AddendumDATE:
TO:
FROM:
SUBJECT:
MEETING DATE:03/01/16
ITEM NO: 9
ADDENDUM
COUNCIL AGENDA REPORT
FEBRUARY 29,2016
MAYOR AND TOWN COUNCIL
LAUREL PREVETTI, TOWN MANAGER
FISCAL YEAR (FY) 2OI5l16 MID-YEAR BUDGET PERFORMANCE AND
STATUS REPORT - SIX MONTHS ENDNG DECEMBER 3I.2OI5A. RECETVE FY 2015/16 MID-YEAR BUDCET PERFORMANCE AND
STATUS REPORT, INCLUDING FY 2OI5l16 YEAR.END
PROJECTIONS
B. CONSIDER AUTHORIZING BUDGET ADJUSTMENTS AS
RECOMMENDED IN THE ATTACHED SECOND QUARTER BUDGET
PERFORMANCE REPORT
C. APPROVE HIRE-AHEAD AUTHORITY
D. RECEIVE THE TOWN'S FIVE.YEAR FINANCIAL PROJECTION
FROM FY 2016/17 TO FY 2020/21
REMARKS:
After the initial staff report was distributed, staff received inquiries from two Councilmembers
regarding the mid-year budget performance and status report. The inquiries are specific to the
"Recommended Budget Adjustments" in Attachment 1 of the staff report. The Council inquiries
have been identified below, followed by staff s response.
Question l: A majority of the items appear to have already taken place and are therefore non-
discretionary - Is this correct?
Answer: For purposes of this response, staff included additional detail in the budget adjustment
table to clearly define which requests have taken place and which have not (see Attachment 2).
While some of the expenses have occurred, the Council retains its discretion to approve the item.
One of the Town's intemal controls over expenditures is for the Finance Department to review all
expenditures and ensure that there are appropriate funds within the Departments' approved
budget. Departments are not given approval to incur expenditures without adequate budget.
PREPARED BY:STEPHEN CONWAY
Finance Director
Reviewed by: _Assistant Town Manager Town Attomev
NIMGR'"{dminworkfiksv0l6 Council Reports\o3-01-16\09 Mid-Y€ar Budget\Addendum Mid Year.doc
Finance
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: MID YEAR BUDGET PERFORMANCE AND STATUS REPORT
MARCH I,2016
REMARKS (cont'd):
In many cases items come up as a priority need (sometimes due to mandates or health and safety
concems) over something that had been budgeted. The Departments are then asked to identifu a
line item within their existing budget that they would "give up" to fund the request (i.e., expend
less on office supplies, training, etc.). Departments do have a very difficult time "absorbing,' the
larger expenses that come up, such as the play structure repairs or mandated well testing. The
Departments clearly understand that approval of mid-year adjustments is the discretion of the
Council and if the requests are not approved, the Departments will have to prioritize needs based
on safety or legal mandates, absorbing these costs somewhere within already budgeted funds.
Question 2: To the extent that there is a discretionary adjustment, if the Council chooses not to
implernent it, do the funds simply retum to the General Fund to be available for a different use?
Answer: Yes, the expenditure adjustments that are not approved by the council would make
additional funds available that could be allocated for other purposes. Ifunused funds result in Fy
2015/16 year end excess revenues over expanditures (surplus), per council policy the excess
would flow to the Town's Capital Improvanent program.
Question 3: Labor Services (Budget performance Report - page l5): what does this consistofl
Answer: The $30,000 budget adjustment is for the contract with Renne, Sloan, Holtzman, Sakai
LLP, the Town's labor negotiator. This is for the attomey's services to assist the Town with
labor negotiations for all three of the Town's unions (AFSCME, TEA, and poA). The scope of the
work includes preparation for and participating in negotiations and other related tasks. The Town
has an existing contract with Renne, Sloan, Holtzman, Sakai, LLp for an amount not to exceed
$ 15,000. There is approximately $10,000 of unspent funds on this contract which is not enough
for negotiations.
