HomeMy WebLinkAbout2011 02-05 CC CDC ADJ MINBook 93 / Page 39
02-05-2011
MINUTES OF THE ADJOURNED REGULAR MEETING OF THE
CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION
OF NATIONAL CITY, CALIFORNIA
February 5, 2011
The Adjourned Regular Meeting of the City Council and Community
Development Commission of National City was called to order at 9:06 a.m. by
Mayor / Chairman Ron Morrison.
ROLL CALL
Council / Commission members present: Morrison, Natividad, Rios, Sotelo-Solis,
Zarate.
Administrative Officials present: Babaki, Dalla, Deese, Duong, Gonzales,
Hodges, Ladrido, Parra, Raulston, Silva, Smith, Williams, Zapata.
Others present: City Treasurer Mitch Beauchamp.
PLEDGE OF ALLEGIANCE TO THE FLAG BY MAYOR RON MORRISON
BUDGET WORKSHOP
BUDGET FY 2010-2011 (206-1-26)
COUNCIL MEETING PRESENTATIONS 2011 (102-10-6)
1. City Manager Overview
City Manager Chris Zapata, with the aid of a PowerPoint Presentation,
provided a detailed overview of the challenges, progress and
accomplishments in National City from 2006 to the present as well as
current and future financial challenges confronting the City. (Copy on file
in the Office of the City Clerk)
2. Finance Presentation
Finance Director Jeanette Ladrido presented the FY 2010-2011 Mid -Year
General Fund Budget and the FY 2011-2012 Estimated General Fund
Budget. (See attached Exhibit A)
3. Strategic City Planning and Capital Improvement Program
CDC Executive Director Brad Raulston reviewed Strategic City Planning
efforts; highlighted nine strategic objectives and proposed actions and the
Five-year Capital Improvement Program. (See attached Exhibits B and C)
Book 93 ! Page 40
02-05-2011
BUDGET WORKSHOP (cont.)
BUDGET FY 2010-2011 (206-1-26)
COUNCIL MEETING PRESENTATIONS 2011 (102-10-6)
4. Proposition D Sales Tax / Independent Committees
Assistant City Manager Leslie Deese gave an "Executive Summary of the
Proposition "D" Transaction and Use Tax" (See attached Exhibit D),
reviewed the financial challenges and struggles that made the tax
necessary, described National City today with the district tax and the need
for an independent committee to make recommendations on its future and
reported on "Cost Cutting Measures, Revenue Enhancements and
Efficiencies" for the period 2006 through 2011. (Copy on file in the Office
of the City Clerk)
A recess was called at 10:34 a.m.
The meeting reconvened at 10:48 a.m.
All members were present.
5. Public Oral Communication
Dukie Valderrama, National City Port Commissioner, commended the
Mayor, Council and staff for doing a great job of running the City. Mr.
Valderrama said that every City has the same financial problems but you
don't see the growth in other cities that you see in National City. Mr.
Valderrama said he is concerned about the sales tax because the City
couldn't have survived without it; a lot of good things have happened
because of the tax and the presentations showed that the money is being
used for the right things. When a committee is formed to review the sales
tax, Mr. Valderrama offered his services to be part of the committee.
Mitch Beauchamp, City Treasurer, urged the City Council to consider the
human capital that is involved in budgetary decisions. With the economic
recovery five years down the road, Mr. Beauchamp said he believes the
City will have to look at more employee layoffs. Mr. Beauchamp also
believes that the Finance Department staff is overworked, stressed and
needs support and professional help. Without help, Mr. Beauchamp
believes we will have serious problems. Mr. Beauchamp also expressed
concern about building housing in the area of 18th Street and Hoover
Avenue due to the potential rise of sea level in the future.
Book 93 / Page 41
02-05-2011
BUDGET WORKSHOP (cont.)
5. Public Oral Communication (continued).
Geoffrey Schrock, National City, said he is a strong advocate for the
Proposition D district sales tax because it has enhanced the quality of life
for citizens and made National City more beautiful and thriving. Mr.
Schrock believes that National City is definitely worth more than a penny
on the dollar and he hopes citizens will support continuing it in 2016.
6. Mayor and Council
Member Sotelo-Solis thanked staff for a fine presentation; requested staff
look into possible savings from eliminating one street sweeper; suggested
consideration be given to establishing a Wi-Fi zone along Highland
Avenue; creating a volunteer or curator program and exploring the
possibility of selling naming rights to City facilities and events as a way to
raise revenue. Member Sotelo-Solis requested a report that shows how
much money is being used to contract out and in what areas.
Member Natividad thanked staff for their effort and work in preparing a
presentation that covered a great deal of material and was easy to
understand. Member Natividad said the two most important things to him
are that people are watching what is going on by attending meetings or
watching from home and that communication with staff and the public is
important because if people don't understand, it is a problem. Mr.
Natividad believes the City should be more understanding of small
business and asked if it would be possible for the City to allow businesses
to pay required fees by making payments rather than in one lump sum.
Member Rios thanked staff for working so hard to provide information. It
is her belief that when budget and efficiency cuts are considered, all
departments should be looked at before decisions are made and that the
City needs to inform citizens that the district sales tax exists to provide
services to them.
Member Zarate congratulated all departments and said it is very important
for the Council and community to see all the things that each and every
one of the departments has done as well as all the challenges that we
were faced with and that still lie ahead. Member Zarate believes it is
important to stay in contact with the Chamber of Commerce and business
community; expressed concern about the possible loss of enterprise
zones; stressed the importance of developing our gateways and
continuing citizen engagement and neighborhood councils.
Book 93 / Page 42
02-05-2011
BUDGET WORKSHOP (cont.)
6. Mayor and Council (continued).
Mayor Morrison said there was a great deal of work what that went into
preparing and presenting the materials and we need to thank staff. He
believes there is a will to do good things in the community and the City
has tried to be innovative but we need to ask if it is realistic to do 'wish list'
items considering the possible Toss of $14 million of redevelopment funds
because of the governor's redevelopment proposal, proposed elimination
of Enterprise Zones and cuts in federal funding. Mayor Morrison said the
City will need to be actively involved in budget battles over the next few
months and that he really appreciates the work and level of commitment
and caliber of employees that we have. He believes that the strategy,
plans and objectives for the future that staff has put together required a lot
of work that is helpful to the Council and kept a vision that is really
important.
ADJOURNMENT
Motion by Sotelo-Solis, seconded by Zarate, to adjourn the meeting to the next
Regular City Council and Community Development Commission Meeting to be
held Tuesday, February 15, 2011 at 6:00 p.m. at the Council Chambers, National
City, California. Carried by unanimous vote.
/13
City Jerk / ecording Secretary
The foregoing minutes were approved at the Regular Meeting of April 5, 2011.
