Loading...
20110122 - 2011 Town Council Retreat'N X pF !pSA COUNCIL AGENDA REPORT DATE: JANUARY 14, 2011 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER 1Yi1OR141Ill 4I111a11 role) W L alUlbMYI:7 IY MEETING DATE: 01 -22 -11 COUNCIL RETREAT y The purpose of the 2011 Town Council Retreat is to provide an opportunity to discuss strategic goals for the next two fiscal years within the context of the Town's fiscal status for FY 2011 /12 and beyond. BACKGROUND At the 2010 Town Council retreat, Council discussed what was then referred to as the Town's strategic goals and priority projects. The Council confirmed the strategic. goals with minimal revision and determined that the goals were more accurately a reflection of the Council's "core values." With regard to priority projects, the Council discussed the status of listed projects, additional projects being undertaken by staff at Council direction, and emerging projects. Council then determined which of these projects should be identified as the Town's "Strategic Goals for 2010- 2012." The Core Values and Strategic Goals (Attachment 1) were subsequently adopted by Council. DISCUSSION The 2011 Town Council Retreat is an opportunity for the Council to review the status of Strategic Goals from 2010 -2012, determine whether the goals should be deemed complete or carried over, and discuss potential new goals for 2011 -13. Prior to the discussion of the strategic goals, the Council will have the opportunity to have a dialogue about the role and responsibilities of Council members. Material for this discussion will be provided to Council prior to the Retreat. The Mayor will lead this discussion. Fiscal Framework for Goal- Setting Current and projected fiscal resources must be taken into account when setting priorities for special projects, recognizing that ongoing core services account for the vast majority of the organization's fiscal PREPARED BY : Pamelobs bo Assistant Town Manager Reviewed by: Assistant Town Manager Clerk Administrator Attorney _Community Development PAGE MAYOR AND TOWN COUNCIL SUBJECT: 2011 TOWN COUNCIL RETREAT JANUARY 14, 2011 DISCUSSION (cont'd and staff capacity. The attached article (Attachment 2) from the January 2011 Western City magazine presents a perspective on how elected officials might approach addressing community needs in times of economic challenges. Since Los Gatos continues to be faced with economic uncertainty and reduced resources, Council may want to consider the suggestions in the article as priorities are set for the future. A preliminary draft of the next Five Year Forecast is presented for your preview (Attachment 3). The Forecast shows continuing shortfalls for the coming five years based on a stagnating economy and tax revenues, a peaking and subsequent decline of Netflix sales tax revenues, and rapidly increasing personnel costs primarily due to rising pension rates and medical benefit costs for both current employees and retirees. This Forecast does not include proposed State budget changes which could add $500,000 to $1,000,000 to the annual operating shortfall as well as eliminate significant funding for future affordable housing and other capital projects. While no budgetary action or direction is needed at this time, staff recommends that Council provide some early commentary on the use of Town reserves as a budget solution for the next few years. As the Council is aware, the Town has continued to add to both its capital and operating reserves through last year and is anticipated to do so again this year, as approved in the Adopted Budget. Staff is recommending that the Council consider forestalling any further In anned additions to the operating reserves while maintaining the continued set aside of capital reserves as the only reliable source of funding for our capital programs. In addition, staff recommends that the use of existing operating reserves be limited to those uses that can result in or translate to ongoing operating cost reductions. 2010 -2012 Strategic Goals Attachment 4 provides a summary of the progress made on each of the 2010 -2012 Strategic Goals. In some cases, the goal has been completed or is nearing completion. In others, the goal is one that will carry over to the next planning period. Some of the goals are ongoing ones that staff continues to regard as important as strategic goals for the Town, with different specific actions each year. Staff will be present at the Retreat to provide clarifications or further information about any of the 2010- 2012 goals. In addition, PPW Director, Todd Capurso, will present additional information about the status of the Almond Grove district street improvement project. 2011 -2013 Potential Changes to Strategic Goals Attachment 5 presents a list of potential new, replacement, and deleted strategic goals for 2011 -2013. Most of the new potential goals were brought forward by the boards and commissions at the Commission Confluence in November. Two of the potential new goals are from staff, with one being a recommended broadening of a current goal. At the Retreat, Council may raise additional potential goals for consideration, discuss the potential new, replacement and deleted goals and seek further information from staff as needed. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: 2011 TOWN COUNCIL RETREAT JANUARY 14, 2011 DISCUSSION (cont'd) 2011 -2013 Strategic Goal- Setting Following the discussion on current and potential goals, the Mayor will ask the Council to set priorities for 2011 -2013. In setting priorities, Council will consider the following: ■ 2010 -2012 Goals that should be considered completed and removed from the matrix ■ Potential goals that should be added to the 2011 -2013 matrix or should replace current goals Staff will revise the matrix to reflect Council direction and will submit the 2011 -2013 Strategic Goals for Council approval at the February 22, 2011 Council meeting. CONCLUSION The annual Council retreat provides a forum for the Council to discuss strategic goals and set priorities. Staff looks forward to the discussion and to working with the Council to accomplish strategic goals. Attachments: 1. 