Resolution 2012-23RESOLUTION NO. 2012-23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
AMENDING THE BUDGET FOR THE CITY OF GILROY FOR FISCAL
YEAR 2012 -2013 AND APPROPRIATING PROPOSED EXPENDITURE
AMENDMENTS
WHEREAS, the City Administrator prepared and submitted to the City Council a budget
for the City of Gilroy for Fiscal Years 2011 -2012 and 2012 -2013, and said City Council
carefully examined, considered and adopted the same on May 16, 2011; and
WHEREAS, City Staff prepared and submitted to the City Council proposed
amendments to said budget for the City of Gilroy in the staff report attached hereto and
incorporated herein by this reference, and the City Council has carefully examined and
considered the same, and is satisfied with said budget amendments.
NOW, THEREFORE, BE IT RESOLVED that it is hereby ordered that said proposed
budget amendments for Fiscal Year 2012 -2013 are approved.
PASSED AND ADOPTED this 21 st day of May, 2012 by the following roll call vote:
AYES: COUNCILMEMBERS: ARELLANO, BRACCO, DILLON,
LEROE- MUNOZ, TUCKER, WOODWARD and PINHEIRO
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
e Pinheiro, Mayor
RESOLUTION NO. 2012-23
DATE:
TO:
FROM:
SUBJECT:
QC itp of 0trrop
7351 Rosanna Street
Gilroy, California
95020 -6197
May 21, 2012
Thomas J. Haglund, City Administrator
Christina J. Turner, Finance Director U�
Mid Cycle Budget Review
Telephone (408) 846 -0250
Facsimile (408) 846 -0421
htti): / /www.ci.ailroy.ca.us
Christina Turner
Finance Director
Recommendation
Approval of a resolution of the City Council of the City of Gilroy authorizing changes to
the adopted Fiscal Year 2013 (FY 13) City of Gilroy Operating Budget and Capital
Improvement Budget.
Background
On May 16, 2011, the City Council of the City of Gilroy approved the biennial Operating Budget
for FY 12 and FY 13 and Capital Improvement Budget for FY 12 — FY 17. The budget was
subsequently adjusted for budget amendments approved by City Council as considered from time
to time throughout the year.
The adoption of a two -year budget demonstrates a commitment to operate the City over the long
term with the goal of mitigating deficit spending to the greatest extent possible while genuinely
pursuing a balanced budget. The two -year budget allows for more systematic long range
planning over the budget term and provides efficiencies in the second year of the budget as staff
focuses on validation efforts. The proposed changes to the budget as a result of validating the
adopted budget amounts affect certain funds and are discussed further below.
Discussion
Staff has reviewed the adopted revenue amounts for FY 13 and proposes updates to certain of the
projected amounts. Staff has also compiled a list of the potential expenditures for which it
requests Council approval. Such expenditure needs result from updated information regarding
FY 13 costs, contract increases or critical maintenance issues. The City's accumulated annual
savings will be used to provide a hedge against any unanticipated revenue or expense
fluctuations in FY 13 and any excess will be appropriated to the City's replacement reserves for
capital outlay.
Item X.C.
General Fund (Fund 100)
The summary below shows the FY 13 General Fund budget adjusted for the proposed changes.
Revenue Expenditures Surplus /(Deficit)
2012 -2013 Budget 37,947,816 37,934,552 13,264
Proposed Changes 803,000 761,373 41,627
Adjusted 38,750,816 38,695,925 54,891
General Fund Revenues
The following discussion of the City's General Fund Revenue is generally based on amounts
recorded through April 2012. Staff has reviewed the budgeted FY 13 tax revenue compared to
the actual receipts in FY 12, as well as information regarding anticipated revenue in FY 13.
Based on its review, Staff proposes an increase in the sales tax revenue of approximately $1.2
million based on updated information from MuniServices, the consulting firm that the City
contracts to review and audit sales tax receipts, as well as projected future tax receipts.
In FY 13, engineering and planning fees, two of the City's primary types of non -tax general fund
revenue, are anticipated to be approximately 25 %, or $397,000, lower than originally budgeted.
Nonetheless, the City is experiencing significant activity in development compared to the lows of
FY 08 and FY 09.
During FY 11, the City had unanticipated development and saw a corresponding increase in fee
revenue. Building, engineering, planning and hazmat fees were significantly higher than
anticipated. The City realized income earlier than projected; therefore, FY 12 development
revenue will be lower than anticipated. In addition, certain projects have been delayed and/or
reduced in scope by developers resulting in a decrease in the general fund revenue for
engineering and planning fees.
