FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: Administration – HR – GL Acct: 01.220240.52828.0000.000 REQUEST TITLE: Additional Legal Work Related to Labor Negotiations Request Summary
With the labor contracts expiring in June, 2023, an additional allocation towards the legal cost will be required to successfully renegotiate and close all labor agreements.
Impact of Change
Strategic workforce planning is the essential link between municipal services that the City desires to deliver to its citizens, with the City’s human capital. The City’s labor agreements are expiring on June 30, 2023.
Given the complexity and the large number of bargaining groups, the new round of labor negotiations will have to start no later than January, 2023 to meet and confer in good faith to reach new agreements regarding wages, hours and other terms and conditions of employment by July 1, 2023.
Alternatives
There is no reasonable alternative to this request. The new labor agreements will have to be negotiated and the professional legal help will be needed. The Council may consider using specialized services for labor negotiations rather than the City’s legal team which could be slightly less expensive.
Cost Summary
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Labor Negotiation 01 220240 52828 100,000
Total Operating Costs 100,000
Offsetting Cost Savings or Revenues
Net Operating Costs 100,000
Priority Tracking Council Strategic Goal
Department Priority 2 Fiscal Sustainability ☒
City Manager Priority A An Engaged Community ☐
Stewardship of City Infrastructure ☐
Healthy & Compassionate Community ☐
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☒
☐ On-going (Annual) ☒ One-time
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: Administration – HR – GL Acct: 01.240220.52800.0000.000 REQUEST TITLE: Safety Contractual Services to ensure OSHA Compliance (Du-All Safety) Request Summary
We are proposing to add professional safety services to the City of Pacifica team. Services include: safety inspections, chemical safety, written OSHA program assessments/development, hands-on OSHA training, online safety training, online safety consulting and webinars, environmental health permits, hazardous waste training & OSHA certification, hazardous materials business plans, etc.
We are requesting additional consulting support for the FY2022-23.
Adding these professional services will eliminate the cost of benefit and can be project specific. They will provide safety training to all Department through the coordination of the HR Department.
Alternatives
Alternatives to this request include not funding, or funding below the proposed amount.
Cost Summary
The cost for labor negotiations last year was approximately $30,000.
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Safety Consulting 01 240220 52800 30,000
Total Operating Costs 30,000
Offsetting Cost Savings or Revenues
Net Operating Costs 30,000
Priority Tracking Council Strategic Goal
Department Priority 3 Fiscal Sustainability ☒
City Manager Priority A An Engaged Community ☒
Stewardship of City Infrastructure ☒
Healthy & Compassionate Community ☒
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☒
☒ On-going (Annual) ☐ One-time
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: Administration - City Clerk – GL Acct: 01.200210.52331.0000.000 REQUEST TITLE: General Municipal Election Expenses projected for November 2022 Election Request Summary
November 2022 represents a regular general municipal election cycle for the City of Pacifica. There will be three City Council district seats up for election and the City is planning to place two measures on the ballot for the November 2022 regular general municipal election. Based on estimated election costs received from the San Mateo County Elections Division, an estimate total expenditure of $160,000 is projected for the City’s expenses related to the November 2022 election. The FY 2021-22 base budget included $70,000 for elections expenses related to the redistricting process based on the 2020 U.S.
Census data. The additional expenses necessary for the FY22-23 budget above last year’s election budget will be $90,000. While the City has some discretion on placing city-initiated measures on the ballot, the election for City Council seats is a mandated cost that must be borne in the regular even-year election cycles.
Factors Driving the Request for Change
Regular City Council municipal election cycle.
Placement of a proposed revenue measure on the ballot for Fiscal Sustainability of the City to address projected structural budget deficit.
Placement of a proposed advisory measure on the ballot to gauge citizen interest in amendments related to prohibition of safe and sane fireworks.
Alternatives
Alternative options include City Council direction to not place city-initiated measures on the ballot for the November 2022 election. This would require a deviation from previous direction received from City Council. There is no alternative to the regular election for City Council district seats, as that is a mandated action.