2010 -2012 Core Values and Strategic Goals 2. Article from Western City, January 2011 3. Updated Five -Year Financial Plan 4. 2010 -2012 Strategic Goal Update 5. Potential Changes to Strategic Goals for 2011 -2013 ATTACHMENT 1 r; �J i 00 o 0 0 tm R u 0 R N 0 i i M "'Hoo THIS PAGE INTENTIONALLY LEFT BLANK ATTACHMENT 2 New Rules for Elected Officials In Times of Economic Meltdown by Frank Benest This is a challenging new era for total elected officials charged with governing in the midst of economic meltdown. Typically candidates have run on platforms to make community improvements. Once elected, governing board members have historically enjoyed access to some "slack resources" to respond to ever - increasing community demands. With the economic melt- down, no slack resources exist for new projects. In fact, ongoing budget cutbacks, layoffs and demoralized employees all threaten local government's ability to deliver services. A Diminished Capacity to Respond Local governments are experiencing permanent fiscal stress that undercuts their ability to respond to the big issues of the day. The financial crisis is exacerbated by a talent crisis as a whole generation of Baby- Boomer professionals retire. Elected officials' policy innova- tions are futile without staff talent to execute them. To make matters worse, employees are feeling fearful, pessimistic and even victimized. In a culture of fear, creativity cannot flourish, and consequently local government cannot overcome its problems. 10 New Rules Based on my work with public agencies, I have crafted 10 new rules for local govern- ment leaders grappling with the current adverse economic conditions. Identify the "core." To allocate scarce resources, governing boards must first identify core versus non -core businesses or program areas. For example, in one Northern Cali- fornia county, the county manager contacted city representatives to identify core and non -core businesses, with the intent of identifying possible func- tions that cities might wish to contract out to the county. The two top core functions that cities wished to keep in -house were land -use planning (determining the physical character of the community and promoting economic vitality) and park programming (affecting the quality of life in a community). Without first deciding on what is core, governing boards may protect public safety pro- grams at all costs and consequently gut the library and recreation services that are also vital to a community's well- being. continued Frank Benest, Ph.D., is former city manager of Palo Alto.. He currently serves as the senior advisor to the International City /County ➢danagement Association for Next Generation Initiatives and can be reached at <frank frankbenest.com>. This article was prepared in collaboration with the Institute for Local Government. Western City, January 2011 13 - to Netu Rules for Elected Officials in Tintes ofEcottontic meltdown, continued 14 Focus on a few priorities. The governin board as a whole must identify a few ® priorities (three to five at the most) and then relem- lessly pursue those priorities with limited resources. To assist the board in this courageous conversation about hard choices, it is wise to engage a broad range of community groups and thus make the resulting prioriries more legitimate and enduring. When new demands for local government action arise, as the will, the governing board must insist char any new demand replace an existing obligation. When I first arrived in Palo Alm as the new cin� manager, the department directors identified 39 high - priority projects approved by the council. With the assistance of city management, the council was able to identify and then focus on five priorities. We then hung banners in the council chambers, one banner for each priority When someone suggested a new priority, the mayor or the city manager could then ask which banner the council would like to remove. Subtract, subtract, subtract. To aggressively pursue a few priorities with shrinking resources, governing boards must help their organiza- rions relentlessly subtract. When I became city manager in Palo Alto, we created a 90 -day "Office of Bureaucran Busting . Employees submitted hundreds of ideas to eliminate ritualistic activities that drained resources and provided no added value. Some ideas were simple and easy to implement, such as elimi- nating quarterly activity reports that no one read or verbatim minutes of commissions. Other ideas were more complicated, such as re- engineering and simplifying the city's contracting pro- cess, which ultimately reduced the rime needed to approve major contracts from six months to three. An organization must "accelerate" so it can effectively pursue a few priorities or respond to new demands in economic hard times. To accelerate, it must subtract. Limit requests for new analysis and reports. ® While governing board members may resist a commu- nity groups demand to immediately respond to some problem with a new service, the board often directs staff to conduct a new analysis or prepare a report. In good times, these kinds of D overning board reactions to new demands may mollify constiru- ents making the service request. In bad times, such referrals of nonpriorin' items to staff simply divert scarce staff resources and undercut the local government's ability to perform. League of California Cities In a culture of fear, creativity cannot flourish. t t Have the courage to say "no." Once a governing board identifies core program areas ® and a few priorities, it must remain focused and help the organization stay the course. Elected officials must have the courage to sac "no" when groups make new demands. Avoid a zero -risk environment. To overcome the resource challenges facing local ® government, governing boards must encourage in- novation. Examples include self - service kiosks for certain kinds of permits, selling computer support or other services to adjacent public agencies, or sharing public safety services with other juris- dictions (for more on this topic, read "What You Need to know About Regionalizing Public Safety Responsibilities" at tv�wc. westemcirycom). The problem is that local governments are risk averse. In fact, in