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Desk Itemr DATE: MAY 19, 2014 MEETING DATE: 05/19/14 ITEM NO: 6 DESK ITEM TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: OPERATING AND CAPITAL BUDGETS A. CONSIDER THE TOWN OF LOS GATOS PROPOSED OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2014/15 B. CONSIDER THE TOWN OF LOS GATOS PROPOSED CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEARS 2014 -2019 C. PROVIDE DIRECTION REGARDING ANY CHANGES TO THE FISCAL YEAR 2014/15 OPERATING AND CAPITAL BUDGET OR THE 2014 -2019 CAPITAL IMPROVEMENT PROGRAM BUDGET REMARKS: Provided below are responses to Council inquiries for this agenda item, but the asterisked questions may also be relevant for the Police Budget Study Session. The Council inquiries have been consolidated or grouped where appropriate, and are organized by General Questions, Departmental Questions, and Capital Budget Questions. GENERAL QUESTIONS I. Given that the Town is forecasting a $500,000 budget shortfall next year and other "budgetary challenges and reprioritizations," what is the argument for increasing any budget item this year? (Transmittal Memo page A -4): The conservative projection of a $500,000 budget challenge in forecast years two and three represents a one -time challenge of 1 % of the operating budget, not an ongoing structural deficit, as shown by the later year forecasts. Staff remains cautiously optimistic that ongoing economic improvements and a continuing focus on expenditure controls and service realignments to meet operating needs and changes will be sufficient to manage the short term challenge without service reductions. At the same time, the net 30 cumulative full -time equivalent position reductions (from 168 to 13 8) of the past 10 years are straining the organization's capacity to respond to and sustain currently rising workloads and new priorities of the Town Council and community. Reviewed by: Assistant Town Manager Town Attorney 0ffilance PAGE MAYOR AND TOWN COUNCIL SUBJECT: FY 2014/15 OPERATING AND CAPITAL BUDGETS MAY 19, 2014 Consequently, the proposed budget is predicated on the following strategies: ■ Reorganizations in Police, Community Development and the Town Manager's Office to realign positions for better service delivery and management without increased costs or a net increase in staff positions, as was done this fiscal year in the Library. One time additions which do not contribute to future year budget challenges but help meet current priorities and needs: ➢ Planning Tech to develop online resources for community access ➢ Hire -ahead police officer as presented at the Mid -Year Budget Review ➢ Increased temporary staffing in Police and Parks & Public Works, largely offset by operating budget savings or revenues in those departments. A few additions as prioritized by Department Directors: ➢ Continue the successful Library Police Assistant pilot from this year ➢ Restore the previously eliminated Code Compliance Officer ➢ Restore a police officer position to meet ongoing Patrol staffing needs ➢ Increase the Environmental Services Coordinator to full -time ➢ Increase a Human Resources assistant to full -time ➢ Restore the Library Collections budget to pre- recession levels. The use of additional identified one -time resources is also proposed in the Addendum. 2. How can the Council justify a $7 million dollar budget increase from last year given the anticipated deficits in later years and rising demands relating to retiree benefits? As presented on page C -6 of the Operating Budget, $4.2 million of the $7 million increase in total General Fund expenditures from Estimated FY 2013/14 to Budget 2014 /15 are directly due to the transfer of accumulated one time funds for capital projects (e.g., Almond Grove) as detailed in the CIP. Another $1.2 million is due to next year's contractually obligated and unavoidable increases for rising PERS pension and medical costs, plus the 2 % pay increase for non -sworn employees. $500,000 is the net addition of new staffing and resources to sustain core services, plus $400,000 of one time or temporary obligations., as detailed above. $764,000 is a pass -thru increase to both revenues and expenditures for State realignment funding, as described below. The five -year forecast presented in the Budget Transmittal includes fiscally- prudent assumptions for future pension and medical cost increases. As detailed above in the answer to question 1, staff remains cautiously optimistic that future forecast assumptions can be met without service reductions. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: FY 2014/15 OPERATING AND CAPITAL BUDGETS MAY 19, 2014 3. What is basis for the statement that "The last six years have required significant budget reductions in both expenditures and revenues" given the documentation that shows increases? The referenced quote from the beginning of the transmittal letter for the Proposed Operating Budget was reflecting the impact of the Great Recession on discretionary General Fund operating budget tax revenues and expenditures and should have more explicitly stated such. It was not intended to include pass - through revenues and expenses, capital projects, property sales, or State budgetary actions which make year -to -year fiscal comparisons challenging. As presented in the Proposed Budgets and Five Year Forecasts for each of the last five years since the beginning of the Great Recession, the Town has faced projected and budgeted declines in key general operating revenues (most notably Property Tax and Sales Tax, but also Business License and Transient Occupancy Tax) as well as increased operating expenses driven by rising PERS pension costs, medical costs for employees and retirees, and contractually obligated sworn employee pay increases. It was these uncontrollable revenues and rising expense that created projected funding gaps for Los Gatos and most municipalities during the Great Recession. As a result, the Town has considered and adopted General Fund operating budget reductions each year now totaling a cumulative net reduction of over 20 benefitted positions, unpaid furloughs, and decreases in non - personal expenses. In addition, the Town has relied on one -time revenues and transfers to meet the operating budget requirements. Note also that the Town's fiscally prudent forecasting and budget model should and has resulted each year in actual revenues exceeding budget and actual expenditures less than budget, providing a recurring source of one time funding for capital and other projects. Further, given the capital and one -time funds are reported in the actual financial reports, year -to year comparison outside of the budget process is challenging. 4. Please explain the missing Community Services information (Operating Budget, page C -41). No information is missing as the Community Services Department was eliminated in FY 2010/11 as a budget reduction and reorganization. The Community Services Department previously staffed the Arts & Culture Commission and the Community & Senior Services Commission, coordinated Town grants and non -profit organization relationships, Town events, environmental services and the Neighborhood Center (now called the Adult Recreation Center). Those staff positions were subsequently eliminated or downgraded as budget reductions and re- assigned to the Town Manager's Office and Parks & Public Works. There is no Community Services staffing information available after 2010/11 and is only included that year for historical comparisons. PAGE MAYOR AND TOWN COUNCIL SUBJECT: FY 2014/15 OPERATING AND CAPITAL BUDGETS MAY 19, 2014 5. *The largest jump in revenues is "Other Sources." What are those? Other Sources of revenue consist of unique or otherwise uncategorized revenues, which next year will include $130,000 of additional garbage waste contract revenues, $80,000 in Albright election settlement monies, and $40,000 in General Plan update revenues. The preponderance of the funds however, and the source of the large increase, is the Town's anticipated receipt of $764,000 from the State for local efforts to implement Public Safety Realignment (which may increase with approval of the State budget). The Town serves solely as a fiscal agent for these funds with matching revenues and expenditures. The funds are allocated to the public safety regional task force. The proposed budget includes a $70,000 reimbursement of these funds to the Town to partially cover costs for the Town's participation in the regional task force. 6. Please confirm the $500,000 increase in sales tax. Next year's sales and use tax revenues are expected to increase $506,000 over the current year's adopted budget and $436,000 over the current year's estimated actual. 7. Please explain the $100,000 increase in property taxes (Operating Budget, page A -3). Per the detail provided on page C -18, projected property tax revenue next year is expected to be $426,000 over the current fiscal year budget and $30,000 over the current fiscal year end estimated actual. The apparent $100,000 increase in the summary table on page A -3 is overstated due to rounding. 8. Please confirm that the Manager's Contingency has no carry forward funding. Correct. During the first year of the recession, the Town Manager's Contingency Fund was reduced to zero while the Productivity Fund was retained at the original level of $100,000. 