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HomeMy WebLinkAbout2-City Administrator t .... CITY OF SAN BERNARDINO AD HOC BUDGET REDUCTION COMMITTEE REPORT AND RECOMMENDATIONS JUNE 1997 Previously t 02(; J t) (, /tr, /9 J Previously t c2) tl~ II?/'!! :Ii~ tJl//2S' /97 , .. The Ad Hoc Budget Reduction Committee was established by the Mayor & Common Council on March 31, 1997 with the idea that the group would be able to look at the City's expenditures from a new perspective, and make innovative recommendations based on committee members collective knowledge of the community. The committee had its initial organizational meeting on April 28, 1997. The committee met twice each week since then and four times in the week of June 9-13, 1997. All meetings were public. The initial meetings were concerned with developing an understanding of the nature of the budget problems facing the City, identifying the appropriate data necessary to make recommendations, soliciting input from interested parties and encouraging participation in the process. Subsequently, the committee heard presentations and received letters from a number of individuals and organizations offering suggestions to ameliorate various parts of the City's budget problems or asking that specific programs not be subject to draconian cuts. The committee then proceeded to develop a "brainstorming list" containing recommendations from committee members and incorporating suggestions made by the public through letters or presentations. That brainstorming list was then divided in two ways: 1. a set of long and short term revenue enhancement and budget cuts; 2. recommendations in specific areas, e. g. operations, personnel, organization structure, etc. Most recommendations were fully discussed and five lists generated as part of this report. List A contains all of the brainstorming recommendations. List B contains the set of recommendations to the Council as approved by the committee. List C contains those items which were, by majority vote, not recommended. List D contains those items which were struck off the main list by majority committee vote. List E contains the brainstorming recommendations not acted upon due to time constraints. In looking at these recommendations, we would like the Council to understand some of the constraints facing the committee: TIME The committee was allowed six weeks to develop an understanding of the City budget, figure out where possible cuts could be made, make recommendations on possible enhancements and do this in ways that would be politically acceptable. The time period was not sufficient for us to develop a comprehensive understanding of the operations of the City. Certainly, we understood the consequences of major issues, e.g. the financial consequences of the elimination of the special assessment district, the failure of Measure S, the inability of the City to find a willing buyer for the Cemetery and, thanks to staff, a keen awareness of the revenue raising difficulties posed for municipalities by passage of Prop 218. In addition, we quickly got up to speed on the structure of the City budget, the dominant role played in that budget by public safety services and the part played by the City Charter in influencing personnel costs. However, time pressures did not allow us to develop any real understanding of the consequences of possible cuts to various City departments. This time pressure. and its consequences was strongly influenced by a second constraint, the committee composition. COMMITTEE COMPOSITION while no one questions the good intentions of individual committee members in regard to this process, the fact remains that there were three characteristics of the committee that made its operation somewhat problematic. First, the committee did not have the kind of knowledge necessary to identify and recommend changes that would enhance administrative efficiency. Broad-based recommendations, e.g., suggesting a 5 to 10% across the board cut, while possible for us to make and was indeed suggested, would not have been based on an understanding of the ability of certain programs to remain viable in the face of such cuts. To the extent that we had information to support cuts, e.g., the Fire Audit, the Harvey Rose Audit, it was clear that political/legal/safety considerations would override purely fiscal ones. This lack of expertise, compounded by a lack of time influenced the nature of the recommendations in ways that will be addressed later. Secondly, the make up of the committee, containing a number of major players from the Measure S campaign, a campaign on an issue central to the budget problem, ensured polarization on a number of recommendations. While Measure S was not fought out again, the positions of the parties in that debate were reflected in the difficulties in developing compromises on potential budget solutions. Thirdly, with one-third of the committee comprised of employee organization representatives and senior management representatives available for information but not able to vote, recommendations that could negatively impact employee pay and benefits were not subject to a full and thorough debate. IMPACT OF CHARTER AMENDMENT 186 Compounding the difficulties created by the absence of senior management personnel as voting members and the strength of employee organization membership, is the City Charter and its detailed structure concerning pay determination procedures for public safety employees. Given that public safety represents 66% of the City'S general fund budget [Fiscal Year 1997/98], and that 83% of that is in personnel costs, it quickly became apparent that the Committee's options in this area would be limited to: 2 . recommending the modification or elimination of Charter Section 186. . recommending that non-salary compensation items for public safety employees be severely curtailed. . concentrating personnel cost reductions in other