Question 4: Town Hall shades (Budget Performance Report - page l5): $25,000 seems a lot
for shades. What is the argument for this expense?
Answer: This request is for shades for the civic center. The Town installed a few shades on the
upper level in spring of 2014 with the intent of installing similar shades in the entire building. For
budget reasons, this has not been completed. While staffwould like to have some consistency in
appearance, there is a sun glare issue with the workspaces that are along the exterior of the
buildings. The $25,000 request would complete installation of these shides on the upper level and
the full ground level of the civic center and is based on vendor quotes.
Question 5: Stage (Budget Performance Report - page l5): Is there an opportunity for
contributions from organizations that use the stage - or is it better to keep it Town-owned for
liability, availability, storage, maintenance, etc., purposes?
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: MID YEAR BUDGET PERFORMANCE AND STATUS REPORT
MARCH I,2016
REMARKS (cont'd):
Answer: The Town uses the stage for some of the Library summer programs (approximately two
to four times per year) and agreed to provide a stage per the agreement with the new non-profit
providing the music in the park program. To ensure the proper maintenance and care of the stage,
the Town should own and maintain it.
Question 6: Medical Examinations (Budget Performance Report - page l5): Are medical
examinations for all new hires necessary - or is this a mandated Police Department exam? In other
words, is this mandatory or discretionary?
Answer: The Town requires medical screens for all new onployees, regardless ofposition. Due to
larger than anticipated vacancies, more medical screens will be necessary than originally budgeted.
In addition, supplonental medical evaluations were necessary in two instances this fiscal year.
These were unexpected and unbudgeted. This request is discretionary and would impact
operations if the Town is unable to meet current standards for hiring.
Question 7: Blossom Hill Park Playground Deck @udget performance Report - page 16):
What is the "Blossom Hill Park Playground Deck?" What is the condition that requires
replacement?
Answer: The deck is the plastic landing section of the play structure. The bolts connecting the
deck have failed. State park safety standards require replacernent of the part and this has been
completed.
Question 8: Almond Grove Funding (Mid-Year Staff Report - page 5): Table F from last
meeting shows available funds of $14,288,673. However, I believe we have only placed
$ 12,000,000 in reserve per council resolution. Correct? How and when do we move the additional
$2,000,000 + into reserve via resolution?
Answer: It is correct that in October 2015 Council directed staffto establish a $ 12.2 million
reserve for Almond Grove. The resolution was approved by council in November 2015. The
referenced $14,288,673 includes the $12.2 million in reserve as well as $2.1 million of Capital
Improvement Program (CIP) projects that the Council placed on-hold for potential reallocation to
Almond Grove. When the proposed CIP budget for FY 2016/17 is presented to Council, it is
staff s intent to recommend the entire $14.3 million be moved into the Almond Grove CIP project.
Council will be able to discuss the matter at that time and either approve stafls recommendation to
move the $ 14.3 million into the Almond Grove CIP project or altematively could direct staff to
keep funds in the reserve. If funds are kept in the reserve, appropriate funding will need to remain
in the CIP project to cover annual expected costs.
Question 9: What are the other attomey related budget increase requests for?
Answer: The Town's Deputy Attomey is currently 0.5 FTE, meaning that the position is funded at
halftime or 20 hours per week. This request is to increase the hours for this position to 25 hours
PAGE 4
MAYOR AND TOWN COLJNCIL
SUBJECT: MID YEAR BUDGET PERFORMANCE AND STATUS REPORT
MARCH I,2016
REMARKS (cont'd):
per week to assist with the increase in code enforcement related activity.
Question 10: What comprises the $12,500 cross departmental operational expenses?
Answer: This is a compilation of various department operating line itern requests that includes the
following: Advertisernents: $3,500, Special Noticing: $2,000, PD Uniforms: $6,000, and
Membership and Dues: $ I ,000.
Question l1: Don't the funds for the Sierra Linda property ($360,000+) come from one of our
BMP/BMR funds as opposed to the General Fund?
