FY2013 November Retreat

8/3/2019 FY2013 November Retreat

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CRACKS IN THE HULL

FY2013 November Retreat


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Transition

Economic Forecast = Steady/Flat Flat = Unsustainable Unsustainable = Cracks in the Hull Back to the Shipyard


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Cracks in the Hull

Since Recession Began in Fall 2008

Reduced General Fund Operations by 20%

Reduced Utility(Water & Wastewater) FundOperations by 7%

Reduced HURF Fund Operations by 13%(43% total Fund)

Library Fund grew by 8%

Reduced Overall Personnel by 13%Review Exhibit 1


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Exhibit 1


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Cracks in the Hull

Result = Impacts on the sustainability ofInfrastructure, Facilities, Equipment, Personnel& Services

FY2011 Transmittal Letter & Graph (Exhibit 2) No or Limited Revenue Enhancement Two StrategiesEfficiency; orService levels


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Cracks in the Hull

City has focused on efficiency Reduced in places where workload has stayed flat or

grown Courts Police Fire Utilities Economic Vitality IT

Management Services HR Legal City Clerk

Reduced staff in places where workload has dropped Community Development


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Cracks in the Hull

Efficiency How do we compare?IBM White Paper Smarter, Cheaper, Faster (Ex.

3)

Survey of 100 largest U.S. citiesAverage employees 657/100,000 for Core ServicesFlagstaff 675/100,000 for Core Services

Average expenditures for Core Service=$702/Capita

Flagstaff $623/capita (may explain 19% below marketpay)

Not adjusted for Cost of Living


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Exhibit 3


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Cracks in the Hull

Further Efficiency IdeasInstall radio read metersAgenda software for ClerkAuto attendant for switchboardFire & Police time entry via cloud computingContinual evaluation of workload to staffing ratios


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Cracks in Hull

Will continue to push the envelope onefficiency but limited options remain.

That leaves service cutsPerformance Measures (Inputs, Outputs,

Outcomes)

Look at full menu of services

Re-prioritize and re-allocate Fiscal Policy PrioritiesExhibit 4


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Exhibit 4


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Cracks in the Hull

FormatVisible services and goalsService levels vs. actualsService level policy choicesConsequences of choices


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INFRASTRUCTURE


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Infrastructure

Streets-Service Levels Visible Services & Goal ALL HURF FUNDEDSnow Plowing Plow all streets within 18 hours of

end of storm if less than 12 inches; De-icer

ProgramStreet Maintenance Minimum OCI of 70Pot Hole Repair Repaired within 24 hours of

reporting

Street Sweeping Downtown 5 day/wkSouthside 3 days/wkArterials 1/wkResidential 2/mo


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Infrastructure

Streets Actual Service levels relative to actual

Snow Plowing Plowing & De-Icer Achieved Requires $150,000 transfer from GF for De-Icer

Street Maintenance OCI range from 32-100 w/Avg=76.4 293 out of 978 segments under OCI of 70 $500,000 from GF for O&M $2.8 Million in 2008-2009 vs $893,000 in 2011-2012 $50 million to catch up Need between $4-$8 M /Yr for maint. & rebuilds

Pot Holes Achieved 99% of time Street Sweeping

$10,000 GF transfer for street sweeping Downtown 5 days/wk Southside 3 days/wk Arterials 1 day/wk

Residential 1 day/month


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E. Old Rt. 66

ADOT Yard to I-40OCI = 32


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Elden St.

Aspen to Cherry

OCI = 41.3


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San Francisco

Columbus to ForestOCI = 50.9


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Beaver St.

Butler to FranklinOCI = 60.1


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Sparrow

Foxglenn to 4th St.OCI = 69.8


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InfrastructureStreets - Choices Service Level Choices Snow Plowing No plowing of residential under 4 inches ($135,000 savings) Pay $50,000 for de-icer from Stormwater Less for DRIP

program

Street Maintenance At status quo, chip seals increase from ~10 to 14-15 years At status quo, overlays increase from ~15 to 20+ years Minimum OCI will fall below 70

Street Sweeping w/ de-icer - $94,000 Downtown - 3 days per week & as needed Southside 2 days per week & as needed Arterials 1 day per week & as needed Residential once per quarter & as needed


