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HomeMy WebLinkAbout06/18/92AGENDA SPECIAL MEETING HERMOSA BEACH CITY COUNCIL Thursday, June 18, 1992 - Council Chambers, City Hall MAYOR Robert Essertier MAYOR PRO TEM Albert Wiemans COUNCILMEMBERS Robert Benz Sam Y. Edgerton Kathleen Midstokke 7:30 p.m. All Council meetings are open to the PLEDGE OF ALLEGIANCE ROLL CALL: 1. CITY CLERK Elaine Doerfling CITY TREASURER Gary L. Brutsch CITY MANAGER Frederick R. Ferrin CITY ATTORNEY Charles S. Vose public. PLEASE ATTEND. COMPLETE THE REVIEW OF CITY DEPARTMENT BUDGETS, INCOR- PORATING ADDITIONAL BUDGET REDUCTIONS AS DIRECTED BY CITY COUNCIL ON JUNE 8, 1992. 2. SUBMISSION OF ANSWERS TO QUESTIONS FROM JUNE 8, 1992 WORKSHOP. 3. CONSIDERATION OF FY 92-93 - FY 96-97 FIVE YEAR CAPITAL IMPROVEMENT PROGRAM PRELIMINARY BUDGET. CITIZEN COMMENTS Citizens wishing to address the Council within the Coun- cil's jurisdiction may do so at this time. ADJOURNMENT BUDGET OVERVIEW JUNE 18, 1992 In accordance with guidance issued by the City Council on June 8, 1992, I have formulated a second City budget proposal that re- duces the expenditure level by $392,000. This amount represents the sum of the $84,000 for the implementation of the State man- dated measures required for compliance with AB 939 and the $308,000 from the Unreserved Fund Balance proposed in the first budget submission. The preliminary steps before issuing budget reduction targets to the City Departments were to make the following reductions to the General Fund expenditures: AMOUNT $40,000 $28,000 $50,000 $19,000 DESCRIPTION Records Mgt. Equipment & supplies Records Mgt. Consultant Microcomputer pilot program Benefits for Council $137,000 Total Reduction This left a remainder of $255,000 that had to be pared from the Department budget proposals of 92-93. The reduction targets were established by the City Manager and distributed for implementa- tion to the Department Directors. The newly formulated and sig- nificantly reduced Department budgets will be presented for your approval this evening. Prior to our discussion of these proposals, several recent developments warrant your attention. The City Treasurer has re- assessed his previous estimate of interest revenue and adjusted it upwards by $50,000. Of that increased total revenue, $10,000 will go into General Fund. The other $40,000 accrues to the fund (other than General Fund) from which the interest was earned. Additionally, I will request your approval for the sale of some Proposition A funds for General Fund money. The Planning Depart- ment Director will elaborate on the actual sale and its potential to raise $103,000 badly needed General Fund dollars. CITY OF HERMOSA BEACH MEMORANDUM TO: CITY MANAGER FROM: CITY TREASURER RE: FISCAL YEAR 1992-93 INTEREST REVENUE REVISIONS DATE: JUNE 4, 1992 My office continually monitors cash flow and interest rates. I am pleased to increase the amount of projected interest revenue for fiscal year 1992-93 from four hundred and fifty thousand to five hundred thousand. The causes of this optimistic projection are as follows: - The city is spending money at a slower rate than in previous years. - The Federal Government has decided to firm up the interest rate instead of easing off as was previously reported. - We are now investing money here to for held at the Bank of America to compensate for bank service charges. Gary L. Br.t ch City Treasurer c.c. Mayor and City Council c.c. Finance Director oq CITY OF HERMOSA BEACH PLANNING DEPARTMENT MEMORANDUM TO: Honorable Mayor and Members of the City Council FROM: Michael Schubach, Planning/ it or SUBJECT: Proposition A Fund Exchange DATE: June 18, 1992 Recently, L.A. County Transportation Commission released "Proposition C" Fund allocations. Our allocation for this year is $143,489. Although Prop. C Funds cannot be exchanged with another City for general funds, these funds can be used for Dial -A -Ride; thereby increasing the surplus of Prop. A funds that can be exchanged. West Hollywood has tentatively offered to exchange funds at a rate of $.53 per Prop. A dollar. Our total surplus including Prop. A funds currently appropriated for Dial -A -Ride equals $373,352. Recommendation Staff recommends exchanging $200,000 of Prop. A for $103,000 of general funds. CONCUR: / NOTED FOR FISCAL IMPACT: Frederick R. Ferrin Viki Copeland City Manager Finance Director 3- p/memod CITY OF HERMOSA BEACH INTER -OFFICE MEMO TO: Frederick R. Ferrin, City Manager Viki Copeland, Finance Director FROM: William Grove, Director of Building & Safety RE: Additional Budget Reductions DATE: June 17, 1992 *^*^*^*^*^*^*^*^*A*^*^*A*A*A*A*A*A*A*A*A*A*A*A*^fit^*^fitA*A*A*A*^*A* *A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A*A* In response to the direction contained in your memorandum dated June 11, 1992 to further reduce the Business License/Building Department budget by $20,000.00, I am proposing the following reductions: BUSINESS LICENSE 1. Reduction of the Business License Inspector position to thirty two (32) hours per week (.80). The cost savings is as follows: Salary $7,982.00 PERS (13.14%) 1,049.00 4110 (1.5%) 120.00 4111 (1.5%) 120.00 $9,271.00 The impact of the reduction in hours of this position includes the following: a) Less accessibility to the business community and the public in general. b) Less field hours for sign enforcement and business license violations. c) Delays in license processing and sign application processing. d) Potential loss of revenue due to loss of enforcement hours. BUILDING & SAFETY 1. Reduction of the Senior Building Inspector position to thirty two (32) hours per week (.80). The cost of savings is as follows: Salary $ 8,820.00 PERS (13.14%) 1,159.00 4110 (1.5%) 132.00 4111 (1.5%) 132.00 $10,243.00 2. Further reduction of contract services for plan checking $486.00 ($32,514.00). The impact of the reduction in hours of the Senior Building Inspector includes the following: a) Less accessibility to architects, contractors and the public in general. b) Delays in processing construction plan approval and revisions. c) Less direct supervision of subordinates. The further reduction of contract services will cause delays in construction plan review and approval. This account was already reduced by $12,000.00 during the initial round of budget reductions. The department proposes to increase in-house plan review for selected projects to compensate for reduced contracting funds. This will clearly slow up the plan review process and provide a lower level of service in this area. Please note that the two (2) proposed reduced hour positions are the result of voluntary actions on the part of the employees involved. These two employees happened to have personal circumstances which accommodated the reduction in hours and corresponding loss of income. Both positions are critical to the efficient and effective operation of the respective divisions. The rationale for proposing the reduced hour positions is simply that the actions were voluntary and the department is better able to function with reduced hours than the loss of a complete full time employee which is the alternative to accomplish the requested reduction. TO: Rick Ferrin FROM: LeRoy Staten RE: Crossing Guard Budget DATE: June 17, 1992 mnnununnnnnunnnuunininunmoil,,nnnnnnun,unnunnunnunu nrnnnnuunnuninuu,,n The crossing Guard Division of the G.S. Department has no proposed changes. Crossing Guard is an assessment district whereby each parcel is assessed an amount predicated on the salaries of the Crossing Guards and the cost associated to the administration of the district. TO: Rick Ferrin FROM: LeRoy Staten RE: Budget DATE: June 17, 1992 1111111,11111,111111,1111111“nunn11n1nn1nnnnn1n1nnnnnnnnnnnnn11nnnnunnnnnn1mnnmlinnn I did not propose any changes in the Vehicle Parking District (VPD) budget, however there are proposals by other department that will effect the budget of the VPD. CITY OF HERMOSA BEACH INTER -OFFICE MEMO DATE: June 16, 1992 TO: Frederick Ferrin, City Manager FROM: Leroy Staten, Acting G.S. Director In an effort to reach the expenditure level required to balance the budget, I submit the following proposal from the Parking Enforcement Division of General Services. To reach this latest reduction target of $36,000, and in conjunction with the reorganization of the General Services Department the following is being proposed. Reduce the number of supervisors by one. However, the salary savings would be only $6,501 due to the fact that our Supervisors are Civil Service Certified General Services Officers, and the Supervisor would return to a G.S.O. position, and a bumping process would ensue, eliminating the last hired. Since the City Manager has frozen two vacant G.S. positions, the natural bumping process will leave the General Services Department only one vacant G.S.O. position. The two (2) supervisors will be responsible for covering supervision of shifts, citation issuance, and covering calls for services. Eight (8) General Services Officers will enforce vehicle and municipal codes, respond to complaints and ensure proper stall turn -over. By the elimination of a supervisor and an officer we will no longer be able to respond to every call in as timely and expeditious a manner. We will be reduced to responding to calls as manpower permits. Injured and deceased animal pick-ups have usually been within 3 to 5 minutes. With this reduction in staffing, we project the reaction time to climb to between 20 minutes and 1 hour. We shall no longer be able to provide thorough enforcement of time -limit parking to insure proper turn over of stalls. This will result in complaints from the businesses, because the cars park too long and impede those that would park to shop. Responding to written citizen complaints, with the promptness we pride ourselves in providing, will be compromised. The loss of a supervisor will result in a gap of supervision in the field. Lack of adequate supervision in the field results in unresolved citizen complaints, unqualified decision making, and strained leadership guidelines. 