General Fund Expenditures
Proposed Changes
Engineering Staffing - $118, 000 (other funds — remaining $118, 000)
Due to the increase in development activity since the downturn in FY 08 and FY 09 when
staffing resources were significantly depleted, Staff requests a budget amendment to cover the
cost of hiring two Engineer I positions. The Engineer I positions will manage capital projects,
traffic programs and studies, contract administration and construction management activities,
grant administration, code compliance, oversight of improvement and development agreements,
design and review of standards for infrastructure and studies related to development applications
and perform a series of other apprentice level engineering tasks and functions. Senior engineers
will focus on broader departmental assignments and professional level engineering work,
typically requiring a professional engineering license, customer service and more complex
engineering functions.
Item X.C. 2
Information Technology (IT) Staffing - $35, 000
Staff requests a budget amendment for the incremental difference between the existing budget
allocation for a Network Administrator and for an Information Technology (IT) Manager to
assist in the oversight and service delivery of the IT division. The IT Manager position is needed
to manage and coordinate all IT activities involving administration of the IT Division, Citywide
Hardware /Software acquisitions, IT projects, future/strategic IT planning, development and
implementation of IT policies and supervision and management of IT staff. IT related programs
have increased in the past two years.
Fleet and Facilities Support - $22,000
Staff requests a budget amendment for $29,000 for part-time administrative assistance for the
Fleet and Facilities division. The general fund impact of this amendment is approximately
$22,000. The additional staffing is needed for part-time clerical support, including vehicle
operation reports, preparing and processing DMV reports and Board of Equalization reports, data
entry and preparing requisitions.
Rapid Enforcement Allied Computer Team (REACT) - $70,685
The City has an officer that is subsidized by REACT previously approved by the Council in FY
12. The incremental cost to the City in FY 13 for this officer is $70,685. The REACT grant
provides for $90,000 in funding for this program in favor of the City's contribution.
Federal Emergency Management Agency (FEMA) Grant Match — $25,090
FEMA and the Department of Homeland Security, under the FY 2011 Assistance to Firefighters
Grant, awarded the City with a $250,900 grant for the reimbursement for the cost of lifesaving
defibrillators to be deployed on emergency apparatus. The City's 10% match for this grant is
$25,090
Santa Clara Valley Habitat Conservation Plan /Natural Community Conservation Plan - $57,178
This amendment is for the part-time wages in furtherance of the Santa Clara Valley Habitat
Conservation Plan/Natural Community Conservation Plan in FY 13.
Liability and Property Insurance - $92,000
Staff estimates that the City's liability and property insurance will increase by approximately
$135K for FY 13. The general fund portion of this amount is approximately $92K. The
remainder portion will be spread amongst the various operating Funds.
Silicon Valley Regional Interoperability Authority (SYRIA) - $5,920
The City received notification that its SVRIA required contribution for FY 13 will be $5,920
higher than budgeted.
Item X.C.
Landscape Services- $115, 000
The City completed its Request for Qualifications and Proposals process for landscape services.
Staff requests $115,000 in additional funding for the increased service level.
Tree Trimming - $23, 000
Staff requests an additional $23,000 for tree trimming funding, including $8K to thin trees to
improve the lighting east of Monterey Street between IOOF and 10`x' Streets and $15K for
inventorying the location of City park trees, the removal of four Elm trees on Fifth Street and to
inspect the remaining Elms throughout the City to put together an Elm tree maintenance and a
removal program.
Landscape Supplies - $10,000
Staff requests an additional $10,000 for additional supplies for graffiti removal, janitorial
supplies and weed killing herbicide materials.
Discover Gilroy - $60,000
The City requests an additional $60,000 in funding for the implementation of various Discover
Gilroy initiatives. The Discover Gilroy Campaign will continue to focus its efforts on marketing
initiatives to support economic development, as well as funding in FY 13 for a Downtown
Marketplace Space (Location Definition). This program involves a committee with
representatives from the City, Chamber of Commerce, Visitors Bureau and the Gilroy Economic
Development Corporation.
Economic Development Strategic Plan - $50,000
Staff requests $50,000 for the City to develop the City's Economic Development Strategic Plan
consistent with Council goals. Such plan will establish the City's vision for how to best achieve
economic development.
Communication Master Plan Phase 1 and iNET design - $45, 000
The primary objective of a Communication Master Plan is to provide communication guidance
(roadmap) and strategies to support existing and future communication needs for various field
facilities and devices such as fire stations, Operations Division, South County Regional
Wastewater Authority (SCRWA), city parks, traffic signals, video cameras, mobile field units,
and community Wireless services. The development of a citywide Communication Master Plan
will serve as a roadmap for the orderly deployment of an integrated citywide communication
network for Gilroy.
