CITY OF EMERYVILLE MEMORANDUM TO: Mayor and City Council (J).. FROM: Patrick D. O'Keeffe, City Manager fdJJ SUBJECT: Progress Report -July 2008 The following provides the City Council and staff with a summary ofthe activities of each department for the prior month. CITY MANAGER • As feared, the State has begun eyeing local government revenues as a way offilling a portion ofthe $15 billion State budget gap. The Governor and the legislature are proposing a total of$2.9 billion in take- aways from local government including borrowing property tax revenues per Proposition lA, diverting Proposition 42 gas tax revenues for road way improvements and shifting redevelopment revenues (presumably to schools per prior ERAF shifts). Attached is a table from the League of California Cities estimating the loss to each city per the combined proposals being discussed. The total estimated loss for Emeryville is approximately $2.5 million. The majority ofthis projected loss is from the Redevelopment Agency. It is not yet clear ifthis is a one year shift or permanent. Ifthe latter, the reduction would reduce our bonding capacity for the next Capital Improvement Program bond issue by approximately $18 million (this is less than I reported at the last Council meeting since this table shows a lower redevelopment shift than previously reported by the League). Although the property tax shift of$870,000 is lower than the redevelopment shift, it is more devastating to us since it would affect the General fund and our ability to fund existing operating services such as recreation and public safety (as opposed to capital projects). Per our recently approved operating budget, we do not have excess funds to cover this shift and would be required to deplete reserves to maintain operations at existing levels. As you may recall, Proposition 1A prohibited the State from shifting property taxes in this manner for 3 years. That grace period has ended and the State can once again do so, although it is now considered a loan that has to be repaid. Future repayment will not assist us in the short run for maintaining our services as budgeted. The Proposition 42 funds are monies that we use for street maintenance, and would reduce 1 our street slurry and repair program. Attached are letters that the League and our Mayor have sent to the Governor and the legislature opposing these proposed revenue thefts. • On a positive note, staff learned this month that the Comp USA space in the East Bay Bridge center has been sub leased to Pacific Sales which is a high end retailer of kitchenlbath and electronic equipment. It is owned by Best Buy and the tenant improvement construction is currently underway. The previous tenant was the city's ------fifth-Iargest-sales-tax-producer, and .staff.was concerned that .this relatively large _ 24,000 square foot space would remain vacant for an extended period. We have learned from our sales tax advisor that the Pacific Sales retailer will meet or exceed the sales tax previously generated by Comp USA based on how this retailer is performing in other communities. • The "2nd/4th Friday E-Bulletin, the City's new electronic newsletter was distributed on July 11th and zs". Highlights included City Council appointment of three Planning Commissioners, an update on Quiet (Railroad) Zones, an update on the temporary relocation of Anna Yates Elementary School, as well as the announcement of new Emery Unified School District administrators. The August editions will be posted on th nd August 8 and 22 • Interested community members can read the electronic newsletter on-line from the City's website: www.emeryville.ca.us or can subscribe and have the newsletter sent directly to their email address. Information on how to subscribe is listed at the bottom of each e-newsletter. In order to publicize the ENEWS, staff conducted a citywide mailing in late May, notifying residents and businesses about the newsletter and outlining how any interested member of the public can subscribe (or unsubscribe). Currently, the ENEWS has 516 subscribers which is a gain of 20 new subscribers following the citywide mailing of a postcard urging residents and businesses to subscribe to the ENEWS. • City Manager and Public Works staff met with Waste Management of Alameda County (WMAC) to have a very preliminary discussion regarding the upcoming expiration of the current waste management franchise agreement with WMAC in December 2010. The City's options are to renegotiate a new waste franchise agreement with WMAC or to solicit bids for waste management through a Request for Proposal (RFP) process. Each "component" of the City's current franchise agreement - garbage collection, garbage disposal , recycling collection, and recycling processing can all be renegotiated or bid out as a whole or as separate services. Staff will be drawing from the technical expertise of the Alameda County Waste Management Authority (ACWMA or StopWaste.org) as this process unfolds. • Staff has received the FY 2007-2008 Annual Report from the 2-1-1 Alameda County Program (attached). By calling 2-1-1 anytime 24 hours a day/7 days per