2 Overtime The parking enforcement division's overtime has been reduced by $4,000 thus there will be less money available to cover sickness, vacation, special assignment, business holidays, etc. Vacation/Sick Pay Off & Accrual Cash In Vacation /Sick Pay Off & /Accrual Cash In will be reduced proportionately to the amount of reduction in salary. The cost savings in Vacation/Sick Pay Off is $98.00. The cost savings in Accrual Cash in will be $98.00. Part Time/Temporary I have to reduced our part time staff by one Parking Enforcement Officer and one Summer Booth Cashier, saving $9,330.40. The effect of the loss is fewer people to service the needs of summer programs and enforce the rules and regulations associated with the summer time beach going crowd. Retirement/Other Benefits Retirement and other benefits will be reduced proportionately to the number of people reduced. The savings is $854.00 Maintenance Materials I have reduced the Maintenance Materials by $2,000. The only monies left in this account are $4,000 for replacement of meter parts. However, it's very difficult to determine what kind of damage may occur during the course of a fiscal year. We may have to use this money within the first few months of the fiscal year. July, August & September are normally hot months and the meters get a lot of use. Motor Fuels & Lubes I have reduced motor fuels & lubes in anticipation of less need predicated on fewer people & vehicles on the road. Saving $2,000, decreasing the amount from $8,000 to $6,000. Equipment Less than $500 I propose reducing this item by $500, which means we will not be able to purchase replacement boots for booting scoff -law vehicles, and storage racks for print out reports, which means they will lie on the floor. Non -Capitalized Assets I am proposing that we reduce Non -Capitalized Assets by $10,000 to bring this account to zero (0). No new meters will be purchased, and the remaining meters will have only $4,000 from which to purchase replacement parts. Should we have a catastrophe or some unforeseen mishap, we will only have a total of $4,000 to maintain and service all the meters within the City. Our meters will have to last longer before being replaced; however, we will attempt to boost our maintenance schedule to compensate. The City Manager's recommended budget, reflects a reduction of $147,000+ from the Department's request. This total figure includes a reduction of $111,000+ pursuant to the initial Budget Hearing request, and an additional $36,000, as requested after the first workshop. These reductions include eliminating one full-time and one part-time position, training expenses, vehicle purchases ($40,000), and new parking meters ($15,000), (originally, in conjunction with a 5 -year plan to replace all the POM meters with tamper -proof Duncan meters, $25,000 was budgeted), and reducing membership expenses and parking office operating equipment. The department will not be able to keep abreast of current trends, laws, and possible revenue enhancement activities. However, we have established some networks we feel will help keep us in tune. Animal Control In response to the first budget reductions, I proposed cutting $3,892, by taking out all training ($1,500); all conference expenses ($500); reducing by $1,000 purchases of needed Animal Control equipment ($2,000 reduced to $1,000); $446 in vacation sick pay off and $446 accrual cash -in. I am proposing to cut an additional $800 from equipment purchase, leaving only $200 to buy traps, gloves, restraining apparatus, etc. We will take advantage of any mandated training we can through L.A. County, and attend free seminars and classes when applicable. Contract Services - Private, is totally based on the number of hurt or injured animals delivered to the veterinarian for treatment. We attempt recovery of costs borne from the owners, when possible. Contract Services - Government. We contract with L.A. County to house and feed the animals we pick-up. However, to offset the cost of services rendered we have increased our fees to commensurate with the County's, so that required services are paid by the animal's redeemer. 1 0 CITY OF HERMOSA BEACH MEMORANDUM TO: Rick Ferrin, City Manager FROM: Public Works Budget CommitteeL SUBJECT: Additional $40,000 Reduction in Public Works Expenditures (Amended per City Manager) DATE: June 18, 1992 Public Works proposes to make additional reductions, as requested, to its overall FY 92-93 expenditures by $40,057 as follows: ADMINISTRATION/ENGINEERING: 1. Reduced full time position of Administrative Aide to 3/4 position. (Loss of salary and benefits.) $ 9,969. 2. Reduce Motor fuels and lubes. 3. Reduce auto maintenance. STREET MAINTENANCE: Reduce private contracted services for the Downtown/Pier maintenance estimated to be as follows for FY 92-93: $ 200. $ 200. 1. Power sweeping outside of VPD to be done by City: $ 9,288. 2. Steam cleaning to be done by City outside of VPD area. ($17,400) (40%) $ 6,960. 3. Savings to VPD due to City doing the steam cleaning at times others than the Fiesta. ($17,400) (60%) = ($10,400) FISHING PIER MAINTENANCE: 1. Trash pickup (reduced from 7 days a week to 5 days a week). $4,792 - ($320) (12 months) $ 952. 2. Maintenance of pier (reduced from 7 days a week to 5 days a week) . $11,264 - ($773/month) (12 months) $ 1,988. PARRS MAINTENANCE: 1. Delete tree trimming. $8,000 BUILDING MAINTENANCE: 1. Delete Police Department once monthly floor stripping/rewaxing currently done by private contractor. $ 2,500 Total Reduction: $40,057 cc: Viki Copeland, Finance Director LeRoy Staten, Acting General Services Director Steve Wisnieski, Director of Public Safety Mary Rooney, Community Resources Director Vern Highfield,. Public Works Superintendent pwadmin/budmem CITY OF HERMOSA BEACH MEMORANDUM DATE: June 17, 1992 TO: Finance Director Viki Copeland FROM: City Manager Frederick Ferrin RE: Budget Reductions, Round II ***************************************************************** The City Manager's budget has been reduced by $1,200.00. This reduction was made by removing funding ($600) for the ICMA con- ference, ($280) from monthly conference expenses, and all funding ($320) for the City Manager Division spring seminar. I shall attend these conferences but at my own expense. Additionally, I have cancelled membership in the American Society of Public Ad- ministration for a savings of ($80). Total savings in the City Manager's budget is $1,280. FRF/ l d (3 CITY OF HERMOSA BEACH INTER -OFFICE MEMO To: Viki Copeland, Finance Director Date: June 15, 1992 Subject: Budget Reduction From: Marguerite Sturges, Computer Systems Manager Data Processing was requested by the City Manager to reduce the '92-93' budget by $6,000. This was accomplished by the following methods: 4201 Contract Services/Private - Software. Support $33,664.00 Hewlett Packard Software Support contract has been modified to delete COBOL II* software support and TeamLine** services for '92-93', which will have a savings of: $ 5,318.00 Apple II software support will be canceled, a savings of: 100.00 4315 Membership 0.00 Current memberships will not be renewed for a savings of: Total Reduction 585.00 $6,003.00 *COBOL II - Programming software version for HP3000, created and supported by HP. This will eliminate future upgrades to this software program. **TeamLine - Assigned HP Consultant provides assistances with software upgrades, plan system growth, problem solving, product usage and access to additional HP resources as needed. If you have any questions, please call me at ex. 253. /� i. erite urg•s, uter Systems Manager cc: Frederick Ferrin, City Manager �T CITY OF HERMOSA BEACH MEMORANDUM PLANNING