programs either through elimination or service reduction. . development of al ternati ve funding mechanisms. The committee voted not to recommend the modification/elimination of Charter Section 186, thus precluding that option but did ask the Council to delay approval of MOUs with benefit cost increases. Since cuts in public safety personnel costs were effectively precluded when the Council voted to approve the Firefighters' MOU, the committee felt it would be unfair to concentrate personnel savings on people in bargaining units not covered by the Charter. COMMITTEE CORE VALUES In going through the brainstorming exercise, it became clear that there were some common assumptions regarding the preservation and possible enhancement of government services. Of particular conce= was the maintenance of quality safety services. This became obvious when the Fire Chief indicated that the consequences of a 5% cut to the Fire Department would be the closure of an identified fire station and the committee's response was to not make that recommendation. A more cynical person, however, may suggest that the committee responded to an age-old budgetary ploy by accepting that the threat was real. Here the lack of knowledge and the role of the employee organizations on the committee were crucial. Additional core values included the belief that the EDA is a major engine of economic revitalization and job creation in the community, and while we recommend that it be folded into the regular City administrative structure, that recommendation was designed to realize personnel cost savings and not to diminish its entrepreneurial activities. Thus, given the limited time frame available, the limited knowledge of the consequences of across the board cuts, the absence from the committee of senior management and the dominant role on the committee of public employee organizations, as well as the belief in the importance of maintenance of quality services, the thrust of the committee' recommendations was on revenue enhancement. While the list of recommendations is attached as part of this report, it is important to highlight some of the most important ones. The first of these is that the City proceed with the "issuance of not to exceed $16,250,000 public facilities lease revenue refunding bonds 1997 Series A" [otherwise known as "the 1997 Refunding Bonds"]. This recommendation is made with an 3 important caveat. The committee, by majority vote, made this recommendation with the clear understanding that it is a short term solution and that it would require some, heretofore, unexercised discipline on the part of the City. Unless the proposed revenue is used to provide time to develop at least a mid-range strategic plan for City finances, adoption of this recommendation will have serious long-term negative financial consequences. A second point in relation to City finances, while not of direct budgetary impact, was, nevertheless, of concern to the committee. The committee recommended that the City establish, as part of its grant application process, where appropriate, a methodology to identify funds that will be used to pick up the long term commitment costs of short term grants. Failure to do so will result in the continued distortion of the City budget and its effective determination outside the normal political processes. A second and equally important recommendation is that the Council place on the ballot, an initiative establishing an assessment district specifically for the Library. Recent votes in such assessment districts have been approved overwhelmingly and the creation of one for the City of San Bernardino would allow the Library to plan its operations with much more security. CONCLUSION The committee has made revenue enhancement and cost cutting recommendations in a number of areas including organizational structure, personnel, etc. We do so with the clear understanding that in the General Fund budget, there is, political statements to the contrary, little "fat." Indeed, the demand for services continues to expand and the CPI increases are higher than the increases in the General Fund. We believe that the City is at a turning point and that these recommendations will allow a two-year window of opportunity as the Council debates what range of services should be provided by public funds. Should the City be one that accepts responsibility for the overall quality of life of its residents and the consequent costs associated with that or should it provide first class public safety and utility services and allow the private or non-profit sector to provide the remainder. As Oliver wendell Holmes said, "Taxes are the price we pay for civilization." How civilized does the Council and citizenry of San Bernardino want to be? 4 APPENDIX A. COMPLETE BRAINSTORMING LIST B. ITEMS RECOMMENDED FOR APPROVAL. C. ITEMS NOT RECOMMENDED FOR APPROVAL. D. ITEMS STRICKEN FROM CONSIDERATION. E. ITEMS NOT ACTED UPON BY COMMITTEE. A. COMPLETE BRAINSTORMING LIST KEY: SHORT TERM -- IMPACT ON FY 97/98 BUDGET LONG TERM -- IMPACT BEYOND FY 97/98 BUDGET. PrODOSed Revenues-Short Term 1. Projection of estimated new funds from the State into 97/98 Budget'. 2. Increase by 1.75% local bed tax. 3. Implement photo-radar enforcement for traffic violations. 4. Enhance parking citation enforcement/collection program. 5. Enhance business license collection services. 6. Create a five year plan in which to mortgage City-owned property to stop immediate deficit (caveat - restructuring of current City operations). 7. Market KCSB services enabling self-sufficiency and potential profit making operation if EDA is absorbed by the City. 8. Market Fiscalini Field for summer concerts and additional events for optimum utilization. 9. Create franchise fee for private ambulance services. 10. Cat licensing/breeding ordinance. 11. Establish user fees for library and park services. 