Cost Summary
Total estimated expense = $160,000
Estimated additional expense above the FY21-22 base budget = $90,000 Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Election Expense 01 200210 52331 90,000
Total Operating Costs 90,000
Offsetting Cost Savings or Revenues
Net Operating Costs 90,000
Priority Tracking Council Strategic Goal
Department Priority 1 Fiscal Sustainability ☒
City Manager Priority A An Engaged Community ☒
Stewardship of City Infrastructure ☒
Healthy & Compassionate Community ☐
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☒
☐ On-going (Annual) ☒ One-time
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: Fire – GL Acct: 01.600630.52800.0000.000
REQUEST TITLE: New Fire Station Alerting System Implementation Request Summary
Because the current station alerting system is old, outdated and parts have become unavailable, we are putting in service a new Fire Station Alerting System this year and there are costs for monitoring, servicing, licensing, and support along with the ATT fiber optic lines to make it operational. This new system will cost $28,000 per year and will improve response times and increase firefighter health benefits through effortless programmable alerting options and will last several years Factors Driving the Request for Change
The system is in its final stages of implementation and should be ready for operation in the next couple of months. If approved, the City would have a state of the art Fire Station Alerting System that is a more compliant industry standard alerting system. The impact of this change will be measured by seeing increased dispatch and response times.
Alternatives
There are no safe or viable alternatives since the system is replacing the old legacy system that is outdated and unable to find replacement parts for.
Cost Summary
The cost could go up with vendor initiated increases in the coming years. Compared to current costs, it is a larger cost but appropriate for the type of system.
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
CONTRACTUAL SERVICES 01 600630 52800 28,000
Total Operating Costs 28,000
Offsetting Cost Savings or Revenues
Net Operating Costs 28,000
Priority Tracking Council Strategic Goal
Department Priority 1 Fiscal Sustainability ☐
City Manager Priority A An Engaged Community ☐
Stewardship of City Infrastructure ☒
Healthy & Compassionate Community ☐
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☐
☒ On-going (Annual) ☐ One-time
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: Planning – GL Acct: 01.660711.52828.0000.000
REQUEST TITLE: Housing Element Update
Request Summary
Hire a consultant to assist staff with community engagement and technical work to update the City’s Housing Element of the General Plan for the planning period 2023-2031.
Factors Driving the Request for Change
State law requires the City to update its Housing Element every eight years. The current Housing Element covers the period through January 2023. The City must adopt a Housing Element update by January 2023 in order to comply with state law.
Alternatives
There is no viable alternative. Failure to update the Housing Element as required by state law may subject the City to litigation risk and loss of eligibility for certain grant funding.
Cost Summary
This is a new activity that was not in prior year’s budget.
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Consultant Expense 01 660711 52800 83,449
City Attorney Expense 01 660711 52828 20,000
Total Operating Costs 103,449
Offsetting Cost Savings or Revenues LEAP Grant (33,449) REAP Grant (50,000)
Net Operating Costs 20,000
Priority Tracking Council Strategic Goal
Department Priority 1 Fiscal Sustainability ☒
City Manager Priority A An Engaged Community ☒
Stewardship of City Infrastructure ☒
Healthy & Compassionate Community ☒
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☒
☐ On-going (Annual) ☒ One-time
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: Planning – GL Acct: 01.660711.52800.0000.000
REQUEST TITLE: ADA Transition Plan Update
Request Summary
Hire a consultant to update the City’s ADA Transition Plan including a physical assessment of City facilities. This is a legal requirement for the City and an important risk management process to reduce liability for ADA access lawsuits.
Factors Driving the Request for Change (section to be completed for additions only) The City has experienced multiple ADA access lawsuits. An updated ADA Transition Plan will identify City facilities requiring ADA access upgrades and enable continuation of the capital program to upgrade those facilities. An updated ADA Transition Plan will allow the City to focus programmatically on priority ADA access upgrades to improve access and reduce liability.
Alternatives
Continue with the City’s current ADA Transition Plan which will limit the City’s ability to make targeted ADA access investments.
Cost Summary
Transition Plan Update will reduce the City’s ADA liability to some degree.
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Consultant Expense 01 660711 52800 150,000
City Attorney Expense 01 660711 52828 10,000
Total Operating Costs 160,000
Offsetting Cost Savings or Revenues
Net Operating Costs 160,000
Priority Tracking Council Strategic Goal
Department Priority 3 Fiscal Sustainability ☒
City Manager Priority A An Engaged Community ☐
Stewardship of City Infrastructure ☒
Healthy & Compassionate Community ☒
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☒
☐ On-going (Annual) ☒ One-time
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: GL Code – Admin – CM Office
REQUEST TITLE: City Manager’s Office Reorganization
Request Summary
With the recent departure of the Assistant City Manager/Planning Director, the ongoing vacancy of the Executive Assistant/Deputy City Clerk (currently back-filled with temporary assistance), and the increasing demands on the City Clerk and Records function in the City Manager’s Office, the City Manager has evaluated potential reorganization changes and will continue developing specific recommendations and budget impacts related to this reorganization that will be coming forward to Council once fully developed.