9. What are "Confidential Salaries "? Why are they confidential? And why do they have a 5% premium? (Operating Budget, page C -47) In accordance with the California Government Code, the Town is permitted to designate certain positions as "confidential" and as such, those positions are exempt from bargaining on matters within the scope of employment. By statute and Town resolution, Confidential positions are defined as those that are privy to decisions of Town management affecting employer- employee relations. In recognition of this Confidential designation, these positions are paid a 5% Confidential premium. This long - standing policy of paying a premium to Confidential positions is consistent with other public employers throughout the State. Confidential positions and salaries are public information similar to all Town positions and salaries. PAGE MAYOR AND TOWN COUNCIL SUBJECT: FY 2014/15 OPERATING AND CAPITAL BUDGETS MAY 19, 2014 10. *What other departments, if any, pay overtime, and how does that cost compare to Police Department costs? (Operating Budget, page C -39) The Police Department is the primary user of significant amounts of overtime, primarily for leave and vacancy coverage, special events, major incidents, and training, and the Police Department regularly reallocates vacancy savings to overtime to meet minimum staffing requirements in Dispatch, Patrol and Investigations. Parks & Public Works also accrues overtime for after -hours work (e.g., storm events, holiday parade), but relies more on temporary employees for vacancy and leave coverage. • Budget Figures 11. *Which employees /departments receive overtime when they work over 40 hours /week? The Town is required to comply with the federal Fair Labor Standards Act (FLSA), which establishes that employees must be paid overtime unless their position is specifically exempted. Exempted positions must meet the FLSA standards for Executive, Administrative or Professional positions. As such, all Town employees are paid overtime except for the following positions deemed "exempt" under FLSA: • Management Employees (including the sworn Captains and Chief) ■ Associate Planners and Senior Planners (TEA) • Human Resources Analyst (Confidential Employees unit) Overtime By Department 2011/12 2012/13 2013/14` 2014/1S- Proposed Town Council $ 50 $ - $ 1,165 $ 1,187 Town Manager $ 143 $ 83 $ 1,165 $ 1,187 Human Resources $ 1,119 $ 286 $ - $ Finance $ 8,743 $ 6,559 $ 10,150 $ 10,350 ClerkAdmin $ 189 $ - $ - $ 6,635 CDD $ - $ 6,643 $ 983 $ - PPW $ 21,830 $ 19,192 $ 44,245 $ 45,449 Library $ 1,540 $ - $ - $ - Police $ 455,552 $ 614,950 $ 309,091 $ 313,866 Total Overtime $ 489,165 $ 647,714 $ 366,798 $ 378,674 %Police Overtime 93% 95% 84% 83% % Non - Police Overtime 1 7% 5%1 16% 17% • Budget Figures 11. *Which employees /departments receive overtime when they work over 40 hours /week? The Town is required to comply with the federal Fair Labor Standards Act (FLSA), which establishes that employees must be paid overtime unless their position is specifically exempted. Exempted positions must meet the FLSA standards for Executive, Administrative or Professional positions. As such, all Town employees are paid overtime except for the following positions deemed "exempt" under FLSA: • Management Employees (including the sworn Captains and Chief) ■ Associate Planners and Senior Planners (TEA) • Human Resources Analyst (Confidential Employees unit) PAGE 6 MAYOR AND TOWN COUNCIL SUBJECT: FY 2014/15 OPERATING AND CAPITAL BUDGETS MAY 19, 2014 12. *Pension and Medical Cost Increases: How much of the "uncontrollable medical and Ca1PERS retirement rate increases" are attributable to sworn Police Department personnel? Is it possible to control some of these costs through the current re- negotiation of the Police MOU? What options does the Town have in addition to "monitoring" state -wide initiatives in order to control pension costs for Town employees? (Operating Budget pages A -4 and C -38): Projected Ca1PERS and medical rate increases for five years are as follows, assuming the current staffing levels (obviously, changes in staffing would change total pension and medical costs): Projected CalPERS and Medical Rate Increases FY 13 -14 FY 14-15 FY 1S -16 FY 16-17 FY 17 -18 Sworn Staff $ 1.8 $ 2.2 $ 2.5 $ 2.7 $ 2.9 Non -Sworn Staff $ 2.0 $ 2.1 $ 2.5 $ 2.7 $ 3.0 Total $ 3.8 $ 4.3 $ S.0 $ S.4 $ S.9 ($ in millions( It may be possible to reduce in the future otherwise uncontrollable medical and Ca1PERS rate increases if so agreed through the labor negotiation process. The primary negotiable terms to reduce those future costs might include: Reduce or eliminate retiree healthcare payments; Increase employee payments toward current medical and other benefits; or Increase employee payments toward pension costs. The selection of negotiation priorities is typically done by the Town Council in Closed