2.6%
11,056
1,808,056
3.46%
96,900,000
*
2008
63,367
3.5%
11,329
1,837,075
3.45%
107,900,000
*
2009
64,484
6.5%
11,329
1,857,621
3.47%
109,700,000
*
2010
Not available at this time
SOURCES: California State Department of Finance State Employment Development Office Palo Alto Unified School District * California State Department of Transportation Forecasts
Operating Budget FY 2011
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310
Glossary Glossary KEY BUDGET TERMS Adjusted Budget: The adjusted budget represents the adopted budget including changes made during the
fiscal year. Adopted Budget: The adopted budget is the annual City budget approved by the City Council on or
before June 30. Appropriation: The allocation of an expense budget for a particular project or program usually for a
specific period of time. Benchmarking Measures: Are included in the budget document and replace the former impact measures.
Benchmarks are shown for each department and where available at the division level in each department. The benchmarks show input, output, efficiency, and effectiveness measures. Where possible they are related to the City Auditor's Service Efforts and Accomplishments report. Capital Budget: A plan of proposed capital outlays and the means of financing them for the current fiscal period. In a two-year budget, the second year of the Capital Improvement Program is adopted-in-concept. Capital Improvement Program (CIP): The Capital Improvement Fund accounts for projects related to the
acquisition, expansion, or rehabilitation of the Cityâ&#x20AC;&#x2122;s buildings, equipment, parks, streets, and other public infrastructure. Capital Projects Fund: A fund created to account for all resources to be used for the construction or
acquisition of designated fixed assets by a governmental unit except those financed by proprietary or fiduciary funds. Comprehensive Plan: The Palo Alto Comprehensive Plan contains the City's official policies on land use
and community design, transportation, housing, natural environment, business and economics, and community services. Its policies apply to both public and private properties. Its focus is on the physical form of the City. The Adopted Budget integrates the 1998-2010 Comprehensive Plan into the budget process. Cost Accounting: The branch of accounting that provides for the assembling and recording of all the
elements of cost incurred to accomplish a purpose, to carry on an activity or operation, or to complete a unit of work or a specific job. Enterprise Funds: Enterprise funds account for City operations which are financed and operated in a manner similar to private enterprise. Costs of providing service to the public are covered by user charges, grant funds, and impact fees. The City of Palo Alto owns and operates its own utilities with the exception of refuse hauling and collection, which is contracted with an outside firm. Fiscal Agent: A bank or other corporate fiduciary that performs the function of paying, on behalf of the
governmental unit, or other debtor, interest on debt or principal of debt when due.
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Glossary Fiscal Year: A 12-month period of time to which the annual budget applies and at the end of which a
governmental unit determines its financial position and the results of operations. Fixed Assets: Assets of a long-term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture, and other equipment. Funds: Local government budgets are made up of funds, which help to organize and account for restricted
resources. Each fund is considered a separate accounting entity. Governmental Funds: A generic classification used to refer to all funds other than proprietary and
fiduciary funds. The capital projects fund is one example of the type of funds referred to as â&#x20AC;&#x153;Governmental Fundsâ&#x20AC;?. Infrastructure Assets: Roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting
systems installed for the common good. Infrastructure Management Plan (IMP): A portion of the General Fund capital improvement program
with the focus of rehabilitating the City's infrastructure. In 1998-99, an outside consultant on the City's infrastructure prepared a report known as the Adamson report. Within this report the City's infrastructure was catalogued and ranked based on when the infrastructure needed to be upgraded or replaced and the cost for each item. At that time, the City Council decided to establish a plan using the Adamson report as a guide to both timeline and cost. Internal Service Funds: These funds provide services to City departments and recover their costs through
user charges. The Vehicle Replacement Fund is an Internal Service Fund managing the replacement and maintenance of the City fleet. Method of Accounting: The City's General Fund budget is developed using a modified accrual basis of
accounting, with revenues being recorded when measurable and available, and expenditures recorded when the liability is incurred. Enterprise Funds and Internal Service Funds are budgeted on a generally accepted accounting principles (GAAP) basis, which for Proprietary Funds is on a full accrual accounting basis. Operating Transfer: Amounts transferred between funds; not considered a revenue or expense. For
example, legally authorized transfers from a fund receiving revenue to the fund through which the resources are to be expended. Pay-As-You-Go-Basis: A term used to describe the financial policy of a governmental unit that finances all
of its capital outlays from current revenues rather than by borrowing. Proposed Budget: The proposed budget is the budget that is sent to the Finance Committee by the City
Manager. The proposed budget, including changes made by the Finance Committee during their review, is approved by the Council and then becomes the adopted budget.
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Operating Budget FY 2011
Glossary Reimbursements: Interfund transactions that constitute reimbursements to a fund for expenditures or
expenses initially made from it but that properly apply to another fund. For example, the Enterprise Funds reimburse the Technology Fund for CIP projects that the Enterprise Funds benefit from. Reserve: Represents the portion of fund balance set aside for financing future capital improvements or the
outlay of capital projects in any given year, and addressing one-time emergency needs. Revenues: Revenues include compensation received by the project for specific services to the public
(external revenues), as well as revenues received from other funds (internal revenues). An example of internal revenue includes the Electric Fund reimbursing a Technology project for the technological resources that it will provide. Special Revenue Funds: These funds account for the proceeds derived from specific revenue sources that
are legally restricted to expenditures for specified purposes. The Street Improvement Fund (SIF) is a Special Revenue Fund that derives its funding from state gas tax revenues. Capital appropriations from the SIF must be spent on the construction and maintenance of the road network system of the City.
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Americans with Disabilities Act Americans with Disabilities Act
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C I T Y
FOR INFORMATION CONTACT:
O F P A L O
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A L T O
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