Impact of Change
This request will result in a new organizational structure in Administration, Economic Development, and Planning departments to ensure efficient and functional delivery of these services. This action will position the City Manager’s Office and Planning Department to meet the increased demands internally and externally, maximize effectiveness, enhance service outcomes and promote transparency.
Administration
This action will include replacing the existing Executive Assistant/Deputy City Clerk combined position with two separate full-time positions (Executive Assistant and Deputy City Clerk). The City conducted several unsuccessful recruitments to fill the Executive Assistant/Deputy City Clerk position. This process revealed the need to divide this position into two due to the distinct nature of the job and skillset. In addition to handling day-to-day administrative matters, the Executive Assistant position will also be tasked with communication, complex reporting, and risk management duties. At the same time, the Deputy City Clerk will provide critical backup to the City Clerk function, records management, public record requests, and various Council liaison services, which becomes especially critical during an election year.
Planning and Economic Development
After the Assistant City Manager/Planning Director position became vacant, City Manager re-evaluated options for the reorganization and reassignment of duties. This action includes restoring the Planning Director position with a prime focus on leading the Planning Department's strategic goals and priorities.
The Assistant City Manager's duties will be restructured to focus on finance and administrative services, as well as oversight of the economic development function. This action will require the restoration of the Economic Development Manager position to assume the day-to-day operations for the Economic Development program and provide assistance in the future execution of recommendations from the Economic Opportunities Study that is currently being conducted as part of the Vision 2025 & Beyond Strategic Financial Sustainability Study.
These additional positions are being requested as part of the position control for the FY 2022-23 Budget.
In addition, the City Manager is currently working on identifying other program options and potential savings to partially offset the increased cost of changes in these departments.
Priority Tracking Council Strategic Goal
Department Priority 1 Fiscal Sustainability ☒
City Manager Priority B An Engaged Community ☒
Stewardship of City Infrastructure ☐
Healthy & Compassionate Community ☐
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☒
☒ On-going (Annual) ☐ One-time
FY 2022-23 Base Budget Expense Amendment Page 2 of 2
Although, these program options are not fully developed yet, the estimated program savings are included in the Recommended Budget. Staff will bring any necessary changes forward for Council approval in the upcoming weeks and will revisit the Program savings estimates at Mid-year Budget review if needed.
Alternatives
Make no action on this budget request or act on any portion of this request as listed in the table below.
Cost Summary
Staffing for new positions is costed upon the top step, fully burdened annual cost at monthly salary rates set as an average for the City’s pre-negotiated list of comparison agencies. Based on the City’s current practices, most appointments are made at the mid-range salary scale, and the actual annual cost is likely to be lower in the first few years of the position being filled.
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Add of Executive Assistant Position 01 149,580
Add of Deputy City Clerk Position 01 150,954
Restore Planning Director Position 01 269,187
Restore Econ. Development Mgr Position 01 199,854
Total Operating Costs 769,575
Offsetting Cost Savings or Revenues
Elim. Vacant Exec. Assistant/Deputy City Clerk Position -147,675 Other Proj. Program Savings in Planning and Admin Departments -461,000 Net Operating Costs 160,900
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: Administration – HR – GL Acct: 01.240220.51200.0000.000 REQUEST TITLE: Executive Recruitment Contractual Services Request Summary
We are proposing to add professional Recruiter Firm services to the City of Pacifica team. We will be needing to utilize contractual services for an executive recruiting firm to fill executive searches when the opening presents itself. In addition, the City may need to outsource some of the recruitment workload due to not having enough capacity in the HR division. The HR team has several projects that will require attention such as ERP implementation, labor negotiations, various policies and procedures, open enrollment benefit for 2023, wellness program in addition to the day-to-day operations.