Mayor / CDC Chairman
Finance Presentation Part I:
FY 10-11 Mid -Year General Fund Budget
Finance Director
Jeanette Ladrido
EXHIBIT 'A'
Fiscal Overview
• Clean financial audits of City, CDC and Federal
Awards
• City's Standard & Poors Rating is A
• Continuous review of operating costs & seeking
revenue enhancements
• Limited General Fund Debt
• Contingency reserve closed at $6.1 million @
1/31/11
0
$45
$40
$35
$30
$25 - T . GAP filled with -
one time
$20 - GAP = $3.3 M • - • funding and -
$15 - General Fund
$10 - • Revenue
-0— Expenditures
$5
General Fund
Revenue and Expenditure Forecast
Prop D
1
reserves
$0 I 1 I 1 I I I 1 1 I
07 0 0�, OQ Os 00 O,> 00 00 70 77
General Fund Update
• General Fund Revenues & Expenditures
are on target with original budget
-No Significant Revisions recommended
-Minor budget revisions will be requested
at the Feb 15, 2011 meeting
Estimated Revenues & Transfers In
Estimated Expenditures & Transfers Out
$ 39.2
$ 39.2
Sales Tax and District Tax
Combined Revenue
a
0
$25
$20
$15
$10
$5
$0
PPP"
2003 2004 2005 2006 2007 2008 2009 2010 2011
■ Sales Tax ■ District Tax
General Fund - Sales Tax Revenue
$18,000,000 — $16.5
$16, 000, 000 —
$14,000, 000 — $14.7
$12, 000, 000
$10, 000, 000 —
$8, 000, 000 —
$6,000,000 —
$4, 000, 000 —
$2, 000, 000 —
$0
$14.9
$13.7
$11.9 $11.8
$5.9
—III—Sales Tax
—II—District Tax
$9.1 $8.7 $8.9
$8.5 $8.1 $7.9 $8.1
2003 2004 2005 2006 2007 2008 2009 2010 2011
General Fund Contingency Reserve
General Fund Policy: ... range between 25% and
50% of a single year's General Fund operating
expenditures
• FY 10-11 Estimated General Fund expenditures =
$39.2 million
■ Reserve will be at 16%, which is $3.7 million below
target level of $9.8 million
($39.2 million x 25%)
• 2005 reserve was $4.2M
• 3 of the past 7 years National City has dipped into
reserves
12-
10-
8-
6.6
6
4
2
0
History of Contingency Reserve
8.2
6.8
9.4
9.7
9.4
9.8
02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11
E Reserve —•-25% Goal
Finance Presentation Part II:
FY 2011/2012 Estimated
General Fund Budget
Finance Director
Jeanette Ladrido
General Fund Estimated Revenues
Sales Tax
District Tax (Proposition D)
Property Tax In -lieu of VLF
Property Tax In -lieu of Sales Tax
Property Tax
Transient Occupancy Tax
Investment Earnings
Transfer from Gas Tax Fund
All Other Revenue
$9.0 M
8.2 M
4.5 M
3.0 M
1.5 M
0.7 M
0.3 M
0.7 M
5.3 M
Total Estimated Revenue $ 33.2 M
General Fund -Operating Expenditures
Personnel 26.0 M
Maintenance, Operations & Capital Outlay 4.3 M
Internal Charges
5.8 M
Operating Transfers Library, Parks, 1.6 M
Nutrition Center
Total Estimated Operating Expenditures $ 37.7 M
Estimated FY 11-12
General Fund Summary
Estimated Revenue Preliminary $33.2 M
Estimated Expenditures Preliminary (37.7 M)
*Surplus/(Deficit) (4.5 M)
`Excludes funding for Capital Projects
General Fund Projections to 2015
Description
2011
2012
2013
2014
2015
Revenue
39.2
33.2
34.2
35.2
36.2
Expenditures
(39.2)
(37.7)
(38.8)
(40.0)
(41.2)
Surplus/(Deficit)
(0)
(4.5)
(4.6)
(4.8)
(5.0)
* Projections assume 3% growth in revenue and expenditures
General Fund Projections to 2015
44
42
40
c
38
2
36
34
32
30
$41.2
$40.0
$38.8
$37.7
35.2
36.2
34.2
2012 2013 2014 2015
■ Revenue
■ Expenditures
* Projections assume 3% growth in revenue and expenditures
Next Steps
• February 15, 2011 Council item to
summarize recommendations and reflect
mid -year changes in FY 10-11 Budget
• FY 11-12 Budget cycle in progress
• FY 11-12 Budget workshop last week of
May 2011
• Adopt FY 11-12 Budget no later than June
30, 2011
cn
oi•
0
co
0
EXHIBIT 'B'
*^ CALIFORNIA *.
NATIONAL CITY
fNCORPOAAT EO
2011 Proposed
Strategic Plan
Prepared for Council Workshop
February 4, 2011
*`-^ CALIFORNIA ^«
NATIONAL cfiry
\' 'A'C:0. RpORlATE
Strategic Objective 1 and Proposed Actions
2007 Function as One City — Function as a Team
Align City departments and Community Development Commission with City Council objectives to
accomplish Strategic Plan
a) Integrate City Long -Range Plans Into Citywide Strategic Plan
b) Assist Appointed Boards and Commissions
c) Form Five Community "Links" to Improve Public Communication
d) Empower Work Groups to Focus on Specific Tasks
e) Partner with Community Organizations
2009 Provide Quality Services with an Efficient Organization
a. Practice the 5 Cs with Our Diverse Customer Base
b. Respond to City Council with Thorough Analysis and Support Boards & Commissions
c. Accurately Forecast Finances and Manage Investments Wisely
d. Consolidate Departments and Become More Efficient with Technology
e. Partner with Community Organizations and Regional Agencies
Proposed 2011: Provide Quality Services with an Efficient Organization
a) Practice the 5 C's (Commitment, Customer Service, Courtesy, Communication,
and Collaboration) with Our Diverse Customer Base
b) Respond to City Council with Thorough Analysis and Support Boards &
Commissions and Communicate Important Information with the Community in a
Transparent and Timely Manner
c) Prepare Effective Budget, Accurately Forecast Funding Sources, Manage
Investments Wisely, Provide Consistent Financial Reports, Maintain Clean
Audits, and Report on District Sales Tax
d) Consolidate Departments and Become More Efficient with Technology
*CALIFORNIA
NATIONAL Carr
\- +NCORPORATC'
Strategic Objective 2 and Proposed Actions
2007 Achieve Fiscal Sustainability
Use redevelopment to attract diverse revenue generating projects, leverage financial incentives such as
tax -credits, and maximize funding sources such as grants
a) Open Plaza Bonita Expansion and Costco
b) Create Grants Division and Aggressively Seek Funding Sources
c) Complete Maximus Fee Study and Implement Impact Fees to Have Growth Pay for Growth
d) Begin Sycuan/MRW Hotel and Develop Marina Gateway
e) Continue Pursuing Home Depot/PSI and Develop Site
2009 Achieve Fiscal Sustainability
a. Work with Qualified Builders on Key Development Opportunities
b. Pursue Our Legislative Platform, Build Grants Division and Aggressively Seek Funding from
Local, State, & Federal Sources (Economic Stimulus)
c. Establish Sustainable Compensation Agreements and Contain Costs
d. Open Hotel & Marina Gateway and Execute Fair Share Agreement with the Port District
e. Retain and Attract Businesses and Develop Community Financing Districts
Proposed 2011: Achieve Fiscal Sustainability
a) Support Business with Outreach, Attraction, and Retention Program in
Partnership with National City Chamber of Commerce
b) Work with Qualified Builders and Developers on Key Development Opportunities
where Site Control is Attainable
c) Partner with Community Organizations and Regional Agencies to Pursue Our
Legislative Platform and Aggressively Seek Funding from Local, State, & Federal
Sources
d) Communicate Financial Position Consistently and Transparently to Help
Establish Effective and Sustainable Compensation for Employees.
CALIFORNIA
NATIONAL CITY
INCORPORATED
Strategic Objective 3 and Proposed Actions
2007 Improve Quality of Life
Build and maintain facilities and activities that support community needs and ensure that they are
serving the people and families of National City
a) Extend Hours at Community Facilities
b) Conduct a Demand Study and Formulate a Strategic Plan for Community Facilities and
Activities, including Family Activities such as Movies in the Park.