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InfrastructureStreets - Consequences

ConsequencesSnowplowing More complaints, more vehicles stuck, packed snow

turning to ice

Street Maintenance When a streets OCI drops below 70, they deteriorate

faster and are more expensive to fix

Street SweepingMore dust in the air; dirtier streets, rocks that crack

windshields


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InfrastructureUtilities Service Levels

Visible Services & Goal Utilities FundedWater Lines - Replace 2 miles of annuallySewer Lines - Replace 1 mile of annuallyWater Meters Replace every 10 yearsReclaim Water Produce A+ from all WWTPWater Resources Meet future demand

No Violations Make O&M and CapitalImprovements to meet all regulations


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InfrastructureUtilities - Actuals

Service Levels Relative to Actuals Actual Revenue $800,000 under model projection for

FY12

Water Lines 0 miles in FY11, 0.5 FY12-13; 1 FY14; 2FY15 Sewer Lines 0 in FY11, 0.2 12, 0.4 13-14; .6 15-17;1

20

Water Meters 0 in FY11, 3% in FY12, $1.5 M toCatch-up

Reclaim Water Achieved Water Resources Paying $82,000/yr to fund ADWR. Demand is expected to exceed 100 year water supply in ~20

yrs

Stipulation with Navajo achieved for Red Gap supply.


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Rate Model Error

Cost/Flow = Rate Calculated for water separate from sewer Water is within model tolerances Sewer was off substantiallyInvestigation revealed the flow number used was

in error

Vendor can produce no documentation of why #changed, only when it changed

Vendor accepts no liability since we accepted themodel


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InfrastructureUtilities - Choices

Service Level Choices Model Error Defer Operational Capital & no Rio in FY12 Correct the rate for July 1, 2012

Water Meters Catch-up by imposing a ~$1.31 per month surcharge Replace 10%/yr starting in 2016 - Requires $300,000/yr

Water Resources If State renews its $82,000 surcharge, pass it on as $0.36

per month per account Begin financial planning for Red Gap now

PPA Institute only big ticket projects with minimal ROI, but

diversified.


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InfrastructureUtility - Consequences

ConsequencesCommunity resistance to increased charges new

rate charges just took effect January 1, 2011

Generally people paying less than projected sonot the hit that was expected

Red Gap discussion will shape Regional PlanDiscussion


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FACILITIES


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FacilitiesBuildings Service Levels

Visible Service Levels & GoalsFacilities Condition Index Average of 85%Custodial costs of buildings - $500,000Custodial cost per sq.ft. (BOMA Benchmark)-

$1.50

Utility & maintenance costs per sq.ft. of officebuildings - $8/sq.ft

Includes custodial


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FacilitiesBuildings - Actuals

Service Levels vs. ActualsFacilities Condition Index CY11 Average of 65%Maintenance appropriation dropped from $500,000/yr

to $200,000Custodial costs of GF buildings - $408,000Custodial cost per sq.ft. actual -$1.39Utility costs per Sq.Ft. of office buildings $5.83Includes custodial


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FacilitiesBuildings - Choices

Service Level ChoicesLower StandardReduce Facilities Index to 70%

Fewer BuildingsEliminate Chase Basement lease

Better BuildingsCourt HouseMaintenance Facility

Restore Maintenance LevelsContinue to pursue APS credits on Alt Energy

Projects


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FacilitiesBuildings - Consequences

ConsequencesCosts money to break leasesLess positioned if/when growth returnsIncreased funding maintains what we have &

avoids future large expenditures

Better Buildings may require bond election toextend (not increase) property tax.