The second portion of this study involves a detailed analysis and preliminary design of the
communication infrastructure of the NET backbone necessary to allow for continued
Item X.C. 4
communication with the primary field facilities. Those primary field facilities include fire
stations and the Operations Division. The backbone for this communication is a fiber optic
network.
Traffic Signal Synchronization Project - Evaluation and Integration of Wireless Communication
Network - $32,500
This project phase will design a wireless communication system for synchronization of certain
traffic signals located throughout the community. Synchronization will lead to more efficient
traffic flow and carbon footprint reduction.
Gas Tax Funds
Staff requests an additional $56,000 in funding for increased electrical costs to PG &E, increase
in universal service alert (USA) requests, repair and maintenance for traffic signals and street
lights.
Additional funding of $5,000 is needed for the review and survey of the City's sidewalks that
will be performed by an intern and overseen by the City's Public Works Department.
The City requests $81,000 to increase City lighting output including $67,000 for east of
Monterey Street between IOOF and 10`h Streets, as well as $14,000 for other City lighting
upgrades throughout the City.
In addition, Staff requests $50,000 for the City's local grant funding match required by the
Metropolitan Transportation Commission (MTC) in support of a grant of $700,000 for
completion of various Safe Route to School sidewalk projects for the Vehicle Emissions
Reductions Based at Schools (VERBS) grant.
Internal Service Funds
Information Technology (IT) - Desktop Replacements - $137,000
Due to budget restraints in prior years, the City's desktops and laptops were not replaced within
their normal 3 to 5 year replacement life cycle_ Most of the systems were deployed 6 years ago.
As a result, the City's current fleet of computers has exceeded its useful life and City staff
productivity is impacted by the failing and or slow components. Staff recommends use of the
City's replacement reserve in the IT internal service fund for $137,000 for the replacement of the
City's desktops and laptops.
IT - Wireless Project - $125,000
Staff requests $125,000 for the deployment of a new wireless system in the Downtown and at
other existing locations throughout the City to improve wireless signal and data transfer speed.
The City's hardware for its wireless network is reaching its end -of -life and requires a
Item X.C. 5
replacement/upgrade. The City is completing a review of the network and will need to invest in
a new system.
Wastewater Enterprise Fund
Lateral Repairs - $10, 000
This funding is requested to perform deep sewer lateral repairs utilizing a non - destructive repair
technique to avoid surface level disruption.
Water Enterprise Fund
Groundwater Management Fee - $50, 000
Item represents an increase in the groundwater management fee as water use has been greater
than anticipated due in part to an increase in economic development activity with new industrial
users. This expenditure increase will be offset by additional water user fees.
Recycled Water - $15, 000
Item represents an increase in the City's use of recycled water for various landscaping projects.
State Water Fee - $1,500
Fees paid to the State of California will be approximately $1,500 higher due to State budget
actions.
Meters - $100,000
Staff requests an additional $100,000 in funding in FY 13 for the conversion of the water meters
to fixed base type meters. This budget amendment does not increase the total budget projected
for this conversion project, but allows the City to convert the meters over a shorter timeline and
replace older meters that fail with the new meters.
Meter Box Repair - $3,800
As part of the meter conversion discussed above, meter box lids need to be replaced to
accommodate new radios. Staff requests funding for this replacement.
Meter Repair /Reprogramming - $20,970
Certain of the City's meters do not need to be replaced during the meter conversion, but rather
can be reprogrammed. This budget amendment allocates funding for such meters.
Item X.C. 6
Trench Backfill - $1,620
Additional work is projected in FY 13 for the purchase of specialized backfill materials.
Pipes /Valve /Hydrant Maintenance - $9,650
Additional work is projected in FY 13 requiring the establishment of inventory of pipes, valves
and hydrant materials.
SCADA Technical Support - $3, 000
Staff requests $3,000 in additional funding for its Supervisory Control and Data Acquisition
( SCADA) system for technical support. SCADA is a specialized software measuring the water
system telemetry.
Staff requests that Council adopt the above budget amendments and proposed changes for FY 13
and then appropriate the funds via adoption of a resolution.
Item X.C. 7
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2012 -23 is an original resolution, or true and correct copy of a city
resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council
held on the 21" day of May, 2012, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 29"' day of May, 2012.
City Clerk of the City of Gilroy
(Seal)