Session, ultimately resulting in public Council adoption of whatever terms have been agreed to by both the Town and the employee bargaining unit. For non -sworn employees, the Council has already adopted new contracts which provide for a lower pension for new hires, increased medical benefit co- payments, and reduced healthcare payments when retirees are Medicare eligible. A Town - established lower pension tier for new sworn employees is now prohibited by State law, which has imposed a lower tier for new police hires (not laterals from other agencies) as well as a third lower tier for non -sworn employees. Hiring new employees under these lower tiers will also reduce Town costs long term, but for the next several years that will typically only be possible for entry level positions. Last, the Budget Staff Report includes discussion of a potential sworn pension side letter obligation that could be paid off next year if the Council so chose, and thereby reduce future sworn employee pension costs. Staff will be developing and reporting back on this proposal by the end of the calendar year. PAGE MAYOR AND TOWN COUNCIL SUBJECT: FY 2014/15 OPERATING AND CAPITAL BUDGETS MAY 19, 2014 13. *What is the explanation for the PERS contribution increase of 43.87% for safety personnel vs. 22.38% for "miscellaneous" employees? The rates are set by Ca1PERS based on actuarial experience and assumptions. The safety rate is substantially higher than the miscellaneous (non -sworn) rate because it is a more expensive benefit. The following factors make the safety plan more costly than the miscellaneous plan: • earlier retirement age for safety (typically 5 years earlier); • higher percentage paid to safety officers as pension (typically .5% higher); and • salaries earned by safety officers are generally higher than miscellaneous salaries; thus the benefit is calculated on a larger base, resulting in a larger pension paid to safety officers. 14. Which employees receive short and/or long -term disability benefits? (Operating Budget, page C -37) Short and/or long -term disability benefits are provided to all benefitted employees who suffer a non -work related disability, consistent with the California Unemployment Insurance Code and Town labor agreements. The short and long -term disability plans cover non -work related medical conditions such as pregnancy, non - industrial cancers and orthopedic injuries. The Town periodically conducts an RFP /vendor review to ensure competitive rates. Changes to current benefit levels would require collective bargaining with the affected employee groups. Note: The proposed budget includes the following statement that was carried over in error from the prior year. This statement applied previously but does not apply to FY 2014/15 and will be omitted from the final budget document: "...short and long -term disability insurance costs are increasing significantly due to changes in the market and an increase in claims." DEPARTMENTAL QUESTIONS 15. Please explain the $240,000+ of expenditures in the Council budget and the $250,000+ in the Attorney budget. (Operating Budget, page D4) The $212,000 attributed to the Town Council includes salary and benefits for the five members of the Council, half of the Executive Assistant responsible for scheduling and communications on behalf of the Mayor and Council, one -third of the office clerk supporting the Council and the preparation of Council materials, as well as direct expenses and supplies for the Mayor and Council. This has been the long - standing allocation of time and resources to directly support the Council. PAGE MAYOR AND TOWN COUNCIL SUBJECT: FY 2014/15 OPERATING AND CAPITAL BUDGETS MAY 19, 2014 Similarly, the Town Attorney Office budget is reflected as has been the long - standing practice of the Town, with one -third of the Town Attorney and one half of the Deputy Town Attorney (previously a paralegal) allocated to insurance programs rather than the Town Attorney's Office itself. 16. What is the anticipated savings attributable to tablets? At a minimum, resources allocated to the Council packet should be discussed and decreased. (Operating Budget, page D -7) As discussed in the staff report when Council approved the use of tablets for digital packets, the use of digital tablets will save costs related to paper and ink over the long term. This may be in the range of from $14,000 to $18,000 per year. However, there is no proposed reduction this year because of the anticipated start up and training time required, and the unknown participation rate in the program which will affect the number of hard copy agenda packets prepared. It is expected that this savings can be captured in the following year's budget. Any cost savings in paper this year will roll to the ending fund balance at the end of the year. Regarding the expected workload benefits for several positions, the savings in staff time can be devoted to other responsibilities and priorities, which could reduce the need for administrative staff additions in the future. The greater long -term benefits lie in the increased functionality, flexibility, and accessibility of Council and Commission agenda packets. 