Answer: The purchase of the Sierra Linda property did come from the Town's BMP funds as
opposed to General Fund dollars. The BMP fund resides in a deposit account within the General
Fund.
PUBLIC COMMENT:
After the initial staff report was distributed on February 25, 2016 the attached public comment was
received (Attachment 3).
Attachment I (Previously received with the Staff Reoort on February 25. 2016):
1. Budget Performance Report Second Quarter FY 2015/16 (ending Decernber 31,2015)
Attachment 2 and 3 received with this Addendum:
2. Detailed Budget Adjustment Table
3. Public Comment received through l1:00 a.m. February 29, 2016
Detailed Budget Adjustment Table
l20t 4r txx
l20t 4l3ll
r20r ,tl2] I
t20t 4r3ll
r20t 13]4t
2301 4l,lll
320t 424t3
1202 44418
l50r 45s21
{30t 44213
4301 r!l5,ll
4102 4261E
4303 ,14515
5?02 42511
5l0t ,t5:t2l
5302 43522
7201 43901
7201 43901
720t 49711
?202 4971l
7204 19711
t20r
l20t
t30r
ll0l
220r
2201
l20r
2201
z:rc1
3202
t30r
l,lol
3rrcr
3,rc1
3401
3501
3501
4l0t
at02
5 t0l
5t0r
520t
5202
5301
5t0t
5301
tt02
5302
5302
5.lOl
Srlor
5aol
7201
7204
7201
6411t
5[ll
5Il ll
6t: tl
64ul
6114ll
C.mrll rondR.!.nr.3
Molor v.nide ln Li, Fe
T@st't O@pdcy Td
9.. M rld.ed C6ls
Busir6s Li6sc Ta
Noflh 40 TLG RciDbllts.lMr
108 Sifr Lin& Pu!$-.
Sp.ciat Eval - rcs Spccid Ev.ms
Avoid lh. I I C.rpa+ns - L6s Avod thc I 3 CaryaiEns
Tdirb Lnas. - tas Taxa.b Rellstrrih
sdml Rdlrc otu Aor Sd@l DEtril
tucroadrm.nt Pcnn
AB9l9 B€v€rag. CdtaiE Gltt
PLP lmovrin Cml - Eledrt 8..& VobiL
PLP lmoviio Cr& - El€drn Boot Mobih
Pa New frinds oflft.ry Boolslc l-.6.
Pq N d Frirds of Lihty Boorsrft r-.6.
Alioiai Cocr..r.
9?4-a50
t 5o25O
oto.not
30,000
5t.0@
50,000
v)-m
t2l,W) Noth 4J Pbn b Adopt .l
)'62.OEO ht ctas. CoipLr.d
(6.m0)
(4.0m)
(3,000)
l$680l )U...nat \i!t th@l Ditn,r,l ' E eud
4tJm
25m hsd d lcnal D@t tr R{.,1'.,
8300 tur..t @ l.uol Grdt Reei!..l
1-5?o ksd q )t nol Graat Rd.n'.d
7,710 &ot..l oa lcrul Gront R@ir.d
15,620t Frirds oldtc Library B@tse,. L4.lgran - E@uEd
lE,O(0l hknds otthe Lib,4ry D@Lt/E,,. L.ds. @rcen.nt - Ewut d
l63rfrl F,iads ofrt. Lbrao D@tt,,.. L4. k a.nt- E\tttEd
Profnm Accsunl C.nenl fund tiFndit!res
63211 Dn .r( Ra ilMr S.rvis 393cD /s..dan Sisnd - No Fu t E9.rd.d
1300 No ru"dt ap2nd.d
7910 Torn AidneJ krd. - E@t d
\w No Frr.ls E)q.a.!.d
7tn0 No fzds Eacndd
30,1fr Agtfu.flt Sign d - No Fundt EVrnd.d
5N No Fuds Eq.nd.d
11.7U Funds Eryended
]jm Fuds E9c,td.d
2,000 Funds bp.ndd
15O tun ls Lv.,tLd
7$ Funds Evaded
,fr Fuds E\9.,td.d
2 f6ds Etp@d.d
15O F@tls &p.nd.d
1.2(fr turclas. ConPlebd/ Fuads E\Pad.d
?'aA3EO PL,claeconpl.a FuadsE\P.nd.d
'1.050 Fuds EtP.6d.d
6N No fu'tdt E p.ndd
7.500 Furds E pend.d
\:m F ndt Evadd
25nfD Fnds E pad.d
|W No ruds Ev.n ld
6340 Eased @ Uatchinc Do@tion Ra'.rue Re.ar..l
llSEO Fuads Ery.nd.d
l53co No Fuads L\P.nd.d
33,690 No fu s E\p.nd.d
sr.frSalry (IorD AltdlEy ) P(r Ag@t
D.puty Town Altom.ry from 0.5FT E io 0.6?5 FTE
63214 t*or S.rvic6
62116 Adv..ris@ts
62322 spccial Nollrtg
6261?
