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ALLOCATE CITY COUNCIL DISCRETIONARY FUNDING AND AMEND THE FISCAL YEAR 2018-19 ANNUAL BUDGET
recommended action
RECOMMENDATION
It is recommended that the City Council approve a resolution to:
1. Approve the review of the list of potential infrastructure projects including the review of the staff recommendation.
2. Amend the FY 2018-19 Annual Budget to appropriate and allocate the $450,000 of unrestricted discretionary funding.
3. Amend the FY 2018-19 Annual Budget to appropriate and allocate the $1,300,000 of restricted discretionary infrastructure funding.
4. Authorize any transfers of funding necessary to implement these allocations.
5. Refer a discussion of discretionary project funding to the Legislative and Environmental Committee to resolve potential issues with the timing of discretionary expenditures as well as how to allocate discretionary project funding.
It is also recommended that the City Manager be authorized to take all appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The FY 2018-19 Annual Budget adopted on June 5, 2018, included a discussion on $1,750,000 in discretionary funding to be allocated at a future date. Of this amount, $450,000 is unrestricted General Funds, and $1.3 million is General Capital Funds restricted to infrastructure related expenses.
Staff recommends that the $450,000 of unrestricted funding be allocated as follows:
1. Council/Mayor Projects ($60k Mayor, $15k/district) $150,000
2. License Plate Recognition program $85,000
3. Homeless Clean-ups $140,000
4. Sheriff Community Corp Contract $75,000
TOTAL $450,000
Staff recommends that the $1,300,000 of one-time infrastructure funding be allocated as follows:
1. Van Buskirk Floor Rehabilitation $147,000
2. Oak Park Ice Arena Upgrades $500,000
3. Stockton Ballpark Scoreboard Replacement $650,000
4. Weston Tennis Court to FUTSAL Conversion $3,000
TOTAL $1,300,000
Council is asked to review the list of potential projects, review the staff recommendation, and approve a resolution to allocate the available funding.
It is also advised that Council consider how discretionary funding is allocated for council district and citywide priorities. It is possible that existing elected officials could deplete or fully expend discretionary funds prior to installation of new officials in January in years where there are elections. Therefore, it is recommended that the Council refer a discussion of how to allocate discretionary project funding to the Legislative and Environmental Committee to determine the appropriate resolution to potential issues.
DISCUSSION
Background
At the budget study session on May 23, 2018, Council received information on $1,750,000 of discretionary one-time funds that are available from bond refunding. $450,000 of this amount is unrestricted, and can be used for any purpose. The balance of $1,300,000 is restricted to capital or infrastructure maintenance projects. Council requested that staff return with a list of programs and a list of priority capital projects for consideration. Council also directed that $147,000 of the $1,300,000 be set aside for Community Services infrastructure projects to provide the equivalent of a 2 percent increase in the General Fund appropriated for library and recreation services.
For the past few years, one-time funding was available for special projects and critical needs. Council discretionary funds have been allocated to provide funding for council districts and city-wide projects, homeless clean-ups, a Community Corp contract with the Sheriff’s Office, Housing Mitigation Fund Program, workforce development, and the Economic Development Lien Forgiveness program.
In FY 2017-18, $150,000 was allocated for Council based district projects, with $15,000 available to each Council Member for district priorities and $60,000 for city-wide use by the Mayor. As of mid-July, approximately $71,000 remained unspent from FY 2017-18 allocation. The resolution approved with the FY 2018-19 Annual Budget re-appropriated the FY 2017-18 balances to the new fiscal year.
Also in FY 2017-18, the City Council allocated $75,000 for the Sheriff Department Community Corp contract, $100,000 for homeless encampment clean-ups, $50,000 for the Housing Mitigation Fund Program, and $20,000 for the Economic Development Lien Forgiveness program. FY 2017-18 allocations for these allocations are fully expended or encumbered. The homeless encampment clean-up allocation resulted in the removal of nearly 1,200 tons of mixed debris during 20 clean up events. The Economic Development Department used the $20,000 to promote the Residential Neighborhood Reinvestment program and provided five reinvestment lien agreements.
Restricted infrastructure funding in FY 2017-18 was allocated as follows: $75,000 for design of the Weber Point fountain renovation project, $150,000 for construction of the Victory Park well replacement project, and $75,000 for miscellaneous park maintenance repairs. These projects are all completed or underway.
During the Council’s Budget Study Session on May 23, 2018, and again at the public hearing on June 5, 2018, Council members discussed and considered the varying needs of Stockton residents. The Council indicated a strong interest in continuing efforts for blight reduction, increasing efforts to address issues related to homelessness, economic development, public safety, and establishing discretionary funds to be available to each Councilmember and the Mayor for projects that are significant to the residents of Stockton.