c) Develop Art and Culture District including Playhouse and Arts Center
d) Build Aquatic Center
e) Support City Parks and Open Space such as Paradise Creek Educational Park
2009 Improve Quality of Life
a. Provide Community Services/Programs and Maintain Public Facilities
b. Complete Open Space Assessment and Create Parks Improvement Plan
c. Build Aquatic Center, Granger Park, and Improve Public Access to Our Bayfront
d. Preserve Historic Resources and Promote Cultural Assets
e. Create Climate Action Plan and Adopt Realistic Green/Clean Policies
Proposed 2011: Improve Quality of Life
a) Continue to Provide Recreational Programs and Community Services
b) Maintain Existing Parks and Public Facilities and Find Funding to Construct
Park Master Plans
c) Partner with the Port District to Build Aquatic Center, Granger Park, and Improve
Public Access to the Harbor District
d) Preserve and Promote Historic Resources and Cultural Assets
CALIFORNIA -rt*
NATIONAL CI'
( 6
INCORPORATED
Strategic Objective 4 and Proposed Actions
2007 Utilize Community Resources
Engage, educate, and empower the community by improving communications and building programs
that leverage the efforts of residents and businesses
a) Reinstitute Neighborhood Watch Program and Coordinate with Neighborhood Councils,
Expand Security Camera Program, and Implementation of Red -Light Cameras
b) Begin Offering Wi-Fi Internet Access and Launch Interactive User -Friendly Website for the
City
c) Utilize and Market Enterprise Zone Tax Incentives
d) Support Community Benefit Districts
e) Work with Local Schools to Empower Youth for Community Change
2009 Utilize the Community's Natural, Financial, and Human Resources
a. Bridge the Digital Divide and Provide Access to Information for Everyone
b. Conserve Natural Resources and Maintain the Build Environment
c. Recruit Volunteers and Offer Opportunities for Community Service
d. Develop Urban Farm and Community Garden Master Plan
e. Create Community Magnets for Information and Resources
Proposed 2011: Utilize Community Resources
a) Help Coordinate Volunteer Efforts with Local and Regional Partners to Support
City Programs and Neighborhood Action Plans
b) Bridge the Digital Divide and Provide Access to Information for Everyone
c) Partner with SDG&E and the Sweetwater Water Authority on Conservation
Efforts
d) Develop Projects and Plans that Emphasize Natural Waterways such as the
Paradise Creek and Sweetwater Channel
-.-. CALIFORNIA
NATIONAL�C�ITV
Strategic Objective 5 and Proposed Actions
2007 Focus Long -Range Planning Efforts
Manage land use plans by drafting one specific or master plan at a time. Continue implementing and
studying impacts of other plans concurrently
a) Implement Downtown Specific Plan Through Establishing Market Supported Values
b) Complete Westside Specific Plan and Analyze Comprehensive Implementation Strategy
c) Form Strategic Alliance and Initiate the Bayfront Master Plan
d) Address Land Use Code and Prepare for General Plan Update
e) Work Toward a Comprehensive Transportation Strategy
2009 Focus Long -Range Planning (Comprehensive General Plan Updates)
a. Use Smart Growth Principles to Update General Plan, Land Use Code, and Zoning Map
b. Work with SANDAG on General Plan Update and Initiate Other Regional Alliances
c. Integrate Specific Plans and Make All Long -Range Planning Documents Consistent
d. Complete Needs Assessment, Financial Capacity Analysis, and Establish City Priorities
by Adopting 5-year Capital Improvement Program
e. Promote Community Outreach and Encourage Citizen Participation
Proposed 2011: Nearly Complete- Opportunity for New Objective or Implement
a) Promote Community Outreach and Encourage Citizen Participation
b) Establish City Priorities by Adopting 5-year Capital Improvement Program and
Fund Based on Financial Capacity Analysis
c) Utilize General Plan and Other Long-range Planning Documents as Capital
Needs Assessment
d) Consider Bond Issuance Based on Capacity Analysis to Fund Program
-}-^ CALIFORNIA,
NATIONAL CITY
��COHPOHATED
Strategic Objective 6 and Proposed Actions
2007 Improve Housing Conditions
Continue providing housing opportunities at all income levels and develop programs to improve existing
conditions
a) Adopt Housing Element as a 5-year Housing Plan
b) Implement Home Ownership Assistance Programs
c) Develop Affordable Housing by Leveraging 20% TIF Set Aside, HOME Funds, and Other
Affordable Housing Funding Financing Programs
d) Consider Compatibility of Residential with Other Land Uses, Carry Out Amortization
Ordinance Efforts for Westside
e) Advance Housing Inspection Program for Rental Properties and Inform Landlords Through
Property Owner Workshops
2009 Improve Housing Conditions
a. Update Housing Element and HUD Consolidated Plan as a 5-year Housing Strategy
b. Develop and Rehabilitate Decent & Affordable Housing
c. Work with Residents and land Owners to Create Healthy Neighborhoods
d. Extend Housing Inspection Programs and Eliminate Duplication
e. Encourage Investment and Home Ownership with Programs and Competitive Fees
Proposed 2011: Improve Housing Conditions
a. Update Housing Element before 2013 Deadline based on New RHNA
b. Secure Funding to Begin Construction on Paradise Creek WI-TOD
c. Complete Design and Find Funding for Senior Village Expansion and
Enhancement
d. Extend and Expand Housing Programs that Demonstrate Results, Initiate
Amortization Efforts, and Correct Residential Code Violations
CALIFORNIA �-
NATIONAL CITY
:3`l
INCOHPOHAT SO
Strategic Objective 7 and Proposed Actions
2007 Make an Impact
Revitalize neighborhoods and strengthen community appearance by investing directly into efforts that
make an immediate impact on the community
a) Inform the Community Regarding Code Assistance and Graffiti Abatement Efforts and
Encourage Compliance
b) Invest in Infrastructure and Aging Public Facilities Identified by Community Priorities
c) Continue Neighborhood Clean Ups and Initiate Annual Spring Cleaning
d) Develop a Neighborhood Revitalization Toolbox
e) Support Public Art and Initiate Percent for Public Art Program
2009 Show Measured Results in Health and Safety
a. Implement Public Safety Long Range Strategic Plans
b. Align Neighborhood Services and Law Enforcement
c. Model Quality of Life Indicators and Track Performance
d. Maintain Senior Nutrition Center and Develop Programs for Seniors
e. Foster Safe, Clean, and Healthy Neighborhoods
Proposed 2011: Show Measured Results in Health and Safety
a. Implement Public Safety Long Range Strategic Plans and Enhance Disaster
Preparedness
b. Align Neighborhood Services, Community Services, and Law Enforcement to
Continue making National City Safer
c. Expand CERT, Community Defibrillators, and Other Grant Supported Programs
d. Maintain Senior Wellness Programs such as the Nutrition Center and RU-OK
-4- CALIFORNIA
NATIONAL CIT)
+NCORPORATB
Strategic Objective 8 and Proposed Actions
2007 Promote Community Assets
Build image of the City by distinguishing important community assets and marketing them to the region
a) Identify Landmarks and Offer Incentives and Cultivate Plan for City -owned Historic and
Cultural Resources
b) Develop City Branding and Update Comprehensive Signage Program
c) Create Informative Materials and Launch Marketing Campaign
d) Encourage Public Uses and Family -oriented Special Events on the Bayfront
e) Develop and Implement Green Building and Development Policy
2009 Partner with Schools
a. Align Neighborhood Councils with School Site Councils
b. Link Farms/Gardens Program to Schools and Promote EBT
c. Promote Fire Prevention and Maintain School Resource Officers
d. Utilize New Public Library and Enhance Access for Youth with W.I.N.G.S.
e. Work with Local School Districts on Bond Program and Coordinate SR2S
Proposed 2011: Partner with Schools
a. Work Together to Engage Community by Utilizing Community Service Hours and
Providing Important Information to Families
b. Provide Better Access to Joint -use Parks, Utilize New Public Library and
Continue Improving Safe Routes to School.
c. Work with ICF and other Partners to Expand Urban Agriculture and School
Garden Program
d. Promote Fire Prevention and Maintain School Resource Officers
*- CALIFORNIA
NATIONAL CITY
CIT r
'RCORPORATII°
Strategic Objective 9 and Proposed Actions
2007 Build on Success
In the City's continued efforts for positive change, it is important to recognize our successes and build
on them
a) Develop Business Attraction and Retention Program and Create Toolbox to Assist Small
Businesses
b) Draw Attention to Important Gateways and Intersections
c) Plan and Highlight Family -oriented Special Events to Promote Accomplishments
d) Develop Comprehensive Storefront Renovation Strategy to Concentrate Facade Program
on Identified Focus Areas and Community Landmarks
e) Continue to Cultivate Neighborhood Councils
2009 Build On Success
a. Communicate Important Information with the Community in a Transparent Manner
b. Heighten Our Image by Preserving Cultural Assets and Supporting Community Events
c. Continue to Improve our Infrastructure and Public Facilities
d. Update Signage to Draw Attention to Important Gateways, Corridors and Intersections
e. Continue to Build Our Financial Stability and Provide Quality Services
Proposed 2011: Build "A National City"
a. Continue to Maintain and Improve our Basic Infrastructure such as Streets,
Sidewalks, Sewer, Stormwater, and Lighting.
