Memorandum

City of Lawrence

City Manager’s Office

DATE:	5/21/2009
TO:	David L. Corliss, City Manager
FROM:	Casey Toomay, Budget Manager
CC:	Cynthia Boecker, Assistant City Manager Diane Stoddard, Assistant City Manager Jonathan Douglass, Assistant to the City Manager
RE:	Follow up items from Budget Meetings with Departments

Below is a summary of the action items presented and/or requested by the City Commission at previous Budget Study sessions to date.  Updates will be provided as additional information becomes available or additional requests are made.

City Manager’s Office

· Look more closely at City Commission budget and perhaps make some cuts.  The City Commission budget has been reduced by $7,800 to be more in line with 2008 actuals.  A portion of these reductions were moved to a newly created division to separately account for the City Auditor.

· When will all property tax appeals be complete?  Marion Johnson, Douglas County Appraiser reports that, “the informal appeal process basically runs from March 1 through May 15.  We are just now finishing up the informal hearings.  The formal appeal process, appeals to the state, will run over the next two or three months.  Typically, we will have around 200 formal appeals.  The real estate and personal property values for 2009 will be certified to the county clerk by June 15th.” 

· Provide a breakdown of where the 1994 sales tax money goes. 

· Work with departments to address "other" expenditures - especially parks mowing contracts -- use different language or account numbers.  CMO has been working with department and Finance to find existing accounts in the AS400 that more accurately describe the expenditures where appropriate and will require department to provide additional explanation in the “justification” column on budget detail spreadsheets.

· Understand volatility points in commodity costs - utilities -- always hear increases - not decreases. 

· Sustainability coordinator issue.  Creation of a joint City/County position was discussed at the May 26 City Commission meeting as part of the grant application for EECBG funding.  Per City Commission direction, this position will be included in the grant application.  Staff will work with county staff to develop an agreement which outlines funding, oversight and work plan.

Finance

· Any way to incentivize participation in paperless utility billing?  Finance is working on an analysis and will provide recommendations upon completion of the selection of a bank to provide banking services for the City.

Fire Medical

· Follow up on F/M budget - changes from 08 actuals - large increases (in all areas necessary - F/M largest identified in analysis) - focus on electricity costs.  Fire Medical budget request has been reduced to be more in keeping with 2008 actuals.  Further reductions resulting from elimination of CPR classes, school district classes, and the bike helmet program.  The electricity costs have been reduced to include a 10% increase over the 2008 actual (including Station 5.)

Library

· Library will continue monitoring state funding and NEKLS funding issue and will keep us abreast.

· Energy cost savings analysis for library - in terms of EECBG.  At the May 26 City Commission meeting energy upgrades for the library were discussed as part of the EECBG funding application.  Per City Commission direction, replacement of two HVAC systems original to the facility, HVAC controllers and lighting will be included in the grant application.  Tracking of energy savings will be part of the reporting for the grant and is recommended to be part of the job description of the sustainability coordinator.

· Follow up/continued review of HVAC and roof repairs on library.  Ongoing

Parks and Recreation

· Parks budget - fire station 5 utilities pulled out - money still there?  Fire Station 5 was not included in the electricity line item in parks and recreation budget.  2010 request is a reduction from 2008 actual. 

Planning and Development Services

· Confirm number of planners removed from PDS.  Two currently vacant planner positions have been removed for the 2010 budget. 

Police

· Explore ways to send fewer people to county jail – e.g. fingerprinting equipment.  Staff is exploring as option to reduce costs and improve service.

· Provide better analysis/price tag of 2013 costs of COPS grant if we receive -- equipment other infrastructure (actual staffing 4 years later.)  All of the equipment costs for the four COPS Grant officers, except for vehicles, can be absorbed in the 2010 budget ($3,500 per Officer).  The cost of a fully equipped patrol car is about $47,400.00 each.    Staff believes costs can be absorbed into 2009 and 2010 budgets. 

Public Works

• What is the impact to pavement condition of liquid pre-treatment vs. salt and sand for ice control?  The impact varies depending on the type of liquid pretreatment.  Liquid calcium chloride, for instance, has the same impact on streets as salt/sand, with the exception that the liquid version is applied directly to the salt, which activates that salt as it hits the streets shortening the time required to remove the ice, thus reducing the amount of chemical used.  Other types of liquid vary from beet juice to a corn derivative product.  Some of these reduce the impact that a salt-based product creates.  At this time, it is premature to speculate on what we will end up with.  We are working and hoping to have the funds to eventually pursue this process.  It will require start up and equipment retrofitting as well as installation of storage tanks and pumping systems.
• What is the cost per mile (or cost per lane mile) for mill and overlay? Approximately $123,000 per lane mile based on $14.00 per square yard and a 15-foot lane.
• Why do we no longer do painting traffic markings vs. the applied materials?  It has been the city’s practice during 15 years to include plastic pavement marking materials on all new streets and as a part of “mill & overlay” projects.  These materials last much longer and retain reflectivity much longer than paint.  A painting operation requires a significant investment in equipment (a truck-mounted paint striping can cost up to $300,000), facilities (storing of paint, cleaning materials and disposal of hazardous waste) and personnel (a striping operation takes a minimum of three persons).
• What are the quality control processes used to ensure both material and workmanship for curb contractors / subs? Currently all projects have project documents that require testing and compliance with city standards.  We have inspection staff assigned to each project.  Every concrete pour is observed for compliance.  The issue with some older constructed curbs are from a time when the city specified limestone aggregates.  That practice has since been eliminated.  Currently the city specifies granite aggregate, which has proven so far to be superior to the limestone.
• What is the process of equipment replacement and / or replacement program planning for solid waste, given the amount of dollars required?  The Solid Waste Division fleet has an established equipment replacement program.  Units are scheduled for replacement based on type of use, age, condition and repair history.  We have adjusted the rotation of the trucks (life-cycle) because we had found that the costs for engine replacements, transmission replacements, and suspension have increased significantly in the 8^th and 9^th year of operation for the heavy equipment in solid waste.  The repairs themselves are expensive, as is the downtime and service consequences.  We continue to extend the service of vehicles and equipment whenever possible.  In addition to the replacement schedule, equipment is evaluated based on established criteria to ensure that replacement is appropriate to recommend when the budget submittal is being prepared, roughly April of each year.  Equipment is evaluated again in November / December, before actual replacement bid documents and specifications are prepared in January.
• Have we considered alternative fuels in major diesel equipment, such as the solid waste fleet? The alternative fuels task force evaluated a number of options for the transit fleet, and recommended the rest of the city fleet transition to B20 (a 20 percent blend of biodiesel) when the new buses arrive in 2010.  Approximately half the transit fleet is fueled through city fueling facilities.  We are currently pursuing a grant opportunity with the Soybean Council / Commission to off-set some costs of the transition for an initial period of 15 months.  Grant funding awards will not be known until fall 2009.  When B20 is implemented for the transit fleet, we will also transition all other diesel equipment in the fleet to the B20 blend.  The transition of our other diesel equipment will include all the large solid waste vehicles, dump trucks, construction equipment, mowers, tractors, and fire apparatus.  Approximately 200 units in the fleet are diesel-powered engines.

Utilities – Utilites Department Staff has significantly reduced 2010 budget requests to be at or below 2008 actual levels in most line items.