DEPARTMENT TO: Frederick R. Ferrin, City Manager Viki Copeland, Finance Directo FROM: Michael Schubach, P1 7f�l SUBJECT: 2nd Round of Budget Reductions DATE: June 16, 1992 ctor The following is a prioritized list of staff reductions with rationale and impact. Position Reduction Rationale/Impact Minutes $6,000 Currently, generally detailed minutes are Secretary provided. The planning staff could assume the function on a rotational basis. The minutes would be prepared similar to City Council minutes with the names of the various speakers, and the Planning Commission's motion on each item. Both audio tape and video tape would be available for detailed minutes. The impact would be less informative written minutes which are useful for items that go onto the City Council. Planning staff time would be needed which at this time is used for other duties, prolonging the completion of various projects. Clerical $3,000 Planning Department has a continual need Helper (36% for filing, photo -copying, map updating, reduction) record updating, and other miscellaneous clerical functions. These duties can be performed by other staff members, but will reduce time spent on other duties, prolonging the completion of various projects. RESPONSE In response to comments made regarding the Advanced Planner at the last budget session, the following information is provided: Position Reduction Rationale/Impact Contract $10,580.00 This position is at this time Advanced (25% exceptionally important and the least Planner reduction. desirable to reduce. The law requires an Includes up-to-date internally consistent general Retirement plan; the City has neither. Further, the Savings) current plan does not meet state guidelines. This situation could result in legal action against the City. Without funding -of this position, no plan will be prepared. The expertise, and staff time will not exist. Additionally, a variety of requested special studies, and zoning ordinance text amendments will not be completed and will be delayed for significant periods of time. Reducing this position to 3/4 time will probably result in resignation in the near future, and prolong the time necessary to revise the General Plan. plandoc/budre2 /,9 cnry IDIIERMOSA I.. 1EACIHI MEMORANDUM June 17, 1992 TO: Frederick R. Ferrin, City Manager Viki Copeland, Finance Director FROM: Steve S. Wisniewski, Director of Public Safety R E: Additional Budget Reductions ***************************************************************************** As you know, in the first round of budget reductions the Police and Fire budgets, already very lean and only included items essential to maintaining the current operation, were slashed by $227,220. These reductions included elimination of salaries and benefits for two sworn officers positions; elimination of all training and conference funds in the Fire Department; elimination of all equipment requests in both departments except for those absolutely essential for officer safety; elimination of all training and conferences in the Police Department except for that necessary to keep current with computer operations; and numerous other reductions. At the budget workshop of June 8, 1992, Council was informed that any other cuts in the budgets would require elimination of positions and actual layoffs of personnel. Pursuant to your June 11, 1992 directive to further reduce the Police and Fire Department budgets by and additional $120,000, the following reductions are submitted for consideration. POLICE Account: 001-401-2101-4103/ Salaries - Safety Amount: <$50,306 > Service: This would be the elimination of one Police Officer. Impact: This would be the loss of one more officer on top of the two officer positions that have been de -funded. In elimination of the officer position, the least senior officer in the department would be the officer that is eliminated. This officer is currently assigned to downtown foot and beach patrol. When this officer is layed off the position will have to be filled on an overtime basis, or we would have to transfer an officer from another assignment to fill the gap during the summer. Filling the position on overtime will increase our overtime expenditures; transfer of an officer assigned to investigations will result in that officer's caseload being distributed to the other investigators and will cause increased time on the cases; transfer of an officer assigned to traffic will result in a reduction in traffic citations and revenue; transfer of an officer from patrol would result in some overtime to fill the position on patrol in order to maintain minimum staffing as mandated by contract and for officer safety. 7 Account: 001-401-2101-4105 / Special Duty Pay Amount: <$2,620> Service: Additional monthly pay (by contract) for a police officer designated to serve as the Crime Prevention Officer for the Department in addition to the regular duties and salary. Impact: The Officer who had been doing this duty recently resigned the assignment and it is currently unfilled. We propose not filling it at this time. With the elimination of this special duty pay for an officer assigned to handle the crime prevention activities for the City we will not have an officer assigned to the crime prevention program. Although not an extremely active program, the crime prevention duties include participation in the weekly cable TV show, "Beach Beat"; submitting a weekly crime log and crime tips to the local newspapers; handling Neighborhood Watch activities; and various speaking engagements in the City. Account: 001-401-2101-4112 / Part Time -Temporary Amount: <$7,000> Service: Funds for services of part-time employee used to assist with the records function. This position includes the following duties. Entering all new and existing businesses in the computer so that the information is available to department personnel. The processing of all DUI information for dissemination to the Department of Motor Vehicles . Verifying all past arrested persons have been entered into the computer system by both name and PD number. Cleaning up file folders as they fill up. Verifies numerical order of reports. Maintains the bicycle registration file insuring that all bicycle licenses that are issued are filed in three different filing systems allowing us to locate a bicycle owner by name, license number, or serial number. The position also sends out letters to the bicycle owners when it is time to renew their licenses. Impact: Elimination of these funds will cause increased work load on the remaining records personnel and will increase amount of time to process citations and records. Account: 001-401-2101-4201/ Contract Services - Private Amount: <$14,728> Service: Prisoner Medical Services reduced by $4,000, these funds cover the expenses incurred with ambulance transportation and medical treatment of prisoners. Impact: We will attempt to minimize the potential medical bills by having the officers and the, PSO's screen the individuals taken into custody prior to placing them in our facility in order to release those that may result in medical problems; much depends on the charges and the health of the prisoners that are taken into custody. Service: State Wide Transportation which was budgeted at $2,500 covers the cost of picking up prisoners arrested anywhere in the State of California for a Hermosa Beach warrant. Occurs approximately 2-3 times per year at best. Impact: There are not many of these incidents each year and we would carefully evaluate each case and have the other departments cite the individuals out instead of having them picked up. Service: Range Qualifications was reduced by $2,728. Impact: Reduction in the number of hours spent on firearms training and practice by the officers. Service: Background Investigations which was reduced by $4,000 funds a private investigation service that conducts investigations on police department employee applicants in accordance with POST mandated guidelines. Impact: Since there will likely be very few new employees hired during this budget year, the funds left in the account should be sufficient to cover any authorized hires. Service: WETIP was budgeted for $1,500 and covered our participation in this nationwide program which provides tips on criminal activity occurring within our jurisdiction. Impact: We receive approximately 2-3 WETIP letters per month. We have contacted WETIP and have been informed that we would still recieve any information regarding crime activity in our City. Account: 001-401-2101-4251/ Contract Services - Government Amount: <$3,500> Service: Juvenile Diversion funding of $3,000 is eliminated for this regional program that our department has participated in for many years. The program provides alternative juvenile placements (counseling, etc.) in lieu of filing criminal charges on juvenile offenders. Impact: Our department would not be