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HomeMy WebLinkAboutFin Budget Update FY2009-10 & 2010-11a�rr oFo Agenda Item No: 2 Meeting Date: January 26, 2010 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: CITY MANAGER' EPARTMENT Prepared by: City Manager Approval: ej Ken Nordhoff, City Manag SUBJECT: BUDGET UPDATE FOR FISCAL YEARS 2009-2010 AND 2010-2011 RESOLUTION ADOPTING AMENDMENTS TO THE CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR 2009-2010, INCLUDING STAFFING REDUCTIONS THROUGH LAYOFFS AND THE ELIMINATION OF VACANT POSITIONS TO BALANCE THE FISCAL YEAR 2009-2010 BUDGET, AND AUTHORIZING THE CITY MANAGER TO IMPLEMENT SAID STAFFING REDUCTIONS BACKGROUND: Dating back to 2007, the City of San Rafael has been addressing the impacts of the severe recession. As recently as last July, the City resolved a multi-million dollar deficit. Actions implemented produced a multitude of cost savings and revenue enhancements primarily outlined in the Recession Action Plan and Economic Vitality Plan. Work furloughs, an early retirement program, a hiring freeze, position eliminations including layoffs, and deferrals of contractual salary increases are some of the actions taken to attack the deficit. National and State trends are indicative of the depths of a continuing recession. Just this past Friday, I learned the State of California unemployment rate climbed higher in December, and is now over 12%. Here in Marin, this figure remains above 8%. A week ago, I noted only 6 homes had sold in San Rafael for a one week period in mid-January. Prices are still down, and turnover is very soft. These illustrations demonstrate the complexity and depth of this recession, for which we do not see any sort of a recovery beginning at least until 2011. Since adopting the 2009-2010 budget, major economic changes continued to occur which require further modifications to the adopted revenues and expenditures. Recent sales tax results for the 3`d quarter were down 12% when compared to the same period of 2008. As we study this data closely, we realize the adjusted sales activity (corrected for clean up payments, etc.) was actually down 17%. Of interest to note is this was the cash for clunkers period, where we didn't see the deep declines in the auto and transportation category. As staff has reported over the past months, File No.: g , 5 FOR CITY CLERK ONLY / Council Meeting: d u/.20/0 Disposition: �LV fAP0J -2* 1..908' SAN RAFAEL CITY COUNCIL AGENDA REPORT / Patie: 2 our revenue projections for the General Fund have further eroded since last July. We are now into our third month of addressing this situation. Allow me to summarize what has occurred to date below. ANALYSIS: ♦t Study Session on November 16th - At this session, staff defined the changes in our current 2009-10 budget, and projected 2010-11 deficit as well. The most significant changes have been the declines in sales and transaction taxes. Our Tax Revenues are reduced approximately $3,100,000. The biggest reduction is for $1.5 million for the Triple Flip Back -Fill revenue - due in part to the State's overpayment correction of approximately $750,000 in fiscal year 2008-2009. Sales tax revenue also requires a reduction of approximately $1 million - due in part the slow economy and loss of major car dealerships. Most of the remainder comes from similar declines in our Measure `S" transaction and use taxes. These ongoing declines in revenues extend into our fiscal year 2010-2011 projections which were established last summer. -►i Budget Workshop on December 15th - General Fund deficits were projected to exceed $3 million now and into next year. Specifically, we are looking to resolve a $3.5 million deficit for this year, and a $4.4 million situation forecasted for fiscal year 2010-2011. These projections have included setting aside $500,000 to build back our reserves. Due to the severity of this problem, I asked all City Departments to prepare budget reduction scenarios of 10% for their General Fund programs and operations. This tallied about $5.8 million in service reduction options, which exceeded the needed solution level but provided a variety of options for the City Council and community to consider. Staff was directed to return to the City Council with an outreach plan for community involvement, and a first round of recommendations for consideration on January 41h. -►t December 21St - the City Council approved a schedule and approach to additional meetings and workshops to inform the public, solicit their input, and answer questions about various service impacts to our residents and businesses. -►i January 4th - the staff presented a series of service reductions, cost savings and staffing losses (no layoffs), which were approved by the City Council. So as to provide some context and perspective of these actions, I have reproduced a portion of the January 4th report to illustrate and summarize the changes in Departmental operations, staffing and services dating back to budget actions of last July. From the January 4. 2010 Citv Council StaffRenort: Police: The Police General Fund budget is the largest of any Department, if measured by staffing levels and estimated budget appropriations ($20.2 million). To successfully provide our basic services, the Police Department needs to maintain a base number of employees. Basic services begin with our Officers who are on our Patrol Teams. The Officers on these Teams are responsible for the field service that we provide 365 days a year, distributed into six beat assignments across San Rafael. This includes Records Clerks and Dispatchers who answer the phones, help citizens at SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 our office, process the reports, and provide all the required legal statistical & paper documentations. Services include Evidence & Property clerks to receive, process, and document all of our evidence. It includes a training unit that arranges, documents, and provides all of our state & court required training to maintain our legal certification for our positions. It includes a small number of Detectives to handle our very complicated & sensitive cases which also require a lot of training and expertise (homicide, sexual assaults, child abuses, etc.). Finally, it includes a small number of clerical staff to manage the Department's administrative tasks required to support a 24 hour a day & 7 days a week operation. Proposed service reductions and staff positions have taken into account officer beats, specialty assignments (Mental health, school resource, patrol boat, etc.) as well as support service functions. July 2009 Actions Service Impacts Police January 4, 2010 Additional Service Impacts internet crime reporting solving with other local Proposed Reductions agencies; removal of our Eliminated Business Manager Loss of `cover cars' or Continuation of Service reductions in prior position; suspended one staffing above the six beat suspending four column denoting slower vacant dispatching and three areas (minimum shift) to be vacancies from FY responses and overages vacant officer positions for FY regularly assigned; 2009-2010 (3 officers continues into FY 2010- 2009-10 only; not fill one community should expect and one dispatcher) 2011 expected officer vacancy for slower response time to all into FY 2010-2011 six months calls for service. All non-violent crime Loss of additional Removal of coordinated reports without a known officer — pull back of approach to dealing with suspect only accepted mental health the homeless. Loss of through the department's program coordination and problem internet crime reporting solving with other local program or front counter agencies; removal of our report form. Limited officer participation in a number of response to private property related boards and