b. Improve Community Corridors, Focus Improvements in Established Commercial
Districts, and Support Major Retailers.
c. Update Signage to Draw Attention to Important Gateways, Corridors and
Intersections
d. Support Community Events and Celebrate City's 125th Anniversary in 2012
EXHIBIT 'C'
-,- CALIFORNIA
ATI AiAL CHry
Il3V7 �
INCORPORATED
Capital Improvement Program
Fiscal Years 2010-2015
Introduction
The Capital Improvement Program, or CIP, is a five-year planning instrument used to identify and
coordinate the financing and timing of public improvements. The first year of this five-year
program is the capital budget that appears in the annual budget. By considering all the projects
at a single time, a more comprehensive view can be taken of the community's capital needs and
the City's response. Projects slated for subsequent years in the program are for planning
purposes only and do not receive expenditure authority until they are allocated funding in a
future capital budget approved by City Council. The CIP addresses major public facility
improvements for the purpose of repairing, replacing or constructing new portions of the City's
physical infrastructure system; such as streets, sewers, buildings, parks, street lights and storm
drains and redevelopment. The CIP Committee reviews capital improvement suggestions from
both the community and City departments on a yearly basis.
The goals of the Capital Improvement Program are to plan for the City's long term capital
improvement needs and associated capital financing requirements. The program provides the
means for the City Council to determine capital priorities and a means to carry them out.
Categories
CIP projects are categorized by project type; Facilities, Redevelopment, Park & Recreation,
Infrastructure, and Information Technology.
Infrastructure includes such general purpose assets such as streets, storm drainage, sewer
lines, street -lighting, traffic signals, sidewalk, and curb & gutters.
Facilities include city offices, warehouses, police & fire stations, community centers and other
public -purpose structures.
Information Technology includes items that are large or costly, including computers,
communications equipment (e.g., telephones and emergency communications). In some
case computer software may be considered.
Administration
The CIP projects are administered by the Engineering Division of the Development Services
Group. Prior to submitting a request to the CIP Committee, the City Engineer is responsible for
determining if a project qualifies as a project for the program. If a project is determined to be an
ineligible project by the City Engineer, the project proponent has the option of taking the request
to the CIP committee for review. A capital project is defined as an undertaking wherein labor
and/or materials are used to construct, alter, append or replace a building or an item of
infrastructure or a component of a building or an item of infrastructure. Capital Project that has a
specific objective, is easily distinguishable from other work being performed, has a definite
beginning and end, does not occur annually (non -routine), and typically has a total cost in excess
of $100,000 and the expectant life is 10 or more years. Not considered as a capital project is
routine maintenance, for example, the periodic scheduled renewal of finishes or the replacement
of minor components or equipment. These items are sometimes considered a capital
expenditure - Charges for the acquisition of equipment, land, building, or improvements of land
or buildings, fixtures, and other permanent improvements with a value in excess of $5,000 and a
useful life expectancy of more than one year. Capital Expenditures are administered by the
responsible department. The City Engineer shall have responsibility and accountability for
implementation of all City of National City capital projects, including redevelopment projects. For
2 of 9
each capital project, there shall be a single delegated project coordinator, designated by the City
Engineer, who has delegated responsibility and accountability for the implementation of the
project. The project coordinator shall have full information about the project and shall be
responsible for its successful implementation. Each project shall be individually identified with a
title, a project number that is recognized by the City's automated financial system and a
specification number.
Proiect Priority Ranking
The CIP Committee members apply the City Council's criteria for establishing the priority for CIP
project. Each project is evaluated and weighted based on the criteria below:
Health. Safety, & Regulatory Requirements (40%) — These include Seismic regulations, ADA,
NPDES, Department of Health and other State or Federal Mandates, these have a high
consequence for failure to complete (unsafe roads, people could get hurt, legal
consequences).
Cost and Funding Opportunities (20%) — Return on investment from grants, considers grant
deadlines, fund availability, ratio of grant funds to total project cost, considers staff time to
administer grant requirements.
General Plan Compliance and Community Support (10%) — stimulation of local economy,
public pressure and direction, possibly identified through a survey, promotes neighborhood
livability.
Multiple Category Benefit (10%) — Projects that support multiple categories (for example
street, safety, pedestrian improvement, and drainage) would get a higher ranking.
Maintenance Needs (10%) — Projects that require high or new maintenance costs score
lower, projects that preserve existing assets and reduce maintenance costs score higher.
Readiness and Deliverability (10%) — Degree to which a project is close to completing a
specific phase, work done to date that would be lost if project is deferred.
Funding Sources and Uses
CIP projects can be funded by grants, bond or other debt instruments issued, special
assessments on property owners benefiting from the improvement, current taxes, development
impact fees and the City's reserves.
001 - General Fund: is the primary operating fund of the City. It accounts for all financial
resources not required to be accounted for in a special purpose fund, and finances operations for
funds that do not have adequate dedicated revenues, such as the Library, Parks Maintenance,
and Nutrition Center Funds.
103 — General Capital Outlay Fund: This fund is used to account for funds set aside from the
proceeds of sale of and rental from, surplus real property for the City's five-year capital
improvement program.
3 of 9
109 - Gas Taxes Fund: Cities are allocated a share of the revenues derived from the State taxes
on gasoline to be used exclusively for street improvement and maintenance. The four types of
gas taxes are described below. Revenue estimates are based on the League of California Cities
Budget Bulletin and on historical trends. Under Section 2105 of the Streets and Highways Code,
cities receive an amount equal to the net revenues from 11.5 % of the highway users tax in
excess of the $.09 per gallon allocated based on population. The FY10 estimate is $343,000.
Under section 2106, each city receives a fixed apportionment of $400 per month plus an
additional per capita amount after counties are allocated their portion of the overall base. The
FY10 estimate is $227,000. Under section 2107, cities and counties receive a monthly allocation
equivalent to $0.00725 per gallon per capita. The FY10 estimate is $455,000. Under section
2107.5, cities receive a fixed annual amount based on population, ranging from $1,000 for cities
with a population of less than 5,000 to $20,000 for cities with populations over 500,000. National
City's allocation is $7,500. Interest earnings equivalent to the ratio of Gas Tax Fund cash
balances to the total pooled cash balances are required to be allocated to this fund.
115 — Parks and recreation capital outlay fund: This fund is used to account for revenues from
dwelling fees set aside for capital improvement expenditures of the Parks and recreation
department.
125 - Sewer Service Fund: This fund is used to account for the construction and maintenance of
City sewers. The primary revenue source is sewer service charges. Beginning in 2003, the City
began charging for sewer services on the property tax statements sent by San Diego County;
however, some properties are unique and require individual billing by the City. The FY10 estimate
of $7.1 million is the total of the property tax assessments and individual billings.
301 - C.D.B.G. Fund: The C.D.B.G. (Community Development Block Grant) Fund is used to
account for activities related to the annual grant from the Department of Housing and Urban
Development. The purpose of the grant is to assist with developing viable urban communities by
providing decent housing and a suitable living environment and by expanding economic
opportunities, principally for low and moderate income persons.
307 - Proposition "A" Fund: This fund is used to account for allocations received from the 1/2%
transactions and use tax imposed by Proposition "A" (San Diego Transportation Improvement
Program Ordinance) originally passed by the voters in San Diego County in November 1987 and
renewed by voters in November 2004. These funds are restricted for construction of
transportation infrastructure projects. In order to receive these funds, the City must spend local
discretionary funds for transportation infrastructure projects in an amount not Tess than the
average expenditures from FY 01-03, adjusted every three years by the Caltrans Construction
Cost Index. In FY09, the City entered into a five year Commercial Paper loan with SANDAG. This
Commercial Paper loan allowed the City to receive five years of future SANDAG (locations in
advanced to fund street projects throughout the City. The FY10 estimate is a one time funding of
President Obama's stimulus package. Future allocations of Proposition "A" funds will be used to
pay the debt service on the loan.
312 STP Local Transnet Highway Fund: this fund is used to account for funds received from the
San Diego Association of Governments (SANDAG) for TransNet projects.