6 lt
6ll t4
6r2t3
61612
82202
514 t0
61243
631r8
63156
61244
6t224
Sp6ral fom Cr.d.d fd Adsitrblrriv. Wdin8s & Cntins
v* A(hli6rflF. wamEs ad Cnilo _PGlas
63170 IOE Sira Lhda Pudlas. - Hom Assiri([ f.6
64292 EDpbyc. TEA Edlcrdal R.imbqrsclmr
61214 C Th'@8h TEfrrccut-r
loE Sbra Linda Pudrd.
cd Thr@dr TErrc Ovqritr
M|l(h.d L..ac Sdvis
Blo6som Hi[ - Fn P-t t8.r Dcd
Ell08 Sra$
6:t167 \\ are M ea!.,6l Cdttact
6tll9
61t25
62143 M@boilti, ad Du6
62161 Cut Thrltt8i ThfE- M6sg. Botd
61164 TEfr Si8lal MdrloEe
5ll l0 PLP Irnovair G@r - ELqrb Book Mobib ( Slafi)
Sp6i[ Srudis scc Maddcd Addikral wellT6thsed Mdid 35nOO No Funttt E9ad'd
Addnnnal Reyclins Bin Pud,E fo. FY 201 5/ l6
PLP Innovrir C6r - Et dric B@t MobiL { Bikel
6310 No FL"ds Rp.1d.d
t.W No rL"ds b".nd.d
8350 Fuids E pad.d
?6.430 ftnds Expad.d
4.520 &as..l@ Mo ing Ct@t R4'au. R6.ir.d
6,4N &as.d@ MorhiisOru Ra'6u. R62iv.d
6ll]2PLPlnnovalihC6l.El..rricBoo&Mohil.{s,ppl6ll']l0aasedodMa!.hil,gGrunlR6'du.R6a|d!
TOTAL CENEML FAND EXPEND'TUTES L 690.7N
TOT:ILGENERAL fL \D AErc.\'l'ES
r/2
FY 20I5/I6 MID.YEAR BUDGE'I' AD.IUSTMENT REQUESTS
Detailed Budget Adjustment Table
GFAR
4ll-8ll'9901 41329 ltrcl6e in vTA [{6eB- Pd.lnalt RdubCr.d S.al
AroonB Coor.nit
25,050 8as4t d ,|ca@l Radu. R@ied
t 25,050
15,?50 Fti.ndd otth. Librdn Bootttor. L.ak Ag.d.nt - fr-.tuE1
t 15,75l)
7l0l
UbnryTrust lunil
45452 P6 Frhds of th. Lirry Cmtrd
Plt8rrr ll..ount Oat.r Io EFrliurt.