an economic meltdown, the media, community groups and elected officials jump on any mistake and personally criticize committed staff. In such a hypercrirical culture, most employees will hunker down and avoid taking any calculated risks. Innovation does not occur in a zero -risk environment. Learn ing from mistakes is a key element in the innovation process. Employees must be encouraged to experiment, test ideas and fix problems and mistakes along the way. If governing boards do nor protect creative and risk- taking employees from abuse, no innovation will occur — regardless of exhortations from the dais. 7 Pursue nongovernmental solutions. Local government can no longer be the center of all ® problem - solving. Elected leaders must put the issue or challenge in the center and work with private, nonprofit and ocher community partners to address the problem. Elected lead- ers need to focus on their roles as conveners and facilimtors and avoid proposing new direct services. www.cacities.org 8 Free up funds for a few targeted investments. ® Even in severe budgetary times, a local government must make a few strategic investments to position itself for the future. Consequently, it must "over-cut" to enable investing in areas such as employee development, information technology, critical capital improvements, energy efficiencies and strategic partnerships that address neighborhood violence or promote economic development. Provide meaning and emotional support to staff: ® Again, elected officials cannot achieve their policy agenda without the commitment of creative staff. To maximize employees' effectiveness, it's important to understand what moti- vares them. While salary is one motivator, people work for more than just a salary — particularly in the public sector. For many public employees, work- related rewards include the opportunity to contribute to their community's quality of life, help others and achieve a sense of accomplishment. As Daniel Pink says in the book A Mhole New A'lind,, "meaning is the new money." Elected officials should translate their requests to staff in terms of the meaning of the work. For example, board members need to talk about the meaning of a new bike lane in terms of making biking safer and promoting healthy lifestyles. Elected leaders are key translators. Public agencies face a "productivity paradox." At precisely the point that local governments need giant leaps in productivity to overcome the cuts, productivity spirals downward. Elected offi- cials can help the organization survive difficult times by showing concern for employees, providing encouragement and recogniz- ing employee efforts. Simply telling employees to "suck it up" does not help overcome the productivity paradox. continued on page zl with Federal and State regulatory schemes in this area has been invaluable." — Jill Techel, Chair www.westerncity.com - - Western City, January 2011 15 "Nape Sanitation District believes that recycling water is an environmentally responsible way to conserve scarce water supplies in the Napa Valle y. Meyers Nave's assistance in assuring compliance ro New Rufesfor Elected Officials in Tintes of Economic Adeltdown, continuedfrront page 15 Help develop talent and rebuild organizational capacity. lu e Without talent, the governing board cannot sole the problems facing The local government. In times of severe budget cuts, the local government faces a "free exiter" problem. The "stars" or ° A players" of the organization can freely exit and get a job with better pay elsewhere. If they stay, they may look for new opportunities as the economy improves. Employees, especially the "A players," will stay as long as they are grooving and stretching. In fact, learning is the new social glue that holds organizations together. To support employee development, board members must resist gutting talent development budgets. The good news is that talent development programs are inexpensive. Cost - effective programs include talent exchanges with other agencies, leadership acade- mies or educational webinars sponsored by a consortium of local governments, and interim or rotational assignments. Courageous Conversations Certainly, following these 10 rules will not be easy for elected officials. Adhering to the new rules requires focus, discipline and will. Perhaps more than anything, elected leaders must exhibit courage. Courage has always been a key attribute for leaders. Given the hard choices Facing elected officials, courage will become a hall- mark of effective governance. Convening stakeholders, starting courageous conversations and engaging all groups in difficult decisions will become the core competencies of leadership. Elected officials are stewards of our local governments. To help our organizations adapt to change, governing board members must understand the nature of their environment-, communi- cate a new reality to employees, labor unions, community and other stakeholders; and focus on new roles and behaviors. If elected officials adhere to these new rules of governance, their local governments can survive and even thrive in a perma- nently disrupted world. Ell };a A T £ "i`t;'. �x] ✓ r'e > . r. u= ; s s3 , 'y t '• ;egCyf+n'a'9' U�. V City of Alhambra, CAS Characterized by charming, well- manicured residential neighborhoods ` `�_ and a growing number of businesses. Alhambra (pop. 93.000) is a ' premier family- oriented and economically prosperous community A located just east of Los Angeles in the San Gabriel Valley. An award - winning City, Alhambra is recognized for a avorable combination of housing, business, employment, and recreational opportunities. This full - service City has 645 FTE's and 2010/11 operating budget of 5132 million. Four outstanding career opportunities are available with the retirement of key members of the City's Leadership Team. Finance Director Department performs all accounting, purchasing, cashiering, treasury management, banking, debt administration, payroll, billing, collections, business and animal licensing, warehouse operations, biennial budget and CAFR. Staff of 18 FTE's and 2010/11 budget of $2.1 million. Filing date is February 7, 2011 Fire Chief Responsible for