323 Safe Routes to Schools Grant
325 Development Impact Fees Fund
326 Transportation Development Impact Fee Fund (TDIF)
4 of 9
345 Traffic Congestion Relief Fund; This fund is used for the maintenance, rehabilitation and
reconstruction of transportation related Capital Projects; specifically pertaining to local streets
and roads
346 - Prop 1B Fund
511 - Tax Increment Fund: This fund is used to account for the City's redevelopment and
economic development programs. The goal of these programs is to create vibrant, sustainable
districts by eliminating blighted appearance through strategic planning and implementing
revitalization programs in targeted areas. It is funded through a transfer of tax increment
revenues from the CDC Debt Service Fund.
629 - Information Systems Maintenance Fund: This fund is used to account for the costs
associated with maintaining the City's technology infrastructure. Costs are allocated based on the
number of personal computers assigned to each division.
630 - Office Equipment Depreciation Fund: This fund is used to account for the replacement of
computer hardware and software. Costs are allocated based on the number of personal
computers assigned to each division.
631 - Telecommunications Revolving Fund: This fund is used to account for the costs of
maintaining the City's telephone system. Costs are allocated based on the number of telephone
lines utilized by each division.
103 capital
1 Outlay
�' 303 Capital
Facilities
110
Emergency
Prepardness
Fund
115 Park&
Rec Capital
Outlay Fund
304 Park
Development
Fund
629
Information
system
Maintenance
Fund
630 Office
Depreciation
\ Fund /
196 Capital
Project
Reserve Fund
71-89 Civic
Center
1 Refurbishing
t\ Fund
Funds that are funded by General Fund
631 Tele
Comm fund /
5 of 9
Capital Improvement Program
Fiscal Year 2010-2011
1st Year Budget for Capital Projects
001 General Fund
Traffic Signal Timing/ Fiber Optic Interconnect System 50,000
Traffic Monitoring / Safety Enhancements 100,000
Bicycle Master Plan (Grant Match) 15,000
8th & D Round -a -bout (Grant Match) 125,000
109 Gas Tax Fund
Traffic Signal Timing/ Fiber Optic Interconnect System 100,000
Traffic Monitoring / Safety Enhancements 50,000
296 Eng Grants
Bicycle Master Plan (Grant)
301 CDBG Fund
35,000
El Toyon Soccer Field 150,000
Concrete Improvements 250,000
Safety & Accessibility Enhancements at Pedestrian Crossings 100,000
Drainage Improvements 100,000
307 Prop A Fund
Plaza Blvd Widening
Street Resurfacing Project
323 Safe Routes to School
974,000
1,500,000
8th & D Round -a -bout (Grant) 500,000
631 Telecommunications Revolving Fund
Unified Messaging VOIP ??
Un-funded
Renovate Fire Station #31 15,000
Civic Center /EOC Retrofit ??
Las Palmas Pool Electrical Room 62,500
3rd Fire Station 104,995
MLK foundation (slab) & flooring 187,500
Total $
6 of 9
Capital Improvement Program
Fiscal Year 2010-2011
5 Year Proposal for Capital Projects
Prof
#
Project
Description
Funding
FY 09-10
Budget
FY 10-11
Budget
FY 11-12
Budget
FY 12-13
Budget
FY 13-14
Budget
FY 14-15
Project Total
1409
Renovate Fire
Station #31
15,000.00
85,000
415,200
515,200
1575
Civic Center /EOC
Retrofit
-
3918
8th St Smart
Growth
2,200,000
300,000
2,500,000
4076
Soccer Field
605,000
150,000
755,000
4129
Las Palmas Pool
electrical Room
Upgrage
50,000
62,500
62,500.00
6137
Concrete
Improvements
11,000
435,400
300,000
300,000 •
300,000
300,000
1,646,400
.
6565
Traffic Signal
Timing / Fiber Optic
Interconnect
System
150,000
150,000
6569
Plaza Blvd
Widening
3,735,300
200,000
200,000
174,000
200,000
200,000
4,709,300
6573
Traffic Monitoring /
Safety
Enhancements
150,000
150,000
6575
Safety &
Accessibility
Enhancements at
Pedestrian
Crossings
95,000
100,000
195,000.00
8003
Unified Messaging
VOIP
-
6035
6102
Street Resurfacing
Project
2,000,000
2,000,000
1,500,000
1,500,000
1,500,000
8,500,000
7062
7049
Drainage
Improvements
435,000
100,000
550,000
550,000
550,000
550,000
2,735,000
TDA/TransNet
Grant - City Bicycle
Master Plan
50,000
50,000
3rd Fire Station
104,995
349,981
5,219,774
5,674,750
MLK Slab/Flooring
187,500
State SR2S Grant
- Roundabout at D
Ave & E. 12th St
625,000
625,000
Totals
7,131,300.00 4,630,394.60 3,547,481.00 8,158,974.40 2,550,000.00 2,550,000.00 28,205,650.00
7 of 9
Fiscal Year 2010-2011
Capital Expenditures
Proj
#
Project Description
Funding
FY 09-10
Budget
FY 10-11
Total
Project
No
funding
source
identified
El Toyon Lower Ball field Lighting
25,000
25,000
1179
Case de Salud Roof (West side and interior wall
paneling)
15,000
37,500
52,500
37,500
1180
Kimball Recreation Center Roof (R/R shake & tongue
and groove sub -roof, and interior ceiling
20,000
75,000
95,000
75,000
1590
Library Flooring
10,000
75,000
85,000
75,000
4023
Las Palmas Pool Deck Drains
30,000
44,000
74,000
44,000
Las Palmas Pool Mechanical Room Roof
25,000
25,000
25,000
Camacho Gym Rooftop A/C
25,000
25,000
25,000
Casa De Salud lighting/Signage
-
Casa De Salud Rooftop A/C
10,000
10,000
10,000
Civic Center Finance & 2nd Floor Ceiling Tile
Replacement
18,750
18,750
18,750
Civic Center Roof electrical panels and gutters on
roof used for air handlers. Remove & replace 8 and
install 2 new, 1,000 watt lights
50,000
50,000
50,000
El Toyon Main Hall Flooring
10,000
10,000
10,000
El Toyon Parking Lot Lighting
12,500
12,500
12,500
Kimball Park electrical Monument (6)
50,000
50,000
Kimball Park Transformer & Enclosure upgrade
12,500
12,500
Kimball Recreation Center Air Handlers, Furnaces
and Ducts
37,500
37,500
37,500
Kimball Recreation Center Flooring
12,500
12,500
12,500
Kimball Senior Center Flooring
10,000
10,000
10,000
Las Palmas Pool Deck Security System
15,000
15,000
15,000
Las Palmas Pool Tarp
20,000
20,000
Police Department 1st floor carpet replacement
22,500
22,500
22,500
Police Department Exterior Paint
25,000
25,000
25,000
Recreation Center Door replacements (El Toyon,
Camacho & Kimball)
31,250
31,250
31,250
Replace Cabinets/Counter at Camacho
-
-
Sports Court Resurfacing
20,000
20,000
20,000
Center Fire Suppression System
180,000
180,000
180,000
Offsite Disaster Recovery
-
-
Storage Facility for Reserve Engines
13,000
13,000
13,000
Totals 75,000.00 857,000.00 824,500.00 857,000.00
8 of 9
Glossary
Allocation
Appropriation — Legal authorization to make expenditures or enter into obligations for specific
purposes
Budget reserve — money accumulated in special accounts for future purposes — for example, to
deal with unforeseen circumstances or to replace buildings or equipment.
Capital budget - a spending plan for improvements to or acquisition of land, facilities, equipment,
and infrastructure.
Capital Expenditure — Charges for the acquisition of equipment, land, building, or improvements
of land or buildings, fixtures, and other permanent improvements with a value in excess of
$5,000 and a useful life expectancy of more than one year
Capital Project - An undertaking wherein labor and/or materials are used to construct, alter,
append or replace a building or an item of infrastructure or a component of a building or an item
of infrastructure. Capital Project that has a specific objective, is easily distinguishable from other
work being performed, has a definite beginning and end, does not occur annually (non -routine),
and typically has a total cost in excess of $100,000 and the expectant life is 10 or more years
Concept — Submitted projects for consideration
Contracted (obligated) — when agreement is executed and funds are encumbered
Committed — (Grant Match) when grant application is executed
Completed — when Notice of Completion is filed with San Diego County Recorder's Office
Encumbrance (Obligation) — a set aside for when a purchase order or contract is approved. An
encumbrance represents a contingent liability of the fund.