non- injury accidents. committees. Note: the officer would remain with the dept., but would not be focused specifically on mental health. Reduced traffic enforcement Loss of additional Probationers not contacted throughout the city limits. officer elimination regularly; monitoring shift Motor officers will be of COPE program to County Probation reassigned to fill slots in the participation Department basic service beats on an as needed basis. Slower response times to incidents involving the Reduction of No safety issues; but mentally ill. To maintain Regulatory Officer impacts to quality of life basics beat services, a services; permitting of reassignment of one mental massage and other health officer must be made businesses goes to State or back to operations. is reassigned; private property graffiti complaints handled by patrol officers as low priority call SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 July 2009 Actions Fire: Service Impacts — Police Given all of the types of responses experienced each day, lower priority is given to non -injury, non -DUI accidents. January 4, 2010 Additional Service Impacts Proposed Reductions Citv staff to provide responses to fiurther reductions of pan-ol. support and specialty programs and services at January 6. 2010 budget meeting Due to the early retirement and layoffs in the Fire Department, a restructuring and reorganization of duties, coupled with some new positions was approved. Other changes include paramedics being redeployed in all fire stations (by intentionally reducing the number of higher cost Fire Engineers), fire personnel taking on more ambulance transportation volumes, and cooperative agreements between San Rafael and Larkspur to share Battalion Chief duties during emergencies. Portions of the Fire Department budget are accounted for in other areas such as the EMS program (supported by transportation billing and a special tax) and the Household Hazardous Waste program. The General Fund portion is $14m for this current year. July 2009 Actions Inclusive of the dispatch transition last March, the Fire Department declined a net total of five positions. Three were Fire Dispatching functions; one Administrative Analyst position was eliminated. Two additional staffing reductions occurred both at the administrative level (including an Administrative Chief Officer position). Fire has planned to reconfigure a Training Officer function with a qualified, certified instructor who can provide required course work to our staff and other agencies as well. This function may manifest into another shared services opportunity. Public Works: Service Impacts Fire Vegetation management program will be reduced from clearing 100 acres to 25 acres per year. Results of the restructuring and elimination of various services is well under way. The Matrix report, due January 2010, will provide options for two agencies to enhance services, restructure cost sharing and hopefully do so with less overall $ for Marinwood and the City. Already, the ambulance billing improvement to date should add over $300,000 of additional revenues per annum to the Paramedic Fund. January 4, 2010 Additional Service Impacts Proposed Reductions Freeze Four Continue to pay with Firefighter Positions overtime no service loss as all stations function 24/7/365 Do not fill Training Lack of coordinated training Officer function for Fire and EMS (both internal and external impacts) Loss of traditional Options to be developed by Marinwood CSD both parties to eliminate funding General Fund support and enhance services to both communities. The areas of City service in the Public Works Department include Engineering, Facility Repair, Fleet Vehicles, Parks Maintenance, Sewers Maintenance, Street Maintenance, Traffic SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pa2e: 5 Operations and development impact analysis. Some are paid out of special funds, such as the Sewer Maintenance operations being 100% reimbursed by the San Rafael Sanitation District. Most of the other operations are expenditures of the General Fund. The Engineering Division has two components. Civil Engineering is responsible for the design, construction management and inspection of all City Capital Improvement Projects. Traffic Engineering coordinates and directs the operation and maintenance of San Rafael's traffic signal and street lighting system, collects and analyzes traffic model data, and reviews private/public project development traffic impacts and formulates mitigation strategies. The Park Maintenance personnel maintain City -owned parks, athletic fields and the Terra Linda pool, as well as the landscaping at several facilities such as the Falkirk Cultural Center, the San Rafael Public Library and City Hall. Also maintained are 3 community centers, 10 neighborhood parks, and 10 mini parks totaling 149 acres. This Division also provides landscape maintenance of City -owned roadway medians (24 acres), roadsides (16 acres), and thousands of trees. The Street Maintenance Division is responsible for San Rafael's 176 miles of streets and 260 mile storm water system. Street Maintenance employees are responsible for asphalt repair, replacing traffic signs and guard rails, temporary and permanent sidewalk hazard repairs, curb and gutter repair and related tasks. Street Maintenance Division personnel sweep all city streets with curbs and gutters with one mechanical sweeper. In the fall, the leaf vacuum machine is used to supplement leaf pickup to avoid clogging the storm drain system. Street Maintenance Division personnel maintain San Rafael's storm and flood control system, which consists of 101 miles of storm drain pipes, 12 pump stations, 29 pumps, and 6 generators. Employees inspect and clean over 3,600 catch basins annually and maintain the City's system of drainage ditches and channels. By far, Public Works has seen the greatest staffing decline of any Department. The reduction of 13 positions heading into fiscal year 2009-10 reduced projected General Fund expenditures by almost $1.4 million. Should Council approve the proposed elimination of 3 more positions (I from Streets, 2 from Parks), the force will consist of 63 FTE's. Public Works employed 82 personnel as recently as fiscal year 2004-05. July 2009 Actions Service Impacts January 4, 2010 Public Works Proposed Reductions Engineering — For all new commercial and residential No additional elimination of two developments, require an additional five changes in this Engineering working days to review and submit Division at this positions and the conditions before the application goes to time. Public Works the Planning Commission; for all work Inspector position. within public right-of-way by utility companies or private property owners (such as driveway approaches, sidewalks, drainage, walls and fences), requires additional three working days to process the applications and issue an encroachment permit. Additional Service Impacts None SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 6 July 2009 Actions Service Impacts — January 4, 2010 Additional Service Impacts Public Works Proposed Reductions Parks reduction of Parks crews will maintain our parks and Loss of two Work is focused with high three positions median landscape areas less frequently; additional priority toward safety and weeds visible longer than we used to positions health needs linked to these allow, debris will not be removed as assets. Median trimming quickly. PW no longer removing graffiti only once a year (causing the on private property; right of way and trimming to be more severe). public utility areas to be eradicated by Limited emergency response crews within 2-3 days of complaint capabilities being received Streets - five Routine preventative and response based Loss of two Work is focused with high positions are services, such as painting red curbs, additional priority toward safety and eliminated crack sealing and filling potholes, will positions; use health needs linked to these occur less frequently. Priority will be of local assets. Capital budget for given to the most critical needs in order Measure "A" street projects reduced by at to maintain high safety standards for funds for least S700k over two year pedestrians, cyclists and motor vehicles. operations period — impacts longer term pavement condition index and street quality Limited emergency response capabilities Administration • Work with other agencies (TAM, Various Limited availability to handle loss of two SMART, etc), will be slowed. reductions in one time problems, address management Engineering Services is setting priorities operating citizen requests. positions for various projects, both within and expenses in outside our City borders. Grant seeking multiple Citv staff to Provide opportunities will be scaled back divisions responses to street sweeDine significantly. program seivices at the Januaiv 6. 