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FacilitiesParks Service Levels

Visible Services & Goals GF & BBB FundedNumber of parks & acres per park per 1,000 (96

Goal)

Neighborhood 1.01 acres/1,000Community 1.42/1,000Regional 2.03/1,000Specialty 1.06/1,000

Maintenance level of parks Avg. = 2Amenities in Parks Playgrounds, Ramadas, Ball

fields

Miles of FUTS 1 mile /yr


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FacilitiesParks - Actuals

Service Levels relative to actualsPark acres/1,000 peopleNeighborhood - 0.38/1,000Community - 0.84/1,000Regional 0.87/1,000Specialty 4.06/1,000No Neighborhood Park west of Milton and N of I-40No Community Park West of Ft. Valley RdNo Regional Park in South/Southwest of City


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FacilitiesParks - Actuals

Service levels relative to activeMaintenance General Fund Parks - Avg = low 4BBB Parks & Medians = Avg = 3

No new amenities/facilities in last three yearsMiles of FUTS Trails/yr = AchievedMultiple funding sources (Bond, BBB, Transportation

Tax)


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FacilitiesParks - Choices

Service Level Choices Re-purpose Specialty Parks to Neighborhood,

Community or Regional Parks

Decommission/Transfer/or Re-purpose to PassiveParks ($25,000) Exhibit 5 & Exhibit 6 Offer to HOAs Sell park to Open Space

Increase maintenance level at remaining parks Remove turf at Senior Center, Thorpe Park tennis

court, & Library (>$3,000 savings but 50% water)

No maintenance of residential downtown trees


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Exhibit 5


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FacilitiesParks - Consequences

ConsequencesRatios of parks to goals drops further below

average

Argument decommissioning not saving enough tojustify


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EQUIPMENT


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EquipmentFleet Service Levels

Not a direct service level but indirectEx. street sweepers; police cars, snow plows

No replacement fund. Fund as revenuesallowed.

GF $500,000/yr in 2008 vs. $178,000/yr in 2012GF $286,000/yr FY13-FY18

Fire trucks separate Started fund with sale of Sawmill South ($1M

+), but 1x


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EquipmentFleet - Inventory

Fund # Rolling Stock Purchase $ Est.Replacement $

GF 261 $11,127,975 $11,520,521

Solid Waste 66 $ 9,261,696 $11,438,868

Utilities 87 $ 3,288,305 $ 5,357,400

Airport 17 $ 2,227,831 $ 5,863,000

Streets 115 $ 8,325,450 $22,565,000

Total 546 $34,231,257 $56,744,789


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EquipmentFleet Choices & Consequences

Service Choice Start Vehicle Replacement Fund Determine life cycle of vehicle

Charge rent/replacement fee of vehicle per year Distribute $286,000 to start Distribute 1x $ after immediate Fire purchases At 10 yr average life span need ~$1M/yr

Consequences No vehicles can be purchased because money

distributed everywhere

Divisions have to cut something else to replace vehicle leads to further service cuts


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PERSONNEL


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PersonnelService Levels

Visible Service Levels & GoalsQuality of Service Provision Excellent or Good

Job as indicated in Citizen Survey

Compensation & Benefits Middle of the MarketTraining Maintain Professional TrainingUniform Present Professional AppearanceStaffing - Adequate Staffing per Service. Includes

overtime for Police, Fire, Snow Removal, &Utilities


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PersonnelActuals

Service Level vs. Actual Quality of Service 77% Excellent or Good; 21% Fair

or Poor(2009 Citizen Survey)

Compensation & Benefits Stacking of negatives 19% below Market (2008 survey) Pay cut in May 2009 No raises since 2008 No market adjustments Decrease in benefits Family Premiums & Deferred Comp Decrease in take home pay More functions Less appreciation Anti Government Movement


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Personnel

Countermeasures City Manager Awards Pension offset to salaries Triggers in place Fiscal policy priorities provide hope Better communication

Helps but Still Increase in grievances Increase in legal complaints Good people go elsewhere


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PersonnelActuals

Service Levels vs. ActualsTraining 0-100% of 2008 level; 32% averageUniform 0% - 50% of 2008 level; 33% averageStaffing13% reduction = Match IBM SurveyOT cut from $1.7M/yr to $1.3M/yr


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PersonnelChoices

Service Level ChoicesFurther staffing reductionsRestore 2009 pay cutAchieve minimum of 25% of 2008 training levelAchieve minimum of 25% of 2008 uniform

allowance

Restore $50,000 in overtime Consequences negatives noted previouslyBetter morale, training, appearance, & quality


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OTHER SERVICES


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Public SafetyPolice Service Levels

Visible Service Levels & GoalsPart 1 Violent Crime 4.0/1000Property Crime continued reduction to 34/1,000Part II Drug Arrests 6.6/1,000Domestic Violence decrease reports 5%Reduce Traffic Collision 5% from CY2007Average Response Times 6.29 minutesFavorable Customer Service Rating 80%