12. Suggest that the Council put out Request for Proposal for a non-profit agency that can also sell gravesite markers to operate cemetery. 13. Active marketing on emergency medical services subscription plan. 14. Evaluate current fee schedule in comparison to other municipalities. 15. Review allocation of General Fund personnel to other funds. 16. Increase Code Enforcement and collections for billing violators pertaining to solid waste nuisances and illegal dumping. -1- 17. Utility peak cost agreement. 18. Revisit the concept of Parks & Recreation partnering with YMCA for the Hernandez Center and other non-profit organizations capable of similar services. 18a. Recommend that the City aggressively pursue partnering with private,non-profit groups to operate recreation, parks and community service programs at City facilities to maximize use of facilities and reduce operating costs. 19. Contract with county for land-locked unincorporated parts of the city. 20. Liquidate any equipment associated with failed ambulance service. 21. At a minimum, require safety recruits to repay their academy training costs if they leave the departments within three years. 22. Negotiate with cable company to sell off local access air time to other cable network. Suggest to Council to direct the City Administrator to negotiate with the local cable company to sell half of Channel 3's air time to another cable network. This can be done to generate revenue to either support any cuts in Channel 3 or used as revenue for the City's General Fund. (same as #7; contingent upon EDA absorbing by City). 23. Transfer all or part of 20% admini~tration of CDBG from EDA to City. 24. Explore marketing of police and fire dispatch service or other services to other agencies or communities. 25. Establish mandatory painting of street numbers on curbs for a $10 fee billed on water bill; This enhances public safety response time and preserves positions. 26. Fund 20% of Director of Public Works salary from Refuse Fund, contingent upon reorganization proposal. 27. Sell portion of City Yard to Refuse Fund. 28. That the Mayor and Council refrain from approving new MOUs that would increase the budget deficit until the budget crisis is addressed as the Council has the legal discretion to do so.) 29. Establish City Towing Service. 30. Contract with the County to provide services to unincorporated, landlocked parts of the City. 2 31. Raise fees for Police Records Unit. (See hand-out from public.) 32. Sell Convention Center to EDA. 33. Mayor and Council should approve Joint Powers financing and lease revenue refunding bonds of 1997 (AS-1I5-29-97) Prooosed Revenues-Lonl! Term la. Suggest Council support the placement of a library initiative on upcoming ballot. lb. Suggest Council place special assessment district for street sweeping on ballot. lc. Suggest Council place special assessment district for street lighting on ballot. 2. Explore regionalization of fire with neighboring jurisdictions to provide the best fire protection at lowest possible cost. 3. Market City planning, design, engineering/development services. 4. Regionalized planning, design, engineering/development services. 5. Preserve current utility tax revenue by assessing tax on usage not cost of energy. 6. Sell branch library property (in event of branch closures). 7. Reorganize Economic Development Agency. (See #3, pg. 3) 8. Privatize City refuse services. 9. Support the city's participation in the development of a downtown water project if found to be fiscally sound. City should position itself to participate in restructuring of electric industry to maximize savings on January I, 1998. 10. Explore AB1890 for increased revenue possibilities. lOa. City should explore the purchase of electricity as an aggregater and supply direct to the marketplace earmarking savings to be split between the customer and general fund. 11. Ensure full cost recovery for all City services. 3 12. Develop 5% incentive for employees that live in city. 13. Maximize use of City jail. 14. Area assessment districts to provide specific, identifiable services. 15. Sell Fiscalini Field. 16. Bring Channel 3 back to City once it reaches break even point. Prooosed Reductions-Short Term 1. Eliminate Affmnative Action Office from Mayor's Office and move functions to Personnel. 2. Eliminate Human Relations Commission funding. 3. Operate EDA as a City under Civil Service Board control. 4. Investigate collaborative effort between libraries and city schools. 5. Negotiate better utility deals, especially telephone. 6. No more unfunded mandates (do not take short term money with long term cost implications. ) 7. Eliminate Fine Arts funding ($180,000). 8. Eliminate (from non-department budget) $40,000 league membership/sister cities, etc. (P.lIO) Sa. New management and general unit employees pay own share of PERS retirement for 3 years. 9. Modify Little League scheduling in order to minimize nighttime usage and lighting fees. (See 9a). 9a. City Parks and Recreation to develop formula to minimize abuse of ballfield lighting ($440,000) by Youth Sports Leagues.) 10. Deny waiver of fees for groups/organizations using City personnel/resources. lOa. Establish "non-profit" rate equal to 25 % of normal fees for public events held by non-profit groups and organizations. Council shall not waive these fees. Waivers 4 to all other groups and organizations shall be denied. 11. Implement Fire audit recommendations. 12. No General Fund revenue to be used for Stampede Stadium expenditures. 13. Close branch libraries. 14. Utilize paralegal services in lieu of attorneys in City Attorney's office. 15. Reduce City Attorney's litigation budget. 16. Request employees to forego pay increases. 17. Research use of and develop utility peak cost agreement. 18. Eliminate hours available in employee MOUs for union activities. 19. Eliminate fire ladder truck (if feasible). 20. Reduce street sweeping services. 20b. Eliminate street sweeping services. 