able to refer cases to this service. We have used the service approximately 3-4 times a year. Service: State Purchasing funding of $500 eliminated. This allowed the City to participate in purchasing items at State bid prices. Impact: Minimal impact since this service is considered only when purchasing bulk items or vehicles. This service was not used during the 91/92 fiscal year and we do not expect to use it in 92/93. Account: 001-401-2101-4305/ Office Operating Supplies Amount: <$6,500> Service: Publication of Crime Prevention Pamphlets. Impact: We will not have any pamphlets printed for distribution. Account: 001-401-2101-4315/ Membership Amount: <$195 > Service: Memberships to APCO $70, 911E $60, and CPOA $65 will be eliminated. Impact: Our department will not receive the various publications and materials that are disseminated each year from these organizations. Account: 001-401-2101-4316/ Training Amount: <$1,800> Service: Digital Training elimination of $1,500. This is training for our in house computer technician on computer software upgrades that are scheduled to occur this year. It assists the technician by giving her the training to properly manage and operate our computer programs as they are upgraded. Impact: There will be no training on the coming upgrades and we will have to rely heavily on the vendor to assist with trouble shooting and getting the bugs out of the new program. There may be an increase in system errors and down time if we are unable to make the necessary corrections in-house. Service: Outside Agency Expense elimination of $100. These funds were for off site training(not covered by POST) at other departments for supervisors and managers. Impact: We will only send personnel to free or POST reimbursed training. Service: Juvenile Officers Luncheons elimination of $100. These funds were for monthly training luncheons with area juvenile officers for the purpose of exchanging information on criminal activity and to learn about new legislation and procedures. Impact: Loss of networking and information exchange with area juvenile officers. Officers may opt to attend at their own expense. Service: South Bay Chief's meetings and lunches elimination of $100. These funds were for expenses incurred in attending various meetings of the South Bay Police Chief's. Impact: The Chief will attend the meetings at his own expense. Account: 001-401-2101-4317/ Conference Expense Amount: <$2,600> Service: "NUG"(National User's Group) Conference eliminated $1,800. The NUG conference is similar to the Digital Training in that it provides an opportunity to our computer technicians to receive information on new equipment and upcoming software programs and upgrades. There is networking, exchange of information and training in new computer software and program management Impact: We will not have anyone attend the conference and will have to rely heavily on our contacts in other departments and the the vendor to supply us new equipment information and to assist us with trouble shooting and getting the bugs out of new program upgrades . There could be an increase in system errors and down time. Service: Clears Conference eliminated $800. The Clears Conference is a conference for Police Records Managers who receive training in the areas of liability, records processing, budgeting, motivation, legislative and State updates. Impact: Loss of networking with other Police Records Managers. Loss of information on legislative updates, laws, etc., and how they effect the operations of a Police Records Bureau. We will have to rely on our local contacts with the other departments in order to keep abreast of current trends and information. Account: 001-401-2101-5401/ Equipment - Less than $500 Amount: <$380> Service: Elimination of funds for filing cabinet $300 and a K-9 bite sleeve $80. Impact: We will not be able to purchase these items unless we can obtain the necessary funds from other sources. FIRE Account: 001-401-2201-4102/ Salaries - civilian Amount: <$32,658 > Service: This would be elimination of the only civilian Clerk Typist position that the Fire Department has. The position handles all correspondence and calls for the department; prepares all employee ID cards for all city departments; handles all department billings and collections for fumigation permits, fire permits, paramedic calls, etc; prepares all purchase orders and obtains materials for the department; sends weed abatement letters; completes inspection reports; prepares personnel actions; processes the payroll and accruals for the department; prepares the monthly departmental report; and a multitude of other duties. Impact: Elimination of this position will not eliminate the work that must be completed. The work will have to be spread out to others. It will add to the workload of the Director's secretary and will cause firemen to be in the office completing clerical work at a much higher cost than a civilian and it will keep them out of the field where they could be doing inspections. Account: 001-401-2201-4315/ Membership Amount: <$125 > Service: We have eliminated the memberships for South Bay Paramedic Coordinators; South Bay Haz Mat Committee; South Bay Arson Investigators; and South Bay Fire Prevention. Impact: Loss of networking and exchange of information with other agencies unless officers attend at their own expense. Account: 001-401-2201-5401/ Equipment less than $500 Amount: <$1,700> Service: We have eliminated the purchase of new scene lights for the fire engine and have reduced the number of sections of fire hose to 12 instead of 25. Impact: Purchase of the 12 sections of hose will give us the bare minimum necessary to replace unserviceable hose with none in reserve, we will have to purchase more in the future. We can operate with the lights that we currently have for another year. SUMMARY: Department Acct. No. Amount Reduced POLICE 4103 $50,306 41 0 5 $ 2,620 4112 $ 7,000 4201 $14,728 4 2 51 $ 3,500 4 3 0 5 $ 6,500 431 5 $ 195 4 31 6 $ 1,800 4 31 7 $ 2,600 5401 $ 380 FIRE 4102 $32,658 431 5 $ 125 5 4 01 $ 1.700 Total Reductions $ 124 , 1 1 2 CITY OF HERMOSA BEACH MEMORANDUM TO: CITY MANAGER FROM: CITY TREASURER RE: 1992/93 BUDGET REDUCTIONS DATE: JUNE 16, 1992 My office has removed all discretionary funding items from the Treasurer's portion of the budget (training, travel, etc). The Treasurer has also taken a 2% reduction in salary. To further reduce expenditures the Treasurer will work the month of August without net pay. This will create an additional cost reduction in the Treasurer's budget of $903.52. Gary L. B u sch City Treasurer c.c. Mayor and City Council Finance Director June 17, TO: FROM: SUBJECT: CITY OF HERMOSA BEACH 1992 Rick Ferrin, City Manager Viki Copeland, Finance Director Additional Budget Reduction Pursuant to your request, the following reductions are submitted to meet the Finance Department target of $5,000. Item Reduction Rationale/Impact Salary Retirement Medicare Vacation/ Sick Payoff Accrual Cash In Training Overtime Total $2,265 $298 $ 33 $ 34 $ 34 $235 $2,101 $5,000 The option of voluntary furlough or reduction in hours was offered to Finance Department personnel as a budget reduction device. The 3/4 Senior Account Clerk volunteered to take a total of six weeks off without pay during the year, to be taken in two week increments. She is a probationary employee and cannot yet use paid vacation time. The furlough will require coordination between the Finance Department and the Treasurer's Office for coverage since the duties cannot be absorbed by other employees in the Finance Department. A vacation request of the same frequency/duration without the circumstance of the budget shortfall would be denied, but is submitted here rather than a forced reduction in pay. Corresponds to the Corresponds to the Corresponds to the above reduction above reduction above reduction in salary. in salary. in salary. Corresponds to the above reduction in salary. Reduction in subscriptions for miscellaneous publications. Reduces overtime to pre -1987 dollar amount. Overtime is typically used during peak workload times of year, i.e., budget, audit. Reduction to this level will necessitate rescheduling and rearranging of duties for Finance personnel during those times, with some regular duties being performed less frequently in order to meet other deadlines. A recent example of this was postponement of warrant issuance to meet the budget submission deadline to the City Council. June 15, 1992 TO: FROM: CITY OF HERMOSA BEACH MEMORANDUM PERSONNEL DEPARTMENT 'Frederick R. Ferrin, City Manager Viki Copeland, Finance Director Robert A. Blackwood, Director,I1�U Personnel and Risk Management lll1 SUBJECT: Additional Budget Reductions Personnel Department Pursuant to your June 11, 1992 direction to further reduce the Personnel Department Budget by an additional $3,000, the following reductions are submitted. 