9 of 9
EXHIBIT 'D'
DRAFT
Executive Summary: Proposition "D" Transaction and Use Tax
This draft report is submitted in advance of convening the Proposition "D" Independent
Committee pursuant to Ordinance No. 2006-2278.
Proposition "D" was passed by 59% of voters on June 6, 2006. The measure increased the
local sales tax one percent from 7.75% to 8.75% for a period of up to ten years. Passage of
Proposition "D" allowed for the restoration of City services to the community for the duration
of this period while replacement and/or additional revenue streams are identified and
implemented.
• Does not apply to medicine, non -prepared food (groceries), rent, mortgage, or utilities.
Does not apply to cars, planes, motorcycles and boats unless you are a National City
resident (per State law)
Why is National City Struggling Financially?
As the City prepared its annual budget for fiscal year 2004-2005, a $4 million structural deficit
in the General Fund was projected. The General Fund pays for basic City services, such as
police, fire, parks, library, code enforcement, graffiti control, and planning, among other
things. It is key to note that other City funds such as Street, Sewer and Transportation were
fiscally solid; however, such funds are "dedicated" funds and not available for General Fund
purposes. Likewise, for the same reason, Community Development Commission funds
cannot be used for such purposes. Over a two-year period, financial information was shared
openly and consistently with residents and the business community.
A significant portion of the deficit was due to circumstances beyond the control of the City.
The State of California was in the midst of a fiscal crisis, which resulted in increased take-
aways from local governments. National City lost over $2 million in FY 2005-06 alone. Also,
during this same period, CaIPERS, through which the City provides retirement benefits to
Police, Fire and other employees, also watched their investments plummet and in turn,
increased agency assessments. During this time, National City was hit with a $5 million
increase in our CaIPERS rates. The City Council chose to pay the rates in full, as opposed to
other agencies that chose alternate methods of financing their increased rates. We were also
contractually obligated to honor a 2002 negotiated enhanced employee benefits contract from
2002 with CaIPERS and three employee unions.
National City has unique financial constraints. The City is small in area with just 8.5 square
miles and is almost completely built out, so new development can't substantially boost
revenues. The City's industrial waterfront and its associated revenues are under the
jurisdiction of the San Diego Unified Port District, with little benefit to the General Fund.
National City levies no utility user tax and property turnover is the second slowest in the
county, so property tax revenues are relatively stagnant.
Page 1 2/7/2011
DRAFT
The 2005-2006 budget was $6.7 million out of balance before the City closed the gap with
reserves and other one-time revenue sources. The majority of that imbalance was again due
to state take-aways and pension obligations. As a temporary measure, City services were
cut by 20% across the board for a savings of $984,000 and a hiring freeze was instituted
affecting 51 General Fund positions in 13 departments, including 17 police and fire
personnel. Policy direction was sought to deal with the structural deficit. The challenge was
to either decrease services or find a way to increase revenues. For a long-term solution, the
City Council directed staff to look for the fairest way to increase revenue. The recommended
solution was an increase in the sales tax as both residents and visitors to the City would
share the burden, as opposed to property, parcel or utility user taxes that would only apply to
residents. The sales tax would not affect prescription medicine, groceries, or rent, thereby
giving some reprieve to the City's lower income population.
The City Council then twice voted unanimously to place the measure on the ballot.
Proposition B failed in November 2005, while Proposition D, this time with a ten-year sunset
clause, passed in June 2006.
Despite the passage of Proposition D, subsequent City budgets have continued to close with
structural deficits ranging between $3 - $7 million. The deficits have been filled through one
time funding transfers, reductions in departmental expenditures, not filling vacant positions
and utilizing contingency reserves.
Where is National Citv Today?
National City is weathering the worst economic climate since the Great Depression. Negative
fiscal impacts have been felt globally, nationally, regionally and locally. Car and lumber sales
have significantly decreased which directly impacts National City's revenues. While the
Bradley Burns Sales Tax has been steadily declining going from a high of $16.5 million in
2004 to a low of $8.7 million in 2010, the District Sales Tax has been stable and funds
continue to be segregated. The $7 to $9 million projection is on target as shown below.
$18,000,000 — $16.5
$16,000,000 — $14.9 $13.7
$14,000,000 — $14.7 $11.9 $11.8
$12,000,000
$10,000,000 - $9'1 $8.7 $8'9
$8,000,000 - 1 1
$6,000,000 — $8.5 $8.1 $7.9 $8.1
$4,000,000 --,_Sales Tax
$2,000,000 ---District Tax
$0 I 1 1 1 1 1 1 I
2003 2004 2005 2006 2007 2008 2009 2010 2011
$5.9
Page 2 2/7/2011
DRAFT
National City is in good financial condition despite the difficult times. The City continues to
receive clean financial audits and its Standard & Poors rating remains at A. We continue to
pursue revenue enhancements and diversity, have limited General Fund debt and bonding
capacity is available for the CDC. The City Council's stated priority of Fiscal Sustainability is
being achieved through cost containment, efficiency, revenue growth and diversity, building
reserve levels, reviewing our retirement obligations and implementing new employee
contribution programs, 10-year financial trending, conservative forecasting and completed
audits as required by law with minimal findings, and assuming limited debt.
Prior to the passage of Proposition D, several Council and Administrative actions were taken
to assist in balancing the budget, attain fiscal sustainability, and provide for efficient and
transparent government. An employee -driven committee was established to brainstorm
ideas to reduce internal costs. The Cost Reduction and Revenue Efficiency (C.A.R.E.)
Committee publishes quarterly newsletters to encourage voluntary participation in such
endeavors. The C.A.R.E. Committee also solicited cost saving ideas from all City employees
which resulted in approximately 900 suggestions, many of which have been implemented or
are under review. The Purchasing Review and Position Review Committees were
established to affirm fiscal responsibility in purchasing and hiring practices.
In 2006, the City Council directed that the previously independent redevelopment agency be
under the City Manager. The merger resulted in the elimination of redundant managerial
positions, which along with the flatting of executive and management positions from City
departments, has resulted in additional savings.
The City of National City continues to make significant strides. In an effort to maximize the
cost savings for the City and minimize the impact to the community, the City has improved
efficiency and taken new and innovative steps to cut costs, increase and implement new
programs, and actively seek grant funding. The citizens voted on Proposition D with a focus
on public safety and quality of life, and in particular the Library.
At the City Manager's direction, departments were requested to provide information on what
National City has done since Proposition D's passage in 2006 with an emphasis on
significant accomplishments and programs, cost cutting measures and revenue
enhancements. This information is provided as backup and a sampling of these efforts
follows.
Significant Accomplishments:
Public Safety
The City Council's commitment to public safety, despite difficult fiscal challenges, has allowed
the police and fire departments to continually make significant strides in improving service to
our residents. By aggressively seeking grants, new and technically advanced vehicles and
equipment has greatly reduced the impact on the General Fund. Safety has continually
improved since 2006 as can be seen in the accomplishments that follow.