21. Two tier retirement system for new employees. 22. Privatize Print Shop functions. 23. Rotate used vehicles within City departments to reduce of new purchases. 24. Furloughs -- Examine the possibility of implementing a furlough program that is the equivalent of a 5 % personnel reduction. Most common practice is to give employees the Friday before holidays off as furlough days. Furloughs would effect all employees and managers except safety employees. 25. Holiday closure of City Hall -- Close City Hall from December 24 through January 1, 1998. Employers experience low productivity during this period and customer demands are at their lowest. Employees annual pay should be reduced to compensate for closure of City Hall during holiday season. 26. Layoffs -- Implement layoffs to gain a 5 to 10% savings in personnel cost. 26a. Police and Fire Chiefs to present specific 5% cuts from 96/97 $45 million budgets for Council decision. 5 27. Examine need for Neighborhood Police Centers open only in daytime. 28. City attorney budget. Examine Harvey Rose audit., etc. 29. Reduce City Attorney investigators from 2 to 1. 30. Fire audit: Eliminate 3 battalion chiefs and close one fire station. 31. Police audit: Eliminate Captain position. 32. Get inventory of reserve equipment in Fire Departtnent. Eliminate any excess that might exist. 33. Privatize street sweeping services. 34. Privatize City park and cemetery landscape maintenance. 35. Incorporate savings of golden handshake reduction. 36. Consolidate safety personnel background checks with surrounding jurisdictions. 37. Recruit and train volunteer code enforcement officers. 38. Place 22 currently hired police officers in the 22 COPS positions for 3 years and plan for the general fund to reassume the cost of these positions at the expiration of the grant. 39. Change in benefits for new hires. Require new employees to pay their own share of retirement for the three years of employment with the City. The City would still pay the employers portion of retirement. This would apply to management and general employees. Applying this method to safety employees could free up money and allow the City to hire additional police. 40. Removal of 994 "perks". As 994 has expired, all "perks" gained from 994 should be removed and Police and Fire personnel benefits should return to pre 1990 benefits, if those benefits can be tied to the revenue gained from 994 (one example would be survivor benefits). However, employees should have the ability to pay into the survivor benefit package on their own or through employer matching contributions. 41. Removal of constant manning. Request City Council take appropriate action to remove constant manning as a requirement of the city's Fire Departtnent. 42. Modification of constant manning. Based on customer service demands, relax 6 constant IJ1anning during the low fire season. Example, if during the months of January through April, historical data showed that the number of calls for fire safety demands were consistently lower during this period, then constant manning should be relaxed during this period. The department should be requested to provide fire call data to the committee and the administrative office should develop several scenarios. 43. Direct administrative staff to review fire personnel alternatives. As the City of Colton and the County of San Bernardino are examining alternatives to fire agency services, the administrative staff should be directed to contact the City of Colton and review their staffs information on paid on call fire employees and the County of San Bernardino utilizing trainees as the third or fourth man on an engine. These concepts could result in dramatic savings for the city's Fire Department. 44. Review of 186. Direct staff to provide an analysis of the cities used to compare cost of living increases under charter amendment 186. Request Council to direct staff to incorporate cost of living as the base to determine raises under 186. Cost of living includes housing within the City of San Bernardino, Department of Finance Sales Tax information and unemployment information. If staffs formula for determining salary comparisons do not include the information above, the committee should make recommendation to Council to make that part of future stipulations . 45. Review of allocation to committees from General Fund employees. Request Budget Director appear before committee to provide an overview of cost allocation for Mayor and Executive staff s time and their allocations to projects like Redevelopment and Inland Valley Development Agency. In addition, staff time, such as police and fire's time, should be allocated for time on committees, such as Development/Environmental Review Committee. Fees should be adjusted to cover cost of staff time or number of employees attending such meeting should be reduced. (See #15 - Page 1) 46. Remove maintenance of redevelopment projects from General Fund. Request RDA Director advise the City Council about the removal of the maintenance of redevelopment project's form the General Fund. Example, up keep and care of Stampede Stadium is estimated to cost $300,000 per year. Since proceeds from project go to payoff redevelopment bonds,.. the upkeep and maintenance should be allocated to the Redevelopment Agency. (See #12, Page 4) 47. Examine the purchase of previously owned vehicles. For non-safety personnel, the City should examine the purchase of used vehicles from rental car companies. Most vehicles are covered under full warranty and still have a substantial life period. (See #23, Page 5). 7 48. Cooperative purchasing with surrounding agencies. Though cooperative purchasing power of the County and surrounding Cities, the City could purchase vehicles and receive volume discounts. This requires advanced planing and communication with other agencies. Committee request that Council request staff look into volume savings. Another option is to buy vehicles off the State's purchasing list. 49. Eliminate 4/10 plan in the Police Department. Especially eliminate Dispatch and Patrol to 2-hour overlaps. More efficient to have three 8-hour shifts in a 24 hour operation. 