1) Account: 001-401-1203-4316/Training Amount : <$1,800> Service: Participation in South Bay Employment Relations Consortium (SBERC) Impact: The SBERC is a Consortium of 14 South Bay Cities formed in 1988 to contract with the firm of Liebert, Cassidy & Frierson to provide five (5) days of training for municipal managers and supervisors. Training workshops focus on such issues as employment discrimination, workplace harassment, performance evaluation, conducting disciplinary investigations, law enforcement personnel issues and leadership techniques for supervisors, as well as other developing issues and legislation impacting the area of employee relations. Depending on the workshop topic, attendance from this City is 3 - 10 employees per session with an average attendance of 5 employees per session. At $1,800 for the five session series the cost per employee ranges from $36 to $120 (average cost $72) . In addition to the training workshops, the City is also entitled to unlimited consultation with any of the labor attorneys at Liebert, Cassidy & Frierson. This service allows the Personnel Director, or any department director, to obtain general or specific advise prior to formulating a decision regarding a meet & confer or disciplinary issue. While the necessity for these consultations is infrequent, for the 6 - 10 calls made annually the City saved $250 - 420. Utilization of the consultation service in essence reduces the training cost per employee. Elimination of our participation in the SBERC will reduce by 5 days (40 hrs) training opportunities for supervisors and managers. This service was maintained in the initial budget preparation because it is considered a cost-effective method of providing some training for line supervisors and managers when other training is being eliminated from individual department budgets. The Personnel Staff will attempt to provide additional training opportunities throughout the year by utilizing services which we can either beg, borrow or steal. The impact of not renewing our membership in the SBERC will not be significant until after February 1993 when the current training cycle ends. 2) Account: 001-401-1203-4305/Office Supplies Amount : <$500> Service: Office Supplies/Copy Costs 3 Impact: In order to meet this reduction, the Personnel Staff will, of necessity, decrease the use of supplies and copies. As copy costs comprise a large percentage of charges to this account, large projects such as MOU revisions, employee newsletters, recruitment bulletins, etc., will be limited as to the number of copies produced. Account: 001-401-1204-4201/Contract Services Private Amount : <$200> Service: Recruitment Advertising Impact: Although there is a selective hiring freeze, recruitment will be necessary for any positions which become vacant and are subsequently authorized. The specific position which is vacant determines the level of advertising necessary (i.e., Daily Breeze, L. A. Times, Western Cities, etc.) Also, there are certain temporary positions which are recruited for seasonal needs (recreational staff, summer program parking enforcement, etc.) which require some ad placement. To meet this reduction, Personnal Staff will limit the amount of ad space purchased and restrict the number of ads placed in the Los Angeles Times which is the more expensive alternative. 4) Account: 001-401-1203-4320/Medical Examinations Amount : <$500> Service: Pre -Employment Physicals Impact: Physicals are required of all employees prior to appointment. There are three levels of physical exams; a basic physical for clerical/sedentary positions; an intermediate exam for more physically demanding positions (i.e., maintenance worker); and safety physicals. The cost of the basic exam is $47; intermediate $129; and safety $224. The safety physical is also required of prospective reserve police officers. In addition to pre-employment physicals, necessary return -to -work evaluations following non -industrial medical absences are charged to this account. The reduction in this account assumes stability in employee turnover (including police reserves) and the impact of the selective hiring frees. SUMMARY Department Personnel 001-401-1203 Total Reduction : $3,000 Areas Impacted : Training $1,800 Advertising 200 Office Supplies: 500 Medical Exams 500 pers/cut CITY OF HERMOSA BEACH MEMORANDUM June 18, 1992 TO: Viki Copeland, Finance Director FROM: Robert A. Blackwood, Personnel Director SUBJECT: Impact on Unemployment Insurance for budget reduction layoffs Should the City Council eliminate one (1) Clerk Typist position and one (1) Police Officer position as presented in the Police and Fire Department's budget reduction proposal, the Unemployment Insurance Account #705-401-1215-4186 should be increased by $3,500 The current amount budgeted is $12,000. Projecting 26 weeks of benefits for the two employees affected, the total impact would be $9,980 (weekly benefit of $190 X 26 weeks X 2 employees). With our current liability, approximately $6,000 is anticipated to be spent on existing claims (actual amount is dependent on when any one claimant secures employment). The remaining $6,000 budgeted is based on historical utilization. f CITY OF HERMOSA BEACH INTER -OFFICE MEMO TO: MAYOR AND MEMBERS OF THE CITY COUNCIL DATE: 6/11/92 RE: PROPOSED BUDGET CUTS FROM: MARY ROONEY, COMMUNITY RESOURCES DIRECTOR ***************************************************************** ***************************************************************** Listed below are the solutions proposed for the Community Resources Department and the Cable TV Division in order to meet the target of $14,000 in reductions that have been assigned by the City Manager: COMMUNITY RESOURCES DEPARTMENT Revenue: $5,000 account #3894 other recreation programs Impact: In an attempt to retain our current programs, staff has analyzed those programs which have been traditionally subsidized (the vast majority of recreation program pay for themselves) to see if there is any potential for the addition of user fees. One such program is the Kid's Club afterschool park program which was offered free of charge this fiscal year. Staff recommends charging an annual fee of $100 for participants (at the last budget session the fees were recommended at $50 annually) which would meet the costs of part time staffing for the program. This fee increase will provide an additional $5,000 to the general fund. Council should be aware, however, that we do provide financial assistance to Hermosa Beach youth who are in need. It is anticipated that the requests for fee reductions and or waivers may increase with the addition of program fees. Reductions: #4106 ($ 250) Overtime #4112 ($2,182) Part time employees #4185 ($ 135) Social Security #4189 ($ 32) #4201 ($ 375) Youth Theatre #4316 ($ 250) Training #5401 ($1,000) Equipment less than $500 total: ($4,224) Impacts: The final $250 cut from the overtime budget impacts the Department's ability to utilize part time employees in excess of their allocations during events/activities that have long hours (i.e, excursions, special events). This means that Recreation Specialists will have to cover additional hours at the expense of administrative leave accruals. As Council will recall, due to the hiring freeze, the Community Resources Department has been operating without a Clerk Typist allocation. Staff has already experienced the tremendous impact of this lack of clerical support especially as participation and registration in our programs has grown with each fiscal year. In addition to the less efficient use of the professional staff's time (i.e, more time dedicated to clerical tasks at the expense of attention to programs etc.), this reduction has placed a significant strain on our ability to keep up with day to day routine tasks such as processing purchase orders; handling the phone traffic and agenda cycles. In order to offset this staffing reduction, we have been utilizing a Senior Recreation Clerk 25 hours a week to help us to meet our clerical demands. The reduction of $2,182 listed above translates into a reduction of this part time allocation from 25 to 20 hours a week. The impact will of course be more of the above. While we will do everything possible to maintain the office operations in a professional and efficient manner, I have concerns that clerical error rates may increase with less people doing more work. The $375 that will be eliminated from the contract services account would also reduce funding for the youth theatre series (to $625) which has traditionally run in the Spring each year. Staff will request that the Community Center Foundation raise and allocate funds to enhance the program's funding to the traditional level of $1,500 - $2,000. Reductions in the budget allocation for staff training (there will be a remainder of $250 in the account) will mean less