2010 budeet - meeting Communitv Develovment: Community Development has four primary programs: Current Planning, Long Range Planning, Building and Fire Prevention and Code Enforcement. Long Range Planning is staffed by one position, responsible for General Plan 2020 compliance and implementation, and entirely funded by development related fees. Code Enforcement provides proactive efforts (hotel and apartment inspection program) as well as enforcement of zoning and other code violations on a complaint basis. Building and Fire Prevention are underway on the commercial life -safety inspection program, as well as handling construction permit and plan checking. Community Development staff has experienced declines in permit and planning applications, which they expect to continue into next year. Recent fee updates are meeting or exceeding revenues goals (so far) and help recovery costs for these services. Planning fees are —20% above expectations. Even with increased revenues, planning applications do not fully fund all Planning activities. Fees are likely to capture full cost recovery in the Building functions. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paze: 7 July 2009 Actions Service Impacts -- Community Development Loss of two staff positions Slower or an inability to respond to in Code Enforcement. Code Enforcement complaints about Eliminated one Planning non -safety related issues such as position and a part-time illegal signs and banners, fences, Fire Inspector. Lastly, trash or debris pickup and funding was eliminated for overgrown vegetation; Code Planning interns which Enforcement completing fewer assist with counter health and safety code compliance coverage, public hearing inspections in apartments; Reduced noticing and research. public counter hours for Planning Division; reduction to the level of discretionary review by Planning staff*; fewer commercial fire compliance inspections; turnaround time to review and issue building permits may be extended due to loss of staffing in support divisions (* - by way of example - This is a work in progress intend to have ZO changes to PC/CC this winter; other options may include no longer processing second story additions to single family homes as planning applications. Instead these applications would move directly to the building permitting stage once basic code compliance is verified) Librarv: January 4, 2010 Proposed Reductions Reclassification of Code Enforcement Manager to Supervisor; Additional Service Impacts Shift Code Enforcement section management to Principal Planner. Eliminate .75 FTE Less ability to assist Administrative other departments Position and agencies; loss of clerical assistance & slower pace of apartment inspections. Use of technology funds to pay for staff support related to permitting software operations and oversight Eliminates portion of funding for AV modifications to City Council chambers Citv staff to _provide responses to reduction in RBR (resale ins_oectionl program and planning selvices at the Januaiv 6. 2010 budget meeting The Library Department oversees a variety of programming and services at both the Downtown and Pickleweed locations. In addition, they serve as the administrator of the Literacy program, which has a grant based $800,000 operation directed toward improving reading abilities for all adult age groups across Marin. Our main Library operates at 48 hours a week, and has been in this pattern since the last budget downturn of several years ago. The General Fund budget proposed is around $2.3 million. July 2009 Actions Staffing declines by 2.11 FTE Transaction Based Reimbursement (TBR) funds to backfill additional cuts, up to $100,000. Service Impacts Library Library patrons will experience longer lines when checking out library books or waiting for reference service Book purchases will be limited to high -demand items; reference book purchases curtailed by about 60 volumes per year; eliminated up to 60 magazine subscriptions. January 4, 2010 Additional Service Proposed Impacts Reductions None at this Citv staff to provide time responses to vr000sed service reductions and loss of Library hours at the January 6. 2010 budeet meeting SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8 Communitv Services: Community Services is defined in three separate ways. First, the Department operates and staffs three separate community centers from which they provide programs, services and park and recreation facility management. They serve as the caretaker and program provider of the Falkirk Mansion and grounds. Lastly, and unique to San Rafael, Community Services operates preschool and afterschool child care programs at nine school campuses, plus a facility in Albert Park. Child care is self funded through fees (and small grants) paid by those who enroll children in these programs. The centers and Falkirk offset many of there costs through rental rates and user fees. An overall budget of about $6 million has a General Fund impact of only $1.44 million to oversee the Department and keep the facilities open. July 2009 Service Impacts — Actions Community Services Eliminated one Art shows, public events and mid- holiday celebrations at Falkirk management Cultural Center have dropped off position at dramatically. There is reduced Falkirk public access to the mansion's grounds and galleries. Falkirk will still be available for private rentals for weddings and other events. Parks and Recreation Commission currently spearheading a survey of community desires and formulating strategies for greater volunteerism and fundraising Administration: January 4, 2010 Additional Service Impacts Proposed Reductions Eliminate 1 vacant Public will experience facility administrative closures TLCC Monday position; reduce part nights; SRCC Friday nights time help and operating expenses; Reducing Aquatic Staff training, realign staff hours delaying the opening of the Terra Linda Pool a week and closing the season two weeks early By reassigning work shifts for several of the FTE employees we propose eliminating some Seasonal and Part Time Employees that now provide services as evening and weekend Facility Assistants in our three community centers Citv staffto provide responses to reduction in Youth/Family programming and services at Januaiv 6. 