50. Eliminate or reduce Traffic Division (motorcycles) and use CSR's exclusively on traffic accidents . 51. Eliminate City paid time off for union activities in voter issues and campaigns. 52. Eliminate DARE program which has been shown ineffective and replace with peer counseling and one-on-one program which is the only technique proven to reduce drug usage in young people. Move DARE officers back to regular duty and eliminate 3 positions . 53. Develop fire safety response standards in order to assess work force, equipment and fire station reductions. 54. Expand mutual response fire agreements in order to reduce workforce costs at fire stations closest to city borders. 55. Place Charter Section 186 on ballot for repeal. 56. Replacement 994 Assessment District for: a. Street Lighting b. Graffiti Removal c. Street Sweeping d. Traffic signals (See la, b, c on Page 3) 57. Allow libraries to contract for landscaping. 58. Regionalize library services with County or other cities. 59. Establish a Director of Administrative Services, eliminate Assistant City Administrator and Assistant to City Admini~trator. Reduce salary level of positions reporting to Director. Change Purchasing Manager to Buyer. ($197,817) Adjust span of control accordingly for all managers and mid- 8 managers. 60. Eliminate Facilities Management Project Coordinator. 61. Eliminate Director of Animal Control and move function to existing Captain in Police Department. 62. Do not f1ll Assistant Police Chief position when it becomes vacant. (Elimination prohibited by 186). 63. Eliminate overtime and Administrative Leave for Battalion Chiefs. 64. Charge Youth Sports Leagues for ballfield lighting (See 9a on Page 4). 65. Focus volunteer coordinator on recruiting volunteers for graffiti removal. 66. Identify other city services that volunteer coordinator can have volunteers complete. Establish paid call fire persons to serve as 300 or 4th person on fire equipment to reduce constant manning overtime. 67. Require volunteer coordinator position costs to be offset by reduction in other city costs . 68. Look at efficiency of City business and streamline. Eliminate duplicate services particularly within City or between City and anything funded by EDA.. 69. Establish Director of Public Works, eliminate Director of Public Services and Assistant City Engineer as well as Director of Public Works/City Engineer. Create City Engineer position. 70. Consolidate Code Enforcement with Fire Marshall to eliminate Supervisor of Code Enforcement. Prooosed Reductions-Lonl! Term 1. Pre-pay health insurance premiums through bonds or other funds. 2. Leveling of retirement benefits. Require Public Safety Employees to pay the difference between their employee contribution toward their retirement and the miscellaneous employee contribution. The net result may be offset by tax breaks as the deduction occurs before taxes. 3. Remove 186 from Charter. Replace 186 with a pay-for-performance program. (See #55, Page 8) 9 4. Examine how city pays retirement and benefit fees. Based on the information obtained from the County of San Bernardino, a substantial savings was gained by restructuring how the County paid retirement and benefit fees. More information can be obtained through conversation with the County Administrative Staff. 5. Maximize usage of City vehicles where cost savings can be realized by placing non-assigned vehicles in a central pool where they can e used by any City department where appropriate. 6. Review incidence of disability versus regular retirement in safety. 7. Traffic Division/Police Department -- elimination of motorcycle enforcement -- revenue vs. expenses. 8. Modify general unit employee retirement system to 2% at 55. 9. Two tier retirement system for new employees. 10. Offer management staff health insurance through a medical savings account program. City will save money because it costs less to purchase catastrophic coverage and fund employees' medical savings accounts, which are paid to employees as taxable income at year end if they are not spent. Expand each year to other employees. Study Jersey City results. 11. Order comprehensive report in regionalizing Fire Services. Look at El Monte study which shows dramatic savings and enhanced protection. See current location of ten stations within two miles of each other. (See #2, Page 3) 12. Increases in Safety Employee salaries and benefits resulting from Charter Amendment 186 shall be tied to the annual growth of the City's General Fund. The percentage of the Safety Bargaining units personnel appropriations to the total budget of the General Fund shall determine the maximum allowable increase in salaries and benefits for the following fiscal year. If the growth in the General Fund is less than the new average salary derived from the formula within Charter Amendment 186, the safety employees shall receive the percentage of growth in the General Fund. 13. Recommend benefit cuts to 5 employee bargaining units to enhance City Budget. 14. Engage the Rose Institute to do a comprehensive review of the city's revenue and expenses. 15. Implement a BEST Program (See handout provided by member of Public). 10 B. :ITEMS RECOMMENDED FOR APPROVAL Proposed Revenues Short Term 3. Request staff analysis of feasibility of affordable photo-radar enforcement for traffic violations. 4 . Enhance parking program. ($36,000). citation enforcement/collection 5. Enhance business license collection services. ($162,000 - 25% cost) B. Market Fiscalini Field for summer concerts and additional events for optimum utilization. 9. Create franchise fee for private ambulance services. 10. Cat licensing/breeding ordinance. 