Cost Summary
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Professional Executive Recruiting Firm 01 240220 51200 100,000 Total Operating Costs 100,000
Offsetting Cost Savings or Revenues
Net Operating Costs 100,000
Priority Tracking Council Strategic Goal
Department Priority 3 Fiscal Sustainability ☒
City Manager Priority B An Engaged Community ☒
Stewardship of City Infrastructure ☒
Healthy & Compassionate Community ☒
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☒
☒ On-going (Annual) ☐ One-time
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM:
REQUEST TITLE:
PB&R – GL Acct: 01.800900 – across various accounts – 800910, 800911, 800912, 800913, 800914, 800937
Child Care Staffing Adjustments and Reorganization
Request Summary
Child Care Teachers: Adding three full-time child care teachers (previously approved by Council, but put on hold due to pandemic impacts) beginning FY 22-23 will strengthen and support staffing levels as well as allow the enrollment of more children from the current waiting list. The estimated cost of $289,440 would be offset by program revenues of the allowable increased enrollment.
Child Care Assistant Supervisor to Child Care Supervisor: Currently, the City's child care program has only one Supervisor position, which is focused on the administrative side of the program. Given the increasing complexity of child care, including the recent and proposed staff expansion, the program warrants an equivalent supervisor position focused on the operational side of the program. This is proposed to begin in FY 22-23 with an estimated cost of $13,980 and would be offset by revenues of the allowable increased enrollment.
Site Coordinator to Senior Child Care Coordinator: The Site Coordinator series warrants a higher-level classification that adds supportive administrative, project management, and leadership responsibilities to the series and creates development opportunities within the series and succession planning related to the Child Care Supervisor role. It will also provide support to operations in light of the recent and proposed staff expansions. This is proposed to begin in FY 22-23 with an estimated cost of $5,609 and would be offset by revenues of the allowable increased enrollment.
Factors Driving the Request for Change (section to be completed for additions only) For several years prior to the pandemic, it has been quite difficult to recruit, hire and retain the part-time staff needed to satisfy program operational needs and to maintain required ratios. This has forced the hiring of staff members through temporary agencies in order to meet compliance standards. These challenges have continued post-pandemic. In order to address this problem, City Council previously approved the addition of several child care teacher positions, the hiring for which was put on hold due to pandemic impacts on the child care program. The program is now ramping back up to allow more children into the program off the waiting this. This requires hiring these additional teachers, which are projected to be budget neutral due to increased child care revenues for being able to enroll more children. In addition, in order to support the increase in staff and enrollment there is a need for reorganization of the administration in order to strengthen program operations and staffing.
These changes will facilitate, at minimum, the enrollment of at least 70 children from the waiting list, supporting local families in need of our services.
The alternative would not allow for expansion of the program and the subsequent revenue that would come with it. There would be more children on the waiting list for longer periods of time for families in need of child care and loss of opportunity for organizational efficiencies and succession planning.
Priority Tracking Council Strategic Goal
Department Priority 1 Fiscal Sustainability ☒
City Manager Priority B An Engaged Community ☐
Stewardship of City Infrastructure ☐
Healthy & Compassionate Community ☒
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☒
☒ On-going (Annual) ☐ One-time
FY 2022-23 Base Budget Expense Amendment Page 2 of 2
Cost Summary
The total cost is $309,029 annually. It is a significant increase. There are offsetting revenues. Revenue is conservatively estimated as a minimum increase of 70 children. Staff anticipates we will likely be able to enroll more children.
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
3 full time Child Care Lead Teachers
Teacher 1 - 70% 0910, 30% 0912 01 varies 51200 96,480
Teacher 2 - 70% 0910, 30% 0912 01 varies 51200 96,480
Teacher 3 - 60% 0911, 40% 0914 01 varies 51200 96,480
Increase/Reclass CC Ass. Sup. To Supervisor 01 varies 51200 13,980 Increase/Reclass CC Coord. To CC Ass. Sup 01 varies 51200 5,609 Total Operating Costs 309,029
Offsetting Cost Savings or Revenues
Child Care - CC-Non-Contract Fees 01 48638 (342,689)
Net Operating Costs (33,660)
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: PB&R – GL Acct: 01.800 – spread throughout Recreation Accounts 800800, 8008105, 800810, 800820, 800850, 800860, 800869, 800870 REQUEST TITLE: Recreation Coordinator to Recreation Supervisor Request Summary
Recreation Coordinator to Recreation Supervisor: Beginning in FY 22-23, reclassifying this position will strengthen the management of the department/division while promoting succession and retention at a cost of $21,410. While there are no direct offsetting revenues, it is expected that this move will increase efficiencies which will assist in program revenue generation.
