Desk ItemMEETING DATE: 09/15/15
ITEM NO: 6
SOS cA� °g COUNCIL AGENDA REPORT DESK ITEM
DATE: SEPTEMBER 15, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER fit r
SUBJECT: LONG RANGE CAPITAL FUNDING OPTIONS:
A. IDENTIFY SPECIFIC FUNDING OPTIONS FOR FURTHER EXPLORATION;
B. IF SPECIFIC FUNDING OPTIONS REQUIRING VOTER APPROVAL ARE
IDENTIFIED BY THE TOWN COUNCIL, ESTABLISH AN AD HOC CITIZEN
COMMITTEE INCLUDING TWO COUNCIL MEMBERS AND THREE LOS
GATOS RESIDENTS TO CONDUCT THE EXPLORATION OF THE FUNDING
OPTIONS; AND
C. APPOINT TWO COUNCIL MEMBERS TO THE NEWLY FORMED AD HOC
CITIZEN COMMITTEE AND INITIATE THE RECRUITMENT FOR THE
RESIDENT MEMBERS OF THE COMMITTEE WITH THE INTENTION OF
INTERVIEWING AND SELECTING MEMBERS AT OR BEFORE THE
OCTOBER 20, 2015 TOWN COUNCIL MEETING.
REMARKS:
After the Addendum was distributed on September 14, 2015, staff received the attached public
comment.
Attachment 1 (Previously received with Addendum on September 14, 2015:
1. Correspondence received through 11:00 a.m. Monday, September 14, 2015
Attachment received with this Desk Item.:
2. Correspondence received through 11:00 a.m. Monday, September 15, 2015
PREPARED BY: STEP Y
Director of Finance d Administrative Services
Reviewed by:
Town
Attorney
NAMGR\AdminWorkFiles\2015 Council Reports \Sept 15 \Long Range Capital Projects Funding Desk Item.doc
Subject: FW: Points for 9/15/15 Meeting
Attachments: LG- Sept1515TC.pptx
From: John Shepardson [mailto:sheoardsonlawgme.com]
Sent: Monday, September 14, 2015 11:03 AM
To: Laurel Prevetti
Subject: Re: Points for 9/15/15 Meeting
Laurel:
Please add to package.
JS
ATTACHMENT
FINANCIAL PROBS IN LG
• General Fund savings ... has fallen short of the
funding needed to support future annual
infrastructure maintenance and to construct
new facilities. LG STAFF REPORT 9/15/15
ALMOND GROVE APPROACH
• The one -time funds include the use of excess
reserves and internal service funds ( e.g.,
equipment replacement). Quoting LG Staff
Report 9/15/15
9/15/2015
1
• With increasing costs and growing
infrastructure needs, the Town Council
directed staff to prepare a list of additional
revenue options specifically dedicated to
capital funding sources. Quoting from LG Staff
Report 9/15/15
TAX COMMUNITY
• 1) Sale or Lease of Property
2) Taxation of Short-Term Vacation Rentals ($100K, More
traffic)
• 3) Commercial Property Business License (Downtown
already challenged, costs passed onto tenants, drive out
business, $100K)
4) Business License Tax Audit and Amnesty Program ($80K)
• 5) Sidewalk Repair Cost Sharing ($150K)
6) Change in Refuse Vehicle Impact Fee ($120K)
• 7) Certificates of Participation (e.g., parcel tax, increased
sales tax, or increased transient occupancy tax)
9/15/2015
2
POLICE BUDGET
• WHAT ABOUT CONSIDERING OUR
$15,000,000 POLICE BUDGET THAT IS 42% OF
OUR TOTAL EXPENDITURE BUDGET? WE
COULD POTENTIALLY SAVE $6.2M A YEAR AND
BE AS SAFE OR SAFER THAN WE ARE NOW.
• MORE PROBLEMS: WHAT ABOUT OUR $43M
IN UNFUNDED PENSION LIABILITIES?