12. Suggest that the Council put out a Request for Proposal for a non-profit agency that can also sell gravesite markers to operate Cemetery. 13. Active marketing subscription plan. on emergency medical services 15. Review allocation of General Fund personnel to other funds. ($195,000 in 1997/9B). 16. Increase Code Enforcement and collections for solid waste nuisances and illegal dumping. 1Ba. Recommend that the City aggressively pursue partnering with private, non-profit groups to operate recreation, parks and community service programs at City facilities to maximize use of facilities and reduce operating costs. 19. Contract with County for land-locked unincorporated parts of city. 20. Dispose of excess equipment associated with emergency medical service. 21. As a minimum, require safety recruits to repay their academy training costs if they leave the department within three years. 24. Explore marketing of police and fire Dispatch service or other services to other agencies or communities. -1- 27. Sell portion of City Yard to Refuse Fund. 2B. That the Mayor and Council refrain from approving new MOUs that would increase the budget deficit until the budget crisis is addressed as the Council has the legal discretion to do so. 29. Establish City Towing Service. ($600,000) 30. Contract with the County to provide services to unincorporated, landlocked parts of the City. 31. Raise fees for Police Records unit. ($129,600) 33. Mayor and Council should approve Joint Powers financing and lease revenue refunding bonds of 1997. (AS-1/5-29- 97). ($3.155 million). Proposed Revenues - Lona TeDn 1a. Suggest Council support the placement of a Library Tax Initiative on upcoming ballot. lb. Suggest Council place a special assessment district for street sweeping on ballot. 1c. Suggest Council place a special assessment district for street lighting on ballot. 2. Explore regionalization jurisdictions to provide lowest possible cost. of fire with neighboring the best fire protection at 9. Support City's participation in the development of a downtown water project if found to be fiscally sound. 10. City should position itself to participate in restructuring of electric industry to maximize savings on January 1, 199B. lOa. City should explore purchase of electricity as an aggregater and supply directly to the marketplace earmarking savings to be split between the customer and general fund. 11. Ensure cost recovery for all City services. 13. Maximize use of City jail. ($325,000). 14. Area assessment districts identifiable services. (See 1a. - Lona Term. A List) to provide specific, lb. 1c. Proposed Revenues -2- Prooosed Reductions - Short Term 3. Operate EDA as a City department under Civil Service Board control. 4. Investigate collaborative effort between libraries and City schools. 5. Negotiate better utility deals, especially telephone. 8. Transfer $40,000 league membership/sister cities, etc. to EDA. 8a. New management and general unit employees pay own share of PERS retirement for three years. 9a. City Parks and Recreation to develop formula to minimize abuse of ballfield lighting ($440,000) by Youth Sports Leagues. lOa. Establish "non-profit" rate equal to 25% of normal fees for public events held by non-profit groups and organizations. Council shall not waive these fees. waivers to all other groups and organizations shall be denied. 12 . No General Fund revenue to be used for the Stampede Stadium expenditures. 14. Analyze potential of enhanced paralegal services in lieu of attorneys in City Attorney's Office. 17. Research use of and develop utility peak cost agreement. 20a. Reduce street sweeping services. 21. Two-tiered retirement system for new employees. 23. Rotate used vehicles within City departments to reduce purchases. 38. Place 22 currently hired police officers in the 22 COPS grant positions for three years to plan for the general fund to reassume the cost of these positions at the expiration of the grant. ($1,500,000). 42. Modification of constant manning. Based on customer service demands, relax constant manning during the low fire season. Example: if, during the months of January through April, historical data showed that the number of calls for fire safety demands were consistently lower during this period, then constant manning should be relaxed during this period. The department should be -3- requested to provide the Administrative scenarios. fire call data to the Committee and Office should develop several 43. Direct administrative staff to review fire personnel alternatives. As the City of Colton and the County of San Bernardino are examining alternatives to fire agency services, the administrative staff should be directed to contact the City of Colton and review their staff's information on paid on-call fire employees as well as the County of San Bernardino. 45. Review of allocation to committees from General Fund employees. Request Budget Director to appear before committee to provide an overview of cost allocation for Mayor and Executive staff's time and their allocations to projects like Redevelopment and Inland Valley Development Agency. In addition, staff time such as police and fire time, should be allocated for time on committees, such as Development/Environmental Review Committee. Fees should be adjusted to cover cost of staff time or number of employees attending such meetings should be reduced. (See #15. prooosed Revenues-Short Term - A List) 46. Remove maintenance of redevelopment proj ects from General Fund. Request RDA Director to advise the City Council about the removal of the maintenance of redevelopment projects from the General Fund. Example: Upkeep and care of Stampede Stadium is estimated to cost $300,000 per year. Since proceeds from proj ect go to payoff redevelopment bonds, the upkeep and maintenance should be allocated to the Redevelopment Agency. (See #12. Prooosed Reductions-Short Term. A List) 47. Examine the purchase of previously owned vehicles. For non-safety personnel, the City should examine the purchase of used vehicles from rental car companies. Most vehicles are covered under full warranty and still have substantial life. (See #23. Prooosed Reductions- Short Term. A List) 52. Eliminate DARE program and eliminate three positions associated with it. ($230,000) 53. Develop fire safety response standards in order to assess work force, equipment and fire stations reductions. 