Page 3 2/7/2011
DRAFT
A. Police Department:
• Crime rate has dropped twenty-five percent since 2006
• Zero DUI traffic fatalities since 2006
• 14 months without a single homicide (2008-09)
• Public Safety Cameras installed at key locations (2006)
• Hiring of 5 additional police officer positions was approved by City Council (2008)
• 22 vehicles added to the City's fleet totaling $619,000 obtained through grant and
asset seizure funds (since 2006)
• Received $354,079 grant/asset seizure for a state -of -the art Mobile Command
Vehicle (2008)
• Police Storefront opened at Plaza Bonita Mall (2009)
• Homeless Outreach Prevention & Enforcement (HOPE) Grant for $95,000 (2010)
B. Fire Department:
• New $7.2 million award winning, state-of-the-art Fire Station
• Improved emergency response times and enhanced level of medical first
responders
• Paramedic/Firefighters on all shifts and companies
• New Aerial fire truck added to our fleet at a cost of approximately $1 million of
which $248,456 is in grant funding (2009)
• Lower Sweetwater Fire Board agreed to purchase National City a new $513,880
fire engine at no cost to the City
• First Community Emergency Response Team (CERT) Academy — grant funded
Quality of Life:
The Mayor and City Council have emphasized improving the quality of life in National City by
investing in the community. During the last six years, millions of dollars in grants and other
alternate funding sources were secured to build and/or refurbish a variety of civic buildings
including a new fire station, public library, pool, education center, marina and aquatic center;
and a refurbished art center.
Page 4 2/7/2011
DRAFT
C. Public Library
The National City Public Library has implemented new programs, making it a thriving
community place buzzing with activities, where residents from all walks of life can come every
day to learn, use resources, or simply enjoy programs. Despite budget reductions, the
Library continues to offer high quality service and best of all, at no cost to our patrons.
• $19 Million award winning, state-of-the-art Public Library, funded by General
Obligation Bonds, Prop 14, tax increment and public and private funds
• In 2009, the National City Public Library was named one of 15 California "American
Star Libraries"
• In 2010, the National City Public Library was named one of 16 California "American
Star Libraries"
The City Council's priorities of public safety and quality of life were able to be met as a
result of Proposition D revenues. Significant achievements were achieved in the
delivery of critical services and programs, technology and communication as can be
seen below.
D. Community Services
National City prides itself in providing high quality facilities, services and cost effective
programs which enhance the quality of life and encourage healthy living for residents
enduring difficult financial times. We strive to provide excellent customer service and
planning for the City's open space and facilities, and celebrate the community's diversity
through social, cultural, and civic activities for youth, adults and senior citizens.
• Municipal pool renovation totaling $2 million (2007)
• Paradise Creek Educational Park totaling $1,600,000 (2007)
• New Skateboard park totaling $200,000 (2008)
• Park facilities renovation, including little league score shacks, park restrooms,
benches) totaling $1.2 million (2009)
• Senior Nutrition Center construction/walk-in freezer project completed (2010)
• El Toyon Multi-Use/Soccer field totaling $1 million (2011)
E. Information Technology
Technology is a strategic asset enabling City staff to meet the expanding needs of the City of
National City and its residents. The City has made significant strides in improving
Page 5 2/7/2011
DRAFT
communication both internally and externally. Interpretation and Translation Services are
provided at City Council meetings and City workshops and press releases and official notices
are routinely provided in English and Spanish. Technology, communication and branding
efforts have culminated into significant accomplishments as can be seen below.
• Citizen friendly revamped National City Website (2008)
• Library Wireless Access to the Internet for patrons (2010)
F. City Clerk/Records Management
• Coordinated update and adoption of City-wide Records Retention Management
Program and Records Retention Schedule. (2008)
• Webcasting provides live video streaming and archive of City Council and Planning
Commission meetings (2009)
G. Development Services
• Provided plan check and inspections for Plaza Bonita Mall expansion (2006)
• Highland Avenue Improvement Project (Phase I) 8th Street to 16th Street (2007)
• Utility Overhead Wire Undergrounding Project (2007)
• Use of Rubberized Asphalt Concrete (RAC) - National City recently began
utilizing RAC for its $14.5 million street resurfacing program. National City has
been one of the pioneers in San Diego County for the use of RAC and
continues to benefit from the long term cost savings of this product while
helping the environment. (2008)
• National City Boulevard Streetscape & Fountain Plaza (2008)
• Bay Marina Drive Widening Project (2009)
• Partnership with City of Chula Vista in the temporary hiring of Chula Vista
employees to serve as consultants on a number of construction projects for
National City
• Safe Routes to Schools Grant — Phase 2 (2010)
• Adoption of Westside Specific Plan (2010)
Page 6 2/7/2011
DRAFT
H. Redevelopment Division
• Received $2.1 million CIWMB grant for remediation of Marina Gateway site
(2005-2007)
•
• Remodel of former City Library for ILWU, Art Center and San Diego Repertory
Theatre (2009)
• Preparation for Westside Transit Oriented Development, a nationally significant
affordable housing/smart growth/environmental justice project (ongoing).
Acquisition of Granger Music Hall and Kimball Museum (2010)
• Received $200,000 EPA grant for Westside Area wide Assessment (2007-
2010)
• Received $130,000 EPA Brownfield Sustainability Pilot Grant for Westside
Transit Oriented Development — one of five grants awarded nationally. (2010)
I. Public Works Department
•
•
Replaced aging street sweeper with state -of -the art Regenerative Air Street
Sweeper which fully complies with air quality standards by decreasing
emissions, capturing and replacing contaminated air created during street
sweeping, and lowering the City's carbon footprint. (2009)
Consolidated Civic Center vehicle fleet and Public Works fleet into a single
vehicle pool resulting in overall savings in fuel and maintenance costs,
extending useful life of the fleet, lowering the City's carbon footprint and making
more vehicles available for City use. (2009)
• City Council authorized the purchase of four Hybrid vehicles to augment the
City's fleet, again lowering the City's carbon footprint (2009)
• National City was awarded an Energy Efficiency Conservation Block Grant in
the amount of $561,700 to replace a 40-year old chiller currently used for
cooling the Civic Center. (2009)
•
Comprehensive energy retrofit program to upgrade aging facilities which
includes but not limited to energy -efficient lighting, boiler and chiller
replacement, cooling tower, HVAC retrofit, solar thermal installation for
municipal pool, building automation system and streetlight retrofit. This will
lower operating costs and improve energy efficiency. Estimated savings for the
first year is approximated at $116,499. (2010)
Page 7 2/7/2011
DRAFT
J. Housing & Grants Division
• Established a First -Time Homebuyer Assistance Program (2010)
• San Diego Regional Enterprise Zone area expanded within the City of National
City to include 99% of all commercial businesses (2010)
K. Neighborhood Services
• 7-day graffiti abatement and code enforcement program (2008)
•
Graffiti Tracker Program commencement to help document and track graffiti
vandalism throughout the City that will assist in prosecution efforts leading to
cost recovery (2011)
L. Finance Department
• Consolidated the financial records of the Community Development
Commission's with the City's which created workload efficiencies. (2008)
• National City was awarded California Society of Municipal Finance Officers
Award for Outstanding Financial Reporting (2009)
• National City was awarded the California Society of Municipal Finance Officers
Award for Excellence in Operating Budget (2010)
M. Human Resources
•
•
An Employee Benefits Committee was formed with representatives from all
three labor unions, management, finance and retirees to review the overall
employee benefits package, specifically health and dental; to educate workforce
on issues that impact health care rates, and involve the employees in making
educated decisions on health care issues. (2008)
The implementation of the Online Job Application System provides a paperless
way to collect resumes, cover letters, contact details and other pertinent details
from applicants in electronic form and streamline the City's hiring process.
(2009)
• Managed four rounds of labor negotiations. (2006-2010)
Cost -Cutting and Efficiency Measures:
The City of National City is engaged in continuous improvement, streamlining the
organization to maximize efficiency and effectiveness, striking a balance between controlling
costs and meeting the needs of the community.
Page 8 2/7/2011
DRAFT
The City has been innovative in its approach to creating efficiencies and savings. Since
2006, the City has provided its employees with one-time stipends rather than salary
increases. Stipends allow for no retirement or ongoing impact to the City. In 2009, the City
unblended retiree health care from active employees which allowed for no increase in cost
benefits for that year. Additionally, in 2010, the City implemented a 40-hour Employee Work
Furlough Program which resulted in an estimated $135,441 savings in salaries and
approximately $12,000 in energy savings.
Consolidating and Restructuring Departments and Divisions:
The merging and restructuring of departments and divisions has allowed for streamlining
activities resulting in substantial cost savings by reducing the number of department
directors, eliminating duplicate and inefficient activities, providing cross training to staff,
where it is possible to reallocate resources where they are most needed and therefore
increasing the overall efficiency of the new department.