17. What is the concept behind strengthening the linkage between the Community Development Department and the Town Manager's Office? (Operating Budget, page A -5) Given the number of significant planning projects ahead, as well as increasing Council consideration of possible changes to past policy direction, it is important to strengthen the linkage between planning staff and policy maker direction through the Town Manager's office for both efficiency and effectiveness. The consolidation of the Community Development Director and Assistant Town Manager positions strengthens this linkage and allows delegation of other work to other positions. In addition, land use issues continue to be very important to the community and warrant direct linkage with the Town Manager's Office. 18. Please explain what is meant by the Town Manager providing oversight to the North 40 process ((Operating Budget, page D -29). The Town Manager oversees all significant projects in every department to varying degrees based on complexity, Town Council interest, scale and other factors. Following the re- direction of the North 40 process in early 2012, the Town Manager took a more active role in the re- visioning and coordination of the North 40 process, and that prior workload expectation was simply carried over to next fiscal year. PAGE 9 MAYOR AND TOWN COUNCIL SUBJECT: FY 2014/15 OPERATING AND CAPITAL BUDGETS MAY 19, 2014 19. Would the Chamber be able to reduce expenses if it did not service the Town? If so, how much? (Operating Budget, page D -56) This question was forwarded to the Chamber of Commerce for response, as follows. If the Chamber did not provide the services to the Town included in the agreement (i.e., Town Information Center and Leadership Los Gatos), it would not be able to reduce expenses, as the services are intertwined with services the Chamber provides. The economies of scale associated with using Chamber staff to provide information and material to residents and visitors allow the Chamber to provide these services to the Town cost - effectively. It is likely that the same number of residents and visitors would continue to seek information and assistance from the Chamber. The Chamber could not reduce its staff and still meet the needs of its members and the business community in general. Opportunities to increase funding are limited, as well. Raising membership rates would place a burden on many small businesses, and would likely result in some businesses not being able to continue their memberships. This would further reduce the Chamber budget. It is also not likely that the Chamber could sponsor additional fundraising events throughout the year, given the current staffing and the likelihood that the community may not support additional fundraisers. As noted in the budget staff report, the agreement with the Chamber is a cost- effective way to provide information to residents, visitors and businesses and to provide coordination of Leadership Los Gatos. Providing these services in -house would require additional staffing. In addition, the partnership with the Chamber strengthens the Town's connection to the business community. 20. Can further restructuring be achieved within Community Development to achieve increased code enforcement or planning support? (Transmittal Memo page A4): The addition of a half -time Code Compliance Officer and/or Police Community Services Officer for after hours enforcement is proposed in the Addendum distributed on Friday. Workload in Community Development is already extremely high given current development, pending project review, regulatory requirements, policy review and development, and customer service demands, and is exacerbated by staff turnover and anticipated leaves of absence and transitions. The proposed restructuring and staff additions are intended to best meet these demands through the net addition of a code compliance officer, an ongoing assistant planner, a temporary planning technician, and increasing the counter planning technician from half time to full time. The new Director is evaluating the current and proposed structure for further improvements, including the possible reclassification of a Senior Planner to a management position overseeing advance planning, housing and policy development, while the remaining Senior Planner would be needed to handle