68. Look at efficiency of City business and. streamline. Eliminate duplicate services particularly within City or between City and anything funded by EDA. 70. Consolidate Code Enforcement with Fire Marshall to eliminate Supervisor of Code Enforcement. -4- Proposed Reductions-Lonq Term 2. Leveling of retirement benefits. Require Public Safety Employees to pay the 2% difference between their employee contribution toward their retirement and the miscellaneous employee contribution. 5. Maximize usage of City vehicles where cost savings can be realized by placing non-assigned vehicles in a central pool where they can be used by any city department where appropriate. 9. Two tier retirement system for new employees. 10. Offer management staff health insurance through a medical savings account program. 11. Order comprehensive. report in regionalizing Fire Services. Look at EI Monte study which shows dramatic savings and enhanced protection. See current location of ten stations within two miles of each other. (See #2. Proposed Revenues-Lona Term.) 13. Recommend benefit cuts to 5 employee bargaining units to enhance City budget. -5- C. ITEMS NOT RECOMMENDED FOR APPROVAL ProDosed Revenues Short Term 2. Increase by 1.75% local bed tax. 25. Establish mandatory painting of street numbers on curbs for a $10 fee billed on water bill. This enhances public safety response time and preserves positions. ProDosed Reductions - Short Term 1. Eliminate Affirmative Action Office from Mayor's Office and move functions to Personnel. 2. Eliminate Human Relations Commission funding. 7. Eliminate Fine Arts funding ($180,000). 26a. Police and Fire Chiefs to present specific 5% cuts from 96/97 $45 million budgets for Council decision. 30. Fire audit: eliminate three Batallion Chiefs. 34. Privatize City park and cemetery landscape maintenance. 41. Removal of constant manning. Request City Council take appropriate action to remove constant manning as a requirement of the City's Fire Department. 49. Eliminate 4/10 plan in Police Department. Especially eliminate Dispatch and Patrol to 2-hour overlaps. More efficient to have three 8-hour shifts in a 24 hour operation. 55. Place Charter Section 186 on ballot for repeal. 62. Do not fill Assistant Police Chief position when it becomes vacant. (Elimination prohibited by 186) . 63. Eliminate overtime and Administrative Leave for Battalion Chiefs. 65. Focus volunteer coordinator on recruiting volunteers for graffiti removal. 66. Identify other city services that volunteer coordinator can have volunteers complete. Establish paid call fire -1- I , persons to serve as 3rd or 4th person on fire equipment to reduce constant manning overtime. Proposed Reductions-Lona Term 12. Increases in Safety employee salaries and benefits resulting from Charter Amendment 186 shall be tied to the annual growth of the City's General Fund. The percentage of the Safety Bargaining Units personnel appropriations to the total budget of the General Fund shall determine the maximum allowable increase in salaries and benefits for the following fiscal year. If the growth in the General Fund is less than the new average salary derived from the formula within Charter Amendment 186 ,the safety employees shall receive the percentage of growth in the General Fund. -2- D. ITEMS STRICKEN FROM CONSIDERATION Proposed Revenues Short Ter.m 7. Market KCSB services potential profit making City. enabling self-sufficiency and operation if EDA is absorbed by 14. Evaluate current fee schedule in comparison to other municipalities. 18. Revisit the concept of Parks and Recreation partnering with YMCA for the Hernandez Center and other non-profit organizations capable of similar services. 22. Negotiate with cable company to sell off local access air time to other cable networks. Suggest to Council to direct the City Administrator to negotiate with the local cable company to sell half of Channel 3's air time to another cable network. This can be done to generate revenue to either support any cuts in Channel 3 or used as revenue for the General Fund. (same as #7; contingent upon EDA absorbing by City) . 26. Fund 20% of Director of Public Works salary from Refuse Fund, contingent upon reorganization proposal. 32. Sell Convention Center to EDA. Proposed Revenues - Lona Ter.m 3. Market City planning, design, engineering/development services. 4. Regionalized planning, design, engineering/development services. 5. Review feasibility of current utility tax revenue by assessing tax on usage not cost of energy. 6. Sell branch library property (in event of branch closure) . 15. Sell Fiscalini Field -1- Pro~osed Reductions - Short Term 10. Deny waiver of fees for groups/organizations using City personnel/resources 11. Implement Fire Audit recommendations. 18. Eliminate hours available in employee MOUs for union activities. 20b. Eliminate street sweeping services. 22. Privatize Print Shop functions. 24. Furloughs -- Examine the possibility of implementing a furlough program that is the equivalent of a 5% personnel reduction. Most common practice is to give employees the Friday before holidays off as furlough days. Furloughs would affect all employees and managers except safety employees. 25. Holiday closure of City Hall - - Close City Hall from December 24 through January 1, 1998. Employers experience low productivity during this period and customer demands are at their lowest. Employees' annual pay should be reduced to compensate for closure of City Hall during holiday season. 