Factors Driving the Request for Change
With the promotion of our former Recreation Assistant Supervisor to the Senior Services Supervisor position, the recreation division is in need of senior level position. In order to support the business needs of the department and division as well as to promote retention and provide an opportunity for succession planning, the reclassifying/promoting of a Recreation Coordinator to a Supervisor will fit more appropriately to the job duties and hierarchy of the department.
Alternatives
The alternative would not support the business needs of the department/division or needed retention and succession planning.
Cost Summary
The total cost is $21,410. Compared to current costs, it is a slight increase in budget. There are no direct offsetting revenues, however, the department will be making significant revenue increases over the projected base budget.
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Increase/Reclass Rec Coord. To Supervisor 01 varies 51200 21,410 Total Operating Costs 21,410
Offsetting Cost Savings or Revenues
Rec revenue increase from base 01 varies (21,410)
Net Operating Costs -
Priority Tracking Council Strategic Goal
Department Priority 2 Fiscal Sustainability ☒
City Manager Priority B An Engaged Community ☐
Stewardship of City Infrastructure ☐
Healthy & Compassionate Community ☒
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☒
☒ On-going (Annual) ☐ One-time
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: Public Works- Engineering – GL Acct: Salaries – Regular and Benefits REQUEST TITLE: Reclassify Associate Civic Engineer to Project Manager Request Summary
Coastal engineering expertise, grant procurement expertise, Capital Improvement Program development and management, and complex project management such as for the Beach Boulevard Infrastructure Resiliency Project (BBIRP) warrant this reclassification from Associate Engineer to a Project Manager classification.
The Project Manager’s highest annual salary range for FY 22-23 is $134,226 + $76,013 for benefits and retirement. The Associate Civil Engineer highest annual salary range for FY 22-23 is $125,543 + $72,649 for benefits and retirement. Based on this, an additional $12,046 will be needed for the reclassification to cover salary and benefits.
Factors Driving the Request for Change
The City’s coastal CIP projects will continue forward without delay by allowing for a higher level of engineering expertise to be focused on the projects. This would allow the City to achieve milestones related to the Council priority in moving forward the BBIRP.
Alternatives
No alternatives exist.
Cost Summary
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Salaries - Regular 01 700723 51200.0000.000 8,682
Benefits 01 700723 51600.0000.000 3,364
Total Operating Costs 12,046
Offsetting Cost Savings or Revenues
Net Operating Costs 12,046
Priority Tracking Council Strategic Goal
Department Priority 1 Fiscal Sustainability ☐
City Manager Priority B An Engaged Community ☐
Stewardship of City Infrastructure ☒
Healthy & Compassionate Community ☐
Council Accepted Environmental Sustainability ☒
Council Rejected Strong City Workforce ☐
☒ On-going (Annual) ☐ One-time
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: Public Works - Parks – GL Acct: Salaries-Regular and Benefits REQUEST TITLE: Reclassify Ranger to Lead Ranger
Request Summary
The Ranger classification, of which the City has three rangers, requires one position to lead the group and create development opportunities within the series. The Ranger team is critical to the City's responsibilities for the beach, parking lot, and coastal trail maintenance and enforcement efforts.
The Ranger’s highest annual salary range for FY 22-23 is $77,721 + $59,208 for benefits and retirement. The proposed Lead Ranger’s highest annual salary range for FY 22-23 is $81,596 + $61,026 for benefits and retirement. Based on this, an additional $5,693 will be needed for the reclassification to cover salary and benefits. Staff requests that the Finance Department confirm the actual costs of the salary and benefits.
Factors Driving the Request for Change
There is a high attrition rate from the Ranger program because there is no position that leads the group and provides direction. This change would lead to less turnover in the Ranger classification.
Alternatives
There is no alternative to this request.