2010 budget meeting Administration is inclusive of the services provided by Information Technology, Human Resources, City Clerk and City Attorney offices, Finance, Emergency Services and the City manager's office. We are proposing a variety of operating expense and cost allocation reductions. At this time, we are not proposing any staffing reductions. However, as noted on the Round 41 Recommendation, we are reducing operating costs in several of these fitnctions -+1 January 6`h - The staff followed up on issues raised at the December 15`h workshop. -►i January 12`h and 14`h - Earlier this month, staff implemented an outreach effort to encourage our community to attend town hall meetings on the budget. We utilized a technology based approach to invite neighborhood leaders, residents, business groups, Board and Commission members, etc. At these gatherings, we provided an overview of public SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9 finance in conjunction with the status of our budget situation. Attendees had an opportunity to interact with various departments. Furthermore, public comment time was provided to answer the question; `What actions should the City take to eliminate the deficit?' ♦1 January 19`h — results of the community input were provided to the Council and community. No formal budget actions were taken. City management did report on the progress of bargaining unit concession discussions. A listing of `Round #2' service reductions were presented for final review, as well as additional reductions that are needed absent compensation concessions from the remaining bargaining groups. Staff asked the City Council to set another meeting (tonight) and return with a series of budget balancing recommendations. This section of the report will now focus on several key areas, including an updated status of bargaining concessions, my City Manager's listing of budget balancing recommendations, and other organizational and community impacts resulting from the service and staffing changes. Reserves: The General Fund reserve is currently estimated to be 3.1 % at the end of fiscal year 2009-2010 (about $1.7 million). This amount is well below the 10 percent goal in our approved financial policies. Some comments have been made over the several meetings about why rebuild reserves now even in a limited way. I am recommending the addition of $500K to reserves in fiscal year 2009-10. It is prudent and necessary to do so for reasons such as the following: b There is no build back of reserves in fiscal year 2010-2011 b Any number of uncertainties about our budget still remains (such as more State grabs of local revenue, pension rate increases heading into next year, etc.) b Reserves already at dangerous levels r* Given the time already lapsed since July, to balance fiscal year 2009-10 we'll need to use significantly more reserves as reductions now and recapture this loss when the painful budget reductions achieves their full annual value in 2010-11. Context for decision making: As we have discussed many times, the City recognizes the need to balance the budget while taking into account the service impacts and losses across all of our functional areas. In past report, we have provided spreadsheets demonstrating year over year staffing reductions by department. To better illustrate these changes (including those proposed as part of this report), I've attached Exhibit A, which provides five snapshots of staffing levels. Working backwards, the last chart captures staffing levels by Department and the proportional share of the total staffing dating back to fiscal year 2007-2008. Moving forward to the top of the first page is a chart showing the staffing levels and percentage relation to the total if you were to act on the recommendations noted in this report. Along the way with each chart, we have captured the actual position changes that have occurred each time the City Council has amended our budget and reduced positions. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pam 10 Allow me to assist in reading Exhibit A in another way. If you look at the last pie (fiscal year 2007-2008), you will note the Police Department had 105 positions, or 23% of the total citywide staffing in place at that time. Moving forward through the next four charts, you can see the Police staffing would be 90 positions as of this report, and still retain 22% of the total staffing of the organization. Therefore, your actions over the last three years have kept the balancing of staffing largely intact as we have shrunk the overall organizational size. We have also included an Exhibit B which summarizes the staffing levels by Department into a table, and also illustrates the staffing levels (pending this action) heading into fiscal year 2010- 2011. What stands out most to me is a loss of over 50 positions in the last 30 months due to retirements, layoffs, cost reallocation and attrition. This statistic surely supports how dramatically we have had to reduce our service levels to keep our budget in balance. More importantly this dramatic change should drive home the loss of over 100,000 hours of public service time to our community when compared to what we offered as recently as three years ago. Lastly, we are attempting to exert our influence where we can to stimulate business development, job growth, etc. Exhibit D provides a recent update to our efforts, rooted in the approved Economic Vitality Plan. Hopefully the worst of our problems are bottoming out in 2010, and signs of a recovery spring forward in 2011. Having Rafters released, a new bakery in downtown, and a Target application approved over the next year offer longer term positive outlooks for our local economic health. Northgate is a retail boon, and should continue to blossom as additional tenants come to life through next spring. If employment picks up some steam, people will begin to spend dollars on new cars, home remodeling and consumer merchandise. Budeet eaa status: Having now concluded six public budget meetings, I wanted to remind you of what gaps remain to balance the General Fund budget. On January 4th, 2010, the Council received an extensive update and approved a number of actions to take steps towards balancing the budget for this and next fiscal year. In total, the Council's actions of that evening reduced the Fiscal Year 2009- 2010 expenditures by approximately $1.9 million and Fiscal Year 2010-2011 expenditures by $2.7 million. I am providing, via the attached Resolution, another series of recommendations. Schedule I provides the details of the next round of budget balancing actions. These amounts and the remaining deficits (for each year and accumulated over the two year period), are summarized in the chart below. Budget Deficits Fiscal Year 2009- Fiscal Year 2010 2010-2011 Projected deficits for each fiscal year ($3,550,000) ($4,440,000) Result of actions approved on January 4, 1,872,000 2,670,800 2010 ("Round One Actions") January 26, 2010 Schedule I 906,800 2,536,000 Remaining deficit for each fiscal year ($771,200) $766,800 Cumulative deficit for the two years ($4,400) SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paee: 11 Compensation reductions: The remaining gaps for each year can primarily be solved in one of two ways. The first involves compensation concessions by labor groups and management. The City negotiating team has been meeting for several weeks with all of the groups regarding this topic. Staff has provided a separate schedule (Exhibit Q which summarizes our results over this past year, as well as our progress to date for concessions heading into fiscal year 2010-2011. As we have stated, a 1 % concession in compensation, across all employees paid from General Fund resources, achieves annualized savings of about $250,000. As of Friday, we have a statement of intent from all the non -safety bargaining units, elected officials and unrepresented management groups showing commitment to continuing a 5% salary reduction into fiscal year 2010-2011. The details of how this will occur, such as furlough continuation, still need to be worked out with each group and will come back to you over the next few months for formal action. These concessions save around $500,000, and