HomeMy WebLinkAboutAgenda Report - May 6, 2009 K-01AGENDA ITEM
&% CITY OF LODI
,. COUNCIL COMMUNICATION
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AGENDA TITLE: Provide Direction with Regard to Specific Elements o the 2009-1 Budget
Regarding Animal Shelter staffing via a PALS Contract, Fire Inspection Services,
and Conference and Visitors Bureau Funding Formula
MEETING DATE: May 6,2009
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Provide direction with regard to the following specific elements of the 2009-
10 budget:
1) Should Lodi entertain a contract with PALS to provide staff and volunteer coverage at the animal
shelter in exchange for animal license and related fees?
2) Should fire inspection services be combined with Community Development inspection services in
order to deliver more efficient public service and streamline costs?
3) Should the funding for the Conference and Visitors Bureau be adjusted to reflectthe increased
Flag City revenue?
BACKGROUND INFORMATION: In preparing the 2009-10 budget, staff has identified a number of
program issues that need direction from the Council prior to
completing budget preparation.
The first program issue involves providing staff coverage at the Animal Shelter. There is inadequate staff
to provide coverage during posted office hours at the animal shelter. The City Manager has looked
internally to find available resources to provide coverage. Fiscally, the City is constrained, as several
sworn Police Officer positions are currently vacant due to lack of funding. Consideration has been given
to re -assigning existing staff to cover the animal shelter office hours but not implemented due to the
negative effects of then leaving other departments short staffed. PALS is a non-profit group that
promotes animal adoptions, assists shelter staff with the care and grooming of animals, and assists with
shelter cleaning, among other functions. The City and PALS have entered into preliminary discussions to
provide staff for the animal shelter via a services contract. The basic business points of any resulting
contract would include ensuring that personnel are available during posted business hours and that
PALS begin billing for license renewal fees. It is expected that the costs of any resulting contract would
be funded by animal license and shelter fees. The benefits of a proposed contract include ensuring
adequate hours of operation, timely license renewal, increased adoptions, and better customer service.
Without this proposed contract, it is expected that the current level of inadequate coverage would remain
in place.
The second program issue involves placement of Fire Inspection Services within the City. Fire inspection
is currently handled by a Fire Inspector housed within the Fire Department, and all other city
development inspections are handled by the Community Development Department. The Fire Inspector
APPROVED:
Blair Kin ily Mesar
has accepted the two-year retirement enhancement and will be retiring soon. The Fire Inspector position,
or another position within the Fire Department, must remain vacant. The City Manager is proposing to
consolidate the Fire Inspection services with Building Inspection within the Community Development
Department. Consolidation of inspection services is expected to enhance customer service as the City
moves to more of a streamlined and less expensive "one-stop" inspection function. Additionally, without
this consolidation, it is expected that a Building Inspector II will be laid -off, then the City would hire a new
Fire Inspector. This consolidation will also provide service at a lower cost since a Fire Inspectorcosts the
City and development community approximately $125,000 annually (plus a Public Safety retirement)
whereas a Building Inspectorll costs about $89,000 with a miscellaneous retirement.
The third program issue involves funding for the Lodi Conference and Visitors Bureau (CVB). The CVB
is currently funded by a combination of funds generated from the Lodi Area Tourism Business
Improvement District (LTBID) and a contribution from the General Fund. To enhance the CVB funding,
the Flag City hotels were recently added to the LTBID assessment. The funding from these hotels
increases the CVB budget. The City desires to see the CVB prosper but feels it is appropriate to reduce
the General Fund contribution as the overall budget for the CVB grows. The City Manager is proposing
that the General Fund contribution be reduced by a ratio of the increase of revenue due to the addition of
Flag City motels.
FISCAL IMPACT: Unknown at this time
FUNDING AVAILABLE: Not Applicable
Jor n Ayers, Deputy City anager
:iltiro- i:f:T�.� • ��
• Extraordinary Financial Times
General Fund — almost 15% reduction within 24 months
Budget adopted twice in 2008/09
• November - $1.8 million revenue reduction
• Mid year - $1.4 million budget adjustments
• Unemployment numbers
Lodi — 12.5%
Stockton — 19.7%
California — 11.2%
• Sales tax decline — 16.8% quarterly, year over year
• Expenditures will exceed revenues in FY 2008/09
without reductions
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Unemployment rates, Jan. 2005 -March 2009
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GALS Contra
• Goal: Provide public service in a cost
effective manner
• Negotiating a contract with PALS to
operate the front office at the Animal
Shelter
• Basic Business Points
• Maintain posted business hours
• Mail license renewals
• Funded by animal license and shelter fees
GALS Gontrr*_,".
• Benefits
Ensures office is open during posted
business hours
Timely license renewals
Increased adoptions
Effective use of City Animal Shelter staff
Better customer service
• Propose to provide Fire Inspection services
with Community Development Building
Inspectors
• Consolidates customer inspections in one
department
• Streamlines services
• Improves efficiency
• Will save one position in Community Development
• Fire Inspector is retiring and position must be
left vacant
• Maximize existing position rather than
hiring a replacement position
• Cost savings (Fire Inspector $124,850
vs. Building Inspector II $88,500)
• Continue to show Fire Inspector in Fire
organization with no funding
.)nterence 2nd VISItnrS
• Currently funded by LTBID and General
Fund contribution
• Added Flag City hotels recently to LTBID
• City sees no TOT increase from this
addition
• Desire to balance General Fund support
for tourism promotion with other
economic development activities
3iirlop.t and Finance Ln
• PALS Contract
•Approved as presented 5-0 vote
• Fire Inspection Services
• Approved as presented 5-0 vote
• CVB Funding Formula
• Approved as presented 5-0 vote