providing fire safety, emergency services, and the delivery of emergency medical services to the community. Accomplished through four engine companies, one truck, one urban search and rescue. and two paramedic ambulances out of four stations. Staff of 80 FTE's and 2010/11 budget of $2.1 million.. Filing date is February 7, 2011. Please send your cover letter and resume electronically to: applypa peckhamandmckenney.com Call (866) 912 -1919 for more information or to request a detailed brochure. The brochure is also available on our web site at wwIv.peckhamandmckenney.com. Development Services Director Comprised of five divisions including planning, building, housing, economic development, and redevelopment. Oversees the development and maintenance of the City's built environment; the creation of a vibrant and stable local business community; and the rehabilitation and creation of affordable housing_ Staff of 13 FTE's and 4 contract employees and 2010111 budget of $14.3 million. Filing date is February 14, 2011. Police Chief Two Captains oversee the divisions of Field Services and Support Services. Department coordinates with other City Departments to produce outstanding overall service to the community. Total staff of 267 FTE's and 2010/11 budget of $21.9 million. Filing . deadline is February 14, 2011. MCKENNEY EXECUTIVE SEANCHAND CONSULTING . WWW.Westerncity.com Western City, January 2011 21 A ► ► aC►nlEN' 3 111312011 Town of Los Gatos General Fund Updated Five -Year Financial Plan (Includes higher PERS discount rate and POA 4 %) PASTYEAR CURRENT YEAR 1 2 3 4 5 .ccount Revenue Category Budget Actuals Budget Forecast Forecast Forecast Forecast Forecast Forecast 4100 Property Tax $ 6.9 $ 7.5 $ 7.3 $ 7.5 $ 7.4 $ 7.5 $ 7.6 $ 7.7 $ 7.9 4110 VLF Backfill Property Tax 2.3 2.3 2.4 2.3 2.4 2.4 2.4 2.4 2.5 4200 Sales & Use Tax 8.7 8.3 8.4 8.3 8.4 8.6 8.2 8.0 7.9 4250 Franchise Fees 1.7 1.7 1.9 1.7 1.7 1.7 1.7 1.8 1.8 4251 Transient Occupancy Tax 1.1 0.9 1.0 0.9 0'.9 0.9 1.0 1.0 - 1.0 4400 Business License Tax 1.1 1.2 1.1 1.11 11 1.1 1.1 1.1 1.1 4400 Licenses & Permits 2.2 2.0 2.1 1.9 2.0 2.0 2.0 2.1 2.1 4500 Intergovernmental 0.8 0.9 0.7 0.7 0.8 0.8 0.8 0.8 0.8 4600 Charge for Services 2.4 2.6 2.3 2.5 2.5 2.5 2.6 2.6 2:7 4700 Fines & Forfeitures 0.5 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.7 4800 Interest 1.6 0.9 1.2 0.9 0.9 0.9 0.9 0.9 0.9 4850 Other Sources 2.8 2.4 3.8 3.9 3.8 3.8 3.8 3.9 4.0 4900 Fund Transfers In 0.5 0.4 0.4 0.4 0.3 0.3 0.1 0.1 0.1 TOTAL REVENUES 32.1 31.4 33.2 32.8 32.7 33.1 32.9 33.1 33.4 Use of Reserves /Deposits 1.0 4.1 0.9 0.91 0.9 0.6 0.6 0.4 0:5 'OTAL REVENUES & TRANSFERS $ 33.6 $ 35.9 $ 34.5 $ 34.1 $ 33.9 $ 34.0 $ 33.6 $ 33.2 $ 33.5 (ccount Expenditure Category Budget Actuals Budget Forecast Forecast Forecast Forecast Forecast Forecast 5110 Salary $ 13.8 $ 12.2 $ 13.2 $ 12.9 $ 13.1 $ 13.1 $ 13.1 $ 13.1 $ 13.1 5120 Elected Officials 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5130 Temporary Employees 0.5 0.8 0.6 0.5 0.5 0.5 0.5 0.5 0.5 5140 Overtime 0.4 0.5 0.5 0.4 0.5 0.5 0.5 0.5 0.5 5170 Other Salary 0.1 0.4 0.1 0.3 0.3 0.3 0.3 0.3 0.3 5200 Benefits 5.8 5.4 5.6 5.6 6.3 6.9 7.3 7.6 7.8 6000 Supplies, Materials, & Services 5.6 5.0 5.7 5.5 5.7 6.0 6.2 6.4 6.5 7200 Grants & Awards 0.2 0.2 0.2 07 0.2 0.2 0.2 0.2 0.2 7400 Utilities 0.4 0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.5 7700 Fixed Assets 0.0 3.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 8060 Internal Service Charges 3.4 3.2 3.1 3.1 3.2 3.6 3.7 3.8 3.9 8900 Debt Service 0.9 0.9 2.2 2.2 2.2 2.2 2.2 2.0 2.0 TOTAL EXPENDITURES 31.2 32.3 31.6 31.3 32.6 33.6 34.6 34.9 35.3 9900 Operating Transfers Out 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 9900 Capital Transfers Out to GFAR 0.8 0.9 0.9 0.9 0.6 0.6 0.4 0.5 9900 GASB 45 Retiree Medical Actuarial 0.6 0.6 0.8 0.8 . 1.1 1.4 1.6 1.8 1.8 TOTAL BUDGETED EXPENDITURES $ 316 $ 32.9 $ 33.3 $ 33.0 $ _ 34.5 $ 35.8 $ 36.8 $ 37.2 $ 37.6 9900 Legally Required Reserve Allocation 0.7 9900 Transfer to Capital & Projects Reserve 0.0 1.2 0.6 0.6 0.8 - 0.7 0.7 0.6 0.6 9900 Transfer to Stabilization Reserve 1.0 1.2 0.6 0.6 0.8 0.7 0.7 0.6 0.6 TOTAL EXPENDITURES & ALLOCATIONS $ 33.6 $ 36.0 $ 34.5 $ 34.2 $ 36.0 $ 37.2 $ 38.1 $ 38.4 $ 38.7 REVENUES LESS EXPENDITURES $ (0:0) $ 0.0) $ 0.1 $ (0.0)1 S (2.1) (32) $ (4.5) 5 (5.1) S (5.2) ONGOING PRIOR SHORTFALL MITIGATION I 1 0.0 2.1 3.2 4.5 5.8 VET REVENUES LESS EXPENDITURES $ (0.0) $ (0-0)1 $ 0.1. $ (0.0) (2.1) : ( - 1.1) $ (1.3) 5 (1.3) S (1.3) THis PAGE INTENTIONALLY LEFT BLANK ATTACHMENT 4 2010 to 2012 Strategic Goal Update COMMUNITY CHARACTER Implement program to ensure the appropriate locations for and condition of newspaper racks in Downtown Economic Vitality and Community Development staff initiated a four -phase newsrack compliance and beautification effort. As a result, the number of downtown newsrack stands and modular units was reduced from 71 to 23. Concurrently, staff developed a pilot program for the historic downtown district that addressed the aesthetic appeal of the newsracks, the need for fewer newsracks due to the shrinking publishing industry, and continued enforcement efforts. In August 2010, the Town hosted two focus groups to get feedback on the pilot program from community members, publishers, and local businesses. As a result, staff will be removing the existing modular units on East Main Street between Montebello and Park and installing new modular units that match existing downtown street furniture. To cover staff costs for maintenance and enforcement of the ordinance, a newsrack permit fee was established. Over the next six months, staff will be gathering feedback on the new modular units from the community, local businesses, and publishing industry to determine the feasibility of replacing the remaining newsrack modular units throughout downtown. Complete and adopt the 2020 General Plan focused update, including new Housing Element The Town Council adopted the majority of the General Plan in September 2010 and the final Human Services Element in November 2010. The General Plan was published on January 7, 2011, and is now completed. The Town Council approved the Housing Element in November 