Cost Summary
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Salaries - Regular 01 700780 51200.0000.000 3,875
Benefits 01 700780 51600.0000.000 1,818
Total Operating Costs 5,693
Offsetting Cost Savings or Revenues
Net Operating Costs 5,693
Priority Tracking Council Strategic Goal
Department Priority 1 Fiscal Sustainability ☐
City Manager Priority B An Engaged Community ☐
Stewardship of City Infrastructure ☒
Healthy & Compassionate Community ☐
Council Accepted Environmental Sustainability ☒
Council Rejected Strong City Workforce ☐
☒ On-going (Annual) ☐ One-time
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: General Ledger AccountREQUEST TITLE: Unfunded Pension Liability Funding Policy (85% funded status in 20 years) Request Summary
The proposed program establishes a pension funding policy with a discretionary reserve roughly equivalent to 1.5% of the City’s $255 million accrued pension liability or ($4 million) to mitigate adverse market volatility, preserve budget flexibility and ultimately, long-term sustainability. While this proposal would reduce available resources to fund other programs in the short-run, it is not an expenditure, but rather a savings program that will generate investment income and reduce the City’s exposure to market volatility associated with its pension obligation for decades to come. A reserve of this magnitude, while discretionary, would require annual contributions of approximately $167,500 to fully fund such a reserve in 20 years or $235 thousand in 15 years.
Background and Discussion
Assuming CalPERS can attain a long-term average investment rate of return of 6.8% to offset pension costs, the City’s accrued pension liability is approximately $255 million and has an estimated $200 million in the CalPERS investment portfolio.
The City is responsible for making up its $55 unfunded accrued liability (UAL) which is recovered as one component of the City’s annually required pension contribution.
This delicate pension balancing act is extremely sensitive to investment earnings/losses to offset the cost/affordability of the pension benefit.
The City’s $200 million in assets, already with CalPERS, is subject to significant annual volatility (+/- 12% from the average expected investment return of 6.8%).
The last two decades have shown us that investment volatility can significantly exacerbate the City’s obligation very quickly eroding the City’s ability to fund other programs.
By exercising a disciplined approach to annually fund the City’s §115 pension trust “Rainy Day Fund,” the City can protect other community programs from getting squeezed out due to pension asset volatility.
When fully funded, a reserve target of 1.5% of the City’s Accrued liability would provide the City roughly 85% probability (Confidence Level) that the reserve would be sufficient provide 3 years of annual UAL payment protection and 5 planning years to prepare for a 10.5% investment loss which would result in an experience loss of 17.3% from the assumed investment return of 6.8%.
Alternatively, the Council endeavor to establish a reserve target of closer to 2% of the accrued liability or approximately $5 million based on the Pacifica’s current accrued liability. This reserve would increase the probability to 90% that such a reserve would be sufficient to fund three years of UAL payments ( e.g. an investment loss of -12.9%). Such a reserve could be funded over 20 years with contribution of approximately $206,500 per year.
Priority Tracking Council Strategic Goal
Department Priority 2 Fiscal Sustainability ☒
City Manager Priority C An Engaged Community ☐
Stewardship of City Infrastructure ☐
Healthy & Compassionate Community ☐
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☐
☒ On-going (Annual) ☐ One-time
FY 2020-22 Base Budget Expense Amendment Page 2 of 2
Alternatives
Alternatives to this request include not adopting the policy, modifying the policy, not funding, or funding above or below the proposed amount.
Cost Summary
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Funding the 115 Trust 167,500
Total Operating Costs 167,500
Offsetting Cost Savings or Revenues
Net Operating Costs 167,500
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: Administration - City Clerk – GL Acct: 01.200210.52300.0000.000 REQUEST TITLE: Additional Budget for Citywide Records Management/Scanning Services Request Summary
Expense related to continuing effort aligning with citywide document scanning / digitization project to budget $20,000 in City Clerk's and $15,000 in Finance Department budget for FY 2022-23 to scan hard copy records and import into the Laserfiche system with OCR, search and meta-data enabled capability for ease of records retention and access and to reduce paper / hard copy record dependencies. This effort enables the City to be more responsive to document requests from internal staff and from members of the public.
Factors Driving the Request for Change
Modernization of records, more efficient record access and retrieval, aligns with space planning for renovated civic center facilities to reduce storage space for hard copy records, enables better and more efficient compliance with the City’s records retention policy and schedules.
Alternatives
The alternative option is to reduce or not approve the requested budget expenditure for this purpose, which would result in continued reliance on hard copy records and additional expense for off-site storage and on-demand retrieval requests.
Cost Summary
An additional $35,000 is requested to continue document digitization efforts for the Citywide records. A similar amount that was budgeted in the FY 21-22 for City Manager’s Office for document digitization / scanning.