opportunity for full and part time staff members to be updated on legal, programming and professional issues as they arise. In this round of cuts, the equipment budget has been reduced to $0. While it is anticipated that this reduction will not have a devastating impact on recreation services, as this is the second year in a row of no equipment purchases, the clock is ticking away on wear and tear for tables, chairs and other items. Summary: At the first budget hearing, staff presented a proposed budget that included revenue projections of $359,000 and requests for appropriations of $367,674. With the adjustments listed above, revenue projections have been increased to $364,000 with appropriations reduced to $363,450. Staff has attempted at every budget cut to maintain the end level service to the public which in this department means maintaining recreation programs for the community. To date, we have not eliminated any programs on the roster (though some will be reduced in size and/or level of funding); rather we have focused on cutting other department expenses and when necessary have looked to the addition of user fees in lieu of cutting what we have evaluated to be important programs for the community. Over two years ago, we "flattened" the organization in order to maximize the end service to the Community. I feel confident in stating that even without the above adjustments, we have been providing a tremendous bang for the buck in recreation programming and services as compared to other municipalities. A study staff has currently submitted to the Parks and Recreation Commission demonstrates this fact as our subsidy level (dollars per resident) falls dramatically short of the mean. Since participation in our programs and growth in programming is on a positive trend, the City can take pride in the fact that we are providing this service to the community without placing an undue burden on the general fund. ***************************************************************** Reductions: CABLE TV #4102 ($4,061) regular salaries #4110 #4111 #4189 total: 61) vacation/sick 61) accrual cash 534) retirement 59) Medicare ($4,776) Impacts: Historically, the City has maintained a half time allocation for Cable TV Coordinator. This function was traditionally performed by an Administrative Aide in the General Services Department. When a half time allocation vacancy occurred in General Services, (in recognition of the fact that the Cable TV Board would be reinstated and that the critical period of Franchise renewal would be forthcoming) I recommended that instead of filling that post, that the Administrative Aide from General Services pick up different duties and that we would recruit for a half time Cable TV Coordinator who has expertise in the field. Thus we have the half time position currently filled by Warren Carter. In order to maximize the use of his time, we added duties to the job that included acting as the City's public information officer (press releases etc.) so that his duties would not be limited to cable TV. The cut listed above, would reduce his hours from 20 per week to 15 with a corresponding elimination of his responsibilities to serve as public information officer. The impact will be a reduction in communication with the public for City programs (from all departments) which has been (since Warren was hired) at an all time high. Council should be aware that the Franchise renewal process requires some experience and expertise in the area which Warren Carter has. This position carries a sunset clause with it that means it will be re-evaluated once the renewal is completed (October, 1993). Absent a Cable TV Coordinator, staff projects that the City would have to retain consulting services that may be more costly than paying for a (now) .375 employee. Furthermore, through the RFP process, the Cable TV Coordinator anticipates being able to have the cable company reimburse the City for all Franchise renewal related expenses including his time. Summary: The Cable TV budget originally proposed revenues (from 5% Franchise fee) of $134,000 and appropriations of $21,648. With the adjustments listed above, appropriations would be decreased for a total request of $16,338 (does not include retirement adjustment indicated above - it is listed under Finance). Respectfully Submitted: Mar ' 4 ey Co unity Resources Director cc: Parks, Recreation and Community Resources Commission City Manager Finance Director i- Finance 1. Finance General Services Planning Public Safety QUESTIONS/REQUESTS, 1992-93 BUDGET WORKSHOP JUNE 8, 1992 What has the county forecast for countywide secured assessed valuation (AV) growth been for the past few years versus the growth in Hermosa Beach? 2. Contact the South Bay Board of Realtors for available information relating to sales activity/volume.t?e'"7. 3. Review policy and volume of citation dismissals; review overall parking enforcement policies with respect to citation issuance. (This item will be agendized separately.) 4. Compare the ratio of employees in the Planning Department to the total number of employees (excluding Police and Fire) for Hermosa Beach and to other similar cities. Include a comparison of the functional responsibilities. 5. Evaluate the feasibility and cost effectiveness of re -joining or contracting with the South Bay Regional Public Communication Authority for dispatching services. (This item will be provided for June 30, 1992 meeting.) Review records management consultant contract. Can the City defer additional work or terminate contract? 0 Finance/ 6. City Clerk Public Safety Finance Finance/ General Services 7. What is the training cost of raising paramedic from the existing seven to nine? 8. Why did the Finance Department budget increase 1988-89 to 1989-90? staffing 21% from 9. Provide comparison of citation revenue with fully burdened expenditure of parking enforcement function to determine return per officer. (This item will be provided for June 30, 1992 meeting.) Provide accounts receivable aging of parking citations. (This item will be provided for June 30, 1992 meeting.) General 10. Services audit/budgetwk FINANCE DEPARTMENT Response to QUESTIONS/REQUESTS, 1992-93 BUDGET WORKSHOP JUNE 8, 1992 ANSWER: 1. What has the county forecast for countywide secured assessed valuation (AV) growth been for the past few years versus the growth in Hermosa Beach? County Forecast County Actual AV Growth AV Growth 89 10.94% 90 10.39% 91 9.85% 11.84% 11.64% 9.77% HB Actual AV Growth 14.05% 13.15% 9.22% Historically, the County forecast is lower than the actual growth in assessed valuation. The forecast for 1992 is 6.68%. Applying this growth factor to the 1991 AV for Hermosa Beach produces a 1992 AV of $1,575,062,098. The property tax levy for the past four years has been consistently at least .23% of the AV except in 1990-91 when it was .227% due to the implementation of a County charge for property tax administration. Applying .23% to the 1992 estimated AV produces a property tax estimate of $3,622,642. The current estimate in the 92-93 budget is $3,629,400. It is recommended that the current estimate be used and the actual levy will be reviewed at the six month point, Midyear Budget Review. FINANCE DEPARTMENT Response to QUESTIONS/REQUESTS, 1992-93 BUDGET WORKSHOP JUNE 8, 1992 2. Contact the South Bay Board of Realtors for available information relating to sales activity/volume. ANSWER: The Finance Director contacted both the President of the Board, Mr. Mickey Turner and Betty Ryan, another Board member regarding the request. Mr. Turner advised that, while the primary function of the Board is real estate listings, he is certain that some information can be provided and will discuss with the Executive Officer when he/she returns on June 18. Mrs. Ryan cautioned that any information obtained is only for multiple listings reported, meaning that single listings would not be included and some multiple listings may not be reported at all. Any information obtained will be forwarded to the City Council prior to the June 30 meeting. Two other agencies were contacted for information - the State Department of Real Estate and the California Association of Realtors. The State does not track this information and the Association of Realtors has only Los Angeles area information. CITY OF HERMOSA BEACH PLANNING DEPARTMENT MEMORANDUM TO: Honorable Mayor and Members of the City Council FROM: Michael Schubach, P SUBJECT: Questions / Requests, 1992 DATE: June 17, 1992 ctor 1992-93 Budget Workshop, June The attached charts are a response to question #4 which states the following: "Compare the ratio of employees in the Planning Department to the total number of employees (excluding Police and Fire) for Hermosa Beach and to other similar cities. Include a comparison of the functional responsibilities." In conjunction with the attached charts, note