are accounted for in Schedule I as a partial solution to our budget gap. Last July, we also received partial year deferrals for the Fire Association scheduled salary increases. At that time we built these cost savings into the adopted 2009-10 budget, and carried into the 2010-11 projections. To date we have no further salary or compensations reductions from the public safety unions (4 separate units). We have noted on Schedule I the expected General Fund savings for each of these unions, but because we have no commitment to act, have not accounted for these values in the overall recommendations before you this evening. Citv Manazer Recommendations (Round #2 Reductions): The choices to resolve this deficit are extremely limited and only remain more difficult, since we have already pared down our services substantially over the past few years. I have taken into consideration the City Council and public input from our numerous workshops and meetings, organizational impacts, and how we can focus on community priorities with a smaller organization capacity. The Council set specific two year budget objectives last summer supporting the five year emphasis areas established as part of our budget process. Emphasis areas included: ✓ Foster Community and Volunteer Partnerships ✓ Improve Economic Vitality and Sustainability ✓ Invest in Infrastructure and Transportation ✓ Enhance Community Safety, and ✓ Preserve Critical Services and Fiscal Health Given the severity of rapidly changing budget and service reductions, staff will need to return to the City Council and reset some of our two years budget objectives to align with lowered staffing levels approved since July Is` Recommendations to balance the budget include obtaining $100,000 of CDBG funds to assist paying for our engineering services related to a curb ramp project. We are reallocating the staff time for Finance Department support for Parking Services needs over the balance of this year, SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paue: 12 and the potential to bring ambulance billing services in house at less cost. Contracts for residential resale inspections would be ceased and this work returned to the Building Division staff. The Library will be drawing down outside restricted one-time resources (i.e. State funded Transaction Based Reimbursements and Public Library Funds) to bring $241,000 of solutions to the fiscal year 2009-10 situation. They will be working on a strategic planning effort through the spring to answer a series of service, staffing and hours of operation questions which have arisen throughout the public meeting process. Absent new resources, the Resolution outlines a similar cost reduction in the Library for fiscal year 2010-2011. The remainder of recommendations on Schedule I requires full time staffing reductions. Dating back to December, we have been discussing a series of losses in several Departments. Staff recommends twelve (12) layoffs and an elimination of a vacant position. Specifically, it would require reductions totaling 12.80 full time equivalent (FTE) positions and including the Assistant to the City Manager, a part time Program Coordinator, the Employee Benefits Analyst, the Park Ranger, the Police Personnel Manager (contract), a Police Dispatcher, a Property and Evidence Technician, two Police Officers, a Police Call Taker/Records Specialist, an Information Technology Network Support Technician, an Equipment Service Attendant, and a Sweeper Operator (vacant). At the request of the City Council on January 19th, I am not recommending a reduction in planning staffing at this time. The Community Development Director will be closely monitoring planning fee and building permit revenues over the next few months. Should we see a decline, we could return at a future date for service reduction considerations. Staff is again prepared to address or respond to any specific reduction and the associated internal or external service consequences. I want to summarize what happens with these losses, including the cumulative impacts of your budget balancing over the past year or so. It is equally important to highlight what remains in our core Departments if you choose to act on these proposals. Police — we continue to staff six beats for patrol service, operate our Directed Patrol Unit, conduct investigations, and have a designated School Resource Officer. Two dedicated downtown foot beat officers remain intact, due to funding coming from Parking Services revenues. Police personnel will handle all emergency calls, and respond more slowly to non- emergency interactions via telephone or in person. Police no longer have designated, full time staff to address homeless needs, open space patrolling, police staff training and recruitment, and regulatory oversight. Day to day, a staffing of ninety positions (90) will require discretionary decision making by the Chief and command staff to make sure beats are staffed, and emergency call taking is handled. Fire — we continue to provide six station staffing 365 days per year to handle emergencies calls and responses for fire, paramedic and other incidents. Front line staffing levels are handled through a combination of current employees and overtime, and suspending the hiring of some firefighter positions. Suspension of the training officer requires this work to be absorbed by the Command staff and station platoon leaders. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paze: 13 Emergency Preparedness remains a vital public service. The City continues to offer our CERT and Get Ready courses as well as alternative public disaster education classes including Get Ready 5th Grade, Get Ready Spanish, and Get Ready Businesses. We continue to collaborate with Larkspur to assist in their needs and obtain financial reimbursement from our neighbor. Community Services — all three of our community centers, Falkirk and the Terra Linda Pool remain open and accessible to the public for a variety of uses. All nine Child Care Centers continue to operate on school and City sites, and are expected to fully recover costs through user fees. Community Development -- we will be processing applications and permit requests as timely as possible, given our various approval levels and workload volumes. Code Enforcement stays focused on preventative inspections and high priority health and safety requests. Public Works — Engineering staff are able to continue implementing the approved capital improvements projects adopted as part of our budget. Over the next couple of months we are planning to reduce the fleet size, and implement other operating cost reductions related to vehicle usage. Our routine preventative work is focused on park maintenance, street repair, storm drain clearance (think of all the rain this past week) and addressing basic public facility upkeep. Again, an emphasis is placed on health and safety tied to the City's extensive stewardship of our public assets and infrastructure. For many years, the General Fund has contributed very little (less than 1 % of appropriations) to sidewalk improvements, park renovations, curb and gutter projects, etc. Major infrastructure upgrades and enhancements are only going to occur through outside funding like grants, TAM, stimulus resources, etc. Financial Summary: With all the modifications, the City's total budget is now $81.9 million split between capital and all operating funds. The General Fund budget as amended would be $56,148,534. Reserves for fiscal year 2009-10 and heading into next year will still remain in the 3-4% range, absent any real disasters requiring the use of these limited dollars. FISCAL IMPACT: The Resolution attached reflects the mid year budget changes in revenues and expenditures since your last action of January 4, 2010. This Resolution incorporates the entire budget recommendations on Schedule I, and alters our total budget to reflect these actions. Attachment A reflects modifications to fiscal year 2009-2010 revenues. Changes included in appropriations are found in Attachment B. Similar to the revenue schedule, two categories are used in order to help classify all of the changes to fiscal year 2009-2010. The actions listed as #1's reflect prior budget decisions between December and this meeting. Category Two illustrates additional General Fund and Non -General Fund changes not formally presented to the City Council prior to this second mid year budget report. Both Attachments take into account the total General Fund adjustments outlined in the Resolution figures and Schedule I recommendations. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 14 It is important to state (again) that budgets move around for a variety of reasons. You are taking actions to fix the current year, and build changes in fiscal year 2010-11. Up through June, you can count on some variables influencing our projections for next year. Movable targets include refining our revenue projections, the ordinary course of turnover in staffing, State take aways, pension rate contributions to be set by MCERA in March 2010, etc. We must also be diligent in negotiating lower retirement plan benefits for all new hire employees in order to address the unfunded liabilities currently in place. Along the way the staff and I continue to look at other alternatives to improve our financial picture (e.g. recovers cost, share resources, develop and expand business, etc.). The Council and community will have ample opportunity in May and June 2010 to reshape the upcoming budget, prior to your formal action. OPTIONS: The City Council may choose to: 1. Approve the Mid Year Budget Amendment as presented 2. Amend the proposed recommendations, and approved the attached Resolution with said amendments. 3. Take no action. Request staff to bring back information or other alternatives to solve the budget deficits. ACTION REQUIRED: 1. Adopt the Resolution as presented. ATTACHMENTS WACity Managers- WorkFile\Council Material\Staff Reports\10\09-10 mid -year budget ll.doc RESOLUTION NO. 12908 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL ADOPTING AMENDMENTS TO THE CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR 2009.2010, INCLUDING STAFFING REDUCTIONS THROUGH LAYOFFS AND THE ELIMINATION OF VACANT POSITIONS TO BALANCE THE FISCAL YEAR 2009- 2010 BUDGET, AND AUTHORIZING THE CITY MANAGER TO IMPLEMENT SAID STAFFING REDUCTIONS WHEREAS, the City Council approved Resolution 12784 adopting the fiscal year 2009-2010 budget; and WHEREAS, the continued economic downturn requires updates to some City operations; and WHEREAS, the City Council approved Resolution 12905 amending the fiscal year 2009-2010 budget; and WHEREAS, it is the intention of this Council to review recommendations from staff regarding the City's financial condition, including revenue projections and available resources and provide funding for various ongoing, capital and other service needs; and WHEREAS, the City Manager has submitted to the City Council a report outlining the additional budget items; and WHEREAS, after examination, deliberation and due consideration, the City Council has approved the same report and recommendations. NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council that Resolution 12784 for fiscal year 2009-2010 is amended for administrative items and for items presented at previous study sessions which adjust expenditures by $53,262 as presented on ATTACHMENT A to this Resolution, incorporated herein, and adjusts revenues by $476,565 as presented on ATTACHMENT B to this Resolution, incorporated herein. NOW, THEREFORE, BE IT FURTHER RESOLVED, by the San Rafael City Council that Resolution 12784 for fiscal year 2009-2010 is further amended to adjust expenditures by the City Manager's recommended items detailed on SCHEDULE I attached to this Resolution, incorporated herein, for a reduction or reallocation of General Fund expenditures of $906,800. Acceptance of all items recommended by the City Manager will amend total expenditures to $81,937,825 as presented on ATTACHMENT A and to adjust total revenues to $80,032,841 as presented on ATTACHMENT B. NOW, THEREFORE, BE IT FURTHER RESOLVED, by the San Rafael City Council that fiscal year 2010-2011 will include adjustments to expenditures recommended by the City Manager as detailed on SCHEDULE I for a reduction or reallocation of general fund expenditures of $2,536,000. I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a special meeting of the Council of said City held on Tuesday, the 26th day of January 2010, by the following vote, to wit: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Brockbank, Connolly, Heller, Levine & Mayor Boro None None is!St C . 9w e -c c ESTHER C. BEIRNE, City Clerk WAManagement Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2010Wmend City budget 09-10 mid yr 1-26-10.doc CITY OF SAN RAFAEL BUDGET ADJUSTMENTS FISCAL YEAR 2009-2010 Grant Adjustments (JAG Grant -Swat Trailer; Boating & Waterway Grant) Personnel Cost (Retirement Rate Adjustments) TOTAL ALL FUNDS 51,565 1,697 $ 53,262 ATTACHMENT A General Fund 001 85,469 $ 85,469 MID -YEAR REVISED FOR FY 09-10 @ 1-4-2010 $ 81,658,263 $ 48,154,355 $ SUBTOTAL $ 81,711,525 $ 48,239,824 $ REALLOCATION OF GENERAL FUND EXPENDITURES TO OTHER FUNDS $ 892,100 25000 CITY MANAGER'S RECOMMENDATIONS (See Schedule 1) $ (665,800) $ (665,800) $ MID -YEAR REVISED FOR FY 09-10 @ 1-26-2010 _ 81,937,825 $ 47,574,024 $ $'' All Other Funds 51,565 (83,772) (32,207) 33,503,908 33,471,701 867100 33,471,701 CITY OF SAN RAFAEL BUDGET ADJUSTMENTS FISCAL YEAR 2009-2010 Grant Adjustments (JAG Grant -Swat Trailer; Boating & Waterway Grant) Revenue Adjustment (Apartment Inspection fee; Ambulance Billing) MID -YEAR REVISED FOR FY 09-10 @ 1-4-2010 CITY MANAGER'S RECOMMENDATIONS (See Schedule 1) ATTACHMENT B General All Fund Other 001 Funds $ 51,565 25,000 $ 400,000 25,000 $ 451,565 $ 79,315,276 $ 52,077,211 $ 27,238,065 $ 241,000 $ 241,000 $ - MID -YEAR REVISED FOR FY 09-10 @ 1-26-2010 $ 80,032,841 $ ^52,343211 �$� 27,689,630 1 ALL FUNDS - • . TOTAL 1 $ 51,565 2 $ 425,000 $ $ 476,565 $ ATTACHMENT B General All Fund Other 001 Funds $ 51,565 25,000 $ 400,000 25,000 $ 451,565 $ 79,315,276 $ 52,077,211 $ 27,238,065 $ 241,000 $ 241,000 $ - MID -YEAR REVISED FOR FY 09-10 @ 1-26-2010 $ 80,032,841 $ ^52,343211 �$� 27,689,630 1 Departments City Attorney City Clerk City Manager/Council Community Development Community Services Economic Development Finance Fire Library Management Services Police Public Works Authorized Positions 1/4/2010 1/26/2010 Revised Revised Adopted Revised Revised 2007-2008 2008-2009 2009-2010 2009-2010 2009-2010 EXHIBIT B Revised Projection 2010-2011 3.50 3.50 3.50 3.50 3.50 3.50 3.00 2.00 2.00 2.00 2.00 2.00 8.70 8.70 8.70 8.70 7.70 7.70 29.50 27.50 25.50 24.75 24.75 24.75 64.20 64.20 63.20 62.20 61.40 61.40 5.00 5.00 5.00 5.00 5.00 5.00 11.00 11.00 11.00 11.00 11.00 11.00 81.00 77.00 76.00 71.00 71.00 71.00 21.70 24.20 22.09 22.09 22.09 22.09 33.68 33.68 33.68 33.68 31.68 31.68 105.00 104.00 100.00 97.00 90.00 90.00 78.80 75.80 65.80 62.80 60.80 60.80 Grand Total 445.08 436.58 416.47 403.72 390.92 390.92 General Notes: The above -authorized positions are presented as full-time equivalent employees (FTE's) based on various workweek hours as negotiated in employee agreements. The totals by department reflect a combination of full-time or permanent part-time positions that are entitled to all or pro -rated benefits in accordance with the negotiated agreements for employees or individuals who are under contract. The totals reflected above, or in the detail department program sections, do