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Departmental Expense - City Manager 01 200210 52300 35,000 Total Operating Costs 35,000
Offsetting Cost Savings or Revenues
Net Operating Costs 35,000
Priority Tracking Council Strategic Goal
Department Priority 4 Fiscal Sustainability ☐
City Manager Priority C An Engaged Community ☒
Stewardship of City Infrastructure ☐
Healthy & Compassionate Community ☐
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☐
☒ On-going (Annual) ☐ One-time
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM:
REQUEST TITLE:
Administration – IT – GL Acct: Salaries – Part-Time (01.300345.51300.0000.000) Add additional part-time IST support assistance
Request Summary
An additional PT IST Support Assistant (20 hours a week, no benefits) is being proposed that will primarily be responsible for supporting the Police Department, which currently accounts for over 1/3 of all IST helpdesk tickets. This position will help alleviate the day-to-day entry-level workload and tasks, so that the two IST analysts can be focus on higher-level projects. This position’s hourly range will be updated from $20-$25/hr to $25-$30/hr to stay competitive and would cost $35,000 to be added to the part-time salary budget for a total of $60,000.
Factors Driving the Request for Change
The IST division currently supports 173 benefited FTEs, 63 Commission/Committee members, and 5 Council members. IST will soon be providing account support for an additional 74 PT employees. This is a total of 315 persons with technology needs. The City’s technology needs have grown over the past 20 years, with increased non-IT department staffing, projects, requests, and cybersecurity responsibilities, while IT staffing has not grown significantly in the same period.
Current IT staff have an average of 80 combined tickets open at any given time and frequently get tied up in desktop level support calls, and projects have been delayed and impacted as a result. To meet these demands and provide improved service, an additional part-time IST Support Assistant is being proposed to help alleviate the IST division’s workload. This impact can be measured in the completion of several backlogged and current projects (new phone system, IST Strategic Plan, ESRI GIS, and wifiimprovements), improved service delivery and response times, lower average open tickets, and the ability to offer a helpdesk phone number that can be properly staffed with enough resources.
Alternatives
An analysis of several options was conducted. Staffing agencies Robert Half and Stepford were contacted for pricing.
Option 1: Full-time IST Technician: $80,000-$100,000 salary range ($120,000 a year total including benefits and pension obligations). These figures are based on averages from equivalent positions of nearby comparative agencies per City of Pacifica’s MOUs.
Option 2: Staffing firm for a technician (Robert Half), all-inclusive rate range of $55-$66/hour ($55,000 to $66,000 for 1,000 hours a year) equivalent to a part-time employee.
Option 3: Contract with a firm like Stepford who provides IT services to other agencies (Colma, Half Moon Bay, Scotts Valley, Woodside Fire). Proposal includes 12 hours/week for 50 weeks, equal to 600 hours a year at a cost of $7,500 a month, or $90,000. Hourly rate of non-contract is $220/hour and $375/hour for overtime after-hours.
Priority Tracking Council Strategic Goal
Department Priority 1 Fiscal Sustainability ☐
City Manager Priority C An Engaged Community ☐
Stewardship of City Infrastructure ☐
Healthy & Compassionate Community ☐
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☒
☒ On-going (Annual) ☐ One-time
FY 2020-22 Base Budget Expense Amendment Page 2 of 2
The IST Division recommends approving this change (+$35,000) as it is the most economical option and provides the IST manager more flexibility and oversight versus the alternatives. This additional resource will be highly beneficial for the City at a very reasonable cost.
Cost Summary
An additional $35,000 is requested. Compared to the current budget, it is an increase from $25,000 to $60,000.
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Annualy Salary - PT IST Assistant 01 300345 51300.0000 35,000 Total Operating Costs 35,000
Offsetting Cost Savings or Revenues
Net Operating Costs 35,000
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: Fire – GL Acct: 01.600630.52514.0000.000
REQUEST TITLE: Simple Request Title— BLDG REPAIR AND MAINTENANCE increase Request Summary
The funding for this account needs to be increased to 2020-2021 allocated budget numbers due to the aging Fire Stations. By bringing that funding back a portion of the $67,000 cut in the current year's budget. The additional $30,000 will be added to the current funding and used to maintain and repair the facilities due to unknown damages (roof leaks, window leaks, plumbing issues, etc.) that could occur throughout the year and since the building is a working Fire Station, employees need to be protected from unsafe building conditions.
Factors Driving the Request for Change
The Fire Stations are very old and as they age even more, they need more repairs and more maintenance. Repairs and maintenance to the Fire Stations would add useful life to the buildings.