that all the city Planning Departments contacted perform the same functions with the exception of transportation and/or enforcement which are conducted by other city departments. p/memo4 lit Plemmimq Deparinsma Divulge(itiovall Men Planning Director Assistant Planner Gude Enforcement/ ' Zoning Administration Associate Planner Current Planning Planning Aide Assist Current &Advanced Planning Transportation $ other Miscellaneous Tasks; Back-up for all Contract Advanced Planner F'evise General Plan Adininistratve Aide General Office Management Transportation Administraticn; and Budgeting 1 Part Time Intern Assists Adrninistrati•, e Aide, Filing, and Updates flaps Comparision of Planning Departments in Nearby Cities • PD- Planning Director, ASP= Associate Planner, A= Administrative Aide, ADP= Advanced Planner, AP= Assistant Planner, PA= PLanning Aide, PTA =Part -Time Aide, CDD= Community Development Director, PLA= Planning Administrator, SP= Senior Planner, CE= Code Enforcement Officer, PS= Planning Secretary, SC= Senior Clerk, PP= Principal Planner, HS= Housing Specialist, RS= Rehabilitation Specialist, Gl= Graphic Illustrator, SS= Support Staff CityTotal Ratio of Planning Staff to Total City Staff (Excluding Police and Fire Departments) Planning Dept. Budget 1992.93 Total Planning Staff Total Cost of Planning Consultant Services 1991.92Planning Total Code EnforcementPlanning Positions in Dept. Total Transportation Positions in Planning Dept. 1990 City Population Dept. P Organizational Hierachy Hermosa Beach 4.7% $267,767 6 1/2 0 1/2 2/3 18,219 '1PD, 1ASP, 1A, IADP, 1AP, 1PA, 1/2 PTA Manhattan Beach 6.2% $865,250 9 $78,000 (1992-93 estimate) 5125,000 1 0 32,003 ' 1CDD, 1PLA, 2SP, 1ASP, 2AP, 10E, 1PS Redondo Beach 3.l% $686,680 10 $210,000 0 0 59,860 1PD, 2SP, 2ASP, 2AP, 2PS, 1SC Torrance 3.6% $1,577,400 36 5500,000 from planning budget; total 51,200,000 0 4 132,382 ' 1PD, 4PP, IIASP, 6AP, 4HS, 1RS, 'GI, 8SS El Segundo 5.3% $619,000 8 $238,000 1 1 15,149 '1PD, iSP, 1ASP, 2AP, 1PA, 10E, 1PS • PD- Planning Director, ASP= Associate Planner, A= Administrative Aide, ADP= Advanced Planner, AP= Assistant Planner, PA= PLanning Aide, PTA =Part -Time Aide, CDD= Community Development Director, PLA= Planning Administrator, SP= Senior Planner, CE= Code Enforcement Officer, PS= Planning Secretary, SC= Senior Clerk, PP= Principal Planner, HS= Housing Specialist, RS= Rehabilitation Specialist, Gl= Graphic Illustrator, SS= Support Staff June 17, 1992 City Council Meeting June 18, 1992 Mayor and Members of the City Council REVIEW OF RECORDS MANAGEMENT CONSULTANT CONTRACT At its budget workshop of June 8, 1992, Council requested a review of the records management consultant contract and a determination of whether or not the City could defer additional work on the program or terminate the contract. The contract does contain a termination clause which states that either party, by notice in writing, may terminate at any time the performance of services under said agreement. The contract also contains a clause which states that the services shall be completed within 15 months unless a different schedule is agreed to in writing by both parties to said agreement. Background The records management contract was approved by Council on October 8, 1991. The lack of a records management program was a concern of prior city clerks for many years. The problem was not created by the current staff or the preceding staff. It is the result of the accumulation of 85 years worth of records without having a uniform, systematic method of retaining those records in an organized fashion, with a tracking system to allow for rapid retrieval. The need for records management, as well as the need for professional help in the development and implementation of a program, was recognized by Councilmember Midstokke while she was City Clerk, and the current project was initiated during her term of office. The problem has merely compounded. The more records we accumulate, the more unmanageable they become. The longer the solution is delayed, the larger the problem becomes, making the final resolution more costly and time-consuming. A report to Council in March of 1991 included a survey on the volume of citywide records. The total number of boxes/file drawers was 1,440 (which would extend 900 yards, covering the length of nine football fields). The report included a breakdown by department. In September of 1991, a report to Council noted the increase in the volume of records during the six-month period -- i.e., the amount of Finance records increased by 17 boxes and the amount of Clerk's records increased by nine boxes. While there are obvious, direct costs associated with developing and implementing a records program, it is important to recognize the long-term costs of not having a program in place. Trying to find a document without a filing system is like trying to find a book in the library if there were no catalogue system. The time spent searching for information is a significant waste of funds, and the amount of valuable space we are wasting to store obsolete or duplicate records could be put to better use. Based on "cost -of -filing" figures reported by the Dartnell Business Institute (covering labor, supplies, space and equipment), and based on our volume of records determined by our survey in March 1991, our current annual record-keeping cost for active records alone is $155,520. With the proposed color -coded, numbered filing system, and the use of shelf filing rather than standard cabinets for file storage, staff labor would be reduced by 30 percent, and record storage floor space would be reduced by 70 percent. Our new annual record-keeping cost would be reduced to $111,057, providing an annual savings of $44,463. Eliminating the boxes of records stored in various locations within City Hall and off-site would obviously provide additional cost savings. With a records management program in place, which includes a unified filing system, procedures for the systematic purging of inactive files, and the destruction of obsolete records, our savings would be even higher. A standard rule of thumb when performing records management on office files is 30 percent are obsolete and can be destroyed, 30 percent are inactive files which can be boxed and moved to a storage location, and the remaining 40 percent are active records. When performing records management on older records (those currently stored in various on-site and off-site locations), the rule of thumb is that 50 percent to 75 percent are obsolete and can be destroyed, while the remainder are inactive (occasionally files are found that should be with active records). A record is the memory of any organization and the only purpose of filing a document is to be able to retrieve it later when it is needed. It is now estimated that the average cost of each misfiled record is over $100. One lost record not only creates delays, it can often necessitate that the work be redone. A good system will save money through more efficient processing and management of information, and can save about 30 percent in staff time now needed to access and maintain the files, which would allow for more effective use of staff's time. We also have an obligation to our citizenry to have our records in good order to avoid the potential for any legal problems, which could be far more costly than any amount of money that may be spent on a records management program. The records manager in Redondo Beach noted that the decision to finally hire a consultant and implement their records management program was prompted by two law suits against that city. One pertained directly to record retention and the other was the result of an injury to a staff member trying to retrieve a document (boxed stacked floor to ceiling toppled over, knocking the employee from a ladder onto the floor). The same potential liability issues exist here, and a law suit could easily far exceed any amount of money this program might cost. Status of Records Management Program Under the current contract, compensation to the consultant is $50,000, with monthly payments of $3,333, plus reimbursement for all direct expenses, up to a maximum of $2,500. We are about 6-1/2 months into the program now (services commenced in December of 1991) -- we will be 7 months into the program at the end of the month. To date, $20,512.50 has been paid to the consultant, and another billing in the amount of $3,333 (for the month of June) is expected prior to the end of the fiscal year, for a total of $23,845.50 paid to the consultant out of the FY 91-92 budget, with a maximum expenditure of $28,654.50 during FY 92-93 for the eight months remaining under the contract. Most of the services performed by the consultant to date have been in the design phase of the program (i.e., the development of a citywide filing system, which was created using