Ito.-Pol.t Sollrc
5201 62369 wcsl vr[.y W..rM-.g!rmr Progrtu
GTAR
4l l-El l'9901 E2{05 In(r.a. in vTA Mc6ur! B - P.rtltr(rn ad Rdr& Crd. Sal
r302
r.t02
2202
2202
2202
TOT.IL OflIER FL'..,DS REIE.\L'ES S 10,600
19.,140----:tt6-
25.050
s ,5150
Batcd ol Acad nd.ru. R&.iv.d
Tos, A@rnzr lg.edent - E tut d
Tonn Alornq Br@n.nt - Ewu.d
Fri.nds of h. Lib.o.! 8@kstore La. Ag.d.nt - E\ankd
5402
5:rc,1
5404
5,104
5ao4
7301
4.6t0
4.lm
t s,?to
660
5.m0
22,000
s 27.64
18:t20
t {t,720
5.020
t 5,010
6.330
2_100
9.810
s 43,2,{0
(20.000)
t {ro,o{o)
aAAG S.lf lr.lrric.
Slll I sIafrS&y (Idn Axohe, ) p6 At EMt
5l I I I D.puty Tos. Allo*y iqn 0.5FfE ro 0.625 FTE
liffi.'l CoinFntdon
5ll I I 9afrS.hy (T@n Attom.!) pdAgral.nt
62312 ErEtoEa Evalrrir
63323 Rcqui.ed S.fdy Thhing
tltn4.me bfo.urlion sy.tcD5
61112 Ac..hCmlfe frrY 2016/l?
Ofic. Strolt!
61241 Foldile Mrliii.
EqliDreot R.C..cm..t
El2l2 Mcss.s. Boa&
fr.ilht.r Mrina.n.n..
62379 Addnina Boor Drt? - Ll'rry AdoDrb Hadng Systd
62176 PBaliv. MailaElc - Buaouhi!*
62379 Nc* Murad Elcvao. riEDd.din
62379 Civiccd ashrd.s
llDnry Trurt rod
991I I To Liftry Admbi{r.nd
1.210s rr0
FY 20 I 5/I 6 MIDYEAR BT-]DGET ADruSTMENT REQTJESTS
Other Fu nd Rewnu.s
From:
S€nt
To:
subjcct
Attadnrents:
Follow up Flag:
tlag Status:
Neal Turley Eliss Point Productions <whoisguygrand@gmail-com>
Friday, February 26, 2015 10:56 AM
Christina Gilmore
Re: Thank you
staginMusicintheParkdocx
Follow up
Flagged
Att: Christine Gilmore
Assistant to the Town Manager
As a resident of Los Gatos and local business owner twould like to state my concerns regarding the City of Los Gatos
pursuing the investment in a new concert stage for the Los Gatos Music in the Park events. I am the owner and operator
of Bliss Point Productions. Bliss Point Productions submitted a proposalto operate and execute the Los Gatos Music in
the Park events. The city council awarded the bid to another party, and has agreed to provide a concert stage for the
events.
l'm concerned as a local business owner and a resident that, we are using tax dollars to fund a project puts the Town of
Los Gatos in the business of providing staging for concerts and events. Are we using tax dollars that then give the city an
unfair advantage over local businesses? lf the city is providing concert staging to local events for free, how can Bliss
Point Productions survive or compete as a local business?
Alternative suggestions: I have met with Steve Regan and Ruben Galvan with the Parks and Public Works Department
and discussed some alternative approaches to Music in the Park. I have also assessed at the condition ofthe existing
staging the city currently owns.
Scenorio 7
The city sells it's existing stage that is in dis-repair to Bliss Point Productions for the sum of 5500. Bliss Point
Productions, will them refurbish and upgrade the stage for the concert in the park events. Bliss Point will then provide
labor and transportation to set and strike the stage for the music in the park events.
Esti mated Cost: $LZ,OOO
It is my understanding that Ruben Galvan has provided the city with a number of quotes for the cost of a new stage, as
well as costs and time associated with labor from city employees to set and strike the stage every week. I hope that this
alternative suggestion is both cost effect for the city and helps to support local businesses rather than compete with
them.
Sincerely,
Neal Turley
Owner and Operator
Bliss Point Productions
104A Edelen Ave
Los Gatos, CA 95030
(s12) 917-3907