larger and more complex cases. PAGE 10 MAYOR AND TOWN COUNCIL SUBJECT: FY 2014/15 OPERATING AND CAPITAL BUDGETS MAY 19, 2014 21. What is the source of the Community Development Department increases other than the Director? (Operating Budget, page C -34) The consolidation of the Community Development Director and Assistant Town Manager positions actually reduced the Director's cost to Community Development, allowing a portion of the former Director's work to be delegated to staff positions, including the addition of an Assistant Planner and moving towards a more typical Community Development Structure (Building, Current Planning, Advanced Planning, Code Compliance) to increase focus on high priority development and policy projects. The additions to Community Development that have increased that budget include: • Restoration of the Code Compliance Officer • Increase of the Counter Planning Technician to full time • Addition of an Assistant Planner for vacancy coverage and Advance Planning support • Continuation of a temporary Planning Tech for research and online resources 22. *Explain how and when the Code Compliance Officer will address late night complaints (i.e., urinating, shouting, destruction) between 10 p.m. — 2:30 a.m. (Operating Budget, page D -98) The indicated late night complaints (i.e., urinating, shouting, destruction) require Police response as criminal violations, not code enforcement matters, and will continue to be handled as Police calls for service. However, with the addition of a full time permanent Code Compliance Officer, there will be increased and consolidated tracking of both criminal and code complaints related to selected Conditional Use Permits, leading to possible fines, penalties and revocation hearings. In addition, last Friday's Addendum includes a potential half -time Police Community Services Officer addition to support and provide improved Police response to after hours noise and nuisance complaints. 23. Is the "Pass- Through Accounts" section the location for the costs of providing project consultants (e.g., arborist, traffic, EIR, architecture). Is it possible to break out the costs to each consultant? What is the opportunity or mechanism for the Council to effect changes to any of these consultant agreements through this budget presentation and approval process? (Operating Budget, page D -105) Attachment 9 is a schedule of pass - through account contractor payments to date this fiscal year. Most of the contractors are selected through formal Request for Proposals (RFP) or other purchasing processes resulting in consulting agreements approved by the Town Council. Through the Budget process, the Council may provide direction regarding changes in specifications or selection criteria for the future selection of pass - through contractors and consultants. PAGE 11 MAYOR AND TOWN COUNCIL SUBJECT: FY 2014/15 OPERATING AND CAPITAL BUDGETS MAY 19, 2014 24. *How does reclassification of the CSO positions identified to administrative positions "best meets the needs of the community and department ?" (Transmittal Memo page A-4): As explained in the Proposed Budget and the Study Session Addendum, the Community Service Officer positions are operational support positions that provide a variety of functions, such as evidence management, permit and citation processing, personnel and community outreach. As part of a comprehensive reorganization that results in no net increase of staff or budget, the CSO positions are being reclassified along with other positions to better realign work responsibilities, including restoration of the police analyst position needed to manage police finances and performance measurement and management. More clearly delineated responsibilities and increased attention on accountability and performance better meet the needs of the department and community. FOR OTHER POLICE DEPARTMENT QUESTIONS, SEE THE STUDY SESSIONMATERIALS 25. How will the Albright settlement be used to clean downtown sidewalks? (Operating Budget, page D -159) The $80,000 Albright settlement agreement to reimburse the Town's June election costs will be received early next fiscal year following receipt of final ballot measure cost documentation from the County Registrar of Voters. It is recommended that these one -time funds be used to augment Downtown maintenance and beautification, including steam cleaning of sidewalks, planter boxes, garbage and recycling cans, and street tree lighting. 