Staff provided Council with some options to consider. These options are not intended to be a comprehensive list of needs. Council has the discretion to decide how these funds are allocated. Below are some options staff presented for Council to consider:
|
Programs in need of funding |
Amount |
|
Council district based projects |
$150,000 |
|
Youth Employment |
100,000 |
|
Homeless Encampment Cleanups |
140,000 |
|
Sheriff Clean-up Program |
75,000 |
|
Public Safety Radio Infrastructure |
5,000,000 |
|
Tree Stump - Eliminate Backlog |
525,000 |
|
Golf Course Equipment |
590,000 |
|
Smart City Planning |
50,000 |
|
|
$6,630,000 |
Council also considered other uses for the discretionary funds including the following items:
|
Programs in need of funding |
Amount |
|
Gunshot Detection Technology expansion |
$170,000 |
|
Pit Stop for Homeless (each) |
80,000 |
|
Soccer pitches (each) |
30,000 |
|
Utility customer assistance program |
TBD |
|
Office of Violence Prevention At-Risk Services |
TBD |
Council considerations for use of the one-time infrastructure funds included tennis court to FUTSAL (soccer pitches) conversions, a new Council Chambers at Waterfront Towers, and an enhanced traffic calming program. Council also considered and specified that a portion of the one-time infrastructure should be dedicated to library and recreation services because concerns were raised about the Community Services Department General Fund budget being held statutory maintenance-of-effort requirement. Consequently, $147,000 of the available $1,300,000 restricted to infrastructure is recommended for library and recreation projects.
Present Situation
Unrestricted Funds
Council is asked to adopt a resolution to appropriate and allocate the $450,000 of discretionary funds as an amendment to the adopted FY 2018-19 Annual Budget.
The Police Department assessed the suggestion to enhance the City’s gunshot detection technology program. The current cost to implement Shotspotter in a new two-mile area is approximately $170,000 for one year. The current pricing structure for new areas is $85,000 per square mile, and more expensive than the existing installation. Other gunshot detection systems are now available, and competitive procurement is recommended if Council elects to expand the system to ensure the best value for the City and comply with procurement requirements. It is likely the City would only benefit from the service for a small portion of this fiscal year. Once installed in the two-mile area identified by the Police Department, the service cannot be moved to another location without additional cost. No ongoing funding for the expansion of services has been identified, thus limiting the benefit of using one-time funds to expand the program.
The Police Department developed additional recommendations in support of the Council’s strategic target to reduce crime and increase public safety. Additional investment in the Automated License Plate Recognition Program is recommended as a valuable use of one-time dollars. Automated License Plate Reader (ALPR) and recognition systems are a tool used by many different agencies such as bridge toll authorities, rapid transit districts, law enforcement agencies, and State transportation departments. These systems can be affixed to traffic light stanchions and toll booths, or can be mobile and affixed to the top, side, front, or back of a vehicle. In law enforcement, ALPR systems are used for investigative purposes in two ways. One is to detect license plates in plain public view and compare them to the National Crime Information Center (NCIC)’s list of stolen, warranted, and wanted vehicles. The system will alert on any “hits” or matches found. The second way is for Detectives to enter a license plate of a vehicle of interest into the system and the ALPR will return the last location the vehicle was seen. Stockton currently has four marked patrol vehicles outfitted with this technology assigned to its proactive units. Since the technology was implemented, in July of 2017, over 30,000 inquiries related to criminal investigations have been made by Detectives and nearly 100 vehicles were found through use of the ALPR system. The Police Department recommends expansion of this program over expansion of gunshot detection technology, because the base data system is currently funded and one-time funds would outfit four additional patrol cars, thereby doubling the potential use. Another benefit is the mobility of ALPR allows for it to be used throughout the city rather than a static area.
Another public safety funding need identified after adoption of the FY 2018-19 Annual Budget is operating costs for a police helicopter. The State budget includes $3 million for the Stockton Police Department to purchase a helicopter and associated equipment. Annual operating costs for the helicopter are $1.2 million including $750,000 in personnel costs and $450,000 for fuel, maintenance and other materials. The Police Department will use existing staff to operate the helicopter and no additional funding is needed for the personnel costs. However, a source has not been identified for the $450,000 operating cost increase.
Staff recommends that the City Council allocate the $450,000 of unrestricted funds as follows:
1. Council/Mayor Projects ($60k Mayor, $15k/district) $150,000
2. License Plate Recognition program $85,000
3. Homeless Clean-ups $140,000
4. Sheriff Community Corp Contract $75,000
TOTAL $450,000
With the rollover of prior year funding for Council district projects, Council may want to change the amount allocated or consider revising the distribution of the project dollars. Council is asked to review the list of potential projects, review the staff recommendation, and approve a resolution to appropriate and allocate the available funding.