the inventory prepared by each department at the direction of the consultant, and revised where necessary based on staff input). The filing system (which is the only work product we have in -hand at this time) is the basis for the development of the cross-reference guide (being developed by the consultant now) and the retention schedule (the next document to be prepared). The procedures manual for the active records program and the inactive records program, the systematic destruction of obsolete records, the disaster recovery program, etc. would come from the consultant at a later date. We have begun the process of sorting through the records -- separating active from inactive, and creating a master list of actual files (active records) that will also be used for the preparation of file labels, which would then be followed by the actual conversion process. This work is being done on Saturdays by the City Clerk, the records coordinator from the departments being worked on, and volunteer assistance (to avoid the expenditure of hiring temporary employees). This work is currently underway in the offices of Personnel and City Clerk, with the intent of moving through each department in the same manner. The Personnel Department (one of the simpler, more straightforward departments) is nearly complete. Due to the diversity and the higher volume of records in the Clerk's office, it is one of the more difficult departments to do and the process will take longer. Analysis of Terminating Contract If the contact is terminated at this time, the only completed work product the.City would have is the filing system guide, and possibly the cross-reference guide (depending on its status at the time of contract termination). Since most of the work to date has been in the design phase, rather than the development of physical work products, unless we continue at a later date with the same consultant to complete the program, much of the money spent to date would be lost if we had to start over in the process at some future date. Also, if the project is stopped at this point and delayed for a year or more, most of the weekend volunteer and staff work done so far will have to be re -done, since the list of active records will change. Without the cross-reference guide, the numbered filing system cannot be implemented. Without the inactive records program, there would be no procedure for purging inactive files from the active records and processing those inactive records. Without the retention schedule, there would be no destruction schedule for obsolete records and no authority for their destruction. Alternatives To fully implement the program, open space filing equipment and supplies are necessary. The open space filing equipment would maximize the benefits of the color -coded, numbered filing system that has been developed. The supplies (file folders, labels, etc.) would make the system operational. The requested dollar amount in the budget was $40,000, with an estimated $9,000 for supplies and $31,000 for equipment for the citywide program. If we continued with the contract and developed the full program and purchased the needed supplies ($9,000) to convert to the new system, without purchasing the needed filing equipment at this time, we would have a system that is operational, even though we would be lacking the full benefits of the color -coded, numbered filing system. Two -tab file folders are available (top and side tabs) for labeling during the conversion process, so that the files could be moved into the new equipment when it is purchased without the expenditure of additional supplies at the time they are moved. The equipment could then be phased in, as funds permit, without losing all of the efforts made to date to implement the system. Filing equipment for the vault only (the area most in need of equipment) is estimated at $8,000. If we continued with the contract and developed the full program, but put the purchase of filing equipment and supplies on hold, we would have in hand a full program that would be ready for implementation at any time. Efforts toward implementing the program would be put on hold, since much of the work would be a waste of effort that would need to be repeated at the actual time of conversion. It is important to remember that creating and implementing a records management program is a one-time expenditure. It is an investment in the future, which will pay for itself many times over in the years to come. The cost of not having a system is a continual drain on the City's resources and a potential liability. While I certainly share Council's concern regarding expenditures at this time, the significant cost of not having the program cannot be ignored. Elaine Doerfli g, y Clerk PZCO2D Eti Ci Section 13. Taxes. The CONSULTANT shall have full and exclusive liability for the payment of any and all taxes and contributions for unemployment insurance, retirement benefits, life pensions, annuities and similar benefits which may not or hereafter be imposed by law or collective bargaining agreements with respect to persons employed by the CONSULTANT for performance of work under this Agreement. Section 14. Insurance. The CONSULTANT agrees to provide evidence satisfactory to the CITY of insurance coverages with CITY designated as an additional named insured, with the provision that such insurance shall be primary for any loss or injury arising from the CONSULTANT's performance of this Agreement, and further providing for 30 days notice prior to any cancellation or material change, to be maintained in full force and effect for the duration of this Agreement, as follows: A. Comprehensive General Liability: $1,000,000 combined single limit for bodily and personal injury, injury to or destruction of property, including loss of use resulting therefrom; B. Automobile Liability Insurance: $100,000/$300,000 limits; C. Worker's Compensation Limits, as required by the Labor Code of the State of California, should CONSULTANT hire employees to perform under this Agreement. The CITY agrees to reimburse CONSULTANT for additional coverages required by the CITY but not listed specifically above. Section 15. Indemnification. The CONSULTANT hereby agrees to save, hold harmless, defend and indemnify the CITY and its officers, agents and employees from any and all liability or claim of liability, including attorney fees, arising by reason of personal injury, death or property damage and resulting from or arising out of or in consequence of CONSULTANT's negligent acts, intentional acts, errors or omissions in the performance of services under this Agreement. Section 16. Termination. Either party, at its option, by notice in writing, may terminate at any time the performance of services under this Agreement. Upon receipt of any such notice, the CONSULTANT shall immediately discontinue services and deliver to the CITY all completed work and work in process, including preliminary drafts and organizational plans. In the event of such termination, the Clint 01? IHI1EI18MOSA I:; EACH MEMORANDUM June 17, 1992 TO: Frederick R. Ferrin, City Manager Viki Copeland, Finance Director FROM: Steve S. Wisniewski, Director of Public Saf RE: Questions/Requests from the June 8, 1992 Budget Workshop ***************************************************************************** WHAT IS THE TRAINING COST OF RAISING PARAMEDIC STAFFING FROM THE EXISTING SEVEN TO NINE? Staff has determined that the costs necessary to increase the number of Paramedics from seven(7) to nine(9) would be: Training $6,000 : Tuition to Harbor General and Daniel Freeman is $3,000 per student. Salary $3.000: This would be the amount of annual salary increase for funding two additional paramedics. Total $9,000 FINANCE DEPARTMENT Response to QUESTIONS/REQUESTS, 1992-93 BUDGET WORKSHOP JUNE 8, 1992 8. Why did the Finance Department budget increase 21% from 1988-89 to 1989-90? ANSWER: Part-time personnel were used in 1989-90, at a cost of $5,600, primarily to stay current with citation payment processing during turnover in the Account Clerk positions. No part-time personnel was used in 1988-89. Contract service costs increased by $18,891 in 89-90 due to several factors - the implementation of sales tax auditing; review/audit of Southwest Towing and Allright Parking; independent auditor costs related to review of the Certificates. of Participation (COP'S) on Hermosa Plaza and preparation of the Comprehensive Annual Financial Report (CAFR) for the first time; first billing for the consulting firm who updated the user fee study. These extraordinary costs did not occur in 1988-89. Additionally, 1989-90 was the first year insurance charges ($7,978) were shown in each department, which also skewed the costs as compared to 1988-89. Adjusting 1989-90 for these costs would leave an increase from 1988-89 to 1989-90 of 6% overall. audit/budwkans