26. When was a "community survey" approved and how much would it cost? (Operating Budget, page D -183) The proposed community survey is for preparation of a Parks Master Plan as the first step towards future consideration of a Parks Impact Fee for new development. As with Traffic Impact Fees, Park Impact Fees can only be used for new amenities and features related to new development, not for traditional and ongoing maintenance purposes. Identifying community- desired park amenities is a common first step for this process. Please note that this is not a community survey similar to the one proposed in previous years for development and measurement of Town -wide services and performance. Rather, this would be community outreach through focus groups and other venues to collect resident input on parks needs. The majority of costs would be staff time, with a modest amount of funds used for materials. These costs would be absorbed by the department. PAGE 12 MAYOR AND TOWN COUNCIL SUBJECT: FY 2014/15 OPERATING AND CAPITAL BUDGETS MAY 19, 2014 27. How did temporary staff increase from 200 to 1062 hours in the Streets and Signals Program? How did temporary staff increase from 350 to 996 hours in the Vehicle Maintenance Program? (Operating Budget, pages D -197 and D -210) The recommended temporary funding of $50,000 for Parks and Public Works achieved through other departmental revenues and reductions has been allocated to temporary staff hours to better respond to rising maintenance needs. The Department had requested restoration of one to two ongoing maintenance worker positions that could not be included in the Proposed Budget due to resource limitations; however, this one time allocation will enable the Department to address priority needs in the Streets and Signals and Vehicle Maintenance Programs. Prior to the Great Recession, the Town had two vehicle maintenance positions, but one of those was eliminated as a needed budget reduction. With the recent retirement of the remaining vehicle maintenance worker as well as numerous vehicle transitions, it is anticipated that a partial restoration of staffing would be required, at least on a transitional basis, since the permanent position could not be restored due to resource limitations. 28. Should the funding for the Library CSO intern be allocated among the Library, Police Department, and possibly the High School to make this CSO a "school resource officer" equivalents as well, since this is primarily a policing function? (Operating Budget, page D -237) The CSO intern almost fully supports the Library and has been budgeted in that department for this year and next. The position is a bridge between traditional library and police roles and could be split between Library and Police to reflect the Police reporting relationship, but that split is rarely done for unbenefited/hourly staff (it is more common for regular staff positions to be split between programs and even departments). Any such split would not result in any savings in that the budgeted hours and funding would be split as well. In addition, this position does not need the full costs and skills associated with a police officer SRO, which is best suited to be on and around school campuses, which is the more critical link between the Town and the High School. 29. Who determines if Library trust expenditures are appropriate under the trust document? (Operating Budget, page D -267) Through staff recommendation and Council action, Library trust funds are allocated pursuant to the Trust agreements. Staff discusses potential uses of Trust funds with the Trust - designees, when appropriate. PAGE 13 MAYOR AND TOWN COUNCIL SUBJECT: FY 2014/15 OPERATING AND CAPITAL BUDGETS MAY 19, 2014 CAPITAL BUDGET QUESTIONS 30. Confirm that the Winchester/Lark improvement is being paid for by Albright development. (Operating Budget, page D -171) As part of its approval, the Albright development is required to pay $1 per square foot ($485,000) in community benefit on top of its Traffic Impact Mitigation Fee of $165,000. The balance of the $850,000 of the intersection project cost will be funded out of the Traffic Impact Mitigation Fee fund unless the Council chooses to allocate some or all of the additional $350,000 of Albright Settlement funds to this project, which would then free up a like amount of Traffic Impact Mitigation Fee funds for other Town traffic improvement projects. The project also paid $184,000 towards the improvements at Lark and University Avenues. 31. Please explain the interest in Highway 9 — Los Gatos Creek Trail access given the intersection reconfiguration currently occurring at Highway 9 and University? (Capital Budget, page A -9) Recent improvements along Highway 9 from Los Gatos to Saratoga, including the intersection improvements underway at University, have improved the East -West bicycle connection through the West Valley. However, there is no easy connection from Highway 9 to the North -South Los Gatos Creek Trail except by going south to Main Street/Forbes Mill connections or north to Roberts or Blossom Hill Roads. The Highway 9 — Los Gatos Creek Trail interconnection will provide a missing link in the Town's overall bicycle program, and will likely be funded in part by a reallocated grant from the Santa Clara Valley Water District. 