It is also recommended that Council consider how discretionary funding is allocated for council district and citywide priorities. Council Member and Mayor discretionary funds are allocated by fiscal year, rather than calendar year, and it is possible that existing elected officials could deplete more than half or fully expend discretionary funds prior to installation of new officials in January in years where there are elections. It is recommended that the Council refer a discussion of discretionary project funding to the Legislative and Environmental Committee to determine the appropriate resolution to potential issues. Options to be considered could include, but are not limited to: spending limits, timing restrictions or reserve of half of the discretionary funds when Council District offices or the Mayor’s Office are on the ballot.
Infrastructure Funds
Staff compiled a detailed list of projects (Attachment A). The sum of the projects greatly exceeds the available funding. Most of these projects are for park or building facilities, and are included in the adopted 2018-2023 Capital Improvement Plan, but unfunded due to the limited capital funding from the General Fund. Infrastructure projects for functional areas that have relatively robust funding sources, such as utilities, transportation or internal service funds, are not included. Because the identified need exceeds available resources, staff applied a series of criteria to prioritize projects, including:
• Is the project ready to deliver?
• Is the General Fund the only potential funding source for the project?
• Is there a financial risk or increased cost, other than deferred maintenance considerations, if the project is not undertaken?
• Is the project included in the CIP, or another adopted plan?
• Is the project already started?
Projects were ranked based on the number of positive responses to these criteria as shown on Attachment A.
Council previously considered and specified that a portion of the one-time infrastructure should be dedicated to library and recreation services. This guidance was provided because concerns were raised about the Community Services Department General Fund budget being held statutory maintenance-of-effort requirement. Consequently, $147,000 of the available $1,300,000 restricted to infrastructure is recommended for library and recreation projects. Council has full discretion to utilize these funds for other priorities. Community Services Department staff recommend that the $147,000 be allocated to the following project if it is used for library and recreation services:
• Van Buskirk Center Gym Floor Rehabilitation $147,000
This project will replace the Van Buskirk gym floor. This floor is water damaged and replacement is required to prevent closure of approximately half of the gym.
The balance of $1,153,000 is recommended for allocation to high priority projects based on the criteria noted above. It is important to note that projects are ranked by category, but not ranked within each category. In other words, all projects that scored a “4” on the attached lists are a higher priority than those that scored “3,” but the “4” projects are not listed in order within that category. The highest priority projects are:
• Oak Park Ice Arena Upgrades $500,000
This allocation will be in addition to $1,500,000 of other restricted funding sources that has been obtained and will complete funding for this project. The upgrade to the ice making system and Oak Park Ice Arena (OPIA) is necessary to ensure that an acceptable ice surface can be maintained in accordance with contractual obligations to the Stockton Heat. Failure of the system at OPIA will require the City to provide alternative practice ice at a nearby facility, such as private arenas in Roseville or Vacaville.
• Stockton Ballpark Scoreboard Replacement $650,000
Scoreboards at the Stockton Arena and the Stockton Ballpark are in need of replacement. Due to condition and scarcity of repair parts, the scoreboard at the Ballpark is considered to be the highest priority. Provision and maintenance of an acceptable scoreboard is part of the City’s overall contractual obligations to provide a facility for the Stockton Ports.
• Waterfront Towers $1,153,000
The City allocated funding to tenant improvements and other updating for the New City Hall at Waterfront Towers. The design is not completed, and this project would allocate all, or a portion of the one-time funds as contingency to the currently allocated funding.
• PD Main Basement/Locker Room Upgrade Phase 2 $1,153,000
The total cost of Phase 2 is $2,950,000. Phase 2 is currently unfunded. This project would allocate all or a portion of the one-time funds to partially fund Phase 2; however, work could not commence until the balance of the funding is identified.
Staff recommends that funding be allocated to projects 1, 2 and 3. Should Council not allocate funding to these projects, funding could be allocated to either of the other two high priority projects, or any of the projects detailed on Attachment A. Assuming funds are allocated to projects 1, 2 and 3, the next highest priority project that could be afforded is the Weston Tennis Court to FUTSAL Conversion for $3,000 (conversion of an existing tennis court to an enclosed soccer pitch - inexpensive in the case of Weston Ranch as only restriping of the court markings is required).
Staff recommends that the $1,300,000 of one-time infrastructure funding be allocated as follows:
1. Van Buskirk Floor Rehabilitation $147,000
2. Oak Park Ice Arena Upgrades $500,000
3. Stockton Ballpark Scoreboard Replacement $650,000
4. Weston Tennis Court to FUTSAL Conversion $3,000
TOTAL $1,300,000
Council is asked to review the list of potential infrastructure projects, review the staff recommendation, and approve a resolution to allocate the available funding.
FINANCIAL SUMMARY
Allocation of the $1,750,000 of discretionary funds is consistent with the City’s Long- Range Financial Plan. The discretionary funds were not appropriated in the FY 2018-19 Annual Budget adopted on June 5, 2018. Once Council allocates the funds, any necessary transfers and appropriations will be made to implement the allocation.
Attachment A - Infrastructure Projects for Funding Consideration