27. Examine need for Neighborhood Police Centers open only in daytime. 31. Police Audit: Eliminate Captain position. 33. Privatize street sweeping services. 35. Incorporate savings of golden handshake reduction. 37. Recruit and train volunteer code enforcement officers. 39. Change in benefits for new hires. Require new employees to pay their own share of retirement for three years of employment with the City. The City would still pay the employer's portion of retirement. This would apply to management and general employees. Applying this method to safety employees could free up money and allow the City to hire additional police. 48. Cooperative purchasing with surrounding agencies. Through cooperative purchasing power of the County and surrounding cities, the City could purchase vehicles and receive volume discounts. This requires advanced planning and communications with other agencies. -2- Committee requests that Council request staff look into volume savings. Another option is to buy vehicles off the State's purchasing list. 51. Eliminate City-paid time off for union activities in voter issues and campaigns. 54. Expand mutual response fire agreements in order to reduce workforce costs at fire stations closest to city borders. 57. Allow libraries to contract for landscaping. 58. Regionalize library services with County or other cities. 59. Establish a Director of Administrative Services, eliminate Assistant City Administrator and Assistant to City Administrator. Reduce salary level of positions reporting to Director. Change Purchasing Manager to Buyer ($197.817). Adjust span of control accordingly for all managers and mid-managers. 60. Eliminate Facilities Management Project Coordinator. 61. Eliminate Director of Animal Control and move function to existing Captain in Police Department. Proposed Reductions - Lona Term 10. Offer management staff health insurance through a medical savings account program. City will save money because it costs less to purchase catastrophic coverage and fund employees' medical savings accounts which are paid to employees as taxable income at year end if they are not spent. Expand each year to other employees. Study Jersey City results. -3- E. ITEMS NOT ACTED UPON BY COMMITTEE Proposed Revenues-Short Term 1. Incorporate projection of estimated new funds from State into FY97/98 Budget. 6. Create a five property to restructuring year plan in which to mortgage City-owned stop immediate deficit (caveat of current City operations.) 11. Establish user fees for library and park services. 23. Transfer all or part of 20% administration of CDBG from EDA to City. Proposed Revenues-Lona Term 8. Privatize City refuse service. 12. Develop 5% incentive for employees the live in city. 16. Bring Channel 3 back to City once it reaches break even point. Proposed Reductions-Short Term 6. No more unfunded mandates (do not take short term money with long term cost implications.) 13. Close branch libraries. 15. Reduce City Attorney's litigation budget. 16. Request employees to forego pay increases. 19. Eliminate fire ladder truck (if feasible). 26. Layoffs -- implement layoffs to gain a 5% to 10% savings in personnel costs. 27. City Attorney's Budget. Examine Harvey Rose audit, etc. 29. Reduce City Attorney Investigators from 2 to 1. 32. Get inventory of reserve equipment in Fire Department. Eliminate any excess that might exist. -1- . 40. Removal of 994 "perks." As 994 has expired, all "perks" gained from 994 should be removed and Police and Fire personnel benefits should be removed and Police and Fire personnel benefits should return to pre-1990 benefits, if those benefits van be tied to the revenue gained from 994 (one example would be survivor benefits.) However, employees should have the ability to pay into the survivor benefit package on their own or through employer matching contributions. 44. Review of 186. Direct staff to provide an analysis of the cities used to compare cost of living increases under Charter amendment 186. Request Council to direct staff to incorporate cost of living as the base to determine raises under 186. Cost of living includes housing within the city of San Bernardino, Department of Finance Sales Tax information and unemployment information. If staff's formula for determining salary comparisons does not include the information above, the committee should make recommendation to Council to make that part of future stipulations. 50. Eliminate or reduce Traffic Division (motorcycles) and use CSRs exclusively on traffic accidents. 56. Replacement 994 Assessment District for: a. Street lighting. b. Graffiti removal. c. Street sweeping. d. Traffic signals. (See 1a,b,c Proposed Revenues-Long Term, A List.) 64. Charge Youth Sports Leagues for ballfield lighting. (See 9a, Proposed Reductions-Short Term.) 67. Require volunteer coordinator position costs to be offset by reduction in other City costs. 69. Establish Director of Public Works, eliminate Director of Public Services and Assistant City Engineer as well as Director of Public Works/City Engineer. Create City Engineer position. Proposed Reductions-Lona Te~ 3. Remove 186 from Charter. Replace 186 with pay-for- performance program. (See #55, Proposed Reductions-Short Term - N List.) 4. Examine how City pays retirement and benefit fees. Based -2- on information obtained from County of San Bernardino, a substantial savings was gained by restructuring how the County paid retirement and benefit fees. More information can be obtained through conversation with County Administrative staff. 6. Review incidence of disability versus regular retirement in safety. 7. Traffic Division/Police Department elimination of motorcycle enforcement -- revenue vs. expenses. 8. Modify general unit employee retirement system to 2% at 55. 14. Engage the Rose Institute to do a comprehensive review of the City's revenue and expenses. 15. Implement a BEST Program. (See handout provided by member of public) . -3-