2010. The State Department of Housing and Community Development (HCD) has required additional revisions to the Element. These revisions were made, and the document was resubmitted to the state in December. HCD comments are due in February, and staff anticipates resubmitting the revised Housing Element to the Council for final consideration in March 2011. This goal will be completed in the current fiscal year. Develop sustainability plan for implementation with regional and other partners This goal is a 2020 General Plan implementation program. Development of the sustainability plan will commence in February/March 2011 and should be completed by June, 2012. Town staff has developed a list of qualified consultants and will be preparing a Request for Proposal for consultant service to prepare the plan by February. Page 1 of 9 Develop and implement work plan to achieve affordable housing strategy The Town adopted the Affordable Housing Strategy in December 2009. The Strategy outlines many affordable housing programs and alternatives. To assist the Town Council in allocating financial and staff resources to the various affordable housing proposals, staff has developed a draft Affordable Housing Decision Matrix. This draft matrix will be refined over the next six months in light of the final adopted Housing Element and potential State elimination of Redevelopment. Staff anticipates presenting the draft matrix to the Town Council by August, 2011. Facilitate development process and specific plan for the North 40 Town staff has been working with the North 40 developer for the past year resolving technical issues involved with the potential future development of the property. The developer submitted a formal application in December 2010. Staff prepared a Request for Proposal (RFP) for a consultant to prepare the update to the draft North 40 Specific Plan and three consultant teams submitted proposals. Staff has selected the final consultant firm and has scheduled the Council approval of the contract for the February 7, 2011, Town Council meeting. Included with the contract will be a draft reimbursement agreement between the Town and the developer for the cost of processing the specific plan, environmental impact report, technical studies, and staff time. Staff anticipates a 12 to 18 -month specific plan preparation process. Update the Los Gatos Boulevard Plan In 2008, the Town Council provided direction regarding the update on the Los Gatos Boulevard Plan. The Town Council provided additional direction during the 2020 General Plan update. Staff will be incorporating the Los Gatos Boulevard Plan update with the preparation of the North.40 Specific Plan. Staff has recently released a RFP for a market analysis that will include the commercial portion of Los Gatos Boulevard. The market analysis will identify the Boulevard's market characteristics and trade area; its strengths and weaknesses; determine what services and goods are leaking from the community overall; and determine appropriate commercial development that would support the defined trade areas and identify where it should be targeted. Staff also anticipates conducting a view shed analysis with this update. Work on the update will be incorporated into the North 40 Specific Plan work plan and should be completed concurrently with the North 40 Specific Plan. GOOD GOVERNANCE Increase communication w /community through the Town's website, social networking & other means In 2010, staff updated and enhanced the Town's website, both the home page and departmental /service pages. The home page is now updated frequently with current events and announcements, and a special new library project feature is always Page 2 of 9 available. The pages serving existing and prospective businesses are also being updated and expanded to provide timely and comprehensive information. Additional increased communication this past year includes the "Did You Know?" segments at Council meetings, followed by broadcasting of the information on KCAT. Communicating with the community is an ongoing strategic goal. In 2011, staff will be reviewing and updating board and commission - related online information given concerns raised at the Council /Commission Confluence. Increase availability of online services to meet customer needs 2417 New or expanded on -line services include the GIS database, review of permit history for minor permits, and online forms for crime reports and commission applications. In addition, the Town is participating in AlertSCC whereby residents and businesses can register their contact numbers on -line to be notified in the event of an emergency. Work is underway to enhance the online capabilities for applying for permits and business licenses. The development of online services is an ongoing strategic goal. Pursue technology solutions to enhance productivity The Town organization migrated to a new "Voice Over Internet Provider" (VOIP) telephone system and Microsoft Office (Outlook, Excel and the latest Microsoft Word) in 2010. These technology improvements enhance productivity and, in the case of VOIP, reduce costs. Several technology improvements in the Police Department also enhanced productivity and performance, including cameras on cars and officers, wireless video uploading, license plate readers and participation in CopLink, a multi - jurisdictional database. Converting documents to laserfiche in the Community Development Department and the Clerk Office was another productivity enhancement. Pursuing technology solutions is an ongoing strategic goal, and is increasingly important given staff capacity limitations. FISCAL STABILITY Respond to ongoing structural deficit though benefit cost containment, organizational redesign and alternative service delivery and /or funding To maintain ongoing fiscal stability, strategic efforts throughout FY2010/11 have been made in the area of staffing and salary reductions through vacancy eliminations, staff furloughs, and reductions in overtime. Alternative service delivery models to reduce operating expenses have been implemented, such as the partnership with Los Gatos Saratoga Recreation Department, and discussions are underway with employee