not include temporary or seasonal employees that are utilized for short-term or specific reasons during the year. Revised Projected Adopted Revised Revised Projection Source of Funding of Positions: 2008-2009 2009-2010 2009-2010 2009-2010 2010-2011 City 415.20 395.09 382.34 369.54 369.54 Redevelopment Agency 7.38 7.38 7.38 7.38 7.38 San Rafael Sanitation District 14.00 14.00 14.00 14.00 14.00 436.58 416.47 403.72 390.92 390.92 2009-2011 CITY MANAGER RECOMMENDATIONS ROUND #2 SCHEDULE I FY 2009-2010 FY 2010-2011 $ (3,550,000) $ (4,440,000) -TOTAL DEFICIT j $ 1,872,000 $ 2,670,800 -CC January 4, 2010 Reductions $ 906,800 $ 2,536,000 <-CC January 26, 2010 Recommended Reductions $ (771,200) $ 766,800 <-Remainin�4 deficit tive tw $ (4,400) <-cumulao year gap Dept. / $ 100,000 Savings Staffing Savings or Staffing CM/MGMT CM/MGMT Sargaining $ 159,000 or Revs Loss Revs Loss Recom. Recom. Group Budget Option FY 09-10 FY 09A 0 IY 10.11 FY 10-11 IY 09-10 FY 10-11 F ,Pombine(1(tecQAmi ed Reductions Use of 6G funds for staff time on ADA Mgt. curb rampproject (engineering) $ - Employee Concession - Furlough - includes two chiefs, all non -safety managers, and already in Mgt. elected officials (7) budget already in Local 1 Employee Concession - Furlough budget already in SEIU Employee Concession - Furlough budget already in WCE Employee Concession - Furlough budget Building reductions (contract services & CD allocation) $ 32,200 FIN Position reallocation $ 42,100 Use of one time TBR/PLF funds and LIB develorent of strategic Ian $ 241,000 Reduction of funding �or Library services; pending strategic plan results and decision LIB on possible library tax measure. $ - PW Sweeper Operator l $ 101,300 Position elimination - Assistant to the City CM Manager $ 57,800 San Rafael Community Center position CS elimination - Program Coordinator $ 35,000 Additional Position Elimination and work MS schedule reduction $ 21,600 Position elimination - Employee Benefits MS Analyst $ 71,300 PD Police Evidence and Property Technician l $ 15,000 PD Police Officer(s) $ 37,500 Position eliminations (Park Ranger, Personnel Manager, Police Communications Dispatcher, Call PD Taker/Records Specialist $ 241,600 PW Equipment Services Attendant $ 10,400 l � JANUARY 26, 2010 TOTAL $ 906,800 1 I I 0.00 $ 100,000 0.00 $ - $ 100,000 N/A $ 159,000 N/A $ - $ 159,000 N/A $ 18,000 N/A $ - $ 18,000 N/A $ 294,000 N/A $ - $ 294,000 N/A $ 34,000 N/A $ - $ 34,000 0.00 $ 36,300 0.00 $ 32,200 $ 36,300 0.00 $ 84,200 0.00 $ 42,100 $ 84,200 0.00 $ - N/A $ 241,000 $ - 0.00 $ 241,000 TBD $ - $ 241,000 1.00 $ 101,300 1.00 $ 101,300 $ 101,300 1.00 $ 115,600 1.00 $ 57,800 $ 115,600 0.80 $ 75,000 0.80 $ 35,000 $ 75,000 1.00 $ 117,600 1.00 $ 21,600 $ 117,600 1.00 $ 142,600 1.00 $ 71,300 $ 142,600 1.00 $ 127,400 1.00 $ 15,000 $ 127,400 2.00 $ 318,500 2.00 $ 37,500 $ 318,500 4.00 $ 483,200 1.00 $ 88,300 12.80 $ 2,636,000 1/22/2010 PAGE 1 4.00 $ 241,600 $ 483,200 1.00 $ 10,400 $ 88,300 12.80 $ 906,800 $ 2,536,000 i 1 I Dept / WOption Bargaining Group Budget Other Reduction Possibilities Planning reductions (elimination & reallocation) - Associate Planner - Net 1,872,000 savings would be $17,500 for 09/10 & CD $34,900 for 10/11 Employee Concession - None at this time Police MM (5% is $47,000) Employee Concession - None at this time SRPA (5% is $446,000) (771,200) Employee Concession - None at this time Fire COA (5% is $25,000) Employee Concession - None at this time SRFA (5% is $253,000) 1/22/2010 2009-2011 CITY MANAGER RECOMMENDATIONS ROUND #2 SCHEDULE I $ (3,550,000) $ (4,440,000) <—TOTAL DEFICIT I $ 1,872,000 $ 2,670,800 <–CC January 4, 2010 Reductions I $ 906,800 $ 2,536,000 <–CC January 26, 2010 Recommended Reductions $ (771,200) $ 766,800 <----Remaining deficit $ (4,400) <-cumulative two year gap Savings Staffing Savings or Staffing CM/MGMT CM/MGMT or Revs Loss Revs Loss Recom. Recom. FY 09-10 FY 09-10 FY 10-11 FY 10-11 FY 09-10 FY 10-11 $ - 0.00 $ - 0.00 $ - $ already in budget $ - N/A $ - $ - $ - N/A $ - $ - already in budget $ - N/A $ - $ - $ - N/A $ - $ - PAGE 2 Autho. A Positions (2007 -Present) Authorized Positions including CM recommendations as of January 26, 2010 City Clerk City Attorney 1%(2) City Manager/Council 1%(35) 2% (7.7) Public Works_ 16% (6o.8) Community Deve opmenl 6%(2475) Community Services 16%(614) Police 22% (9o) Management Services 8%(3168) Ubrary 6%(22.09) Fire 18%(71) Economic Development 1%(5) Finance 3%(11) Authorized Positions including CM recommendations as of January 4, 2010 City Clerk City Attorney 0%(2) City Manager/Council Public Works 1%(35) 2% (8.7) 16% (62 8) Community Development 6%(24.75) Community Services 15%(62.2) Economic Development 1%(5) Police A 26%(97) Finance 3%(11) Fire 18%(71) Management Services 1 8%(3368) Library 6%(22.09) Authorized Positions including CM recommendations as of July 6, 2009 City Clerk City Attorney 0%(2) City Manager/Council Pubi c Works _ 1%(3,5) 2% (8.7) 16%(65.8) Community Development 6%(255) Police 26% (too) Management Services 8%(3368) Community Services 15%(63.2) Economic Development 1%(5) Finance 3% (11) Fire 18% (7s> Library 6%(2209) Exhibit A Position Reductions TOTAL: 12.80 FTE CM. Assistant to the City Manager CS: Youth Services Program Coordinator (.80 FTE) MS: Employee Benefits Manager, Network Support Tech Police: Ranger Marine, Personnel Manager, Dispatcher, Property Clerk, Police Officers (2), Evidence & Property Tech PW.- Sweeper Operator, Equipment Service Attendant TOTAL POSITIONS: 390.92 Position Reductions TOTAL: 12.75 FTE CDD: Administrative Assistant (.75 FE) CS: Administrative Assistant II Fire: Training Officer, Firefighter (4 suspended positions) Police: Police Officer (3 positions) PW.- Park Maintenance Worker II (2 positions), Street Maintenance Worker II TOTAL POSITIONS: 403.72 Position Reductions TOTAL: 20.11 FTE CDD: Assistant Planner, Fire Prevention Inspector CS: Cultural Affairs Supervisor Fire: Administrative Analyst, Administrative Chief Officer, Administrative Assistant to the Fire Chief. ADDED: EMS Coordinator, Training Officer Library: Librarian 1/11(.58 FTE), Library Aide (.53 FTE), Senior Library Assistant Police: Dispatcher, Police Officer (3 suspended positions) PW., Operations & Maintenance Manager, Street Maintenance Supervisor, Supervising Street Maintenance Worker, Street Maintenance Worker 111, Park Maintenance Worker 111, Park & Graffiti Worker, Public Works Inspector, Senior Associate Engineer, Land Development Engineer, Street Maintenance Supervisor TOTAL POSITIONS: 416.47 Publi 17°r Police 23%(104) Authoriz Positions (2007 -Present) Authorized Positions for 08109 as amended City Attorney City Clerk 1%(35) 0%(2) Ciy ManagenCouncil management becomes Library 8%(33.68) 6%(24.2) Exhibit A �velopmenl F.6) Position Reductions TOTAL: 8.50 FTE CC: Administrative Assistant to the City Clerk CDD: Code Enforcement Officer, Planning Technician immunity Services 15%(64.2) Fire. Admin Analyst, Dispatcher (3) Library. • ADDED: Grant Funded Positions (2.50) Economic MS: Network Support Technician. ADDED: OES Coordinator Development (contract) 1%(5) Police: Business Office Manager Finance PW Street Maintenance Worker III, Parks Maintenance 3% (1 Worker 1/II, Civil Engineer, Principal Civil Engineer, City Traffic Engineer. ADDED: SRSD District Manager, Assistant Public Works Director TOTAL POSITIONS: 436.58 Authorized Positions for 07108 as amended City Clerk City Attorney o 0 1 /o (3) CityManager/Council Public Works 1%(3.5) (3.5) 2%(8.7) „'11V77_ 1896 (78.8)4` f' � Community Development iI 7% (29 5) Police 23% (105) Fire 18%(81) Management Services 8%(3368) Library 5%(21.7) Community Services 14% (64.2) Economic TOTAL POSITIONS: 445.08 Development 1%(5) Finance 2%(11) Autho_ ed Positions (2007 -Present) Authorized Positions including CM recommendations as of January 