• 2006 City Council directed CDC merger under purview of City Manager
• 2008 The Building and Planning Departments were merged, eliminating a
department director position
• 2008 The Housing & Grants Division was created to better serve the
residents by addressing a variety of housing and community needs
• 2008 The Neighborhood Services Division was created with no new positions
added
• 2009 The Purchasing Division was consolidated into the Finance Department
eliminating a managerial position
• 2009 The Planning & Building Department merged with the Engineering
Department, eliminating a department director position
• 2010 The Parking Enforcement Program moved from the Police Department
to the Neighborhood Services Division with no new positions added.
• 2010 The Abandoned Vehicle Abatement Program moved from the Police
Department to the Neighborhood Services Division with no new
positions added.
Since 2008, 14 executive and management level positions have been eliminated through
consolidating and restructuring:
Page 9 2/7/2011
DRAFT
Managed Attrition:
As vacancies occur through normal attrition, non -essential positions have been frozen for
salary and employee benefits savings. In June, 2009, the City introduced an Employee
Voluntary Separation Program, an innovative hybrid, to create long-term salary and employee
benefits savings resulting in the separation of 24 employees.
To date, a total of 70 vacancies exist City-wide; of that number, 33 positions are frozen
and/or unfunded and 37 positions are vacant.
Pension Reform:
Employee contributions total approximately $587,000, including the increased contributions
effective July, 2011.
2006 No City employee contributed to their retirement.
2009 89% of City employees now contribute to their retirement.
As of today, municipal employees (MEA) and confidential employees are contributing 3% of
salary.
February, 2009 Elected officials began contributing to retirement; July 2011 will pick up
the full employee share of 8%
July, 2009 Executive & management employees began contributing to cost of
retirement system; July, 2011, will pick up the full employee share of 8%.
July, 2009 POA began contributing 2% to the cost of retirement
March, 2010
January, 2011
Retirement formula reduced for new employees hired into sworn police
safety positions - A decrease from 3% @ 50 to 3% @ 55
Council action to reduce retirement formula for new employees hired into
miscellaneous employee group - A decrease from 3% @ 60 to 2% @ 60
Other cost cutting and efficiency measures the City has implemented include:
A. Fire Department
• Paid portion of Fire Dispatch services with enhanced Franchise Fee resulting in
General Fund savings of $119,988. (2010)
B. Development Services
Merging of Planning, Building and Engineering allowed for streamlining the
development activities, creating a "one -stop" permitting counter, and substantial
cost savings by reducing the number of directors, eliminating duplicate and
Page 10 2/7/2011
DRAFT
inefficient activities, providing cross training to staff where possible, and
promoting cost recovery. (2009)
C. Public Library
• Volunteer Assistance: Time donated by volunteers to assist with library programs
and shelving
FY 2006-07: 2,357 hours
FY 2007-08: 3,408 hours
FY 2008-09: 3,238 hours
FY 2009-10: 2,583 hours
FY 2010-11: 1,296 hours (from July -December 2010)
D. Public Works Department
• Staff Reorganizations -
- Street and Wastewater Supervisor positions were combined saving
approximately $64,000 in salary and benefits per year (2007)
- Maintenance Worker position was transferred from the Street Division to the
Wastewater Division saving the General Fund approximately $63,500 in salary
and benefits per year (2011)
• Vendor Negotiations -
- All vendors that supply automotive parts agreed to lower costs by an average of
10% (2010)
- All service contractors and consultants agreed to hold their costs with no
increases (2010)
EDCO Disposal agreed to maintain their rates for National City users at the
same levels with no increases (2009)
• No increases in sewer rates to our residents since 2005
• Lowered water usage in City parks by 25% (2009)
E. Housing & Grants Division
• Outsourced Economic Development Programs to National City Chamber of
Commerce (2009)
• Outsourced the Enterprise Zone Program operations to the City of San Diego
(2010)
• Outsourced the newly established First -Time Homebuyer Assistance Program
to Community Housing Works (2010)
Page 11 2/7/2011
DRAFT
Revenue Enhancement Efforts:
The revenues from Proposition D temporarily fixed the fundamental problem of more money
going out than coming in. It also challenges National City to become proactive in building
stable and diverse revenue sources within the several years to achieve financial
sustainability.
The last major revenue generating developments, Plaza Bonita Mall and the Mile of Cars,
occurred over 20 years ago. Efficiency, vision and innovation are necessary to reverse the
current stagnation. National City continues to pursue new, and enhance existing revenue
sources to recover the costs of providing programs and services. Some of the projects
designed to meet these needs are:
• Marina Gateway Development - A $2.4 million dollar net investment in property tax
increment yielded a $61 million dollar project, which is generating approximately
$772,000 annually in redevelopment and municipal tax revenues beginning in 2010
and into the future. The project includes Pier 32 world class 241-slip marina, 170-
room Sycuan Best Western Marina Gateway Hotel and Conference Center and
Buster's Restaurant.
• Plaza Bonita Mall - $134 million expansion which included a new Borders, AMC
Theater, Target and additional stores and restaurants.
• Paradise Village Senior Housing Project — 498 units were built making this project the
largest residential project in National City's history
A. Fire Department
• Contract negotiations with Lower Sweetwater Fire District resulted in the establishment
of a new Equipment Fund of $532,439. (2010)
• American Medical Response (AMR) franchise fee enhancement - $120,000 (2010)
B. Housing & Grants
• Identified and reallocated $3,270,000 in CDBG and HOME program income (2009)
C. Public Works Department
•
Working with the City of San Diego and the U.S. Navy to have San Diego bill
the Navy directly and return sewer capacity of 0.782 MGD (million gallons per
day) back to National City at a value of $1 million. (Multi -year audit with funds
received in 2010)
• Sewer Audit and Analysis has resulted in approximately $2 million of refunds
from overcharges in sewer transportation and treatment (Multi -year audit)
Page 12 2/7/2011
DRAFT
D. Finance Department
• Internal Audit (1970-2007) of HUD Program income resulted in $3.3 million of
recouped program income applied to City programs and facilities. (2008)
• Refinanced Commercial Paper to Build America Bonds creating an immediate
increase in cash flows for street related activities ($4 million) (2011)
Grant Funding:
The City of National City continues to aggressively seek grant funding to continue to build on
our success. Grant funding has provided the City with millions of dollars to enhance public
safety, disaster preparedness, technology as well as supplement equipment, vehicles, quality
of life, recreation needs to improve the qualify of life for our residents, businesses and visitors
to our community.
Proposition D Independent Committee:
LEGAL REQUIREMENTS OF PROPOSITION D
Analysis of Section 4.60.180 of the
National City Municipal Code (part of Prop. D)
Proposition "D" provides that every five years, the Mayor, with the approval of the City
Council, shall appoint an independent committee comprised of three experts in financial
matters, who will report their recommendation to the Mayor and City Council as to whether
the tax shall remain in effect at the rate of one percent, or whether the City Council should
reduce the rate of tax or terminate the imposition of the tax pursuant to Section 4.60.170 of
this chapter.
"Every five years..."
Proposition D became effective October 1, 2006. Every fifth year is October 1, 2010 —
September 30, 2011
"...the mayor, with approval of the city council..."
This is the statutory procedure for making appointments in general law cities. The
independent committee is subject to the Brown Act.
"...shall appoint an independent committee..."
"independent committee" — no councilmembers, board of commission members, or
staff may be on the committee.
Page 13 2/7/2011
DRAFT
"...three experts in financial matters..."
The type of expertise will be determined by the Mayor and City Council.
"... who will report their recommendation to the mayor and city council..."
The committee's report will be presented at a public meeting. The recommendation to
the Mayor and City Council is not binding.
"...as to whether the transactions and use tax should remain in effect, or whether the
city council should reduce the rate of tax or terminate the imposition of the tax..."
The Mayor and City Council have three options:
1) Tax to continue at one percent; or
2) Reduce the rate of the tax; or
3) Terminate the tax.
Next Steps:
• City Council appoint the Proposition D Independent Committee within the next six
months
• Independent Committee determines staffing needs, financial data and information
needs
Page 14 2/7/2011