32. The Budget references that $80,000 of Albright settlement money is proposed to be used for downtown sidewalk cleaning, etc. What is the proposed use for the remaining Albright community benefit money? The $80,000 Albright settlement agreement to reimburse the Town's June election costs will be received early next fiscal year. It is recommended that these one -time funds be used to augment Downtown maintenance and beautification, including steam cleaning of sidewalks, planter boxes, garbage and recycling cans, and street tree lighting. The remaining $350,000 of additional settlement funds are to be used in proximity to the project. When those funds are received, staff will present options for Council consideration, such as funding for the Winchester -Lark intersection improvements and/or Los Gatos Creek Trail improvements adjacent to Charter Oaks. PAGE 14 MAYOR AND TOWN COUNCIL SUBJECT: FY 2014/15 OPERATING AND CAPITAL BUDGETS MAY 19, 2014 Attachments 1 — 8 Previously Received with Staff Report: 1. FY 2014/15 Proposed Operating and Capital Budget (Previously Submitted) 2. FY 2013 — 2019 Proposed Capital Improvement Program Budget (Previously Submitted) 3. Memorandum from Los Gatos Chamber of Commerce dated May 1, 2014 4. Code Compliance Quarterly Report 5. Code Compliance Performance Measures 6. Letter from Silicon Valley Housing Trust, the Silicon Valley Leadership Group, and the Cities Association of Santa Clara County Requesting Housing Funds 7. Letter from Housing Trust of Silicon Valley Requesting Housing Funds 8. FY 2014/15 List of Town Needs Attachment 9 Received with Desk Item 9. Pass - through Detail Town of Los Gatos Summary of FY 13/14 Pass- Through Expenditure Activity Dept Account Account Title /Vendor Budget YTD Expense Title COD 68411 ENVIRONMENTAL IMPACT $ 80,000.00 $ 319,399.37 COD PASS- THRU'S EMC PLANNING GROUP, INC. $ 124,408.94 GEIER& GEIER CONSULTING, INC. $ 194,990.43 COD 68412 ARCHITECT REVIEW $ 80,000.00 $ 99,780.11 COD PASS- THRU'S CANNON DESIGN GROUP $ 98,343.31 FIRM DESIGN GROUP, A CALIFORNIA CORP $ 3,973.75 COD 68413 ARBORIST REVIEW $ 80,000.00 $ 72,767.05 CDD PASS- THRU'S DAVID BABBY DBA: ARBOR RESOURCES $ 26,925.00 DEBORAH L. ELLIS $ 45,842.05 CDD 68414 TELECOMM APPLIC FEE $ 4,500.00 $ - CDD PASS- THRU'S CDD 68415 TRANSCRIPTION SERVICES $ 5,000.00 $ 4,205.00 CDD PASS- THRU'S VICKI L BLANDIN $ 4,205.00 COD 68416 PLAN CHECK $ 200,000.00 $ 311,383.43 CDD PASS- THRU'S O'BRIEN CODE CONSULTING, INC, $ 311,383.43 CDD 68417 PLANNING SERVICES CONS $ 100,000.00 $ 73,531.50 CDD PASS- THRU'S FIRM DESIGN GROUP, A CALIFORNIA CORP $ 73,531.50 CDD 68419 PASS THRU MISCELLANEOUS $ 6,000.00 $ 9,325.00 CDD PASS-THRU'S WILLIAM JEFFREY HEID $ 9,325.00 CDD 68422 GENERAL PLAN UPDATE $ 137,000.00 $ 44,402.85 CDD PASS- THRU'S CANNON DESIGN GROUP $ 7,100.10 KIMLEY -HORN AND ASSOCIATES, INC. $ 23,802.40 PLACEWORKS, INC $ 12,871.28 SILICON VALLEY COMMUNITY NEWSPAPER $ 434.07 VICKI LBLANDIN $ 195.00 PPW 68422 GENERAL PLAN UPDATE $ 50,000.00 $ 1,020.00 PPW PASS -THRUS PLACEWORKS, INC $ 1,020.00 COD 68423 SMIP @5% SAFETY SUPPLIES $ 1,000.00 $ - CDD PASS- THRU'S CDD 68424 SMIP @ 95% $ 10,000.00 $ 12,328.30 CDD PASS- THRU'S DEPARTMENT OF CONSERVATION $ 12,328.30 CDD 68426 BUILDING STANDARDS @ 90% $ 4,000.00 $ 3,627.00 CDD PASS- THRU'S CALIF BUILDING STANDARDS COMMISSION $ 3,627.00 PD 68511 DO) FINGERPRINTING $ 9,000.00 $ 6,617.00 PD PASS THRU'S STATE OF CALIFORNIA DEPT OF JUSTICE $ 6,617.00 PD 68512 BSCC /AB109 REALIGNMENT $ - $ 763,550.00 PD PASS THRU'S PPW 68611 TRAFFIC STUDY $ 55,000.00 $ 68,014.00 PPW PASS -THRUS TJKM $ 68,014.00 PPW 68612 GEOTECH REVIEW $ 45,000.00 $ 37,969.50 PPW PASS -THRUS AMEC ENVIRONMENT & INFRASTRUCTURE $ 37,969.50 THOMAS GRAMMER $ 4,350.00 PPW 68613 CONSTRUCTION & ENGINEER $ - $ - PPW PASS -THRUS PPW 68615 MAP PLAN CHECK FEE $ 25,000.00 $ 21,832.50 PPW PASS -THRUS FREYER & LAURETA $ 10,387.50 SIERRA WEST LAND SURVEYING, INC. $ 11,445.00 PPW 68616 HEINZ OPEN SPACE $ 10,000.00 $ - PPW PASS -THRUS PPW 68618 NPDES C3 REVIEW $ 10,000.00 $ 7,889.25 PPW PASS -THRUS EISENBERG OLIVIERI & ASSOCIATES $ 7,889.25 PPW 68621 STREET TREES $ 35,000.00 $ 6,875.59 PPW PASS -THRUS BONFANTE NURSERIES INC $ 2,550.00 VALLEY CRESTTREE COMPANY $ 3,293.07 ' WESTERN STAR NURSERIES LLC $ 713.88 TOWN MGR 68711 ART CAT - PUBLIC ART $ 17,838.00 $ - TOWN MANAGER PASS THRU'S TOWN MGR 68713 COMMUNITY UNITY $ 2,290.00 $ . TOWN MANAGER PASS THRU'S TOWN MGR 68715 ART CAT - BANNERS $ 1,126.00 $ - TOWN MANAGER PASS THRU'S Attachment 9 THIS PAGE INTENTIONALLY LEFT BLANK