26, 2010 CityClerk City Attorney -1%(2) City Manager/Council 1%(3.5) . — 2%(7.7) Publi^ 169 Police 22%(90) Management Services 8%(31.68) Library 6%(22.09) ty, Development o (24.75) rmmunity Services 16%(61.4) 18%(71) Economic Development 1%(5) Finance 3%(11) Authorized Positions including CM recommendations as of January 4, 2010 City Clerk City Attorney 0%(2) City Manager/Council Public Works 1°/x(35) 2%(8.7) Police 25%(97) M 8%(3368) Library 5%(2209) Development 24.75) :ommunity Services 15%(62.2) Economic Development 1%(5) Finance 3%(11) re i(71) Authorized Positions including CM recommendations as of July 6, 2009 City Clerk City Attorney 0%(2) City Manager/Council Public Works 1%(3.5) 2%(8.7) 16%(65.8) Community Development 6%(25.5) Community Services r 15%(63.2) 'f Economic r Developmei 1%(5) Police 25% (1 oo) Finance 3%(11) Fire Management Services 18%(76) 8%(33.68) i Library 5% (22.09) Exhibit A Position Reductions TOTAL: 12.80 FTE CM: Assistant to the City Manager CS: Youth Services Program Coordinator (.80 FTE) MS: Employee Benefits Manager, Network Support Tech Police: Ranger Marine, Personnel Manager, Dispatcher, Property Clerk, Police Officers (2), Evidence & Property Tech PW.' Sweeper Operator, Equipment Service Attendant TOTAL POSITIONS: 390.92 Position Reductions TOTAL: 12.75 FTE CDD: Administrative Assistant (.75 FE) CS: Administrative Assistant II Fire: Training Officer, Firefighter (4 suspended positions) Police: Police Officer (3 positions) PW.- Park Maintenance Worker II (2 positions), Street Maintenance Worker II TOTAL POSITIONS: 403.72 Position Reductions TOTAL: 20.11 FTE CDD: Assistant Planner, Fire Prevention Inspector CS: Cultural Affairs Supervisor Fire: Administrative Analyst, Administrative Chief Officer, Administrative Assistant to the Fire Chief. ADDED: EMS Coordinator, Training Officer Library. Librarian 1/11(.58 FTE), Library Aide (.53 FTE), Senior Library Assistant Police: Dispatcher, Police Officer (3 suspended positions) PW. • Operations & Maintenance Manager, Street Maintenance Supervisor, Supervising Street Maintenance Worker, Street Maintenance Worker III, Park Maintenance Worker 111, Park & Graffiti Worker, Public Works Inspector, Senior Associate Engineer, Land Development Engineer, Street Maintenance Supervisor TOTAL POSITIONS: 416.47 Authoriz, Positions (2007 -Present) Authorized Positions for 08/09 as amended City Attomey City Clerk Manager/Council 2%(8.7) Public WorksCommunity Development 17%(75.8) 6%(27.5) Police 23%(104) Community Services 15%(64.2) Management Services Library 8%(33.68) 6%(24.2) Economic Development 1%(5) Finance 3%(11) Authorized Positions for 07108 as amended City Clerk City Attorney 1%(3) City Manager/Council Public Works 1%(3.5) 1 i 2%(9.7) 18%(78.8) Community Development --- 7%(29.5) Community Services 14%(64.2) Economic Development 1%(5) Police 23% (105) Fire 18%(81) Management Services 8%(33.68) Library 5%(21.7) Finance 2%(11) Exhibit A Position Reductions TOTAL: 8.50 FTE CC: Administrative Assistant to the City Clerk CDD: Code Enforcement Officer, Planning Technician Fire. Admin Analyst, Dispatcher (3) Library. ADDED: Grant Funded Positions (2.50) MS: Network Support Technician. ADDED: OES Coordinator (contract) Police: Business Office Manager PW: Street Maintenance Worker III, Parks Maintenance Worker 1/11, Civil Engineer, Principal Civil Engineer, City Traffic Engineer. ADDED: SRSD District Manager, Assistant Public Works Director TOTAL POSITIONS: 436.58 TOTAL POSITIONS: 445.08 Exhibit C Overview of Employee Compensation Reductions, as of January 22, 2010 (General Fund impact) The below chart illustrates a general overview of employee compensation reductions and their approximate value. The percentages shown indicate the approximate savings of salary and salary -related costs to the General Fund for the specific bargaining unit/group. For example, a 5% savings in Fiscal Year 2009-2010 would indicate that the employees in the group earned 5% less that year as compared to the prior year. Bargaining Unit or Group FY 2009/2010 FY 2010/2011* Non -safety regular and supervisory Furlough (value — 5%) Furlough (value — 5%) employees (non -management) — SEW Local 1021 Public Works engineers — Western Furlough (value — 5%) Furlough (value — 5%) Council of Engineers (WCE) Confidential Employees — Public Employees Union, Local 1 Elected Officials — Mayor, City Council, City Attorney, City Clerk Furlough (value — 5%) Furlough (value — 5%) Furlough or Salary Reduction (value — 5%) Furlough or Salary Reduction (value — 5%) Unrepresented Management - Furlough (value — 5%) Furlough (value — 5%) includes Police and Fire Chiefs, all Department Directors, City Management Unrepresented Mid -Management — Furlough (value — 5%) Furlough (value — 5%) non -safety mid -managers Police Mid -Management Police Officers and associated positions — San Rafael Police Association Fire Battalion Chiefs - Fire Chief Officers' Association Firefighters and associated positions — San Rafael Fire Association Furlough (value — 3%) None Reduction in Holiday Pay (value — 3%) Existing 3 -year contract includes on average 3% salary increases for FY 08/09, 09/10, and 10/11. Fire Association deferred by six months the scheduled increase for 09/10 and 10/11. None None None Existing 3 -year contract includes on average 3% salary increases for FY 08/09, 09/10, and 10/11. Fire Association deferred by six months the scheduled increase for 09/10 and 10/11. * All values are per a Statement of Intent except for the Fire Association which is per a Side Letter. EXHIBIT D City of San Rafael January 2010 Recent Economic Development Activity • Target is in contract for acquisition of a portion of the Shoreline site and has been meeting with staff regarding their application for a new store. • Northgate re -opened with several new stores and restaurants. Marin County Farmers' Market is in discussion with Macerich to relocate from the Civic Center to Northgate, in the Oak Tree Plaza area. • Northgate One has commenced renovation and has re -tenanted the Pier One space with a Walgreens. • CVS Pharmacy is re -tenanting the former Elephant Pharmacy on Grand Ave. • 2350 Kerner office development is now fully leased up. • Mi Pueblo Foods is under construction at the former Circuit City site on Kerner. • California Cancer Care has leased 31,798 square feet of office space at One Thorndale. • "Room" Gallery opened at 1320 Fourth, the former Papyrus location, and the Golden Orb opened at 811 Fourth (former Royal Frank). • Arizmendi Bakery is under construction at 1002 Court at the Rafael Town Center and is expected to open within a month. • Pizza Orgasmica, a brewpub & pizzeria signed a lease at the former Rafters at 812 Fourth Street. • Marin History's "Marin Rocks" exhibit on Fourth Street has been approved. Tentative opening this Fall. • Negotiations are underway for leases of the former locations of. Yardbird's, GM dealership, Thomasville Furniture and New George's. Recent Business Assistance and Promotion Efforts • Initiated a "Shop San Rafael" campaign with the Chamber of Commerce and Downtown Business Improvement District. • Improved "Business Assistance" web page to provide information and links for opening or expanding a business. • Met with Chamber and BID to talk about immediate actions the City can take to assist businesses such as discounted parking passes, grand opening banners, improving sign permit timelines, and clarifying the "rules" for how to open a new business. • At the request of the Chamber and BID, conducted a "Coffee and Codes" meeting on the topic of sign regulations. Additional meetings are being scheduled with larger real estate broker offices to discuss City process for all types of permits. 0 Installed new LED twinkle lights along Fourth Street to promote the Downtown area.