bargaining groups to address benefit cost containment, including a 2 -tier pension system. Page 3 of 9 Review and revise, if necessary, Town policy related to the service of alcohol in restaurants and other establishments The review and potential revision of the Alcohol Policy will be completed concurrently with the preparation of an Entertainment Policy. Staff anticipates commencing this work in March /April 2011, drafting the revision by the summer of 2011, and presenting to Town Council for review by the Fall. Explore ways to maximize availability and usage of downtown parking resources to meet the needs of customers Steps to address downtown parking issues included the addition of 40 spaces at the newly expanded Parking Lot #6; the operation of valet parking through a contractor during the recent holiday; and increased parking enforcement except during special events such as 2 nd Saturdays and the Wine Walk. The Town has also increased available on- street parking in the Olive Zone through restriping and capturing of unmarked spaces and is continuing to work with the high school and neighboring businesses and churches to manage both short term and long term parking constraints in the Olive Zone. During the next two years, staff is proposing to explore the use of employee permit parking and other measures (e.g., pedicabs, bicycle sharing program, etc.) to encourage the use of outlying parking lots. Update and implement economic vitality strategy to facilitate business retention, expansion and attraction, including of major tax generators Efforts to retain, expand and attract businesses included: development of free quarterly business workshops in collaboration with West Valley Community College and the Chamber; collaborative marketing and event planning with the Visitor's Bureau (2 " Saturday, Wine Walk, and Fashion Week); collaborative marketing efforts with local businesses (goTown partnership for goLocal campaign); development of brochures and online information highlighting available commercial, office, and industrial space; attendance at trade shows and events to promote the Town as a place to locate and grow businesses; business liaison services to assist businesses through permitting process (Enotecha La Storia, Title Nine, LuLu Lemon, Razzberry Lips, Restaurant James Randall, Los Gatos Bar and Grill, Restoration Hardware, and Francesca's); coordination of monthly Mayoral Outreach meetings to emerging and established businesses and first annual Business Forum for start -up and growing companies; and partnership with other Town departments on activities involving the business community (Commercial Alarm Ordinance, Bike Road -eo, Newsrack Pilot Program, various construction projects impacting businesses). Staff has also developed a quarterly business outreach newsletter and a business recruitment packet. Regionally, staff works closely with the Silicon Valley EDA to ensure legislation and regional activity are favorable for Los Gatos businesses. Staff also works internally with other departments to ensure processes and policies reflect a business friendly climate while maintaining high community expectations. All of these efforts have been primarily funded by Redevelopment. Page 4 of 9 Sell /lease assets to create one -time or ongoing funding Staff has had periodic conversations with the Santa Clara County Fire Department about the acquisition of Town -owned land at the southeast corner of Lark and Winchester, including both the vacant lot and the current fire station site. Those prior conversations have not resulted in any action previously due to Fire Department consideration of alternative capital priorities and funding sources. However, based on a discussion with the Fire Chief this week, we now anticipate receipt of a letter from the Fire Department requesting the commencement of formal negotiations, subject to Town Council direction. Staff will likely be proposing that a significant portion or all of the proceeds from any such sale be allocated for Almond Grove and other unfunded Town capital project priorities. Additional opportunities through 2012 include modified leases and /or the sale of Town assets to the Los Gatos Saratoga Recreation Department, Los Gatos Museums, and The Venue. QUALITY PUBLIC INFRASTRUCTURE Evaluate approaches and implement project to improve the condition of streets in the Almond Grove district The Town has hired a consultant to evaluate the current condition of streets in the Almond Grove and to formulate strategies to rebuild and replace the streets as appropriate. The consultant is currently in the process of completing the analysis. The draft report is scheduled to be delivered to PPW the week of January 18 The report should provide cost estimates for different construction methods (i.e. asphalt versus concrete) and recommend priorities for the scheduling of work. Staff will provide additional information at the Council Retreat on January 22 °d Prioritize annual and five year capital improvements given absence of ongoing capital funding The Town currently pre -funds its minimal existing capital program with budget savings identified each year, largely from the set aside of a significant portion of revenues from the Town's largest tax generator. This strategy has worked well to maintain the status quo maintenance of streets, park and other basic infrastructure, and will again be pre - funded for the next five year Capital Improvement Program to be presented in May. Special and larger projects have largely been funded by grants (e.g., Intersections at University & Blossom Hill and University &Highway 9, Oak Meadow Park pathway) and Redevelopment (e.g., Downtown streetscape, Police Operations Building, new Library). The eventual loss of significant sales tax revenues and the State's proposed elimination of redevelopment and potential grant funding opportunities will combine to significantly reduce, if not eliminate, the availability of dedicated funding for capital Page 5 of 9 improvements and projects. Consequently, in 2010, staff will likely evaluate alternative ongoing funding mechanisms for capital facilities and projects. Pursue federal and state funding for infrastructure