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Public SafetyPolice - Actuals

Service Levels vs. Actuals (CY10)Part 1 Violent Crime 4.0/1000Property Crime 46/1,000andup 1%Part II Drug Arrests 10.6/1,000Domestic Violence down 3.8%Reduce Traffic Collision down 27% from

CY2007

Average Response Times 4.46 minutesCustomer Service Rating 81% (2009

Community Survey); 87% (Ongoing CustomerSurvey)


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Public SafetyPolice - Choices

Service Level ChoicesCOPS Grant expires in FY2014 6 officer

positions

Eliminate Federal Assignments FBI, MarshallsEliminate DARECOPS Grant for Southside/Inc parking

enforcement

ConsequencesIf grant positions not funded service level

decrease

Public push-back on no DAREMorale issues in Department


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Public SafetyFire Service Levels

Visible Services & GoalsALS personnel on equipment 90% of timeResponse times, initial response 5 min 90% of

time (includes turnout and travel)Response times, full deployment 9 min 90%Fire loss less than 2 tenths of 1 percentLimit wildfire size 5 acre avg. treated; 20 acres

untreated


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Public SafetyFire - Actuals

Service Levels vs. ActualsALS Personnel on Equipment 96% of timeResponse times, initial response 5 min 62.8% of

time (includes turnout and travel)Response times, full deployment 9 min 75% of

time

Fire Loss 0.04% lossLimit wildfire size 0.27 acre avg. treated; 0.1

acres untreated


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Public SafetyFire - Choices

Policy ChoicesReduce Station 4 from Engine to RescueReduces ALS service to BLS (related 2 tier)Add non-emergency service unit A.K.A Rolling

Medic

Fuel Management Grant - 50% expires in FY13 ConsequencesLonger response to fire calls in District 4Rely on Guardian for ALS service


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Public SafetyCourts- Service Levels

Visible Service Levels & GoalsRight to a speedy trialCase Processing Measurement ABA National

Standard: 100% disposed in 90 days.Backlog Measurement Pending Case Ratio-

National Standard: .25 (# pending/filings yr.).

Workload Measurement- # of Citations per FTE Goal is 2,200/FTE.

DV Recidivism low as possibleRecidivism of Drug Offenders low as possible


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Public SafetyCourts Actuals

Service Levels vs. ActualRight to a speedy trialCase Processing Measurement Currently 76%

disposed in 90 daysBacklog Measurement Pending Case Ratio

Current Ratio 1.071 CY11 (4x standard)

Workload Measurement Current # of Citations perFTE - 2,709/FTE CY11

DV Recidivism 5.2% CY11Recidivism of Drug Offenders 4.6% CY11


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Public SafetyCourts - Choices

Service Level Choices Maintain Status Quo Workload varies depending upon

officer and grant activity;

Reallocate Resources by using dedicated court funds toincrease Judicial Specialists thus reducing ratio; Increase Efficiency through Technology- Requires IT

Specialist; Increase Resources - Create a Civil Division.

Consequences of Choices Status Quo Backlog will continue to increase unless there

is a significant decrease in work load. Increased backlogwill force the court to prioritize case by case type (civilcases will not be processed).

Reallocate Resources Reduce backlog and increasespeed. Additional staffing is money cant spend on newfacility


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Community DevelopmentService Levels

Timely completion of Planning Studies 90%30 day review of Development Apps 90%No Surprises after DRB 0Capital Projects on schedule and budget ->90%Traffic Studies and work orders 80/yr totalNo Infrastructure retests/warranty work - >95%Applicant satisfaction with Planning 90%New Affordable Housing Units 10%/yr


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Community DevelopmentActuals

Timely completion of Planning Studies Yellow*30 day review of Development Apps 92.3%No Surprises after DRB 0Capital Projects on schedule and budget -100%Traffic Studies and work orders 53 TotalNo warranty work on Infrastructure 99.9%Applicant satisfaction with Planning 95%New Affordable Housing Units CY10: 22%

Ownership (12) and 100% Rental (56)


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Community DevelopmentChoices