The Fire Stations would have regular maintenance, and when needed, timely repairs. The on-going maintenance and needed repairing of the Fire Station could possibly prevent larger, more costly repairs from occurring.
Alternatives
There are no other alternatives
Cost Summary
As the Fire Stations get older, the funding must remain the same to address future repairs and on-going maintenance needs. Currently, there is not enough funding to do the needed maintenance and repairs n
Line Item Description
eeded.
Fund Org Number Object Code Total Amount
Operating Expense
BLDG REPAIRS AND MAINTENANCE 01 600630 52514 30,000
Total Operating Costs 30,000
Offsetting Cost Savings or Revenues
Net Operating Costs 30,000
Priority Tracking Council Strategic Goal
Department Priority 2 Fiscal Sustainability ☐
City Manager Priority C An Engaged Community ☐
Stewardship of City Infrastructure ☒
Healthy & Compassionate Community ☐
Council Accepted Environmental Sustainability ☐
Council Rejected Strong City Workforce ☐
☒ On-going (Annual) ☐ One-time
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: Planning – GL Acct: 01.660711.52800.0000.000
REQUEST TITLE: Comprehensive Zoning Ordinance Update
Request Summary
Hire a consultant to undertake a comprehensive zoning ordinance (CZO) update. The CZO update is necessary to implement the General Plan and Sharp Park Specific Plan, which indicates a number of new land use designations and other policies that must be implemented through new/amended zoning provisions.
Factors Driving the Request for Change
Adoption of the General Plan update and Sharp Park specific plan require a CZO update.
Alternatives
Failure to adopt a CZO update could result in lawsuits for zoning that is inconsistent with the City’s adopted General Plan, and could result in developments complying only with General Plan standards where there is a conflict between GP and zoning provisions.
Cost Summary
This is a new activity that was not in prior year’s budget.
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Consultant Expense (Year 1) 01 660711 52800 125,000
City Attorney Expense (Year 1) 01 15,000
Consultant Expense (Year 2) 01 Same
City Attorney Expense (Year 2) 01 Same
Total Operating Costs 140,000
Offsetting Cost Savings or Revenues LEAP GRANT (100,000) Rec'd in Year 1
Net Operating Costs 40,000
Priority Tracking Council Strategic Goal
Department Priority 2 Fiscal Sustainability ☒
City Manager Priority C An Engaged Community ☒
Stewardship of City Infrastructure ☒
Healthy & Compassionate Community ☒
Council Accepted Environmental Sustainability ☒
Council Rejected Strong City Workforce ☐
☐ On-going (Annual) ☒ One-time
FY 2022-23 BASE BUDGET
EXPENSE AMENDMENT – PROGRAM CHANGE FORM
PROGRAM: Planning - GL Acct: 01.660711.52800.0000.000
REQUEST TITLE: Rockaway Beach Specific Plan Update
Request Summary
Hire a consultant to facilitate community engagement and comprehensive update to the Rockaway Beach Specific Plan in conjunction with the City Council priority work item to create a new Quarry Specific Plan.
Factors Driving the Request for Change
The City Council has identified creation of a new Quarry Specific Plan as a Council Priority Item. The integral nature of the Rockaway Beach commercial district with the Quarry creates a logical connection necessitating an update to the decades-old Rockaway Beach Specific Plan to ensure optimal planning outcomes such as economic development and resource protection.
Alternative
Not updating the Rockaway Beach Specific Plan could result in suboptimal outcomes from a new Quarry Specific Plan only. This scenario would undermine the potential positive impacts from a new Quarry Specific Plan.
Cost Summary
This is a new activity that was not in prior year’s budget.
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Consultant Expense (Year 1) 01 660711 52800 25,000
City Attorney Expense (Year 1) 01 15,000
Consultant Expense (Year 2) 01 $50,000 in Yr. 2
City Attorney Expense (Year 2) 01 $12,500 in Yr. 2
Total Operating Costs 40,000
Offsetting Cost Savings or Revenues
Net Operating Costs 40,000
Priority Tracking Council Strategic Goal
Department Priority 5 Fiscal Sustainability ☒
City Manager Priority C An Engaged Community ☒
Stewardship of City Infrastructure ☐
Healthy & Compassionate Community ☒
Council Accepted Environmental Sustainability ☒
Council Rejected Strong City Workforce ☐
☐ On-going (Annual) ☒ One-time