priorities Staff continues to prepare projects for potential grant funding and apply for grants as opportunities present themselves. Several projects have recently been completed with grant funding: University and Blossom Hill Road intersection (Federal — ARRA funding); Oak Meadow Park pathway (CDBG and VTA funding); Curb, Gutter, and Sidewalk replacement work (State - Prop 1 B); Roberts Road Bridge replacement (State). The Town is also moving forward with several projects this year using grant funding as well. These include the planning and design for Blossom Hill Safe Routes to School; University Avenue and Highway 9 intersection improvements; Wedgewood Road Safe Routes to School; and University Avenue resurfacing (near Shelburne) — all utilizing State grant funding through Caltrans. Beyond the projects scheduled for the current fiscal year, staff has prepared scopes for several other potential projects as well, including the resurfacing of Kennedy Road as well as the design and construction of a pedestrian bridge across the Los Gatos Creek, near the proposed sports park. Develop plan for the re -use of vacated Library space Implementation of this goal will begin in the spring of 2011, with a target of spring 2012 to undertake the first phase of re -use. Funding sources for renovation of the space to accommodate re -use have not been identified; however, some limited re -use should be possible with minor improvements. More comprehensive renovation will be necessary to accomplish most re -use goals likely to be developed in the re -use plan. Advocate for Vasona light rail extension to Los Gatos While there is currently no funding currently in place for this project, staff continues to work with VTA to keep this project on the transportation project priority list. Based on VTA's timeline from last year, this project would not move forward until 2017 at the earliest. Given the current resource situation and likelihood of grant opportunities decreasing, the project will be deferred even further. It is likely that the parking requirements for this site will require the use of Santa Clara Valley District property directly adjacent to the Netflix site. Staff is working with the SCVWD and Caltrans to facilitate the relocation of SCVWD operations to a Caltrans property on Oka Road. Should efforts prove successful, there may be an opportunity to develop passive recreational amenities and a connection to the creek trail as part of (or even in advance of) this project. Page 6 of 9 CIVIC ENRICHMENT Complete construction and opening of new library providing new and expanded library services Groundbreaking for the new library occurred in June 2010, and construction is on -time and on- budget at present. A "topping out' ceremony marking the placement of the last steel beam occurred in December 2010, and the contractors are currently preparing to pour the concrete floors. The Friends fundraising campaign is having success in securing major commitments toward furniture, fixtures and equipment (FF &E). Staff is working with the architects to select FF &E for the new library to coincide with the expected early 2012 opening. Develop master plan for new sports /recreation facility to meet community needs This project is currently in progress and two community meetings have been held to date — in November and December 2010. While the first meeting focused on the development of multi - purpose sports fields, the second meeting was attended a large number of youth representatives interested in adding a skate park feature to the project. This meeting began with a short re -cap of the site history and outcomes from the first meeting. The design consultants then presented two layout concepts to begin the discussion for the evening. Participants worked in groups of 6 -10 to layout templates of potential park elements on the site and create their own design concepts. Each group presented their ideas to the group at large, and staff captured the feedback to be integrated into the next round of design drawings. More than half of the groups included the maximum athletic field possible into their design presentations, which would accommodate both soccer and lacrosse needs — for a variety of age groups. A skate facility was identified by every group as a desirable element for this facility. A third community meeting will be held in February, at which the ideas from this meeting will the presented in the form of 1 or 2 design options. It is likely that the final design will be one of two options: either a large multi -use athletic field (sufficient in size to accommodate U -12 soccer) and minimal other amenities or a smaller multi - purpose field (approximately the size of a U -10 soccer field) and hardscape amenities such as hard courts or a skate park. Implement Pageant Park improvements to enhance public access During the Library project design, it was determined that access to the Pageant Grounds should be improved and a linkage between the park and new Library should be developed. To accomplish that goal, staff developed a three phase project, much of which could be completed in parallel to the Library construction. The first phase of this project is to relocate the back -up generator and cooling tower that serve the Civic Center. This phase is currently under construction and will be completed during the spring of 2011. The second phase of this project (included in the Library construction contract) is to construct an ADA accessible pathway from the Library/Civic Center to the upper lawn area and will be completed prior to the Library opening in early 2012. Phase Page 7 of 9 upper deck to the Pageant Grounds. While this phase of the project has not yet been designed or programmed, there may be construction savings from the first two phases of the project that can be allocated toward the bridge design and /or construction. Restructure community arts and culture programs and services to meet community priorities and needs. Music in the Park was coordinated by Los Gatos Art and Music under a new, five year partnership agreement between the Town and the non - profit agency. This partnership puts the project directly into the community's hands and