2 BASIC FACTORS
• 1. SAFETY
•2. FINANCIAL COST
9/15/2015
3
SAFETY COMPARISON
• SARATOGA RANKED NO. 5 SAFEST CITY IN
STATE (SHERIFF) (Survey by Safewise, a home
security company)
• CUPERTINO 22 (SHERIFF)
• LOS GATOS NOT IN TOP 50
LG V. CUPERTINO (RESPONSE TIMES)
• LG /MS (34K) Cupertino (60K)
• (SHERIFF RESPONDS FASTER THAN LGPD)
• Calls— Priority 1 4:30 (LG) 4:54
• Calls— Priority 2 8:27 6:33 (SD)
• Calls— Priority 3 13:12 10:31 (SD)
9/15/2015
4
9/15/2015
SHERIFF ROBOTICS
SHERIFF HELICOPTER
FINANCIALS: LG V. SARA
1. LGPD $15M (42% OF TOWN BUDGET)
• 2. SARATOGNS (SHERIFF) $5M
• 3. LG costs $10M MORE
LG V. CUPERTINO (SHERIFF)
• 1. LGPD $15M
• 2. CUPERTINO $10M
• 3. LG Costs $5M MORE ALMOST
DOUBLE THE PEOPLE
9/15/2015
C
(Apples to Apples)
• Approx. Budgeted Cost per Citizen of Police
Department
• Saratoga $4.9M divided by 31K = $158 /Cit
• Cupertino 10.21VI divided by 58K = $175 /Cit
• Los Gatos $15M divided by 34K = $441 /Cit
WHY SWITCH? WHY LOOK FOR COST SAVINGS?
OPPORTUNITY COSTS
($ FOR POLICE CUTS INTO
OTHER TOWN SERVICES)
9/15/2015
LG TODAY
*$2410001000 I N
UNFUNDED
TOWN REPAIRS
NEED $ TO FIX ALMOND GROVE —
Bond passed in 1991 -24 year wait
r
9/15/2015
L4
9/15/2015
Danville's Traffic Congestion
• Quoting from htto://wwwdanville.ca.gov/Services/-rraffic-and-
Transoortation/Traffic- Concerns /Neighborhood Traffic Management Program
The Town recognizes that
automobile traffic poses
one of the greatest
threats to the quality of
life of its citizens.
Danville's Traffix Bus Program
*TAX CUT
NEW COMMUNITY CENTER
1
ti� ! ! j��y • 'R
INN
9/15/2015
10
END LG DEPENDENCY ON BIG
PROJECTS FOR TAX $ TO OPERATE
9/15/2015
11
RH NA-STATE-MAN DATED HOUSING
• TOWN NEEDS MONEY = BIG
COMMERICAL PROJECTS =
STATE - MANDATED HOUSING
(619) (& MORE STUDENTS) =
HOUSING NET DRAW ON
TOWN RESOURCES = MORE
BIG COMMERICAL PROJECTS
HAPPY CAMPERS
• . Cupertino (Apple Computer),
Saratoga & Los Altos Hills are very
satisfied.
• City Councils voted unanimously
to re- contract with the Sheriff —
Republicans and Democrats agree.
9/15/2015
12
MILLIONS a s
• Potential savings of $6M dollars annually.
• 20 years = $120M
• 50 years = $300M.
• $ for Almond Grove, garages for businesses in
downtown (Sales tax income Apple Store), youth
& senior services, traffic mitigation, buses and
shuttles to reduce traffic, community center and
performing arts centers, etc.
• Independent Expert -- Former LG Town Manger
Dave Knapp is a convert to Sheriff —Says
Municipalities would be "shocked" at savings
More Sheriff Benefits
• Sheriff effectively respond to terrorism
• LGPD Officers re -hired by Sheriff
• Chose Police Chief —Keep Matt Frisby.
• Reduce Town liability Police misconduct.
• Contract for service levels we want
9/15/2015
13
CONCLUSION
Get most "Bang for the buck ". Greatest good
for greatest number.
• Ask Sheriff to make presentation.
• Conduct comp review of Police Budget.
• Citizens email TC members & call for
independent review.
9/15/2015
14