week, community members can receive FREE information--over the phone in multiple languages--about housing, health, and social services throughout Alameda County. Upon dialing 2-1-1, a caller will be routed to Eden I&R, a referral service. Based upon assessed needs, Eden will refer the caller to an agency that can provide 2 information, including but not limited to tenant's rights assistance, emergency shelters and services for battered women, rental and housing assistance, utility bill assistance, food assistance. Note that 2-1-1 is not currently available on all cell phones. Cell phone users that cannot access 2-1-1 should call toll free at 1(888) 886­ 9660. During FY 2007-2008, the 2-1-1 service, handled 46,106 phone calls, resulting in 65,118 human service referrals and 12,022 housing referrals. CITY CLERK OFFICE 1) The City Clerk's Office is recruiting for the position of Executive Secretary/City Clerk Technician. While the recruitment process is underway, requests for assistance from the City Clerk's Office should be directed to Tom McGurk, Deputy City Clerk or Karen Hemphill, City Clerk (Karen Hemphill will be on vacation from August 18 through Labor Day). Staff expects to fill the vacant position by early Fall. To assist us during this transition, Lorrayne Leong will be working with us on a temporary assignment from her position as Office Assistant for the Emeryville Child Development Center. 2) The Council Chamber broadcast/audiovisual system upgrade is almost completed and the Council's July 15th meeting was able to be digitally broadcast for the first time. Staff is still working with vendors to complete installation and training on the video server and character generator which will enable automatic and regular scheduled programming of broadcast meetings and other public service programs (currently the City Clerk's Office has to manually playback each recorded program). However, viewers have already remarked upon the greatly enhanced picture and sound quality ofthe new broadcast system. 3) Staffexpects to begin using streaming video technology ("web" or "pod" casting) to broadcast public meetings (in addition to broadcasting through ETV-Channel 27) starting with the September 16th City Council meeting. Podcasting will enable access to live and/or delayed (after meeting) broadcasting of public meetings to anyone who has access to the Internet. With this technology, viewers of live webcasts will be able to simultaneously refer to City Council, Redevelopment Agency, and Planning Commission staff reports while viewing the meeting. Viewers of rebroadcast/archived Council, Agency or Commission meetings will be able to ''jump'' to specific agenda items rather than having to view the entire meeting. Podcasts as well as the accompanying staff reports and handouts will be archived for future reference as well. In addition, all other ETV-Channel 27 programming, such as special events and public information programs will be viewable through the Internet. 4) Staffis working with the Information Technology (IT) Office to update the City's website. A Request for Proposal has been released by the IT Office and the update is expected to start in September. 3 Local Funds at Risk in the FY08-09 State BudgetStandoff Estimated maximum exposure assumingproperty tax shifts allocatedproportionate to ERAFIII Redevelopment #s from CalifRedevelopement Assn assume flat % ofgross tax increment. Property Tax * Proposition 42 RedevelopmentTI City/County Borrowing Borrowing Shift/ Take CALlFOR'\I.\ CITIES * - 700,000,000 - 286,000,000 - 986,000,000 ~~~ COUNTIES - 700,000,000 - 286,000,000 - 986,000,000 ~~~-~~~. SPECIAL DISTRICTS - 700,000,000 - 700,000,000 <-----~-~-~~-----~~~-~-----~.----~~- ._--~~~ REDEVELOPMENT AGENCIES - 200,000,000 - 200,000,000 ------:~":'":""~. -- -~~~,.~-~~~~,~- ~~~~- STATE TOTAL __ ~~~-_2c.:...'1_00~,0_0~0:....,0~00~~~_-~5_72c.:...'0_0~0,000 - 200,000,000 - 2,!!7..2~~0,000 AI. \'II::D-\. COl - __ -_.. '\n_.... .. _............ .... ALAMEDA ALBANY .~-------~~~~~ BERKELEY DUBLIN ~~~~ EMERYVILLE - 1,280,368 ----------........- FREMONT - 1,345,701 ~~~~- HAYWARD ~~-~~~ LIVERMORE NEWARK OAKLAND ~~~~~~-- PIEDMONT -----------~~-~~~~~ PLEASANTON ~~~-_. ~~~~----_.---------- SAN LEANDRO ~~~~~~~~------------- UNION CITY - 823,789 County of ALAMEp.,A -709,442 Special Districts in ALAMEDA County ALPI'\E COl '\n -- -- -- ---- ---- .. ---_._. -- ._-- .... _--- County of ALPINE - 27,156 - 161,367 - 188,523 ~~~~~.--~_ _-~~~-- -~~~ .. ~pe~~Districts in ALPINE County - 144,168 - 144,168 .\\I.\DOR COl .. -- -- yn----- -------_._---_._ ... _-_ .... _-- AMADOR - 4,480 - 1,986 - 6,465 ~~~~~---~~~-~~-~-~-~_._------. lONE - 86,885 - 72,092 - 158,977 ..-----.-----------.-..-...-_-_..-----,- -- --...--------- JACKSON - 132,913 - 40,183 - 173,096 ---.. --.. -------------------_ .. _------------_ .._---------- --------.-----_ ---------._- -.----_ ..-_.- ~ ..~.~~ _._--_._.- ..------- PLYMOUTH - 23,283 - 9,873 - 33,156 .. _ ---. ~ ----.--------- - _-- - --..-... SUITER CREEK - 60,671 - 27,073 - 87,745 -.-..........---------...__..-------""--""--.------..--- ..._--.-------------...