uses qualified volunteers to manage the concert series; Town staff resources committed to the program have, consequently, been significantly reduced. During the last year the Arts and Culture Commission has focused on the development of a new Arts Plan which was approved by Council in December. The Plan calls for a pilot project for art banners around Town Plaza Park, a refurbishment of the Forbes Mill Footbridge, additions to the Town's public art program, and marketing. PUBLIC SAFETY Expand the Los Gatos Prepared campaign to maximize community self - sufficiency LG /MS CERT members and emergency management staff have worked to promote the availability of emergency preparedness training in the community, and as a consequence have provided LG Prepared presentations outside of the normal October - Los Gatos Prepared campaign. This effort has been particularly successful in the faith community. The Police Department has trained approximately 370 residents on CERT and have established 14 specific CERT neighborhoods, 3 of which have defined and organized teams. There are 4 Neighborhood Incident Command Posts (NICP's). This year the CERT leadership team will suspend CERT classes to concentrate on further development of a CERT team Field Operations Guide and populating the master CERT database. In addition, County Fire is planning to offer Personal Emergency Preparedness (PEP) classes throughout the West Valley Cities by 2012. This is an ongoing strategic goal. In conjunction with County Fire, finalize and implement evacuation plans and procedures for areas subject to flooding and fires In June of 2010, a revised Emergency Operations Plan was approved by Council. This plan included extensive additions of evacuation appendices and maps for dam failure and wildfires. These were added to enhance the response, communication and evacuation route information to those residents in vulnerable areas, including Los Gatos hillside areas. In January 2011, primary and secondary emergency operations center personnel are participating in a functional exercise that will model evacuation procedures for a dam failure resulting from a major earthquake. A communication plan Page 8 of 9 to inform residents in vulnerable areas about the evacuation routes will also be developed by Town staff and County Fire by 2012. Complete the equipping of and training for new Emergency Operations Center Using Homeland Security and ABAG grant funds, the final significant component of the new EOC, the communications center, has been installed and is now operational. The volunteer EOC staff is continuing to adjust EOC operational plans to match the features of the new facility. Several staff training events have been conducted to familiarize EOC personnel with the facility. Staff recommends this goal be deemed complete. Review and update the contract with Monte Sereno for police services to reflect needs and resources Staff conducted a review of issues associated with the Monte Sereno police contract and briefed the Ad Hoc Council sub - committee in October. The review focused on the historical patterns of the contract and a growing gap between reimbursed costs versus actual cost for service and percentage of service load relative to population in several categories. In addition, the Ad Hoc committee considered the strict "cost for hours of service model' against the actual practice of full service police service. The Ad Hoc committee recommended that the Manager next engage with Brian Loventhal at the administrative level to discuss the outcome of the study and re- evaluate how to bring issues forward for joint discussions. This discussion will likely occur during and following 2011 -12 budget discussions for both cities. Page 9 of 9 TOWN OF LOS GATOS ATTACHMENT 5 POTENTIAL CHANGES TO STRATEGIC GOALS FOR 2011 — 2013 Potential New Goal Core Value Commission Staff Implement the Arts Master Plan to Civic X promote arts in the Town Enrichment Note: Recommend to replace goal "Restructure community arts and culture programs and services" Develop a Turf Conversion Policy Quality X Infrastructure Improve connections between existing Civic X on- street bicycle lanes, multi -use trails Enrichment and open space Develop a maintenance plan and criteria Quality X for each park Infrastructure Refine definition of and criteria for Community X "community benefit' determinations Character related to development projects Develop "Complete Streets Program" Quality X that plans for a balanced, multimodal Infrastructure transportation network Develop program to address traffic Good X circulation and student parking related to Governance Los Gatos High School in collaboration w /LGHS Identify programs to reduce teen stress Public Safety X Develop policies to limit teen access to Civic X tobacco Enrichment Implement comprehensive customer Good X service enhancement measures to meet Governance community needs Note: Recommend to replace goal "Increase availability of online services" Implement review and update of Good X performance measures, including Governance community measures from a new community satisfaction survey, to track, improve and communicate results of Town services. Potential Existing Goals for Deletion Implement program to ensure the community X appropriate locations for and condition of Character newspaper racks in Downtown* Complete and adopt the 2020 General Community X Plan focused update, including new Character Housing Element Advocate for Vasona light rail extension Quality X to Los Gatos Public Infrastructure Complete the equipping of and training Public safety X for new Emergency Operations Center Potential Existing Goals for Replacement Per above: Good X Replace "Increase availability of online Governance services to meet customer needs 2417" with 'Implement comprehensive customer service enhancement measures to meet community needs" Per above: Civic X Replace "Restructure community arts Enrichment and culture programs and services to meet community priorities and needs" with 'Implement the Arts Master Plan to promote arts in the Town" (or edited version) *Although staff work will continue into FY 11/12, this goal will be completed early in the fiscal year.