Service Level ChoicesIdentify a total of $50,000 in GF savingsCombine Comprehensive/Neighborhood Planning

and Zoning Administration given completion ofprojects

Analyze Housing/Public Housing ProgramsContinued monitoring of workload/FTE

ConsequencesFewer community planning servicesLess capacity for attaining housing units


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Community EnrichmentService Levels

Visible Service Levels & GoalsProvide Recreation Programs Core, Secondary

& Support Recreation Programs

Provide Recreation Facilities 5 facilitiesCustomer Satisfaction 90% satisfiedCost Recovery Direct Expenses100% adult programs

50% Youth Programs70% Aquaplex

Library Satisfaction 88%


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Community EnrichmentActuals

Service Levels vs. ActualsProvide Recreation Programs AchievedProvide Recreation Facilities AchievedCustomer Satisfaction Achieved 90%Cost Recovery Direct Expenses90% adult programs85% Youth Programs [100% equals 50% cost

recovery]64.5% Aquaplex

Library Satisfaction 97%


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Community EnrichmentChoices

Service level ChoicesClose Aquaplex on TuesdaysRe-purpose CogdillRedirect BBB Recreation Capital to Flag Rec

Center

Full cost recovery for J. LivelyReduce Senior Recreation CoordinatorsReduce Support ProgramsReduce Library HoursReduce Library Materials


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Community EnrichmentConsequences

ConsequencesQuestion about Annual Pass fees at AquaplexNon-City programming in underserved areaLack of Capital to fund recreation facilities

improvements

Complaints on fees at J. LivelySupport programs may not be offered in

community.Complaints about Library Access


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Service Expansion

Rio de Flag COPS Grant Snowplay Property Maintenance Ordinance


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Re-Allocation

Fiscal Policy Priorities Cracks in the Hull Maintain what we Got


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Re-Allocation

Ideas considered but not recommendedEliminate one Deputy City ManagerConsolidate Police & Fire into Public Safety

DivisionReduce Contributions to agencies 50% if >

$25,000

Distribute BBB Arts & Science Funds w/ City Staff


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Re-Allocation

Proposed Service Reduction Possible Dollars

No Residential Snow Plowing


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Re-Allocation

Proposed Service Reductions Proposed Re-allocation

Increase Aiport PFCs $100,000

HURF Reduction as it grows $ ?

Decommission/Repurpose Parks $25,000

Merge Comp Planning, NeighborhoodPlanning, & Zoning or DecreaseHousing

$50,000

Re-allocate DARE to Parking in 2014 $ 0

Eliminate Brownfield Program

Reduce Materials at Library $30,000

BBB Funding of Flag Rec $200,000

Re-allocate $50,000 from Stormwater $50,000

Total $1,349,000


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Re-Allocation

Possible Re-allocations Total Need Re-AllocatedDollars

Maintain St O&M Arterials &Collectors

$4- 8 Million/yr$50M catch-up

$200,000

Increase Facility Funding $300,000/yr $100,000

Increase Vehicle Replacement Fund $500,000/yr + Fire $150,000

Increase Park Maintenance onFewer Park

$500,000/yr $100,000

Restore Paycut (Merit Pool ifTrigger)

$450,000 $450,000

Restore Train to 25% $390,000 (100%) $17,000Restore Uniform Allowance to 25% ? $20,000

Restore Some OT for Public Safety &Utilities

$400,000 $50,000

Funding of 6 officers in FY14 $435,000 $145,000

Increase Funding of Outside Legal $100,000GF Total $1,332,000


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Re-Allocation

Possible Re-allocations Total Need Re-Allocated Dollars

Replace Water meters withradio Reads

$1.5M catch-up$300,000/yr 10% after

$1.31 monthly surchargefor 5 yrs for catch-up

Courts 1.25 JudicialSpecialist

$182,750 (4.5 J.S.) $53,750 [From CourtCollections]

Courts IT Specialist $60,000 $60,000 [From CourtCollections]

Courts Pursue PPP for

New Courthouse

~$12M $unknown

Courts New CourthouseMaintenance

$240,000 (@$6/sqft) $200,000 [FromImprvmnt & Collections]


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DISCUSSION

Whats in the range of possibility?

Documents

FY2013 November Retreat